Trying to catch a falling knife can be tempting, especially if it’s a company you know well. Many of the biggest winners over the last 20 years have suffered drawdowns of 40%, 50%, or even 60% over extended periods, only to roar back to new all-time highs a few months or years later.
But those are the stories we remember; it’s easy to forget the formerly strong companies that suffered major drawdowns and never recovered. Yes, we’re looking at you, AMC Entertainment Holdings Inc. (NYSE: AMC). Today, we’ll look at three companies fitting into the latter category: falling knives facing serious headwinds that you don’t want to attempt to catch.
