Meredith Whitney is bullish on Discover Financial (DFS). Here’s the technical take. (March 18, 2013)
DFS
I’m Dan Fitzpatrick at StockMarketMentor.com on Monday, March 18th. In this video I want to look at Discover Financial Services ( $DFS Discover Financial Services ). The reason is because I wished I’d bought it back here at $38.00, but I didn’t. Meredith Whitney was talking with Maria Bartiromo on the “Closing Bell” on Monday and she was saying that this stock has like, you know, she thinks 30 percent upside this year. I really respect her a lot as an analyst; I think as a market timer, have I mentioned that she’s a good analyst? So I don’t really care about her take on where the stock would be going. But I care a lot about her take on the fundamentals of the company, and she thinks it’s really, really undervalued. Well traders have been vindicating that position; they’ve been buying this stock. Now you might think that this is way too late to buy this stock, you can see, that’s a breakout, a bona fide breakout; it’s had a heck of a run from the low up to the breakout point. So you’d think, well after this kind of move the stocks got to rest a little bit; it didn’t rest, only for a day and then it’s continued. So this stock has a ways to go. As a trade, not really my interest, but as a longer-term investment, as a holding, this is just getting started. Again, I have great respect for Meredith Whitney’s fundamental take on bank stocks, on credit stocks, this is one of them and so if she thinks it’s undervalued, fine, then I look at the chart and I see this kind of chart, I think, I love Meredith, and I love the stock, and so if you’ve got a longer term time horizon, Discover ( $DFS Discover Financial Services ) is a stock I think that you can own, you’re going to make money on it over the next few months, I would also continue to be buying it on any kind of dips. Okay, now members get over to the Strategy Session; one of the stocks I’m going to be covering is Questcor ( $QCOR Questcor Pharmaceuticals Inc ) which is that heavily shorted stock that I mentioned in this venue last week; so we’ll see you there. Free Chart