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Practical Advice from

7 Stocks to Sell Before the Crash – And Tesla is #1!

Courtesy Tesla Inc.

It’s been years since we’ve had a proper stock market crash. And while that doesn’t necessarily mean that you should be looking for stocks to sell because a crash is imminent, now’s not a bad time to think about which companies present the biggest risks.

In a bear market, the weakest companies with the flimsiest business models are the ones to get hit the hardest. This is particularly true of corporations that need regular cash infusions from secondary stock offerings.

A falling stock price raises the cost of capital and becomes something of a vicious cycle. Stock declines force greater shareholder dilution as the company issues more shares to bring in a fixed amount of capital. Then the stock heads even lower and, well, you get the point.

Today, we’re going to take a look at seven stocks to sell that I see as particularly at risk to a bear-market mauling. You don’t necessarily have to scramble to dump them immediately, of course; some might even be decent short-term trades.

Just don’t get attached. Once the market eventually rolls over, these seven companies will likely be some of the hardest hit. And you don’t want to be left holding that bag.

Prices and data are from the original InvestorPlace story published on September 25, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: 3 Great Growth Stocks That Aren't FAANGs

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

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