For Beyond Meat, breaching this level would be ‘very, very bearish,’ says analyst

Beyond Meat has proved challenging for its short-sellers, who are currently short roughly 40% of the float but frequently find themselves caught in short squeezes. For Bill Baruch, founder and president of Blue Line Capital and Blue Line Futures, the key level to watch in Beyond Meat is $70 a share. “A close below 70 is very, very bearish,” Baruch told CNBC’s “Trading Nation” on Tuesday, pointing to the chart of Beyond Meat’s stock since the initial public offering last May. But from a fundament


Beyond Meat has proved challenging for its short-sellers, who are currently short roughly 40% of the float but frequently find themselves caught in short squeezes.
For Bill Baruch, founder and president of Blue Line Capital and Blue Line Futures, the key level to watch in Beyond Meat is $70 a share.
“A close below 70 is very, very bearish,” Baruch told CNBC’s “Trading Nation” on Tuesday, pointing to the chart of Beyond Meat’s stock since the initial public offering last May.
But from a fundament
For Beyond Meat, breaching this level would be ‘very, very bearish,’ says analyst Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: lizzy gurdus
Keywords: news, cnbc, companies, tatro, breaching, meats, investment, meat, baruch, analyst, stock, bearish, short, level, trading, tried, standpoint


For Beyond Meat, breaching this level would be 'very, very bearish,' says analyst

Beyond Meat bears have had a bad streak.

Shares of the fake meat maker have skyrocketed nearly 52% since this month, a massive gain buoyed by Main Street’s meatless mania and a welcome reprieve from the stock’s collapse in the second half of last year.

Shares fell 4% Wednesday morning, following a downgrade from Bernstein. Trading in the stock was halted briefly on Tuesday to mitigate volatility.

Beyond Meat has proved challenging for its short-sellers, who are currently short roughly 40% of the float but frequently find themselves caught in short squeezes.

A short squeeze is when investors who are betting a stock will go lower — short-sellers — instead see the stock rise and are forced to cover their bets, which can send the stock even higher.

For Bill Baruch, founder and president of Blue Line Capital and Blue Line Futures, the key level to watch in Beyond Meat is $70 a share. The stock was around $112 in early Wednesday trading.

“A close below 70 is very, very bearish,” Baruch told CNBC’s “Trading Nation” on Tuesday, pointing to the chart of Beyond Meat’s stock since the initial public offering last May.

“In looking at this chart, this surge I believe has run its course,” the technical analyst said. “This is not quite a dead-cat bounce, but this run, I think, is now exhausted and, ultimately, from here, you also have resistance at 135.”

Based on Baruch’s Fibonacci analysis — adopted from the mathematician who spotted repetitive patterns in nature that also tend to occur in the stock market — $135 is something of a ceiling for Beyond Meat’s stock because it represents a 38.2% retracement of the recent downtrend, which is one of Fibonacci’s key ratios, the analyst said.

“[If] you get a close above 135, it could get some legs,” Baruch said. “I’m still not a believer.”

Quint Tatro, chief investment officer at Joule Financial, said in the same “Trading Nation” interview that while Beyond Meat’s story is “interesting,” that’s all it is: a story.

“From a fundamental standpoint, it’s very difficult for us to get behind this name. It’s not profitable. Exceptional sales growth, but pure speculation,” Tatro said. “I’m a fan of the company. I’ve tried the burgers. I’ve tried the sausages. I mean, it’s great. But from a fundamental investment standpoint, they’ve got to be profitable. They’ve got to have positive cash flow. It’s just going to take time.”

Tatro chalked up the stock’s year-to-date surge to a “January effect,” a Wall Street phenomenon during which the prices of the prior year’s laggards are boosted as investors enter the new year with refreshed appetites for stocks.

“You’ve got some people that are buying that weakness, hoping maybe for a pop, which they’re getting. Definitely, that’s adding to the short squeeze, … there’s no question,” Tatro said. “But it’s too soon to tell if this is a real turnaround or not. We would need several quarters of [an] improved track to profitability before we could ever be a buyer of this name here.”

Profitability and positive cash flow were nonnegotiable factors for Tatro, who said his Kentucky-based firm would hold off indefinitely from buying shares.

