3 Stocks I Saw on TV (HPE, CSC, MON) (May 24, 2016)
MON NOV HPE CSC HPE CSC
Every night we watch the same shows, Fast Money and Mad Money, and we want to use those ideas the grow our money. Well good trading takes more than just punching the buy button the next morning, to get the tickers you saw on TV last night. I’m here to help you make money on these 3 stocks I saw on TV.
We’re going to first look at Monsanto ( NYSE:MON ). They received an offer from Bayer for like $122.00 a share (I think it was). I mentioned this just yesterday, to be honest with you I forget if it was in my 3 Stocks video or on my Free Chart of the Day video that I put out. But I had noted that when a stock gaps up, and the offer was clear up here yet this is all the stock traded up to and then it started selling off. That tells you that the market doesn’t believe this offer, there’s something going on. In other words it’s not like free money to you, “Oh, I’ll buy it here and sell it at 122.00.” That’s what this is telling you. Well now this is a different day. The stock traded even on higher volume than it did on Friday when the offer was reported. And it closed up above Friday’s intraday high, 109.37 or within pennies. But it closed at the highest level that it’s closed in quite a while. So now this is a reverse situation, whereas Friday you really have to look at this with a jaundiced eye and be suspicious of that move. But now this stock is higher; I say this is a stock that you want to be a buyer of. It’s risky because if something happens to the deal the stock can fall back to where it was before. But this is a strong company, it’s is a strong stock. I think that this is a deal that you can take right now and you’re probably going to make some pretty good money on it.
Now, Hewlett Packard Enterprise ( NYSE:HPE ). They’re selling their IT department, company, whatever, to Computer Sciences ( NYSE:CSC ), which we’ll look at in just a second. So these guys are now going to focus on data center hardware and software businesses. They sell that stuff to big companies, so they’re a little more streamlined. Meg Whitman, basically the smartest person in any room, no matter what room you’re in, and so this was her decision. I think it’s a good one. So what do you do with the stock? Ultimately I think this pushes thorough 18.50. This is an IPO, or it’s actually a spinoff, but this was the high. Once the stock pushes through 18.50, I think it’s a buy. I don’t think you want to buy it tomorrow. After this kind of move you just want to let it settle in for a few days. BUT, if the stock starts trading above 18.50, in other words to new highs, I think you can buy it.
Now, Computer Sciences ( NYSE:CSC ). Where is this stock trading? Well lets stretch this down clear up here. This is one that you don’t want to buy tomorrow either. Ultimately, sure, why not? But a stock that’s up like 22 percent or whatever it is after hours is not a stock that you want any part of. So with Hewlett Packard Enterprise ( NYSE:HPE ), like I said, if it trades up at a new high, great. Computer Sciences ( NYSE:CSC ), I think you want to just wait on this one. Don’t be buying it at the open. Everybody else will, as far as the people that are probably on the wrong side of the move. The smart money is probably going to be selling into this.
3 Stocks I Saw on TV Free Chart