3 Stocks I Saw onTV
NEW YORK ( TheStreet) -- The debut of Google's ( GOOG) Nexus One was the hot topic on CNBC's "Fast Money" TV show on Tuesday. Not much happened in the second trading session of the year. The Dow Jones Industrial Average fell 11.94, or 0.11%, to 10,572.02, while the S&P 500 added 3.52, or 0.31%, to 1,136.51. The Nasdaq rose 0.29, or 0.01%, to 2,308.71. Pete Najarian led off the discussion of Google's new smartphone, saying the Nexus One is going to have a major problem as an unlocked phone priced at $529. He said the high price of the iPhone posed a problem for Apple in its early going, and Google will encounter the same problem until it lowers the price. For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Joe Terranova said Google's smartphone entry is all about competition in a very competitive space among tech giants with large balance sheets and a lot of cash to throw around. Tim Seymour said Nexus One won't be a driver of business for Google so much as its Android operating system and the ad sales it will generate. Guy Adami said Research In Motion ( RIMM) seems to be the loser from this added competition. He said Qualcomm ( ACOM), a name that hasn't been discussed much, seems to a winner in this space because it provides chips for all the players in the space. Melissa Lee, the moderator of the show, said Palm ( PALM) is supposed to be making a big announcement at the upcoming Consumer Electronics Show. Seymour said he believes Palm will use the opportunity to announce carrier deals.
Najarian said Palm's problem all along has been its tieup with Sprint Nextel ( S). He said that situation can improve if Palm announces tieups with other carriers. Lee said it was important for Google to announcement carrier ties for its Nexus One, and it did, with T-Mobile, Vodafone ( VOD) and Verizon ( VZ). "That should be a positive," she said. Lee noted that Ford ( F) shares hit a new 52-week high as it reported a 33% jump in December sales. Adami said the trading volume was huge and believes investors should have taken a pause today and sell the stock. Terranova agreed, saying he was worried about the trading pattern of the stock, especially at the close. Najarian said instead of dumping the stock, investors should buy puts and get some sleep at night. For the chart of the day, Lee referred to a chart of hot rolled coil steel. Seymour said prices of such steel have been rising in North America and Europe by 7% to 9%. He said steel makers are finally seeing some pricing power and that this should bode well for the rest of the year. Najarian said coal and metallurgic names were also moving higher. Seymour said Posco ( PKX) is his steel play, while Najarian said he liked Cliffs Natural Resources ( CLF) for its global exposure. Lee said Goldman Sachs ( GS) managed to close higher despite a cut in fourth-quarter earnings estimates by noted bank analyst Meredith Whitney. Adami said he wasn't surprised by her comments, adding the stock is trading right where it's supposed to be.
Lee brought in Gene Munster, a Piper Jaffray analyst, to comment on Nexus One's impact on Apple and Google. His reply: none. He said it was a "crazy" day with Google entering the cellphone business and Apple heading into the advertising business, with its acquisition of Quattro Wireless, a mobile advertising company. Munster said people aren't buying the iPhone for the phone for a cool screen, and but rather for the 10 million apps that are being downloaded daily. He said Apple has a big edge on that score, with 125,000 apps at its store compared to 20,000 apps for Google. He also said the acquisition of Quattro will make it more appealing for developers to build apps for the iPhone. He also said Apple has ties to 170 carriers compared to 50 for Google. And he said Apple has a great opportunity to expand overseas, since 44% of its iPhones are sold in the U.S. "That's going to be the story in 2010 (for Apple)," he said. Seymour said he considers Potash ( POT), Bunge ( BG) and Mosaic ( MOS) buys in the ag space. Najarian said investors should look beyond Mosaic's earning miss today and focus on its growth potential. Seymour said Mosaic is finally getting visibility on pricing in its deals. Bullish on the dollar? Richard Bernstein, CEO of Richard Bernsteind Capital Markets, is betting the dollar will rise if the economy improves and the Fed tightens its monetary policy and raises interest rates. He said it's premature to worry about debt when the country is entering an upturn and government revenues are going to go up.
He said he would play the upturn by investing in smaller cyclical companies in the U.S. Lee invited Peter Gaucher, product director for Lenovo mobile Internet product management, to talk about the debut of its Skylight tablet, which combines features of a PC netbook and a smartphone. Gaucher said the new product is targeted for the middle space between PCs and smartphones. He said Lenovo's new tablet, which weighs less than two pounds and features a 10.1 inch-screen, is aimed at users who are focused on Web applications. The Skylight is scheduled to be launched in the spring. Lee brought in Karen Finerman to comment on Kraft's ( KFT) decision to raise its offer for Cadbury ( CBY). Finerman, whose firm is short Kraft and long Cadbury, was struck by Warren Buffett's warning to Kraft about paying too much for Cadbury. She said Buffett was sending a message to Cadbury shareholders that Kraft's pockets aren't unlimited. In this week's segment on 10 stocks for decade, Najarian chose BP ( BP) . He said the company has a lot going for it, including its high dividend yield, huge alternative energy business and its impressive global business. In the final trades, Seymour was long China Mobile ( CHL). Adami said he would buy Mosaic ( MOS) if it opens lower. Terranova said the way to play the British pound is with GBP Sterling Shares ( FXB). Najarian was enthusiastic about Bunge ( BG) as an ag play. -- Written by David Tong in San Francisco To watch replays of Cramer's video segments, visit the Mad Money page onCNBC. "Check out
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