Advanced Micro Devices, Inc. (AMD), National Bank of Greece (ADR) (NBG): Are You Waiting For A Pullback?

In my opinion, many of these European banks are so debt-ridden and junked that fundamentals can barely be realized. Thus I say this rally is a “sell,” and believe that a much better play would be the Greece ETF, in which National Bank of Greece (ADR) (NYSE:NBG) makes up 7.2% of the holdings. I’d view this as much safer versus a full investment in a volatile and troubled bank.

An Online Company that Continues to Turn the Page

There’s no one who has been more critical of Travelzoo Inc. (NASDAQ:TZOO) than me. I have often used Travelzoo Inc. (NASDAQ:TZOO) as an example of “misleading management” following Ralph Bartel’s 2.5 million share sell for an average price of $75. However, after a year of flat trading, and two surprising quarters, I said back on April 23 that it is very possible that Travelzoo has turned the page.

The company grew 5% year-over-year in Q4 and then 7% in Q1, showing an acceleration of growth. The company continues to grow in both North America and Europe with a large subscriber base. With that said, the stock has rallied almost 40% since the day prior to Q1 earnings (April 17), and is what I consider fairly valued with a P/E ratio of 23.0. Therefore, I believe that TZOO is a “hold.” I think the company is making progress and that significant upside could be created if this progress is sustainable. The big question is regarding the company’s sustainability, and unfortunately, it is a question that no one knows an answer.

Conclusion

Each of these companies has seen large increases in valuation over the last few weeks and has done so under the radar. I have given my outlook for each, however I suggest further due diligence by those who may be interested in an investment, as such stocks have a tendency of producing continued gains as new investors begin to notice the performance.

The article Controversial Stocks Trade Higher: Buy, Hold, or Sell? originally appeared on Fool.com and is written by Brian Nichols.

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