Word On The Street
WORD VIDEO HERE
Bank Trade
Analyst Dick Bove joined the traders to discuss his take on the financials. Bove said the banking industry is strong and healthy. He explained that most of the bank’s problems aren’t a big deal because the losses are non-cash charges. Bove said he is bullish on Bank of America (BAC), Citigroup (C), PNC Financial (PNC), US Bancorp (USB) and Well Fargo (WFC).
Agrium CEO Interview
The traders spoke with Mike Wilson, CEO of Agrium (AGU) about his company’s prospects. Wilson said he isn’t concerned about demand destruction and business is great. He mentioned that he another analyst just put out a buy rating and target price of $160 on his stock today. Wilson explained that when the market falls off the stock corrects but the fundamentals of the industry prop it right back up. He said he doesn’t see demand falling off or that yields will be able to catch up fast enough. Wilson doesn’t think that supply will catch up with demand for at least 3 to 5 years. Finally, he said that it’s possible the company might have to take a write down of $280 million but it would be a small hit to the company. Najarian said the he likes all the fertilizer names because they’re in a great position. Adami said buy Agrium on a pull back.
Best Of Breed - Energy
The traders discussed the best of breed stock for the energy sector. Najarian said the best of breed for the energy space is ConocoPhillips (COP). He mentioned that Conoco was just awarded a contract from Abu Dhabi to explore a $10 billion natural gas field in the Middle East. Najarian said Conoco is too cheap and the company is growing through entering the natural gas market.
Emerging Market Trade
The traders spoke with Tim Seymour, emerging markets specialist about which emerging market stocks are values at these depressed levels. Seymour said he likes Embraer (ERJ), Tata Motors (TTM) and CTC Media (CTCM).
POPS&DROPS
POPS- Qlogic Corporation (QLGC) moved up 9% after the company raised its profit and sales guidance for the first-quarter. Adami said take profits. Schlumberger (SLB) shot up 1% after J.P. Morgan added the stock to its Focus List with a $140 price target. Najarian said good day for SLB. Wellpoint (WLP) popped 2% after news broke that First American Trust bought 26,000 shares. Finnerman said valuations are cheap.
DROPS- Chesapeake Energy (CHK) dropped 6% after the natural gas company said it will issue 25 million shares of stock to pay off debt. Najarian said he likes the stock at current levels. Tesoro (TSO) fell 12%. Finnerman pointed out that the refiners have been struggling to make money when oil was up. Northwest Airlines (NWA) dropped 16% today as it announced job cuts and that it will charge $15 for the first bag checked. Macke said they are charging twice as much for an experience that’s half as good.
Trader Radar
Shares of Sealy Corporation (ZZ) were among the most actively traded stocks on the NYSE Wednesday.
Final Trade
Macke picked Gilead (GILD). Adami selected Celgene (CELG). Finerman likes Target (TGT). Najarian said buy Chesapeake Energy (CHK) on a pull back. 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!