Looking to trade the credit rating agency debacle? Here’s how you do it. Check out $EFX $TRU $EXPGY and $SYMC. (September 18, 2017)EFX TRU EXPGY TRU EFX SYMC EFX SYMC
We are going to look at a few different stocks here and this whole credit debacle here. You know about Equifax ( NYSE:EFX ); trust me, everybody on the dark web knows about you. You may get a birthday card from somebody. Here is the thing: Right now there is no trade here, in my view we just don’t know. We look at the weekly chart, this is the definition of oversold. If the stock starts falling below 90.00, then for me I would actually reinitiate a short. But that is then, this is now. For where we are right now, honestly, I don’t see a trade. I think you have just got to avoid this. I will show you two others that you need to avoid, so pay attention here.
The path of least resistance on this from here, absent any headline news, is higher. We just don’t know how much higher, because there has been a lot of liquidation. I wouldn’t really say that this is like a climax low. And “OMG, $90.00, Wow! What a deal!” This company is run by a bunch of buffoons. Their chief information officer had a degree in music composition. And you probably know, everybody else on the planet does, that you could get into Argentina’s system with a login ID of ‘admin’ and a password of, wait for it, ‘admin’. I personally think there are a lot more skeletons in this closet that are going to come out. But, from a technical standpoint this is not where you want to be, definitely don’t be shorting this stock here. I wouldn’t be long this stock.
One of their competitors, TransUnion ( NYSE:TRU ), has already sold off. So is this where you go? I have seen people, I even got some mail from somebody, “Hey, maybe TransUnion is where we need to be going because Equifax, they have got issues so TransUnion is going to get more business.” This is what I would say to that: It is not like we have a credit rating agency hedge fund. We don’t have to buy any of these stocks. And that is where I think you should be, somewhere else. The political risk here is huge because there is going to be no political cover for these companies now. Nobody is going to be coming to their rescue, not even the Republicans, which hard as that may be to believe, is actually true. There could be any kind of legislation that is passed, I won’t get into detail on it, but they were hoping to get a waiver from this arbitration deal with the Consumer Financial Protection Bureau. This is just a mess here. You don’t want to be here at all. Why? Buy NVIDIA ( NASDAQ:NVDA ) instead.
This is the other one, Experian ( OTCMKTS:EXPGY ). This is coming back a little bit, sure. But is this the best chart that you can find to where you can put your money in? Rather than this one, TransUnion ( NYSE:TRU ), or this one, Equifax ( NYSE:EFX )? This is where I would put my money in if you want to trade, Symantec ( NASDAQ:SYMC ), right here. They own LifeLock ( NYSE:LOCK ). And my bet is, other than the one guy who is listening to this right now going, “What?” Nobody is going to do the whole trusted ID thing from Equifax. (I want these guys to go out of business so badly I have already forgotten their name.) Nobody is going to buy the trusted ID from Equifax ( NYSE:EFX ). It doesn’t matter if they get it for a year free, or two years, or whatever. These guys don’t care about protecting your data, so you are not going to do that.
What are you going to do? You are going to do, wait for it, let’s all say it together, LifeLock ( NYSE:LOCK ) and that is owned by Symantec ( NASDAQ:SYMC ). And that is why the stock popped up here when it did. Right now it is in a little bit of a holding pattern. I think your next buy point is on a breakout above 34.17, I will make it 34.20, there. Buy, buy, buy, we will say that is for a month (love this about Warden) one hour later, that is fine). So, I think that is your trade. You can own this stock right now and just keep a stop maybe right under there. Give it about 5 percent room and I think you are going to make a lot of money here. And wait for them to report the next quarter because you can bet that they are getting a boatload of business right now.
I think it almost doesn’t matter what analysts raise their estimates to, they are going to be too low. Think about this for a minute from an analysts standpoint, they don’t like to get fired. They have no vested interest in having a real aggressive estimate on a company. Why are they going to do that? Because then if the company misses their aggressive estimate they kind of look like knuckleheads. And so, if the company beats their aggressive estimate they don’t really look like superstars, they just look like they kind of took a flier and it paid off. I think this company will ultimately beat earnings and probably guide higher. This has another month or so, over a month to run. So Symantec ( NASDAQ:SYMC ), take a look at it, check it out. My bet is, you are going to like it.