Word On The Street
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Tech Trade
Research In Motion (RIMM) and Oracle (ORCL) are set to report earnings next week. What is the trade? Najarian said he loves RIMM but he would wait for a pull back before buying. Tatro said he is trimming some of his position in RIMM ahead of earnings, but he always does that before RIMM reports. Adami said avoid Oracle ahead of its earnings report. Macke explained that Oracle could has a lot of exposure to financial companies and that could be a big negative. Najarian said Oarcle’s international exposure should offset any problems with its financial customer base. He advised investors to buy the stock ahead of earnings.
Liquor Trade
The traders discussed Brown-Forman (BFB), which makes Jack Daniel’s Tennessee Whiskey and Finlandia Vodka. Tatro said the trend in the stock looks bullish with a breakout approaching. He explained that the stock popped on earnings and is now consolidating as long term buyers accumulate shares. Adami said the stock looks rich on valuation but could move higher. He thinks analysts are under estimating Brown’s international business.
Anti-Transparency Trade
(MT) and The traders spoke with Zach Karabell about stocks that are good investments despite the lack of corporate transparency. Krabell likes China Mobile (CHL) which he mentioned isn’t managed for the benefit of the shareholder’s interests. He also likes other international names like Telefono de Mexico (TMX), ArcelorMittalGazprom, which are all less than transparent. For a U.S. play he likes Apple (AAPL). He explained that Apple is good with reporting financials but the company stays secretive about what is going on inside the company.
POPS&DROPS
POPS- Goldman Sachs (GS) jumped 3%. Tatro disclosed he is long the stock with a stop at the 50-day moving average. Wyeth (WYE) popped 4%. Najarian said giddy-up. Chesapeake Energy (CHK) added 8%. Najarian said insiders are buying a lot of stock in CHK. Schlumberger (SLB) tacked on 4%. Adami said the stock is pricey on the valuation, but he still likes the name. Bank of the Ozarks (OZRK) rose 13%. Macke said don’t buy regional banks. Western Union (WU) jumped 4%. Tatro said buy the stock with a stop at Friday’s low.
DROPS- Coca-Cola (KO) dropped 7% Adami said he likes Coke but here. McDonald’s (MCD) dropped 4. Sohu.com (SOHU) fell 9%. Tatro said stay away. Denny’s (DENN) plunged 13%. Macke said rising input costs are hurting DENN.
Quicker Then The Ticker
Macke told investors to avoid regional banks. He was right and some of the regionals fell 40% from his call. Najarian said buy Excel Maritime (EXM). He was on the money and shares of EXM rose 9% from his call. Adami recommenced buying Lehman Brothers (LEH) with a stop at $27. Shares of Lehman jumped 17% in two days following his call. Quint Tatro said buy Dry Ships (DRYS). He hit this call out of the park and shares of DRYS soared 31%.
Trader Radar
Western Union (WU) was among the most actively traded stocks on the NYSE Friday.
Fast Fire
Najarian recommended shares of Titanium Metals (TIE) due to heavy options activity. He was dead wrong and shares of TIE fell 13% from his call. He said pull the plug on this stock. Adami picked Morgan Stanley (MS) for a trade at $42 with a stop at $40. The stock hit his stop out price and dipped 8% from his call. Adami said he was wrong and he’s sorry. Macke said buy Disney (DIS) for a play on NBA finals ad spending. He was way off and Disney fell 5% from his call. Macke said he hasn’t sold his stake in Disney yet. Quint Tatro told investors to follow the uptrend in Corning (GLW) with a stop at $22. Shares of GLW fell 9% from his call but he is still long shares with a stop at $24.50.
Fast & Furious
Nike (NKE) reports earnings after the market close on Wednesday. Macke said he thinks Nike will beat. Monsanto (MON) is set to report earnings before the market opens on Wednesday. Quint Tataro said sell the news on MON. Research In Motion (RIMM) reports earnings on Wednesday. Najarian said wait for a pull back before buying RIMM. Bed Bath & Beyond reports earnings on Wednesday. Macke said don’t buy the dips on any specialty retail stocks. The Jeffries Healthcare Conference kicks off on Tuesday. Najarian thinks good news will come out of Isis (ISIS), Celgene (CELG) and Genzyme (GENZ).
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