Bolling talked about how to play The Mosaic Company (MOS) and Najarian talked about the trade for Gen-Probe Incorporated (GRPO) in the web extra linked here.

The Top 3- August Outlook, Starbucks, Sneak Preview: Media Earnings
August Outlook
Is the bull market in for trouble ahead? The S&P 500 is now lower for the second month in a row. The sectors leading the fall are the financials and consumers. Higher borrowing costs has taken liquidity out of the markets for the bulls. Is now the time to rest easy? Eric Bolling talked about how August is a slow month with lots of traders and market players away from Wall Street. He feels that now could be a good time to buy energy and technology stocks on weakness, but stay away from the financials. Jeff Macke would only buy market weakness and sell rallies for a trade. He said “if it’s up whack it.” Macke feels that the trend in the stock market has reversed.
Top three #1 video.
Starbucks
Starbucks Corporation (SBUX) stock is now down 25% since last July. Will a 9 cent increase in coffee prices help to fuel this stock higher? Eric Bolling was recently in a Starbucks and he noticed that 10 people were using Apple Inc. (AAPL) iPhones. Starbucks is planning on setting up all stores with WiFi. Research In Motion Limited (RIMM) recently launched a new phone with WiFi and Eric thinks Blackberry and iPhone users will start to hang out more at Starbucks. Bolling thinks the chart looks ok here. Jeff Macke would buy Starbucks ahead of the earnings and sell it after. Pete Najarian was bullish on the options activity in the calls for Starbucks. Pete also liked that the CEO Howard Schultz exercised calls but didn’t sell any common stock. Pete would also keep an eye on Green Mountain Coffee Roasters Inc. (GMCR).
Top three #2 video.
Sneak Preview: Big Media Earnings
Time Warner Inc. (TWX) and The Walt Disney Company (DIS) will release earnings on Wednesday and Viacom Inc. (VIA) will report on Thursday. CNBC Media Reporter Julia Boorstin joined the “Fast Money” crew to talk about the media plays. Julia thinks Wall Street is really watching the ad revenues at AOL. Julia moved on to Disney which she says has room to surprise the street. She thinks with a strong euro and weak dollar visitors from abroad have been lured into the theme parks. Pete Najarian doesn’t like DIS. Bolling thinks if Disney gets a little bit lower it’s in trouble technically on the chart. Julia finished with Viacom Inc. (VIA). She feels the street will be watching the cable network numbers. Guy Adami was bullish on the stock. Jeff Macke was bearish and said “get out.” Julia says Paramount could be having a turn around here.
Top three #3 video.
Sea Change
The future of wireless technology could now be upon us. WiMAX is a wireless protocol that could be faster and more mobile then anything we have now. What’s the trade? Atish Gude of Mobile Broadband for Sprint Nextel Corporation (S) joined the crew tonight to discuss WiMAX. On Tuesday the FCC approved the open access provision that will let consumers to use any phone and software they want on one-third of the spectrum that is going to be auctioned off. Google Inc. (GOOG) and Sprint announced last week to collaborate on WiMAX services. Ratigan asked why is the FCC ruling such a big deal? Gude responded, “At Sprint we have been advocating the open Internet technology on WiMAX. We’ve always said our WiMAX will be open and we believe it