Word On The Street
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Technology Trade
The traders talked about the best way to play technology into next week, and if Apple Computer’s (AAPL) earnings report can help the sector. Jon Najarian pointed out that he saw a large number of QQQQ (QQQQ) put options for September trade on Friday. He thinks the action is a contrary indicator and could be bullish for tech in general. Najarian thinks the shorts in tech have covered and the bottom is in. He recommended shares of Sandisk (SNDK) at $17, which he said could be setting up for a triple threat – earnings beat, revenues beat and bullish guidance. He also mentioned he likes Apple going into the earnings report.
CEO Cinemark Interview
The traders spoke with Cinemark (CNK) CEO Alan Stock. Stock said the poor economy has created fear among consumers, but his company is thriving. “I am not sure why the stock has been depressed this summer, but I can tell you our business in June set a record” Stock said. “Movies have performed well and the price at the pump is not affecting our overall business,” he says.
Energy Trade
Najarian pointed out that Schlumberger (SLB) reported a 13% increase in second-quarter profits, due to heavier spending from customers search for oil and natural gas. He thinks the news is bullish ahead of the earnings reports for Halliburton (HAL), ConocoPhillips (COP) and Baker Hughes (BHI) – which all provide technology and services to help oil and natural gas companies find reserves. Macke warned investors to have an exit plan with this trade because the up trend is broken.
Wall Street Future
Charlie Gasparino joined the traders to talk about the future of investment banks. “The problem is in the business model,” Gasparino said. He mentioned he doesn’t think the independent investment banks can survive alone. He thinks they will have to merge with banks due to the damage from downgrades. However, the problem is that no banks are in a position to buy them right now. Gasparino said that more writedowns are on the way for Lehman Brothers (LEH), Merrill Lynch (MER) and Morgan Stanley (MS). Finerman agreed with him and said the Federal Reserve wants to see it happen as well.
POPS&DROPS
POPS- Intel (INTC) shot up 7% after the chipmaker posted a 25% jump in second-quarter profits. Macke said the stock doesn’t have much going forward. Nokia (NOK) jumped 6% following better-than expected earnings. Najarian wants to see the stock follow through. Mattel (MAT) soared 19% after the toy maker posted solid earnings. Macke said he likes Hasbro (HAS) better. Macy’s (M) surged 17% after JPMorgan removed the stock from its sell list. Finerman said the turnaround is nice at Macy’s. Imax (IMAX) ripped higher by 19% on news of strong ticket sales for “The Dark Knight.” Macke said the stock has gotten ahead of itself.
DROPS- Advanced Micro Devices (AMD) fell 4%. Najarian said if the slide continues they will go out of business. ConocoPhillips (COP) dropped 5%. Terranova thinks the next move for COP is higher.
Fast Fire
Finerman said buy Macarthur (MACDF). She was dead wrong and shares of MACDF fell 10% from her call, however she said she is staying long the stock. Najarian recommended shares of ConocoPhillips (COP). He missed the market and shares fell 12% from his recommendation. Najarian said he liquidated his position in COP. Terranova told investors he liked Google (GOOG) and he was long the search king. He dropped the ball and Google slid 10% from his call. Terranova pointed out that Goldman Sachs Group has a $650 price target on Google and he is staying with the stock for now. Macke said to get long the USO (USO). Since his call USO has plunged 6%. He said the trendline was broken, so he would out of the oil ETF.
Quicker Then The Ticker
Macke told investors to buy Goldman Sachs Group (GS) in the low $150’s. He was dead right and the stock shot up 12% from his call. Najarian recommended buying Huntsman Chemical (HUN). He was correct to get long the stock and shares popped 14%. Terranova said JP Morgan (JPM) is a steal in the lower $30’s. He was right and the stock surged 16% after the bank beat profit estimates. Finerman disclosed her hedge fund was short Big Lots (BIG). Shares of the discount retailer fell 10% from her call.
Trader Radar
Shares of Mattel (MAT) were among the most actively traded stocks on the NYSE Friday.
Final Trade
Macke likes McDonald’s (MCD). Terranova picked Freeport McMoRan (FCX). Najarian selected Halliburton (HAL). Finerman said buy Pride International (PDE). This thin film photovoltaic (TFPV) SOLAR CELL manufacture may be the next FSLR! Read the free research report available today