This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks With New CEOs to Stay Away From

MILLBURN, N.J. ( Stockpickr) -- Companies, unlike members of the animal kingdom, can theoretically live forever. But a company's CEO, the person in charge of the day-to-day operations of the company, is human, and his or her time at the top is finite.

Issues always arise for both the company's management and shareholders as to what to do when a CEO leaves, whether the departure is planned or not. While the board of directors will ultimately make the decision as to whom to appoint as the CEO, investors, in my opinion, invest as much in the company's management as they do in the company's stock.

>>5 Stocks Under $10 Set to Soar

So when a CEO change is made, we must look carefully at a stock and decide whether or not the CEO change is a material event that necessitates action on our part. Sometimes a new CEO spells trouble or the continuation of problems for a company. Other times a new CEO might bring a refreshing change or opportunity for a turnaround to a company, as it did for Ford ( F) when Alan Mullaly took over the reins at the automobile manufacturer. Quite often, new CEOs are merely another step in a line of successful managers who help to steer the company to even greater heights.

We've already taken a look at five CEOs who are making their companies' stocks attractive to investors, in " 5 Stocks With New CEOs to Stick With."

Now let's take a look at five stocks with new CEOs that investors should avoid.
1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BBY $32.66 0.03%
HPQ $12.57 0.00%
SNE $24.26 -0.02%
YHOO $36.59 0.00%
AAPL $95.03 0.21%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs