FAST MONEY: TRADERS SAY THE MARKET WILL DRIFT UP BUT MONEY IS STILL DRYING OUT

Posted: August 23rd, 2007 | Author: Stock Pitcher | Filed under: Fast Money | No Comments »

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.

---