Will Goldman Shine? Fast Money Recap (6/16/08)
Recap of CNBC's Fast Money, Monday June 16. Click on a stock ticker for more analysis.
Gassing Up: Chesapeake (CHK), AMR (AMR)The Dow finished lower on worries about the economy, but Najarian pointed out volatility is also lower, thanks to the drop in oil prices. However, oil initially rose to a record high of $139 before it fell on the news that Saudi Arabia will beef up production. Joe Terranova said everything points to Friday, when the contracts come off the front of the board. However, he would buy natural gas. Najarian is bullish on CHK and AMR.
Will Goldman (GS) be Golden? Lehman Brothers (LEH), Morgan Stanely (MS)
All eyes are on Goldman’s earnings on Tuesday followed by Morgan Stanley’s on Wednesday. Sandler O'Neil brokerage analyst Jeff Harte thinks neither GS nor MS will miss, and if the latter does poorly, it will be due to aggressive hedging. Lehman answered questions concerning its solvency on Monday after reporting its first-ever lost, but its future is uncertain. Ultimately, Harte would not buy the banks this summer. Adami thinks the trade has been made in Lehman; he isn’t long but he wouldn’t short the stock. The group observed GS has risen 7% and may give financials a boost.
Dollar Drops
The dollar fell after a three day rally, and Joe Terranova commented he was disappointed by the G-8 Conference. Terranova doesn’t think the dollar will plummet, but isn’t optimistic either. Adami thinks the dollar will rise in the second half of the year, and Macke thinks it will draw back.
Fill It to the RIM: Research in Motion (RIMM), Apple (AAPL)
RIM jumped 7% on Citigroup recommending the stock on Apple’s decline. Najarian says RIM is firing on all cylinders, but Apple’s story is far from over. Adami would own both, and Terranova says Apple is a buy with a stop at $146.
Teeing Off: Callaway (ELY)
Callaway jumped in after hours trading on the huge success of the U.S. Open. Adami says he wouldn’t run to buy ELY, but Tiger Woods doesn’t hurt the company.
Merger Brewing: Anheuser-Busch (BUD), Grupo Modelo (GMBXF)
InBev warned BUD that flirting with Modelo might cost the company the premium InBev is offering for the deal. While Macke thinks Busch has been a great American company, he hopes BUD will learn from Yahoo’s mistakes and go for the money.
Who’s Listening? XM Satellite Radio (XMSR), Sirius (SIRI)
FCC chairman Kevin Martin finally indicated he would approve a deal between Sirius and XMSR as long as they wouldn’t impede competition. However, Macke thinks these stocks have already been terribly beaten in the long ordeal.
Chip Tip: Rambus (RMBS)
Najarian says bullish options activity make Rambus a stock worth watching.
Steel Deal: Arcelor-Mittal (MT), U.S. Steel (X)
Arcelor-Mittal announced it will buy Bayou Steel for $475 million. Adami doesn’t think steel has been performing well and wouldn’t buy X. Terranova likes the metal and predicts there will be a steel ETF in 2009.
Fed’s Next Move
Dennis Gartman joined the program to discuss the Fed’s next move. He predicted the Fed will not raise interest rates, and Macke agreed. Adami thinks the Fed will raise a quarter of a point, while Terranova and Najarian thinks the rates will be raised more significantly. Gartman doesn’t believe the dollar will get stronger any time soon.
High Energy Plays: UltraShort Oil & Gas Proshares (DUG), SunPower (SPWR), Energy Conversion Devices (ENER), MEMC Electronics (WFR), Honda (HMC), IBM (IBM)
Gartman said oil’s sudden rise and fall was poor action and Adami would look at DUG. IBM is lending a hand to help develop more efficient solar technology. On the news Sunpower was upgraded, Adami would look at WFR, but Terranova says there isn’t sufficient interest in alternative energy. Energy Conversion Devices surged 20% on news it will get into the solar space and Najarian likes the stock. Honda released its hydrogen-fuel car which produces no harmful emissions and is more efficient than both gas-powered and hybrid cars. Macke, though, was skeptical and said Honda is jaw-boning and might as well be selling pixy dust.
King Corn: Pilgrim’s Pride (PPC), DuPont (DD)
Corn prices rose 11% last week as the Midwest fields were flooded, and Terranova noted corn prices, like oil, rose and then dipped lower. He and Adami recommended PPC and Najarian likes DD.
Trader Radar: Hershey's (HSY) traded on unusual volume on Monday.
Consuming Worries: Disney (DIS), Best Buy (BBY), Imax (IMAX), DirecTV (DTV), Wal-Mart (WMT)
Macke likes Disney given the lagging consumer confidence, because the company provides cheap entertainment. He comments BBY will probably report a weak quarter, but will say they sold a lot of tvs. Although it is controversial, Macke also chose IMAX and DTV. Terranova’s weak consumer pick is WMT.
Final Trade: Macke: Callaway and Nike (NKE), Adami: DUG, Terranova: Starbucks (SBUX), Najarian: Rambus
Seeking Alpha is not affiliated with CNBC, or Fast Money
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This article has 2 comments:
- User 168418
- 55 Comments
Jun 17 10:07 AMIt has been a long ride to say the least.........I am glad that's at least closer to the finish line. My feeling are this has already been approved deal with the FCC otherwise Martin would not have come out swinging. It will be 4 to 1 approve be end of June. Sour grapes to the NAB and their back pocket buddies.
- brewer
- 383 Comments
Jun 18 12:00 PM