Recap of Fast Money, Monday April 22. Click on a stock ticker for more analysis.
McDonald's (MCD), Yum Foods (YUM)
McDonald's lack of same-store sales growth was compensated by its international expansion, and Jeff Macke expects a similar result from YUM, particularly because it is growing fast in China. McDonald's beat earnings by 11 cents, and although 5 cents can be subtracted because of dollar exchange, a 6 cent beat is still decent, Adami said and added the stock is cheap.
Karen Finerman says Yahoo's slight earnings beat will not give the company negotiation power in the face of MSFT's hostile takeover bid. She predicts the Yahoo's price will be in the $28 to $32 range. Macke says there is a possibility MSFT may drop the deal and Najarian would sell calls on Yahoo while there is a delay and thinks there will be along wait before the deal is done. Najarian noted VMW's 12% rise on earnings and predicts good things from EMC. Adami prefers MSFT and says EMC is "grounded" at $16.
Piper Jaffray Senior Research Analyst Gene Munster said Apple should easily beat estimates and discussed the 3G iPhone, set for release in June. He says the phone will be very popular and he sets a $250 target for Apple, a target Macke says is both "crazy and reasonable" given the fact that Apple is a teflon stock which he would buy ahead of earnings. Adami thinks Apple can be bought before or after earnings.
Finerman noted crude oil is rising in tandem with the dollar's decline, and given the commodity's steep climb, she would take profits. Najarian would look at natural gas plays APA, CHK, XTO and DVN, which are all breaking through their 52-week highs. Adami predicted a rally for the dollar in the second half of the year, but doesn't think this will hurt oil because of oil's supply and demand side.
CME Group (CME)
CME dropped on Tuesday, and Adami thinks a merger between SEC and CFDC will be bad for CME. While volume is up, profit per contract is in decline, but he might consider the stock as a trade. Macke says it matters less what the company says and more if investors are worried about the government.
The market seems poised to report negative earnings growth for the second consecutive quarter and Najarian blames financials. He would buy energy stocks, especially COP because its Burlington Resources purchase has won it exposure to natural gas, which is booming. Adami would be optimistic, and thinks financials will rally in six months. He would sell ag names which are topping in favor of financials. Finerman would beware of stocks like ISRG which approach earnings with high expectations, and she would not buy high-multiple stocks.
JetBlue (JBLU) CEO Dave Barger
While JetBlue has a loyal customer base and is careful about its balance sheet, rising fuel costs are creating challenges. He is looking at possibilities for organic growth, but would consider a buyout. The group thought Barger is a good CEO, but fuel prices make airlines a sell.
Trader Radar: Ford (F) traded on unusual volume on Tuesday.Final Trade: Macke: sell Yahoo (YHOO), Adami: Apple, Finerman: Microsoft, Najarian: EMC.
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