3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- The markets rallied Monday on the strength of health care stocks. The Dow Jones Industrial Average was up 43.91, or 0.41%, to 10,785.89, while the S&P 500 added 5.91, or 0.51%, to 1,165.81. The Nasdaq jumped 20.99, or 0.88%, to 2,395.40. Pete Najarian said on CNBC's "Fast Money" TV show on that the market rose not only on the strength of health names but also "frustrated" shorts in the gambling and retail sectors. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Guy Adami said he was surprised in the market turnaround because it looked as if the S&P looked like was going to take a big dive in the early stages of the trading session. Joe Terranova said the uncertainty in the health care sector caused certain health care names like Tenet Healthcare ( THC) to rise because "no one owned them." Adami said health care names like Medco Health Solutions ( HMS) and Express Scripts ( ESRX) were doing well before the House vote on Sunday and will continue to do well for fundamental reasons. Najarian's pick in the space was McKesson ( MCK), which hit a 52-week high today. He said the company is well positioned in drug distribution and IT, with further upside revenue and earnings potential. Lee noted a Citigroup report that predicted drug sales will rise 4% to 6% between now and 2019 because many more people will be qualified to buy drugs. Terranova said the next trade in this space could be HMOs. Mike Huckman, a CNBC reporter, said investors have returned to big pharma now that the uncertainty has been lifted by Sunday's historic vote on health care reforms. Huckman noted Mylan ( MYL) is at a multi-year high while Teva Pharmaceutical ( TEVA) has hit a historic high, with a bullish revenue forecast through 2015. According to Huckman, the biotech stocks continue to move higher as M&A activity picks up. Lee brought in Colin Gillis, an analyst with BGC Financial, to comment on Google's ( GOOG) decision to stop censoring search results in China and direct users to a site in Hong Kong.
He said Google has botched the handling of this issue and put its desktop search, research development center and mobile platform in China at risk. He acknowledged China accounts for a very small part of its revenue, but he said Google's departure would be damaging because it would mean leaving a potentially huge market to competitors. Shifting to the financial regulatory reform bill that the Senate is now taking up, Terranova reiterated his short of Goldman Sachs ( GS) on the belief that the bill is moving along a lot faster than expected. He also said Goldman Sachs has been struggling at the $180 resistance level. Lee brought in Dick Bove, an analyst with Rochdale Securities, who put a $5 price target on Citigroup ( C). Bove saw many positives in Citigroup as an international bank for many large companies and as an international credit card company. He said Citigroup is in a good position, with $195 billion in cash and more capital as a percentage of assets that it has had in a long time. He said it also has gotten rid of some badly performing businesses and written off many bad loans. He said the stock could go up to $8.50. Najarian said there was heavy options activity in Las Vegas Sands ( LVS), while Terranova said he liked the looks of International Game Technology ( IGt), which he sees heading north of $20. Is the IPO market showing signs of life? Bob Pisani, CNBC reporter, said the IPO market has been struggling this year. But he detects signs of life in two IPOs this week because they are getting oversubscribed. The two are MaxLinear, a chipmaker for broadband video, and Calyx Networks, which makes broadband access equipment to small to medium size service providers. Lee brought in Dennis Gartman, of the Gartman Letter, who expressed continued grave concerns about the deteriorating situation in Greece. He said Greece still faces serious problems that will take years to undwind. He is worried about German opposition to a bailout for Greece, and he said the Greeks don't want the IMF to come in to dictate actions for them to take.
Brian Kelly agreed with Gartman's assessment, as he expressed fears of a scenario where the the Greek government may not be able to borrow. Lee brought in Thomas Falk, CEO of Kimberly-Clark ( KMB) to talk about a downgrade from Goldman Sachs to conviction sell because of the impact of higher pulp prices. Falk said the company has known for some time about higher pulp prices and is working to minimize their impact. He said the company is forecasting a turnaround in prices. He told the panel that the main driver for his company has been emerging markets and hasn't had any problems working in China, where his company welcomed for the jobs it is going to create and products it will be providing to customers who want the "best product possible." In the final trades, Terranova said to take a look at Potash ( POT). Adami liked Best Buy ( BBY), while Mike Khouw liked the June 28 calls in Oracle ( ORCL). Najarian liked Dupont ( DD). -- Written by David Tong in San Francisco To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. "Check out "'Fast Money' Portfolios of the Week" on Stockpickr every Thursday. Follow TheStreet.com on Twitter and become a fan on Facebook.