When Energy Goes Lower - Fast Money Recap (9/10/08)

Recap of CNBC's Fast Money, Wednesday September 10.

Again With Financials - Lehman Brothers (LEH), Goldman Sachs (GS), Washington Mutual (WM)

Dylan Ratigan began the show with a discussion about Lehman Brothers. Karen Finerman said the most surprising thing about the conference call from Lehman today was there was no clarity for the market. She said the company gave out no details on its real estate portfolio. "Lehman has no plan, and it can't raise funds," added Jeff Macke. Guy Adami explained that Lehman is trading on fundamentals and that's why it goes lower. Pete Najarian told viewers to take a look at Goldman Sachs, because everyone on the Street is cutting estimates. He feels the stock could be in trouble here ahead of earnings next Tuesday. Ratigan asked for the traders’ thoughts on Washington Mutual. Finerman explained that WaMu's debt is trading for 50 cents on the dollar, and that tells you there's real fear in the market about this company.

Discussing Energy – Baker Hughes (BHI), Schlumberger (SLB)

Ratigan moved the conversation to the energy sector. Adami pointed out that Baker Hughes is now trading at 9 times forward earnings and is trading near a 52-week low. He also likes Schlumberger which is trading at tough valuations. "I think you will wish you owned these stocks come December," he said.

Transportation - FedEx (FDX), Burlington Northern (BNI), Norfolk Southern (NSC)

Adami mentioned that FedEx raised its first-quarter guidance but said he wouldn't buy the stock here. Najarian told viewers to look at the rails if they want to play transportation. He said UBS upgraded Burlington Northern and Norfolk Southern today.

Biotech - ImClone Systems (IMCL), Celgene (CELG), Genentech (DNA)

Ratigan switched the discussion to the biotechnology sector. Najarian said it's very odd that ImClone Systems wouldn't disclose who offered it $70 a share to take over the company. Adami said Celgene is cheap at these levels. Finerman said that she is long Genentech. Najarian said he noticed heavy call options trading on Genentech today.

Technology Sector - Research In Motion (RIMM), Texas Instruments (TXN), Google (GOOG)

Ratigan moved the talk toward the technology sector. Macke said Research In Motion looks fine. Adami expressed concerns over the rally in Texas Instruments. He said the run higher in Texas Instruments was disappointing when you consider the quality of the news.
The "Chart of the Day" was Google. Najarian explained that the chart for Google is broken and said don’t get in front of this southbound train.

Options Action - Kroger (KR)

Najarian highlighted heavy options action in Kroger. He said 22,000 calls traded on the stock today with 11,000 trading on the September 30 calls. He believes the stock is heading higher.

Bill Fleckenstein of Fleckenstein Capital - Capital One (COF)

Bill Fleckenstein of Fleckenstein Capital discussed financial stocks. He thinks Lehman Brothers is still in trouble, but Washington Mutual might be an even bigger problem. "If I was going to short anything financial right now it would be credit card companies like Capital One," he added. He said the big problem right now is that we have a recession that's going to get worse, and things won't get better until people realize this. Fleckenstein said he sees more downside for some technology stocks like Research In Motion. "The new flip-phone is no big thing," he added.

Financial Winners - Jefferies (JEF), Knight Capital (NITE), Raymond James (RJF), Ameritrade (AMTD), Morgan Stanley (MS), U.S. Bancorp (USB)

The traders discussed some winners in the beaten-up financial sector. Adami says Jefferies, Knight Capital and Raymond James will be the winners. Macke said to stick with Ameritrade. Najarian recommended Ameritrade, Morgan Stanley and U.S. Bancorp. Finerman said she still likes Goldman Sachs.

When Energy Goes Lower - Las Vegas Sands (LVS), Target (TGT), Kohl's (KSS), Wal-Mart (WMT), Costco (COST), Macy's (M), Gap (GPS), Urban Outfitters (URBN)

The crew looked at some ways to trade falling oil and gasoline prices. Macke says Las Vegas Sands could be a buy on the dip with prices at the pump going lower.
Najarian explained that Target and Kohl's have been trading with the movements in crude oil. He likes Wal-Mart, Costco, Macy's if oil can crack through $100. Finerman mentioned she is short Kohl's here because the stock has made a huge run. Adami said look to buy Gap around $17. He also likes Urban Outfitters for its high short interest.

Gold Lows

The traders discussed the gold trade with Jeffrey Christian of the CPM Group. Christian said in the physical market he sees net buyers, but traders are selling in the paper markets for futures and options. He thinks investors will continue to look to diversify their portfolios into the euro and gold. He believes the gold chart isn't broken and is bouncing off the upward trendline around 770-780 per ounce.

Trader Radar - Whirlpool (WHR)

Shares of Whirlpool were among the most actively traded stocks on the NYSE today.

Technical Trades - Piedmont Natural Gas (PNY), Newmont Mining (NEM)

The traders discussed two stocks that are making significant technical moves. First was natural gas distributor Piedmont Natural Gas, which is breaking out to a new high. Najarian said he would be hesitant to jump in now on the breakout. Next was Newmont Mining, which hit a three-year low. Adami told viewers to watch Newmont here because the stock reversed after hitting the new low.

Final Trade – Your First Move for Thursday September 11.

Jeff Macke recommended shorting Gold.
Guy Adami likes Celgene (CELG).
Karen Finerman suggests a long position in Norway-based SeaDrill Limited.
Peter Najarian says buy Kroger (KR).

Seeking Alpha is not affiliated with CNBC, or Fast Money

Comments

[EUARTE:]

As for Lehman Bros. one can see how the Federal Government is so slow in acting. They seem to love crisis. They should march in immediately and put it in receivership. Do the financial work and disolve the company.
That would be good management of the economy and would show that the government is on top of things.
This will not happen because they need as much time as possible to work out a plan to save the investors. Or better know as socialism for capitalist.

2008 Sep 11 01:09 PM

[whidbey:]

Following the fast money crowd is like talking to drunks, the story changes mid conversation, and for no apparent reason. Why would be care what they think?

2008 Sep 15 09:29 PM