Stocks Worth Less Than $1

By Douglas A. McIntyre Published Aug 24, 10:30AM EDT

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CNN has done its readers a major favor. It has posted the names of what analysts believe are stocks worth $1 a share or less, and sometimes $0. It is worth looking at the list, particularly for investors who might be drawn to own them.
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Loop Capital put a price target of $1 on Bed Bath & Beyond Inc. (NASDAQ: BBBY). The company recently announced it has raised capital to keep it afloat. It does not matter. The retailer is doomed. Revenue dropped 25% in the most recent quarter to below $1.5 billion. The company lost a breathtaking $358 million. It is clear that shoppers already have turned elsewhere for what Bed Bath & Beyond sells.
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MKM Partners, according to CNN, put a $1 price target on AMC Entertainment Holdings Inc. (NYSE: AMC), the country’s largest movie theater chain. Its rival Cineworld is about to go under. AMC’s CEO Adam Aron commented that his company’s third quarter would be weak. He hopes to post a recovery later in the year. As the world moves to streaming, that is unlikely. AMC lost $121 million in the most recent quarter.

New Constructs has a $0 target on GameStop, Doordash and Rivian Automotive Inc. (NASDAQ: RIVN | RIVN Price Prediction). Rivian’s problems are particularly notable. Rivian just eliminated the least expensive vehicle it sells, a blow to many truck buyers. Its production levels are well below expectations. And the Ford F-150 Lightning will bury it. Rivian only produced 4,401 vehicles in its most recent quarter. It lost $1.7 billion.
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Finally, Morgan Stanley put a $0 price target on Carnival Corp. & PLC (NYSE: CCL), the cruise line. Battered by a decline in the number of passengers due to COVID-19, it has barely recovered. The company continues to work on its balance sheet, but it lost $1.8 billion in the second quarter.
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Shareholders in some companies have taken outsized risks recently, which have triggered one-day run-ups of double-digit percentages. As some of these fall, the bottom may be zero.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.