Fast Money Recap - 6 Companies That Make Real Things (3/6/09)

by: Miriam Metzinger

Recap of CNBC's Fast Money, Friday March 6.

Companies That Make Real Things: Dow (NYSE:DOW), Alcoa (NYSE:AA), Chesapeake Energy (NYSE:CHK), Family Dollar (NYSE:FDO), Suncor Energy (NYSE:SU), Bunge (NYSE:BG), Smithfield Foods (NYSE:SFD), Imperial Sugar (NASDAQ:IPSU)

Dennis Gartman thinks the current market is like a five and dime and there are a lot of companies worth buying cheap "because they are the maker of real things," he said, "Thing that if you dropped on your foot, they would hurt. It’s time to stand up and say I want to own wonderful companies that have been around for years and pay dividends,” he says. "And most of these stocks have stopped making new lows."
Gartman's picks are: Dow Chemical, Alcoa, Chesapeake, Family Dollar, Suncor Energy and Bunge. Pete Najarian said he agrees and would add Smithfield Foods and Imperial Sugar

Nearing a Bottom?

In spite of a dismal week, the Dow moved up by the end of the day after hitting 12 year lows. Guy Adami doesn't agree with those who say that this is the bottom: "It has to feel like the world is ending before we reach bottom." Karen Finerman says the rate of decline has not slowed yet, so there is no indication of a bottom. Pete Najarian says the financials need to participate, and his brother Jon says the bullying of Wall Street by the White House is not helping the markets.
Commodities: ConcoPhillips (NYSE:COP), Exxon (NYSE:XOM), Vendata Resources
Oil rose 4% to reach above $45 a barrel. Guy Adami would buy ConcoPhillips which is cheaper than Exxon on a valuation basis. Pete Najarian likes Vendata resources for copper.
American Express (NYSE:AXP), Visa (NYSE:V)
American Express nearly closed below $10 for the first time since 1995. Karen Finerman thinks that the company may be an attractive buy, and Pete Najarian noted Visa broke levels that had been support. He would own puts in Visa.

Roche Sweetens Offer for Genentech (Private:DNA)

Roche increased its bid for the part of Genentech it doesn't yet own from $86.50 to $93. Karen Finerman thinks there is no good news left in the stock after this, but Jon Najarian thinks this might breed more M&A deals in the sector.
Mr. Doom and Boom: Ivanhoe Mines (NASDAQ:IVAN), Novagold Resources (NYSEMKT:NG), Gabriel Resources (GBU), Gold Miners ETF (NYSEARCA:GDX), GLD (NYSEARCA:GLD)
Marc Faber a.k.a "Mr Doom" achieved fame by warning investors to sell stocks a week before the 1987 crash. But this time, he is actually bullish on certain stocks. Faber thinks commodities may be worth buying and would buy oil services. He especially likes gold companies with strong backing, such as Ivanhoe, NovaGold and Gabriel Resources. Pete Najarian reiterated his last week to be long the miners ETF and short GLD.
Exxon spending like there's No recession, McDermott (NYSE:MDR), Fluor (NYSE:FLR), URS (NYSE:URS)
Exxon is serious about increasing production, and plans to spend $29 billion on nine projects that will mean 485,000 barrels a day. Najarian would trade the energy trend with McDermott and Fluor. Adami likes URS.
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