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The 5 Scariest Stocks to Have in Your Portfolio

Michael Shulman, October 31, 2009 Free Trading Guides

How to Make Money on the Short Side of the Stock Market

Scary Stock #1: Palm (PALM)

Palm (PALM) is the unfortunate company that has to go head-to-head against Apple's (AAPL) iPhone and Research In Motion's (RIMM) BlackBerry, not to mention both companies' enormously deep pockets. PALM will not win against such stiff competition.

Palm continues to lose money and burn cash faster than the Bush and Obama administrations. On Aug. 31, it had $277 million in cash and receivables, and $522 million in payables and short-term debt, while long-term debt is $389 million. And this is a company that may generate $400 million in revenue next year, and perhaps $500 million the year after, but no profits!

Barring an acquisition by a company dumber than Palm (where are the Chinese companies when you need them?), the stock is worthless.

Next: Scary Stock #2

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