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!
More related Foolishness:
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Sean Williams does not own shares in any companies mentioned in this article. He wonders who would win a fight between William Shatner and Chuck Norris. You can follow him on CAPS under the screen name TMFUltraLong. Motley Fool Options has recommended a write covered straddle position on Paychex, which is a Motley Fool Inside Value pick. Coventry Health Care and priceline.com are Motley Fool Stock Advisor choices. The Fool has created a bull call spread position on Cisco Systems. Motley Fool Alpha owns shares of Cisco Systems. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Stocks You'll Want To Own If Inflation Begins To Rise
Rising prices erode purchasing power; here are 3 stocks that are fit to mitigate that loss
Ask a Fool: Recouping Shares After a Merger
Investing in special situations and bankruptcies can be incredibly challenging, and sometimes, the risk can really outweigh the reward.
Airlines Having Fun With Promotions
Corporate promotions can make for some good laughs, and some airlines have been showing that they have a sense of humor.