Stocks to Sell in April
After a sharp sell-off in mid-March, the Dow has risen more than
800 points since its March 16 correction low. But volatility has
been high and volume low, indicating a possible lack of commitment
on the part of major institutions.
Despite the numerous uncertainties that remain, from the
financial crises in Europe to unrest in North Africa and the Middle
East, most stocks have rallied from their lows. However, some have
failed to keep pace, and these represent stocks to sell.
Additionally, many of the stocks on our list have been subject to
heavy selling by "insiders," including corporate officers, which is
another bad sign.
Bottom line: In a bull market, investors cannot afford to have
their portfolio growth restrained by non-performers and should weed
them out. Here are six stocks to sell in April:
Stock to Sell #1 - BP PLC (BP)
International oil and gas company
) has "a high risk profile," according to Standard & Poor's.
Following the disastrous Gulf spill, the stock has managed to
recover from its low under $27 and rally to above its 200-day
moving average. But it came into contact with its long-term bear
market resistance line in late February, and again in late March,
and quickly turned away from it each time, confirming the
Those who have held BP throughout the crisis now have the
opportunity to sell and reinvest their money into a higher-growth
asset. TD Ameritrade's "ResearchTeam" (S&P, Ford Equity,
TheStreet, MarketEdge and Jaywalk) recently downgraded BP from
"hold" to "reduce." The technical target for a short sale is
Stock to Sell #2 - Celanese Corp. (CE)
), a producer of industrial chemicals, acetyl products and
engineered polymers, has risen from a low of under $26 in July to
over $44 in February. But slower-than-expected global economic
activity and unplanned shortages limited its growth. The Research
Team downgraded CE from a "hold" to "reduce" on March 30.
Technically, the stock is running into resistance at huge tops
made in 2007 and 2009, and it is unlikely that it has enough
momentum to overcome the sellers at those levels. Insiders have
been selling on balance for three months. The stochastic is
overbought and our proprietary Collins-Bollinger Reversal (CBR)
indicator recently flashed a double sell signal. The technical
target for short sellers is $38.
Stock to Sell #3 - Intel Corp. (INTC)
Despite its position as the world's largest semiconductor chip
) has been in a bear market since December 2001, due to its
inability to outperform smaller, more specialized manufacturers.
S&P points out that Intel's limited share in the fast-growing
mobile markets will limit sales and sees "acquisitions hindering
profitability improvement this year." Insiders have been large
sellers for 12 months.
Note that the stock turned away from its red-dotted bearish
resistance line in February, and from its 200-day moving average in
March. Long-term holders of the stock are advised to seek higher
growth technology stocks, and short sellers may take positions with
a target of $18.
Stock to Sell #4 - JetBlue Airways Corp. (JBLU)
JetBlue Airways Corporation
) provides passenger air transportation services in the United
States, operating 600 daily flights to 60 destinations in 20 states
and Puerto Rico, and 11 other countries. Rising fuel costs and
slowing growth due to increased competition are the reasons cited
by S&P for their "two-star sell" fundamental rating. And
insiders have been selling heavily for the past three months.
Technically, JBLU is in a long-term basing pattern that began in
2008. Its recent rally to its 200-day moving average looks like a
great opportunity to sell the stock. The short seller's target is
Stock to Sell #5 - Jones Apparel Group (JNY)
Jones Apparel Group Inc.
), a designer and marketer of branded apparel, footwear, etc.,
could be hurt by weaker-than-expected consumer spending and
competition from department stores. The Research Team reduced JNY
to "downgrade" from "hold" on March 14.
Technically, JNY is in a pronounced bear market and rallies are
opportunities to sell this stock. Short sellers could take
positions now targeting new lows at $11 or less.
Stock to Sell #6 - QLogic Corp. (QLGC)
), a designer and supplier of network products to handle large
volumes of data, has trended sideways since 2001. S&P has a
limited target of $20 for the stock due to high risks associated
with valuation versus its peers and concerns about weak consumer
spending, a possible rise in the U.S. dollar, and a significant
loss of market share. Insiders have been heavy sellers for 12
The stock has been trading around its 50- and 200-day moving
averages since July 2010, and most likely will continue the
sideways trend indefinitely. Sell now for better opportunities in
the technology sector.