is the future of the Internet and we think there is a great opportunity in mobilizing the Internet for consumers in the U.S.” Eric Bolling followed up with who is going to keep WiMAX secure? Gude said, “What we are building is a new model based on the mobile Internet. The Internet is the great repository of information, knowledge and content.” Ratigan interrupted Gude and asked, but how do you secure an umbrella wireless network? Gude responded, “A technology that’s built on phone technology like 2.5 comes with a lot of security. Unlike WiFi which is completely open. The network that will come with WiMAX will inherently come with a lot of security with it. In addition we will allow corporations to run VPN services which enhance security, so the fear that people have that this is open to snoopers and random other people is not completely true.” Ratigan wanted to know if Sprint Nextel has a deal with Symantec or McAfee? Gude wouldn’t tell him who they are working with, but they are working with someone. Ratigan wanted to know how much the Google deal is worth? Gude wouldn’t disclose numbers, but said it was pretty big. Ratigan felt that Gude was being difficult with him. Pete Najarian thinks the play on this Alvarion Ltd. (ALVR) which claims to be the leader in WiMAX. Jeff Macke thinks its to early to trade this technology.
Word On The Street
Today’s headlines analyzed by the shows cast linked here.
Wall Street Journal: More Troubles At Bear Stearns
The Wall Street Journal reported this evening that Bear Stearns (BSC), which already had to shut down two hedge funds, is now faced with big losses at a third hedge fund that has $900 million in mortgage bonds that aren’t leveraged and has little subprime exposure. Dylan Ratiagn wanted to know if this news could take Bear down? Guy Adami thinks that traders will sell first and ask questions later. Eric Bolling thinks this is concerning and the S&P futures are down on the news. Jeff Macke thinks this news is bad for the financials. Pete Najarian likes Goldman Sachs Group Inc. (GS), but this type of news is why he has a options put spread on.
Face2Face
Fast Money hits the mail bag today in the Face2Face linked here.
Pops & Drops
“Pops & Drops” is a new feature for Fast Money that follows the stocks that were moving for the day. POPS-Under Armour Inc. (UA) was up 14% on a bullish forecast. Pete Najarian was bullish on UA and he feels they are taking it to Nike Inc. (NKE). Sun Microsystems Inc. (SUNW) was up 4% on good earnings. Jeff Macke would stay long and never bet against a guy with a ponytail. The Gymboree Corporation (GYMB) was up 9% on a bullish earnings outlook. Jeff Macke is a seller. Wendy’s (WEN) was up 4% on a takeover rumor. Jeff Macke would sell the news. DROPS-Alcatel-Lucent (ALU) was down 10% on a weak quarter. Guy Adami is bearish on the name. Interactive (IACI) was down 5% on a profit miss. Eric Bolling would avoid the name and look at CNET Networks (CNET). Rent-A-Center Inc. (RCII) was down 20% after cutting forecasts. Guy Adami doesn’t like it because the rent consumer electronics and appliances to people who can’t afford it.
Final Trade
Eric Bolling wants to sell some S&P and NASDAQ futures on a lower opening. Jeff Macke said sell Wendy’s International Inc. (WEN). Pete Najarian wants to buy Alvarion Ltd. (ALVR). Guy Adami said buy EMC Corporation (EMC) because the stock has strength in a weak market.
Final video.

