3 Stocks I Saw On TV ($LNKD, $COP, $CLX) (February 4, 2016)
Every day we watch the same shows, Fast Money, Mad Money, Closing Bell, Opening Bell, Power Lunch, etcetera, etcetera, and they talk about all kinds of stocks. But the deal is I just don’t want to hear about stocks, I want to know how to make money on them. What I’m doing in this series of videos, I’m looking at 3 stocks I saw on TV, and see if we can’t figure out a way how to make money on them. Today we’re going to look at Linkedin ( NYSE:LNKD ), Conoco Phillips ( NYSE:COP ), Clorox ( NYSE:CLX ).
Linkedin ( NYSE:LNKD ). After the bell today reported, lets just say, really dismal results. You can see how the stock traded down after earnings. It looks to me like it’s found some support right around in the mid 130.00s. In my Chart of the Day video I talked about this and about the importance of discipline in after hours trading. But here’s the thing, as I’m looking at this stock right now, I’m seeing about $135.00 handle as support for this stock, that’s clear down here. My bet is, tomorrow, with this kind of decline, almost a 30 percent decline, we’re likely to see SOME kind of snapback rally. So if you’re an intraday trader, if you’re a fast trader, then use that 135.00 level as a reference for stops, seriously like about $135.00. As long as the stock is trading ABOVE that level I think you’re good to go. By the way, if it gaps down further, then start trading it to the upside once it hits that 135.00 level.
Conoco Phillips ( NYSE:COP ). The company cut their dividend. Not good, not a good move for the company, but what happens? We get a big decline, 8.6 percent, but the stock is still above this intraday low of 32.71 here. So could the worst really be already baked into the company? Here’s how you trade this stock: If the stock continues to go lower you’ve got to use this 33.00, I would even tighten it up a little bit, maybe even look at 34.00 as a stop loss on this, if you’re making a new purchase of the stock. But look at the weekly chart. This has been absolutely hammered. Now the thing with these oil and stocks is they’ve gotten hammered, and hammered again, and again and again. I mean it’s just absolutely brutal. So I don’t want you to be too cute with this. BUT, when the company slashes it’s dividend and the stock DOES NOT hit a recent low, that’s probably a pretty good indication that it might be time to buy this stock. So you’re not really buying the stock for the dividend. It’s actually a good thing that they cut the dividend, and that’s what the market’s telling you right now. The reason is, because they need the dough. The oil industry kind of stinks right now and so these companies need their money rather than paying them out in dividends. So it’s not a good thing for the shareholders, but a good thing for the companies. And that’s really where these stocks ultimately trade around, the fortunes of the company. So check out Conoco Phillips ( NYSE:COP ) as a potential buying opportunity.
Now, Clorox ( NYSE:CLX ). Cramer interviewed the CEO on Mad Money after the bell, and the stock is actually up a little bit. Lets take a look at this in after hours trading. Not a lot of shares traded, that’s what happens when the tickers are three letters. But the stock is up a little bit. So here’s the thing: The stock is range bound.Tthis is not a trending stock, it’s just range bound. You can see the 200-day moving average is kind of steadily moving higher, but there have been like two opportunities, actually a few more, to buy this stock on the 200-day moving average. THIS is not that. Instead you’ve got to look at this price level here and that is your current support for the stock. This, frankly, is not a stock for most people. The reason is because it’s trading in a sideways kind of choppy range, 5, 6 percent is all, and it’s got “work to do”. It will likely be trading sideways for quite a while. So if you don’t have the PATIENCE to hold this stock for quite a while, then this is not a stock for you. But IF you do, this is actually the right time to be buying it. Because it is in a trading range, it will probably trade there for a while, but we like to buy low, this is low, this is where you buy. No matter how much patience you have it would kind of stink if you’re buying the stock up here, at the top of the range, then you’re sitting holding it for a couple of months while the stock drifts lower giving you a better entry, had you chosen to take it. So you’re not doing that. Now the stock is down at support. If you are the patient type, that will buy this stock for a 2.3 percent dividend and a mention on Mad Money, then this is your entry. Otherwise you will probably want to take a pass on this and look at other stocks that are going to give you immediate returns.
3 Stocks I Saw on TV Free Chart