we're here to break down the new meme stock craze
is Lance Eppolito head trader at new money crew Lance
, it's good to see you, why is this
stock surging so dramatically? I think it's a combination
of a few things, a bankruptcies are bullish apparently
in the stock market and we, we could take
a look at Hertz, uh, during the whole
, uh, you know, pandemic fall and then
boom of the meme stock craze where you know,
hurts, rallied, I think 500% off the lows
and we've seen Revlon rally 650% off the lows.
Um, so when they went bankrupt apparently shortly after
a company out of India Came out and said,
Hey, we might look to acquire Revlon and that
really got shares moving higher. I think one day
they were up something like 110%. But what's fun
at least from a trading perspective is, you know
, you're having this kind of volatility and these kind
of movement that the Wall Street bets or the Reddit
traders that we heard of so much over the past
couple of years, you know, they are really
sending, uh, volume in the stock and obviously
we've seen a huge move higher, I think something
like 100 plus million shares have been trading and Revlon
and that was just shy of Tesla over the past
couple days we've been seeing. So Lance, what's
interesting is revlon seems to be a similar case to
what happened to hurts a few years ago that car
rental company now paying big bucks to have tom brady
as its spokesperson, also filing for bankruptcy retail traders
pile then they sent the stock soaring. What are
the risks involved? And do you think revlon will
go the way of hurts? Uh, that's a
hard long term decision to make and in the short
term obviously a 650% move and what a week or
so is tremendous. But really with these meme stocks
is you wanna, what I call date them.
You don't want to get committed. You don't want
to marry them long term, you don't want to
own them, you know, for years or so
. And that just goes back. If you look
at some of the meme stocks in the past like
AMC like aversion galactic like a sofa. I like
a Gamestop. You know, these names really fell
from their highs and now they just really don't trade
that much or they don't move as much I should
say as they used to. But um, if
I was looking, let's say at a beauty or
cosmetic stock as a possible investment or buy and hold
something with a little bit better fundamentals. I would
look at companies like Cody beauty C. O.
T. Y. I think they have a partnership
with kylie Jenner and alta. All the beauty there
in target stores. Ticker U. L. T
. A. Well another question that I have is
retail in general. Some concerns that we could see
more bankruptcies that Revlon won't be the last and certainly
at the start of the pandemic two years ago,
we saw a host of bankruptcies as well. I
know you mentioned a few companies like Cody for instance
, that according to your analysis do have pretty strong
balance sheets, they can weather the storm, but
if a recession does come lance, what do traders
need to know about the retail space in general when
they think about where to put their money? I
think we've actually seen the, you know, the
stock market is forward looking and we've actually seen a
lot of retailers, if you look at the mall
retailers, for example, even if you look at
your big box retailers like walmart and and target these
names have sold off tremendously already. And, and
I don't think you're gonna have obviously big box retailers
go bankrupt maybe, uh, you know, some
of the smaller companies out there. But these,
I mean these charts are just horrendous to be honest
with you. And I think you've had The recession
fears already priced in most of these retailer names out
there. Kind of, my rule of thumb rule
of thumb is if the stock is under$5,
so we'll say a retail stock under$5 or so
, just avoid it because when the stock gets in
that territory, the volatility is just there, the
chance of bankruptcy is there and you really just don't
want to be involved in it unless you're really day
trading it, you can take that risk. Okay
, so that's the threshold that everyone has to remember
. Lance, I'm glad you gave that to our
viewers. But yes, questions about a recession,
whether or not it will happen, consumers will they
pull back on spending? I mean, certainly we've
already seen a shift in what consumers are buying different
to what they were buying during the pandemic now too
. This current environment. I'm just curious your take
on consumer spending and what it might mean for retail
this summer. So I'm gonna go out complete 180
of what everyone's talking about. And I actually think
we're gonna see a strong consumer and the reason for
that is I believe we're gonna have a energy prices
, especially at the pump gas prices which have already
been coming down over the past few days. I
think you're going to have, uh, gasoline prices
come down more people are gonna go out and spend
. So you look at names like Nordstrom Macy's,
especially the luxury names, they really held up well
, even over the past few months, the luxury
retailers, people are gonna go out drive again because
gas prices are lower and they're gonna spin. So
you're gonna see, uh, you know, your
targets, your walmart, your Nordstrom, even I
think your Lowe's and Home Depot. I know everyone's
scared about housing, but those retailers too are starting
to actually look really attractive here. All right,
Lance, Ipolito head trader at new money. Crew
Lance, thanks so much for coming on the show --> .