Fast Money Recap - Talking Turkey (5/14/08)

Recap of CNBC's Fast Money, Wednesday May 14.

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

On Icahn’s decision to pursue Yahoo, Karen Finerman doesn’t think the risk/reward is worth it and believes a lot of the Icahn factor is already priced in. She is uncertain whether MSFT is still interested in the deal. She thinks Icahn’s radical proposals to reform Yahoo’s board might interfere with rather than facilitate a deal. Macke thinks Icahn will succeed and MSFT will return to the table. While Najarian agrees MSFT may still pursue Yahoo, he sold half of his Yahoo position. Adami would play this news by buying GOOG, and observes Icahn has been having difficulty extracting value from Motorola. Macke prefers to buy MSFT.

Citigroup (C), Visa (V), Mastercard (MA), American Express (AXP), Freddie Mac (FRE)

In spite of fairly good news from FRE, the potential rally in financials didn’t quite succeed. Finerman says she remains bullish on Citi, and Najarian recommends V, MA, and AXP. Macke would buy financials on the decline, but adds he does not have faith in FRE.

General Electric (GE)

Adami does not think GE should sell its appliance business at this point, and believes the price is too low. Macke predicts GE will sell the appliance segment in Asia.

Macy’s (M), Kohl’s (KSS), Nordstrom (JWN), Children’s Place (PLCE), J.C. Penney (JCP)

Macke observed Macy’s rose on its fairly good earnings and in-line numbers. He added retail names have been performing better because they have lowered expectations. He predicts if JWN and KSS’s results are “better than apocalyptic” the stocks will rise. Finerman sold PLCE and JCP after a good run.

Deere (DE), Potash (POT), Monsanto (MON), Agrium (AGU), Terra Industried (TRA)

Deere gave disappointing news about rising raw costs, and its stock dropped 10%. Adami would buy DE under $80.75. Najarian says the ag story is still strong and would take a look at POT, MON, AGU and TRA.

Raytheon (RTN), General Dynamics (GD), Honeywell (HON), Lockheed Martin (LMT)

on Najarian joined the program to discuss bullish options activity in RTN, GD and HON. Adami thinks HON is cheap on a valuation basis and is also bullish on LMT. Najarian says RTN’s price to earnings ratio is 10 and traders are purchasing upside calls above 52-week highs.

Trader Radar: Whole Foods (WFMI) traded on unusual volume on Wednesday.

That’s Entertainment: Apple (AAPL), Disney (DIS), Sony (SNE), EMC (EMC), Pepsi (PEP)

The future of entertainment will be led by Apple and Macke thinks Disney will be the chief provider of content. He is bearish on SNE. Adami likes EMC for its storage and Finerman says as entertainment options increase, so will the consumption of junk food. She would buy PEP on this trend.

Turkcell (TKC), Turkish Investment Fund (TKE), iShares MSCI Turkey Invest Market Index (TUR)

Tim Seymour gave Turkey a report card as an emerging market trade. It earned a C-minus for political stability, a C-plus for macroeconomy, a B for investability and an A for valuation. He likes TKF, TKC and TUR, and prefers TUR to TKE.

Final Trade: Macke: UPS (UPS), Adami: Deere, Najarian: E*Trade (ETFC)

Seeking Alpha is not affiliated with CNBC or Fast Money

Comments

[Prince of W...:]

My first read, looks like a lot of the shorts posting they have to make a buck also.

2008 May 15 10:22 AM

[Educated In...:]

Interesting that in the text regarding financial stocks "Najarian recommends V, MA, and AXP" and yet at the very end his final trade is ETFC which is up 4 percent today because they reported another lineup of "Turn Around" successes. See reuters article posted yesterday at today.reuters.com/news...

2008 May 15 10:35 AM

[Dogcrap:]

"Najarian says the ag story is still strong and would take a look at POT, MON, AGU and TRA"

Would take a look? Good for that lying POS. He bought two years ago. Only thing he is looking for is the dump price.

2008 May 15 01:07 PM

[seeksome:]

Go ETFC the higher it goes the closer I get to retirement it should return to pre-mortage stock prices.When it does I will be retired.To save a ton of money visit:seeksomething.com

2008 May 15 07:46 PM