Adami also said Chesapeake (CHK Quote - Cramer on CHK - Stock Picks) and Nucor (NUE Quote - Cramer on NUE - Stock Picks) are issuing stock in secondary offerings. He said normally this is bad news, but he recommends buying Nucor's secondary.
Najarian said he believes natural gas has room to the upside. He urged investors not to fight breakouts in names like
ConocoPhillips (COP Quote - Cramer on COP - Stock Picks). He said coal names are looking bullish as well.
Jon Najarian joined the show to talk about put activity in the financials. He said there is heavy put volume in the
Financial Select Sector SPDR (XLF Quote - Cramer on XLF - Stock Picks). He said he doesn't think investors are merely protecting long positions from the downside. He said he thinks the financials will trade sideways from here. He also said emerging markets appear to be rolling over.
The traders discussed ways to play oil without going directly to the sector. Joe Terranova said
Goldman Sachs (GS Quote - Cramer on GS - Stock Picks) has the best collection of oil traders around. Najarian agreed. Adami said Trinity Industries and
Hexcel (HXL Quote - Cramer on HXL - Stock Picks) are good plays on wind. He also recommended
Halliburton (HAL Quote - Cramer on HAL - Stock Picks).
Hot Couch Potatoes
Macke said that oil prices will keep people at home, so he recommended some couch-potato trades, including
Activision (ATVI Quote - Cramer on ATVI - Stock Picks) and
Yum! Brands (YUM Quote - Cramer on YUM - Stock Picks).
Najarian said he disagrees with Macke, saying that those trades play into expensive commodities.
Stealth Solar
The traders then discussed the possibilities for
DuPont (DD Quote - Cramer on DD - Stock Picks). Najarian said it's an under-the-radar energy play. He said that the company has adapted recently and has promising exposure to photovoltaic technology.
He said that recent positive earnings from
First Solar (FSLR Quote - Cramer on FSLR - Stock Picks),
Energy Conversion Devices (ENER Quote - Cramer on ENER - Stock Picks) and
Canadian Solar (CSIQ Quote - Cramer on CSIQ - Stock Picks) mean that DuPont's PV segment will probably get bigger as time goes on.
Adami said DuPont adapts better than any other company and is still cheap on a valuation basis. Macke said it's a better play than the solar-specific stocks.
Selective Inflation
The traders then spoke with River Twice Research President Zach Karabell about trading inflation. Karabell said that inflation isn't occurring across the board. He said that items that are purchased often are experiencing price increases, whereas low-frequency items are actually experiencing falling prices.
He urged investors to look into irreplaceable inputs, such as iron ore, which leads to stocks such as
Vale (RIO Quote - Cramer on RIO - Stock Picks) and
Cleveland-Cliffs (CLF Quote - Cramer on CLF - Stock Picks).
Brands can also be irreplaceable inputs, he said. Stocks with powerful brands like Apple,
LVMH (LVMH Quote - Cramer on LVMH - Stock Picks) and
Tiffany (TIF Quote - Cramer on TIF - Stock Picks) should do well in this environment, he said.
Trader Radar
Symantec (SYMC Quote - Cramer on SYMC - Stock Picks) traded on extraordinary volume today.
Again speaking of plays on summertime activities, the traders discussed some stocks that might benefit from consumers' propensity to barbecue during that time of year. Najarian recommended
Clorox (CLX Quote - Cramer on CLX - Stock Picks), which owns Kingsford Charcoal. Terranova said
Crocs (CROX Quote - Cramer on CROX - Stock Picks) might be a good play as the company attempts to get women to wear its shoes.
Adami said
Suburban Propane (SPH Quote - Cramer on SPH - Stock Picks) is interesting on a valuation basis. Macke said investors should look at Wal-Mart.
Fast Messages
One viewer asked the traders what was going on in gold. Adami recommended buying Freeport-McMoRan and said he thought the recent rise in gold was a short-covering rally.
Macke counseled another viewer against buying stock in PC companies, saying the sector has had a good run, and it was time to sell when Wall Street analysts went positive on the sector.
Najarian told a third viewer he believes it's OK to buy shipping stocks but recommended following the companies' pricing for their services to better play the sector.
Another viewer had all his money in energy stocks. Terranova recommended taking some profits.
Final Trade
Macke said to buy SPDRs with a tight stop. Adami recommended
Public Service Enterprise Group (PEG Quote - Cramer on PEG - Stock Picks). Najarian chose
Excel Maritime (EXM Quote - Cramer on EXM - Stock Picks).
Mike Taylor
RSS
