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cheap or expensive sell sell sell in this market that's what you need to ask yourself when you're looking at a stock with a incredibly low price to earnings or p/e multiple so many talking heads particularly those who sat out this amazing bull run well they feel the need to tell you how expensive this market is they're typically looking at the price of turn these multiples of stocks like Church and white or coca-cola quarks which you covered earlier or they go even bigger and they say hey Kramer family fav octa workday service now Koopa z scalar ringcentral Zendesk to name some that come to mind instantly I respect that about taking those stocks you're cheap they're very expensive right now you can find a tremendous number of household names that aren't expensive at all in fact their total volumes as long as we don't have a recession and then all bets are off for some of these first the automakers Ford sells for six times next year's earnings Jim five that's so cheap it's frightening when you see this kind of ultra-low multiple tells you that investors believe we're headed for a recession plain and simple perhaps within a couple of quarters we get a recession the earnings will fall apart and these thoughts will firm it'll be a lot more expensive than they currently look enforced case also its dividend bountiful six point eight percent would be presumed to be cut that high yield is another warning sign telling you something's got to give if there's no recession for GM could easily be great visor so are they cheap or are they expensive too hard to tell at least for now they could be the ultimate value traps another example is micron the commodity chip maker I've said over and over again that microns the key to the set to this tech market because it reported really good quarter but then it gave disappointing guidance for the next quarter I'll be it not for the full year company has two gigantic buyback which clearly kicked in when the stock pulled back to the low 40s earlier this week right now microns trading it's just seven times next year's earnings estimates just like with Ford and GM that means Wall Street believes the estimates are too high this point money says the Ernie's won't collapse in 2020 I'm not so sure I think you can start building a positioner every time it goes below 40 41 but the stock might pull back even a little high 30s and then just gotta buy more what how about this Goldman Sachs from Wells Fargo are at 8 and 11 times next year's Bernie's respectively now that's incredible Goldman's the premier investment bank at least if you're still trying to get a job invest baggie well it's also the bank behind the applecart even if Apple and its advertising says there's no bag behind the card technically they're right in reality though I think it's a multi-billion dollar business for Goldman maybe worth as much as high single digit billions by next year at this time either way eight times earnings is an awfully little more home that's one of the reasons why my child with trust owns the stock you can follow along why I do by subscribing to the action ores plus.com Club Wells Fargo used to be the best run back in America now it's anything but however they just got a new CEO Charlie shortly a visa and Bank of New York who's known for his love of technology his discipline and expense control if you ask me those are the three things Wells has been the worst at I think both of these cheap bank stocks could be huge by the end of the year yes I think they're gonna go higher certainly into next year now finally there's the retailers these are tough Cole sells for nine times earnings they shoe salesmen five times earnings Kohl's has a 5.7 percent yield Macy's has a ridiculous ten for safety again both stocks are trading like we're going into a recession if not in the case of Macy's a retail brick-and-mortar Depression I think the market is judging all these stocks way too harshly those valuations are right if the economy's about to fall foot but they're very wrong if business is just going to be okay it's dealer's choice people you're the dealer stick with print oo tch cnbc.com you
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