Word On The Street
The traders of CNBC’s “Fast Money” TV show talked about how to survive this treacherous market on Monday. The Dow plunged 250.89 points, or 3.41%, to 7,114.48, while the S&P 500 lost 26.72 points, or 3.47%, to 743,33. The Nasdaq dropped 53.51 points, or 3.71%, to 1,387.72.  Pete Najarian told viewers to not to try and buy the bottom in anything. He said he is avoiding the banking sector except for Morgan Stanley (MS), which he added to his position on Monday and also  bought puts. Tim Seymour said he lighted up his portfolio on Monday.
GE Talk
Ratigan shifted the discussion to General Electric. Guy Adami said GE’s negative numbers are coming from their financial division and their infrastructure business is worth at least $9. He said the company is being devalued because of its poor real estate investments. Karen Finerman explained that GE has been aggressive with lending and that could be putting the stock at its current valuation. Pete Najarian mentioned that March 7 puts were trading strong which suggests the stock could be heading lower. Tim Seymour thinks GE needs to cut their dividend with the stock yielding 14%.
Healthcare Chat
Ratigan moved on to talk about the healthcare market which has been a bright spot in the markets. Najarian told viewers to keep an eye on M&A in the pharma sector. He said the rejection of bids by CV Therapeutics (CVTX) and Genentech (DNA) shows the amount of cash in the sector and the opportunities for growth.
Metals Slaughtered
Metal names were hammered on Monday as investors grew worried about slow demand and rising supply. Seymour told viewers to take profits. Najarian said look at US Steel (X) because volume on the puts was high and suggests the stock could make new lows. Gold sold off today after breaking through $1,000 on Friday. Seymour mentioned that gold tends to have problems at $1,000 and investors should take profits here. Adami said gold could be making a double top at $1,000. He advised viewers to take profits and get back in gold if it closes above $1,010. Najarian said buy the Gold ETF (GLD) and buy puts for 3-month protection.
Tech Talk
The traders looked at some trades for the technology sector. Dell (DELL) broke below $8 a share on Monday which marks a decade low, explained Finerman, but she said she still doesn’t want to buy it. Seymour said keep an eye on AT&T (T) and Cisco Systems (CSCO) for their build-out plans. Najarian said investors in tech stocks should buy puts for protection with the sector under selling pressure.
Trends With Gartman
Dennis Gartman joined the traders to talk about trading trends. Gartman said the trend in retail is that people are going downsacle. He told viewers to get long Family Dollar (FDO) and short Simon Property (SPG). He said gold looks to be going higher and he would rather be long the miners than the commodity itself.
Rising Stock Star
This weeks rising stock star is Petrobras Energia Participaciones (PZE) a subsidiary of Brazil’s Petrobras (PBR). “I think it’s more of an old star about to be reborn again,” says Seymour. “It trades at a big discount to Petrobras. It may be an interesting time to get in.”
POPS&DROPS
POPS- Rambus (RMBS) rose 6% off of a favorable court ruling. Najarian said he doesn’t like companies facing litigation. Fifth Third Bancorp (FITB) soared 25% on speculation the government might take a 40% stake in Citigroup. Finerman told viewers not to get excited. Royal Bank of Scotland (RBS) added 6%.
DROPS- Humana (HUM) lost 24%. Adami said there seems to be a seasonality to this stock. Vale (RIO) dropped 12% after Deutsche bank said 2009 earnings estimates are too high and Canaccord Adams cut the stock to a hold from a buy. Seymour said now is a good time to get long. NYSE Euronext (NYX) fell 8%. Finerman thinks the valuation on NYX is attractive. Goodyear (GT) dropped 12% after Keybanc Capital Markets downgraded the stock to underweight from hold. Adami said the tire sector isn’t a good place to be.
Final Trade
Seymour picked Vale (RIO) long with a stop around $11.25. Adami recommended Amgen (AMGN). Finerman said look at call spreads in Genentech (DNA). Najarian said buy Mylan (MYL). Join the fastest growing community of small cap investors at Stockhideout.com

Word On The Street
Stocks continued to slide lower on Thursday due to uncertainty in the banking sector. The Dow fell 89.68 points, or 1.19%, to 7,465.95, while the S&P 500 lost 9.48 points, or 1.2%, to 778.94. The Nasdaq dropped 25.15 points, or 1.7%, to 1,442.82. Dylan Ratigan started the “Fast Money” TV show with a discussion of how the Dow has dropped to its lowest level since October 2002. Tim Seymour said the news on Prudential (PRU) is dangerous stuff, after Fitch cut its ratings on the insurer. He said PRU will no longer have access to commercial paper. Karen Finerman told viewers she has been buying Bank of America (BAC) preferred and shorting the common stock against it. Pete Najarian said the market will be stuck until we know what’s going on with the financials. It’s also worth noting that banking analyst Meredith Whitney said the banks are heading much lower. Joe Terranova said the weakness in stocks is due to the weak consumer spending and the continued fall in home prices. Najarian said he wouldn’t touch money-center banks, but he would look at companies like Visa (V) or Northern Trust (NTRS). Terranova said get long Morgan Stanley (MS) and Goldman Sachs Group (GS).
Oil Trades
Ratigan moved the discussion to oil, which soared 14% on Thursday. Terranova mentioned that expiration on oil is on Friday, and the fact that oil didn’t go lower could  be signs that the price is stabilizing. He said he is long the Canadian dollar ETF (FXC) for a play on crude oil. Seymour mentioned the outlook for oil is bullish, with oil one year out trading higher than current levels. Najarian told viewers to look at Exxon-Mobil (XOM) because everyone on the street hates the stock but it continues to work.
Tech Take
Technology stocks were hit on Thursday with Hewlett-Packard (HPQ) leading the decline after sales fell short of Wall Street’s expectations and it lowered its forecast. Najarian said he likes HPQ at current levels and he has some concern with Apple (AAPL) after a report said PC sales in January were off 6%. Finerman said Dell (DELL) is interesting as a value play, but she doesn’t own it. Seymour told viewers to play the semiconductors (SMH) if you want to play notebooks. Najarian warned viewers to be cautious on Applied Materials (AMAT) due to the large number of puts trading on the stock. Terranova said put IBM (IBM) on your radar.
Doug Kass Take
Doug Kass, a columnist for TheStreet.com, joined the panel to discus his hopes for an end to the bear market in early 2010. Kass said several events could help the market recover, like the fiscal stimulus, consumer tax cuts, lower commodity rates for corporations, lower cost of credit, and better liquidity in the markets. “My sense is that we don’t have to wait much longer for a resumption of a new bull market as policy is going to be aggressive and immediate,” Kass added. Kass thinks the economy can turn around as early as next year, and he expects the recession to end in early 2010. Kass likes Transocean (RIG) and Freeport McMoRan (FCX) for plays on China.
AG Trade
The traders think the AG stocks could be set to breakout soon. Names such as Potash (POT), Monsanto (MON) and Mosaic (MOS) all traded up in the weak tape on Thursday. What’s the trade? Najarian likes all of the stocks mentioned above and he said look at CF Industries (CF). Hedge fund manager David Einhorn has taken a position in CF and that should tell tell you something.
POPS&DROPS
POPS- Priceline.com (PCLN) surged 16% after fourth-quarter earnings beat expectations due to strong bookings growth. Najarian said he can’t figure them out. Sprint Nextel (S) jumped 20% after the company reported a smaller-than-expected loss. Terranova said don’t buy it. Target (TGT) jumped 2% after bullish report from Barron’s mentioned that Pershing Square has faith in the company. Finerman pointed out the stock hasn’t been this cheap in a long time. CVS Caremark (CVS) added 6% after the company beat its fourth-quarter earnings. Terranova said the stock looks like a buy. Dress Barn (DBRN) added 11% on a positive forecast for full-year expectations. Seymour mentioned that DBRN looks better than a lot of others in the sector. Gamestop (GME) jumped 7% after fourth-quarter sales beat Wall Street estimates and their full-year forecast was above expectations. Terranova said the stock is looking pretty good. Reliance Steel & Aluminum (RS) soared 20% after profits beat estimates by 40%, but the firm warned about demand. Seymour thinks RS will see more weakness.
DROPS- SPDR Gold ETF (GLD) fell 1%. Seymour said gold is going to $1,000. Wells Fargo (WFC) lost 8%. Najarian said the stock is being pressured by rumors of nationalizing the banks. Pool Corp (POOL) dropped 12% after the swimming pool distributor reported a fourth-quarter loss and revenues were worse than expected. Finerman told viewers to move on from this stock. LDK Solar (LDK) plunged 22% after the silicon wafer maker reported fourth-quarter revenues that was less than Wall Street had expected. Najarian explained that the credit crisis is hitting this sector.
Final Trade
Terranova likes Wal-Mart (WMT). Seymour said short Germany’s DAX against the S&P 500. Finerman picked Nike (NKE) for a long trade. Najarian said buy the Market Vectors Gold Miners ETF (GDX). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Housing
A new housing plan came from the White House today.  The main elements are a $75 billion fund for subsidizing homeowners struggling to pay their mortgages, Fannie Mae and Freddie Mac investing a further $100 billion in mortgages to spur fresh lending and Washington to inject a further $100 billion in mortgage giants to protect against losses as they expand.  Some banks like Citigroup (C), JPMorgan (JPM), PNC Financial Services (PNC) and Bank of America (BAC) have agreed to suspend foreclosures until the Obama plan is adopted.
Bottom?
The Dow (.DJIA) is at the low from November 20th and the S&P 500 (.SPX) is sitting at the 800 level so the cast asked with help from Dan Fitzpatrick from Stockmarketmentor.com if this is the next turn down or the bottom? For the (.SPX) we were told to “let the beat go on without us” as it will probably be until summer when it goes up.  For the NASDAQ NMS (.NCOMP) “if you do not want to be in stocks, I’d be in tech” Fitzpatrick said, with the NASDAQ 12% above the November low.  In Oil (US@CL.1) we may see an uptick as gold and oil usually trade together when the “relationship normalizes.”  Petrobas (PBR) was last for the charts and Seymour said that he is long PBR due to it being “the best oil story for production growth.”
Pops & Drops
Pops: Walmart (WMT) +4%, MBIA (MBI) +30%, Celgene (CELG) +2%, Volcano Corp (VOLC) +12% and Nalco (NLC) +5%.
Drops: U.S. Steel (X) -7%, Comcast (CMCSA) -4%, Jack In The Box (JACK) 9%, Consellation Energy (CEG) -8%, Airlines (XAL) -6%, Chesapeake Energy (CHK) -4% and Geron Corp (GERN) -11%.
Nationalizing
Lately more and more Republicans have been talking about nationalizing banks.  Lindsey Graham is at the forefront and he talked about how we have invested billions trying to rescue companies like Citigroup (C) and Bank of America (BAC) and the worth of the company is far less than what we have invested.  One option in his eyes would be to “go in, take it over, restructure it, break it up, sell it, and then get the money back.”
Precious Metals
Profits are being searched for anywhere in this market.  The one way the traders looked at today was to invest in metals such as gold (US@GC.1), platinum (US@PL.1) and silver (US@SL.1).  Seymour thinks the ETFs are the way to play it here and mentioned SPDR S&P Metals and Mining ETF (XME), Powershares DB Base Metals Fund ETF (DBB) and PowerShares DB Precious Metals ETF (DBP).
Rising Star
Today the stock looked at in this segment was Crucell (CRXL).  This is a company that focuses on the development and marketing of vaccines for infectious diseases worldwide.  The stats for CRXL were given as a 52 week high of $24.08, 52 week low of $9.42 and up 43% over the last 52 weeks.  Najarian called it the largest vaccine pure play with a great balance sheet.  He thinks companies like Sanofi-Aventis (SNY) are looking at them for an acquisition.
Final Trade
Terranova – Roche (RHHBY) is worth a look, Adami – long Celgene (CELG), Seymour – long Stillwater Mining (SWC) and Najarian – there may be a buy in Genentech (DNA). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Almost A Perfect 10
