Fast Money Recap, 4/4/08: Microsoft's Machiavellian Scheme

Recap of CNBC's Fast Money, Friday April 4. Click on a stock ticker for more analysis.

Microsoft (MSFT) and Yahoo (YHOO)

Microsoft threatened to lower its bid for Yahoo, a move that led to speculation whether the deal with go through at all. Macke said this tactic is straight from Larry Ellison’s playbook and MSFT is threatening to lower its price after apparently offering Yahoo alternatives. He said he is nervous about Yahoo right now, but he owns stock in both companies. Pete Najarian says those who are selling calls in Yahoo are making money, because it will take a while before the deal is completed. Karen Finerman said she may buy Yahoo calls on Monday, and thinks the deal will go through because of Microsoft’s need for internet exposure.

Financials: Merrill Lynch (MER), Fannie Mae (FNM), Citigroup (C), Lehman Brothers (LEH), NYSE Euronext (NYX), Freddie Mac (FRE), UBS (UBS)

The rally in financials concluded the best week for the market in a couple of months and Finerman noted that financials were up regardless of the fundamentals of individual companies. Najarian would not invest in financials now, although Finerman would buy calls in Fannie Mae and Freddie Mac. Macke said it is not worth shorting financials, especially after stocks were not adversely affected by news of Lehman’s “dicey” paper and after UBS did "passable imitation of a company that's blowing up."

Market Review: Alcoa (AA), Burlington Northern Santa Fe (BNI), U.S. Steel (X) and Apache (APA)

Although the jobs number did not affect the market heavily, the group are concerned that earnings will be bad, but Adami expects good things from AA. Adami say the market is going higher and Najarian commented on low volatility and the poor dollar. Adami says he likes BNI, X and APA, which are at a 52-week high.

Dennis Gartman, Gartman Report

Dennis Gartman commented on the price action in commodities and says he wants to own thing that “hurt if you drop them on your foot” like coal, railroads and steel. Since stocks are not dropping on bad news and keep going up, he believes the S & P 500 is safe and likes copper, steel and high-tech. Although the dollar has yet to regain its health, oil and gold are strong and stocks are benefiting from a steady flow of cash into the financial system.

Tech: Apple (AAPL), Research in Motion (RIMM), Sandisk (SNDK), Intel (INTC)

Najarian commented Apple’s rally is an indication of a larger move, but Macke prefers RIMM. Both Najarian and Adami like semiconductors like SNDK. Adami said it is impressive semis kept inventory under control in the face of dwindling consumer confidence. Macke doesn’t see how INTC’s move is indicative of a healthy economy, but likes the sector.

Mosaic (MOS), Monsanto (MON), Potash (POT), Massey (MEE), Alpha Natural Resources (ANR), Walter Industries (WLT)

On Mosiac’s move higher, the group discussed strength in agriculture and Najarian recommended MON, POT, MEE, ANR and WLT

Trades of the Week : Tesoro (TSO), Valero (VLO), Research in Motion (RIMM), Hercules Offshore (HERO), Home Depot (HD)

Finerman said TSO and VLO both rose 6% after her recommendation and Macke saw a 8% rise with his pick, RIMM. Najarian’s pick HERO jumped 15% and Adami’s HD gained 10%.

Retail: Wal-Mart (WMT), J.C. Penney (JCP)

While WMT did unexpectedly well in March, Finerman is selling WMT into strength. Macke commented WMT’s quarter is going to be bad, used JCP as a gauge and would consider buying WMT back on dips. Adami and Finerman prefer HD to Lowe’s, but Najarian likes Lowe’s.

Tim Seymour on Mexico: Homex (HXM), Cemex (CX), Empresas (ICA), Amerian Movil (AMX), iShares MSCI Mexico Indes (EWW)

Tim Seymour predicts a 1% increase in investing in Mexican equities since the market there is up and the U.S. recession is priced in. He sees a buying opportunity in CX, and likes HXM, ICA and AMX. Najarian is concerned about EWW, since 50% of the ETF is in three stocks.

Trader Radar: Vodafone (VOD) shares were among the most active on the NYSE.

Fast Fire: General Motors (GM), Omnivision (OVT), CIT (CIT)

Macke would sell GM after a 10% rise. Najarian said he would hold OVT after a poor performance. Even though CIT rose 18% after she said not to buy it, she defends her statement because she doesn’t like the company’s new business model.

Final Trade: Macke: Microsoft (MSFT), Najarian: Energy Conversion Devices (ENER)

Seeking Alpha is not affiliated with CNBC, or Fast Money

Comments

[User 148479]

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[Ken Singh]

ALL HOLDERS OF "RIMM" STOCK U R WARNED

INDIA officially ordered Mobile Operators in India last night to shut Blackberry to blackberry Communication services and Management has failed to file 8k and warn Investors on major negative event , which can bust Blackberry Service Business Model World Wide.

Government asks operators to restrict 'certain' BlackBerry services

Wednesday, 16 April , 2008, 18:56

New Delhi: The Home Ministry has asked telecom operators not to offer “certain” BlackBerry services until a proper monitoring system is put in place, said Minister of State for Home Affairs Sriprakash Jaiswal.


“The government has issued instructions to all mobile service providers, inter alia asking them not to connect or provide/run certain BlackBerry services unless the required monitoring systems are in place,” Jaiswal said, even as he highlighted that it has not imposed restrictions on the use of BlackBerry. The Minister was answering a query in the Lok Sabha.

For more news, analysis click here>> | For more Science and Medicine news click here >>

By “certain" services the government meant that the four service providers currently offering BlackBerry services in India - Airtel, Vodafone, BPL and Reliance Communications - should temporarily stop the services between one BlackBerry to another. This is because calls and e-mails exchanged within BlackBerry handsets cannot be intercepted as the servers are based in Canada.

India has asked Research in Motion (RIM), the licensor of BlackBerry, which has over 12 million users globally, to route all its calls and e-mails through servers based in India to allow security agencies to read them as it fears its usage by terrorist outfits.

RIM officials are believed to have sought time till the end of the month to explain their position and address the issues voiced by the government.

India has also warned of “strict action” if RIM fails to come out with a viable solution to such a serious issue, telecom ministry sources said.

BlackBerry services were introduced in India in October 2004. The services came under the government's scanner last year when an application by Tata Teleservices to launch a similar service was rejected over security concerns.
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