3 Stocks I Saw on TV (VRX, SKT, SPG, IDTI) (May 9, 2016)
Every night we watch the same shows, Fast Money and Mad Money, and we want use those ideas to grow our money. Well good trading takes more than just pushing the buy button, every morning, on the stocks that you saw on TV last night. I’m here to help you make money on these 3 stocks that I saw on TV.
We’re going to look, today, at Valeant Pharmaceuticals ( NYSE:VRX ). Here’s how you make money on this stock, don’t buy it. Cramer interviewed the CEO of Valeant ( NYSE:VRX ) last night (Monday), on Mad Money. Even before the interview Cramer said, “This stock isn’t done going down.” I’ve got to agree. The issue that you have got to deal with is shorting the stock, is that the right thing to do? It’s kind of a crowded trade; but this is the deal: The first thing you’ve got to do is worry about capital preservation. That means, not buying this stock just because it’s coming down to 25.00. Don’t do that.
Instead, stand aside, but also know that if you are going to short this stock, you can do this because it is actually just coming out of a volatility squeeze. Just keep a fairly tight trailing stop; because if we take out this mess, you just kind of look at this, it was actually trading in a fairly tight range, just in a downtrend. We like this if we’re short. Here, again, take out this mess over here, the stock has just been trading sideways for a while. So it’s not like a super volatile, volatile stock. But any positive news could cause a lot of shorts to cover. Today the stock traded as high as $31.00, so if you’re shorting this stock now you would literally keep a buy stop a little bit above $31.00. Because if the stock starts rebounding back up into here, you don’t want to be short this stock. So that’s really your plan on Valeant ( NYSE:VRX ). Just keep a tight stop on that; and do not buy that stock.
Tanger ( NYSE:SKT ); Cramer was also talking about some of the retail REIT’s, the shopping mall stuff. He’s really bullish on Tanger ( NYSE:SKT ). He thinks that the stock works. He thinks the industry works better than a lot of people think. I’m just looking at the weekly chart, I’m looking at a 3.6 dividend yield, sideways trading range, it seems like forever. This is in a really high base. This, frankly, wouldn’t be my choice right now, you would be buying it for the yield. Because again, it’s in a sideways trading range. It would have been nice to have it here because it’s close to resistance here, just doesn’t really turn me on. But if you look at Simon Property ( NYSE:SPG ), that’s a different deal. The yield isn’t quite so high, but looks what’s happening, the stock is breaking out. You look at it on the weekly chart, sideways range up until recently when the stock is already broken out. So I would take Simon Property Group ( NYSE:SPG ) over Tanger ( NYSE:SKT ) any day.
Then finally, one other thing that I wanted to cover, I guess we’ll change this to 4 Stocks I Saw on TV, Integrated Device ( NASDAQ:IDTI ). Cramer had the CEO of the company on Mad Money. And I’m just looking at the chart, frankly, I don’t really see anything here. I would rather be buying this stock above $22.00, than I would where it is right now. Because at least then I would have a pretty good sense that the stock was going to be back in an uptrend. But as long as it’s well below the 200-day moving average, it’s just not where I want to be.
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