“For those that are out there that have been trapped in this name and they’re getting this bounce, it’s a great opportunity to take some profits,” he said. “If you’re a long-term believer in this name, sit tight. See what happens. But from an investment standpoint, being able to put real capital [into Beyond Meat’s stock]? It’s very difficult for an investor to do here.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: lizzy gurdus
Keywords: news, cnbc, companies, tatro, breaching, meats, investment, meat, baruch, analyst, stock, bearish, short, level, trading, tried, standpoint


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

‘Too late to buy, but too early to sell’: Traders grapple with Tesla’s roaring run

“The stock has really traded in a very erratic manner and with it now beelining higher, we’d say it’s probably too late to buy, but too early to sell,” Wald said Tuesday on CNBC’s “Trading Nation.” That’s the highest reading over the last six years, indicating it’s overbought, not necessarily — and really far from — a tactical idea here,” Wald said. With no “strong signal” pointing in either direction, Wald left his Tesla argument there: not quite hot enough to sell, but far too overheated to bu


“The stock has really traded in a very erratic manner and with it now beelining higher, we’d say it’s probably too late to buy, but too early to sell,” Wald said Tuesday on CNBC’s “Trading Nation.”
That’s the highest reading over the last six years, indicating it’s overbought, not necessarily — and really far from — a tactical idea here,” Wald said.
With no “strong signal” pointing in either direction, Wald left his Tesla argument there: not quite hot enough to sell, but far too overheated to bu
‘Too late to buy, but too early to sell’: Traders grapple with Tesla’s roaring run Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-08  Authors: lizzy gurdus
Keywords: news, cnbc, companies, really, thats, traders, fundamental, tesla, teslas, late, stock, far, roaring, buy, grapple, early, run, trading, tatro, wald, sell


'Too late to buy, but too early to sell': Traders grapple with Tesla's roaring run

Tesla’s trek to all-time highs has put prospective buyers in a tough spot.

So says Ari Wald, senior technical analyst at Oppenheimer, who argued the electric car maker’s “whippy” shares, which surged nearly 4% on Tuesday to a record $471.63, have rendered the stock all but moot for new buyers eager to get in on the rally.

“The stock has really traded in a very erratic manner and with it now beelining higher, we’d say it’s probably too late to buy, but too early to sell,” Wald said Tuesday on CNBC’s “Trading Nation.”

Tesla’s trajectory has indeed been one peppered by big swings. The stock declined for much of 2019, racking up a more than 26% loss by October, before erasing the losses with a 97% rally in the last three months. Tesla shares closed at $469.06 on Tuesday.

Wald pointed to one particular chart to highlight Tesla’s overheated condition: a chart tracking the percentage by which Tesla has deviated from its 200-day moving average in the last seven years.

“The stock [is] currently trading 71% above its 200-day average. That’s the highest reading over the last six years, indicating it’s overbought, not necessarily — and really far from — a tactical idea here,” Wald said. “But on the flip side, we’d also point out from that chart that that stock stayed above 100% … over a five-month period over May to October of [2013], indicating being overbought isn’t necessarily a reason to sell the stock either.”

With no “strong signal” pointing in either direction, Wald left his Tesla argument there: not quite hot enough to sell, but far too overheated to buy.

Quint Tatro, chief investment officer of Joule Financial and a “big fan” of Tesla and its CEO, Elon Musk, said in the same “Trading Nation” interview that he couldn’t find a substantive, fundamental way to value Tesla at its current levels.

“You can’t, but that’s OK. That’s what makes a market,” Tatro said. “I’ve owned this stock in the past, I’ve traded this stock, but it’s virtually impossible at this juncture to apply any sort of fundamental rationale to owning a company like this.”

His advice was one of the few ways he saw investors being able to buy and hold onto a whipsawing stock like Tesla.

“I think that if an investor really wants to be buying and holding this and buying into the vision, they do so on dips, they do so months ago when it looked like the company was really going to fall apart,” Tatro said. “They dollar-cost average and they just hold on for a very, very long time. But as far as a fundamental investment thesis, there just isn’t one. But go Tesla. I’m a big fan.”

Later Tuesday, Argus Research raised its 12-month price target on Tesla to the highest Wall Street’s seen yet: $556 a share.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-01-08  Authors: lizzy gurdus
Keywords: news, cnbc, companies, really, thats, traders, fundamental, tesla, teslas, late, stock, far, roaring, buy, grapple, early, run, trading, tatro, wald, sell


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

These duds of the decade could be the dynamites of the next, according to market experts

Luxury fashion company Tapestry and General Electric are also both down by more than 20%, while Gap and Ford are also ending the decade lower. Retailer Macy’s did manage to haul itself back into positive territory for the decade. The stock actually saw a huge turnaround in 2019 after a dismal 2018 that included its expulsion from the Dow last June. Yet despite the positives, Tatro is still warning on Macy’s, urging investors to tread carefully with the stock. On its final trading day of the year


