Change is the only constant thing, more so in the stock market. Spin-offs, bankruptcies, and mergers happen all the time. Technology has only accelerated this change. A decade back, BlackBerry (NASDAQ:BBRY) was worth more than Apple (NASDAQ:AAPL). The iPhone made a huge difference. Amazon (NASDAQ:AMZN) has changed the way people do their shopping, and it’s unlikely to change.
The markets will look completely different in a decade from now. Here are 5 stocks that are unlikely to be traded in 10 years from now.
Barnes & Noble (NYSE:BKS)
They have tried everything including offering Starbucks coffee. Briefly, they had success with the NOOK e-reader, but that unit is now looking at a $20 million loss. Traffic continues to decline. With Amazon opening bookstores, there is new competition for Barnes & Noble. Comparable-store sales are expected to go down 7% in 2017. They are still paying 6.5% dividend, but there is a high chance Barnes & Noble may become unprofitable. Another victim of Amazon!
Valeant Pharmaceuticals (NYSE:VRX)
Valeant is trying to deal with a $30 billion debt load by cutting costs and selling assets. The business can go bankrupt if this strategy doesn’t work. The market knows this, as the stock continues to slide. They even had to cut down on R&D spending. It is likely that the company would be sold off, even if they manage to scrape through somehow.
Sprint too has a huge debt problem, like Valeant. However, the stock has tripled from the lows of early 2016. On the positive side, the bankruptcy risk has lowered considerably in the last 18 months. Their earnings have improved too, thanks to steady subscriber growth. Because of this, there is speculation that Sprint might be acquired by AT&T, DISH Network, Verizon, or some other business.
SeaWorld never did quite recover from the bad publicity generated by the 2013 documentary Blackfish. In late 2016, the stock reached an all-time low. Attendance went down 2.1% and profit declined 8% last year. To make it worse for SeaWorld, their fixed cost is very high. Interest expense is a major issue too. A sale may be the only option. Last March, Zhonghong Zhuoye from China acquired a 21% stake in the company. Larger theme park operators such as Six Flags or Cedar Fair could be interested.
National Beverage (NASDAQ:FIZZ)
This has been a hot stock in 2017. From the lows of January, it has reached an all-time high of $88. Their LaCroix water brand is driving huge sales and margin growths. National Beverage is currently taking market share from Coca-Cola and Pepsi, particularly their struggling diet brands. With Dr. Pepper Snapple Group paying $1.7 billion for Bai Brands, National Beverage can be acquired at a price of $5-6 billion.