NEW YORK (TheStreet) -- Crawford Del Prete, executive vice president and chief research officer at IDC, was a guest on CNBC's "Fast Money" TV show. He said there is currently a "war of words" between China and U.S. technology stocks.
The most vulnerable stocks belong to hardware companies including Cisco Systems (CSCO) and EMC Corp. (EMC), while software and services companies are the least vulnerable. However, he said this "war" is likely to be a non-event.
Tim Seymour, managing partner of Triogem Asset Management, questioned whether China is even that crucial to Cisco's business. He added International Business Machine (IBM) has some issues in China, while Apple (AAPL) seems to be doing quite well in the country.
Guy Adami, managing director of stockmonster.com, said the pullback in IBM was going to happen regardless of Wednesday's headlines about China, although those likely didn't help the price action. He reasoned that shares are on the way to $175.
Steve Grasso, director of institutional sales at Stuart Frankel, said he sold Qualcomm (QCOM) but it was due to the broader market's recent rally, not the issues in China.Copper hit three-week lows. Adami said the bearish price action does not bode well for other metals. Seymour said the March low of $2.90 per pound is likely to hold for copper. He admitted there seems to be a lot of supply although demand is also strong. Ike Boruchow, senior research analyst at Sterne Agee, said Coach (COH) has $800 million on its balance sheet, which is good, but pointed out that most of it is located offshore. That's why the company had to recently borrow $200 million. He suggested it's burning through too much of its domestic cash flow to justify buying back more stock or raise the dividend.
He argued that Coach keeps losing market share and continues to report lower comp-store sales growth. His top pick is Kate Spade (KATE), which he said can double revenue and operating margins, since the company is still so small. Karen Finerman, president of Metropolitan Capital Advisors, is long the June $40 put options on Coach. She said the new CEO is likely to lower the bar and investor expectations at the upcoming analyst meeting. "Everything sort of seems to be going wrong," she added.
Grasso said, "I think you're still safe" in owning Pandora (P) at current levels. Seymour is long Nike (NKE), but not because of the upcoming World Cup in soccer. He noted that basketball shoe sales are up 18% year over year and the company's operating margins are strong. It's one of the "most attractive" large-cap stocks, he said. Dr. Yaron Werber, who leaders Citi's biotechnology research team, was a guest on the show. He downgraded Clovis Oncology (CLVS) to hold from buy and slashed its price target from $109 to $53.
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