3 Stocks I Saw on TV: TSLA, EW, AAPL (April 4, 2016)
TSLA EW AAPL
Every night we watch the same shows, Fast Money and Mad Money, but we want to use those ideas to make OUR money, right? That’s what really counts. Well good trading takes more than pushing the buy button every morning on the ticker that you saw on TV yesterday. I’m here to talk about 3 stocks that I saw on TV. Lets see if we can make a little money.
First of all Tesla ( NASDAQ:TSLA ). The company was up this morning. It was up on Friday. But you can see that it traded DOWN from the open on both of these days. The reason the stock was up was they reported that they had like 276,000 orders for the Model 3. Here’s the problem: They delivered 17,000 cars during the last quarter of 2015. They delivered about 50,000 cars last year. So they’ve got 276,000 orders and nobody pays them anything except a refundable deposit before they actually get their car. So there’s going to be a LONG time between now and when the company actually starts making that money. That’s okay, everybody knows that. But there’s a reason why these little blue hashtags are down here; because the stock is down after hours. They reported that in the first quarter of 2016 here, it ended last week, they delivered 12,420. That’s a low delivery count.
This is a problem for a company that only makes money when they actually deliver a car. So you can have all the demand in the world, but if you’re not actually able to give something to your customers in return for their bucks, you’re not going to make too many. They’ve also got Model X parts shortages, so that hampers their revenue. The bottom line is this: I think from a short-term basis; on a short-term basis this stock hit a high here today at $250.00. I’m not really sure what the next catalyst will be that will push this stock higher. It’s going to be a while before the company reports earnings. Who know where the stock is going to be then, so I’m not even going to offer conjecture. I just know this: Since this bottom the stock has gone up 75 percent or so, that’s a big run. If you’re long Tesla ( NASDAQ:TSLA ) I would really suggest selling into this. It’s not too late to take profits. I don’t think it’s too early to take profits. This is kind of an ominous move after hours, because it really reverses the entire Friday/Monday run.
Now, Edwards Lifesciences ( NYSE:EW ). This stock popped today on news that its heart valve implant, which isn’t as invasive as heart surgery, that it actually outperformed that in a big study. So this is a good breakout. If you look at the weekly chart the stock has been in an uptrend for a long time. We could even say this could definitely be a blow-off top. Or it could be a continuation gap, where this uptrend just continues to move. So here’s what you want to do here: The low of the day here was $100.90, but I’m going to call it 100.00. If this stock falls below $100.00 then I want you to be selling this stock. Because what this is telling you is that all the buyers are in on this news, now they’re taking profits. If the stock stays above that level then I want you to stay long this stock. This is NOT something that the market has really anticipated. You can’t tell me that it has, because if the market anticipated those kind of results the stock wouldn’t be up 17 percent. It wouldn’t have been up a lot more than that intraday. So this is a market surprise and that means you could see buying here for a while. I just want you to keep a protective stop.
And then the last one here is Apple ( NASDAQ:AAPL ). They report earnings on April 25th. A Credit Suisse analyst predicted that they’re going to double their earning on services, which is iCloud, Apple Music, Apple Pay, that type thing. So the stock has gapped up a bit on Monday here, but it’s still pushing right up against it’s 200-day moving average. A little bit of a move here, that was fine on a generally weak day. So what I would suggest doing here is, if you’re bullish on Apple ( NASDAQ:AAPL ), and I’ve got to admit I’m really not. Part of the reason is because my iPhone is all screwed up and I’ve got to make an appointment at the “genius bar” to get it fixed. And guess what? There will be one genius there at most, and it’s not going to be me, and if it’s not the other guy there’s going to be a real problem there. But if you are bullish on Apple ( NASDAQ:AAPL ) trade the breakout. If the stock starts trading above the 200-day moving average then this is a stock that you want to be long. If it stays below there, guess what? Wait for it to start trading above there.
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