Seeking Alpha
Long/short equity, tech, banks, oil & gas
Profile| Send Message|
( followers)  

CNBC's 'Fast Money' Halftime Recap: Apple Derivatives & Pops and Drops

Here are highlights of stocks discussed on CNBC’s Fast Money "Halftime Report" on July 20.

Apple (NASDAQ:AAPL) Derivative Plays

The Fast Money team gave their insights into potential Apple derivative plays based on Apple’s recent blow out earnings report. The team reviewed several downstream plays, however as Dan Cortez very adroitly pointed out, the best way to play Apple, is long Apple. Cortez explained Apple is an uncompromising negotiator with its vendor partners, which improves Apple’s bottom line but may be detrimental to its partners. The fast Money team all agreed, nonetheless, the following are highlights of the fast Money trader’s top Apple derivative plays.

Qualcomm (NASDAQ:QCOM) – Brian Kelly, of Brian Kelly Capital stated:

In terms of this mobile space one of my favorite places to go is Qualcomm, that’s a name that I’m long; you really get the broad spectrum in that particular area.

QCOM engages in the development, design, manufacture and marketing of digital wireless telecommunications products and services. The company is trading below analysts' estimates. QCOM has a median price target of $67 by 37 brokers and a high target of $80. The last up/downgrade activity was on Apr. 8 when MKM Partners upgraded the company from Neutral to Buy.

Broadcom Corp. (NASDAQ:BRCM) – Zach Karabell, of River Twice Research, stated:

I think Broadcom is interesting, because unlike Qualcomm, which has been the obvious play, Broadcom has massively underperformed. I am more interested in the higher beta plays if you are going to do the derivative of the Apple story.

Broadcom Corporation designs and develops semiconductors for wired and wireless communications. The company is trading significantly below analysts' estimates. BRCM has a median price target of $45 by 38 brokers and a high target of $55. The last up/downgrade activity was on Apr 6, 2011, when Oppenheimer upgraded the company from Perform to Outperform.

American Tower Corp. (NYSE:AMT) - Jon Najarian, founder of Optionmonster.com, said:

I like the American Towers, Crown Castle International Corp. (NYSE:CCI), and TESSCO Technologies Inc. (NASDAQ:TESS). Those are the companies that I would look at as far as how are you going to work with the back haul of data? The iPhone is all about data… or (in other words) they need more of exactly what the three companies I just mentioned provide.

American Tower Corporation, through its subsidiaries, operates as a wireless and broadcast communications infrastructure company. The company is trading significantly below analysts' estimates. AMT has a median price target of $60 by 18 brokers and a high target of $67. The last up/downgrade activity was on Mar 15, 2011, when UBS upgraded the company from Neutral to Buy.

Pops and Drops Highlights

Pops:

Piper Jaffray Companies (NYSE:PJC) – Up 12% - Brian Kelly, of Brian Kelly Capital stated, “I like the company, but with a 12% move you have to take some off".

Piper Jaffray Companies provides investment banking services, institutional sales, trading and research services, and asset management services worldwide. The company is trading below analysts' estimates. PJC has a median price target of $34 by 5 brokers and a high target of $40. The last up/downgrade activity was on Apr 6, 2011, when Ticonderoga initiated coverage on the company with a Neutral.

Nalco Holding Co. (NYSE:NLC) – Up 23% - Zach Karabell, of River Twice Research, stated:

They got a takeout bid from Ecolab Inc. (NYSE:ECL), this is the company that came to mind during the BP spill, they produce the chemical that disperses oil and are good for other reasons, but you don’t jump into this at the acquisition price.

Nalco Holding Company engages in the manufacture and sale of specialized service chemical programs worldwide. The company is trading on par with analysts' estimates. NLC has a median price target of $33 by 12 brokers and a high target of $35. The last up/downgrade activity was on Feb 3, 2010, when Roth Capital downgraded the company from Buy to Hold.

Drops:

CSX Corp. (NYSE:CSX) – Down 2% - Dan Cortez of Veracruz Capital LLC, says, “A stellar report and yet the stock trades down. I am short the transports.”

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. The company offers traditional rail service, and the transport of intermodal containers and trailers. The company is trading below analysts' estimates. CSX has a median price target of $29 by 28 brokers and a high target of $32. The last up/downgrade activity was on Apr 21, 2011, when Stifel Nicolaus upgraded the company from Hold to Buy.

Hanesbrands Inc. (NYSE:HBI) – Down 9% - Jon Najarian, founder of Optionmonster.com, said:

This one even Michael Jordan couldn’t save them. Everything was in line except guidance; I’d lay back another 10% before you buy it.

Hanesbrands Inc., a consumer goods company, engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and internationally. The company is trading significantly below analysts' estimates. HBI has a median price target of $38 by 9 brokers and a high target of $40. The last up/downgrade activity was on Jun 9, 2011, when Barclays Capital downgraded the company from Overweight to Equal Weight.

Source: CNBC's 'Fast Money' Halftime Recap: Apple Derivative Plays, Pops and Drops