Fast Money Recap, 3/25/08: Clear Channel, Obscure Deal

by: Miriam Metzinger

Recap of CNBC's Fast Money Program, Tuesday March 25. Click on a stock ticker for more analysis.

Tuesday's Market

Tim Seymour saw a bottom for equities on Tuesday, but noted the yen and the euro were stronger than it usually is in that kind of scenario. Jeff Macke said there is much ado about whether the market has bottomed or not, and noted the fact that the market had many opportunities to tank but didn't was a good sign.

Clear Channel (CCU-OLD)

Amid roadblocks obstructing the deal to take CCU private, Najarian doesn't think Bain Capital or Thomas H. Lee mind if the deal fails, since private equity has been paying too much for acquisitions. Seymour is not partial to mergers now. Karen Finerman says she has spreads on CCU and there will be a downside if there is no deal; the stock could plummet to $20. Najarian thinks option traders were privy to news the deal was crumbling. Macke said the deal was "too leaky" and Seymour would also stay away.

Commodities and Energy: U.S. Steel (NYSE:X), Cleveland Cliffs (NYSE:CLF), Nucor (NYSE:NUE), Chesapeake Energy (CSK), Andarko (NYSE:APC), Apache (NYSE:APA), EOG Resources (NYSE:EOG)

Steel and iron ore are rising, and Seymour would buy cement companies on the global growth of infrastructure. Macke is bullish on steel, but Najarian noted steel has had a big move already and thinks CLF and NUE are high. In the energy sector, Najarian picks include CSK, APC, APA and EOG.


Macke expects a good earnings report from ORCL, but since the stock has risen 10%, he recommends selling some. Seymour likes Oracle's international exposure.

CSX (NYSE:CSX), Burlington Northern Santa Fe (BNI), Canadian National (NYSE:CNI), Potash (NYSE:POT), Monsanto (NYSE:MON)

CSX's rise earned the company attention as Fast Money's Chart of the Day. Najarian likes rails on the strength of agriculture stocks Mon and POT, with special attention to BNI and CNI.

Roger Neshem, North Dakota Farmer: Lindsay (NYSE:LNN)

Neshem reported he and many farmers are growing more wheat and that LNN is thriving on rising corn production and more demand for irrigation methods.

Consumer Confidence: Boeing (NYSE:BA), GM (NYSE:GM), Corning (NYSE:GLW)

Macke suggested investors stay away from durable goods while consumer confidence is sluggish, but likes BA and would buy it at $70. Finerman noted BA's large backlog and Seymour said BA has a huge order book. Seymour thinks low consumer confidence has been priced in, and predicts GM might have a good earnings report. Macke said the barrier between low-end and luxury is crumbling thanks to new technology and is bullish on GLW.

Alternative Energy: FPL Group (FPL-OLD)

Oil investor T. Boone Pickens plans to invest $10 billion in wind power, and Najarian would take a look at FPL Group which has 55 wind farms and less speculative forms of revenue. Macke thinks transportation is the main problem with wind power, and Finerman would like to see an end to the government's aggressive ethanol policy, which is driving up the price of food.

Honeywell (NYSE:HON), Omnivision (NASDAQ:OVTI) HON and OVTI saw substantial call activity and Najarian noted volatility in HON, which has many big Chinese contracts. Najarian is long OVTI.

Trader Radar: Williams-Sonoma (NYSE:WSM) dropped more than triple its average trading volume on Tuesday.

Fast Messages: Visa (NYSE:V), Mastercard (NYSE:MA), Microsoft (NASDAQ:MSFT), Yahoo (NASDAQ:YHOO), XM Satellite Radio (XMSR), Sirius Satellite Radio (NASDAQ:SIRI)

Macke reiterated his advice to wait for Visa to pull back and to buy MA instead. Seymour told another viewer to play the global infrastructure buildout with steel. Finerman said MSFT could see an upside on April 24th's earnings report but says the company needs a resolution on the Yahoo deal. Najarian likes wind power's story long-term, and concerning XMSR and SIRI, Macke would prefer to be long SIRI but thinks the delay in the merger has reduced value for both companies.

Final Trade: Macke: Intel (NASDAQ:INTC), Seymour: Tesoro (NYSE:TSO), Finerman: Philip Morris, Najarian: Oracle (ORCL)

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