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 Cash-Burning Stocks to Extinguish From Your Portfolio


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

Get Adobe Flash player

Up next is agribusiness Bunge (BG - Get Report), a $9.6 billion firm that bridges the gap in the commodity food chain. Bunge acts as a middleman between farmers and consumers, processing raw agricultural commodities on one side, and supplying farmers with products like fertilizer on the other.

When it comes to nearly any industry, it's worst to be the middleman. Not only do middlemen have the potential to get price squeezed from both sides, they also have partners looking over at their profitability wondering whether it makes sense to let a third party collect a payday when they could do it themselves.

>>5 Rising Dividend Payers for a Bullish but Skittish Market

But Bunge's paper-thin margins have meant that the firm isn't fighting off too much competition right now. Instead, Bunge sees plenty of internal challenges from the ebb and flow of commodity prices. After unloading some of its more attractive businesses (such as phosphate mines where the firm isn't the middleman), it's susceptible to more ebb than flow.

That tenuous grasp on profitability means that Bunge has to dig into its cash reserves to support its operations and its 1.7% dividend yield when profitability is lacking.

To be clear, Bunge isn't burning cash in the traditional sense. By that I mean that BG does make money from an accrual accounting standpoint, and its cash burn rate is relatively small. But Bunge's paper-thin margins at a time when soft commodities appear to be making a long-term top doesn't bode well.

I wouldn't own this stock right now.
5 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
BG $61.77 -1.20%
NOK $5.82 -1.80%
P $8.68 -3.70%
RCL $77.32 -1.80%
TIVO $9.68 -0.36%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs