Tech Trade
Apple Computer (AAPL) announced that iTunes reached a milestone with 5 billion songs sold. Terranova said he lieks tech here. Najarian said he is behind hte tech rally and he favors Qualcom (QCOM), Broadcom (BRCM), Apple and Research In Motion (RIMM). He said IBM (IBM) won a service contract and the stock is going higher. Adami said he likes Microsoft (MSFT), Western Digital (WDC) and Apple. Macke said the action in MSFT suggest to him the stock is a short.
Unusual Options Activity
Najarian highlighted unusual options activity in SandRidge Energy (SD). He said call buying was large and the stock could move higher. He also saw options action in Juniper Networks (JNPR). He said JNPR had heavy call buying today. Adami thinks Juniper is going $25. He also likes Cisco (CSCO) over AT&T (T) and Verizon (VZ).
Saudi Arabia Take
The traders spoke with David Kirsch of PFC Energy about his opinion on the Jeddah summit, a meeting of oil players in Saudi Arabia set to kick off Sunday. Kirsch said he doesn’t buy rumors that Saudi Arabia will be able to up oil production by 10 million barrels a day. He explained that the Saudis will probably talk about longer term issues with oil developments and not about the supply demand imbalances. Kirsch predicted that oil prices will trade between the range of $105 to $120 by the end of the year.
Transportation Stock Plays
The traders talked about some transportation stock plays as the sector moves back toward record highs. Najarian explained that trucking is getting more efficient and that makes the sector a buy. Adami likes the rails but he advised investors to wait for a pull back. Terranova disclosed he is long iShares Dow Jones Transport (IYT). Macke picked Ryder (R).
Dividend Stock Plays
The traders discussed some stock ideas for plays on a solid dividend yield. Macke said play stocks that yield below 10% and don’t buy a stock just for its yield. Terranova said look at San Juan Basin Trust (SJT) for its 6% yield. Adami recommenced buying Frontline (FRO) on a pull back. Najarian picked FPL Group (FPL) and Consolidated Edison (ED).
POPS&DROPS
POPS- Petrochina (PTR) traded up 5% after China announced it will increase gas and diesel prices. Terranova likes PTR for an oil trade that isn’t as risky as trading oil futures. Carnival Cruise (CCL) jumped 5% after the cruise line beat profits and revenues estimates. Macke said who can pay to fly to get to their ships. Casella Waste Systems (CWST) ripped 12% higher after JPMorgan upgraded the stock to overweight.
DROPS- Alpha Natural Resources (ANR) fell 6% despite an upgrade from Morgan Stanley. Najarian said he likes ANR. XM Satellite Radio (XMSR) and Sirius (SIRI) plunged 12% after both stocks were downgraded by Goldman Sachs. Macke said that he told investors sell on Monday. UBS (UBS) dropped 4% after Goldman Sachs said the bank could have more writedowns. J.M. Smucker (SJM) slid 8% after the company missed EPS and revenue guidance due to higher raw costs. Adami said if you bought this stock you’re a sucker. Motorola (MOT) and Nokia (NOK) dropped 8%. Najarian said stay away.
Feel Good Trade
The traders discussed some stock ideas for the summer as more and more consumers stay home due to high gasoline prices. Macke likes Wal-Mart (WMT). He said another play is Hasbro (HAS) for a play off the super soaker and Jarden (JAH) for a play on the Coleman brands. He mentioned the CEO of Jarden is buying his own stock as well.
Fast & Furious
Sprint (S) announced it will introduce a new smart phone called Instinct that has been called the “iPhone killer.” The phone has many of the features of Apple’s iPhone, plus it streams live TV. It is set to go on sale Friday for $129 after rebates. Adami said Apple still rules. Winnebago (WGO) is set to report earnings on Friday before the market opens. Macke said the only vehicle less attractive is a two-wheel scooter.
Final Trade
Mace picked Jarden (JAH). Adami said buy Apple Computer (AAPL). Terranova selected Amazon.com (AMZN). Najarian went with Juniper (JNPR).
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