Player Avatar SgtGlenn (< 20) Submitted: 1/20/2010 11:50:46 PM : Underperform Start Price: $56.00 BBL Score: +62.83

I feel a little silly giving this one a red thumb, but it is purely a play on market valuation. For the company and its industry, I am all green, baby. However, everybody and their brother feels the same way I do (commodities! China! money!), and this is dangerous, mostly because BBL is a big name in this area.

Currently, it is trading at 32.57 times earnings, compared to a sector average of 17 times.

Investors have overvalued this stock, thanks to its strong cash and management positions. Unfortunately, earnings cannot keep pace with expectations; China is going to put the brakes on its economy, and the rest of the world is still FLAT growth-wise.

Expect this stock to come back to earth soon.

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