If everyone goes into sell mode, do you really think they’ll keep Research In Motion Ltd in the portfolio? I do not. And the same goes for The Western Union Company (NYSE:WU) and SAIC, Inc. (NYSE:SAI), both of which could be considered semi-decent companies.
A quick look at the sales growth in the most recent quarter versus the year ago quarter shows that all three underperform their respective industries. Research In Motion Ltd (NASDAQ:BBRY) is showing a -35.9 growth, Western Union pulls up a -0.5, and SAIC, Inc. (NYSE:SAI) grew at 2.9%.
The only one that scares me on the financials side is The Western Union Company (NYSE:WU), which has a debt to equity ratio of 4.28. That’s large, but it’s still below the industry’s 6.78. Research In Motion Ltd is actually sitting pretty in this realm with a 0 in the category while SAIC, Inc. (NYSE:SAI) is pulling a 0.53.
I don’t like these companies over the long term, and I especially don’t like them in the event of any sort of market sell-off.
My entire thought on these three companies is that life’s just too short to hope. If you want growth, go elsewhere. If you want value, look elsewhere. If you want anything but future losses just look elsewhere. There are hundreds of securities out there that are better than this handful.
Ash Anderson has no position in any stocks mentioned. The Motley Fool recommends The Western Union Company (NYSE:WU).