3 Stocks I Saw on TV (ULTA, DLTR, DG) (June 3, 2016)
ULTA DG DLTR DG DLTR DG DLTR
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. We’re going to look at some stocks that Cramer covered on Mad Money on Friday.
First off is Ulta ( NASDAQ:ULTA ). Now as Stock Market Mentor members know this has long been a Fitzpatrick classic. I love Ulta ( NASDAQ:ULTA ), do you know why? Well for one thing I got my Clarisonic there, which is great to keep my skin nice and soft and clear. But also, here’s the deal: Cramer was saying this on Mad Money, this is different. You can buy a lot of stuff that’s in Ulta ( NASDAQ:ULTA ) on Amazon. But with the cosmetic skin care deal, people like to go out and look at that stuff. It’s not like buying some paper clips. So they’ve got a good store setup, where people are going to walk in, they’re not just going to buy this stuff online. And that’s like the ultimate in impulse buying. You’re in there for one thing, the next thing you know, “Oh, that looks pretty cool, I think I’ll get one of those.” So their displays inside the stores are actually really good. I know, because there’s one right next to Trader Joe’s. So I’ve got Ulta ( NASDAQ:ULTA ) covered.
What I’m suggesting here on this stock is, it’s not really a great time to be BUYING it right now, because they’ve already reported earnings. They were monstrous earnings, as they were the time before that. Instead I would say let this stock drift a bit, you can see the kind of trend it’s had. But this is what I would challenge you to do: If you get a chance to buy the stock closer to the 50-day moving average, I don’t know if it will pullback to 210.00, it might. But if you can just get it somewhere in there, forget about the stock for a year. It’s going to do what it’s going to do. It’s been very volatile. This business isn’t going away. The stock is like the “big dog” in it’s class and I don’t mean that in a bad way. I mean this is the big 800 lb. gorilla with really nice skin. So I want you to wait and buy this stock on a pullback and then just leave it alone. Just let it do it’s work and you can thank me in a year.
The other thing is, Cramer was looking at Dollar General ( NYSE:DG ) and Dollar Tree ( NASDAQ:DLTR ). Coincidentally they’re kind of right at the same price, just about. Cramer likes Dollar General ( NYSE:DG ) better, because it’s cheaper than Dollar Tree ( NASDAQ:DLTR ) and he’s like a value guy. Again, the charts look about the same. But he likes Dollar General ( NYSE:DG ) because their same-store sales growth is good. So what do we see in the chart? Almost a similar thing to Ulta ( NASDAQ:ULTA ), which is, these stocks have already made big moves off of their 50-day moving averages.
We can zoom out to the weekly charts. Dollar Tree ( NASDAQ:DLTR ), Dollar General ( NYSE:DG ); Cramer likes Dollar General ( NYSE:DG ) better. Honestly though, I like Dollar Tree ( NASDAQ:DLTR ) better, just because of the chart. Not because of the “fundies” of the company. Here’s the other thing though, Cramer thinks Dollar General ( NYSE:DG ) is cheaper, and I’m sure it is, but people pay up for growth. And we’ve got this resistance here. Sideways consolidation, for quite a while, like a year. And now finally a breakout. I would definitely would want to be buying this on ANY kind of a pullback. I don’t like to buy at all-time highs, but if you can get this stock just a couple dollars cheaper, somewhere down there, put that right next to Ulta ( NASDAQ:ULTA ) and talk to me in a year.
3 Stocks I Saw on TV Free Chart