Sell These Stocks Now!

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: 10.64, -0.07, -0.7%), which makes network-security software, firewalls, and email-security software. It’s already up nearly 50% this year — 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: 7.75, +0.10, +1.3%), Sun Microsystems (SUNW: 5.56, -0.03, -0.5%), and Akamai Technologies (AKAM: 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: 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: 10.09, -0.02, -0.2%), Celgene (CELG: 55.15, -0.09, -0.2%), AMR (AMR: 34.10, +0.10, +0.3%), Merck (MRK: 44.18, -0.20, -0.5%), Marvel Entertainment (MVL: 28.91, -0.29, -1.0%), Dillard’s (DDS: 35.81, -0.08, -0.2%), Comcast (CMCSA: 39.75, +0.10, +0.3%), and Campbell Soup (CPB: 37.50, 0.00, 0.0%).

Have a great long weekend!

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