Silhouettes of business people in front of stock market readings

Stock Warning Signs

  • Stock prices move sharply in either direction
  • Acquisition of a large company
  • High valuation
  • Significant change in strategy
  • Senior management changes
  • Decelerating sales, earnings or margins
  • Increasing leverage
  • Competitive positioning experiences significant changes
  • Substantial earnings restatement
  • Accounting or regulatory issues
  • Market saturation or declining market share
  • Patent expirations
  • Product obsolescence
  • Reduced spending on research & development
  • Poor capital allocation decisions by management