The Worst Stock for 2007

I've read folks recommending large-cap growth stocks such as Yahoo! (NASDAQ:YHOO) and eBay (NASDAQ:EBAY). Then there are the analysts who believe that hot small caps such as NutriSystem (NASDAQ:NTRI) will continue to outperform. Others say homebuilders such as DR Horton (NYSE:DHI) and Pulte (NYSE:PHM) will really turn around in 2007. And there's also buzz around ocean freighters, commercial real estate, commodities, and even cash.

In other words, financial pros are atwitter to tell you what you should do to make money in 2007 -- even if they can't agree.

Yes, we live in a glass house
And you know what? We've given out a lot of advice, too. We've named:

1. The Best Blue Chip for 2007,
2. The Best ETF for 2007,
3. The Best International Stock for 2007, and
4. The Best Small Cap for 2007.

But then it dawned on us: No one has said what you shouldn't do to avoid losing money in 2007. So we're back this week to stir up some controversy and answer this very important question:

What will be the worst stock to own in 2007?

That's right -- the absolute worst
In our opinion, these are stocks that you shouldn't touch with a 10-foot pole. You may not even want to recommend them to your worst enemy.

Note, however, that I said stocks; not companies.

Many of the candidates you're going to read about are very fine companies that offer very fine services -- yet their stocks may simply be trading at precarious valuations. Others, however, if you'll pardon my French, may simply [golf word].

But that's up to you to decide.

Seriously. You.
Because as we did in our other contests, we're going to use our brand-new Motley Fool CAPS community intelligence database to determine which stock will be named the worst.

You'll find an analyst making the case against each of our candidates. We ask you, the individual investor, to read through them and then make your thoughts known in CAPS. If you agree with the analysis, rate the stock "underperform." If you disagree, rate it "outperform." The stock with the most new, net underperform ratings (underperform ratings minus outperform ratings) will receive our dubious distinction.

By early next week, our powerful community of investors will have declared The Worst Stock for 2007 -- and you'll know at least one idea you don't need to bother researching next year. Get started by reading the analyses below and then clicking here to join CAPS today.

Our contestants:

• XM Satellite Radio
• Crocs
• Sirius Satellite Radio
• Google
• Gap
• Wild Oats Market
• Daktronics
• General Motors
• Toll Brothers
• PolyMedica
• Research In Motion
• Overstock
• Vonage
• Martha Stewart Omnimedia

Tim Hanson does not have a financial interest in any company mentioned. That means he is not part of a conspiratorial shorting club that has set out to make sure you lose money. So please keep any accusations of that kind to yourself. Yahoo! and eBay are Motley Fool Stock Advisor recommendations. The Motley Fool has a disclosure policy.