Deborah Weinswig thinks Walmart (WMT) is a “perfect 10.”  It beat the Streets forecast and is expected to outperform rivals with lower prices.  They are beating competitors like Target (TGT) and Costco (COST) along with pricier stores like J.C. Penny (JCP).  The momentum should continue according to the Chief Executive Mike Duke.  The move toward more groceries with the thought that more people would be eating and entertaining at home was spot on.  Also with their buing power they can offer better value to consumers.  She gave this a 9.5 out of 10.
Nationalizing
Nationalizing banks came up on ABC’s This Week and it was a Republican that brought the idea to the table.  Lindsey Graham feels it may be the government that is required to salve the problem with banks and financial community.  UBS wealth management strategist Jeremy Zirin thinks the leading banks to get nationalized are Citigroup (C) and Bank of America (BAC).
Stem Cells
Stem cell product shipments are on track to rise $87 million and the leaders met in New York City for the 4th annual Stem Cell Summit on Tuesday.  A ban on federal funding for embryonic stem cell research is thought to be lifted soon by President Obama.  Major breakthroughs look to be a bit out on the calendar but a company that many talk about in research is Geron (GERN). Celgene (CELG), Genzyme (GENZ) and Teva (TEVA) are all bigger companies with pipelines.  To get broad exposure the SPDR S&P Biotech ETF (XBI) is the play.  Finerman thinks iShare NASDAQ Biotechnology Index (ETF) (IBB) is the way to go with Adami adding that CELG is his favorite.
New Plays
A secondary pick other than stocks is all the talk right now.  Things such as real estate and commodities were discussed but are not attractive.  Over the last six months funds that track gold, Treasuries and currencies are all in the green.  Terranova looks at trades outside of the S&P 500 and he looks for “investments not too heavily correlated to stocks.” The currency trade because for every dollar move in the S&P, currencies move typically about 30 cents.  CurrencyShares Canadian Dollar Trust (ETF) (FXC) was his pick to look at.
Final Trade
Adami – long Johnson & Johnson (JNJ), Finerman – long Foot Locker (FL), Najarian – Hewlett Packard (HPQ) is a buy, and Seymour thinks “staying small” is the way to go.  Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Washington does not seem to understand what is needed as the banks need more money.  Market analyst Ed Yardeni told the crew that gold (US@GC.1) is the one that wins here.
Tomorrow’s Trade
The concept of survival of the fittest came up in refering to the current market. Each of the shows cast gave the trade for who they think will come out stronger than when they when this all started.  Adami feels Jefferies (JEF) is worth a look.  Najarian likes Apple (AAPL).  Macke thinks Hasboro (HAS) is where it is at.
Najarian has people trading down, and in turn looking at causual restaurant that have huge short interest in their stocks.  If speculators are wrong there is a huge move to the upside.  On Thursday we saw Buffalo Wild Wings (BWLD) move higher so now PF Changs (PFCB) is on the radar with 31% short interest.  Chipolte (CMG), Aeropostale (ARO) and The Buckle (BKE) are also worth looking at here.
Stimulus
U.S. Treasury Secretary Ray LaHood joined the show to talk about infrastructure in regards to the stimulus package.  About $46 billion is allocated for transportation infrastructure.  Caterpillar (CAT) has already started to move by saying they would rehire some of the workers laid off.  There will be a website coming with the details about how they will spend the money.
Pops & Drops
Pops: Continental Airlines (CAL) +10%, Viacom (VIA.B) +4% and Pfizer (PFE) +2%.
Drops: Wells Fargo (WFC) -4%, BB&T Corp (BBT) -6%, Winn-Dixie Stores (WINN) -11%, Harley Davidson (HOG) -8%, Capital One Financial (COF) -9%, JA Solar (JASO) -16%, General Motors (GM) -4% and Kohl’s (KSS) -4%.
Final Trade
Macke – long Research In Motion (RIMM), Adami – long Viacom (VIA), Finerman – long Genentech (DNA) and Najarian – buy Freeport McMoRan (FCX). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

TARP Trades
After testifying today in front of Congress there was much analysis.  After watching everything the traders suggested that shorting the commercial real estate was the play while looking to long the capital market names.  For Sourhtern California the real estate market is a long play as well.
Tomorrow’s Trade
Gold was focused on today as it has jumped 3% to a 6 1/2 month high.  Najarian would trade the gold ETF (GLD) and god miners ETF (GDX) in tandem and he sees more room in GLD for upside.  Terranova prefers silver.  Adami on the other hand sees the pennant formation in the chart of the gold commodity (US@GC.1) so he thinks it goes higher.  Seymour likes platinum.
Health care is the place to look for trades right now.  This sectror has the largest IPO in 10 months with Bristol Myers (BMY) spinoff Mead Johnson (MJN).  Also Sanofi-Aventis (SNY) has a CEO that is laying out new products and Roche (RHHBY) is looking at a hostile takeover of 44% of Genentech (DNA) directly from shareholders.  Adami likes Amgen (AMGN) and Seymour thinks Johnson & Johnson (JNJ) should be put on the “radar.”
Mortgage applications fell 25% last week and the government could push 30 year home loan rates to near 4% with a proposed $15,000 home buying credit with lower house prices probable as well.  Terranova thinks you should avoid commercial real estate with the biggest bang for your buck in lumber when housing turns.  He would play Wayerhaeuser (WY).  Najarian said to look at Freeport McMoRan (FCX) as a play on copper for its use in overall construction.
Pops & Drops
Pops: Suntrust Banks (STI) +11%, Ingersoll-Rand (IR) +14%, Arcelormittal (MT) +4, Barrick Gold (ABX) +4%, XL Capital (XL) +61%, Barrick Gold (ABX) +4%, Coca-Cola (CCE) +10%, Rio Tinto (RTP) +5%, Dean Foods (DF) +7%, YRC Worldwide (YRCW) +18% and PF Changs’ China Bistro (PFCB) +2%.
Drops: United States Oil Fund ETF (USO) -3% and Sirius XM (SIRI) -52%.
Morgan Stanley Interview
CEO John Mack from Morgan Stanley (MS) joined CNBC’s Erin Burnett after testifying before Congress today.  The cast of the show was impressed with what he had to say particularily Najarian.  MS has a great cash position and hasn’t used TARP money for dividends or compensation either.
Final Trade
Seymour – long Turkcell (TKC), Adami – long Amgen (AMGN), Terranova – long IBM (IBM) and Najarian – buy SPDR S&P Biotech ETF (XBI) because you get a little AMGN, Biogen (BIIB) and Genentech (DNA). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Geithner’s Plan
Wall Street was not impressed by the federal action announcement as indicated by the Dow Jones (.DJIA) closing lower.  Treasury Secretary Tim Geithner gave a speech regarding the revised TARP plan and it was just about the moment the selloff happened.  The thought was that investors were frustrated at the size in LaVorgna view.  He thinks the lack of specifics proposed will stress the banks.  No talk was given in regard to the doing away with mark to market accounting.  It just does not seem clear enough how the government will value toxic asset.  Bill Greiner, chief investment officer at UMB asset Managemnt, thinks investors to steer clear of financials (XLF), “do not chase financials.”
Tomorrow’s Trade
This is an extremely important time to be nimble in the market.  The crew looked at the market lime a trader today, not an investor.  Najarian always looks at the market this way.  He said, “with me a buy and a hold always been dead, I’m not a buy and hold trader.”  His strategy he calls range roving which he defined as buying at the bottom and selling at the top.  With the S&P (.SPX) he has been trading between 800-870 or the VIX (VIX) which he has been playing it from 40-50.  If trading are not your flavor for trading he told viewers to look at Excel Maritime (EXM) and buy at $6 to sell it around $9 or with ArcelorMittal (MT) buying around $22 to sell it around $28.
Rising Star
The stock sited was Energy Conversion Devices (ENER), a manufacturer and seller of thin film solar laminates for converting sunlight to energy using proprietary technology.  UNI-SOLAR is the brand name.  The stats on the company were:  Energy Conv. Devices (ENER) – market Cap: $1.27 Billion, 52 Week High: $83.33, 52 Week Low: $18.32, Up 10% over the last 52 weeks.  Najarian feels that “earnings recently were outstanding with an 83% increase in revenue with stable prices.  China and the US are spending on energy as will with the national stimulus.
Final Trade
Adami – long Intel (INTC).
Najarian – buy Monsanto (MON).
Seymour – long Platinum Asset Management Limited (PTM). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Tomorrow’s Trade
Cautious optimism is coming that the banking bailout with limits on executive pay will be the boost the market needs.  Goldman Sachs (GS) and Morgan Stanley (MS) have said they intend to repay their TARP money by the end of the year.  Adami sees this as a very positive development and he anticipates a good year.  Finerman thinks these rules could weed out the worst from the rest.  Najarian is also a “tough love” advocate for the bailout but puts forth the analogy “i think of the financial crisi as a forest fire, it is burned down the forest and now there are only a few trees left standing, with the burned down trees creating fertilizer for the next group of trees.”  Najarian said to keep an eye on Fifth Third (FITB), Regent Bank (RGTB) and Huntington Bank Corp (HBAN).  Seymour mentioned Banco Bradesco (BBD), Banco Itau (ITU) and ICICIC Bank (IBN)
President Obama’s other job is to keep America safe and an increase of 8% in defense is expected in 2010.  A company like Lockheed (LMT) may get hurt but homeland security companies like L-3 Communications (LLL) should be plays according to Adami.
Corning
Corning (GLW) is on the verge of a huge rebound as manufacturers begin to replenish supplies with demand in the second half of the year expected to pop.  The CFO James Flaws, in prepared remarks said they targeting revenue will surpass the projected revenue for the full year according the Thomson Reuters poll.  People around the world are sill buying the flat panel TVs with demand stronger than originally feared.  Adami said “do not rush in” though.
Pops & Drops
Pops: iShares FTSE/XINHUA China 25 Index Fund (FXI) +13%, Amazon.com (AMZN) +13%, Microsoft (MSFT) 15%, Akamai Technologies (AKAM) +29%, Walmart (WMT) +6%, Harley Davidson (HOG) +20% and Chesapeake Energy (CHK).
Drops: General Electric (GE)8%, Harford Financial Group (HIG) -8% and Disney (DIS) -6%.
Final Trade
Karabell – long SPDR S&P Metals and Mining (XME).
Adami – long the Gap (GPS).
Seymour – long Turkcell (TKC).
Najarian – buy Harley Davidson (HOG).Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Chinese New Year

