3 Stocks I Saw on TV (PLAY TWTR HPE). (June 07, 2016)
PLAY TWTR HPE
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas the grow OUR money, right? Well good trading takes more than just pushing the buy button, the next morning, to get the stocks you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV. Today WE are going to look at Dave & Buster’s ( NASDAQ:PLAY ), Twitter ( NYSE:TWTR ), and then Hewlett Packard Enterprise ( NYSE:HPE ).
First Dave & Buster’s, PLAY, ( NASDAQ:PLAY ). The company reported great earnings. As I do this the stock is now trading at $44.00. Here’s the deal: This is what the stock looks like, all-time highs baby. I think this stock ultimately moves higher. It’s coming out of a base, it’s been around forever, over 9 months. So when a stock does this, this really clears out all resistance and should just start moving higher from here. You’re going to see huge volume on this tomorrow. I would be careful about chasing a stock that’s up this much, it’s up over 5 percent. Think about it this way, are you going to get in ahead of everybody else and buy? “Oh, I’ve got to get it right away.” Everybody already knows about this, so the great earnings are going to be factored into this at like 9:31 in the morning. So I would suggest watching it. If you want to take a little bit of stock, if you want to start a position, that’s fine. But only starting a position, because typically stocks that breakout like this, ultimately they come back to test those breakouts. That’s when you can be buying more stock. When you see it testing the breakout level, and you see it PASSING that test, you want to look to take some more stock then.
Okay, Twitter ( NYSE:TWTR ). They were talking about this on Fast Money. One guy, I forget his name and it’s really not important, talking about the potential for somebody to buy Twitter ( NYSE:TWTR ). I’m sure everybody’s tweeting about it. He’s looking at the fundamentals and he feels like, “Okay, if you want to buy this stock on the idea that somebody’s going to buy it.” He felt like the downside risk is like $12.00, just from a valuation standpoint. So he’s looking at it as being very speculative. What’s the risk? What’s the reward? You’ve got Verizon ( NYSE:VZ ) bidding on Yahoo ( NASDAQ:YHOO ). Marissa Mayer can get on with her life and do something useful. So $3.00, is that worth it to be buying Twitter ( NYSE:TWTR )? I would just say no. And this is why: One thing that Cramer has said for years, and I get it, I agree, don’t buy something just on the idea that it might be acquired. Frankly, that’s a stupid thing to do. If you have inside information and you know a company is about to be acquired, you’re not supposed to be trading on it anyway. So I’m looking at this and it’s got $3.00 of downside risk, according to this person. That’s $3.00 that I don’t want to take, because a $15.00 stock, take $3.00 down, that’s 20 percent.
Then the last one here is Hewlett Packard Enterprise ( NYSE:HPE ). Cramer was talking to Meg Whitman on Mad Money about this. He’s making a case, and she’s making a case, that this is a really good value stock. That this is a company that you should be invested in. I agree with that, I’m talking just about the technicals. This is a stock that printed a new high here on April 1st, closing high. After pulling back, it was a fairly deep pullback, 15 percent, is now, just yesterday, ABOVE this last high. So you’ve got an IPO, just started trading last November, you’ve got an IPO that is printing all-time highs. This fits my pattern that I look for to a T. IPO’s that are hitting new highs after these pullbacks, I want to be long these stocks. I think this is one stock that you want to be long. I think it works.
3 Stocks I Saw on TV Free Chart