'Fast Money' Recap: Hunt for Quality

The 'Fast Money' gang talks mortgages, private jets and WWE.
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The bulls came back in force Thursday and the

Dow

is now up 250 points in two sessions, and that meant plenty of discussion and debate among the guys on "Fast Money."

Eric Bolling received an investment letter from Goldman Sachs that said we're having a midsummer selloff, but that going forward liquidity will come back.

Jeff Macke would take a step back and add quality names. Guy Adami thinks Friday will be a monster tell, and that the market will see if the record short positions have conviction. Pete Najarian told investors to watch the first 30 minutes of trading and then the last hour. That's when the big orders will come in.

Merrill Lynch came out with a report that said buy health care and consumer staples, and sell technology and consumer discretionaries. Macke called it traditional, and he didn't agree with the technology call. Bolling thinks they got only one right. He says own technology and consumer discretionaries, but not health care.

Accredited Home Lenders

(LEND) - Get Report

was slammed down 34% after the company warned of a possible bankruptcy. Mortgage lenders have been getting hammered since Tuedsday, with

Genworth Financial

(GNW) - Get Report

and

Principal Financial

(PFG) - Get Report

both down 8%.

IndyMac

(IMB)

is down 20% and Accredited has lost 59%. Lone Star, a private equity firm, bid $15 for Accredited in June, and now that deal could fall through with the stock trading at $5. Bolling called the stock's chart a falling knife and said stay out.

Countrywide Financial

(CFC)

was supported by a research note from Moody's saying the company is in good shape. Najarian talked about how a $10 option that will expire in two weeks listed Thursday, and he said this is a bearish sign. Bolling agreed.

Exxon Mobil

(XOM) - Get Report

traded lower even as crude oil prices were up. Bolling says the production problem is going to continue to be an issue. Bolling thinks the way to play this is to buy oil service names like

National Oilwell Varco

(NOV) - Get Report

. Bolling continues to say stay out of integrated oils and refineries.

Nokia

(NOK) - Get Report

reported profits that soared, taking the stock up 8%. Najarian was impressed with Nokia selling more than 100 million units this quarter.

Mattel

(MAT) - Get Report

issued a recall of nearly 1 million toys made in China because of a lead paint scare. Macke says the recall will cost $30 million, and it could lead to toy prices rising. Bolling doesn't like the chart from a technical standpoint.

Starwood Hotels

(HOT)

reported strong profits and issued bullish guidance. Are the hotel stocks back in vouge?Adami likes the stock for a trade, with a stop out below $60. Bolling likes this as a play on the weak U.S. dollar.

Najarian saw crazy options activity in

Coca-Cola

(KO) - Get Report

, with the September $55 calls trading on heavy volume. He doesn't know what the catalyst is for the activity.

America's Aging Infrastructure

The bridge collapse tragedy in Minneapolis raises concerns over the aging infrastructure in the U.S. Is the rational reaction to buy infrastructure stocks off this news, names like

Fluor

(FLR) - Get Report

and

Foster Wheeler

(FWLT)

? Adami thinks if you're an investor, you should own these stocks regardless.

Bolling would own them for the associated global growth prospects. Bolling also like

Meadowbrook Insurance Group

(MIG)

, which is a play on toll roads. Macke likes

Exponent

(EXPO) - Get Report

, a company that specializes in consulting for architectural engineering.

Google Phone?

The Wall Street Journal

reported that

Google

(GOOG) - Get Report

is spending big money on developing a mobile phone. Jim Goldman told the crew that Google is earmarking more than $100 million for the project and hiring 200 engineers.

Goldman isn't so sure that Google will actually make a phone, comparing the idea to

Microsoft

(MSFT) - Get Report

building a PC. He says if Google decides to bid on the wireless spectrum, then consumers would get a free phone, free access to the Web and free phone calls.

Mobile advertising is a $65 million market, he says. He thinks the trade here is a bet on Google as a leader in wireless software. Bolling thinks that will happen, but he doesn't see a trade in it.

Tech Tidal Wave

Market players seem to be positioning in tech stocks for a spending tidal wave.

Hewlett-Packard

(HPQ) - Get Report

was up 3% and

Cisco

(CSCO) - Get Report

rose 4%.

