The month of June has not been kind to investors, marred by
massive sell-offs that have knocked the Dow Jones Industrial
Average down 5% since May 31. Bargain hunters are chomping at the
bit to pick up their favorite expensive stocks while they're "on
sale." But I don't want you to get suckered into buying big-name
stocks that have not been performing well just because they are a
few dollar cheaper. So here is a list of mega-cap names that should
be avoided, even at their newly discounted prices:
Stock to Sell #1 - Petrobras Petroleo Brasileiro (PBR)
Thanks to a downturn that started in April, integrated oil and
Petrobras Petroleo Brasileiro
) has watched its stock drop 11% year-to-date despite very strong
gains in the first part of 2011. PBR stock is down 13% in the last
12 months and is trading close to its 52-week low of $31.50.
Stock to Sell #2 - Berkshire Hathaway (BRK.B)
Warren Buffett run holding company
Berkshire Hathaway Inc.
) has had a lackluster couple of months, dropping 13% in the last
90 days and 8% year-to-date. Quarterly earnings growth of -58% last
quarter is another reason to sell the "Oracle of Omaha's"
Stock to Sell #3 - Google (GOOG)
It may be your go-to search engine, but
) should not be your go-to stock. GOOG is down 15% year-to-date and
posted year-over-year quarterly earnings growth of -8% last
quarter. With a $167 billion market cap this is one big stock to
Stock to Sell #4 - Wells Fargo & Co. (WFC)
Diversified financial services company
Wells Fargo & Co.
) has dropped 19% in the last three months despite big gains in the
start of 2011. WFC is down 7% in the last 12 months and is trading
near its 52-week low of $23.02.
Stock to Sell #5 - Citigroup (C)
With a market cap of $108 billion, diversified financial
services holding company
) is the next to make the list of stocks to sell. Down 3% in the
last 12 months and 25% year-to-date, C is barely holding above its
52-week low of $36.20.
Stock to Sell #6 - Bank of America (BAC)
It may be a household name in the states, but
Bank of America
) stock should be dropped from your portfolio. BAC is down 26% in
2011 and 31% in the last 12 months. Don't over look the bank's
stock recent quarterly earnings growth of -36%, year-over-year,
Stock to Sell #7 - China Life Insurance Co. (LFC)
China Life Insurance Co.
) has watched its stock value dwindle 17% year-to-date and 22%
since last June. With a market cap of $95 billion, LFC is hovering
dangerously close to its 52-week low of $50.