Fast Money Recap: Bear Buyer

Charlie Gasparino joins the crew to discuss the Bear/Buffett Rumor
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The market was hit with a big rumor on Wednesday as the New York Times reported that Warren Buffett is part of a group of investors considering a 20% stake in Bear Stearns (BSC) . CNBC's Charlie Gasparino joined the "Fast Money" crew to discuss his take on the Bear Stearns' rumors.

Gasparino doesn't put much credence into the report. Instead, he believes that Bear Stearns is going to be taken private. Guy Adami suggests that it makes no sense at all for Buffett to acquire Bear. According to Adami, Buffet's expertise is in value plays and Bear isn't a value play. (To see a complete list of Buffett's holdings, check out

this Stockpickr portfolio.

)

Pete Najarian declares that all brokers are back in play. His recommendation is to buy

Lehman

(LEH)

due to the upside options activity in the name on Wednesday. Karen Finerman agrees on Lehman and sees it as a cheaper way to play the brokers.

Carl Icahn

When you think of billionaire investor Carl Icahn, many people think of American capitalism at its finest. His hedge fund Icahn Partners has gains of 40% over the past three years and he has amassed $12 billion in investment capital to play the markets. Icahn joined the team to discuss some of his stock holdings.

First up was

BEA Systems

(BEAS)

.

Icahn would like to see BEA Systems sold and he believe it's worth a great deal more to a synergistic buyer.

Oracle

(ORCL) - Get Report

,

Hewlett Packard

(HPQ) - Get Report

,

IBM

(IBM) - Get Report

and

SAP

(SAP) - Get Report

are potential buyers, according to Icahn.

Next up is

Motorola

(MOT)

. With Motorola, Icahn points out that you're buying the handheld business for $10 to $1l billion when they do $25 billion in revenue. He wants to see the cell phone maker cut costs and continue to show good sales in the U.S. He doesn't think the CEO has to go and is bullish on the risk reward for Motorola. (To see what else Icahn owns, check out

this Stockpickr portfolio

.)

GM on the Road Again

General Motors

(GM) - Get Report

ended its two-day strike after making a health care agreement with the United Auto Workers. This changes the tune for General Motors, according to Jeff Macke. He advises buying auto parts suppliers like

Lear

(LEA) - Get Report

,

Visteon

(VC) - Get Report

and

BorgWarner

(BWA) - Get Report

off the news.

Adami suggests looking at

Ford

(F) - Get Report

and also likes BorgWarner. Najarian prefers

Goodyear Tires

(GT) - Get Report

. (

RealMoney

Take: Jim Cramer said recently, "I would buy this General Motors off this deal if the stock stays around current prices because the possibility of a 4 handle on the earnings makes it worth the taking." To read more on what Cramer said,

click here.)

No Deal

Sallie Mae

(SLM) - Get Report

made news on Wednesday as a private-equity group pulled out of a deal to buy it for $25.3 billion. Macke says M&A is done for now and you can "stick a fork in it." Najarian disagrees and believes the deals are just being re-shifted down. Finerman isn't surprised the deal fell through. One potential deal that has her interest is

Genesco

(GCO) - Get Report

, but she also owns option puts on the name for protection.

Tech Rally

The technology stock leaders continued to shine on Wednesday with names like

Google

(GOOG) - Get Report

,

Amazon

(AMZN) - Get Report

,

Hewlett Packard

,

Cisco

(CSCO) - Get Report

and

Apple

(AAPL) - Get Report

hitting 52-week highs.

CNBC

Silicon Valley Bureau Chief Jim Goldman joined the crew to discuss technology stocks. Goldman noted that 1 million people played Halo 3 online in the first 20 hours. He declares that owners of the older X-Box that don't have online capabilities will be motivated to upgrade. Macke loves the story and say it's bullish for tech if video game players migrate up.

Goldman doesn't see the government ruling against Google on Thursday in its antitrust issues with the purchase of DoubleClick. Goldman suggests that even though RIMM, GOOG and AAPL have run up to high prices, they have plenty of room for even more gains. Najarian proposes that if the PC story is true in Asia, then Apple can make some strides, and that the price-to-earnings is too low. (

RealMoney

Take: Rev Shark said recently, "A small group of high-beta, big-cap technology stocks such as Apple, Research In Motion, Garmin, Google the like have been hot, and some groups such as China stocks and solar energy are attracting aggressive momentum traders." To read more on what Rev Shark said,

click here.)

Word on the Street

Bed Bath & Beyond

(BBBY) - Get Report

traded higher after hours when the firm beat estimates. Macke advises selling; in his opinion, the stock is broken. (

RealMoney

Take: Doug Kass said recently, "Bed Bath & Beyond (BBBY) reported results after the close. The shares are trading up by $3 based on what appears to be a beat. However, adjusted for a tax benefit, the company's results appear to be slightly below consensus. I am adding to this short now. " To read more on what Kass said,

click here.)

Monsanto

(MON)

traded higher after introducing its global strategy to investors at an industry conference. (

RealMoney

Take: Jim Cramer said recently, "Finally, Monsanto is getting valued as a biotech company. It, too, is selling at twice its growth rate." To read more on what Cramer said,

click here.)

Newmont Mining

(NEM) - Get Report

dropped 6% on Wednesday as gold continued to bump up against a 27-year high. Finerman advises that the best way to make a gold bet is with a gold ETF. That way you don't have the individual stock risk. Macke agrees with using ETFs instead of playing individual stocks.

Pops & Drops

Pops --

Deere

(DE) - Get Report

traded up 3%. Adami sees more room for the stock to run. (

RealMoney

Take: Jim Cramer said recently, "Finally, finally, Deere is viewed as a Schlumberger, an oil service company. But it now sells at twice its growth rate." To read more on what Cramer said,

click here.)

Pier One Imports

(PIR) - Get Report

popped 11% off a

Goldman Sachs

upgrade. Macke disagrees with the upgrade.

China BAK Battery

(CBAK)

exploded higher by 46% as the Chinese stocks continue to see buying momentum. Najarian says this stock will continue to pop.

Affiliated Managers Group

(AMG) - Get Report

traded up 4%. Adami predicts AMG is going higher.

Drops --

Under Armour

(UA) - Get Report

fell 6% after an analyst downgraded the name. Najarian has been recommending the stock and bought UA on Wednesday.

Timberland

(TBL)

dropped 8% as it closed most of its retail stores after sales disappointed. Macke advises waiting and not to buy the dip yet.

Final Trade

The team wrapped up the show with their best trades for the day.

  • Macke recommends selling Bear Stearns (BSC) .
  • Finerman is positive that BEA Systems (BEAS) is going higher.
  • Najarian's top pick is Isis Pharmaceuticals (ISIS) .
  • Adami prefers NYSE Euronext (NYX) . (RealMoney Take: Jim Cramer said recently, "The always problematic NYSE Euronext has still one more reason to go up, a possible stake by Dubai/Qatar." To read more on what Cramer said, click here.)

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