'Fast Money' Recap: Calling Yahoo!'s Bluff

Stocks bounced back from an early selloff Monday. The Nasdaq Composite rose 0.7%, the Dow was up 0.4% and the S&P 500 got a 0.5% lift. Energy stocks rose on news that Venezuela's Hugo Chavez threatened to end oil shipments to the U.S., while AIG's (AIG Quote) huge one-day loss weighed on the tape.

On CNBC's "Fast Money" Monday, the crew discussed Yahoo!'s (YHOO Quote) rejection of a buyout bid by Microsoft (MSFT Quote).

On the two companies' back-and-forth, Jeff Macke said that Yahoo!'s negative reaction to the bid as an undervaluation of the company is a bluff, and that no company would take the first offer. Yahoo!'s next step will be to accept $33 or $34 a share. Finally, he says ultimately Yahoo! will have to sell itself because it has no defense against a takeover.

Pete Najarian added that he hopes the bluff works, but if it doesn't, Yahoo! could wind up looking like Tesoro (TSO Quote). On the other hand, it may get an improved bid, as BEA Systems (BEAS Quote) did. He agreed that Yahoo! will sell for $34 a share.

RIM Rocked

The crew then moved on to discuss Research In Motion's (RIMM Quote) outage, which affected all 12 million users of its BlackBerry in the Americas.

Najarian said Nokia (NOK Quote) would do well in the wake of this blow to RIM. In addition, the company is rolling out new products that will help the stock's performance.

Dow Doings

Dow Jones added Bank of America (BAC Quote) and Chevron (CVX Quote) into its index today, bumping Altria (MO Quote) and Honeywell (HON Quote).

Guy Adami remarked that Honeywell performed well despite losing its spot in the Dow. He said he loves the company at 13.5 times forward earnings and called it a "screaming buy."

Tim Seymour said the energy sector is continuing its strength. He said he believes that Venezuela's supply disruption has likely been priced in. He likes ConocoPhillips (COP Quote) and Exxon (XOM Quote) for maintaining global exposure. Najarian agreed with Seymour on ConocoPhillips. Adami said $80 is a great place to get into Exxon.

At the end of the writers' strike, media stocks took a slight dip today. Macke said he still likes Disney (DIS Quote) here.

Moving on, the traders took note of cheap toy stocks. Macke remarked that Transformers sold well, helping Hasbro (HAS Quote) beat on earnings. He also likes Mattel (MAT Quote).

The crew then went over companies that have bought stadium-naming rights. Najarian said it seems like a great idea, but hesitated to fully endorse the strategy. Reliant Energy (RRI Quote), FedEx (FDX Quote), American Airlines (AMR Quote), Phillips (PHG Quote) and Apollo Group (APOL Quote) have paid the most to put their names on stadiums. Macke said he would short all the stocks. "We left out Enron," he quipped.

Tomorrow's Playbook

General Motors (GM Quote) reports earnings tomorrow. Adami said that the company is an international story and, up 5% today, is fairly valued. He likes Borg Warner (BWA Quote) instead as a play on increasing demand for fuel efficiency.

Seymour added that GM is still No. 1 in the world. He said investors should not be hung up on domestic performance. He likes the story of auto sales in emerging markets. Macke was reminded of Ford (F Quote), saying its numbers weren't so bad but the stock got hammered, and reminded viewers that the sector is disliked.

Also on deck was the Wireless Conference in Barcelona, Spain. Najarian called it a monster conference, saying Nokia is making big inroads into the U.S. market. He said the company is going to be a huge name going forward. Seymour is bullish on the carriers overseas, naming America Movil (AMX Quote), China Unicom (CHU Quote), Vimpel-Communications (VIP Quote) and Mobile Telesystems (MBT Quote) as plays on that market.

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