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6 Stocks to Sell in September

These low-quality stocks are unlikely to stage a meaningful recovery under any circumstance

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Stock to Sell #2 – eBay (EBAY)

eBay (EBAY) is one of the most popular e-commerce sites, but acquisitions and expansion have limited growth for several years. Its entrance into developing markets has been unsteady, and regulatory and legal matters could have a negative impact on future earnings.

Although consensus earnings are expected to grow to $3.18 in 2014, up from an estimated $2.71 in 2013, that is far from certain. And at almost 20 times this year’s earnings, the stock is no bargain.

Technically EBAY is forming a bearish rounding top, and the 50-day moving average has crossed the 200-day moving average — a bearish signal called a death cross. Sell at the market.

EBAY Chart
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