Fast Money Recap - Monsanto's Busting Out All Over (6/23/09)

Recap of CNBC's Fast Money TV Program, Tuesday June 23

Monsanto (MON)'s Busting out All Over

Frank Mitsch, BB&T analysts, says Monsanto is a "screaming buy" ahead of its earnings report and says he expects to hear margins are getting better and better. The company's corn seeds have been gaining market share for years, he said, and are driving the company higher.

Stocks Stuck in a Rut? Research in Motion (RIMM), UYG (UYG), XLF (XLF)

Investors seemed cautious ahead of the Federal Reserve meeting on Wednesday. Karen Finerman thinks rate hikes are not likely, and Joe Terranova was glad to see strong performance by commodities and financials. Terranova said he bought some RIM. Pete Najarian has his eye on UYG and says if the XLF goes up one point, it should move two. Tim Seymour thinks the market will not drop much further, but may be stuck in a rut for a while; nstitutional investors do not want to be seen as hasty, so there may not be huge moves up or down. Chris Thornberg, principal at Beacon Economics, thinks the Fed is going to have some trouble finding a balance between quantitative easing and risking inflation.

Oracle (ORCL) Profits

While Oracle's sales and earnings declined, it still managed to beat estimates with profit at 46 cents per share, surpassing estimates of 44 and new software sales declining 13 percent compared to the expected 18. Pete Najarian was impressed with Oracle's 51% operating margins and said the company, unlike Microsoft, can grow substantially through acquisitions. Tim Seymour noted Oracle's tendency to perform well the fourth quarter and expects challenges ahead. Another trader said the price-to-earnings ratio is a bit rich and he wouldn't buy.

Where the Heart Is: Boston Scientific (BSX), St. Jude Medical (STJ), Medtronic (MDT)

Boston Scientific's shares climbed on studies that its cardiac resynchronization therapy can delay heart failure. The rate at which the disease could be slowed was a surprise even to those who were following news about the device and J.P Morgan analyst Michael Weinstein expects a growing market for defibrillators and other heart devices. He thinks St. Jude Medical and Medtronic will benefit.

Boeing (BA) Fails to Take off

Boeing's stock price declined 8%, and it brought the blue chip index down on its fifth delay of the 787 Dreamliner. Karen Finerman called the delay a "colossal" embarrassment.

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Comments

[TCK:]

Please be cautious on the UYG. It does not move 2/1 points vs XLF

Like most 2X Longs likey will go to zero without reverse split.

Look at the chart !

Jun 25 05:19 AM