Takeover Talk - Fast Money Recap (8/22/08) 7 comments
-
Font Size:
-
Print
- TweetThis
Recap of CNBC's Fast Money, Friday August 22.
What is Going on? – Lehman (LEH)
The topic of the day in today's market activity was the Lehman Brothers takeover talk. Jon Najarian said that “you have to think there is a lot more upside.” Lehman is getting “the wind at its back.” Najarian continued, saying that he is “more enthused about this rally.” Zach Karabell expressed doubts, saying I’m “not sure I fully agree.” He said that it is impossible to know what is truly going on at Lehman and that it is possible we will see the financial industry go abroad in the coming years. Quint Tatro said that playing the financials is essentially gambling. He said that for traders it has been a fantastic week because of volatility. Joe Terranova weighed in, saying that this week brought a “ton of bad news in financials.” He said that the retailers and technology stocks are working and that he expects the commodity names to work as well. Terranova suggested that if the financials “join the party, we set up nicely for the fall.” Moving into oil, Terranova said that he has not seen a follow-through past the $122-per-barrel mark and that he has moved his exposure from long-term risk to short-term risk. He said he predicts that oil will go higher in the short term because there is a “supply concern.”
On the subject of oil, Tatro said that yesterday investors saw oil and retail going. He said that equities are breaking away from the energy-consumer. Zach Karabell agreed, saying that “every coupling has been breaking down,” and that it used to be energy and tech; he said that now things are separating.
Buffet on Financials – Wells Fargo (WFC), American Express (AXP)
Speaking on Warren Buffett, Najarian said that Buffett mentioned liking two financial stocks, namely Wells Fargo and American Express. He said that he doesn't have a long position in American Express, but he would.
Technology Time - Research In Motion (RIMM)
Terranova said I am “still long technology, and I believe in” Research In Motion. He claims that we will get back to the June 25 breakdown levels.
Commodities Corner with Dennis Gartman of The Gartman Letter
Dennis Gartman came to discuss commodity plays. He said he is “still long” and is remaining “bullish on the grain market.” Gartman said that, technically speaking, he is bullish on corn and wheat specifically, and he said investors will “see the dollar continue to get strong.” He noted the lack of a rebound in the euro and said he believes that many people are caught long in the euro. Discussing gold, Gartman said that it is highly dependent on India, specifically its political tensions and crop growth. Gartman summarized, saying “do the tough trade,” and be out of gold.
Options Action - Charles Schwab (SCHW), Akami Technologies (AKAM)
Najarian, discussing options activity, said that Charles Schwab has “strong, unusual buying,” and that someone is betting big that Scwhab is going higher. He also said that Akami Technologies has similar activity and is “looking pretty good.”
Financial Soap Opera Continues - Fannie Mae (FNM), Freddie Mac (FRE)
Shifting the conversation to Fannie Mae and Freddie Mac, Richard Baker, CEO of Managed Fund Association discussed the controversy. He said that there has been “a great reversal of fortune,” with Fannie Mae and Freddie Mac in Congress. Baker said that it is hard to find a supporter of these two firms in their current state and that it is imperative the companies find new ways to do business. Baker suggested the choice is to spin these enterprises away from government mandates in an effort to let them “get off their feet.” He predicts a long road for recovery and said that for investors, it is vital to see how much of their assets are fluff because they are “very constrained in what they can do.”
Najarian pointed out natural gas is “falling off a cliff,” down 5%. Terranova advised investors to “stay away from it,” because “hurricane fear is still in the market.”
Jeffrey Harte of Sandler O'Neill on Lehman (LEH)
Jeffrey Harte discussed Lehman Brothers. He said that there is a general “lack of confidence in the balance sheet” and that not many investors have confidence in the book value they are buying. Harte said that it is necessary for Lehman to address its balance sheet sooner rather than later. He also said that he doesn't believe Lehman will attract buyers but said not to rule out a hostile takeover. Speaking on the remainder of the financials, Harte said that he believes the “lack of general confidence in the market” will continue and that it will “be a while before we see these things [financials] move up.”
Seeking Alpha is not affiliated with CNBC, or Fast Money
Related Articles
|
Find People on SA
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largest
increase in followers
in the last 7 days-
1
David Fry
-
2
Bill Gross
-
3
Philip Davis
-
4
Tyler Durden
-
5
TraderMark
Fastest Climbers » -
1
-
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most activeSee all
Instabloggers.
Top Instabloggers » -
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
This article has 7 comments:
"Speaking on Warren Buffett, Najarian said that Buffett mentioned liking two financial stocks, namely Wells Fargo and American Express. He said that he doesn't have a long position in American Express, but he would."
What Pickens is doing is not all that bad because we do need alternatives, but it is being done to keep the market going and to keep money in the market and away from silver and gold.