The stock market has been mighty perky in recent months, up 6%
so far in 2011 and up almost 20% in the last six months. The major
indexes are going strong and a broad-based rally appears to be
lifting not just specific sectors but blue chips across the board.
But that doesn't mean there aren't plenty of
stocks to sell
before they flop.
But investors can't get complacent. Some of the biggest names on
Wall Street are still screaming sells despite this relatively new
bull market trend. Some stocks have proven this by lagging the
market considerably during the rally, others have shown their true
colors with poor earnings and some are just plain old dogs with
fleas that are mismanaged and rely on poor business models.
To keep you in the best stocks for this rally, here are 11
mega-cap duds to sell now:
Bank of America:
Bank of America
) may be sitting on double-digit gains over the last few weeks, but
shares are off -25% since last April and nearly -60% since late
2008. Bad mortgages continue to weigh on this stock so avoid it for
: Warren Buffet's
Berkshire Hathaway Inc.
) has had a decent stock performance in the past year, but its
earnings numbers should cause concern. A quarterly earnings growth
of -8%, year-over-year has no stockholder excited. Buffett prides
himself on buying good companies at fair prices, but now may be the
time for growth - not bargain hunting - as the economy gears up
: If the oil spill wasn't enough to turn you off from buying
) its -14% drop in the last 12 months should. Analysts are
projecting an earnings drop of 13 cents this quarter as well. Crude
oil may be on the rise, but investors have better energy stocks to
: Communications and IT giant
Cisco Systems Inc.
) has had the worst 12 months of any stock on this list, down -21%.
When things started to pick up at the end of January, CSCO dropped
-15% again. The numbers say it all.
: It may be your go-to search engine, but
) should not be your go-to stock to buy. In the last month the
broader markets have posted modest gains while Google has barely
treaded water. The company is sitting on piles of cash and toying
with the buyout of everything from Twitter to Groupon. But when you
look at the actual earnings, GOOG doesn't really impress me in the
: Another software industry staple
) should also be avoided, having dropped -12% since April. And
unlike other lagging blue chips that at least pay back
shareholders, a dividend yield of less than 1% isn't comforting
: Since reaching a peak in April,
) has dropped -11%, compared to large gains by the broader markets.
The tech giant looked like it might turn it around, but the stock
has gained just +1% in the last three months.
Johnson & Johnson
: Losses of -3% in 12 months and -6% since November make
Johnson & Johnson
) a stock to sell at the moment. Down earnings numbers aren't
helping JNJ's cause either. As drug patent expiration and generic
competition reshapes the drug marketplace, JNJ is risking being
Merck & Co
: Last but not least is global health care company
Merck & Co.
) which is down -11% in the last year. A stock loss of -9%
year-to-date and a net profit margin of -4% only add to MRK's
12 Best and Worst Energy Stocks
) may have posted a small gain in the last three months, but Bill
Gates's company is down -4% over 12 months and -5% since mid
January. The tech giant may have a virtual monopoly on office
software, but it lacks the growth and consumer appeal of companies
) that are connecting with both gadget geeks and 21st century
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Procter & Gamble
: Packaged goods and personal products behemoth
Procter & Gamble
) was showing strong growth until mid-January, and the stock is now
down -4% in that time. Quarterly earnings growth of -29%,
year-over-year is also troubling, and a sign of rough times ahead
As of this writing, Louis Navellier did not own a position in
any of the stocks named here.