Fast Money Recap: 4/3/08: Housing Hyprocrisy

Recap of CNBC's Fast Money, Thursday April 3. Click on a stock ticker for more analysis.

Thursday’s Market:

The group says Thursday’s market was poised for the unemployment number on Friday, and Jeff Macke is surprised the market was so bullish in the face of what is expected to be a terrible number. Guy Adami commented that Bear Stearns bailout did not just affect the bank itself but the entire leveraged financial sector. Adami is bullish.

Tech: Apple (AAPL), Research in Motion (RIMM), Nokia (NOK)

Both AAPL and RIMM were strong on Thursday. Najarian pointed out to those who criticized his NOK call that the stock is fine. Macke says Apple is invincible, since the stock continues to perform well in spite of the short supply of its iPhones.

Agriculture: Potash (POT), Deere (DE), Mosaic (MOS), Monsanto (MON)

Najarian noted bullishness in the agriculture sector and would buy MOS on a pullback.

Bear Stearns CEO Alan Schwartz

In his testimony before Congress, Alan Schwartz said he believed rumors were responsible for the run in the company. Adami noted BSC has a "huge bull's-eye on their back" for a while. Macke attributed the run to the fact people wanted to profit from puts and spread rumors. Najarian doesn’t think the moves were bullish, but said puts were being purchased to protect long positions.

Financial: Merrill-Lynch (MER), Goldman Sachs (GS), Lehman Brothers (LEH)

MER jumped on a statement from John Thain that the company doesn’t need to raise capital. Adami warned those who buy MER that there may be some short-term volatility. Finerman holds GS and said the MER and GS should trade similarly. Macke said MER did better than expected, since most financials sell off on news about liquidity. He said LEH could take a page from MER’s book.

CEO Ara Hovnanian,Hovnanian (HOV), Toll Brothers (TOL), KB Home (KBH), Fannie Mae (FNM) and Freddie Mac (FRE)

Hovanian discussed Congress-approved tax credits for those who want to buy forceclosed homes. Finerman noted CEOs of HOV, TOL and KBH have been taking profits in their own stocks and thinks tax credits to such companies are a moral hazard. Hovanian defended his sale of stock, saying it was part of his compensation, and times are tough for housing. Finerman said it was hypocritical for housing CEOs to say positive things on conference calls and then beg Congress for money. She says they should raise funds by issuing stock. Macke said that the housing sector is exaggerating its own importance for the sake of gain, and said the stimulus should go for struggling homeowners and not for the companies. Finerman prefers FNM and FRE as plays on housing rather than actual housing stocks. Najarian said insider trading activity is a good indication of what is going on with a company, and that insider selling took place before Target’s decline, but the retailer didn’t have the nerve to go asking for a bailout.

Zack Karabell, executive vice president and chief economist for Fred Alger Management and the Spectra Funds

Karabell commented that while the jobs number is not expected to be good, RIMM and Apple’s performance suggest strength in certain areas of the economy. Since banks aren’t doing away with credit, consumers can still spend on gadgets. Adami countered that Best Buy (BBY), which is a major seller of Apple and RIMM products, showed declining margins in spite of its good number. He interprets this to mean the consumer spending is in decline. Adami discussed steel, which is showing its strongest performance in nearly a century.

Alcoa (AA)

Adami said it doesn’t matter how AA reports on Monday, because it has a strong buyback and is likely to be taken over. Najarian noted heavy call buying and said since coal is an important part of steel production, coal is a sector to watch.

Trader Radar: Constellation Brands (STZ) was one of the most active stocks on the Big Board on Thursday.

Subprime Savant: John Paulson: Countrywide (CFC), MBIA (MBI), Radian (RDN)

The next subprime savant was John Paulson, a hedge fund manager who made $4 billion by betting against housing through under-the-radar stocks, such as CFC, MBI and RDN. Paulson also pulled off original strategies such as shorting credit default swaps. Macke was not convinced, and said he has only seen 25% gains in Paulson’s open positions.

Fast Messages: Visa (V)

One viewer praised Finerman for her criticism of the housing lobby. Another asked Adami what to do with Visa. Adami predicted V will fall to the mid-$50s with very little upside.

Final Trades: Macke: Apple (APPL), Adami: Corning (GLW), Finerman: Microsoft (MSFT), Najarian: Walter Industries (WLT)

Seeking Alpha is not affiliated with CNBC, or Fast Money

Comments

[User 172891:]

To Finerman , it is easy to say issue more stock to some company like HOV , but there are many of us that are not public companies or not evan close to being large the HOV and the others. What do we do sell monopoly money? I started working for a painter in the 70's and worked my way to building houses in the early 90's , and the boom did not really help me too much , and now the crash has nearly wiped me and my family out, while my money not the feds money is used to bail out the wealthy , and foreign countries and forgetting about the people of this country. One of the things that got this country started was a tax revolt and we really need one now!

2008 Apr 04 09:27 AM

[notsosmart:]

this is now a partial socialist country put in by a conservative republican administration. tax revolt wont happen yet as long as the dumb-dumber americans have enough for a sport ticket & a beer.catch my drift.this country is on a downhill slide(sadly).

2008 Apr 04 09:42 AM

[rae 2008:]

Why hasn't the lower interest rate been passed on the home owners that need help, I mean the families that have been in a house for years and have faithful been paying their loans . If we wanted to the middle working class, instead of the banks.....

2008 Apr 04 10:13 AM

[eyes open:]

The believers in our democratic system are tired of our need to continually "fix" the markets. Either to encourage this subprime mess (thanks Allen) or to backstop (much less bailout) the culprits with govt money in the wake of failed debt repayments. If the markets are forward thinking and we've hit a bottom, why are we now pricing in an additional 50 point cut by the FED? Is inflation a non player? I for one cannot wait for the election to be over!

2008 Apr 04 12:18 PM

[H2O:]

Clinton

Calls Jesus Love thy Neighbor - What an absurd notion

No wonder why she was a GoldWater Girl – And Wanted to Kill – The Civil Rights Bill…………

How much delusion does one need – To show-up and give a speech – Like she was for King and Civil Rights All Along ?????

2008 Apr 04 12:51 PM

[H2O:]

Amin Al Husseini as officer of Ottoman Empire - 1915

1931

Amin Al Husseini is founder and President of the World Islamic Congress. After WWII, it will actively shape the agenda of the Muslim world.

1920 - Jerusalem, Palestine. Amin Al Husseini inciting the riots that pitted Palestinian Arab against Palestinian Jew.

Muslim Soldiers reading German Propaganda.
The name of the book is Islam Und Judentum
(Islam and Judaism in German)

""""" Al - Husseini Group is honored to introduce its varied investment achievements and activities that lasted for more than 17 years in several fields. These activities are characterized by the rapid development during these years. All that was a result of the combined efforts of specialized and qualified staff. """""

Berlin-1942

Amin Al Husseini spends WWII by Hitler's side.

Amin Al Husseini inspecting Nazi Muslim troops - 1943

NEED WE SAY MORE ABOUT THE BEGINING OF A HILLARY SUPPORT ???????

OHHHH how they wish - There delusions would really cover - up there past - But one must say - They really are IDIOTS - For who among you will hide the truth from GOD - on the day of your judgement ????


www.tellthechildrenthe.../

2008 Apr 05 08:59 PM