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Expect a 1929-Style Disaster? Here are 3 Stocks to Sell

These 3 stocks may be overvalued, so now is good time to sell

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Pandora PYou know it’s cute that this little upstart Internet radio company Pandora (P) chose a one-letter ticker, but I’m not impressed. It used to be one-letter tickers were meant for the industrial giants – the best of the best, like U.S. Steel (X). Instead this one-letter wonder is a bit fraudulent if you ask me.

While online radio has seen impressive growth with the company figuring out how to monetize that audience with advertising, the stock is quite vulnerable to a pullback. For starters, if Apple (AAPL) ever got serious about competing with these guys, the game would be over for Pandora. They are on a very short leash and if a market drop is in the cards, this is one to sell in advance. Analysts expect the company to grow profits by nearly 200% in 2014, but the stock trades for 77 times 2014 estimated earnings. That’s simply too much, no matter how impressive perceived growth is in the near term. As I said longer term, I do not see a viable Pandora.

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