3 Stocks I Saw on TV – AAPL, WTW, LMT (January 26, 2016)
Today, another 3 Stocks I Saw on TV. An interesting week, and so today I want to look at Apple ( NASDAQ:AAPL ), Weight Watchers ( NYSE:WTW ), and Lockheed Martin ( NYSE:LMT ).
First, everybody’s been waiting for Apple ( NASDAQ:AAPL ) to release they’re earnings and if you haven’t heard what happened you may be looking at this chart saying, “Okay, well why are you doing this before they report their earnings Dan?” Well, I’m doing this AFTER they reported their earnings. I want to look at the 1-minute chart. The first move is always the wrong one. I mean, seriously, here, we get a little sell-off into it but this was just somebody making a bet, frankly, not that much trading going on. And then a big rebound to the upside because, “Oh, they beat their earnings.” Well, a lot of people don’t particularly care about earnings. What they really want to see is revenues. Because a company can massage their earnings, write certain things off, push things back, pull things forward, fire people, that type thing. There’s a lot of different ways you can massage your earnings around to beat the number.
But what’s most important is, what are your sales? Are you bringing in money? Forget for a moment how much you’re keeping, of course that matters, but are you bringing in money? Because if you’re not GROWING your sales, sooner or later you’re going to have big problems. So that’s, in my view, why Apple ( NASDAQ:AAPL ) is kind of trading sideways, sideways to down. Look, they beat in earnings, I think it’s going to take people a while to figure out that earnings aren’t really as important as sales. And I think there are still a lot of “Appleonians” out there, who just think that Apple ( NASDAQ:AAPL ) is just the greatest thing since sliced bread; and that’s why it’s just basically trading sideways. But the thing that was most meaningful to me, though to be honest I’m not even really sure which way this thing cuts, they had a 14 percent jump in China on their first quarter revenue versus last year. So China is the “big dog”, right? I don’t really, frankly, know whether 14 percent revenue growth is that big a deal. Not when China is where the future supposedly lies.
So here’s my sense: This is a triple top here, this is just like some kind of deformed head and shoulder pattern. You can draw the head anyway you want, I’ll say here’s a shoulder, and look at that, a nice little head (this is a new pattern that I’m just inventing), and this is the right shoulder. Forget about this, everything fell that day. Just draw a line right through here, it’s at 105.00, right? So we’ve got 135.00 on the upside, that’s 30 points from 105.00. You break this thing down, 105.00 minus 30 points gives you 75.00, right? Did I do my math right? I think I did. Ultimately (and seriously), I could see Apple ( NASDAQ:AAPL ) going down there. The only reason it wouldn’t is because if they have more that $75.00 of cash per share, and I don’t know what that number is, but I’m telling you, this is a stock that, if there’s no real reason to buy it, and people AREN’T, investors aren’t finding a reason to buy it in the after hours. If there’s no reason to buy it, then you’re going to find money going elsewhere. And that’s about as far from the tree as the apple is going to fall (I don’t even know what that meant).
Weight Watchers ( NYSE:WTW ). It turns out that Oprah has lost like 28 pounds, or something like that, basically since she did a deal with Weight Watchers ( NYSE:WTW ) to lose weight, and that jumped the stock way up here. So here’s the thing, I think this is important; look, Oprah is like a yo-yo, she’s going to gain that weight back, she always does. Do you know why? Because she’s a person. And that’s what happens with people with weight issues, and I’m one of them. You lose it, you gain it, you lose it, you gain it. What’s important here is the stock fell back to $11.00. The 200-day moving average, right at the top of this gap, and it did not fill the gap. So this is a stock, frankly, that I think you can buy. It’s going to be a high maintenance stock. It will be a high maintenance stock. Look at the rip today, this was a big, big move in a big way. But I think, frankly, there’s probably a bit more upside in it.
And then finally, we’ll look at Lockheed Martin ( NYSE:LMT ). They reported earnings; investors didn’t really like it much because the stock fell almost 5 percent here. They also reported that they’re separating their government IT department and going to form it with another company. I forget the name of the company and it doesn’t matter, and you don’t care unless you work for Lockheed Martin ( NYSE:LMT ), in which case you already know the name of the company. The reason I wanted to show you this was, this stock came down to $200.00 and held. This was a GREAT, what we call at Stock Market Mentor, a 59-minute trade. Where you basically trade the move during the first hour of trading, or the first 59-minutes of trading, or a fraction thereof. And this was a great opportunity to do that on a downside dislocation. You see the first minute the stock hit the low. I think Lockheed Martin ( NYSE:LMT ), frankly, the fact that it’s just barely down a little bit from where it was yesterday, I think this support level here at the 200-day moving average is holding. This is not a momentum stock. It’s an aerospace company with a 3 percent dividend, that should probably have a place in your portfolio.
3 Stocks I Saw on TV Free Chart