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Five Stocks to Avoid for 2009 | PowerOptions Web Log
In the wake of the subprime lending crisis, many stock investing positions are selling far below their fair value. The year 2009 will exciting for investors who know how to sort the wheat from the chaff. Opportunities will abound, but not every stock is bargain. Some companies are still overvalued, even at their current price. Here are a few companies to avoid when revamping your portfolio. 1. Sequenom (SQNM) This biotechnology company makes genetic testing equipment for research and clinical applications. Their most impressive products involve prenatal diagnostic testing. The problem is that much of the technology produced by Sequenom has cheaper analogs produced by other companies. In the current economy, patients are unlikely to pay for tests not covered by insurance, and research grant money is tight. There will not be enough demand for Sequenom’s products to boost their bottom line anytime soon. With a price/book ratio of 19...