Bored with Yahoo's Board - Fast Money Recap (5/6/08)

Recap of CNBC's Fast Money, Tuesday May 6. Click on a stock ticker for more analysis.

Market Overview: Burlington Northern Santa Fe (BNI), Google (GOOG)

Friday’s selloff saw the Dow stumble 1.22%, the S &P fall 0.8% and the Nasdaq trading down 0.3%. Guy Adami says the market hasn’t bottomed yet, but continues to like railroad stocks like BNI as well as natural gas. Najarian noted Google’s spectacular $40 drop and said the tech horsemen need a rest. Jeff Macke wouldn’t buy stocks unless they fall on a panic. The group looked at the Volatility Index and Najarian said when there is a big move in the VIX, it will be time to buy.

Financials: US Bancorp (USB), Goldman Sachs (GS)

Cisco (CSCO), Disney (DIS), Juniper (JNPR)

Both CSCO and DIS reported solid earnings, but Macke was concerned about Cisco’s light revenue guidance and said CEO John Chambers was sandbagging. Pete Najarian says Cisco is still a buy, along with other good tech stocks, and thinks JNPR is a good name to play off CSCO’s earnings report. Adami thinks Cisco has had too much of a run and would take profits. Karen Finerman would rather own Disney, and says its business is easier to understand. Macke commented DIS numbers “crushed.” He added the company is seeing improved business at theme parks. Adami likes DIS on a valuation basis.

Fannie Mae (FNM)

Although Fannie May’s earnings report was “horrific,”the stock still went up, observed Finerman, who praised the company for cutting its dividend and raising needed capital. Macke said there is no reason to short financials now.

Baker Hughes (BHI), Schlumberger (SLB), Haliburton (HAL), Oil Service Holders (OIH), Andarko Petroleum (APC), El Paso Energy (EP), U.S. Oil Fund (USO)

Oil continued its rise and reached $122. Adami would buy BHI, SLB and HAL, while Najarian continued to recommend OIH, but said he would steer clear of refiners. He noted bullish action in natural gas company APC and EP, which has seen some intense insider buying. Macke’s oil pick was USO. Commodities analyst Joe Terranova joined the group and said investors should either be bullish on oil or stand aside. Macke thinks rising gas prices will be manageable because they are gradual. Terranova is also bullish on natural gas.

Yahoo (YHOO)

Yahoo rose on Tuesday, but Finerman thinks the company’s board will be in trouble with shareholders, and expects an interesting annual meeting for Yahoo on May 15.

MDC (MCD), Centex (CTX), Hovanian (HOV), SPDR S&P Homebuilders (XHB), USG Corp (USG), Home Depot (HD)

Karen Finerman says housing may be back and would recommend MDC, CTX, XHB and USG, but would steer clear of HOV. Adami likes HD’s balance sheet. Macke does not think housing has bottomed yet and thinks it will hit bottom once people stop wondering where the bottom is.

Wal-Mart (WMT), J.C. Penney (JCP), Children’s Place (PLCE), American Eagle (AEO), Sears Holdings (SHLD), Mastercard (MA)

The group discussed the effect the stimulus checks will have on retail, and Macke would wait for a pullback in retail stocks before buying. Najarian says incentive strategies employed by WMT and SHLD look encouraging and Finerman likes retails names JCP PLCE and AEO. Adami picks MA as a retail trade.

Trader Radar: Scotts Miracle Grow (SMG) traded on fantastic volume Tuesday

WWE (WWE), Comcast (CMCSA), Wrigley (WWY), Ford (F), Anheuser-Busch (BUD)

Macke said that while family businesses are usually not so shareholder-friendly, WWE, CMCSA and WWY have been exceptions to the rule. Not all family members are good at running the business, and he used the example of Bill Ford’s lackluster management of Ford, but noted new management has helped the company. Adami likes BUD and WWE.

Final Trade: Macke: Financial Select Sector SPDR (XLF), Adami: Merck (MRK), Finerman: Kaiser Aluminum (KALU), Najarian: Apple (AAPL)

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Comments

[tom1234]

Pete-- oct07 aapl was $202.00 and heading to $300.00 ---now with all the positive increases in debt free aapl how far passed $300.00 do you see aapl reaching