To put it bluntly, there are certain stocks that belong on your "do not buy list." There are many reasons for this, such as a declining business and an unhealthy balance sheet. While it's tempting to view them as potential value stocks , their price could always fall further as results worsen.
AMC Entertainment (NYSE: AMC) belongs in this category. The stock has had a wild ride this year, starting 2021 at around $2 before shooting up to about $20 by the end of January. Helped by the Reddit group WallStreetBets, the shares got caught up in the short squeeze that also propelled other stocks such as GameStop .
These kinds of moves are unpredictable, and the stock is still more than double where it started in 2021. But investing in hopes of a similar move will likely only end in pain.
For further details see:
1 Stock to Avoid No Matter What