bsharvy

Ten Top Value Traps with Unreasonably High Dividends

This article is pretty uninformed. The explanation of the term "value trap" is completely wrong. It doesn't refer to being "trapped" by a falling price, it refers to a stock that looks like a value stock in style, but isn't because of deteriorating fundamentals. There is no actual REASON given for anything the author says. Why are these the "Top 10 Value Traps?" We're given nothing but cliches, like "if it looks too good to be true, it probably is." A more logical conclusion might be that a stock trading at over 20% yield is already expected to cut its dividend, so such a cut won't affect stock price. For example, PWE cut its dividend yesterday--the stock went up 2% today. Investment U needs to go back to school.