We have one week of 2011 in the books, and once again the market has continued to trend higher virtually without interruption. Just last week I proposed three companies that were at or very near 52-week highs that could be worth letting go. With AutoZone, I couldn't have been more right, but JDS Uniphase continues to taunt my call.
Keep in mind that some companies deserve to be trading at or near new highs. Paychex
Now negotiating sell price
Begin the hate mail now, because it's looking like it's time to let go of priceline.com
My concern stems from the ongoing booking procedure spat between American Airlines
Also troublesome are the slowly rising jet fuel prices, which could put a crimp in consumers' travel plans. Given the above, at 13 times book and seven times sales, I'm willing to live my life sans Priceline.
Statistically speaking, with Cavium trading at nearly 11 times book value and 37 times 2011 earnings projections, I'd have to think there are more attractively valued plays in the networking sector.
Coventry Health Care
Insiders can sell for many reasons, ranging from tax purposes to valuation concerns. After Coventry's meteoric rise on declining revenues, my bet is on the latter. As long as the CEO is selling his stake and revenue remains stymied, even Coventry at a forward earnings multiple of 10 isn't enough to lure me in.
Have an opinion on any of the above companies? Let's hear about it in the comment section below!
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