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Our 3 Sells for July

Slower revenue growth hampers these industry leaders


Earlier in the month, I sent you a Flash Alert recommending that you exit your shares in EQT Corporation (NYSE:EQT). This was our way to play the natural gas boom in the U.S., and we added the stock because of its big investment in the massive Marcellus shale deposit. But the recent low prices for natural gas have weighed on the company’s earnings results, and my rigorous weekend screens showed that buying pressure has slipped for the company. Sell EQT.

I also want to recommend today that you exit your positions in two more stocks:

BorgWarner (NYSE:BWA) is a play in the auto parts industry. BWA sells its engine and drivetrain products for many of the world’s largest automotive manufacturers, such as Ford (NYSE:F), Volkswagen (PINK:VLKAY) and Daimler (PINK:DDAIF).

However, the company reported a first-quarter earnings miss, and investors have decided to let the stock coast for now. This sideways performance isn’t what we want to see from our Aggressive stocks, and the company has been bouncing around between a hold and a buy rating. Today, I want you to sell this position and move on to better opportunities.

Our last sell this month is VMware (NYSE:VMW)—our play on the super-hot area of “cloud computing.” This tech titan is a leader in the field and has a strong history of earnings surprises in the two years that we owned the stock, as VMW spent much of that time on a strong long-term trend higher.

However, we moved VMW shares to a hold in May due to a dip in buying pressure, and investors have been slow coming back to the stock because of weakness in the company’s competitors and fears of market saturation. Cut your ties in VMW.

After selling these positions, I recommend that you take a look at your portfolio and equally weight your positions, rebalancing where necessary.

Article printed from InvestorPlace Media,

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