'Fast Money' Recap: Softie as a Value Play

Dylan Ratigan hosted CNBC's "Fast Money" show Thursday night. He started the show with a discussion of Microsoft(MSFT Quote). He explained that the tech giant beat earnings by a penny but issued weaker guidance, driving the stock down in after-hours trading.

Jeff Macke joked that "America's lust for the Microsoft Zune will not abate." He pointed out that Microsoft has $40 billion in cash. Guy Adami said it's a "valuation play" at 11 times earnings. Tim Seymour said Microsoft is very cheap and their business is diversified.

Pete Najarian explained that Microsoft has been cheap the entire year. He says "Microsoft is a mature company that needs to show growth." Najarian said he loves Yahoo!(YHOO Quote) at this level and he hopes Microsoft goes after it.

Ratigan mentioned that the market saw a push back up in crude oil today in anticipation of an OPEC meeting set for Austria on Friday. Adami said oil has to bounce at some point, especially ahead of the meeting. He says "the Exxon Mobil(XOM Quote) move shows that value guys are getting into the sector at these levels."

Najarian said that if you want to play oil, look at the airlines names like Continental(CAL Quote). He explained that Continental is leveraged to oil with almost no hedges.

Adami said railroads will benefit the most from the drop in energy prices. He pointed out that Burlington Northern Santa Fe(BNI Quote) and Norfolk Southern(NSC Quote) reported huge numbers this week. Najarian says, "If you decide to go into the rails, make sure you have some protection." He also pointed out that Warren Buffett has been selling the 75 puts on BNI, which is another way of saying he would be willing to own the stock at a lower price.