Each morning, Dan Fitzpatrick at RealMoney.com, talks about three stocks featured on CNBC's "Fast Money" and "Mad Money" and gives his thoughts on how investors can use those ideas to grow their money. Good trading, he says, takes more than just writing down the tickers on TV, and punching the buy button the next morning. Today's stocks include Morgan Stanley, Entegris, and Lululemon.
On Friday, "Fast Money" had an analyst on who said that Morgan Stanley was dirt cheap. But Fitzpatrick thinks the stock is "looking a bit precarious." He does think it may be nearing the bottom after the stock rebounded from a sharp intraday drop before closing near the top.
The next stock Fitzpatrick is Entegris, a stock Jim Cramer featured on "Mad Money," on Friday as a speculative pick. The stock has been trading up in the past several months and Fitzpatrick said it could be a winner, but he cautions against buying without waiting for the market reaction to Friday's show. If it breaks out when the market opens, he said it is better to wait and see where the stock closes today. However, Fitzpatrick says he does think if it breaks out and stays above the current trading level, it probably has potential to grow.
Finally, Fitzpatrick takes a look at Lululemon, which specializes in yoga apparel. Cramer featured it on "Mad Money," on Friday, noting that the company's biggest issue was supply. Fitzpatrick said this was unlike a lot of retailers and apparel manufactures, who have trouble with demand, unless they discount their products."Lululemon doesn't discount their stuff because they don't have enough of it," Fitzpatrick said. The company he said is trading at a high multiple and he believes the multiple will go even higher once they are able to produce and sell more apparel. Lululemon has pulled back some so Fitzpatrick recommends letting the stock settle before taking a position. But ultimately, he sees it moving higher and recommends taking some stock once it starts moving up again but advises to plan to take more if it pulls back after that initial position.