Cisco Talk
Jeff Evenson of Sanford Bernstein joined the traders to discuss Cisco Systems (CSCO). He said he expects Cisco to report an in-line quarter. He said the stock is undervalued and he currently has an outperform rating on the shares. Evenson also said that EPS could move higher next year for Cisco.
Boeing Talk
The traders focused on Boeing (BA) and debated if the stock is a value trap or a value play. Macke said its a value trap and their customers are going under. Finerman said that fear is pushing the stock down. She cited that the stock is trading at 10 and a half times earnings and its a value. She thinks the bad news is priced into the stock.
China Trade
The traders discussed ways to play China with the stock market in the Far East down 45% on the year. Seymour said valuations are ridiculously high. He disclosed he is short iShares FTSE/Xinhua China 25 Index (FXI) against stocks he likes in China. However, he said for smaller investors he would be long the FXI for the next 6 months to a year. Adami pointed investors towards China Mobile (CHL).
CEO Interview Boyd Gaming
The traders spoke with Boyd Gaming CEO, Keith Smith about his company’s prospects, following the news that Boyd is delaying the construction of a casino in Las Vegas. The news sent shares of Boyd up as much as 30%. Smith said the his company isn’t going to walk away from building the Echelon project. He said the company is working towards getting better terms for the casino in the next three to four quarters. Smith said it’s not a change of strategy just a change of timing. Adami said the fact the stock shot up so much because the company isn’t building something isn’t good. He said if you want to gamble buy it for a trade. Seymour said it’s a tough time to buy any casino stock.
Fast Fire
Macke advised investors to buy Costco (COST). Unfortunately, he was wrong and the stock fell 16% from his call. Macke said he is still long the stock. Finerman picked American Express (AXP) due to the stock’s cheap valuation of 12 times earnings. Since her recommendation the stock has fallen 11%. Finerman admitted she was too early on the name. Adami told investors to buy MasterCard (MA). He was dead wrong and the stock dropped 13%. Adami said he thinks the story is still good and investors should look to buy the stock around $230.
Quicker Then The Ticker
Finerman told investors to buy Washington Mutual (WM) She nailed this call and shares of WM shot up 36%. Macke recommended investors steer clear of shares of General Motors (GM). He was right and the stock fell 17% from his call. Adami felt that US Bancorp (USB) was ready to trade up to $30 a share. He was right on the mark and USB traded up 15% from his call.
POPS&DROPS
POPS- Kraft (KFT) jumped 9%. Sunoco (SUN) soared 17% on increased margins. Finerman said the rally for shares of SUN could be over. Chesapeake Energy (CHK) popped 2% after the natural-gas producer beat earnings. Adami said he thinks the stock goes higher.
DROPS- NYSE Euronext (NYX) fell 13% after the exchange firm posted poor earnings. Seymour said the stock has been getting hammered. Sirius Satellite Radio (SIRI) plunged 35% after the company was granted merger approval with XMSR Satellite Radio (XMSR). Macke said the merger is dilutive to shareholders. MasterCard (MA) fell 10% after the credit card issuer beat earnings. Adami said buy this stock near $225. Nortel Networks (NT) lost 9%.
Trader Radar
Shares of Campbell Soup (CPB) were among the most actively traded stocks on the NYSE Friday.
Final Trade
Macke picked the Financial Select Sector SPDR (XLF). Finerman likes Transocean (RIG). Seymour recommended Embraer (ERJ). 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!