When stocks plunge to fresh new lows while stock markets trade at all-time highs, look out. Last Friday, accounting red flag warnings sent SunPower (SPWR) down by 22.39% to $2.08.
SunPower disclosed that the Securities and Exchange Commission issued a subpoena in February. It raised concerns about certain accounting matters that included revenue recognition practices in 2023.
The company’s auditor refused to sign off on the financial statements prepared by management.
Investors should consider First Solar (FSRL) or NextEra Energy (NEE) instead.
Walgreens (WBA), a drugstore, continued its steady decline after failing to hold the $16.00 level. WBA stock lost another 6.5% last week. More than half of the Wall Street Analysts rate the stock a sell. More recently, J.P. Morgan cut its price target from $30 to $20, citing its poor near-term results. Still, analysts view the new management team as credible.
In the oil drilling sector, Transocean (RIG) is retesting the $5.00 support level. It last traded as low as $4.67 in February. On June 28, 2024, the firm filed plans to sell 55,513,043 shares. It needs the funds to finance the Transocean Norge semisubmersible joint venture.
Transocean needs to win a cold stack contract soon. Without revenue bookings ahead, RIG stock is a high-risk holding.