Luxury fashion company Tapestry and General Electric are also both down by more than 20%, while Gap and Ford are also ending the decade lower.
Retailer Macy’s did manage to haul itself back into positive territory for the decade.
The stock actually saw a huge turnaround in 2019 after a dismal 2018 that included its expulsion from the Dow last June.
Yet despite the positives, Tatro is still warning on Macy’s, urging investors to tread carefully with the stock.
On its final trading day of the year
These duds of the decade could be the dynamites of the next, according to market experts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-31  Authors: annie pei
Keywords: news, cnbc, companies, dynamites, 2019, tatro, macys, duds, market, according, trading, experts, stock, investors, decade, higher, turnaround, strong


These duds of the decade could be the dynamites of the next, according to market experts

The past 10 years have seen a huge record rally that’s taken the S&P 500 189% higher, but a number of names have sat out the dynamite decade.

Among them, Mosaic has fallen 64% in the last 10 years, while energy giant Schlumberger has declined 39%. Luxury fashion company Tapestry and General Electric are also both down by more than 20%, while Gap and Ford are also ending the decade lower.

Retailer Macy’s did manage to haul itself back into positive territory for the decade. But the stock has seen a tremendous drop this year, down 43% in 2019.

But of that laundry list of liabilities for investors’ portfolios, MKM Partners’ chief market technician J.C. O’Hara says that General Electric is actually showing signs of a comeback.

The stock actually saw a huge turnaround in 2019 after a dismal 2018 that included its expulsion from the Dow last June. This year, GE has soared 51%, and O’Hara says the charts are giving a strong technical case for an even bigger rally.

“The 40-week moving average, which has been a negative slope since 2017, has slowly started to hook higher,” he explained Monday on CNBC’s “Trading Nation.” “We’re seeing signs of higher highs and higher lows this year in 2019. So we are encouraged by the longer-term chart, [which is] slowly starting to improve.”

O’Hara emphasizes that investors need to be patient with the stock, but says he believes any pullback below $10 to $10.50 would be the levels at which they could enter the name.

Rather than GE, Joule Financial president Quint Tatro sees a potential turnaround for Macy’s. He said that while Macy’s “has been trading like the company’s going out of business,” he believes that the company’s free cash flow, fairly positive balance sheet and its dividend are strong fundamental cases for owning the stock.

Yet despite the positives, Tatro is still warning on Macy’s, urging investors to tread carefully with the stock.

“As far as risk reward goes, with a stop at lows, we think Macy’s presents a pretty interesting opportunity here,” he said in the same “Trading Nation” interview. “But make no mistake about it, if the fundamentals continue to deteriorate, you cannot just hold and hope. You’ve got to cut your losses. But we like it going forward, we’re long the name.”

On its final trading day of the year, the S&P 500 is set to end 2019 up 28%.

Disclosure: Joule Financial is long Macy’s.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-12-31  Authors: annie pei
Keywords: news, cnbc, companies, dynamites, 2019, tatro, macys, duds, market, according, trading, experts, stock, investors, decade, higher, turnaround, strong


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

One corner of the health-care sector is on its longest win streak ever

Health-care stocks are soaring this quarter, and one part of the sector is having its best winning streak on record. That’s its longest win streak on record. Baruch notes an upward channel stretching back to 2015 that suggests biotech should continue to trend higher. Baruch adds that the upward channel leads him to believe the XBI ETF moves as high as $109 in 2020. The XBI ETF struggled to break above $95 until this month.


Health-care stocks are soaring this quarter, and one part of the sector is having its best winning streak on record.
That’s its longest win streak on record.
Baruch notes an upward channel stretching back to 2015 that suggests biotech should continue to trend higher.
Baruch adds that the upward channel leads him to believe the XBI ETF moves as high as $109 in 2020.
The XBI ETF struggled to break above $95 until this month.
One corner of the health-care sector is on its longest win streak ever Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-20  Authors: keris lahiff
Keywords: news, cnbc, companies, sector, win, xbi, stocks, high, trend, upward, etf, healthcare, longest, baruch, think, tatro, streak, corner, higher


One corner of the health-care sector is on its longest win streak ever

Health-care stocks are soaring this quarter, and one part of the sector is having its best winning streak on record.

The XBI biotech ETF, which holds top stocks such as Amgen and AbbVie, is on pace for its 12th straight week of gains. That’s its longest win streak on record.

Bill Baruch, president of Blue Line Capital, says its red-hot rally could continue.

