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%.