News of the ongoing nuclear crisis in Japan coupled with a surprise trade deficit from China have stymied the market over the past week, but hardly enough to put a dent in this drawn-out rally. For bulls, these rallies may seem like a dream come true. For skeptics like me, they’re opportunities to see whether companies trading near their 52-week highs really deserve their current valuations.
Keep in mind that some companies deserve their lofty prices. Shareholders of Incyte
Pass this along to the consumer
As fuel prices continue to march higher and consumers tighten their belts in order to save money, you’d think 99 Cents Only Stores
In addition, the company received an all-cash buyout bid of $19.09 per share from the Schiffer-Gold family one month ago. As of today, 99 Cents is trading nearly 5% above that all-cash offer and a second bidder still hasn’t emerged. My advice would be to put this one back on the shelf before its sell-by date expires.
Give 'em the raspberry
I’m not purposely attacking food sellers or producers this week, but Unilever
Even more disturbing, Unilever has failed to live up to expectations in the past three quarters, missing consensus estimates by an average of 14.6%. I can understand that being a foreign-based company means it doesn't get as much U.S. analyst coverage, but even Unilever's premium Ben & Jerry’s brand has no flavor that can cure that sort of disappointment.
Trial and error ... and error
It’s no secret that I’m a “show me” investor -- and all that biotechnology company Medivation
The company’s leading drug candidate, dimebon, was developed in collaboration with Pfizer
Do you think these stocks have what it takes to move higher? Voice your thoughts in the comments section below and consider adding 99 Cents Only Stores, Unilever and Medivation, as well as your own personalized list of companies to My Watchlist.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. He would like to remind you not to forget about our friends in Japan who could still use a helping hand. You can follow him on CAPS under the screen name TMFUltraLong. Pfizer is a Motley Fool Inside Value pick. Unilever is a Motley Fool Global Gains and Motley Fool Income Investor recommendation. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that never needs to be sold short.