Fast Money Recap, 4/9/08: Airlines MayTake Off

Recap of CNBC's Fast Money, Wednesday April 9. Click on a stock ticker for more analysis.

Energy and Commodities: EOG Resources (EOG), Chesapeake Energy (CHK), Apache (APA), Oil Services HOLDRS (OIH), Freeport-McMoRan (FCX)

Crude oil broke ite record and Pete Najarian said natural gas is next. He likes EOG, CHK, APA and OIH. Macke would take profits on half of all oil positions. Najarian said oil is the new currency with the dollar’s decline and would watch demand with refining capacity declining. Oil inventories are not as high they usually are in the spring. Tim Seymour likes coppers, particularly with a supply shortage, and notied FCX hit $109.

Financials: Citigroup (C), Merrill Lynch (MER), Financial Select Sector SPDR (XLF), Fannie Mae (FNM), Freddie Mac (FRE), Capital One (COF)

Macke reports the private equity handling of $12 billion worth of leveraged loans from Citigroup is good news for financials, and comments it is a case of smart money meeting desperate sellers. Najarians is continuing to hold puts in financials and notes MER is discussing recession and XLF, FRE and FNM are not doing well. Adami would short Citi, which he thinks is declining to $21.50 or $22. Macke would short financials short-term and be long long-term. Najarian sees more pain in store for COF since many consumers struggle with car payments.

Yahoo (YHOO), Microsoft (MSFT), Google (GOOG)

Yahoo continues to resist MSFT’s advances and is wooing Google in an advertising deal. Microsoft is complaining that a Google/Yahoo deal would violate anti-trust legislation. Macke noted the government recently approved Google’s merger with Doubleclick, so he doesn’t see why this deal will be blocked. Adami would buy MSFT because it is undervalued.

AMR (AMR), Boeing (BA), Rockwell Collins (COL), Precision Castparts (PCP), Kaiser Aluminum (KALU), Titanium Metals (TIE), Honeywell (HON), Embraer (ERJ), ishares Dow Jones Transportation (IYT)

The airline industry was slammed with AMR’s holding up a third of its flights and oil’s record rise. Adami and Macke say airlines are a terrible industry, but Adami thinks AMR will see some gains. Najarian doesn’t like the sector either, but thinks consolidation will strengthen the companies left standing. The one airline company that saw a bounce today was BA, which announced the delay for Dreamliner will be more brief than expected. Adami sees further upgrades for the airlines and would play this news by going long COL, PCP, HON, ERJ and KALU. Seymour would buy TIE. The group said the Dow Jones Transportation ETF is rolling over, and Adami sees a decline in the transportation sector, however, he would consider buying individual stocks on dips.

Circuit City (CC), Williams-Sonoma (WSM), Bed, Bath & Beyond (BBBY)

CC continues to decline, and Macke says it is a “ridiculously slow-motion train wreck” He comments BBBY is a failed “towel store.” Najarian discussed the poor performance of WSM.

China: Baidu (BIDU), China Mobile (CHL), PetroChina (PTR)

As calls increase for protesting the Olympics in China, Seymour thinks the Olympics story is over for investors. An upside in Chinese stocks from equity investors is finished and even though the stocks are down, China is not cheap. However, he would stay in BIDU, CHL and PTR. Najarian prefers U.S. infrastructure stocks to investing in China.

Dennis Gartman, Gartman Letter StreetTracks Gold (GLD)

Gartman attributed skyrocketing oil prices to the expectation of rising inventories, and news of lower inventories came as a surprise. He thinks oil is not finished and gold will also rise as the dollar falls. He likes GLD. He also sees corn and beans going up but thinks wheat will not increase.

Andrew Burkly, analyst at Brown Brothers Harriman

Burkly says if volatility breaks to the downside, the market will bottom and the S & P will break out. Seymour pointed out that volatility is actually moving to the upside, and the market has farther to fall.

Advice for Pfizer (PFE) with Cephalon (CEPH), Myriad Genetics (MYGN), Biogen (BIIB), Bristol-Myers Squibb (BMY)

PFE pipeline is slow, and Adami and Najarian suggested PFE buy CEPH, MYGN, BIIB or BMY. Adami would scrap the abysmal “Viva Viagra” ad campaign.

Coal: Market Vectors Coal (KOL), Burlington Northern Santa Fe (BNI), Union Pacific (UNP), CSX (CSX), Patriot Coal (PCX), and Alpha Natural Resources (ANR)

With China fast becoming a net importer of coal and as the U.S continues to depend heavily on the commodity for producing steel and generating electricity, Najarian recommended KOL, BNI, PCX and ANR. Adami would take a look at railroads BNI, UNP and CSX since coal is transported by rail.

Final Trade: Macke: Boeing (BA), Adami: AMR, Najarian: Pilgrim’s Pride (PPC)

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Comments

[stacked up:]

Anyone who not only watches this slimiest group of touts/thieves/liars, but actually follows their recommendations, deserves to lose money.
CNBC reached down into a toilet and came up with this group.
As if Cramer wasn't bad enough, this den of thieves makes Cramer look sainted.

2008 Apr 10 09:07 AM