In celebration of the Chinese New Year , the year of the Ox was talked about in relation to the market.  The Ox it is said will bring a greater sense of calm and stability to the market, however historically it has been a weak year for the Dow and S&P.  The average returns were given since 1928:

Year        S&P Avg. Annual Returns

Pig                   +14%
Rat                  +14%
Tiger                +11%
Rooster             +10%
Rabbit               +10%
Dragon              +7%
Dog                  +7%
Sheep               +6%
Monkey             +4%
Ox                   +3%
Horse               +2%
Snake               -5%

Tomorrow’s Trade

In a bear market you have to be nimble according to the traders on the show.  Macke told us today that McDonald’s (MCD) may be a trade after looking at the chart it has been stuck in a range and when it touches $60 take profits quickly.  Seymour talked about Vale (RIO) and Rio Tino (RTP) as both on his radar “as plays on the slow demand in iron ore and coal”

On Monday Pfizer (PFE) said it would buy rival Wyeth (WYE) for$68 billion, a 20% premium.  This deal should add to PFE’s record earnings.  This deal should reshape the pharmaceutical industry with a possible string of takeovers and mergers to come.  Najarian says the deal should make another like Johnson & Johnson (JNJ) or Merck (MRK) make an acquisition.  A look at SPDR S&P Biotech ETF (XBI) should be taken.  The top holdings are Genentech (DNA), Amgen (AMGN), Gilead Sciences (GILD), Celgene (CELG) and Genzyme (GENZ) and any of these may move going forward without having to pick a specific name.

Fourth quarter results from Yahoo (YHOO) are scheduled to come out after market close on Tuesday and all eyes are on Carol Bartz who replaced Jerry Yang as CEO earlier this month.  Expectations were set lower by her when she came in giving them a lower hurdle to clear in 2009.  As she tries to lift the dropping profits and stock price she has to decide if it will sell the search operations to Microsoft (MSFT).  Until the strengths and weaknesses of YHOO are better understood no drastic changes are likely to be made by Bartz.  A pay freeze has been instituted until the end of the year as a way to control costs.  Analyzt from Sanford Bernstein, Jeff Lindsay, said not to play with fire and right now YHOO is a value trap.  Look at Google (GOOG) according to Lindsay as it is much better with a 15 multiple and looking to move up to 20.  Seymour loves Baidu.com (BIDU) as an Internet trade.

Pops & Drops

Pops: Chesapeake Energy (CHK) +6%, Home Depot (HD) +5%, State Street (STT) +5%, ING Groep N.V. (ING) +21%, Athenahealth (ATHN) +4%, Danaher Corp (DHR) +9%, H.J. Heintz (HNZ) +3% and Currencyshares Euro Trust (FXE) +2%.

Drops: Apollo Group (APOL) -2%, Rohm & Haas (ROH) -13% and U.S. Bancorp (USB) -11%.

Rising Star Stock

Palm (PALM) is this week’s rising star.  Palm is focusing on creating instinctive yet powerful products that enable users to better manage lives on the good.  The Pre wowed crowds at the Consumer Electronics Show earlier this month and PALM is looking at getting back some of their market share from BlackBerry and the iPhone.  The numbers are: Market cap of $824 million, Revenue of $1.17 billion and is at a 52 week low of $1.42.  Najarian sees upside here so will continue to own calls and they are going to the 3G network and this could cause them to wow crowds again so put PALM on the radar.

Final Trade

Adami-long Home Depot (HD), Seymour-long CurrencyShares Australian Dollar Trust (FXA), Najarian-long Palm (PALM) and Macke didn’t have a pick.

