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'Fast Money' Recap: Calling Yahoo!'s Bluff

The crew's Jeff Macke says Yahoo!'s next move will be to take $33 to $34 a share from Microsoft.

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


(MSFT) - Get Microsoft Corporation (MSFT) Report


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

BEA Systems


did. He agreed that Yahoo! will sell for $34 a share.

RIM Rocked

The crew then moved on to discuss

Research In Motion's


outage, which affected all 12 million users of its BlackBerry in the Americas.

Najarian said


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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 Doings

Dow Jones added

Bank of America

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(CVX) - Get Chevron Corporation Report

into its index today, bumping


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(HON) - Get Honeywell International Inc. (HON) Report


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


(COP) - Get ConocoPhillips Report



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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


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Moving on, the traders took note of cheap toy stocks. Macke remarked that Transformers sold well, helping


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beat on earnings. He also likes


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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.

Reliant Energy




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American Airlines




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Apollo Group


have paid the most to put their names on stadiums. Macke said he would short all the stocks. "We left out Enron," he quipped.

Tomorrow's Playbook

General Motors

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reports earnings tomorrow. Adami said that the company is an international story and, up 5% today, is fairly valued. He likes

Borg Warner

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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


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, 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

America Movil

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TheStreet Recommends

China Unicom

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Mobile Telesystems

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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.

Trader Radar

Darden Restaurants

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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

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Gold Fields

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. He believes that global energy stocks, including

Jacobs Engineering

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(FLR) - Get Fluor Corporation Report



(MDR) - Get McDermott International, Inc. Report

, 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

(PBCT) - Get People's United Financial, Inc. Report


Hudson City Bancorp


are poised to break out.

Final Trade

Macke said he likes Yahoo!. Adami named


(MRK) - Get Merck & Co., Inc. (MRK) Report

. Seymour recommended Tesoro, and Najarian would buy

Allegheny Technologies

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on a pullback.

Pops and Drops

The following Pops and Drops segment highlighted some stocks that made extreme moves during the week.




(AAPL) - Get Apple Inc. (AAPL) Report

jumped 3%. Macke said the stock continues to trade well off a technical bottom.



climbed 6%.

Applied Materials

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was up 4%. Najarian said the company might come up tomorrow on earnings.

Potash was up 5%. Seymour said it was a fantastic story.


(CSL) - Get Carlisle Companies Incorporated Report

surged 14%. Adami said the strength may mean GM might report a good quarter tomorrow.


(DVN) - Get Devon Energy Corporation Report

was up 5%. Darden Restaurants was up 8%. Macke called the move a dead lobster bounce.

Fomento Econmico Mexicano

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rose 4%. Seymour said the beer industry was consolidating.

NII Holdings

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gained 4%.


(APA) - Get Apache Corporation Report

was up 3%. Adami said he expects it to go higher.





slipped 1%. Adami said it's a nice stock.

LCA Vision


plummeted 18%. Macke said to stay away.

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