3 Industries to Avoid at All Costs

3 Industries to Avoid at All Costs

So avoid the industries that have seen their stocks perk up on the bailout news, as they may not bounce back like you think.. , the rules state that as long as a company is "on" government assistance -- likely, until the loans are paid back -- any company is forbidden to buy back stock, and then for another year thereafter.. There is also some latitude as to how the direct payments will be administered.. Another avoid-at-all costs is the oil and gas industry, especially those companies engaged in upstream drilling in U.S. shale.. The Federal Reserve Bank of Dallas estimates that the breakeven price for U.S. shale producers is somewhere in the $48- to $54-per-barrel range, or over twice the price at which oil is now trading.. U.S. and Canadian oil and gas companies already saw a 50% rise in bankruptcies last year, even before all of this happened.. While the government could come to the rescue of certain critically important and otherwise healthy companies, it's unlikely to bail out the entire sector, especially uneconomic drillers with high debt loads.. The current downturn may be the final straw that finishes off certain brick-and-mortar retailers.. Like the preceding