1 Reason Why I Can't Bring Myself to Touch Newsmax Stock With a 10‑Foot Pole

Unless you are a Washington insider, mixing politics and investing seems like a recipe for disaster. Primarily, this is because it appears that politics and market psychology often skew valuation in many of these stocks. Newsmax (NYSE: NMAX) is a great example of this phenomenon in action.Newsmax became one of the meme stocks after its initial public offering (IPO) and soared to prices that failed to correspond with the company's underlying value. Even as this meme wave has come and gone, and shares now trade below their initial price, valuation remains skewed.Unless the company starts using this rich valuation to its advantage, giving it a hard pass seems to be the best course of action.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool