Archive for the ‘Fast Money’ Category
Thursday, August 23rd, 2007
Stracey Gilbert “The Hammer” was on the show instead of Eric Bolling today and has a negative view on the market. On the market, Jeff Macke say that the shorts were just covering and there were some merger news to help the market up. Stacy Gilbert suggest that the market did not hit bottom yet. Pete Najarian says the agriculture plays were moving the market but Gilbert says this is not a buyers market but a stock pickers market.
Guy Adami says the Etrade (ETFC) and TD Ameritrade (AMTD) deal will happen and the New York Mercantile Exchange (NMX) and the New York Stock Exchange (NYX) may not happen because someone else may buy them instead. Dylan Ratigan says notice that none of the buyouts are private equity because the deals has dried up.
Stacey Gilbert says that the airlines may see some consolidation but Najarian disputes it. Macke says sell the airlines and where’s his wife’s bag that Delta lost!
Najarian and Gilbert says that the metals industry is moving. Najarian pointed out Alcoa (AA)
Abercrombie & Fitch (ANF) moved up despite guiding down but Macke says that the consumer is not dead while Ratigan says the younger folks not the Generation Y are the consumers.
Apple (AAPL) is seeing action. Najarian says there is a lot of call options and says that it’s about the other products not the iPhone. Adami on the other hand says there is some downside.
Netease.com (NTES) got good reviews from Ming Tsao who works with Gilbert and says that there is growth.
Bristol Myers (BMY) and Schering Plough (SGP) saw a lot of good call options. While Adami says watch out for a drop in Merek (MRK) because of insider selling.
Lehman Bros (LEH) moves up because Macke says the Fed is backing them but in the long term it’s not a good thing.
Bank of America (BAC) takes a 2 billion dollar piece of Countrywide Financial (CFC) at 20% share at great terms for Bank of America. Macke says the winner is Bank of America because they were buying a dollar for $0.80. Note: Warren Buffet bought Bank of America. While Gilbert says she doesn’t like financials and there are some problems. Cognizant Technology (CTSH) is a financial provider for IT and is a play for growth. Najarian says Citigroup (C) is looking good while Adami says BAC and US Bankcrop (USB).
Dubai picked up $5 Billion of MGM. Najarian it’s an area to look into Starwood (HOT) which is seeing activity and Gilbert owns it. Wyndam Worldwide (WYN) is a good one with it’s buy back. Gilbert recommends Gaylord Entertainment (GET) is a convention company.
Gap (GPS) who just found a new CEO has earnings tomorrow. Najarian says it’s an ok buy because it’s way down already.
IRobot Corp (IBOT)’s CEO was on show and talked more their military and consumer divisions. In 2006, it’s 40% consumer and 60% military but they wear expanding their consumer division quick. Macke, Najarian, Gilbert, and Adami says it’s a buy. Adami noted the 18% short interest…did someone say short squeeze!
POPS:
Abercrobie & Fitch (ANF) – Macke says don’t buy or short.
China ETF (FXI) – Najarian says own till Beijing
Hong Kong ETF (EWH) – Adami says it’s a buy
Blue Cost Systems (BCSI) – Gilbert says buy
Network Appliance (NTAP) – Adami loves it even here
US Airways (LCC) – Gilbert says that not to buy it on the upgrade
Foster Wheeler (FWLT) – Macke says the easy money is gone - don’t chase
DROPS:
Tween Brands (TWB) – Macke says good bye
Fleetwood Enterprises (FLE) – Najarian says stay away.
South Africa Trade: South African ETF (EZA) Najarian says you can wait and Macke says perhaps wait till 2010 World Cup.
Final Trade: No trades..they picked the MBA challenge Yale or Texas. Anyhow where is Eric? You must read about my conspiracy theory about why Eric Bolling is gone.
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Wednesday, August 22nd, 2007
Well we’ve all been wondering where is Eric Bolling? I think there is a huge tell by his disappearance and the news about New York Mercantile Exchange (NMX) buyout news? Well the NYMEX Chairman Richard Schaeffer said the company is discussing a merger. Schaeffer said any offer for NYMEX would have to be at a “meaningful premium” to the company’s current share price. Meaningful huh…how meaning full. The stock closed at $126.06. (Disclosure I own shares). Well there are calls for $155 to $165. I think it’s reasonable. Well I say reasonable because that would make me a pretty penny. Anyways, the NMX is selling their building. They wants to be bought and announced negotiations. But why? Well to increase the bid price of course. Hype sells. Who are the bidders? The New York Stock Exchange Euronet (NYX) of course across the street but the hype will bring more people to the table to drive the price up. How do Eric play into this? Well he’s listed as a strategic advisor. Well it’s time to be strategic and he’s probably somewhat included in the intense negotiations so that’s why no one know? Conspiracy? I think not!
Eric Bolling Profile
City: New York
Exchange: NYMEX
Age: 43
What He Trades: Natural-gas futures are Bolling’s market of choice, though he got his start in crude oil. “If you think of the crude-oil pit as a $100-minimum table,” he explains, “then natural gas is the $1,000-minimum table. It’s hugely volatile.” The international nature of energy appeals to him. “Chicago has a lot of grain markets and agricultural pits where the markets are localized, but energy is global. Something can happen in Saudi Arabia that has ripple effects from Shanghai to Manhattan.” Bolling owns two seats on the NYMEX, two on the Comex and two on the NYBOT.
How He Trades: Bolling is down in the pits all day, every day. When trading ends, he monitors his positions electronically. Still, he remains a devotee of the cut and thrust of the floor: “When something happens in the market, they all go to open-outcry, because that’s where the volume is.”
Bolling represents a lot of that volume, claiming responsibility for as much as 5 percent of the action in the natural-gas pit. Six-foot-one and a former professional third baseman, he says the physical and mental edge that comes from competitive sports gives him an advantage. “When you’re on the field or on a court, there’s a process you go through in your mind that is similar to making a commodities trade or a pit trade. Not necessarily an upstairs, long-range hedge-fund manager’s trade. But in an instantaneous pit trade, athletes are very good.”
How He Got Started: In 1985, Bolling, drafted out of Rollins College by the Pittsburgh Pirates, was playing for their single-A affiliate in Bradenton, Florida, when a routine grounder came his way. “I picked up the ball, turned to throw and heard a pop in my shoulder,” he says. “That was it, the end of my career.” He started looking for other jobs. A Chicago native, he had seen the serious money to be made at the exchanges. Later that year, he found himself on the energy desk for Prudential-Bache in Boston.
“I realized that the people really making money were on the trading floor. So I did whatever it took to get down there.” He leased his first seat in 1987 and bought his first seat the next year.
Estimated income: $10 - $15 million
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Wednesday, August 22nd, 2007
First words from the Fast Money Traders: Volatility is going down according to Pete Najarian. Constance Hunter said that she would be a buyer. Adami says everything is just resting.
Pete Najarian says that now that everything is becoming transparent, banks are going up like Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) are close to buys.
TECH TRADE: Najarian recommends EMC (EMC) who is breaking new highs of recent while Adami says Network Appliances (NTAP) is the one to watch. Contact Hunter says Apple (AAPL) is looking strong. Macke says Intel (INTC) is the real one.
Target (TGT) had good earnings but Macke says specialty retailers like Zumiez (ZUMZ) and Gamestop (GME) are the trade and should start to take some off basically sell into earnings. Hunter says that based data that wages were up 7% and will support the retail market.
MEDTRONIC TRADE: Najarian says Medtronic (MDT) is a buy on it’s afterhours weeknes.
DELL TRADE: Dell has problems with production. Sounds like a sell.
Argriculture TRADE:
Hunter says that this has nothing to do with the subprime problem and says they are oversold. Buy Potash (POT) and Agrium (AGU).
CHINA INFLATION TRADE:
Guy Adami says that the “shoe will fall” meaning that it will fall sometime. Hunter recommended iShares MSCI Hong Kong (EWH) as a trade because China will let money flow to the Hong Kong market. Huge money flow…I smell MONEY! Najarian says just own China into Beijing Olympics
RATE CUT TRADE:
Dividend ETF (DVJ), Kraft (KFT), and Johnson and Johnson (JNJ) was recommended by Najarian. Adami says Goldman Sachs (GS) to be bought now. Widsom Tree International Finance (DRF) should be the play according to Hunter because of weakness in the dollar. Jeff Macke says screw the financials because the rate cuts are priced in already!
TARGET BAROMETER TRADE:
Jeff Macke says the numbers were fine and Target says the consumer is just fine which is backed up by Hunter’s data about rising wages.
OIL TRADE: Drops 12% below $70.
Najarian says the energy is going further down and Energy SPR (XLE) is coming down. All the oil stocks are seeing a lot of put buying while airlines are a good play. While Adami says any event will push oil back up and he like Exxon (XOM). Macke says sell those airline stocks.
Dick’s Sporting Good (DKS) - CEO Ed Stack comes on the show as it jumps after raising earnings forecast. Stack claims that he can grow with a new golf chain. Hunter doesn’t like it but the guys, Adami, Najarian, and Macke says BUY IT!
POPS:
Apple (AAPL) - Adami says don’t buy yet.
Synchronoss (SNCR) - Najarian says stay away for now.
RealNetworks (RNWK) - Macke says sell because they can’t take down iTune.
Contential Airlines (CAL) - Hunters says it’s just short covers - she says SELL
VMware (VMW) - Adami says it’s good but don’t chase it.
Take Two Interactive (TTWO) Macke says sell it - it has no good games.
Costco (COST) - Mackes says it’s still a buy
Starwood (HOT) - Najarian says options activity says to watch it.
Amazon.com (AMZN) - Jeff Macke says it’s just shorts getting killed.
DROPS:
Toll Brothers (TOL) - Adami used the work “SUCK” that is self explanatory.
Hess Corp (HES) Energy dropping because of oil - Hunting
Infosys (INFY) drops because of banks weakness because they do IT for them. Hunter says buying opportunity.
Saks (SKS) - Adami says it’s a sell
iShares MSCI Swedent (EWD) - Hunter says go long. Macke says go long too.
FINAL TRADES:
Macke says sell TTWO
Adami says buy Target (TGT)
HXM Hunter Buy Mexcio home builder, Homex (HXM)
Najarian says buy Under Armour (UA)
UST (UST) - Najarian says sell because of competition
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Tuesday, August 21st, 2007
The RECAP:
The traders all seem a little scared of the market as they see that the treasury market is showing that the problems with credit is not being solved by the recent Fed move and most of them suggested safe names in railroad and tech. There wasn’t much in suggestions to buy and they noted that volume was light today. Volatility remained high and that was a bad sign. A good indicator for the economy is the reports and guidance for all the retailers this week.
WORD on the STREET:
The market moved higher on Bernanke-Dodd meeting. Najarian noted that railroad stocks moved. Union Pacific (UNP) and Burlington Norfolk (BNI) were noted. Stacey Gilbert, “The Hammer” said that everyone is tired but Guy Adami says the market looks encouraging. Eric Bolling is gone? I’m not sure. Anyone has news?
Najarian says financials are not on a bottom yet. Guy Adami says Berkshire Hathaway (BRKA) is at a 52 week high and you should buy what Buffet is buying like Bank of America (BAC). Macke again was skeptical of the market.
Chip trades were mentioned. Stacey Gilbert says tech is the safe haven as well as railroads.
Capital One (COF) closed their Alt-A mortgage division, GreenPoint Mortgage and Guy Adami says that’s it’s going to be a problem for all of the financial market but everything is priced in. While Najarian and Gilbert says that the unknown is becoming a huge issue. Najarian and Gilbert are options specialist.
Lowe’s (LOW) moved up on earnings and guided down but does it mean it’s better; Jeff Macke says no! It’s just bouncing off a low and according to Dylan Ratigan “because they didn’t suck that bad.”
Freeport McMoran (FCX): Gilbert and Adami says it’s a buy here! While Macke says no!
Fluor (FLR) - moves up on 2B Kuwait contract and some more contracts. Adami says own it!
Medtronic (MDT) earnings tomorrow? Buy or no? Najarian expects a good report but no options movement.
GameStop (GME) earnings tomorrow? Gilbert says there is options activity for a 10 percent move expect.
PetroChina (PTR) - Dropped 16% and Adami says it’s a buy because Buffet owns it too.
Goldman Sachs (GS) and Mastercard (MA) and Alcoa (AA) - there were lots of options activity saying that there is upside
Nasdaq (NDAQ) they are selling their share of London Stock Exchange and going to buy back stock and focus on the OMX
Treasury Yields had their biggest moves: Flight to quality suggest that according to Gilbert that the short term market says that everyone is scared. Macke says that financials are in trouble and there is a panic. Adami suggested you need to pick good companies like Juniper (JNPR) and Flour (FLR) while Najarian agrees that you have to be selective to dividend like railroads and pharma.
Retail Report: The biggest scare would be if the consumer stopped spending. Target is reporting tomorrow but Jeff Macke, the retail report says that it’s not about the numbers but it’s about the guidance. He says Target (TGT) is the one to watch. Zumiez (ZUMZ), Dicks Sporting (DKS), Gymboree (GYMB) and other specialty stores are doing well but should show how strong retailers will be.
Gadget Trade: Research in Motion (RIMM), Garmin (GRMN) and Palm (PALM) all moved up. Najarian says that RIMM has momentum and Nokia (NOK) is good as well. Macke says Palm is dead. Everyone said not to buy it.
POPS: First Solar (FSLR) - Najarian says it’s a buy , Dendreon (DNDN) - Najarian says it’s not a buy yet still risky, Smurfit-Stone (SSCC) - Adami says its hard for him to own it yet even though it recovered. Baidu.com (BIDU) - Najarian says it’s good. Tribune (TRB) moves up on closing arbitrage.
DROPS: Lehaman Bros (LEH) - Adami says there are problems don’t buy it. DirectTV (DTV) - Mack says still a sell, Moodys (MC) - Gilbert says too risky because they are related to subprime, Nordstrom (JWN) - Macke says high end retailers are weak too.
FINAL TRADES:
Najarian Says buy ATML on Options
Guy Adami and Stacey Gilbert says buy FCX
Macke says sell ANF
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Friday, August 17th, 2007
Fast Money traders sounded a little more optimistic. Guy Adami said that the Dow will move 500 points higher from here. Macke said that it should be up tomorrow and this is just a short-term bottom. All the financials led everything up and it finished strong. Eric called everyone and didn’t quite understand why it led the market up. But most of the traders were more optimistic in the short term. Eric Bolling says he feels that the market has bottom and stopped his yen carry trade by closing his positions in yen. Bolling seems to be the most bullish. Eric says he didn’t get out of many positions and he pointed out that the VIX, volatility index. On the other hand, Jeff Macke was still very negative on the market and says that he’s sleeping like a baby still.
TRADE PICKS
Najarian noted that Alcoa (AA) saw lots of call buying. Adami says the low may be close. Keep in mind commodities are still getting beat down.
Hewlett-Packard got strong numbers after hours. Macke said that the business was strong and Najarian said that it should carry the market. Adami says Dell (DELL) should be good after the accounting investigation.
Adami picks some strong stocks like Biogen Idec (BIIB) and Hewlett-Packard (HPQ).
Thornburt Mortgage (TMA) insider buying suggested that the stock was safe and Pete Najarian is now long.
In fanancials, Adami picked that Bank of America (BAC) and Goldman Sachs (GS) while Najarian says Wells Fargo (WFC). Jeff Macke says Goldman Sachs is a trade.
INTERVIEW WITH DENNIS GARTMAN
Commodities traders were killed and Dennis Gartman of the Gartman Letter says that the market was a little over extended and the market will move back for a few days. He’s watching Euro/Yen currency trade says the trading is violent. Gartman says that he’s still going to stay away from US Steel and he may start buying oil. Gartman says we’re in a bear market in stocks and bull market in volatility. He says the bounce will be on very weak volume but he could park. Gartman says you’ll get a strong bounce for the next few days on short covering from Friday and Monday. But he says sell into the rise.
INTERVIEW WITH CORNING CEO
Corning Inc (GLW) James Flaws, CFO says he has seen no slow down in glass fiber demand and the company is doing fine. He says that he feels that slow down in consumer spending will not hurt them (defy economics?). Also other segments are growing as well. Jeff Macke is hold on it. Najarian says it’s a buy. Adami and Bolling says hold it. Bolling says the chart is horrible.
POPS AND DROPS: Mostly drops today. How weird.
Drops:
Ford (F) – Adami says sell
Freeport – McMoran (FCX) – Eric Bolling says stay away.
Gold (GLD) – Bolling says you can own it.
Sotheby’s (BID) – Macke says you can buy it.
SONY INTERVIEW
Sony (SNE) CEO was on the show but after his presentation, all the traders said it was a total sell. Poor CEO who came on the show. He looked really disappointed – it was borderline sad. Can’t help but feel bad for the guy.
WEB EXTRA:
Eric Bolling says Beazer Homes (BZH) is the bulleye of the market and should go bankrupt while Macke says that JC Penny (JCP) was doing well despite a good retail environment.
FINAL TRADES:
Mackes wants General Motors (GM) because it’s at the bottom. Najarian says that Thornburg Mortgage (TMA) might be bought but Macke says or bankruptcy. Adami says Network Appliances (NTAP). Bolling says buy financial XLF
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