Windy City Trades - Fast Money Recap (5/16/08)

Recap of CNBC's Fast Money, Friday May 16.

Baker Hughes (BHI), Halliburton (HAL) On Friday, crude neared $130 after Goldman’s estimate that the commodity would reach $141. Jeff Macke would buy oil on pullbacks, but Adami saya for those who are nervous about oil, service stocks such as HAL and BHI fit the bill.

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

The war rages on for Yahoo and Karen Finerman thinks Icahn can win because shareholders are not behind Yahoo's board, which has disappointed them. Macke would be long Microsoft and thinks Yahoo will simply self-destruct. Najarian predicts Yahoo won’t fetch more than $29 a share and Guy Adami reiterated his recommendation to buy Google on the great Yahoo debate.

Apple (AAPL), Research in Motion (RIMM), Juniper (JNPR),Cisco (CSCO),Western Digital (WDC)

In the competition between the 3G iPhone, and the New Touch-Screen BlackBerry, Apple seems to be getting the upper hand, but Najarian would play the trends by looking at the carriers and infrastructure names such as Cisco and JNPR. Concerning WDC, Adami would take profits but would buy more if it pulls back.

Lockheed Martin (LMT), Raytheon (RTN), Boeing (BA)

LMT beat out BA for a r $1.46 billion Air Force satellite contract, and Adami thinks BA has been sufficiently beaten, and likes it on a valuation basis. However, the best aerospace plays are defense stocks such as LMT and RTN. Najarian thinks RTN is best of breed and at a price-to-earnings ratio of 10, is too cheap.

Ameriprise (AMP), Citigroup (C)

Investors should be concerned about regional banks after Warren Buffett got out of Ameriprise. Adami would buy C with a stop out below $22.50.

CME Group (CME) Chairman Terry Duffy

Fast Money was broadcast from the Windy City on Friday. Terry Duffy is looking forward to the opening of the new exchange on Monday and declares CME the trading capital of the world. Higher volume, electronic trading, acquisitions, an annual growth of 27% and new deals overseas inspired Najarian to say that CME has "nothing but upside," and Adami says he is a "huge buyer" of CME.

Deere (DE), Potash (POT), Monsanto (MON), Dryships (DRYS), Diana Shipping (DSX), DuPont (DD), McDonald's (MCD), and Burger King (BKC)

Najarian still believes in the agriculture story but noted Deere was weak in forestry and construction. He thinks the trade is over in POT and MON. Instead of agriculture, he would buy DRYS and DSX. Adami calls DD a solid synthetic ag play. Finerman is concerned with volatility in the sector and would sit out of ag. Moving to the food industry, Macke prefers BKC to Chicago's own MCD, which is a solid company, but whose story is "juiced." Najarian likes both companies but agrees BKC is cheaper and has more upside. Adami prefers MCD as an international play.

CNBC's Rick Santelli

Santelli is critical of the government's attempts to use regulation to solve global demand issues and to intervene in mercantile exchanges. He does not think speculators are to blame for rising commodities, and believes the markets will correct on their own. Santelli adds rising food prices are a moral issue and it is difficult to come up with a solution that doesn't interfere with the capital system.

Suze Orman and Jon Najarian with iShares S&P Global Materials (MXI)

Jon Najarian appeared on the show to discuss the benefits for trading options. He likes the transparency of options and the ability to create a large market. For first-time options traders, Jon Najarian suggests keeping an eye on the at-the-money call to see how a chosen stock performs. Suze Orman discussed ETFs for "normal investors" and says iShares S&P Global Materials is a good way to play rising commodities.

Playboy (PLA) CEO Christie Hefner

While there is a lot of uncertainty among media companies, Hefner says PLA is adapting to new media and says shares of her company are cheap.

Final Trade: Najarian: Pride International (PDA), Adami: Citigroup (C), Macke: Microsoft

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