3 Stocks I Saw on TV (NFLX HAS YHOO) (July 18, 2016)
NFLX HAS YHOO
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, on the stocks you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
Okay, we’ve got earnings central here. We’re going to look at Netflix ( NASDAQ:NFLX ), Hasbro ( NASDAQ:HAS ), and Yahoo! ( NASDAQ:YHOO ).
Netflix ( NASDAQ:NFLX ). Okay, in essence here’s the deal with Netflix ( NASDAQ:NFLX ): They’re not growing as fast as they would like. When management says that, you know you’ve got a problem. Also, apparently Pokémon, yes I said it, is impacting Netflix ( NASDAQ:NFLX ), because people play that stupid game about half an hour a day. So when you’ve got a game impacting a stock, that’s a problem. So here’s the thing, short-term, I’m talking about tomorrow morning, on Tuesday morning, this MAY be, MAY, be setup for a bounce. Because here was a low, here was another low and the stock is trading, as I record this video, at like $85.00 flat. So we could get just a reflex bounce because that’s what has happened before.
But what I’m worried about, or at least I’m looking at, is this: The 200-day moving average is now resistance on this stock. The stock can’t get above it, and it certainly isn’t going to get above it with respect to earnings. So that makes me want to zoom out, long-term the stock just kind of looks like it’s poised to be forming a top, as opposed to a little consolidation. From a fundamental standpoint, which is not my favorite thing to look at but I can look at them, and I know what I’m talking about, it’s actually a more expensive stock than Amazon ( NASDAQ:AMZN ). Not only does Amazon ( NASDAQ:AMZN ) have a better price, it also has a better business model (Lex Luthor is taking over the world). This one, not so much.
So I would stay away from Netflix ( NASDAQ:NFLX ) longer-term. I would use any rally as an opportunity to sell. And again, I’m not talking on Tuesday, I’m not talking about Thursday. I’m saying longer-term, this is a weekly chart, I think this is a top. Short-term, tomorrow morning, if the stock is ABOVE where the stock bounced and where it opened, if the stock is above that level within a couple minutes, 3, 4, 5 minutes, then you probably can find a good trade to the long side. But that’s totally short-term stuff.
Okay, Hasbro ( NASDAQ:HAS ). They reported earnings that the market didn’t like very much, down almost 7 percent. This was on Monday morning, you can see what happened. Cramer had the CEO of the company on. And Cramer actually thinks that this is a good buying opportunity. The problem is that the stock hasn’t quite found a bottom yet. Here’s the deal: The CEO says they’re building a big ‘global footprint’. It’s just really a growth story. Here’s what I would suggest doing with this, it’s actually pretty easy, because you have to define risk somehow, someway. If you’re going to buy this stock, and I certainly wouldn’t short it right here, it’s already made the move; but if you’re going to buy this stock, you’re buying it because you’re anticipating a move off of the 200-day moving average and so you’ll have a stop just a little bit below that. If you get stopped out, to bad so sad, that’s why they call it trading and not winning.
And then finally, Yahoo! ( NASDAQ:YHOO ). I don’t even know why I’m covering this. They reported earnings and lo and behold, they missed. Whew! Beat revenues, missed on earnings. Not only that, but they had a 482 million dollar write down on Tumblr. I almost struggle for words here because that was about the dumbest acquisition that I’ve seen in a long time. They paid 1.1 billion dollars for Tumblr in 2013. Three years later they’re having to write off almost half of it.
Here’s the thing with Yahoo! ( NASDAQ:YHOO ): If this company was being run by Oscar Mayer, as opposed to Marissa Mayer, nobody would care. But because it’s being run by a gal who had her photo spread done in Vogue and basically is just a high profile female CEO. Everybody is putting undue focus on that. All that’s fine for morbid curiosity, what’s going to happen with massive, Lord knows how many millions, a golden parachute for this person. But what we really care about is the stock. The other stuff is just curiosity. I think you’ve got to stay away from this stock. At some point they’re going to say which bidder they’re going to sell to. I say, good riddance. I’m sure you will probably be able read plenty on it on Tumblr. Or maybe ever reedit or as I call it Trollit. So for Yahoo! ( NASDAQ:YHOO ), it’s probably the last time you’ll here me cover it because I can’t really think of a company that’s more boring.
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