Word On The Street
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Tech Trade
The traders discussed some ways to play the technology sector. Najarian said he likes Cisco Systems (CSCO). Terranova recommended shares of Research In Motion (RIMM). Tatro likes IBM (IBM)
Healthcare Trade
The trades looked at some stocks to play the healthcare sector with, now that the sector has racked up the best returns for the S&P 500 last month. Tatro said stay with what works like Intuitive Surgical (ISRG) and Johnson & Johnson (JNJ). Najarian likes Novartis (NVS) is the best play.
Plastic Trade
The traders talked about trading Visa (V) and MasterCard (MA) ahead of their earnings reports set for next week. Najarian said these aren’t credit card plays, they’re transaction plays. He pointed out that the best thing to learn from these reports will be the spending trends of American consumers. Najarian said he likes American Express (AXP) for a long-term trade at current levels, and Visa and MasterCard in the short-term. Terranova said don’t touch American Express, he likes Visa and MasterCard as transactions plays. Tatro warned investors that Visa and MasterCard are both broken technically.
POPS&DROPS
POPS- T. Rowe Price (TROW) popped 4% after reporting earnings in-line. Terranova likes the name. CME Group (CME) shot up 11% after the exchange operator reported a 60% surge in second-quarter net income. Terranova said he likes this name. NII Holdings (NIHD) jumped 20% after the wireless company reported a better-than-expected profit. Seymour said he likes the story for a play on Latin America. Garmin (GRMN) rose 4%. Tatro said he’s long GRMN into earnings, but he plans to sell some into the report.
DROPS- General Motors (GM) dropped 9% after the car maker reported a 5% drop in second-quarter sales. Seymour said buy the stock. Coscto (COST) slipped 15% after the retailer guided fourth-quarter profits below Wall Street estimates. Tatro said stay away. Abercrombie & Fitch (ANF) lost 6% after its CFO resigned and three analysts cut their rating on the stock. Terranova said avoid ANF.
Coal Trade
The traders spoke with Arch Coal (ACI) CEO Steven Leer after the company raised its full-year outlook. “Looking forward we see the energy deficit continuing over the next three to five years and actually growing over the next three to five years,” Leer told the traders. He said he expects big growth from Asia as China adds one coal-fired power plant a week. Najarian said he owns International Coal Group (ICO). Terranova disclosed he bought Market-Vectors Coal (ETF) (KOL) this week.
Fast Fire
Terranova said investors should stay with Suncor (SU). However, he was way off the market and the stock fell 10% from his call. He said Suncor is still one of his core holdings. Seymour suggested Boeing (BA) for a trade off the defense industry. He was wrong and the stock dropped 14% from his call. Seymour said he thinks the story will get better. Najarian recommended Chesapeake (CHK), but the stock market didn’t care after shares slid17% from this call. He said the play could work later in the summer. Tatro said investors should buy solar stocks like Energy Conversion Devices (ENER) and Ascent Solar (ASTI). Unfortunately, he was way too early and these stocks dropped 20%. He admitted it was a horrible call, but said he still thinks solar stocks are the real deal.
Quicker Then The Ticker
Terranova told investors he liked Amazon.com (AMZN). He was right and the stock soared 16%. Seymour said Brazilian aircraft maker Embraer (ERJ) is one of the best companies in the world. The stock responded accordingly, rising 12% from his call. Najarian recommended shares of Biogen (BIIB). He was on the money and the stock surged 11%. Quint Tatro advised viewers to buy Apollo Group (APOL). He hit this call out of the park and the stock ran up 18% from his call.
Trader Radar
Shares of Abercrombie & Fitch (ANF) were among the most actively traded stocks on the NYSE Friday.
Final Trade
Seymour likes shorted dated options on Russian Depository Index (RDX). Terranova picked Schlumberger (SLB). Tatro Said get long UltraShort MSCI Emerging Markets ProShares (EEV) and get long iShares FTSE/Xinhua China 25 Index (FXI) against it. Najarian said buy Cisco Systems (CSCO). Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com