Red Flag Alert – Caffeine Jitters

Plus Updates and Master List of Stocks to Avoid

• New – Dutch Bros Among the ‘Financially Fragile’

• Update – SolarEdge, Enphase Get Burned

• Update – More Fun and Games with Bowlero

• Bonus – Latest Master List of Stocks to Avoid

From the “eyes bigger than their stomach” department...

It’s one thing to have a good concept, it’s another to be able to afford it...

Therein lies the problem with Dutch Bros. (BROS), the rapidly growing drive-through coffee chain.

The company has been showing up for months on the “unattractive debt list” published by my friends at Kailash Concepts (KCR). That’s a list that shows companies with rising debt and without enough earnings to cover it.

By virtue of being on that list, it also landed on KCR’s list of 153 “financially fragile” companies with market caps above $500 million that rank in the bottom third of those whose operating earnings can’t cover their interest rate expense.

That story is in the chart below...