James Stewart over at Smart Money shows us a list of stocks to sell now!
Here is the list:
So what was on the list? At the very top is SonicWALL (SNWL:Â 10.64, -0.07, -0.7%), which makes network-security software, firewalls, and email-security software. It’s already up nearly 50% this year â€” not a bad showing, but more to the point, it boasts an off-the-chart PEG. Don’t ask me why. All I can say is that if I owned this stock (I don’t) I’d be running for the exits.
Also rounding out the top 10 are such well-known names as Qwest Communications (Q:Â 7.75, +0.10, +1.3%), Sun Microsystems (SUNW:Â 5.56, -0.03, -0.5%), and Akamai Technologies (AKAM:Â 50.45, -0.56, -1.1%). Akamai has nearly tripled this past year. My advice: Don’t be greedy. These are prime candidates for profit-taking.
(When you run the data to produce your own overvalued list, your results may differ, since they change constantly with shifting prices. I ran this screen last week.)
Not surprisingly, there were plenty of commercial real estate investment trusts on the list. Notwithstanding Blackstone’s proposed $20 billion buyout of Equity Office Properties (EOP:Â 49.00, +0.42, +0.9%), the data support my view that many of these REITs are overvalued. In this latest deal, my money would be with Sam Zell, a shrewd investor who I suspect smells a market peak in this sector. Some other familiar names on the list (in descending magnitude of being overvalued) include Krispy Kreme (KKD:Â 10.09, -0.02, -0.2%), Celgene (CELG:Â 55.15, -0.09, -0.2%), AMR (AMR:Â 34.10, +0.10, +0.3%), Merck (MRK:Â 44.18, -0.20, -0.5%), Marvel Entertainment (MVL:Â 28.91, -0.29, -1.0%), Dillard’s (DDS:Â 35.81, -0.08, -0.2%), Comcast (CMCSA:Â 39.75, +0.10, +0.3%), and Campbell Soup (CPB:Â 37.50, 0.00, 0.0%).
Have a great long weekend!