3 Stocks I Saw on TV: SWHC, KR, COST (March 3, 2016)
SWHC KR RAK.V RAI KR COST
Look, every day we watch CNBC. We see a boatload of tickers paraded around in front of us, from Squawk on the Street, Opening Bell, Power Lunch, Closing Bell, whatever else is in between. Fast Money Halftime Report, Fast Money, Mad Money; tons of tickers. I’m going to look at 3 stocks that I saw on TV today, and lets see if we can’t make you some money.
First of all, Smith & Wesson ( NASDAQ:SWHC ). This is my favorite gun stock because it’s one of the only two that I know of that are trading. The company reported earnings after the bell. Huge!. There were estimates by the analysts for 174 million, I think it was, in sales. Well instead they printed like 211 million, so I would say that was kind of a beat. The bottom line is, people want to buy guns. They want to buy them for a bunch of different reasons. One of the bigger ones is frankly, I’m not getting political here it’s just the way it is, one of the bigger ones is because they’re concerned that maybe they’re not going to be able to later. So it’s not just a fear thing, or a Second Amendment, I’m going to exercise my Second Amendment. It’s just a lot of different reasons why people are buying these guns. And so make some money off of it. You can be a Second Amendment advocate, a gun owner, I advocate that kind of stuff. It’s just shooting that’s kind of tougher.
You can be that guy, make money off these stocks. You can be an anti-gun, where you think the only person who should have a gun is you when you’re standing around in a room full of bad guys. Whatever. You can still make money on this too. You should be long this stock, it’s in a really nice uptrend. But with that said, what do you do tomorrow morning? I know a lot of people in our trading forum at Stock Market Mentor were long this stock into earnings and saying, “Well now what do I do?” I would say this, I would say you sell into some of this strength tomorrow morning. Even though the earnings were great, the stock has already rallied up 25 percent, really off of this bottom. And so I think you’re going to see a little selling into strength tomorrow. But I wouldn’t dump everything. I wouldn’t dump everything. I would take a little money off the table. Take some profits and then let the rest run for a while. This will be oscillating around tomorrow. You can see, it does that. But ultimately the stocks going higher. I just think you want to sell a little bit into this.
Okay now, Kroger ( NYSE:KR ). They missed their same store sales targets, or what I call the triple “S” targets. So the stock dumped down right on the 200-day moving average. Huge, massive volume. They were talking about it on Fast Money. Here’s my take: Don’t buy this stock. The dividend they pay, they should just keep the money. Who cares about a 1 percent dividend? Dude, go buy some more Twinkies and put them on the shelves. Don’t buy this stock. It’s been drifting sideways forever. You can find any number of stocks that pay a higher dividend, that have a better chart than this. Hey! Just one right off the top of my head, Reynolds American ( NYSE:RAI ). It’s not volatile, it pays three times the dividend that Kroger ( NYSE:KR ) does. You can find a lot of Reynolds ( NYSE:RAI ) products in Kroger Grocery Stores. So the bottom line on Kroger ( NYSE:KR ) is: The stock is down in a trading range. If you want to buy this stock now, great. If you’re interested in buying it this is the time. I’m just saying, don’t be interested in buying it. But IF you are, this is your trading range. So you’re buying it at 37.80, you know what? Sell it at $40.00, 40.50 and then turn around and do it again, and again, and again. That’s the kind of trading that would bore me to tears or to sleep. But if that’s your trade, if that’s how you like to trade, Kroger ( NYSE:KR ) is your guy.
Now, Costco ( NASDAQ:COST ), they also took a hit. The same reason really. The stock actually closed strong today, relative to the open. But I’ll say here as well, they don’t really pay a dividend, the stock has just been drifting sideways lately. You could get a little capital appreciation, but it’s just not really where you want to be right now. You’ll have plenty of opportunities to buy this stock at 150.00, 160.00, or lower in the days and weeks to come. So why go there right now? Save your money. Put it to good use someplace else. Or if nothing else go to Costco’s and buy some of those big, huge tubs of cashews, those are the ones I always like.
3 Stocks I Saw on TV Free Chart