3 Stocks I Saw on TV: TSLA, DIS, CFMS (April 8, 2016)
TSLA DIS CFMS
Every day we watch the same shows, CNBC, Fast Money, Mad Money, and we want to use those ideas to grow our money, right? Well good trading takes more than just hitting the buy button in the morning on the stocks you saw yesterday. I want to help you make money on these 3 stocks I saw on TV.
We’re going to start with Tesla ( NASDAQ:TSLA ) here. On Friday there was a really interesting interview of an analyst who was basically saying, “Dude, dump Tesla in a heartbeat. Not the car, but the stock.” And his reasoning was pretty good. That the high demand for this Model 3 makes it very, very likely that Tesla ( NASDAQ:TSLA ) is going to need to raise capital. It was also interesting, he said, “Look, every other time that Tesla has said that they wouldn’t need to raise capital, they actually wound up doing it.” So sorry to say it, but that kind of goes to creditability. He noted that they have 2.65 billion dollars in debt as of the last quarter. He thinks that they could even possibly have to double that debt if they want to even hope to meet the demand for their Model 3.
The bottom line is this, and this was also interesting: Tesla’s ( NASDAQ:TSLA ) market cap is above Mazda, Fiat, Ferrari, and Porsche combined. I think the guy has a really good point. I also think that the chart looks really tired. He has a super low price target on that. I’m not in the business of picking price targets so I will just say this, I think you want to be out of Tesla ( NASDAQ:TSLA ). Go ahead and buy it back if it moves above 270.00, great, you missed out on 8 percent. But this stock is a rocket ship. Frankly, I’m probably going to be shorting this thing on Monday and I will have a buy stop right up above 270.00.
Now, another stock that was interesting is Disney ( NYSE:DIS ). Thomas Staggs was seen as the new CEO; Bob Iger’s heir apparent, as they say (I always wondered, what about hair apparent?). But he announced last Monday that he is stepping down. So there is just a lot of wondering about who’s going to take the helm there. So I just wanted to cover this stock from a technical standpoint. The chart is interesting. I would say the 50-day moving average is support for this stock, about $95.00. This is not a bad time to be buying Mickey because it’s down at the lower end of it’s range. I would just keep a stop underneath $95.00. If it moves up above 100.00, maybe add to that position. This would be more of kind of short-term trading stuff, not any long-term commitment. You can see what’s happening with the chart here. This is kind of rolled over here.
Then the last one ConforMIS ( NASDAQ:CFMS ). Cramer was talking to the CEO of this company. One of the things that they make, they make prosthetic devices like for knee implants, stuff that is ultimately going to be near and dear to my old heart, at least on my right knee, maybe my left. Cramer was talking to this guy, pretty impressive guy, pretty impressive company. The upshot is this: their knee implants are working better, they’re kind of like custom knee implants and they’re taking market share away for some of their competitors.
So I’m look at this chart. I know the company’s expensive, the stock has already taken a haircut. I was really interested in this stock back here last year. Just kind of waiting for it to break out, it never did. And to be honest with you, I kind of forgot all about this stock. Now I’m back on it. I would say if it falls back here to the high 11s, and it holds, then that’s a good opportunity to buy the stock. If you are already long the stock watch for the stock to trade above $14.00. If it trades above that level I think it’s going to go a lot higher. The short interest on this is pretty high. It takes over 11 days to cover if only the shorts are trading. So this is a stock that I think you could definitely have in your portfolio.
3 Stocks I Saw on TV Free Chart