Sprint

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

Get Adobe Flash player

Of all the companies I'm featuring here, Sprint ( S) is the only one that is also on my list of the 11 Worst-Run Companies of 2011. The company's cash flow from operations has deteriorated for years. Sprint's Z-Score of -0.63 indicates that the company is at risk for bankruptcy.

I won't want to waste any more time or space by beating this dead horse other than to add that it is definitely one to avoid.

For another take on Spring, check out 10 Top Stocks Under $5 for 2012 Picked by Analysts.

Dynegy

Dynegy ( DYN) is in the business of producing and selling electric energy and services in the U.S. The electric utility business is very competitive and is also highly regulated. Dynegy has a poor earnings track record and its revenues have been in steady decline for years. The company has embarked on a long-term plan to sell assets in order to remain competitive.

However, one of the most important metrics that utility investors look for is dividends. Dynegy last paid a cash dividend in 2002. In order to prop up the stock price, a 1-for-5 reverse stock split was issued last year. Why buy Dynegy when you can purchase a more consist company such as Con Edison ( ED), which not only earns money but has raised its dividend every year since 1974?

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

Get Adobe Flash player

If you liked this article you might like

Oprah Winfrey and 10 Other Female Stars Who Have Made a Killing in the Business World

2 Retail Stocks That Still Look Strong

2 Retail Stocks That Still Look Strong

Insider Trading Alert - ADBE, NSH And MSO Traded By Insiders

To Win a Proxy Fight, Win the Heart of a Qualified Board Nominee

Sequential's Leak Throws Wrench in Martha Stewart Deal, Report Says