Fast Money Recap, 3/31/08: Big Spender Lehman

Recap of CNBC's Fast Money Program, Monday March 31. Click on a stock ticker for more analysis.

Financials: Lehman Brothers (LEH), Merrill Lynch (MER)

Karen Finerman was skeptical about Lehman Brothers’ announcement that it will raise $3 to $4 billion in capital, and said the proposal was too expensive for the struggling financial. Jeff Macke did not think it was prudent to make a public announcement and for LEH to put its reputation on the line. Pete Najarian said both MER and LEH are very volatile right now, given the amount of put buying. On Treasury Secretary Hank Paulson’s plan to expand the Fed’s power over financials, Finerman thinks any reform will look very different in practice than it looks on paper and Jeff Macke thinks the government it buying time until the market recovers.

Transport: Burlington Northern Santa Fe (BNI), Westinghouse Air Brake (WAB), Trinity Industries (TRN) Although few companies excelled in their earnings, Guy Adami noted BNI’s huge rise and likes WAB on its $100 million contract with the New York subway system and TRN on its generous buyback.

Healthcare: Schering Plough (SGP), Merck (MRK), Eli Lilly (LLY), Genzyme (GENZ)

SGP and MRK were hammered when a panel of doctors said their drug Vytorin was no more effective than existing drugs. Najarian would look into LLY which produces anti- Effiant, a drug which prevents clotting. He also likes GENZ.

Energy: Exxon (X), Apache (APA), U.S. Oil Fund (USO), Alcoa (AA), Oil Service HOLDRS (OIH)

Oil dropped $4 on Monday, and Adami predicts it will fall below $100. He prefers natural gas stocks like APA to X. Macke said oil is rolling over or is establishing a range, and likes USO which has a tight stop. Najarian says AA’s range is similar to that of OIH and prefers AA.

Altria Spinoff: Philip Morris (PM), Altria (MO)

Finerman likes both MO and its recent spinoff, PM as long-term defensive stocks.

Commodities: Monsanto (MON), Dow Chemical (DOW), DuPont (DD)

Roger Neshem discussed the crop report, and said acreage for soybeans as well as corn prices are on the rise. He recommended MON, and Najarian added DOW and DD to the list.

Decoupling: Myth or Reality?

Mexico, Thailand, Taiwan and Chile were the only global equity markets that rose, and the group discussed the decoupling theory, which seems not to be holding up. Macke pointed out the inconsistency in talking about globalization during good times and decoupling during bad times, and predicted global markets will behave like leveraged-up U.S. markets.

Electronics: Best Buy (BBY), Corning (GLW) and Dell (DELL)

The group discussed possible ways to play BBY earnings in electronics, and Najarian thinks customers are walking away. Macke says BBY is the last man standing in its sector and thinks GLW and DELL may be buys on BBY’s report.

Trader Radar: Fortune Brands (FO) traded higher on more than double its average daily volume on Monday.

Steel: AK Steel (AKS), Steel Dynamics (STLD), U.S. Steel (X)

TheStreet.com’s Dan Fitzpatrick says steel is ready to rise and recommended AKS at $54 and STLD when it reaches its 50-day moving average. Adami would wait for a decline in X to buy.

CEO Richard Adkerson of Freeport-McMoRan (FCX)

Adkerson commented on the rise of copper demand in emerging markets and ways in which the company continues to grow amid supply challenges.

Final Trades: Macke: Freeport-McMoRan (FCX), Adami: Apple (AAPL). Finerman Golar LNG (GLNG), Najarian: Research In Motion (RIMM)

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