3 Stocks I Saw on TV (YHOO WFC MYL). (September 22, 2016)
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, to buy the stocks you saw on TV last night. Come on man. I’m here to help you make money on THESE 3 stocks I saw on TV. We are going to look at the ‘terrible triad’ here. Yahoo! ( NASDAQ:YHOO ), Mylan ( NASDAQ:MYL ), and Wells Fargo ( NYSE:WFC ) and see if there is a trade here.
Yahoo! ( NASDAQ:YHOO ), that marvelously run company that has been run right into the ground. They reported apparently the biggest data breach in the history of the universe, 500 million email data, stuff on your Yahoo! account. That is kind of a big deal; but the stock traded flat today. This wasn’t an after hours thing. Basically nobody cared. I don’t know what the deal is, maybe nobody cares about email stuff anymore, whatever the case may be. But of these stocks that we are looking at today; Yahoo! ( NASDAQ:YHOO ), frankly, is the only one that I would consider buying right now. Because it is indeed trending higher.
This is not the best time to be buying this stock right here because the market has been up for a couple days in a row. You have got to think it has got to be taking a rest, if only briefly, now that the Fed is out of the way (here’s my happy face). But if you can get this stock closer to $53.00 or so, then I think it is worth buying. It had heavy volume here today and you can bet a lot of that had to do with this, a lot of selling, but then it turns out there was a lot of buying too. So ultimately I think Yahoo! ( NASDAQ:YHOO ) goes higher, it is just kind of tough to be buying it right now.
Okay, Mylan ( NASDAQ:MYL ). Heather Bresch, who I call the ‘tap dancer’, was sitting in front of Congress yesterday. They absolutely filleted her. Some of the questions were, in my view, kind of irrelevant. Like how much do you get paid? What is your salary? How do you justify this and that? Fine, ask Steph Curry or Michael Jordan how they justify their salary. Definitely ask Colin Kaepernick how he justifies his. The bottom line is, people get paid what they get paid. So it is nobody’s business, to be honest with you. But with respect to the company, the stock was moving up yesterday and then it jumped some today again. Why? I think it is because traders are going, “Oh, they are not really laying a hand on her.” And that is fine and dandy.
But the thing is, there was selling in to this. And so the fact that Bresch is out of the spotlight and just letting daddy stay in the Senate and deal with all this stuff. That is fine. Mylan ( NASDAQ:MYL ) is NOT a stock to be buying right now. I know that there have been some high-profile trades that have bought this stock because they think it can’t get any worse, and I could actually see the merit in that. I couldn’t get any worse. But just because it can’t get any worse (although that is not MY opinion, I think things actually could get worse, but I respect the market a heck of a lot more than I respect my opinion) so we are looking at this, and this is “the worst right here”. But my point is, even if things couldn’t get WORSE, are they going to get sufficiently better to where the stock is a great buy? I don’t think so. I think this is a stock you just stay away from. I don’t care if you use an EpiPen or not.
Okay, Wells Fargo ( NYSE:WFC ). This is just a disaster, not waiting to happen, it has already happened. The new allegations today were that Wells Fargo ( NYSE:WFC ) and John Stumpf actually knew about some of the things. It goes as high as the Board of Directors, that they knew about these business practices, basically fraudulent business practices and fired whistle blowers, things like that. You can just Google it and look at the stuff. Look at the news, it is all over the place. That is a BAD thing, because certainly it almost goes with out saying that Stumpf is going to be out of a job. Who knows, maybe he can hang out with Franklin Raines and they can play golf together. This is not good news for Wells Fargo ( NYSE:WFC ) and I think it only a matter of time before this stock breaks 45.00. Most importantly though, this stock is trending lower.
Look at the 200-day moving average, it is a bit like Mylan ( NASDAQ:MYL ). Why would you want to buy a stock like this, if it is not making you money and it is probably not going to make you money for a while? I mean, buy Amazon ( NASDAQ:AMZN ); even buy Facebook ( NASDAQ:FB ), which is not hitting a new high today like Amazon ( NASDAQ:AMZN ) and Google ( NASDAQ:GOOGL ) did. But buy these stocks instead of these pigs, Mylan ( NASDAQ:MYL ), Wells Fargo ( NYSE:WFC ), give me a break. The only reason that you are buying Mylan ( NASDAQ:MYL ), and Wells Fargo ( NYSE:WFC ), think about it, I am giving you pearls here, the only reason you are buying these stocks is because later you want to be able to say, “I was right. Oh, I bought Wells Fargo right at the bottom.” Or, “I bought Mylan right at the bottom.” And that is fine. But wouldn’t just rather make money in the meantime?
I would rather buy Wells Fargo ( NYSE:WFC ) at $55.00 so that I could sell it at 60.00, than I would buy it at 45.00 so that I could sell it at 50.00. Why? Because if the stock got up to $55.00 it is probably going to 60.00. Now that the stock is at 45.00, with all this stuff going on, do I think that it is going to get to 50.00? Honestly, I don’t think so. I think you are going to see ‘rats running from this sinking ship’. The fact that all it could was rebound here, after that guy was interviewed by Congress, and then now it is back down almost to the post news low, is not good news.