Fund Manager Says These Stocks May Have No More Room To Run
Brent Wilsey, president of Wilsey Asset Management, offered CNBC’s “Squawk on the Street” his view of five stocks to avoid:
Blue Nile – Shares of the online jeweler have about doubled from their 52-week low. The price/earnings ratio is now about 70.
“There’s no reason to buy this company now,” Wilsey said Thursday.
Ciena - Shares of fiber optic network equipment maker are up about 60% from its 52-week low. The stock has a P/E of about 100 and now trades about 30% above its 200-day moving average.
After a solid run, it doesn't make sense to buy the stock, Wilsey said.
Radio Shack – The price of the electronics retailer's shares look attractive, but they are up about 144% from its 52-week low. Wilsey said sales are declining about 10% year-over-year and earnings are down sharply. The company also carries a lot of debt.
Sara Lee – The food company's stock has a P/E of about 68 and earnings are down about 61% year-over-year. Sara Lee also carries heavy debt.
“It’s kind of a boring company,” Wilsey said.
Jo-Ann Stores – Shares of the fabric and home goods retailer have had a tremendous run, climbing about 170% from its 52-week low. But sales are down about 2% year-over-year and the return on equity is negative 1%.