Stocks bounced back from an early selloff Monday. The Nasdaq Composite rose 0.7%, the Dow was up 0.4% and the S&P 500 got a 0.5% lift. Energy stocks rose on news that Venezuela's Hugo Chavez threatened to end oil shipments to the U.S., while AIG's (AIG) - Get American International Group, Inc. Report huge one-day loss weighed on the tape.
On CNBC's "Fast Money" Monday, the crew discussed
rejection of a buyout bid by
On the two companies' back-and-forth, Jeff Macke said that Yahoo!'s negative reaction to the bid as an undervaluation of the company is a bluff, and that no company would take the first offer. Yahoo!'s next step will be to accept $33 or $34 a share. Finally, he says ultimately Yahoo! will have to sell itself because it has no defense against a takeover.
Pete Najarian added that he hopes the bluff works, but if it doesn't, Yahoo! could wind up looking like
. On the other hand, it may get an improved bid, as
did. He agreed that Yahoo! will sell for $34 a share.
The crew then moved on to discuss
Research In Motion's
outage, which affected all 12 million users of its BlackBerry in the Americas.
would do well in the wake of this blow to RIM. In addition, the company is rolling out new products that will help the stock's performance.
Dow Jones added
Bank of America
into its index today, bumping
Guy Adami remarked that Honeywell performed well despite losing its spot in the Dow. He said he loves the company at 13.5 times forward earnings and called it a "screaming buy."
Tim Seymour said the energy sector is continuing its strength. He said he believes that Venezuela's supply disruption has likely been priced in. He likes
for maintaining global exposure. Najarian agreed with Seymour on ConocoPhillips. Adami said $80 is a great place to get into Exxon.
At the end of the writers' strike, media stocks took a slight dip today. Macke said he still likes
Moving on, the traders took note of cheap toy stocks. Macke remarked that Transformers sold well, helping
beat on earnings. He also likes
The crew then went over companies that have bought stadium-naming rights. Najarian said it seems like a great idea, but hesitated to fully endorse the strategy.
have paid the most to put their names on stadiums. Macke said he would short all the stocks. "We left out Enron," he quipped.
reports earnings tomorrow. Adami said that the company is an international story and, up 5% today, is fairly valued. He likes
instead as a play on increasing demand for fuel efficiency.
Seymour added that GM is still No. 1 in the world. He said investors should not be hung up on domestic performance. He likes the story of auto sales in emerging markets. Macke was reminded of
, saying its numbers weren't so bad but the stock got hammered, and reminded viewers that the sector is disliked.
Also on deck was the
Wireless Conference in Barcelona, Spain. Najarian called it a monster conference, saying Nokia is making big inroads into the U.S. market. He said the company is going to be a huge name going forward. Seymour is bullish on the carriers overseas, naming
as plays on that market.
Potash According to Doyle
To find out the situation in the agriculture sector, "Fast Money" welcomed Bill Doyle, CEO of
, to the show. He said Potash's story hasn't changed and that he expects another strong year. Adami agreed, pointing out the company's projected earnings of $6.25 on the year.
Doyle also discussed the company's share buyback. Macke stressed that unlike other companies, Potash has completed each of its announced buybacks. Each of the traders remained bullish on the stock.
traded at twice its daily volume Monday.
The South Africa Trade
Seymour discussed whether to buy into South Africa on weakness caused by its recent energy crisis. He mentioned the
iShares MSCI South Africa
. He believes that global energy stocks, including
, may be a play on South Africa's infrastructure build-out.
Quint Tatro stopped by to discuss fundamentals of the S&P 500. After hitting big lows a few weeks ago, the S&P is testing the January lows, which he sees as healthy. He pointed out that the S&P has not yet broken those lows.
Tatro went on to recommend the savings and loans, saying
People's United Financial
Hudson City Bancorp
are poised to break out.
Macke said he likes Yahoo!. Adami named
. Seymour recommended Tesoro, and Najarian would buy
on a pullback.
Pops and Drops
The following Pops and Drops segment highlighted some stocks that made extreme moves during the week.
jumped 3%. Macke said the stock continues to trade well off a technical bottom.
was up 4%. Najarian said the company might come up tomorrow on earnings.
Potash was up 5%. Seymour said it was a fantastic story.
surged 14%. Adami said the strength may mean GM might report a good quarter tomorrow.
was up 5%. Darden Restaurants was up 8%. Macke called the move a dead lobster bounce.
Fomento Econmico Mexicano
rose 4%. Seymour said the beer industry was consolidating.
was up 3%. Adami said he expects it to go higher.
slipped 1%. Adami said it's a nice stock.
plummeted 18%. Macke said to stay away.
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