Seeking Alpha

UBS suggests seven stocks to sell or short

  • UBS offers seven stocks it says investors should remove from their portfolios or even consider selling short:
  • Apache (APA), which still conducts lots of business in the volatile Middle East even after selling some reserves.
  • Deere (DE), the only name the firm rates as a Sell, due to slowing overseas orders and poor domestic agriculture pricing.
  • DirecTV (DTV), as it becomes harder for satellite TV providers to compete with bundled packages from cable companies and carriers.
  • Emerson (EMR), which looks expensive relative to peers in trading at nearly 33x earnings.
  • Eli Lilly (LLY), with a thin product pipeline and facing patent expirations on some of its top drugs, including Cymbalta, which accounts for nearly 25% of total revenue.
  • Lockheed Martin (LMT), which may be facing sales cuts to the Defense Department.
  • Target (TGT), which needs to step up its online sales if it wants to compete with its big-box retail rivals.
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Comments (9)
  • richard48
    , contributor
    Comments (410) | Send Message
     
    UBS says sell short DTV as it is having trouble competing.
    Sounds like some MBA is an idiot. Berkshire Hathaway
    has been buying DTV every quarter for the last 4-5-6
    quarters. Who knows what they are doing UBS or
    Berkshire Hathaway when it comes to investing?

     

    I go with the Berkshire Hathaway group.
    7 Nov 2013, 07:16 PM Reply Like
  • Walter P. Chrysler
    , contributor
    Comments (300) | Send Message
     
    price wars. "do not be fooled by the big money." they have an Agenda which involves management issues. again don't get me wrong DTV is a great company...one of the best actually...but today was a Dunkin Donuts day.
    7 Nov 2013, 10:26 PM Reply Like
  • stewball
    , contributor
    Comment (1) | Send Message
     
    Dtv hit a triple top point and figure break out signal a couple of days ago. Usually, that is a very positive .
    I'm sticking with dtv .
    Stew
    8 Nov 2013, 02:26 AM Reply Like
  • Dr Joseph Haluska
    , contributor
    Comments (514) | Send Message
     
    Sell???
    Why?
    To pay more taxes on my capital gains?
    So I will lose out on my chance to compound my dividends at lower prices, and increase my yield on cost?
    Ok, so prices are going to go down. Isnt that the time to buy quality companies for the long term, not sell?
    The market fluctuates.
    Is that a reason to jump ship?
    Who is supervising UBS? LMAO!
    Just my opinion.....
    7 Nov 2013, 09:53 PM Reply Like
  • Walter P. Chrysler
    , contributor
    Comments (300) | Send Message
     
    "because no one ever took a loss by taking a profit." that's why you sell. taxes hurt...but so do capital losses and "impairments" that can very easily become permanent. unless of course we're talking snark here...in which case "rock on bro." that is the United Bank of Switzerland however and they chose Connecticut to do their trading for a reason.
    7 Nov 2013, 10:30 PM Reply Like
  • samwayneorman
    , contributor
    Comments (2) | Send Message
     
    I understand quite a few of these companies being on the short and sell list, but why APA. Still well below it's intrinsic value with a lot of growth potential.
    8 Nov 2013, 12:57 AM Reply Like
  • fatbaboon
    , contributor
    Comments (251) | Send Message
     
    UBS recommends.... hahahahahaha
    8 Nov 2013, 03:13 AM Reply Like
  • Winning Formula
    , contributor
    Comments (1204) | Send Message
     
    "Emerson (EMR), which looks expensive relative to peers in trading at nearly 33x earnings."

     

    Based on projected earnings, EMR's forward P/E is 17.9. Can't scare me out of EMR based on historic P/E.

     

    I own TGT and believe it will be one of my best performers going forward. It pays a 2.7% dividend and is projected to grow earnings at 11% over the next five years. I add the dividend plus the earnings growth to project my return. Let's see . . . 2.7 plus 11 equals 13.7. Let me consider this for a moment, should I sell my TGT projected at a 13.7% return to buy a 10 year treasury at 2.6%?

     

    Let's look at DE. 2.5% yield and 8.5% projected growth. 2.5 plus 8.5 equals 11. Same question 11% or 2.6%?

     

    Where do these analysts come up with these sell recommendations. Do the math, invest for the long term and ignore the noise.
    8 Nov 2013, 07:48 AM Reply Like
  • whiff
    , contributor
    Comments (862) | Send Message
     
    Sold EMR already - will try to sell LLY against 200 day moving average - if it fails there, I will leave the sale out - if it moves convincingly above, I buy it back ...
    9 Nov 2013, 05:27 PM Reply Like
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