Word On The Street
Jeff Macke said he is starting to see some chinks in the armor of Wal-Mart (WMT) like the company guiding down twice this quarter, missing its sales estimates for December and their poor execution of replacing CEO Lee Scott. HE told viewers he is long WMT but if the company screws up again he’s gone. Pete Najarian said the decline in WMT today might  be an opportunity to get in. Guy Adami also likes WMT from the long side.
Oil Take
Crude oil dropped to $47.10 a barrel Thursday. Adami thinks crude could trade down to $38 from a technical standpoint. Najarian pointed investors toward airline stocks with oil at such low prices. Tim Seymour said the trade in the space is Valero (VLO).
Alternative Energy Plays
Ratigan switched the discussion to President-elect Barack Obama’s comments that he would double alternative energy production. Seymour said he likes solar names such as SunTech (STP) and First Solar (FSLR). Najarian told viewers to keep an eye on Energy Conversion Devices (ENER). Adami favors URS Corp. (URS) for its nuclear business. Also for nuclear, Seymour recommended Cameco (CCJ).
Options Action
Najarian mentioned that he is seeing unusual options activity in Elan (ELN). He said there was large call options activity in Elan today which could mean the stock is going to surge higher.
Citigroup News
Ratigan brought the big news of the day with Citigroup (C) signing a deal with the leading Democrats in the Senate that would allow bankruptcy court judges to modify  the terms of distressed mortgages. Sen. Charles Schumer D, New York said the deal is a breakthrough that could help 70% of homeowners facing foreclosure. “To reduce foreclosures you need both a carrot and a stick. The carrot is sweeter terms for mortgages. The stick is to require the traunch holders to come to the table and negotiate,” he said. Schumer thinks the deal could get included in the stimulus bill. “What Citigroup has done is support the change in the law and that will bring other banks on board. So this is a real breakthrough,” Schumer said.
Jobs Report
The crew talked with Tony Crescenzi, a market strategist for Miller Tabak about the job report set to be released on Friday. Crescenzi said the report will probably produce very scary headlines. However, he explained that companies are more prepared and are adjusting their payrolls to deal with the economic slowdown. He said we will see job cuts for some months to come and the numbers will continue to be bad. He told viewers if they want a good indicator for where the economy i going just watch sales of goods and services. Adami thinks a good trade off of this trend is Apollo Group (APOL) because when people are out of work they go back to school.
Oil Plays
The traders spoke with Joe Terranova about the future of oil prices. Terranova told viewers to use oil as an indicator to tell you when speculative risk is willing to be assumed again. He said the charts are telling him that oil isn’t ready to move higher yet since it hasn’t broken through the 50-day moving average. “We’re not ready yet. We have to work off the supply glut,” he explained. He said investors who want exposure to the oil space should look at names such as Suncor (SU), ConocoPhillips (COP), National-Oilwell Varco (NOV) and the CurrecnyShares Canadian Dollar Trust (FXC) for its exposure to oil.
POPS&DROPS
Pops- Sears Holdings (SHLD) soared 23% after the retailer beat fourth-quarter estimates. Macke told viewers its a tough stock to short in this bear market. Gamestop (GME) added 13%. Najarian mentioned that they raised the lower end of their fourth-quarter guidance. DryShips (DRYS) jumped 17%. Seymour said shipping rates are going higher. Whole Foods (WFMI) surged 23% after Ron Burkle’s Yucaipa investment firm announced it has taken a 7% stake in the company. Adami explained that Burkle knows the supermarket space.
Drops- Saks (SKS) fell 5% after their same store sales plunged 20% for December. Adami pointed out that Saks own their real estate and it might be trading below their real estate value. Abercrombie & Fitch (ANF) dropped 3% after the teen retailer reported a 24% drop in same-store sales for December and warned on earnings for the fourth-quarter. Nordstrom (JWN) slid 2% after the luxury retailer said fourth-quarter profits will miss previous forecasts. Macke said its a tough market for high-end department stores. JPMorgan Chase (JPM) fell 3%. Najarian said S&P lowered their ratings and the stock has a hangover from Meredith Whitney’s comments yesterday.
Trader Radar
Shares of Sonic (SONC) were among the most active names on the NYSE Thursday.
Final Trade
Macke likes Potash (POT) from the long side. Najarian and Adami both recommended buying CSX Corp. (CSX). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!