Financial Take
The “Fast Money” trades started out the show with a discussion about the takeover rumors swirling around Lehman Brothers (LEH). Pete Najarian said he sees more upside than downside with Lehman Brothers. Zach Karabell didn’t agree. He explained that its hard to know what is going on at Lehman. Quint Tatro thinks the financial stocks are a gamble. Jeffrey Hare of Sandler O’Neill also weighed in on Lehman Brothers. Hare reduced his estimates for the broker stocks including Lehman Friday. He said the biggest problem with Lehman is the lack of confidence in the balance sheet. “I just think with the size of their commercial and residential mortgage portfolio, investors don’t have confidence in what book value they’re buying,” he said. He mentioned that a takeover of Lehman is unlikely until they fix the balance sheet.
Fannie/Freddie Talk
The traders spoke with Richard Baker, CEO of Managed Funds Association about the controversy surrounding Frannie Mac (FNM) and Freddie Mac (FRE). Backer said the only way to save FNM and FRE is to allow them to sell products without any restrictions. He said its hard to find anyone who supports these companies in their current state. “It’s a question if they can lay out a legitimate analytics to convince investors that their assets are real,” Baker said.
Whale Watching – Warren Buffett
The gang discussed comments made be Warren Buffett this morning on CNBC that he is no longer betting against the U.S. dollar and he has been adding to one of the financial stocks that Berkshire Hathaway holds. Buffett wouldn’t specify whether it was American Express (AXP) or Wells Fargo (WFC). Najarian thinks its American Express because he is seeing double the options action in AXP versus Wells Fargo. Zach Karabell mentioned he isn’t impressed with Buffett because Berkshire Hathaway (BRK.A) hasn’t been performing.
China Technicals
Quint Tatro told viewers that the IShares FTSE/Xinhua China 25 Index (FXI) looks like its putting in a double bottom on the chart. He thinks from a technical perspective the risk/reward looks very bullish. Tatro also likes the fundamentals for China.
Dennis Gartman On Commodities
Strategic investor Dennis Gartman, author of The Gartman Letter joined the crew to discuss some commodity plays. Gartman said he still likes the grain market and he is long. He said he likes corn and wheat the most in the space. He recommended playing commodities with the PowerShares DB Agriculture Fund (DBA). Moving on to crude oil, Gartman told viewers steer clear and the action is atypical. He also likes the action in the dollar and he noted the euro couldn’t rebound today. Finally, Gartman said everyone he talks with is bullish on gold. He advised viewers to make the hard trade and get out of gold or short it.
RIMM Talk
Joe Terranova told viewers that he is long Research In Motion (RIMM). Zach Karabell reminded the trades that Nokia (NOK) is coming out with a phone that will compete with the new BlackBerry Bold.
Options Action

Jon Najarian joined the traders to discuss some stocks with interesting options action. He pointed out that Charles Schwab (SCHW) and Akamai (AKAM) had bullish call activity. The action suggests to him that news could be coming for these stocks. 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!