Stock investing can be viewed as a business of counting dollars and cents of that a company would make in the future, because the market value of a share of a stock is supposed to be equal to the risk-adjusted present value of anticipated future earnings.

If one knew with certainty that a company would never make positive earnings in the future, its stock price should be zero. In fact a number of companies never make a future earnings such as the .com companies of the 90s that ended bankrupt.

Now what about stocks that have current negative earnings, and which trade at a positive market price? The reason such stocks have a non zero positive price is because the markets thinks there would be positive future earnings.

One might understand that investors consider investing in stocks that have current positive earnings, but what about stocks that have current negative stock earnings, and have negative return on equity. The numbers are essentially saying that the equity is decreasing, and that the company is currently losing money. The stock price is then likely to be under pressure to fall.

If the stock market is rising, such stocks may rise, but when the stock market is not moving higher, or worse when it is declining, such stocks can be very risky.

To have an idea of how risky these stocks can be, we built a list of stocks that have negative earnings, and negative return on equity. With a declining market such stocks can be hammered, such as last Friday.

The market is risky enough even for strong stocks that are rising, and have strong fundamentals. We find it puzzling if average small stock investors would even consider investing in such stocks.

We consider stocks that have negative earnings, and negative return on equity as risky, and we would not touch them even with the longest of all poles.

Ticker Company
AIG American International Group, Inc.
DAL Delta Air Lines Inc.
YRCW YRC Worldwide Inc.
GAP The Great Atlantic & Pacific Tea Company, Inc.
ENER Energy Conversion Devices, Inc.
AIB Allied Irish Banks plc
LEAP Leap Wireless International Inc.
RDN Radian Group Inc.
MPG MPG Office Trust, Inc.
PMI PMI Group Inc.
WL Wilmington Trust Corporation
WNC Wabash National Corp.
MGM MGM Resorts International
PCBC Pacific Capital Bancorp
VRTX Vertex Pharmaceuticals Incorporated
LBTYA Liberty Global Inc.
FBR Fibria Celulose SA
SFI iStar Financial Inc.
MTG MGIC Investment Corp.
X United States Steel Corp.
DVR Cal Dive International Inc
PEIX Pacific Ethanol, Inc.
ZION Zions Bancorp.
SWY Safeway Inc.
GGP General Growth Properties Inc.
UCBI United Community Banks, Inc.
DNDN Dendreon Corp.
SNV Synovus Financial Corp.
PHM PulteGroup, Inc.
TEX Terex Corp.
LIZ Liz Claiborne Inc.
DYN Dynegy Inc.
ATPG ATP Oil & Gas Corp.
FBP First Bancorp
AONE A123 Systems, Inc.
FTK Flotek Industries Inc.
HAFC Hanmi Financial Corp.
AMR AMR Corporation
FIG Fortress Investment Group LLC
CLWR Clearwire Corporation
PVA Penn Virginia Corp.
SHO Sunstone Hotel Investors Inc.
GMXR GMX Resources Inc.
HEK Heckmann Corporation
BEE Strategic Hotels & Resorts, Inc.
AIV Apartment Investment & Management Co.
RRI RRI Energy, Inc.
DAN Dana Holding Corporation
WMB Williams Companies, Inc.
AU AngloGold Ashanti Ltd.
SQNM Sequenom Inc.
SBAC SBA Communications Corp.
BIOD Biodel Inc.
MNKD MannKind Corp.
NETL NetLogic Microsystems Inc.
BP BP plc
ASBC Associated Banc-Corp
BSX Boston Scientific Corporation
LYV Live Nation Entertainment, Inc.
MF MF Global Holdings Ltd.
TSO Tesoro Corporation
HOV Hovnanian Enterprises Inc.
CMC Commercial Metals Company
INCY Incyte Corporation
MI Marshall & Ilsley Corporation
VMED Virgin Media, Inc.
SSRI Silver Standard Resources Inc.
CEDC Central European Distribution Corp.
AMRN Amarin Corporation plc
CDE Coeur d`Alene Mines Corporation
ARNA Arena Pharmaceuticals, Inc.
MMR McMoRan Exploration Co.
PLD ProLogis
AMLN Amylin Pharmaceuticals, Inc.
HLX Helix Energy Solutions Group, Inc.
GRS Gammon Gold, Inc.
CCI Crown Castle International Corp.
CSE CapitalSource Inc.
S Sprint Nextel Corp.
RF Regions Financial Corp.
SLXP Salix Pharmaceuticals Ltd.
AZPN Aspen Technology Inc.
BANR Banner Corporation
SVNT Savient Pharmaceuticals, Inc.
IO ION Geophysical Corporation
ASTI Ascent Solar Technologies, Inc.
CADX Cadence Pharmaceuticals Inc.
STI SunTrust Banks, Inc.
DCTH Delcath Systems Inc.
LNG Cheniere Energy, Inc.
TOL Toll Brothers Inc.
IVN Ivanhoe Mines Ltd.
REVU Princeton Review Inc.
NG NovaGold Resources Inc.
EXEL Exelixis, Inc.
APL Atlas Pipeline Partners LP
EXH Exterran Holdings, Inc.
JOE The St. Joe Company
MELA MELA Sciences, Inc.
FMCN Focus Media Holding Ltd.
MITI Micromet, Inc.
TWI Titan International Inc.
WTNY Whitney Holding Corp.
IKAN Ikanos Communications, Inc.
SIMG Silicon Image, Inc.
HGSI Human Genome Sciences Inc.
HW Headwaters Inc.
ALTH Allos Therapeutics, Inc.
CHTP Chelsea Therapeutics International Ltd.
DDR Developers Diversified Realty Corp.
BAC Bank of America Corporation
COIN Converted Organics Inc.
ESLR Evergreen Solar Inc.
GERN Geron Corporation
FCEL FuelCell Energy Inc.
ASTM Aastrom Biosciences, Inc.
ACAD ACADIA Pharmaceuticals, Inc.
APP American Apparel, Inc.
DPTR Delta Petroleum Corp.
CHRS Charming Shoppes Inc.
CYCC Cyclacel Pharmaceuticals, Inc.
CRBC Citizens Republic Bancorp, Inc
HERO Hercules Offshore, Inc.
HT Hersha Hospitality Trust
RAD Rite Aid Corp.
OXGN Oxigene Inc.
CIG Cia Energetica de Minas Gerais
MEE Massey Energy Co.
RYL Ryland Group Inc.
CLNE Clean Energy Fuels Corp.
LYG Lloyds Banking Group plc
REG Regency Centers Corporation
NOVL Novell Inc.
EFOI Energy Focus, Inc.
TSEM Tower Semiconductor Ltd.
URI United Rentals, Inc.
VMC Vulcan Materials Company
ELN Elan Corp. plc
MAS Masco Corporation
BKD Brookdale Senior Living Inc.
CX CEMEX, S.A.B. de C.V.
ARM ArvinMeritor Inc.
LPX Louisiana-Pacific Corp.
SOMX Somaxon Pharmaceuticals, Inc.
PCX Patriot Coal Corporation
HOT Starwood Hotels & Resorts Worldwide Inc.
ERTS Electronic Arts Inc.
GSIC GSI Commerce Inc.
GLBL Global Industries Ltd.
ETFC E*TRADE Financial Corporation
HNT Health Net Inc.
LVLT Level 3 Communications Inc.
CODI Compass Diversified Holdings
SGMS Scientific Games Corporation
VGZ Vista Gold Corp.
INFN Infinera Corp.
JNY Jones Apparel Group, Inc.
MHR Magnum Hunter Resources Corp.
TIVO TiVo Inc.
HBAN Huntington Bancshares Inc.
ALY Allis-Chalmers Energy, Inc.
JAG Jaguar Mining Inc.
ARUN Aruba Networks, Inc.
UEC Uranium Energy Corp.
PAL North American Palladium Ltd.
ALU Alcatel-Lucent
JSDA Jones Soda Co.
SNSS Sunesis Pharmaceuticals Inc.
SATC Satcon Technology Corporation
RJET Republic Airways Holdings Inc.
ZRAN Zoran Corporation
BSDM BSD Medical Corp.
DNN Denison Mines Corp.
TTWO Take-Two Interactive Software Inc.
CENX Century Aluminum Co.
CBL CBL & Associates Properties Inc.
NGAS NGAS Resources Inc.
HST Host Hotels & Resorts Inc.
GRT Glimcher Realty Trust
AA Alcoa, Inc.
AVNR Avanir Pharmaceuticals
MWA Mueller Water Products, Inc.
MWW Monster Worldwide, Inc.
KEG Key Energy Services Inc.
LLNW Limelight Networks, Inc.
EXAS Exact Sciences Corporation
BDN Brandywine Realty Trust
CPST Capstone Turbine Corp.
DEI Douglas Emmett Inc
NKTR Nektar Therapeutics
TAT TransAtlantic Petroleum Ltd.
NXG Northgate Minerals Corp.
UXG US Gold Corporation
MENT Mentor Graphics Corp.
MTW Manitowoc Co. Inc.
MPEL Melco Crown Entertainment Ltd.
CTIC Cell Therapeutics, Inc.
BQI Oilsands Quest, Inc.
URZ Uranerz Energy Corp.
SFSF SuccessFactors, Inc.
GMO General Moly, Inc.
RTK Rentech, Inc.
VG Vonage Holdings Corporation
URRE Uranium Resources, Inc.
STEM StemCells Inc.
VLNC Valence Technology Inc.
AFFX Affymetrix Inc.
AGN Allergan Inc.
ANAD Anadigics, Inc.
DRH Diamondrock Hospitality Co.
SCS Steelcase Inc.
AMB AMB Property Corp.
FOE Ferro Corp.
IRM Iron Mountain Inc.
TXT Textron Inc.
JDSU JDS Uniphase Corporation
BCON Beacon Power Corporation
DCT DCT Industrial Trust Inc.
GBG Great Basin Gold Ltd.
HLYS Heelys, Inc.
SKS Saks Incorporated
GENZ Genzyme Corp.
CAVM Cavium Networks, Inc.
AEZS AEterna Zentaris Inc. (USA)
NUAN Nuance Communications, Inc.
PWAV Powerwave Technologies Inc.
ZQK Quiksilver Inc.
SONS Sonus Networks, Inc.
TUNE Microtune Inc.
RBY Rubicon Minerals Corporation
SNIC Sonic Solutions
CXZ Crosshair Exploration & Mining Corp.
EQR Equity Residential
HRZ Horizon Lines, Inc.
HMY Harmony Gold Mining Co. Ltd.
CLGX CoreLogic, Inc.


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