3 Stocks I Saw on TV (AAPL, VRX, JCP) (May 13, 2016)
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas to grow OUR money, right? Well good trading takes more that just pushing the buy button, the next morning, on the stocks you saw last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
Going back to Apple ( NASDAQ:AAPL ) here. The reason is pretty simple, David Tepper of Appaloosa Capital Management, the information came out on CNBC on Friday, that they have liquidated all of their holdings in Apple ( NASDAQ:AAPL ). And the reason isn’t important. The level that they reduced isn’t important. What is important is that they cut their Apple ( NASDAQ:AAPL ) stake to zero. Same thing with Carl Ichan. So here’s the deal, and this is just really simple. If you’re just doing a zigzag here, then it’s time to buy Apple ( NASDAQ:AAPL ), right up here. I’m just suggesting not to do that. And the reason is, because the stock is under liquidation. It’s not like it’s any news to anybody any more.
So my bet is, that if this stock starts rallying a bit into the mid 90’s, you’re going to get just that many more shares being liquidated by folks who are buying into the whole value story. So just stay away from Apple ( NASDAQ:AAPL ). Do you short it? You know I had a short on Apple ( NASDAQ:AAPL ) for a while and I got shaken out. I just don’t have the confidence to short a stock that is STILL loved by so many people just because they’re walking all over the place, with their iPhones, bumping into things while they’re texting. Not compelling enough for me.
Now, Valeant Pharmaceuticals ( NYSE:VRX ). Again, David Tepper; the news comes out after the market, that Tepper bought a pretty sizable stake in Valeant Pharmaceuticals ( NYSE:VRX ), which I’m sure made Bill Ackman happy, because Ackman’s got more than you could possibly sell, he’s up to the gills. Then here’s the deal, later on it came out that, “Oh, he’s already sold it.” So this guy was basically day trading, it seemed like to me. Here’s my point: Folks want to buy Valeant ( NYSE:VRX ). How do you stay away from a stock, or at least take it off your radar screen, if it’s gone down 90 percent and it’s in the news all the time?
Here’s my suggestion: If you’re dipping a toe into this thing, you need to keep a stop just below Thursday’s intraday low of 23.55. So what does that put you, if you’re buying the stock right now? Six percent. So give it like a 7 percent stop or something like that. This is a nimble day trade. I wouldn’t make it, to be quite honest with you. But what I’m doing is, I’m just showing you this weekly chart, showing you that this stock could be about $26.00 above support. And I’m not kidding about that. A stock like this, wouldn’t it be nice for Ackman, if this was Herbalife’s ( NYSE:HLF ) chart? But it’s not. So if you’re taking this for a trade, that’s fine. If you want to short it, that’s a tough short.
Okay, JC Penney ( NYSE:JCP ). The CEO was on CNBC talking about the mall stores, the retail department stores. He was saying, “Hey, the buyer is still out there. They’re still spending money. There’s just too many stores. So yes there will be some consolidation, some will shut down, this and that. But the buyer is still out there.” You know that’s a little bit like Tim Cook saying how optimistic he is on China, when everybody else knows it’s not right to be optimist on China. It’s called talking your book. So with the JC Penney ( NYSE:JCP ) guy, let’s look at the weekly chart, this has been banging out a base for quite a while. I don’t see a trade here. I don’t see an investment here.
All you have to do is look at some of these others. JC Penney ( NYSE:JCP ), actually looks like the best of them, Nordstrom ( NYSE:JWN ), Kohl’s ( NYSE:KSS ), we could just go on. How about this one? Coach ( NYSE:COH ). These all of these things are really cratering. I think JC Penney ( NYSE:JCP ), I wouldn’t call it the best of the bunch I would just highlight this. The stock is still trending lower, maybe it’s going to catch some bids here. But if it were me, there’s one retail store I’d buy, Amazon ( NASDAQ:AMZN ), because this is actually where all the folks are that are buying retail stuff; they’re buying it online. Hey, I just spent $200.00 today, and I forget what I bought.
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