Cover Story: Where To Invest '96: The Investment Spectrum: Investments To Avoid
TABLE: These Stocks May Endanger Your Financial Health
PRICE* 52-WEEK P-E
Feverish buying has driven shares of this 23 /4 28 1/4 12
theater operator up 126% for the year to date,
but earnings are unlikely to hold up.
The nation's premier online service is facing 40 1/8 46 1/4 NEG.
ferocious competition from many sources.
This high-flying radio broadcaster, 32 1/8 37 5/8 44
the home of "shock jock" Howard Stern,
is $550 million in debt.
It's the Jonas Salk of antiviral software. But 47 1/4 52 7/8 91
have its innovations been overcompensated
by the stock market? Critics say yes.
A pioneer in Internet-only online services, 52 1/2 91 1/2 NEG.
NETCOM is a soaring recent IPO that, some
analysts hold, is about to bump into the ceiling.
The premier IPO of recent years makes 136 1/2 174 NEG.
Web-browser software. But its valuation
is so steep that it goes through spasms when the Net market sneezes.
NORTH AMERICAN VACCINE
This company faces serious competition 13 1/2 14 NEG.
in a tough, low-margin business.
A favorite of short-sellers, this biotech 20 22 1/2 NEG.
company is a leader in genetic engineering.
But shorts deride its product.
This developer of color-printer technology 89 97 3/4 742
is the bane of short-sellers, who have
been squeezed by ever-higher share prices.
A loaf of bread, a jug of coffee, and thou? 22 3/8 23 1/2 60
Yuppies love its brews, and so does the
stock market. Maybe too much.
*As of Dec. 12, 1995
DATA: BUSINESS WEEK