This Day On The Street
Continue to site
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

These Stocks Could Be Too Hot

"In addition, its timberlands are the most productive and valuable among its peers because of its regional exposure in the Pacific Northwest and its wood products business (40% of sales) levers its more than the competition."

Any potential or current shareholders of WY love those reasons for ownership.

My caveat is that from both a fundamental perspective (shares selling at 23 times forward, one-year earnings) and from a technical viewpoint, WY may be due for a correction. As recently as Dec. 31, and admittedly connected with the "fiscal cliff" scare, shares traded near the $27 level.

It is also prudent to point out that WY shares are just as likely to test the 52-week high share price of $31.74. If the stock closes above that level it could conceivably form a new top before correcting. Those who care to invest at these levels may want to buy some "insurance" in the form of put options.

Another high-flyer is Blackstone Group (BX - Get Report), which since Nov. 16 has experienced a 48% skyrocket ride for its share price. BX is a diversified alternative asset management and financial advisory services company. Lately the spotlight has been on its real estate business.

It's been reported by several reputable news services that BX has accumulated an enviable portfolio of houses (three million, approximately) the company bought at distressed pricing and plans to use as rentals. In many areas of the nation there is a shortage of rental houses, and those are the regions BX has been targeting.

The best way to learn about Blackstone Group is to carefully peruse its informative Web site. You can easily find its full-year 2012 earnings report as well as its fourth quarter 2012 results. Personally speaking, I think this company is brilliantly led and operated.

What I want to show you, however, is the five-year chart of the stock's performance. The share price movement looks like a roller-coaster ride, yet its trailing 12-month cash from investing helps me understand why the stock hit a new 52-week high on Tuesday.

BX Chart BX data by YCharts
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BX $34.12 0.32%
WY $28.85 1.05%
AAPL $112.12 2.39%
FB $93.24 0.83%
GOOG $643.61 0.70%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs