3 Stocks for a Market Crash

Darth Maul - Large Pic

Courtesy of Darth Maul, here are 3 stocks that you'll want to be short if the carnage in the market continues.

They are: The Ultimate Software Group (ULTI), LinkedIn Corporation (LNKD), and Loral Space & Communications (LORL).

Why these 3 stocks? They are all in Tech, which typically drops hard during a risk-off situation like today's -50 point bloodbath in the Nasdaq.

Secondly, they are all severely over-valued. All three have a P/E >50 and a Forward P/E >50. Shares could literally be cut in half and valuations would still be suspect.

And lastly, LNKD and ULTI are trading +100% above their 52 week low. LORL is trading at 70% above its 52 week low.
MASTERY Bottom Line (Flying Kick Style)

Mastery Bottom Line

We don't know if a market crash is coming. However, recent market conditions have been less than stellar.

Keep these stocks on your radar as potential trades on the short side if we roll-over here.


Ultimate Software Group Inc (ULTI)

Over the past 12 months Ultimate Software Group Inc (ULTI) shares have traded between $49.08 and its 52-week high of $106.40.  Ultimate Software Group Inc shares are now trading with a P/E Ratio of 419.8 and EPS of 0.24.



LinkedIn (LNKD)

Over the past 12 months LinkedIn (LNKD) shares have traded between $55.98 and its 52-week high of $125.50.  LinkedIn Corp shares are now trading with a P/E Ratio of 1008.7 and EPS of 0.12.

 


Loral Space and Communications (LORL)

Over the past 12 months Loral Space and Communications Inc (LORL) shares have traded between $51.90 and its 52-week high of $82.48.  Loral Space and Communications Inc shares are now trading with a P/E Ratio of 175.9 and EPS of 0.85.