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5 Stocks to Sell in December

Unlike most large-cap stocks, these names are not likely to rally into year-end

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Stock to Sell #3 – Netgear (NTGR)

Netgear (NTGR) provides networking products to consumers, businesses and service providers. On my Stocks to Sell in September list, I noted, “Slow growth expectations continue a pattern that began in 2011 with earnings of $2.41. The company earned $2.57 in 2012 and is expected to earn $2.30 this year.”

Since then, the consensus estimate has been reduced by a nickel to $2.25, while the 2014 estimate is $ 2.43 per share.

In November, the stock rebounded to its quadruple-top resistance line at $32.50. Since MACD is now overbought and resistance is high, those holding NTGR should take this opportunity to protect positions with options or sell. Short sellers should enter a stop-loss order at $34.

NTGR Chart
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