B&G Foods, Inc. (BGS) CEO David Wenner joined the show and how they are handling the strategy that smaller companies buy brands from larger companies to build them into bigger brands with higher growth rates was discussed. BGS specializes in buying cast off brands and turning them around. They have great brand equity and great margin structures. BGS is handling the task of passing on higher costs according to Wenner, they had problems in 2005 but in 2006 they held their own and are improving margins with pricing against the cost. Jim called BGS an archetypical stock that does well in any environment.
WATCH THE VIDEO HERE

Bullish
FactSet Research Systems Inc. (FDS), Dynegy Inc. (DYN), Cisco Systems, Inc. (CSCO), EMC Corporation (EMC), Indevus Pharmaceuticals (IDEV), Costco Wholesale Corporation (COST) and Acergy S.A. (ACGY).
Bearish
First Solar, Inc. (FSLR), Alcatel-Lucent (ALU) and CF Industries Holdings, Inc. (CF).
WATCH THE VIDEO HERE

You should have took the strength this morning in the market as a chance to sell the things Jim pointed out as areas of crisis yesterday. The banks, homebuilders and brokers in general were named. The worst case keeps playing out. Chipotle Mexican Grill, Inc. (CMG) was good today but General Cable Corporation (BGC) and Buffalo Wild Wings (BWLD) were not. You should be selling the bad and slowly redeploying into the down market. There is a bull market in defense with aerospace being a part and in the next 3-6 months the good stocks will keep moving higher. Jim called defense the 7th wild bull market. What happens is Congress decides it will pour money into an area and that becomes the place to be. Agriculture was cited as a recent area, and the market has been less than stellar recently but Bunge Limited (BG) and Monsanto Company (MON) going higher today. On the front page of a number of national paper we were shown an article about how our government is going to spend billions to help allies in the Middle East with $20 billion going to Saudi Arabia and $30.4 billion going to Israel among others. Democrats will continue the spending as well if they take office because they do not want to look weak. Right now 40% of the worlds defense spending comes from the United States and considering we are a war machine we should look to make some money off of it. Adding defense to your portfolio was recommended with individual sectors soon to be on a rampage. Lockheed Martin Corporation (LMT) and The Boeing Company (BA) are both stocks Jim likes with Northrop Grumman Corporation (NOC) liked but a bit less. Today we were given two defense contractors that look like great plays. Three criteria were given in picking winners here: valuation, the cheaper the better; stocks most levered to defense, some stocks like BA have defensive components but the main business is commercial; and US contractors only because we will spend our money here. Alliant Techsystems Inc. (ATK) was the first play today and was previously highlighted on the show. They are a company that deals in lead as they make almost every single projectile the US military uses. We were given various numbers as to why the stock is cheap and a buy along with the great buyback they have in place. 10% being bought back recently which is a unheard of. 36% of business is ammunition, 34% is mission systems (like tanks) and 30% is launch systems (for misseles). The company reports on Thursday so Jim recommended if you do your homework and get in to buy half a position before this and half after they report. Raytheon Company (RTN) was the top defense play from Jim. They are the most levered to defense and the cheapest play. The numbers say they are cheap, and while not all cheap stocks are to be bought RTN is definitely a buy. 96% of sales comes from defense and recently they won 2 of 3 major defense contracts from the government. They have visibility and just raised 4 year guidance. The company has a great balance sheet after selling their aerospace segment also. There was a $9.5 million buyback and they have more money set aside for buybacks. Recently they upped the dividend by 6% as well and most of their cash rolls in the second half of the year. Foreign sales bring in about $5 billion a year also so you get the best of both worlds here. RTN is by far the best play in defense according to Jim.
WATCH DEFENSE VIDEO HERE
WATCH THE CALL TO ARMS VIDEO HERE

This video has made it to the most viewed section of YouTube today. Cramer gives us his take on the real estate market in the U.S.

Today in the Final Call Najarian and Ratigan looked at option calls. Alcola Inc. (AA), Exxon Mobil Corportation (XOM) and Wal-Mart Stores, Inc. (WMT) were talked. Najarian called AA the most bullish all in but with energy prices he likes XOM. Watch the video here.

Investor’s can not trust any of the subprime mortgage lending companies, and this was made clear from American Home Mortgage Investment Corp. (AHM). Countrywide Financial Corporation (CFC) will survive according to Jim. He also thinks that Thornburg Mortgage, Inc. (TMA) could survive also as they did a lot of loaning only to the rich. A further exception is Redwoods Trust, Inc. (RWT) because it is under 10%, a stock with a higher than 10% yield is not going to make it. Companies that are at the mercy of the banks are RAIT Financial Trust (RAS) and NovaStar Financial Financial Inc. (NFI) as they did a 4 for 1 reverse split. The futures are out of control for them and they are in the hands of Wells Fargo & Company (WFC) which just discontinued it loaning of subprime. Jim told us that the “Wells Fargo’s of the world have no interest in keeping you alive” as they would “rather just take the loss.” This situation “inspires tremendous panic” but he is not concerned as “the first man out lives and he wants our people to be the first out.”
WALL STREET CONFIDENTIAL VIDEO HERE

The positive spin from IndyMac Bancorp, Inc. (IMB) on the housing meltdown should not be listened to according to Jim. He shrugged off comments from the lender, as they believe troublesome mortgages should move through its financials in coming years “very quickly.” He would be long Countrywide Financial Corporation (CFC). Shares of IMB only remained steady due to half of the stock being sold short.
STOP TRADING VIDEO HERE