Najarian made bullish comments on

Juniper

(JNPR) - Get Report

, Cisco and

Sun Microsystems

(SUNW) - Get Report

. Adami also likes

Dell

(DELL) - Get Report

and Bolling would buy

IBM

(IBM) - Get Report

. Macke also likes Cisco. Collectively, the guys like H-P.

CEO Interview

Pro wrestling suffered a blow recently when Chris Benoit killing his wife and child and then himself. Since then, shares of

World Wrestling Entertainment

(WWE) - Get Report

have fallen 7%. Will this negative news keep hurting the stock?

On Thursday, WWE reported strong earnings and revenue, due in part to the success of WrestleMania. The CEO of WWE, Linda McMahon, joined the "Fast Money" crew to discuss her company's prospects.

Dylan Ratigan asked her what was working. "Everything," McMahon replied. Ratigan followed up with the notion that WWE is facing competition from the Ultimate Fighting Championship. Is it a threat? McMahon replied, "Anything that competes for the entertainment dollar is our competition, but you have to look at longevity. We have been here a long, long time since the advent of network television, and I think we're going to be here a lot longer. I can't speak for the others."

Macke asked if steroids were a concern for WWE. "Anytime that you're going to answer a Congressional inquiry you take it seriously," says McMahon. "We have received a request and will respond appropriately. I think unfortunately the tragedy with Chris kind of notched things up a bit, for sure."

He then asked if any thought had been given to paring back WWE's schedule, noting that 84 events had taken place in a 90-day span. "Our talent works four days on and three days off for those who are booked," McMahon replied. "And they're not all booked all the time. So you might have that many events, but not all talent are working on all those days. So we really do look at a rotation schedule for our talent and try to maintain proper scheduling."

Ratigan asked the team if they liked the stock. Bolling wouldn't own it because he thinks it's too much of a PR nightmare. Najarian would buy it because the company is generating money. Macke thinks they need to get aggressive with their public relations.

Sea Change

A growing trend in travel is upon us with the expanding interest in private jets. Private jet travel is up 40% since 2002 due to companies like Blue Star Jets, which is making the experience cheaper. Blue Star Jets is growing at over 30% a year and doing $200 million in sales.

Adami says if you want to play this trend and make the fast money, buy

General Dynamics

(GD) - Get Report

,

Textron

(TXT) - Get Report

,

Rockwell Collins

(ROC)

and

Embraer

(ERJ) - Get Report

.

Najarian thinks the play off this is

Morton's

(MRT)

,

Tiffany

(TIF) - Get Report

and

Allergan

(AGN) - Get Report

, whose products and services are popular among the rich who fly on these jets.

Pops and Drops

Pops

:

The9 Ltd.

(NCTY) - Get Report

traded up 11% Thursday on strong demand for role-playing games in China. Adami thinks it goes higher.

Beazer Homes

(BZH) - Get Report

was up 14% as the hedge fund Citadel expanded its position in the builder. Bolling would stay out the stock.

Las Vegas Sands

(LVS) - Get Report

was up 8% on bullish growth at the Macao casino. Bolling called Macao the real deal and said to stay with it.

Pharmion

(PHRM)

soared 58% after positive results of a Phase 3 leukemia drug. Najarian says the run isn't over.

Dolby Laboratories

(DLB) - Get Report

was up 13% after beating analyst estimates. Adami says you can't stop the digital revolution.

Drops

:

Clorox

(CLX) - Get Report

traded down 7% on poor bleach sales. Najarian said he misread it and blamed Merrill Lynch.

LeapFrog Enterprises

(LF)

fell 16% on the China toy scare. Macke sees no opportunity in this stock.

Nortel

(NT)

was down 6% after the company cut profit forecasts. Adami says the guidance was terrible, but he would own it down to $19, with a stop, for a trade.

Getty Images

(GYI)

plunged 19%. Macke thinks its a round-trip to grimville.

Callaway Golf

(ELY) - Get Report

fell 6%. Najarian says the stock is done without Tiger Woods. Adami gave kudos to

Barron's

for a recent article that said take profits on Callaway. Macke said buy it now, because he thinks the company is sand-bagging next quarter.

Final Trade

: Najarian would buy Juniper before Cisco's earnings. Macke would get long Callaway on pullbacks. Bolling and Adami had no stock picks.

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