'Fast Money' Pops and Drops: Lehman's Effect
09/11/08 - 07:06 PM EDT
TSC Staff
Before Dylan Ratigan started the "Pops and Drops" segment of CNBC's "Fast Money," he mentioned that the Washington Post is reporting that the Federal Reserve and the Treasury are engineering a sale of Lehman Brothers(LEH Quote - Cramer on LEH - Stock Picks) to a group of private firms that will be announced before the Asian markets open on Sunday.
Macke says it's a bad idea to buy the stock on this news. Adami said the news is interesting, but he wants to know the price. "If I was a shareholder, I would be shaking," he said. Adami also mentioned that theses type of events tend to lead to market bottoms in the stock market. Macke told viewers to sell any pop in the stock on the news. Terrnoava said to use this as an opportunity to buy the financial survivors such as JPMorgan Chase(JPM Quote - Cramer on JPM - Stock Picks), Goldman Sachs Group(GS Quote - Cramer on GS - Stock Picks) and Wells Fargo(WFC Quote - Cramer on WFC - Stock Picks). Pops Wells Fargo jumped 6%. Macke explained that the bank tightened up its lending standards. Sovereign Bancorp(SOV Quote - Cramer on SOV - Stock Picks) popped 6% after Moody's reaffirmed its rating on the bank. Petroleo Brasileiro SA( PBR Quote - Cramer on PBR - Stock Picks) traded up 6%. Terranova recommended that traders sell the 35 puts on PBR. Sunoco(SUN Quote - Cramer on SUN - Stock Picks) soared 12%. Terranova said you want to own the refiners right now. Joy Global(JOYG Quote - Cramer on JOYG - Stock Picks) surged 11% after the mining equipment company said it will buy back $1 billion more of its shares. Adami thinks the stock has more room to the upside. Allergan(AGN Quote - Cramer on AGN - Stock Picks) moved up 10% after the company said testing showed its Botox treatment works on chronic migraines. Najarian said that's a pop.
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