Wal-Mart (WMT) was the featured company on the show's "Street Fight" segment. Seymour defended the stock, saying it has a cheap valuation compared to its peers and the new CEO has a strong global background. He suggested the stock could break out over $79 and investors could use $72 as their stop-loss.
Disagreeing was Brian Sozzi, CEO and chief equity strategist of Belus Capital Advisors as well as a Real Money contributor at TheStreet. He said WMT is experiencing stiff competition from Amazon (AMZN) and Best Buy (BBY). He added the company has massive inventory builds and will likely continue to under-deliver on earnings.
Lions Gate Entertainment (LGF) was the first stock on the show's "Pops & Drops" segment. Adami called it a buy at current levels.
Yahoo! (YHOO) fell slightly and Kelly said he would take some profits at current levels.InvenSense (INVN) surged 11% and Lebenthal suggested investors could stay long. Trina Solar (TSL) popped 6% and Seymour said the company has strong demand out of Asia. He recommends staying long. Dennis Gartman, editor of The Gartman Letter, was a guest on the show. He said the Nikkei should continue higher in 2014 as the Japanese economy accelerates and the yen continues to weaken. He added that he likes metals, shipping and railroad stocks in the region as well as being long gold in yen terms. Seymour said Marathon Oil (MRO) looks good based on its valuation and dividend yield. Kelly agreed, saying he likes the refinery space. Adami said he wouldn't short eBay (EBAY) at current levels. Instead, he suggested investors buy it near $50. Lebenthal said there isn't any current positive catalysts for Merck & Co. (MRK) but the dividend will allow investors to wait for one, with a yield of 3.5%. Kelly said Advanced Micro Devices (AMD) can continue higher in 2014 based on momentum and a 20% short float. Hunter Keay, senior airline analyst at Wolfe Research, was a guest on the show. Even after the big runs in 2013, he suggested that stocks such as United Continental Holdings (UAL) and Delta Air Lines (DAL) were still undervalued, trading at six times 2015 EPS estimates. Margins will need to expand, free-cash flow will need to increase and balance sheets will need to de-leverage in order for the industry's earnings multiple to expand, he added He does not like JetBlue Airways (JBLU), partly because of its levered balance sheet. For their final trades, Kelly is buying Schlumberger (SLB) and Seymour is a buyer of Compania Cervecerias Unidas SA (CCU). Adami said to buy Huntsman (HUN) and Lebenthal likes Exelon (EXC). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on Twitter and become a fan on Facebook.
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