This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

'Fast Money' Recap: Will Big Merger Ignite Tech?

NEW YORK ( TheStreet) -- The after-markets were abuzz Monday with the announcement by Texas Instruments (TXN - Get Report) of a $6.5 billion merger with National Semiconductor (NSM - Get Report).

For the day, the Dow Jones Industrial Average added 23.31, or 0.46%, to 12,400.03. The S&P 500 gained 0.46, or 0.03%, to 1,332.87. The Nasdaq fell 0.41, or 0.01%, to 2,789.19.

Guy Adami said on CNBC's "Fast Money" show that the deal may be coming at the right time with National Semi coming off a disappointing quarter.

He said it was time to look at other possible moves in the space, including Linear Tech (LLTC - Get Report) and Maxim Integrated (MXIM - Get Report).

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour said the merger was a case perhaps of the industry leader buying the better player and using its sales force to push out the better product.

Karen Finerman said she doubts whether anyone else would come in at this point. She said she wasn't going to touch National Semi, adding there is tremendous downside risk and little in the way of upside.

Joe Terranova called it a "home run" for National Semi, with Texas Instruments overpaying for a stock that was down 10% last year.

Brian Kelly said the merger doesn't change his opinion of the chip sector, which he is still shorting. He didn't like the fact that Texas Instrument will be increasing its exposure on the industrial side while moving away from the exposure to fast-growing smartphone space.

Craig Berger, an analyst for FBR Capital Markets, said National Semi received a "full, fair price." He said he liked the synergies of the merger because it allows Texas Instruments to use its more sophisticated factories to manufacture National Semi's chips.

Berger said there are a lot of inexpensive chip stocks in the space. Terranova said he didn't believe the merger would ignite the tech sector. He said chip sales are in the later innings of the cycle, adding he was moving away from Nvidia (NVDA) and Marvell (MRVL).

CNBC tech correspondent Jon Fortt said the merger will increase Texas Instrument's market share to 17%. He said it also makes sense because the company can take advantage of its advanced processing technology to manufacture National Semi's chips.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BWA $60.48 0.00%
CMI $138.64 0.00%
GM $37.50 0.00%
LLTC $46.80 0.00%
MXIM $34.81 0.00%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs