Overpriced stocks are a matter of opinion. What makes a stock overpriced or overvalued is a function of when everyone piles in and the price gets pushed higher and higher.

Sometimes, people ride the trend higher. Momentum traders will pile in on a stock with trailing stops until they get pushed off a stock. I always prefer to stay away until it gets to that point of ridiculous, then I enjoy watching and profiting at it crashes down to reality.

Stocks I have put in this category in the past included, RIMM from $120 down to $40. POT from $230 down to $54, FSLR $300 to $125 and STRA from $258 down to $119.

These stocks all dropped FAST when they went. I didn't catch them all perfectly, but they ALL did drop HARD eventually. I have no doubt that my current picks will see major drops cutting them in half eventually. NFLX, AMZN and TSLA just to name a few.