Fast Money Recap: Fortress Is Safe from Obama (5/1/09)

Recap of CNBC's Fast Money, Friday May 1.

Fortress Stays Strong (FIG)

Private equity firm Fortress jumped on Friday in spite of President Obama's harsh words for hedge funds over Chrysler's collapse. While Fortress was not directly involved, the entire sector is bore the brunt of the criticism. So why did shares of Fortress rise? Karen thinks investors see potential in the sector, especially since it got so brutally punished during the worst of the crisis. However Joe Terranova thinks the gain was the result of a short squeeze, and he wouldn't invest in the space.

Will Disney's Quarter Have a Happy Ending? (DIS)

USB analyst Mike Morris thinks Disney's earnings on Tuesday will be a bittersweet tale. Ad sales will be the main antagonist, and in this area, Morris expects to see a 12% decline. However, the theme parks are not declining too badly and Disney is performing well at the box office. Morris concluded that he expects a tough quarter but likes Disney long-term.

Another Rally: Mastercard (MA)

Guy Adami says the rally is getting tired and finds it difficult to get long any stocks after such a big bull run. However, Joe Terranova thinks many are underinvested and he predicts there will be a surge in buying when the market surpasses 900 and investors will want to join the momentum. Karen Finerman say she likes Mastercard but Pete Najarian prefers it lower at $151. Tim Seymour sees bullish sentiment in global PMI numbers.

Bankruptcy for GM (GM), Ford (F), Borg Warner (BWA)

On Chrysler's bankruptcy, GM shares fell on worries that it would follow suit and file Chapter 11. Phil Lebaeu of CNBC says it is inconceivable that GM will not file for bankruptcy. Adami called GM a trader's stock and thinks it could well go to zero. Karen Finerman thinks GM may be given some time to pay its debts, but wouldn't be surprised to see it file Chapter 11 by June 30th. Guy Adami said he might consider buying Ford or Borg Warner, but added the latter is a tad rich right now.

Research in Motion (RIMM)

UBS analysts Maynard Um upgraded Research in Motion on the fact it faces minimal competition in the enterprise market, and that RIM should see a significant upside when the economy recovers. Guy Adami accepts Um's thesis, but he adds the stock has jumped over 50% since early March.

A Serious Tone for Berkshire Hathaway (BRK.A)

This has been the toughest year yet for Warren Buffett, and the annual Berkshire Hathaway's Conference is expected to be sober affair, but with a record number of attendees (35,000 up from 32,000 last year.)

"I expect a more serious tone this year," says Bill Bergman, an equity analyst at Morningstar told Fast Money "Berkshire investors aren't used to a 40 percent decline in the market value of their shares."

Breaking with tradition, the company will not announce earnings at the eve of the convention.

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Comments

[russ:]

The headline " . . safe from Obama" is stupid, misleading, and has nothing to do with the story that Fortis may be a solid purchase. Also, the minor headline on the car companies implies that Ford and Borg Warner will file bankruptucy. While no one confuses these columns with serious journalism or important economic analysis, someone in charge of needs better professonal standards. Good grief, you people are sloppy!!

May 04 08:15 AM