“I think it’s going higher, you know. First, fundamentally you have a high rate of FDA approvals, valuations are not too inflated. The elephant in the room is the election and some jawboning you could hear about drug prices, but the technicals here I think are great,” he said Thursday on CNBC’s “Trading Nation.”

Baruch notes an upward channel stretching back to 2015 that suggests biotech should continue to trend higher. The group also just reversed a downward stretch.

“There’s a little bit of intermediate down trend line we broke out above. That was coming from last year’s high. So, we’re trending higher right now and momentum is there,” Baruch said. “The RSI — which tells us it’s overbought — has cooled off just a little bit, and the stock has held well.”

The XBI ETF’s relative strength index, or RSI, trades at 71 after reaching a peak of 84 in November. Any reading above 70 typically suggests overbought conditions. Baruch adds that the upward channel leads him to believe the XBI ETF moves as high as $109 in 2020. That implies 12% upside.

Not everyone is buying into the rally, though. Quint Tatro, president of Joule Financial, is steering clear.

“I hate to be the Grinch on this one but I just can’t jump aboard,” Tatro said during the same segment. “Many of these stocks got absolutely crushed in Q4 of 2018 and have spent the majority of 2019 consolidating.”

The XBI ETF struggled to break above $95 until this month. It fell below $73 in October at the worst of an autumn decline.

“We would favor, if anything, some of the big boys Ilumina and Gilead and they really haven’t participated. So I think investors have to really be careful. Some of these stocks do look cheap, but could be a trap here going into the new year,” said Tatro.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-12-20  Authors: keris lahiff
Keywords: news, cnbc, companies, sector, win, xbi, stocks, high, trend, upward, etf, healthcare, longest, baruch, think, tatro, streak, corner, higher


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The worst-performing S&P 500 stock is about to report earnings

The retailer, which is down nearly 80% from its 2015 peak, is set to report earnings Thursday morning. TradingAnalysis.com founder Todd Gordon says that retail carnage is likely to continue based on technical retracements. The department store chain’s stock dropped over 10% on Tuesday after retailer Kohl’s sour earnings report. Quint Tatro, president of Joule Financial, isn’t counting the retailer out and is hoping on a turnaround for the worst performing S&P 500 stock. Tatro said he won’t add a


The retailer, which is down nearly 80% from its 2015 peak, is set to report earnings Thursday morning.
TradingAnalysis.com founder Todd Gordon says that retail carnage is likely to continue based on technical retracements.
The department store chain’s stock dropped over 10% on Tuesday after retailer Kohl’s sour earnings report.
Quint Tatro, president of Joule Financial, isn’t counting the retailer out and is hoping on a turnaround for the worst performing S&P 500 stock.
Tatro said he won’t add a
The worst-performing S&P 500 stock is about to report earnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-20  Authors: michael affigne
Keywords: news, cnbc, companies, worstperforming, retail, report, 500, earnings, youre, gordon, tatro, technical, macys, stock, retailer, set


The worst-performing S&P 500 stock is about to report earnings

Macy’s may not be the best stocking stuffer this holiday season.

The retailer, which is down nearly 80% from its 2015 peak, is set to report earnings Thursday morning. TradingAnalysis.com founder Todd Gordon says that retail carnage is likely to continue based on technical retracements.

“The rule that we use if you’re looking at these retracements … basically if you break the 78%, roughly three-quarters, if you don’t hold that, the rule says you should retest the lows, and that’s at $5,” Gordon said Tuesday on CNBC’s “Trading Nation.”

Based on his technical analysis, when Macy’s broke below that three-quarters retracement of its 2015 highs at roughly $20, that set it on a course back down to $5. Macy’s would fall another 67% from its current price above $15 before reaching that level.

The department store chain’s stock dropped over 10% on Tuesday after retailer Kohl’s sour earnings report. Kohl’s fell nearly 19% on Tuesday leading the XRT retail ETF to its worst day of the month.

Looking at the technicals, Gordon doesn’t see much hope for beaten-down Macy’s but recommends a few other names with stronger qualities.

“I think we’re going to lows [in Macy’s]. There’s plenty of strong names in retail — Costco, Target — if you’re looking for clothing retailers. I would say a no-touch here in Macy’s,” said Gordon.

Quint Tatro, president of Joule Financial, isn’t counting the retailer out and is hoping on a turnaround for the worst performing S&P 500 stock.

“Personally, I added some shares today. The stock is interesting here. I am not normally a bottom-fish trader. I don’t try to catch falling safes, but the stock is trading like it’s going out of business,” Tatro said during the same segment.

