Word On The Street
WORD ON THE STREET VIDEO HERE
Drug Trade
The traders spoke with Kris Jenner, lead portfolio manger of T. Rowe Price Health Sciences Fund about his take on the ASCO conference for the drug sector. Jenner said ImClone (IMCL) could present some positive data for Erbitux’s affects for lung cancer. He said the drug could be huge for for IMCL in the long-term and recommended buying the stock. Jenner said he likes Merck (MRK) for the next 12 to 24 months and he holds a large position of the stock in his fund. Najarian said he likes Amylin (AMLN) for its diabetes drug Byetta. Jenner said he also likes Amylin.
Harbinger Capital
According to Barron’s, Harbinger Capital has acquired a 15.3% stake in Cleveland Cliffs (CLF). Najarian said watch Exxon Mobil (XOM). Insiders are selling stock at XOM. He said insiders are buying shares in SandRidge (SD).
Home Depot Trade
Home Depot (HD) is set to hold an analyst day next week. What is the trade? Macke thinks the company will say positive things and he is bullish on the shares. He said from a valuation perspective the stock could be a buy at current levels. Adami pointed out that the stimulus checks will show up in the company’s current quarter. He also said that one of the board members just bought $91 million in HD stock this week. He said buy the stock. Najarian said the stock looks cheap. Finerman mentioned she likes Home Depot’s management.
Leisure Trade
Americans are spending less money on leisure activities due to high gasoline prices. Goldman Sachs Group is putting on a conference nest week for the lodging, gaming, restaurant and leisure sectors. What is the trade? Najarian said the leisure sector is full of losers at their lows. He pointed out that Morgan Stanley downgraded Marriott (MAR) today with the stock near its lows and he thinks they’re right. He said the best stock in the space is Boyd Gaming (BYD) and rumors are floating that Carl Icahn might take a stake in the gaming company.
Quicker Than The Ticker
Adami told investors to buy AMR (AMR) for a trade. He nailed the call and the stock took off. Najarian recommended shares of American Superconductor (AMSC). The pick was a winner and AMSC surged 16% higher from his call. Recently, Macke advised viewers to buy Activision (ATVI). He hit this call out of the park and ATVI jumped 22% from his recommendation. On March 13th Finerman said buy Valero (VLO) June $45 call options. She was right on the money and shares of VLO shot up 5% and the calls soared 78% in three weeks.
POPS&DROPS
POPS-Hexcel (HXL) popped 13% after the plastics company won a contract from Airbus for around $5 billion. Adami said take profits. Amazon (AMZN) traded up 4% after the company cut the price of the Kindle reading tablet. Macke said don’t short AMZN. Starbucks (SBUX) popped 6%. Finerman disclosed her hedge fund is long SBUX. MasterCard (MA) jumped 12% after the credit card issuer said revenues could grow as much as 30% through 2011. Adami said take profits the valuation is getting stretched. Moody’s (MCO) climbed 9%. Macke said he isn’t impressed and he thinks the company will be gone in 5 years. Nasdaq (NDAQ) moved up 5% after Lehman Brothers upgraded the stock. Najarian said the stock is cheap.
DROPS- First Solar (FSLR) dropped 7% then popped 7% this week. Najarian said a California solar project is going to benefit the company. Sigma (SIGM) plunged 22% after the company said second-quarter revenues will be below expectations. Finerman said she doesn’t like the stock.
Netflix CEO Interview
Netflix (NFLX) CEO Reed Hasting joined the traders to discuss his company’s prospects. Hasting explained that his company is getting into instant free streaming movies that can be played on their customers PC’s. The company also launched a new product that allows subscribers to watch video streaming on their TV’s at DVD quality. WATCH THE INTERVIEW HERE
Trader Radar
Shares of J. Crew (JCG) were among the most actively traded stocks on the NYSE Friday.
Fast Fire
Macke said buy Kohl’s (KSS) into the earnings report, but he misfired and the stock dropped 10%. He said he still likes KSS at current levels with a stop. Najarian recommended shares of DryShips (DRYS). He was dead wrong and the stock fell 11% since his call. He said the stock is volatile and he still likes the sector. Recently, Finerman advised investors to buy Golar LNG (GLNG) a stock she has a long position in for her hedge fund. Shares of GLNG plunged 12% from her call. She said she still likes the stock and her fund has a large position in the name. Adami recommended Quicksilver (ZQK) because of the large short-interest in the stock. The shorts were right and the stock fell 12% from his call. Adami admitted it was a bad idea to buy ZQK.
Final Trade
Macke picked Costco (COST) on a pull back. Adami recommended Nucor (NUE). Najarian selected Synthesis Energy Systems (SYMX). Finerman said Maguire Properties (MPG) looks attractive.
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