From Our Partners

6 Stocks That May Not Survive the Coronavirus

It seems like the world has gone crazy before our eyes. Just six weeks ago, investors were trumpeting the greatest economy of our lifetime. The only thing standing in the way was talk of a virus that was starting to spread.

Well, it’s here (probably was for a long time) and the stock market has taken notice.

Businesses are suspending operations and furloughing employees. The words social distancing and flattening the curve are the new “just do it” and “make it happen” in the absence of live sports.

1,000 points or more fluctuations in the Dow Jones Industrial Average are now almost expected.

Is it a bull market? Is it a bear market?

Who knows? And at this point, it doesn’t matter. What matters right now is slowing the spread of the coronavirus.

And that will happen.

But when it does, there will be a new normal. And unfortunately for some companies, they won’t be around to see it.

We’ve put together this special presentation that highlights six companies that may not be around when the world recovers from the coronavirus.

These companies were in difficult financial positions going into the crisis. And their precarious position has only gotten worse. Investors are bailing on their stock and the sell-off has become contagious. These companies have become falling knives.

They all share the problems of falling profits and increasing debt. And what’s worse these companies have credit ratings of CCC+ or worse.

Is it possible that one or more of these companies may survive? Of course. But there’s a difference between being a going concern and being a viable business. And right now, the prospects for these companies to be viable seem slim.