Merrill Lynch: "The Run Is Done" List
By: The run is done at least for several stocks according to Merrill Lynch. As Dylan Ratigan first told you on “Closing Bell,” Savita Subramanian, quantitative strategist at Merrill Lynch, has made a list of companies due for a pullback. You can’t afford not to click.
According to the Merrill Lynch report, “These 17 stocks have exhibited significant out-performance in 2006 but might be at risk of under-performing in early 2007."
Here they are and in no special order.
1. DIRECTV Group
2. General Motors
3. Gymboree
4. Kohl's Corp.
5. Safeway Inc.
6. Boston Properties
7. Applied Biosystems Inc.
8. AGCO Corp.
9. Allied Waste Industries Inc.
10. Deere & Co.
11. Lockheed Martin Corp.
12. Paccar Inc.
13. Terex Corp.
14. Lam Research Corp.
15. Mentor Graphics Corp.
16. Synopsys Inc.
17. ValueClick Inc.
The preceding list reflects the personal views of Savita Subramanian. As explained in the Merrill Lynch report, "There are two major reasons for the potential pullback. First, the reversal of 'window dressing.' That is, investment managers may hold stocks with the biggest gains until year-end year to indicate that the fund participated in the biggest winners of the year. Second, investment managers may wait until January to exit best performing stocks to avoid short-term capital gains."
