2 Stocks to Sell Because Time Has Passed Them By
Tesla will own affluent types in high-tone urban and suburban enclaves, but they're not selling items that even the well-off are willing to replace every six months to a year like Apple is. While their Apple-like approach to retail makes for a great story, I think we've seen the climax.
Sure you might miss some upside pop here and there when the Model S gets delivered or when Tesla shows off its crossover Model X, but as a long-term investment, I'm no longer a fan.
Here's a trend I intend to follow in place of TSLA before the end of the year -- natural gas as the fuel of choice for transportation and other crucial activities going forward. I plan to use the United States Natural Gas ETF(UNG) to play it.
Consider what contributor Robert Weinstein had to say about UNG in the following articles on TheStreet: Here's Why Oil is So Expensive (May 8, 2012) and Natural Gas Will Dictate Oil Prices, Not Iranian Sanctions or OPEC (June 12, 2012).
In a nutshell, Weinstein tells us that $100 a barrel oil is nothing but a dream and natural gas will eventually power transportation in many parts of the world, including the United States. He already looks like a prophet on the oil call and I have confidence in his views on natural gas. I'll likely take his lead and use options to play UNG due to the high carrying cost of going long that type of ETF. In fact, I will likely use this year's IRA contribution to sell puts in an effort to get long before 2012 expires.
In addition to TSLA, I would take any profits you may have squeaked out of Sirius XM(SIRI) over the last year and run away like you just robbed a bank. If you bought and held over the last year, you're actually down about 6%, however, volatility in the world's least favorite cult stock made it a play you could have timed for occasional profits.
I have beat the drum feverishly over the last year on what a horrific long-term investment Sirius XM is -- see, for example, Will Sirius XM Go Extinct?. Nothing has changed. And it's not getting better.