3 Stocks I Saw on TV- TSLA, SQ, XON (August 3, 2016)TSLA SQ XON
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 punching the buy button, the next morning, to get the stocks you saw on TV last night into your portfolio. I’m here to help you make money on THESE 3 stocks I saw on TV.
The first one is Tesla ( NASDAQ:TSLA ). I kind of stopped covering this stock a while ago for a couple different reasons. First of all, the stock is basically not trending. It’s all over the place and there is really no difference today. The company reported earnings and you can see what happened. It’s like, “Oh my gosh! They lost money. Time to buy because that’s what always happens.” And then, “Oh, well they missed numbers so it’s time to sell.” And then, “Oh, but they are increasing production.” The bottom line is the stock is just drifting sideways. Buy it if you want. Frankly, this is a cult stock to me; it moves in big swings. I would NEVER short this stock. I have wanted to but I’ve never been able to pull the trigger.
I think Musk is kind of a carnival barker, a really, really brilliant one with some awesome ideas. But I don’t believe a thing that the guy says. He’s proven himself to be not really believable, “Oh, no, no, no. We’re not going to have to raise more money.” Boom! Secondary offering. Bonds, stuff like that. He’s doing what he needs to do to keep the company afloat. Love the cars, hate the stock. They reported earnings, the stock did not move higher. I wouldn’t even consider it if I were you, until it was above this level, 237.00, 238.00, something like that. By the way, if I start to see this kind of trend again, I will be a ‘Teslonian’. I will LOVE the stock. Anytime you can get this kind of a reversal and ride something up 70 percent, I’m all for it. THIS, though, is not that.
Okay, lets look at Square ( NYSE: SQ ), payment platform. Jack Dorsey, the same guy who invented Twitter ( NYSE:TWTR ) is the CEO of this. Awesome earnings, they basically beat revenues, they beat on earnings, and they raised their guidance. So this is all good, basically it doesn’t get any better than this. And you can see what’s happened with the stock. Big move, just a high volume move as I do this, and you can see when this is, almost 6:00 EST. So what are you going to do with this stock? If you’re short the stock, you’re going to need to probably clean yourself up here.
This stock is up HUGE, two-thirds of the float is short. This is a short squeeze. It’s LIKELY to even go higher. But just out of discipline, you don’t want to chase a stock that’s up over 10 percent. No way. If you are trading it just make sure it stays above it’s opening print, because think about what happened to Facebook ( NASDAQ:FB ), big gap up and then the stock drifted lower, those that bought right at the open didn’t do real well. If you’re long this stock, congratulations, you own the one in three shares. I would be selling, because this kind of move on one day, you really shouldn’t ask for more than that. So I’d be selling into strength. But just love the fact that these shorts are getting squeezes; not too many things I like more than a good short squeeze.
Intrexon ( NYSE:XON ). Why am I going over this? This is like the Zika company. Tony Dwyer was on Fast Money; there’s one really smart guy. I met Tony almost twenty years ago, he’s an amazing guy. He was talking about, perhaps kind of a Zika sell-off, and this and that. I’m not looking at that, I’m looking at Intrexon ( NYSE:XON ). Look, there’s a lot of mosquitoes out there, a bunch of them apparently in Florida, that are carrying this stuff around. Intrexon ( NYSE:XON ), makes a GMO mosquito, that’s right, genetically modified mosquitoes who pass along, basically a gene that makes other mosquitoes die young. So it’s kind of the Billy Joel gene, with the good mosquitoes and the bad mosquitoes. I’m looking at this, this is my Zika trade here. They report earnings next week. You’ve got to pay attention to that; one-third of the float is short here. I would want to be long this stock going into earnings. I think they’re probably going to have some pretty good news coming.