Icahn-Do Attitude - Fast Money Recap (5/13/08)

by: Miriam Metzinger

Recap of CNBC's Fast Money, Tuesday May 13.


Yahoo rose on news Carl Icahn may revamp the company's board, and Karen Finerman is confident Icahn can turn the company around. She adds getting Gordon Crawford at Capital Research on the Board is crucial. Jeff Macke would not buy Yahoo on this news and says the management was bringing down the company before the MSFT bid. Although he believes in an MSFT/YHOO deal down the road, Najarian would sell half a YHOO position into strength. Adami would get into Google and says it is cheaper on a valuation basis than Yahoo.

Hewlett Packard (NYSE:HPQ), Electronic Data Services (NASDAQ:EDS), IBM (NYSE:IBM), Dell (NASDAQ:DELL)

HPQ dropped after earnings and the group wonders if its bid for EDS was a mistake. Najarian says he is using the dip as a buying opportunity and thinks HPQ will compete successfully against IBM. Macke thinks HPQ is better off trying to beat competitors like Dell than making acquisitions. Finerman notes the company lost $12.5 billion in market cap, making the deal practically free.

Wal-Mart (NYSE:WMT)

Macke likes WMT's report and says he is buying on the recent dip, which he thinks is the result of a conservative forecast. Najarian likens the action of the stock to that of Cisco (NASDAQ:CSCO), and agrees the pullback was due to a cautious forecast.

Federal Reserve Najarian and Adami disagree with Ben Bernanke's statement that the financial markets are "far from normal." Najarian thinks they are becoming more stable and volatility is in a downward trend with lower lows and lower highs. Adami points to improvement in the junk-bond market.

Halliburton (NYSE:HAL), Chesapeake Energy (NYSE:CHK)

From a technical point of view, oil is headed higher, says Macke and he would be long on oil when it pulls back to $110 a barrel. Adami is bullish on n HAL and Najarian likes natural gas play CHK.

After Hours: Applied Materials (NASDAQ:AMAT), Electronic Arts (ERTS), Activision (NASDAQ:ATVI)

In after hours trading, activity in AMAT was mixed because of its cautious comments. Najarian bought some shares and believes in the company's solar exposure. Adami notes the company's solar business is valued at a mere $3 and thinks it should be much higher. Although shares of ERTS were down after good earnings, Macke doesn't think the company has direction and faulted it for failing to take over Take Two. He prefers Activision.

CEO Bill McComb, Liz Claiborne (LIZ)

McComb believes in the company's reforms especially in making its strong brands stronger and improving lagging names. He said LIZ should make a comeback soon.

Dennis Gartman, Gartman Letter with stocks John Deere (NYSE:DE), CNH Global (NYSE:CNH)

While DE has already had a good run, Gartman predicts earnings will be strong. Adami noted that although CNH isn't as solid a company as DE, it did get hammered after its earnings. Concerning oil, Gartman said the U.S. should not put oil into strategic reserve and that inventories are not a problem. Gartman says he is bullish natural gas, particularly Canadian natural gas trusts, and copper.

Seeking Alpha is not affiliated with CNBC, or Fast Money