Summer in the Citi - Fast Money Recap (5/2/08)

Recap of CNBC's Fast Money, Friday May 2. Click on a stock ticker for more analysis.

Employment Number and Wal-Mart (WMT)

Jeff Macke said investors were skeptical about the jobs number, and added the market has been flat, and good for picking stocks. Tim Seymour didn’t think the number reflected the fact that jobs are being lost, but the positive feeling was due to lowered expectations. He would take profits, since the performance this week was strong. Guy Adami noted the S&P 500 reached a resistance level of 1410, and said bears should sell and bulls should buy. The market has rallied for three consecutive weeks, and Karen Finerman said she would take profits in Wal-Mart (WMT)

Microsoft (MSFT), Yahoo (YHOO), Apple (AAPL), Western Digital (WDC), Cisco (CSCO)

On talks of a hostile takeover of YHOO by Microsoft, Macke thinks MSFT should move ahead, and doesn’t think Yahoo will get $37 a share. Adami thinks MSFT is a winner either way, and Finerman would be a buyer of MSFT if it dropped $1, and predicts Yahoo will not rise above $31. In other tech news, Apple should reach $200, according to Macke and Adami thinks WDC is a good tech play, although its guidance was “squishy.” He would buy WDC at $27 and sell at $31. Macke would be long CSCO ahead of its report on Tuesday, but Adami thinks it will decline first before rising. Seymour likes CSCO as a long-term buy.

ConcoPhillips (COP), Exxon Mobil (XOM)

On oil’s climb to $116, Seymour thinks problems in Iraq will send oil higher and thinks commodities, especially fertilizer and copper will be fine. He would be long COP and short XOM.

Citigroup (C), USBancorp (USB)

Dick Bove, analyst at Ladenburg Thalmann, is bullish on Citi and thinks it will double in the next two or three years. He points to more deposits and loans and a great core business. Adami doubted C could actually double, but thinks Citi will reach $30 if Meredith Whitney at Oppenheimer changes her rating. Finerman agrees that C is a buy. Adami noted USBancorp reached its 52-week high.

Taiwan Semiconductor (TSM), Infosys (INFY)

On news the Brazilian market was upgraded to investment grade, Seymour says April has been a good month to invest in emerging market stocks. He prefers tech to small-cap and likes TSM and INFY.

Take-Two (TTWO), Electronic Arts (ERTS)

Even though Grand Theft Auto has been successful, Macke prefers ERTS than the company it is trying to buy, TTWO. He says MSFT would be his favorite video game stock if it leaves Yahoo alone.

Berkshire Hathaway (BRK.A), PMI Group (PMI), 3M (MMM), Televisa (TV)

With the well-publicized BRK.A meeting scheduled over the weekend, the group discussed some good picks for Warren Buffett. Finerman likes PMI for its cash flow, Adami picked MMM and Macke thinks Buffett should help hasten MSFT’s purchase of Yahoo. Seymour likes TV’s brand and thinks it would be a great Buffett stock.

Viacom (VIA), Disney (DIS), Hasbro (HAS), Central European Media Enterprises (CETV)

Anthony DiClemente, media analyst at Lehman Brothers says the recession is hurting local ad companies. He would buy cable companies like VIA under $40 and DIS. Macke likes HAS for their Iron Man and Indiana Jones toys. Seymour picked CETV.

Final Trade: Macke: Microsoft, Finerman: PMI, Seymour: Unibanco Uniao de Bancos Brasileros (UBB)

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Comments

[tom1234]

jeff 200 is just a number that apple must pass

[gabe borenstein]

Perhaps it is time to focus on the broad market instead of perceived "singular"op... FED's aggressive easing to date ,will provide a broad market and economic momentum -but we need to allow for the lag.The fiscal stimulus is significant upward momentum enhancer as well .Using a multiplier of seven,the 140 billion dollars "rebate" ,becomes a significant trillion dollars stimulus.Between the two "jolts"and with some more accomodation from the FED ,we are heading for a major rebound. The record leveraged commodity speculation should not be confused with inflation.In real cyclical inflationary environment,the housing prices would be increasing at least with the rate of inflation.
Let's just focus on the broad stock market rebound and not waste time with individual picks .

[jjason]

It amazes me how the folks on CNN and other TV channels and the bloggers on SeekingAlpha can give advice with so little data to back it up.

BS is free. Those folks who believe the BS will get fleeced. Investing smartly takes a lot of hard work. You will not learn how to invest successfully by watching television.