This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Cash-Burning Stocks to Extinguish From Your Portfolio

Pandora Media

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

I suppose you could say that Pandora Media (P - Get Report) is one of the good recent tech IPOs. After all, the firm hasn't gotten shellacked like the rest of its peers, and until lately, the stock has looked a whole lot stronger from a technical perspective than most internet names.

I'm inclined to agree. That's why Pandora didn't make it on my list of short-worthy social media names.

>>3 Internet Stocks Ready to Move Higher

But I still think that cash burn is a big enough concern to warrant selling Pandora.

Pandora's burn rate weighed in at an annualized $64 million, nearly enough to deplete the company's post-IPO coffers in a single year. At the same time, the firm's reports earlier this month that listening hours are increasing means that royalty fees are going to be on the increase as well. With Pandora's model not mature enough to establish profitability in-line with listening hours, that's going to eat more cash.

Even though the firm's debt-averse approach to maintaining a balance sheet is commendable, it also makes a dilutive equity offering a strong possibility in 2012.

I also featured Pandora in " 4 Hot Stocks to Trade (or Not)."

3 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BG $81.31 -0.90%
NOK $7.96 -0.75%
P $15.18 -1.62%
RCL $76.80 -1.02%
TIVO $11.03 -0.90%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs