Word On The Street
WORD VIDEO HERE
Crocs Flop
Shares of Crocs (CROX) plunged after hours following the company’s weak profit and revenue forecast. The company said their problems were due to a challenging U.S. market for shoes. Terranova asked the traders which $5 stock would they own here – Ford Motor (F), Crocs (CROX) or Washington Mutual (WM)? Seymour said Ford is the best play for its overseas exposure. He said he has been buying the stock at current levels. Macke said he wouldn’t touch any of them.
Financial Trade
Finerman advised investors to cover the short trade on the Financial Select Sector SPDR (XLF) she recommended a few days ago. However, she did say she likes BB&T Corp (BBT) as a short play on the commercial real estate market here. Finerman also disclosed she bought Washington Mutual (WM) today.
Wynn Resorts Earnings
Wynn Resorts (WYNN) posted second-quarter profits that more than tripled due to strong growth out of Macau. Macke thinks it’s time to sell Wynn and all the casino stocks.
Earnings Talk
The traders talked about trading in an earnings environment where expectations are lowered. Najarian said keep an eye on Prudential (PRU). He thinks the company has the potential to turn themselves around. He also likes Tesoro (TSO) and Valero (VLO). Terranova also likes Valero.
Commodity Trade
The traders talked about trading the new downtrend in commodities that is sweeping over the market. Seymour said he likes Vale (RIO) for a play on iron ore in Brazil and he also likes Gazprom. He said if you want to hedge any long commodities positions, then short the ETFs like iShares MSCI Brazil Index (EWZ) or the Russian Depository Index (RDX). Terranova advised investors who want to play commodities to buy Bucyrus (BUCY) and Joy Global (JOYG) for a trade. He mentioned he would avoid the resource stocks here.
CEO Cult Stocks
The traders discussed how stocks that have a celebrity CEO often fall when the big name boss leaves. A perfect example of this is Steve Jobs and Apple Computer (AAPL). When Apple’s CFO dodged a question about Job’s health the stock lost $6 billion in market cap. The traders said look out below on Apple, Berkshire Hathaway (BRK) and NewsCorp (NWS) when their superstar CEOs leave.
Trader Radar
Shares of Chipotle (CMG) were among the most actively traded stocks on the NYSE Thursday.
Face2Face
Lou from California writes, “With record gas prices and crude falling, why are refiners stuck near 52-week lows?” Terranova said its’ all about demand destruction. He said his favorite play int he space is Valero (VLO). Larry from Texas writes, “Will a merged XM Satellite (XMSR)/Sirius Satellite (SIRI) be able to compete with the iPhone and should I sell the rally these names?” Macke said to see how the merger plays out.
Final Trade
Terranova likes Schlumberger (SLB). Seymour picked Russian Depository Index (RDX). Finerman said get short BB&T Corporation (BBT). Join the fastest growing community of small cap investors at Stockhideout.com