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Fund Manager Says These Stocks May Have No More Room To Run

Thursday, 14 Jun 2007 | 11:44 AM ET

Brent Wilsey, president of Wilsey Asset Management, offered CNBC’s “Squawk on the Street” his view of five stocks to avoid:

Five Stocks to Avoid
Some stay away trades, with Brent Wilsey, Wilsey Asset Management president and CNBC's Erin Burnett & Mark Haines

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%.

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