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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

'Fast Money' Recap: An Important Week for Earnings

NEW YORK (TheStreet) -- The S&P 500 slid 0.23% ahead of an important week of earnings. 

On CNBC's "Fast Money" TV show, the trading panel looked at Chipotle Mexican Grill's (CMG) revenue and earnings beat. 

"Unbelievable quarter," said Guy Adami, managing director of stockmonster.com. However, despite the strong results, he is not a buyer of Chipotle at current levels. Instead, he prefers Jack In The Box (JACK)

Karen Finerman, president of Metropolitan Capital Advisors, said Chipotle appears to be taking market share from its competitors. She is surprised that the stock only has a short interest of roughly 5%. 

Tim Seymour, managing partner of Triogem Asset Management, said the company has one of the most loyal customer bases. However, Chipotle does not seem capable to continuing growing this rapidly, he argued, and he is not a buyer based on valuation. He likes Starbucks (SBUX).  

Steve Grasso, director of institutional sales at Stuart Frankel, said shares of Chipotle seemed poised to move higher. The higher menu prices are still being undervalued by investors, he suggested.

Johnson & Johnson (JNJ) announced a new $5 billion share repurchase plan. Seymour said this is good news as the company has a ton of cash, a strong balance sheet and a healthy international business. 

Michael Pachter, managing director at Wedbush Securities, has an underperform rating on shares of Netflix (NFLX) with a $215 price target. He said Netflix continues to grow its subscriber base and offer better content. However, the company has generated negative cash flow for the past nine quarters. 

Pachter argued that eventually the negative cash flow would start to weigh on Netflix's income, which will weigh down its earnings per share. When that happens, the share price is likely to decline precipitously, he concluded. 

Seymour said Netflix is imposing a secular change in how people watch video. However, its valuation is unattractive and for that reason he is not a buyer. Finerman agreed she is not a buyer based on valuation.  Grasso argued that shares of Netflix seem poised to move higher.

Brian Goldner, president and CEO of Hasbro (HAS), was a guest on the show. The company beat on bottom-line estimates, despite missing top-line expectations. He said timing is an important factor in the business headed into the second half of 2014. He added Hasbro is putting more focus on customization, which can be done with board games and 3-D printing of select toys. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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