The following is a recap/review of the CNBC hit show Fast Money for January 31, 2007. Enjoy!
Front Page- Bernankelocks, China’s Stock Market, Trading Google
Steve Liesman was on the show and he made the commend that the Fed and the market are in tune. He believes the market rallied because the Fed did nothing. Bolling thinks that Bernanke is data driven and investors need to stay long Gold. Strazzini is still bullish on Chemical stocks and he likes Lyondell Chemical Co (LYO) and Dupont (DD). He feels that emerging stock markets are not a value here. Adami thinks that a rate hike in the future is still in play. Macke likes that the Fed is backing off and he is bullish on retailers like The Home Depot Inc (HD), Target Corp (TGT), and The Lowes Companies Inc (LOW). The Chinese stock market was crushed today down 7% after the Chinese govt. warned investors that only one third of the companies in that country currently meet US investment standards. StrazziniMacke thinks investors should stay with US stocks they’ve less risk. Bolling feels that that the iShares FTSE/Xinhua China 25 Index Fund (FXI) correction is nothing to worry about. China still has strong growth. Adami thinks that the FXI is okay until the 2008 Beijing Olympic games. Macke thinks that investors need to stay with Google Inc (GOOG). Bolling still feels that Google is a buy but don’t buy it until it breaks over $513. Adami still thinks the $450 puts are going to work for February options expiration.
Take Your Position- Earnings
Macke and Adami were bearish on Amazon.com Inc (AMZN). They both feel the stock trades at too high a price to earnings. The CFO from Hilton Hotels Corp (HLT) Robert LaForgia was on the show tonight via phone to talk about his companies prospects. He was talking up HLT’s fundamentals and he was bullish on the European traveller coming to the U.S. because of the currency advantage Strazzini and Bolling were both bullish on HLT. Adami thinks that HLT can go up another 12%. Strazzini also is bullish on Four Seasons Hotels Inc (FS) and Choice Hotels International Inc (CHH).
Word On The Street
Word on the street is that Michael Dell is coming back to Dell Corp (DELL) to become the CEO again after 3 years. Adami thinks that DELL will be a turnaround play for late 2007, but don’t chase the stock now. Adami is bullish on The Boeing Company (NYSE:BA) and he thinks it goes to $100. The guys discussed the insurance trade and Strazzini was happy he made the right call to get out of Allstate Corp (ALL). He still likes Metlife Inc. (MET). The dollar trade was also discussed and Bolling thinks the entire trading world thinks the dollar will go down. If you want a way to play it buy the Powershares DB G10 Currency Harvest Fund (DBV). Macke thinks the way to play the falling dollar is to get long U.S. stocks.
Face 2 Face
A viewer asked if Steve Job’s options scandal will hurt the stock of Apple Inc (AAPL). Macke said it’s not a problem and he would buy AAPL in the low $80s. Another viewer asked if Corn is still a buy. Bolling thinks Corn still has plenty of more upside and he would buy Agrium Inc (AGU) and The Deere & Co (DE). The last viewer asked if Level 3 Communications (LVLT) is going to move higher. Adami called LVLT a lottery ticket.
Sea Change - Media Wars
Bolling thinks that Nintendo Co. Ltd (NTDOY.PK) will win the video game console war and he would buy the stock. Macke is also bullish on Nintendo and he would also buy video game makers Electronic Arts Inc (ERTS) and Activision (ATVI). Adami would play the video game chip maker Nvidia Corp. (NVDA).
Final Trade
Adami is bullish on Hilton Hotels Corp (HLT). Bolling is bullish on the CurrencyShares Euro Trust (FXE). Strazzini would sell the March Dell Corp. (DELL) calls if it opens up early. Macke would buy Abercrombie & Fitch Co. (ANF) on a dip and Gap Inc (GPS) on dips.