Microsoft Toes the Deadline - Fast Money Recap (4/28/08)

by: Miriam Metzinger

Recap of CNBC's Fast Money, Monday April 28. Click on a stock ticker for more analysis.

This Week: Fed Meeting, Job Report Jeff Macke says all eyes are on the Fed meeting on Wednesday. He thinks the Fed will refrain from cutting interest rates, and the job report will “stink.” He pointed to a lack of activity in the market as a sign that investors are adopting a “wait and see” attitude. Tim Seymour said the GDP numbers will be a vital indicator and thinks the worst of the crisis is over. Guy Adami says Joy Global (JOYG) and Bucyrus (NASDAQ:BUCY) have not suffered from the economy.

Berkshire Hathaway (NYSE:BRK.A), Wrigley (WWY), Tootsie Roll (NYSE:TR) Macke liked the way Warren Buffett handled the WWY takeover and would buy BRK.A. Adami warned against buying TR, since the deal affects WWY specifically. Finerman thinks the deal will take a while to close.

Microsoft (NASDAQ:MSFT), Yahoo (NASDAQ:YHOO)

As the deadline for the MSFT/YHOO merger approaches, Finerman thinks MSFT may make an exchange directly with Yahoo shareholders. Macke thinks MSFT should just walk away from the deal.

Visa (NYSE:V)

Visa beat on earnings but gave lower than expected guidance. Macke noted the stock has risen 80% since its IPO and the company is thriving. He thinks international growth is the secret to Visa’s success.

General Motors (NYSE:GM), Ford (NYSE:F), Borg Warner (NYSE:BWA)

Kirk Kerkorian, who holds a sizeable stake in GM, says he will increase his stake in Ford, and Macke is bullish on Ford given the news. Seymour doesn’t think Kerkorian is hoping for a Ford comeback, but likes the company’s story. Adami would take a look at BWA.

Continental Airlines (NYSE:CAL)

On news that the CAL will not be merging after all, Seymour would not buy airlines.

Verizon (NYSE:VZ), Sprint (NYSE:S), American Movil (NYSE:AMX), Baidu (NASDAQ:BIDU), Sohu (NASDAQ:SOHU),

Macke sees gradual gains in telecom and likes Verizon on dips in spite of pricing pressure from Sprint. Seymour says AMX is a good emerging market cellular company and also likes SOHU and BIDU.

Tesoro (NYSE:TSO), Valero (NYSE:VLO), Masco (NYSE:MAS), Home Depot (NYSE:HD)

Jon Najarian would be long TSO on options trading indicating the stock will rise. He would also look at VLO which reports on Tuesday. He added MAS earnings will be a good indicator of how well HD is doing.

Frank Aquila, partner at Sullivan and Cromwell

Aquila said deals like the Mars acquisition of Wrigley will be more frequent given increasing strength in the financing markets. While companies are ready to give backing in low-risk situations, he doesn’t think M&A activity will be as intense as it was in 2007.

U.S. Steel (NYSE:X), Posco (NYSE:PKX), Arcelor Mittal (NYSE:MT), Nucor (NYSE:NUE)

On U.S. Steel’s upcoming earnings report, Seymour would buy PKX, which has been kept down for the wrong reasons. He also likes integrated steel names. Adami discussed MT’s pricing power and says it would be a good thing if X misses its numbers. NUE was recently at a 52-week high.

Disney (NYSE:DIS), Viacom (NYSE:VIA)

Former Disney CEO Michael Eisner thinks advertising will be a weak area for media companies, and says VIA and CBS should join forces again.

Trader Radar: IHOP (IHP): traded on unusual volume on Monday.

Dollar Rally?

The group discussed a possible upside in the dollar and Finerman once again said she is shorting CurrencyShares British Pound Sterling (NYSEARCA:FXB) because she thinks the pound is overvalued. Seymour doesn’t think the dollar will make a meteoric rise any time soon, although long-term he is long the dollar against the euro. Macke would short gold which is “done.”

The S&P 500, Google (NASDAQ:GOOG), Research in Motion (RIMM)

Dan Fitzpatrick of says the S&P is meeting resistance at present levels, GOOG will rise and RIMM is a buy “right here, right now.” He doesn’t think Fed action will have much impact, but believes it is already priced in. Seymour thinks the S&P will drop on the Fed news.

Final Trade: Macke: U.S. Oil Fund (NYSEARCA:USO), Adami: Short Dow30 ProShares (NYSEARCA:DOG), Finerman: Kaiser Aluminum (NASDAQ:KALU), Seymour: short Petrobras (NYSE:PBR)

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