3 Stocks I Saw on TV: NFLX, FEYE, BAC (January 20, 2016)

by DAN
I want to talk about 3 stocks I saw on TV today. We’re going to look at Netflix ( NASDAQ:NFLX ), FireEye ( NASDAQ:FEYE ), and Bank of America ( NYSE:BAC ). First of all Netflix ( NASDAQ:NFLX ). The company reported earnings last night, after hours, and the stock was up quite a bit. Leading all those gamblers who bought the stock in anticipation of riches, leading them to cheer, and just could not wait to sell it when the market opened up this morning. And low and behold the stock was basically flat. It was up a little bit and then it traded down with JUST about everything else except the Inverse ETF’s. There was a real bloodbath today, but it ended well.

Here’s my point on Netflix ( NASDAQ:NFLX ): The catalyst for the stock moving higher has pretty much came and went and that was earnings. So with that I just pretty much rely on technicals again. I think this is an important low, $97.00. The fact that the stock traded back up above not just 100 but also the 200-day moving average, is very meaningful to me. I don’t think you’ve got to rush out, “Oh my gosh! It’s my one chance to buy Netflix at 107.74.” I don’t think you’ve got to be doing that. But I think that you should be looking at this level as a support level that’s likely going to hold.

Apparently subscriber growth is still growing but slowing a bit in the U.S., from what I understand. But I only look at that stuff to a small extent, I really want to see how the stock trades in REACTION to news, not so much even what the news is. But if we look here on a weekly chart, you can see, sideways trading range for quite a while. A heck of a dividend, oh that’s right, they don’t pay one. The stock is trading sideways. I would be taking some stocks now, at least selling some puts on it. But then when the stock breaks out above 130.00, that’s when I want you to be ADDING to a position, not taking an initial position.

FireEye ( NASDAQ:FEYE ). So many stocks are just kind of done going down until they resume their downtrend, which is not going to be tomorrow. Maybe it’s next week, maybe it’s two weeks. The reason the stock is up after hours is because they gave inline guidance, and then they also reported that they’re buying a company called iSIGHT. No it’s not an Apple product and it’s not e-y-e-s-i-g-h-t, it is a global cyber monitoring company. Anyway, they’re buying that, inline guidance, the stock is up. I don’t know how far up the stock is going to go but I would imagine this is the low, lets just put it that way. A lot of these Cyber Security stocks are so oversold that they’re just totally ripe for a rebound. You look at the HACK Index, it’s an ETF for these Cyber Security firms, this is also oversold.

So we look at FireEye ( NASDAQ:FEYE ), I’m looking for a little more upside here. I can’t say whether this is the bottom that is ultimately going to turn out to be THE bottom. But they gave inline guidance (and this should tell you something), they gave you inline guidance and the stock is up. That will tell you how much pessimism there IS and has been around these companies. The sentiment around this company is so bad that even when the company says, “Hey, you know what? What we had before, what we had estimated, that’s really about all we’ve got.” People buy the stock because they think, “Well, I thought it was going to be WORSE than what you were telling us. So thanks very much, we’ll go ahead and take that stock.” I think you can buy some of this stock here.

Then the last one is Bank of America ( NYSE:BAC ). This isn’t ugly, this is “fugly”. This is just a really nasty, chaotic looking chart. Seriously, you wouldn’t even have to be a trader if all you did was trade Bank of America ( NYSE:BAC ), just buy in this box and sell in this box and it’s all good. Well now the stock’s fallen out to the downside. So what’s our next move? They reported earnings yesterday, I think before the open, and the stock seemed to do okay, all the way up until the time that it didn’t. Now, I would say this is oversold, looking for a rebound, maybe at least $1.00, that’s all.

But you look at the volume on this stock, it’s MASSIVE today, just MASSIVE. But you look at the weekly chart, this is a stock that’s been trading sideways it seems like forever. Now it’s pouring out the bottom end of the garden hose. Short-term, yes, take Bank of America ( NYSE:BAC ) for a little ride here. But it’s not sporting a dividend that’s even CLOSE to making this an attractive stock for you to hold. If you’re looking for just some dividend paying stock to hold, go for one of the energy names (can’t believe I’m saying this), Chevron ( NYSE:CVX ), with a 5.4 percent dividend. I would hold THAT over Bank of America ( NYSE:BAC ). Yes, there I said it, I did, I said it.

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