3 Stocks I Saw on TV (STZ, KHC, WWAV)- June 30, 2016
STZ KHC WWAV
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 buy the stocks you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
We’re looking at some of Cramer’s stocks, on Mad Money. He had the CEO of Constellation Brands ( NYSE:STZ ) on. The company reported great earnings, the stock closed at an all-time high. I can’t help but remark, the CEO looks A LOT like the Dos Equis guy, “Stay thirsty my friends.” I swear he looks A LOT like that guy. That’s not the reason you want to buy the stock. The reason you want to buy the stock is because, guys, they do BOOZE and that’s kind of a big deal. One of the reasons why this is moving is the same reason why the tobacco stocks are moving, because these are the vice stocks, and that’s because a lot of people these days have big vices. Seriously!
So what are you going to do? I wouldn’t be buying this stock RIGHT now. Not right now, not right here. The stock has a habit, as all stocks do, of hitting the 50-day moving average at some point. I think you’ve got to wait, with the S&P up closing in on all-time highs (see my Strategy Session for my thoughts on that), but I think you’ve got to wait for the stock to pullback. The S&P has a down day, maybe we get some kind of profit taking; maybe you put in a ‘good till canceled order’ to buy this stock at 160.00 or 159.00. If you’re filled, great! This is not a stock that is going to reverse and go lower. Did I mention, again, they sell booze?
Okay, Heinz ( NASDAQ:KHC ). Cramer says that this company, if they want to keep growing they’ve got to do a deal. That’s a fundamental thing, but if you look at this, just on a daily chart, it’s almost as if they’ve done a deal. This is a stock that’s breaking out of a volatility squeeze, that hit the 50-day, Boom!, moving average, it’s up about 5 percent or so since then. A cup and handle pattern here, let me do this, draw it this way, nice prolonged cup, this was the high, this was kind of the high back here. I think this thing moves. If they do a deal, all the better. But for now, I think you can buy this stock, literally, right here, right now.
Okay, WhiteWave ( NYSE:WWAV ). Cramer has liked this stock for a long time. If I RECALL correctly, he was pounding the table down here. Now for all I know he’s pounding the table up here too. I don’t know. But I’ll tell you this, from a chart standpoint, it’s working. Now, $50.00, $52.00, something like that is the high. We’re on an uptrend here. This broke down well below the 200-day or the 40-week moving average and the next leg looks, to me, like it’s starting higher. I wouldn’t buy this stock either, not right now. For the same reasons as Constellation Brands ( NYSE:STZ ). It’s just not a good entry point. And this stock has a habit of going up and down. So wait for the stock. If it pulls back a couple bucks, closer to 45.00, THAT’S when you buy this stock.
3 Stocks I Saw on TV Free Chart