3 Stocks I Saw on TV
Constellation ( STZ) has announced a $300 million stock buyback. Its CEO Rob Sands was brought on the show Thursday to deliver good news. He sees the wine market being "very buoyant," with growth in the mid to double digits. He said that operating margins were down in the first quarter due to high promotional spending -- which he said has paid off by driving a lot of growth -- and that they will be normalized for the rest of the year.The CEO said that Constellation's best growth will be in the U.S. and North America -- they will be the most buoyant market for wines. Sands said the U.S. wine market remains relatively immature. "We're pretty bullish on North America." After Sands left the show, Tim said that Constellation's valuation "is actually very good, at nine times compared with its peer group," while noting that their business is not "high end stuff." Tesla Motors ( TSLA) had its IPO this week, and Joe said the excitement over the event shows that private investors are eager to get involved in clean energy; "another reason to own Tesla." Another much-anticipated auto IPO is that of GM, which is expected to occur later this year. That said, Melissa wondered, "should you keep your focus on Ford ( F) or has the fast money been made? She also mentioned that Ford may reinstate its dividend. Guy still prefers Ford as a trade. "They're doing everything right. I don't think GM is their competition," he said. GM was its competition a few years ago, but not anymore, he believes. On the home-improvement retailer front, Melissa mentioned that BMO analyst Wayne Hood has raised both Home Depot ( HD) and Lowe's ( LOW) to market perform from underperform. He was on the show to comment. Hood said that for the two to have a new beginning, it would require a low single-digit increase in comparable-store sales. "Consistent low single-digit growth could deliver above-average growth," he said, noting that they have some of the best business models in the industry. Toward the end of "Fast Money," Melissa asked the other commentators about any lousy trades they've made recently. Guy thought of Qualcomm ( QCOM), surprised that this bellwether stock hasn't done much in the market. Joe said that his XLY ( XLY) puts have cost him a lot of money. On BP ( BP), Grasso said "don't catch a falling knife. Don't be a hero."
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