Tatro points to Macy’s fundamentals and says investors would assume the company couldn’t cover their dividend.

“In reality, they’re set to earn around $2.50 next year, with $1.50 in dividends, so that’s covered. Debt to equity of 0.75, it’s not atrocious. And it’s got a current book value of around $20. So, the stock looked like it was bottoming,” Tatro said.

Tatro said he won’t add any more to his portfolio until he sees a dramatic turnaround in earnings growth and fundamentals.

“Ultimately, from a technical perspective, it’s got to break back above $17,” he said.

Disclosure: Tatro owns shares of Macy’s


Company: cnbc, Activity: cnbc, Date: 2019-11-20  Authors: michael affigne
Keywords: news, cnbc, companies, worstperforming, retail, report, 500, earnings, youre, gordon, tatro, technical, macys, stock, retailer, set


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Top-performing industrial stock could rally another 25% before hitting a wall, trader says

Industrial tech company Rockwell Automation rallied 11% on Tuesday, its best one-day gain since April 2009, after guiding for a strong 2020 performance. It was the day’s best stock on the XLI industrial ETF and one of the best in the past month. Todd Gordon, founder of TradingAnalysis.com, says the rally in Rockwell is not done yet. Quint Tatro, president of Joule Financial, says a different industrials stock is on the verge of a major breakout. It takes the stock around $106 so we think there’s


Industrial tech company Rockwell Automation rallied 11% on Tuesday, its best one-day gain since April 2009, after guiding for a strong 2020 performance.
It was the day’s best stock on the XLI industrial ETF and one of the best in the past month.
Todd Gordon, founder of TradingAnalysis.com, says the rally in Rockwell is not done yet.
Quint Tatro, president of Joule Financial, says a different industrials stock is on the verge of a major breakout.
It takes the stock around $106 so we think there’s
Top-performing industrial stock could rally another 25% before hitting a wall, trader says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-13  Authors: keris lahiff
Keywords: news, cnbc, companies, stock, industrial, rockwell, rally, trade, think, best, 106, hitting, tatro, resistance, trader, wall, topperforming, gordon


Top-performing industrial stock could rally another 25% before hitting a wall, trader says

One top industrials stock just had its best day in a decade.

Industrial tech company Rockwell Automation rallied 11% on Tuesday, its best one-day gain since April 2009, after guiding for a strong 2020 performance. It was the day’s best stock on the XLI industrial ETF and one of the best in the past month.

Todd Gordon, founder of TradingAnalysis.com, says the rally in Rockwell is not done yet.

“This industrial looks very good,” Gordon said on CNBC’s “Trading Nation” on Tuesday. “I like to look at this from an Elliott Wave point of view, which is a theory that markets advance in trends of threes and corrections of two.”

The first wave, he says, began with a major rally in the two years after January 2009. It then consolidated over the following year and then kicked off a multiyear move higher before pulling back in 2018.

“The theory says we should go up and hit channel resistance,” said Gordon. “We had a massive, massive launch ramp right through the $200 region. We had a breakaway gap. That is now your support if you want to trade it, or invest in it. I’m looking at adding this to my portfolio. … You will collide with resistance I think above that $250 level so that’s the upside technical resistance.”

Rockwell would need to rally more than 26% to reach Gordon’s resistance level at $250. That would also mark a new record.

Quint Tatro, president of Joule Financial, says a different industrials stock is on the verge of a major breakout.

“Our favorite in the group right now Eaton Corp.,” Tatro said during the same segment. “When the stock has really been firing on all cylinders, the investment community is willing to pay up to 18 times. We think that can happen here with some multiple expansion. It takes the stock around $106 so we think there’s still some legs.”

Eaton currently trades at 15.6 times forward earnings. A move to $106 marks 15% upside.

If a trade deal between the U.S. and China were to come to pass, Tatro said, Eaton’s potential could be even higher.

“It’s only based on current estimates and what we think the confidence is happening here within the investment community. If the trade deal does come to fruition and earnings are revised higher, then obviously the stock can go much farther than $106,” he said.

