'Fast Money' Recap: New Bond Insurer

Worst Stocks Of 2007

The worst performing stocks for the S&P 500 in 2007 were E*TRADE(ETFC Quote) down 83%, Countrywide(CFC Quote) down 79%, Circuit City(CC Quote) down 77%, Washington Mutual(WM Quote) down 70% and MBIA(MBI Quote) down 70%. Adami says take a look at E*TRADE for a possible takeover play, but if it doesn't happen it's a dead stock this year. Macke thinks Circuit City is going to zero and will be booted from the S&P 500 in 2008.

Analyst Contrarian Trade for 2008

A study recently showed that if you buy the stocks that analysts say will be the worst performing Dow components for 2008 you can make money. The stocks that analysts are bearish on for 2008 are General Motors(GM Quote), Pfizer(PFE Quote), Caterpillar(CAT Quote), Dupont(DD Quote) and Citigroup(C Quote). Adami loves Pfizer and he thinks the stock will trade to $35. Macke likes Caterpillar and he thinks it's bizarre that the analysts hate it.

(Here's another way to be a contrarian on Stockpickr.com Janus Contrarian.)

Tech Comeback Kids

Microsoft(MSFT Quote), Intel(INTC Quote) and Oracle(ORCL Quote) all put in a strong performances in 2007. Are these stocks worth betting on for 2008? Macke thinks these companies are the technology survivors and are all buys. He warned investors not to bet against this group. Adami continues to favor Microsoft and he thinks that $32 will be strong support for the stock.

Japan's benchmark index fell 11% in 2007 for its first loss in 5 years. Adami mentioned that Japan's ETF iShares MSCI Japan Index Fund(EWJ Quote) trades in a range from $13 to $15. He feels the EWJ is dead money for 2008. Najarian prefers China to Japan and he likes playing it with China Mobile(CHL Quote), Apple(AAPL Quote), Research In Motion(RIMM Quote), Cisco Systems(CSCO Quote) and Juniper Networks(JNPR Quote).