Today you will learn about 5 companies that you definitely should not invest in the coming years so as not to lose your own money.

The presented companies have increased risks, they are faced with serious problems that scare away potential investors.

Aeroflot

Aeroflot was even before the current situation was not famous for outstanding financial results.

The company performs more social than a commercial function. And now the situation has become even worse against the background:

The company is experiencing serious problems. Even despite the huge support of the state, the restrictions and business model of the company do not allow it to earn money for its investors.

But this is not all, the chronic additional issue of shares makes this asset investmently unsuitable. Unfortunately, Aeroflot is an example, rather, not investments, but charity.

VTB

Russian banks fell under the strongest sanction and the most injured bank - this is VTB.

This bank was not among the sanctions among investors' favorites, and after falling under blocking sanctions, business viability is under a big question.

Lack of diversification of the banking business (and, as a result, the closure of some segments due to sanctions), the fall of Russia's GDP and the decrease in economic activity of the population, currency restrictions, high loan rates that many consumers are unable to serve-all this is now negatively affected At VTB business.

The bank’s growth drivers are absent, but no one canceled competition.

VTB decided to concentrate on the domestic market, and with the support of the state will save its business. But in the current situation, long -term investments in this bank look just absurd.

Sword

In the current situation, the company will have significant benefits from the world energy criticism. Coal prices are rising, and with them, the financial indicators of the company are growing.

But what then is wrong with the swordsman? Huge duty and foggy growth prospects.

High demand for coal and high prices for it can have a short -term effect, and the company will carry the debt burden for many years.

Mechel may face serious problems on the horizon of several years, and growth prospects are not as obvious as they may seem at first glance.

This is a very risky asset, it is more suitable for short -term ideas than for investment for a long time.

Developers (LSR)

I would like to highlight the company of the LSR. Despite the programs of preferential mortgage, and the state’s attempts to save the construction industry from the collapse by reducing lending rates, the developers are still under a serious blow.

Huge demand for housing during the pandemic resulted in rising prices for square meters. And many buyers are no longer able to afford the purchase of real estate at current prices, and loan rates remain quite high.

If earlier people took a mortgage without looking, then in the current conditions, many buyers will once again think about their financial capabilities (amid a decrease in the economy and disposable incomes).

It is quite clear the desire of the authorities to support one of the most capital -intensive industries, but will the solvent demand for real estate be sustainable?

The LSR may be in a difficult situation, the company has already refused to pay dividends, and its shares can continue their decline after mortgage pandemic boom.

And against the background of a revision of conditions, and refusals by banks in lending, many consumers refuse mortgages and plans for housing construction.

AFK system

AFK System is a contradictory company.

On the one hand, the company has a large investment portfolio in its own projects.

On the other hand, the question remains whether she will be able to realize the potential of her daughters.

The AFK system had grandiose plans to withdraw their subsidiaries on IPO and sell shares in their businesses. But, it seems, in the medium term, these plans are not destined to come true.

Investment climate in Russia is currently imperfect (to put it mildly). Also, against the backdrop of sanctions, its founder, Vladimir Yevtushenko, left the company.

Do not forget about the debt load of the company. In the medium term AFK, the system is not the best choice. Although, this company should still be kept in its portfolio for a long time.

For today, thanks for your attention!

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