3 STOCKS I SAW ON TV: CMG, BWLD, PYPL (April 27, 2016)
Every night we watch the same shows, Fast Money and Mad Money. And we want to use those ideas to grow our money. Well good trading takes more that just pushing the buy button every morning on stocks that you saw last night on TV. I’m here to help you make money on THESE 3 stocks I saw on TV.
We’re going to start with BWLD here, Buffalo Wild Wings ( NASDAQ:BWLD ). You can see they reported earnings and they WEREN’T that good. Cramer had the CEO of the company on. The stock closed down almost 11 percent, but that was well off of the low. At one point it went down over 15 percent. The CEO was basically saying, “Look, it’s kind of slow out there. There’s a lot of seats, etcetera, etcetera.” And by the way the seats are looking for butts to put into them, right? So anyway, what are we going to do with Buffalo Wild Wings ( NASDAQ:BWLD )? I think this is kind of a Chipotle ( NYSE:CMG ), which I’ll get to in just a second. Here’s a weekly chart of the stock so you can see. Nice uptrend here, now this is rolling over, a little bit like Chipotle ( NYSE:CMG ).
With Wild Wings ( NASDAQ:BWLD ), what do you do? Longer-term, this is not a stock that I would want to hold. Simply because, look, it’s in an uptrend. That uptrend is broken, now we’ve got a lower high relative to that. A lower low here relative to this, which was lower than this, etcetera, etcetera. So this is a stock that has kind of rolled over. But I’m not talking long-term investments, I’m talking shorter-term trading. A really sloppy chart here. But here’s the deal: I think you could buy this stock under $130.00 and you probably get a decent rebound, maybe up 5 or 8 percent or so. But honestly, that’s really all. That’s really all I could say, and it might not even be moving that high. But you’ve got to figure there’s a boatload of resistance here from folks who bought the Wild Wings ( NASDAQ:BWLD ) and now are not really happy, because they’re just getting the skin there. So you can buy this for a short-term trade if you want. But long-term, I don’t think this is your deal.
Now Chipotle ( NYSE:CMG ); Cramer thinks this stock has bottomed as well. The quarter was not good, they lost money for the first time in a while. You look at the weekly chart again, and this is what we’ve seen. Maybe they don’t have E.coli anymore, but the stock is still drifting lower. I’ve got to say this, Cramer may be right about this being a bottom, but this stock is not trending. The only momentum it has is NONE. It dropped after earnings. Looking for a bottom. Coming out of a volatility squeeze. You know, this will probably hold around $400.00 or so. But again, there’s NO momentum here. So what are you going to do? Are you going to buy it? “I’m going to buy this dip.” Great! How high up do you think it’s going to go? Technically, MAYBE 5 percent. Maybe. But it has to be done going down first. So I think you’ve got to just be from Missouri here, the “Show Me” state. I just want to sit here, let the stock trade for while, and not have a dog in that fight one way or another. Remember, the long-term trend is down. At some point it’s going to bottom. But I think it’s premature to say this is THE bottom.
Okay, lets look at something that’s kind of fun, Paypal ( NASDAQ:PYPL ). They reported strong earnings today, this stock is breaking out. This is the all-time high for this stock (they just debuted a year ago). The all-time high for this stock is like $43.00, 42.50, actually. So the way this stock is trading after hours, this is probably going to start breaking out to an all-time high. I don’t think you have to be in a mad rush to buy it tomorrow. But I do think it’s a stock that’s going to start pushing to all-time highs. That’s my IPO strategy. Where you look at a stock, an initial public offering, and I’m not talking about a month or two, I’m talking over the next year or so. When the stock starts trading higher than it’s opening print, higher than what I call, it’s enthusiasm high, that means that literally everybody that bought this stock is a winner. They’re happy. There’s no overhead resistance, other than just kind of a little bit of gravity. So I think that’s where Paypal ( NASDAQ:PYPL ) is going right now.
So I would say, as far as these three, good on Paypal ( NASDAQ:PYPL ), go ahead and make that trade. Buffalo Wild Wings ( NASDAQ:BWLD ) and Chipotle ( NYSE:CMG ), maybe for short-term trades, but you can see the trends aren’t really working for you.
3 Stocks I Saw on TV Free Chart