Disclosure: Gordon is planning to invest in Rockwell Automation; Joule Financial holds Eaton.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-11-13  Authors: keris lahiff
Keywords: news, cnbc, companies, stock, industrial, rockwell, rally, trade, think, best, 106, hitting, tatro, resistance, trader, wall, topperforming, gordon


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Cisco tumbles on Goldman downgrade, but two traders see a buying opportunity

Cisco slid nearly 2% on Thursday, the worst performer in the Dow, after Goldman Sachs turned more cautious on the stock. Matt Maley, equity strategist at Miller Tabak, said the stock now faces a level that could kick off a major bounce. But it’s a great level that has held the stock several times in the past,” Maley said Tuesday on CNBC’s “Trading Nation.” Quint Tatro, president of Joule Financial, sees a buying opportunity in the Cisco pullback. “Cisco … is trading around 13 times forward earni


Cisco slid nearly 2% on Thursday, the worst performer in the Dow, after Goldman Sachs turned more cautious on the stock. Matt Maley, equity strategist at Miller Tabak, said the stock now faces a level that could kick off a major bounce. But it’s a great level that has held the stock several times in the past,” Maley said Tuesday on CNBC’s “Trading Nation.” Quint Tatro, president of Joule Financial, sees a buying opportunity in the Cisco pullback. “Cisco … is trading around 13 times forward earni
Cisco tumbles on Goldman downgrade, but two traders see a buying opportunity Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: keris lahiff
Keywords: news, cnbc, companies, buying, trading, opportunity, traders, times, moving, tatro, maley, level, great, downgrade, cisco, stock, goldman, past, joule, tumbles


Cisco tumbles on Goldman downgrade, but two traders see a buying opportunity

Cisco slid nearly 2% on Thursday, the worst performer in the Dow, after Goldman Sachs turned more cautious on the stock.

Analysts at the firm downgraded the tech name to neutral and cut the price target to $48 from $56 on fears trade uncertainty could hurt profitability.

Matt Maley, equity strategist at Miller Tabak, said the stock now faces a level that could kick off a major bounce.

“This one is at the 100-week moving average. This is a stock that has bounced off that 10 different times in the last three years. It did break below it at the very beginning of 2016 when the whole market went down. But it’s a great level that has held the stock several times in the past,” Maley said Tuesday on CNBC’s “Trading Nation.”

“The 100-week moving average is also its August lows, so if it breaks below that it will break below two key moving averages. So again, you want to have tight stops on this name. But it’s been a great area where the stock has been able to bounce in the past so it looks like it could be another one this time around,” said Maley.

Quint Tatro, president of Joule Financial, sees a buying opportunity in the Cisco pullback.

“Cisco … is trading around 13 times forward earnings having grown those earnings recently around 30%. But more importantly, the stock has an exceptional balance sheet, yields about 3% dividend, unbelievable free cash flow,” Tatro said during the same segment. “That’s a name that as that comes in, that would be the only one that we see value in and we’d be willing to be a buyer here. We still own the shares, but we’d certainly consider adding more.”

Disclosure: Joule Financial holds a position in Cisco.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: keris lahiff
Keywords: news, cnbc, companies, buying, trading, opportunity, traders, times, moving, tatro, maley, level, great, downgrade, cisco, stock, goldman, past, joule, tumbles


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

These five stocks are the best performers since man landed on the moon

Fifty years ago, man landed on the moon and a handful of stocks took off into the stratosphere. At least one of those stocks still has more fuel in its jet, says Craig Johnson, chief market technician at Piper Jaffray. “The second stock is Disney,” Johnson added. Ride-hailing companies Uber and Lyft have underperformed since making their market debut earlier this year. Disclosure: Tatro and Joule are long Disney, Lyft and Uber.


Fifty years ago, man landed on the moon and a handful of stocks took off into the stratosphere. At least one of those stocks still has more fuel in its jet, says Craig Johnson, chief market technician at Piper Jaffray. “The second stock is Disney,” Johnson added. Ride-hailing companies Uber and Lyft have underperformed since making their market debut earlier this year. Disclosure: Tatro and Joule are long Disney, Lyft and Uber.
These five stocks are the best performers since man landed on the moon Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: keris lahiff
Keywords: news, cnbc, companies, stock, disney, lyft, stocks, moon, companies, tatro, market, johnson, uber, best, performers, price, perspective, landed, man


These five stocks are the best performers since man landed on the moon

Houston, we have liftoff.

Fifty years ago, man landed on the moon and a handful of stocks took off into the stratosphere. Since July 1969, McDonald’s has rocketed more than 82,000%, Lowe’s nearly 70,000%, Altria 49,000%, Hasbro 43,000% and Disney 40,000%.

At least one of those stocks still has more fuel in its jet, says Craig Johnson, chief market technician at Piper Jaffray.

