7 Big-Name Stocks That Are a Sucker’s Bet


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 gas company Petrobras Petroleo Brasileiro (NYSE: PBR ) 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. (NYSE: BRK.B ) 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.

Stock to Sell #3 - Google (GOOG)

It may be your go-to search engine, but Google (NASDAQ: GOOG ) 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 sell.

Stock to Sell #4 - Wells Fargo & Co. (WFC)

Diversified financial services company Wells Fargo & Co. (NYSE: WFC ) 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 Citigroup (NYSE: C ) 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 (NYSE: BAC ) 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, either.

Stock to Sell #7 - China Life Insurance Co. (LFC)

Insurance company China Life Insurance Co. (NYSE: LFC ) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: BAC , C , LFC

Louis Navellier

Louis Navellier

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