For the best trade on FireEye (FEYE), zoom out. (June 06, 2015)
I want to look at FireEye ( NASDAQ:FEYE ). The cyber security industry has been going off the charts, literally off the upper right hand corner of the chart. I really honestly think that these stocks are just getting going. Look at FireEye ( NASDAQ:FEYE ), which is my favorite in the industry, because this is my favorite chart.
The stock had been up to $100.00 back in early 2014. Right? So a little over a year ago, and has been consolidating for how long? It’s been consolidating for almost 10 months, since it hit bottom. So this is a big, solid, strong base in a really solid, strong industry and the fundamentals are not out of whack in this company.
This is NOT an expensive stock, not when you consider how fast the company is growing and how fast the industry is growing, I’m telling you. And so when you look at this and say, “Wow! The stock, it’s up from the bottom, it’s come up here how far? Let’s do the math, it’s 23 percent, I can’t buy this now.” Well if you look at it in this timeframe I think you can certainly buy it now.
The weekly chart, I already own a slug of it but I think you can certainly buy it now. Do you know what? I may buy more next week just because I can. The stock is moving higher. As always I will tell you, keep a stop, don’t go crazy on me, because if the stock happens to tank to $30.00 because suddenly everybody’s found a simple whiz bang way of stopping hacking, don’t tell me that you’ve lost all your money. By the way what do you think the chances are?
So the stock works, the company works, the industry works. If you’re not long this stock consider taking some even here, as long, and listen to me now, as long as it is not for a trade. This is not a trading stock; this is an owning stock. Frankly, I’ll say it, ditch you’re Apple ( NASDAQ:AAPL ) and buy FireEye ( NASDAQ:FEYE ).
I hear everybody say, and I’ve said it before too, Apple’s ( NASDAQ:AAPL ) a stock to own not to trade. But given a choice between the two I would rather have my money in FireEye ( NASDAQ:FEYE ) than Apple ( NASDAQ:AAPL ) simply because FireEye ( NASDAQ:FEYE ) has a higher growth prospect and I don’t really care what Carl the “Tweet” Icahn says.
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