'Fast Money' Pops and Drops: Big Lots Loses
Peter Garcia
08/26/08 - 06:42 PM EDT
Pops
At the beginning of the "Pops and Drops" segment, Melissa Lee mentioned that
Borders (BGP Quote) rose 7% after hours when it announced a narrow loss and only a 7% drop in sales -- exceeding analysts' expectations.
Coach (COH Quote) rose by 6% to $28.18. Guy Adami attributed the rise in the stock to the $1 billion buyback announcement but warned investors not to buy on that news, since the buyback program is not slated to be completed until 2010. However, he did mention how the valuation of the stock looks attractive.
Chico's (CHS Quote) was up 2% to $5.09. Najarian said the stock was up about 10% but "barely held onto the gains." He said that the earnings were not great and that consumers are simply not shopping in the store as much as they used to.
Drops
Delta (DAL Quote) fell by 5% to $7.94. Jon Najarian mentioned that the company recently tapped into its $1 billion credit line, and he attributes the decline to the rise in oil prices.
Big Lots (BIG Quote) was down by 7% to $30.72. Quint Tatro said the stock reported good earnings but said to "stay away" from the stock.
CME Group (CME Quote) was down about 5% to $322.44. Joe Terranova mentioned how the move probably had to do with Lehman Brothers giving the company an equal weight rating. Terranova says to "give it until the end of the year before considering the stock."
Smithfield Foods (SFD Quote) fell by 7% to $21.91. Tatro says people will still need food and believes the stock can become a value play. Therefore he said "look at it you value players" if the stock drops to its "teens."
Sanderson Farms (SAFM Quote) dropped 11% to $35.21. Terranova said that people should give the CEO of the firm some credit for being honest in its conference call. "Only divine intervention would have saved the quarter," Terranova said, quoting the CEO.
Solarfun Power Holdings (SOLF Quote) fell by 5% to $18.94. Adami said to watch the company, since it will "crush the numbers tomorrow, causing the stock to gain back today's loses." The company is reporting its second-quarter results tomorrow.
