Citigroup (C) and Bank Of America (BAC) Dropped from Most Dangerous List

For the first time in many months, both Citigroup (C) and Bank Of America (BAC) are not on our Most Dangerous Stocks list as of the release of the August report.

Per the figures below, investors that followed our advice and sold, shorted or avoided these stocks did very well. Citigroup was down 35% while the S&P500 was about about 3% while it was on our Most Dangerous list. BAC was down 35% also while the S&P500 was down about 1% while it was on our Most Dangerous list.

Both stocks still get our Very Dangerous Rating, but they are no longer considered among the Most Dangerous Stocks in the market.

 

3 Comments

  • krs

    August 15, 2012

    Does your analysis suggest that this might be a change in trend for either or both companies? I.e., when stocks move from “most dangerous” to “very dangerous” do they continue to improve?

    Thanks….

  • dennis porter

    August 22, 2012

    I find this a very compelling question: Does your analysis suggest that this might be a change in trend for either or both companies? I.e., when stocks move from “most dangerous” to “very dangerous” do they continue to improve? Thanks for your assistance.

  • David Trainer

    August 23, 2012

    Mr. Porter:
    Moving off the “Most Dangerous Stocks” list only means that the stocks are not the very worst. These stocks retain their Very Dangerous (or 1-star) rating so I would not recommend investing in them.

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