Overvalued Stock Screen

Every once in a while I will run a screen to find stocks that might be overvalued. This can serve to identify candidates for short sales. After a nice upward move in the market, coupled with increased bullishness among market pundits, searching for some shorts to hedge seems reasonable.

I screened for U.S. companies with market caps of at least $2 billion that sport price-to-sales and price-to-book ratios of at least 10. The screen yielded 10 stocks, which are listed below in alphabetical order.

Akamai Tech (AKAM)
Amylin Pharma (AMLN)
CBOT Holdings (BOT)
Celgene (CELG)
Chicago Mercantile Exchange (CME)
Genentech (DNA)
Intercontinental Exchange (ICE)
Las Vegas Sands (LVS)
Ultra Petroleum (UPL)
Vertex Pharma (VRTX)

Full Disclosure: I am short shares of Celgene (CELG) at the time of publication.

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