Category Archives: stocks to avoid

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Novo Nordisk: Weight-loss therapy for shareholders continues

The last almost five years have been a dizzying rollercoaster ride for shareholders of diabetes and obesity giant Novo Nordisk. With the beginning of the weight-loss wave in 2021, instigated by the approval of injection therapy Wegovy specifically for weight-loss, a ferocious three-year rally started. Novo shares quadrupled to above 1,000 DKK by summer 2024, making it even Europe’s most valuable company. The stock has lost 70% since then, with the cherry on top being the just released results and guidance for 2026 which sent Novo 17% lower yesterday. What now?

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Conagra Brands: A “defensive” consumer stock with an aggressive balance sheet

One or the other time, I have published a weekly about consumer stocks. My general view has been for years that these names should be avoided, being it food, beverage, or alcohol stocks, partly also household and cleaning producers (except one name I published a research report about, it’s up +22% over the last five months). Investors who bought blindly solely based on past performance have suffered big losses. While hopes for a turnaround to finally arrive continue to be high, there’s little reason to be overly optimistic. These stocks have lost their status as “defensive” core positions not for one, but for several reasons. The case study of Conagra Brands.

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Nine lost years — Bottom in sight for Nestlé?

Since its peak at around 130 CHF per share and a market cap of almost 400 billion CHF, consumer staples heavyweight Nestlé has highly disappointed its fan base of predominantly defensively oriented investors. Who’d have thought that THE core investment in the consumer staples sector (besides Coca-Cola) could see its stock price get almost cut in half? Although I have not written a weekly about Nestlé so far, my readers know that Nestlé has not been interesting all the time. Is it now worth a look?

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My next Target for a Dividend Cut is a King

I stick to my view which many investors don’t share: this decade will be remembered as the one where dividends have been cut, not sparing big names. With this, I do not mean the obvious candidates like cyclical commodity producers or European car makers, but the ones where it really hurts (for dividend and income investors). In the past, I have written several weeklies, digging out names with proud series that have come to an end or with a high likelihood will end in the not-too-distant future. My next target is another dividend king.

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The Oracle in the AI coal mine?

Over the last months, I have written two Weeklies, criticizing the from my view not sustainable AI investment frenzy, featuring Meta’s stock as my main target. Maybe this was because Meta is a mainstream darling that on top has delivered a stellar return over the last three years. However, little did I know that there is an even more interesting case in the second row. With some interesting developments in the recent past, is this the Oracle in the AI coal mine for what to expect?

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Don’t skip this: Why I‘ve been (+ remain) negative on consumer stocks

I must admit I am surprised how angry people can become when their widows and orphans stocks, mainly consumer staples with reliable dividends, are attacked. It is no secret that I‘ve been writing and commenting negatively about them for some time. And I was right in most cases, as these “safe bets“, which according to the fan base belong in every defensive portfolio, have performed very poorly. I stick to my view that the dividends won’t be safe over time. Once and for all, I am now unveiling why my pessimism likely is warranted.

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Meta going all in – More cracks in the AI Capex bubble

In August 2025, I published my first Weekly fully dedicated to this topic. It became my second most read Weekly so far. I gave it the name “Artificial Intelligence meets natural stupidity – and a potential winner no one is counting on”. I introduced my readers to the growing Capex mania of the Big Tech companies, focussing on Meta, and concluding that Apple might turn out to be the winner thanks to avoiding doing stupid things. While the mania continues at even more extreme levels, the risks for a big burst have only increased.

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Side Effect of AI: The Storage Bubble + New Research Report

It is no secret that AI as a topic, its various applications, and in consequence stocks related to AI are receiving much attention. More and more challenge the sustainability of this rapid rise over the last few years, especially as the question of profitability remains unanswered. While everyone is aware of stocks like Nvidia, Oracle or critical suppliers like Micron, as well as multiple AI chatbots, the AI mania has pulled up an otherwise boring sub-segment: storage stocks. Is this justified? All my paid-members receive my latest stock idea: a growing franchise that’s set to dominate the eye care market.

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Nomad Foods: Tasty Deal?

In the spotlight today is the Western European market leader in the frozen food industry. With a portfolio of multiple brands, the company’s roots span over a century. The current setup was formed in 2015, when the brands Iglo and Findus were acquired. Since the IPO, a decade has passed, yet the stock is trading (again) where it had started. Are a near 5% dividend yield and a PE ratio of 7 enough to spark appetite, or is something fishy?

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Diageo – Does Johnnie keep on stumblin’?

Though initially not planned as a trilogy in that sense, today I am taking a closer look at Diageo, the world’s biggest spirits company. Like its competitors Pernod Ricard and Brown-Foreman, Diageo stock has nosedived, and caused strong headaches for its investors. After the stock got cut in half, while the broader market ran from high to high, the question arises, whether this could be a good contrarian pick right now. Especially with the dividend now being on a historically high level.

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