BOSTON (Dow Jones) -- Paul Larson, editor of the Morningstar StockInvestor newsletter, says that "even the most fantastic business in the world can be a sell if it is selling at too high a valuation."

In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Larson suggested that investors should be looking not only for good values, but for enough room to grow so that potential returns are sufficient given the risks. Larson said investors should "expect above-average returns for taking above- average risk."

During his interview, Larson said that eBay (NASDAQ-NMS:EBAY) ( EBAY (NASDAQ-NMS:EBAY) ) , Fastenal (NASDAQ-NMS:FAST) (FAST) and Waste Management (WMI) are buys, with San Juan Basin Royalty Trust (NYSE:SJT) (SJT) and Transocean (RIG) being stocks where he would fold a position and move along.

In another interview, Greg McBride, senior financial analyst for BankRate.com, said that homeowners should worry less about the perceived real estate bubble if they are not planning to make a move any time soon. While conventional wisdom holds that homeowners might want to scale back home improvements during times when the market does not reward them, McBride suggested that living a better life in the home is reward enough.

Listen to the highlights from Your Money with Chuck Jaffe.

Jaffe's radio interviews feature reviews of stocks and mutual funds suggested by MarketWatch readers. To request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you toChuck Jaffe.

    (END) Dow Jones Newswires   05-02-07 1537   Copyright (c) 2007 Dow Jones & Company, Inc.