3 Stocks I Saw on TV: SBUX, BA, SLB (January 21, 2016)
SBUX XOP
These are 3 stocks that I saw on TV today, I want you to check them out. We’re going to look at Starbucks ( NASDAQ:SBUX ), Boeing ( NYSE:BA ), and Schlumberger ( NYSE:SLB ). First of all Starbucks ( NASDAQ:SBUX ), they reported earning after the bell and you could see where the stock’s trading down to. Now it’s still above this 200-day moving average. But here’s the deal, the company didn’t give particularly optimistic guidance. They also missed slightly on their revenue. That’s, as they say, “the top line number,” how much money did they take in, in sales. It’s not a big deal at all but I just look at the technical pattern of the stock. It’s not down enough to where it’s going to be a compelling buy for value managers who are waiting for a big pullback so they could buy the stock. That was this. So what is it, like 2 or 3 percent, something like that, almost 4 percent. Give it a 10 percent pullback and maybe it’s going to find some support somewhere. This is really important, this is NOT a momentum stock, you need to take this off of your momentum stock list. This was back then, THIS was a momentum stock THERE. But HERE, not so much. This is now just a “drifty,” sideways stock, kind of a halfway value stock, I guess. If you’re looking for that kind of thing I like coffee, doesn’t have the be Starbucks ( NASDAQ:SBUX ). I like stocks, and it doesn’t have to be Starbucks ( NASDAQ:SBUX ) either; I think you just kind of stay away from it, that’s really it. The best trade here, in my view, is no trade.
Now, Boeing ( NYSE:BA ). This is going to be interesting, they issued a warning after hours. You could see the stock is down a bit; they’re going to be making fewer 747s than they had previously projected. Those are big planes, and they sell those for a lot more money than Radio Shack sells drones. So that’s a big deal for them, it’s kind of a big bummer. But here’s the thing, with Boeing ( NYSE:BA ) you’re probably going to see all of that factored into the stock price tomorrow. What I would suggest doing is this: if you’re interested in buying Boeing ( NYSE:BA ) know that the stock is a choppy stock on the weekly chart, 3.5 percent dividend, I guess that’s fine, but you’ve got to be buying it right. If the stock trades below yesterday’s, that’s Wednesday’s, intraday low of 119.82, so basically 120.00. If it trades BELOW this 120.00 level tomorrow, then you really don’t want to be long this stock. On the other hand, it’s already pretty oversold here, on the other hand if the stock stays ABOVE this intraday low yesterday, you can be buying this stock actually looking for more upside. And think of it this way, “Wow! I missed my entry on Wednesday when the stock looks like it bottomed out. But this warning, this pullback, gives me a second chance at that.” But I will say it again, if the stock trades BELOW Wednesday’s intraday low, this is a trade that you DON’T want to make. Because it’s kind of a big deal when a plane manufacturer says they’re not going to be making as many planes as they forecast. Color me crazy, but it’s just not particularly good news.
Then the last thing is Schlumberger ( NYSE:SLB ) here. The company has 10 billion bucks and their going to be buying their own shares with it. A 10 BILLION dollar buyback, that’s a huge buyback. You look at so many of these other oil stocks that were up today, maybe this is a low for Schlumberger ( NYSE:SLB ). I look at it as, I’d say a moderate buy. Because they report this and the stock’s up a little bit after hours, not a big deal. And the way this stock is trading, 64.00 maybe 65.00 tops, is what I’m talking about. Here’s the thing, if you’re a money manager you’re in themes, not in specifics, well some of you guys are in specific stocks, but you’d be better off if you were in themes. “Oh, I like technology.” Which are the technology companies I like to buy? “Oh, I like the restaurant sector or the retail sector.” Which stocks do I want to buy there? So here, “Oh, I like energy, I like the energy sector.” Which stocks do I want to buy in the energy sector? Dude, you can find 20 stocks that are better buys than Schlumberger ( NYSE:SLB ). Look at about any stock in the XOP and you’ll find plenty. Seriously, this is really where you want to be, is in this particular sector. Schlumberger ( NYSE:SLB ), probably get a juice out of it, the dividend is okay, but generally speaking this has probably marked some kind of a bottom here, but I don’t know for how long, and I don’t know how big the rebound is going to be. But in some of the other oil names in the XOP, I think you’re going to get bigger, or cheaper.
3 Stocks I Saw on TV Free Chart