This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nine Stocks Taken to the Woodshed


NEW YORK ( TheStreet) -- Economic growth depends upon consumer spending and success from small businesses. Today I profile nine stocks that have recently been taken to the woodshed following negative company-specific news.

It appears that ladies have cut their spending on luxury leather goods while fewer men are adding to their business wardrobes, and that pet owners have their dogs and cats on diets.

Spending on information technology seems to have slowed both on home IT networks and at small businesses.

Yesterday, we learned that advanced Q4 GDP came in with a slight contraction of 0.1% when a modest 1.3% expansion was expected. Attributing to the weaker than expected report were; cuts in government spending, slower exports and sluggish growth in inventories.

On Tuesday, we learned that The Conference Board's Consumer Confidence Index surprisingly slumped to 58.6 in January down from 66.7 in December to the lowest reading since November 2011. The chart, below courtesy of "dshort" at Advisor Perpectives , shows this index well below the neutral 90 to 110 readings.

This morning, shows that 62.4% of all stocks are overvalued, just below our 65% warning threshold. All 16 sectors remain overvalued with nine overvalued by double-digit percentages: Consumer staples by 28.2%; transportation by 24.4%; construction by 23.6%; industrial products by 21.0%; finance by 16.6%; medical by 16.2%; retail-wholesale by 15.9%; computer & technology by 15.2%; and business services by 10.5%.

Technically, the Dow Jones Industrial Average has an extremely overbought daily chart, a weekly chart that is nearly overbought, and a monthly chart that is overbought. The Dow has been knocking on the door of 14k solid gold, with the October 2007 all time high is 14,198.10, and the all time closing high at 14,164.53 set on Oct. 9, 2007. My quarterly and semiannual risky levels are 14,118 and 14,323.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs