3 Stocks I Saw on TV (HON, CB, DOW, RTN, LMT)- June 27, 2016
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 pushing the buy button, the next morning, to get the stocks you saw on TV last night. Some of them are good, some of them, not so good. I’m here to help you MAKE money on THESE 3 stocks I saw on TV.
I want to look at the 3 stocks that Carter Worth was discussing on Fast Money, and that’s Chubb ( NYSE:CB ), Honeywell ( NYSE:HON ), and Dow ( NYSE:DOW ). He thinks these are great stocks to buy. They’re outperformers, because of these long-term trendlines, as well as P/E ratios, etcetera, etcetera, and that’s fine.
Chubb ( NYSE:CB ), this is not fast money, it’s not. When you’re looking at a chart like this, and no criticism, it’s just not fast money. When you’re looking at a chart like this, on a weekly chart that goes back multiple years, as my mom used to say when we’d be making much ado about nothing, “Big whoop!” Here’s the trend, I wouldn’t be interested in buying this thing until it came down more, if this was the trade that I’m looking at. Now, when we look at the daily chart you can see this is at a new high. Great on Thursday. Things didn’t work out too well on Friday or today. So from this last high you’ve got a pullback of about 5 percent. I think this needs to come down more before you buy it. And also a 2.23 percent dividend yield doesn’t really get my attention and also insurance, no, it’s not where you want to be. It’s a financial stock, they don’t work.
Dow Chemical ( NYSE:DOW ). We got a similar reading, where supposedly this is a great deal. If you’re looking at fundamentals that’s fine, but I’m not looking at fundamentals, admittedly, not where I’m going. A 3.6 percent yield, that’s good thing, but this stock has been at $50.00 for how long? Basically for over 2 years. For 2 years this stock has been trading right around $50.00. I would be more interested in this if it brokeout and held above $55.00. I’m looking at this and I don’t really see this happening. So far I’m making you money on 2 stocks, don’t buy Chubb ( NYSE:CB ), don’t buy Dow ( NYSE:DOW ).
Now, Honeywell ( NYSE:HON ); look I like the aerospace and defense stocks, Honeywell ( NYSE:HON ) is just not one of my favorites. I would wait to buy this one at lower levels. I would also consider Lockheed Martin ( NYSE:LMT ), which works a little bit better. And, watch this number here, 2.75 versus 2.11, the dividend is better. So you look at Lockheed Martin ( NYSE:LMT ) on a move higher. This isn’t at a great buying opportunity now. It needs to move higher. You need to see a little green bar here, then you buy with a stop just below this level.
Those are how I would play the 3 Stocks I Saw on TV. Plus actually, a couple more, Lockheed Martin ( NYSE:LMT ) and Raytheon ( NYSE:RTN ), either one of those over Honeywell ( NYSE:HON ).
3 Stocks I Saw on TV Free Chart