“If you look at McDonald’s, it’s been a slow and steady burn higher here in this stock and from our perspective, there’s been this really nice price channel that’s been unfolding over the past five years,” Johnson said Thursday on CNBC’s “Trading Nation. ”

“A move to the upper end of the price channel can put this stock up toward $265, so from our perspective that’s one that we would continue to focus on,” said Johnson.

A rally to $265 implies 23% upside from current levels. It would also mark a record for the stock, which hit an all-time high Thursday.

“The second stock is Disney,” Johnson added. “This stock has been forming a really nice consolidation over the last five years. It recently just broke out. We added it into our model portfolio and from our perspective based upon the size of the breakout, we could see this stock moving up toward $160. So clearly this is a stock that has more room to run.”

Disney could add another 13% before it hits $160, also a record high for the stock, which hit an all-time peak a week ago.

Quint Tatro, president of Joule Financial, says Disney is the best in show among the top winners over the last half century.

“This is a company that continues to reinvent themselves. We like them. We own them. We do believe in the next 50 years, we’ll still be talking about Disney,” said Tatro.

However, Tatro is more excited about the companies whose innovation will dominate the consumer space, and stock market, over the next 50 years.

“We do like what we believe are the future of great American franchise companies like an Uber or a Lyft and, I know not very popular, but our belief is that these industry-revolutionizing companies are going to be the ones that compound over the next several decades and the ones that provide the great opportunities going forward, ” said Tatro.

Ride-hailing companies Uber and Lyft have underperformed since making their market debut earlier this year. Uber is trading 3% below its March IPO price, while Lyft has climbed 9% off its own.

Disclosure: Tatro and Joule are long Disney, Lyft and Uber.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: keris lahiff
Keywords: news, cnbc, companies, stock, disney, lyft, stocks, moon, companies, tatro, market, johnson, uber, best, performers, price, perspective, landed, man


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

After Chevron’s biggest sell-off in a year, market watcher sees opportunity

The major oil company tumbled 5% on Friday in its biggest one-day drop since February 2018 after announcing a $33 billion deal to buy Anadarko Petroleum. While Chevron dropped on the deal, Joule Financial founder Quint Tatro sees opportunity in its weakness. “Even though the group as a whole seems to be getting a boost, obviously Chevron, the buyer, is not,” Tatro said on CNBC’s “Trading Nation” on Friday. Craig Johnson, chief market technician at Piper Jaffray, is more conservative on the energ


The major oil company tumbled 5% on Friday in its biggest one-day drop since February 2018 after announcing a $33 billion deal to buy Anadarko Petroleum. While Chevron dropped on the deal, Joule Financial founder Quint Tatro sees opportunity in its weakness. “Even though the group as a whole seems to be getting a boost, obviously Chevron, the buyer, is not,” Tatro said on CNBC’s “Trading Nation” on Friday. Craig Johnson, chief market technician at Piper Jaffray, is more conservative on the energ
After Chevron’s biggest sell-off in a year, market watcher sees opportunity Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: keris lahiff, daniel acker, bloomberg, getty images, vcg, bryan r smith, afp, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, chevron, petroleum, tatro, market, selloff, chevrons, biggest, names, watcher, sees, xle, obviously, energy, trading, opportunity, oil, youve


After Chevron's biggest sell-off in a year, market watcher sees opportunity

Chevron is starting the week fresh on the heels of its worst day in more than a year.

The major oil company tumbled 5% on Friday in its biggest one-day drop since February 2018 after announcing a $33 billion deal to buy Anadarko Petroleum. Occidental Petroleum also reportedly is interested in the oil and gas exploration company.

While Chevron dropped on the deal, Joule Financial founder Quint Tatro sees opportunity in its weakness.

“Even though the group as a whole seems to be getting a boost, obviously Chevron, the buyer, is not,” Tatro said on CNBC’s “Trading Nation” on Friday. “You’ve got to look at a name like this that is trading 14 to 15 times forward earnings. … Obviously they’re spending $30 billion to try to grow that profit, so we like the acquisition.”

Chevron is expected to post a 2019 earnings contraction of 14 percent, followed by a 23 percent surge in 2020, according to FactSet.

“We need to do a lot more work really into the fundamentals to see how this will be accretive to the bottom line,” said Tatro. “Basically it expands their shale play, their deep-water drilling, so it’s hard to do but ultimately I think this is a day where you’ve got to hold your nose and you go in and you add to your Chevron position.”

Tatro also likes Chevron for its strong balance sheet and steady dividend. The company yields 4%, double the S&P 500.

Craig Johnson, chief market technician at Piper Jaffray, is more conservative on the energy group as a whole.

