Eighteen Stocks to Stay Away From

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Business Week has published an interesting article, in which they ran a screen of the stocks of the S&P 500 to determine which ones are overvalued. Not surprising, a whole bunch of familiar faces appeared: GAP, GM, Wendy's, and Yahoo. Unless you strongly disagree with their analysis, the following stocks should probably be avoided in the near term:

Avalonbay Communities (AVB)
Bausch & Lomb (BOL)
Block (H&R) (HRB)
Countrywide Financial (CFC)
Dollar General (DG)
Eastman Kodak (EK)
Gap Inc. (GPS)
General Motors (GM)
Janus Capital (JNS)
KB Home (KBH)
Lennar Corp. (LEN)
Novell Inc. (NOVL)
PG&E Corp. (PCG)
Qwest Communications (Q)
RadioShack Corp. (RSH)
Sara Lee (SLE)
Wendy's International (WEN)
Yahoo Inc. (YHOO)

Comments

Anonymous said…
Good post. Have you been trading lately? If so, what sector? I've recently been trading oil and gold with some success.

FT
February 3, 2007 at 8:09 AM
torontoinvestor said…
I feel that gold is overpriced and due for a correction soon. At these levels I am bullish on oil and have not been trading in and out of them. I've mostly been purchasing. For example my stake in Talisman is now up 15%. I believe that there is still more room upside to it. I will probably get out and take profits if it rises another dollar or two though.
February 3, 2007 at 8:38 AM
Anonymous said…
Hey CD,

I sold my gold positions on Friday after a big run up. I am still bullish on oil, holding onto positions in ECA, PCA, and COS.un.

FT
February 4, 2007 at 12:30 PM
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