London UK, October 23, 2020, ZEXPRWIRE, For the following week, we have shifted our focus on GameStop, AT&T, and Carnival as the target investments we aim to avoid in the next shift. We have yet again reasoned why these three stocks are the ones to be avoided.
Taking the game to the next level should always be the goal in play mode. However, why lead on a considerably small-box retailer of video games. It already was lagging by 52-weeks on its high this week. We were more adamant when it came to making share trades higher than usual.
Just because a hedge fund was able to raise 5.5% stake the previous week does not mean that it will follow up with another 94.5% higher shares. The partnership with Microsoft seemed to be a blessing in disguise. However, the revenue was harder to balance. It stooped really low just like it has every year since 2018. The arrangement was not exactly a balanced one. With Microsoft having GameStop buy its Surface tablets and subscribing to its larger than life productive tools. CVMarkets couldn’t even manage to cover last week’s diss with this contingency plan.
One of the most reliable companies we were counting on this week was AT&T. Telcos in general are going through a struggling period, and AT&T finds itself in the midst of the mess. Its yield is expanding up to 7.6% on the other hand it has a falling trade at its 52-week low point.
AT&T was given two options in hindsight impress the market this week. CEO John Stankey is scheduled to make a presentation on Monday. We then will be able to have AT&T’s third-quarter earnings report at the end of Thursday when market closes. The acquisitions from DIRECTV and Time Warner did not manage to pay up well with respect to demand. It seems that the wireless company has a tough choice to make when it comes to keeping the business up.
We own stocks in AT&T personally, so it is difficult to convince ourselves to stay away this week in particular. The trends are also not in its favour. It is losing subscribers from both cable and satellite television programs. It seems like its legacy in the wireless business will end up becoming a myth sooner or later. Even though a lot of money is being invested in 5G, we still would like to stay clear of this particular stock until Thursday’s report comes in.
The ship is yet to sale for the cruise line industry. It has been a painful time for shareholder’s with considerable stocks in the world’s largest operator. The stock continues to trade as low as 72% lower in 2020, and we still have to go through another two months of loss in order to make it through.
Carnival and its peers still believe they can pick up and set sail again in December, but there are certain regulations set by the Centers for Disease and Prevention Control. If they do not extend the ban on U.S.-based sailings that is currently set to expire at the end of the month, we could see a possible recovery period. However, a new problem arose before we hit recovery. On Friday, a federal judge ruled that the cruise line operators need to have proper certifications of their ships to ensure tier accordance with U.S. customs with probation obligations of minimum 60 days before returning to U.S. waters. If this bill is passed, then the timing isn’t in Carnival’s favour.
This problem is subjective to Carnival. It has had sever implications in environmental crimes from three years ago. This, however, will allow small rivals to swim through such treacherous waters easily while it is stuck to deal with the sharks. It is unlikely that Carnival manages to bounce back before the next term begins.
So, if you are looking to invest in safe stocks, you might want to steer clear of GameStop, AT&T, or Carnival this week.