These Stocks Are Flying Too High

There are a lot of ways to measure froth. Many would say that you gauge it by looking at the action in the stocks of highflying companies that don't have highflying earnings per share.

They look at the action, say, in Tesla Motors (TSLA) and Netflix (NFLX) and declare it insanely and unsustainably bullish, given that Tesla has rallied 386% and Netflix has galloped 225% since the year began. I get that. While there are many good things happening at Tesla, including strong sales for its new cars, and Netflix has had tremendous success in original content such as "House of Cards" and "Arrested Development," I don't blame a soul for wanting to take profits in either name, as these are cult stocks, and cult stocks don't have a lot of rhyme or reason to them. They are just loved. My hat is off to the Morgan Stanley analyst who nailed Netflix and downgraded it today. What a call....506 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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