Red Flag Radar - What I'm Working On, Watching...
Yes, even in this market the stocks of some companies remain vulnerable.
Not yet a paid subscriber to Herb on the Street and my Red Flag Alerts? Join the growing club, now in the hundreds, who want to avoid the biggest mistake investors make… or just want to understand the concept of risk. You can find out more and how to subscribe right here. If you would prefer to pay with soft dollars, or participate in an upper tier, please contact me directly.
Today’s Agenda…
iRobot appears to be going iBust.
Stocks mentioned: Pentair, GenPact, AGCO, Vail
How the Red Flag Alerts master list is handling this market.
Even if this market hadn’t cracked, iRobot IRBT 0.00%↑ would have. I almost forgot that I first red-flagged the company in January 2024, with the too punny…
Followed by one of my favorite headlines all-time headlines…
On Wednesday, the stock tumbled 36% on disappointing results and a warning that it is may not be able to stay in business much longer.
In all, as of yesterday it was down 83% since I first added it to the Red Flag roster. But the risk may be even greater than it was at higher levels.
After all, the company said it may not be able to continue “as a going concern” and – often forgotten – $3 to $0 is a bigger drop percentage-wise than $18 to $3.
All of which is why, if you get nothing else, always… respect the risk.
What I’m Watching/Working On
There’s no question that the recent rout has taken the air – and risk – out of plenty of stocks that might have otherwise caught my attention. Still, that doesn’t mean the risk has been squeezed out of all of them. (Like iRobot.)
Among those I’m watching or working on…