Industrial distributor Grainger raised its dividend on Thursday, a week after posting strong earnings and raising its full year outlook.
So why do the Fast pros say going forward, the stock is a short?
“The stock has rallied about 100% in an 8 month period and now Amazon has launched something that’s tantamount to a turf war.”
As CNBC's Fast Money first told you on Monday, Amazon launched a new beta site, AmazonSupply.com in an attempt to win some of the lucrative home improvement market. The site offers a wide range of products from nuts and bolts to trash cans.
Iurio thinks one of the companies that Amazon has in its cross hairs is WW. Grainger. And he doesn't think they're ready for what's coming.
“There are a long list of companies that have gone up against Amazon, and they’ve been taken out to the proverbial woodshed,” adds trader Mike Muprhy. “I think Granger is going to be in a big surprise.”
All told, “Seems like the stock should correct. This feels like the spot to sell,” Iuorio says.
And like every good trader, Iuorio has set a stop just in case the trade goes against him. “I sold at 209.50 but I stop out at $216.”
