Fast Money Recap: All Eyes on Research in Motion (6/17/09)

Recap of CNBC's Fast Money, Wednesday June 17.

Tech Strength: Texas Instruments (TXN), Intel (INTC), Cisco Systems (CSCO), Qualcomm (QCOM), Research in Motion (RIMM), Nokia (NOK)

Tech was perhaps the sole area of strength on Wednesday with a Texas Instruments upgrade, but Adami thinks TXN is too rich and prefers Intel at $15. Cisco Systems preformed well as well as Qualcomm, which was added to Goldman Sachs conviction buy list. Pete Najarian thinks QCOM is the best of the group and is a main beneficiary of strength in China.

Research in Motion reports earnings on Thursday, and the results are expected to be impressive. The group said the main metrics to watch are gross margins, subscriber additions and number of units shipped, and the company has excelled in all three areas. Citigroup analyst Jim Suva puts a price target for RIMM at $100. Joe Terranova would get long at $73, while Jon Najarian would sell puts in the stock to get a lower price. Tim Seymour also likes Nokia.

Correction or Complacency? Fed Ex (FDX)

Both fundamental and technical indicators show that the market could continue to decline. Fed Ex, which is thought to be a tell on the markets, said that it is losing money, and while the Dow has been performing decently, transports have been falling off. Guy Adami says investors have been complacent; "The path of least resistance is down. We traded up to the 200-day moving average in the S&P 500 and failed a couple times.” Jon Najarian says he expects a 5% to 10% correction.

JP Morgan (JPM), Wells Fargo (WFC), Huntington Bancshares (HBAN)

Standard & Poor cut ratings on 18 banks and put Huntington Bancshares on its list of "junk" banks. Guy Adami thinks it is still possible to short JP Morgan with a tight stop and Pete Najarian predicts Wells Fargo will go to $20.

Deflation Worries: Home Depot (HD)

Deflation seems to be a bigger concern than inflation, and the situation can happen quite suddenly, noted Joe Terranova, pointing to volatility in commodities as a sign. Guy Adami says Home Depot is the way to play the possibility of deflation.

Broadband Boom: Cisco (CSCO), Sina (SINA), Shanda Interactive (SNDA), China Unicorn (CHU), China Mobile (CHL)

While the economy has been slowing, demand for broadband has not, and China is likely to outstrip America and the world's largest market. Jon Najarian would consider buying Cisco for its servers and routers and Sina and Shanda for content. Tim Seymour likes China Unicorn and China Mobile.

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Comments

[Warm_Paw:]

The obvious question which no media has seemed to grasp:
If RIMM is doing so well, why is it's share price falling?
Who has inside information?
Of course writers will write a plethora of articles on topics which say absolutely nothing, but when it comes to explaining the obvious, the media miss the boat.
Is it a blind eye, or just sheer stupidity?
As Shakespeare would quote "...was a tale told by a fool, full of sound and fury, yet signifying nothing..."
Keep up the good work Fast Money Recap - you've grabbed my attention and wasted my time.
You've told me absolutely nothing.
It may rain tomorrow, it may not.

Jun 18 10:44 AM

[lodro:]

That Chinese Unicorn (CHU) is not a mythical single-horned animal but a telephone company UNICOM. This sort of error does not inspire confidence.

Jun 19 09:49 PM

[wendling_r:]

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It costs you nothing except the amount of time it takes you to read and research the information on the site. The information on the site is provided to inform you not to guide you into which stocks to buy for your investing future.

Richard W. Wendling

Jun 20 12:30 PM