The XLE energy ETF “still is at a point where we need to get above about $68. That’s where your 200-day moving average is at, which is declining,” Johnson said Friday on “Trading Nation.” “There’s still a long way to go. Again, I like energy, but I’m more of a neutral to these names. Is the M&A activity going to put a little bit of a bid under these names? It probably will, but I’d rather be a selective buyer of these names, especially the XLE.”

The XLE ETF has not traded above its 200-day moving average since October. It has fallen 7% since then.

Disclosure: Joule Financial holds CVX.


Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: keris lahiff, daniel acker, bloomberg, getty images, vcg, bryan r smith, afp, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, chevron, petroleum, tatro, market, selloff, chevrons, biggest, names, watcher, sees, xle, obviously, energy, trading, opportunity, oil, youve


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Wells Fargo’s stock is a ‘classic value trap,’ strategist warns

Betting on Wells Fargo might not be a safe bet, according to one strategist. But even these lows aren’t enough to make Joule Financial founder and investment chief Quint Tatro get bullish on Wells Fargo. “With Tim Sloan gone, I think that’s a positive, but they’ve got to bring somebody in who’s going to innovate. Still, he couldn’t completely discount Tatro’s argument that Wells Fargo isn’t exactly the cream of the crop in the financial sector. I don’t hold Wells Fargo.”


Betting on Wells Fargo might not be a safe bet, according to one strategist. But even these lows aren’t enough to make Joule Financial founder and investment chief Quint Tatro get bullish on Wells Fargo. “With Tim Sloan gone, I think that’s a positive, but they’ve got to bring somebody in who’s going to innovate. Still, he couldn’t completely discount Tatro’s argument that Wells Fargo isn’t exactly the cream of the crop in the financial sector. I don’t hold Wells Fargo.”
Wells Fargo’s stock is a ‘classic value trap,’ strategist warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-30  Authors: lizzy gurdus, shannon stapleton, scott mlyn, brendan smialowski, afp, getty images, rosley majid, eyeem, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, stock, hold, tatro, gordon, fargos, warns, thats, trading, think, disrupted, strategist, trap, wells, classic, going, value, fargo


Wells Fargo's stock is a 'classic value trap,' strategist warns

Betting on Wells Fargo might not be a safe bet, according to one strategist.

The stock caught Wall Street’s attention Thursday following the company’s announcement that CEO Tim Sloan was retiring effective immediately. Shares initially surged on the news in after-hours trading before reversing and shedding over 1.5 percent in Friday’s session.

But even these lows aren’t enough to make Joule Financial founder and investment chief Quint Tatro get bullish on Wells Fargo.

“If you want to own a stock like this for the dividend, I think that’s fine, but if you’re looking for any sort of capital appreciation or upward bias over the next year or so, I think you’re going to be sadly mistaken. It’s a classic value trap,” Tatro said Friday on CNBC’s “Trading Nation.”

Some fundamentalists will argue that Wells Fargo is indeed a safe bet that gives investors a “decent return on assets” and pays out roughly $7 a share, but its problems may outweigh its benefits, Tatro argued.

“The problem is, obviously, they have a major public issue. They lost all trust,” he said. “With Tim Sloan gone, I think that’s a positive, but they’ve got to bring somebody in who’s going to innovate. Fifty percent of the business is community banking. That’s being disrupted before our eyes. About 20 percent is wealth management; also being disrupted. So their major segments are in areas that they’ve lost confidence in, and they’re going to see continued decrease in margins because their industries are totally being disrupted and they’re not doing a thing about it.”

TradingAnalysis.com founder Todd Gordon admitted he wasn’t quite as bearish, noting that Wells Fargo shares have been in an uptrend for the better part of a decade.

“If you look at … the map of where we’ve been post-2009, it’s traced a very nice parallel channel here,” Gordon said in the same “Trading Nation” interview. “We’ve not quite broken that uptrend that’s been in play for nine years now.”

Still, he couldn’t completely discount Tatro’s argument that Wells Fargo isn’t exactly the cream of the crop in the financial sector.

“I agree with Quint; there is value in other names,” Gordon said. “I hold J.P. Morgan. I hold Bank of America in my portfolio. I don’t hold Wells Fargo.”


Company: cnbc, Activity: cnbc, Date: 2019-03-30  Authors: lizzy gurdus, shannon stapleton, scott mlyn, brendan smialowski, afp, getty images, rosley majid, eyeem, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, stock, hold, tatro, gordon, fargos, warns, thats, trading, think, disrupted, strategist, trap, wells, classic, going, value, fargo


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post