3 Stocks I Saw onTV
NEW YORK ( TheStreet) -- The markets retreated Monday on profit taking. The Dow Jones Industrial Average dropped 48.22, or 0.44%, to 10,812.04. The S&P 500 lost 6.51, or 0.57%, to 1,142.16, while the Nasdaq fell 11.45, or 0.48%, to 2,369.77. Jon Fortt said on CNBC's "Fast Money" show that Research In Motion's ( RIMM) announced today at a developers conference a new tablet called "PlayBook" that features a 7-inch touchscreen, high-resolution cameras and Bluetooth connectivity. He also said it is lighter than Apple's ( AAPL - Get Report) iPad. The technology correspondent said the PlayBook can connect to the user's Blackberry and store information like email on an external server. He said the tablet will go sale in the first quarter of 2011. 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 that RIM is merely trying to use the PlayBook to "buy some time" and get a foot in the door in a market dominated by the iPad. He said the Playbook strategy is to emphasis everything that the iPad isn't including features like Adobe's ( ADBE) flash and being more suitable for enterprise use. Kelly was unconvinced. He said the iPad is getting popular with business users, while Adami didn't think much of the product offering, adding the value of the stock might be closer to analyst Colin Gillis' price target of $38. The stock closed today at $48.36, down 1.04% for the day. Melissa Lee, the moderator of the show, said it was a big day for M&A activity with $10.5 billion in deals announced although there was little market reaction. Kelly said he didn't want to be in the Treasury market after the Fed has signaled its intent on inflation. He said he would rather be in TIPs. Terranova said the market is in an corrective mode and looking ahead to China's PMI and the U.S.'s ISM reports. Anthony Scaramucci applauded Wal-Mart ( WMT - Get Report) for using cheap federal capital to expand in South Africa, a fast-growing economy, by buying Massmart Holdings. Terranova said the move won't do much for Wal-Mart stock, but it will give it a footprint in Africa.
Stephen Weiss said he was not a buyer of bonds, preferring instead higher-yielding equities. In the second big deal of the day, Unilever ( UL) picked up Alberto-Culver ( ACV) for $3.7 billion. Terranova said the acquisition provides Unilver a key piece for global expansion. In the third deal of the day, Southwest Airlines ( LUV - Get Report) agreed to acquire AirTran ( AAI) in a deal worth $1.46 billion in cash and stock. Terranova said the deal gives Southwest the Atlanta hub and strengthens its position in the industry. "The market loved the deal." Adami said he liked Jetblue ( JBLU) after reading a Barron's article on it over the weekend. Scaramucci called Southwest the best capital allocator in the airline industry and said the deal represented a bet on commerce and travel and growth. Lee turned to banking sector, which Adami said was not performing along with the rest of the market. Kelly said banks need more capital and sensed a need for consolidation in the industry. Scaramucci said he was bullish on the sector for the long term, in which he sees banks growing prudently. Terranova said he's staying on the sidelines until he hears what Goldman Sachs ( GS) and JPMorgan Chase ( JPM) have to say in their earnings. Lee brought in Dennis Gartman to comment on silver closing on a 30-year record. He said silver has become an emerging market trade, with heighten interest in the metal in countries such as China and Malaysia. He said the only thing that might derail gold in another round of quantitative easing. Is the bond bubble bursting? Richard Volpe, RBS head of USD Rates Trading, said the Fed's push toward inflation will set off a race to low rates around the globe and a bearish dollar in the short term. Weiss said he's a buyer of Home Depot ( HD - Get Report) as low interest rates will make housing more affordable. Kelly liked Plum Creek Timber ( PCL) and Adami liked Louisiana- Pacific ( LPX - Get Report). Gary Kaminsky said three guests will be coming on his show Tuesday to make the case that interest rates will head lower, equities will continue to rally and M&A activity will continue. Kaminsky, though, expressed doubts about the forecasts on interest rates and market rally. Lee said for-profit education stocks may be in for a rough time if federal regulators cut off $30 billion in funding for the industry. Kelly said he had no trades, while Adami said he sees the shorts winning in these stocks.
For the hedge fund of the week, Scaramucci went with Carter's ( CRI - Get Report). He said it has a market cap of $1.5 billion, trades10.7 times 2010 earnings and a 20% core rate of return on equity.He has a price target of $35.50 on the stock. In the final trades, Weiss liked Mosaic ( MOS). Kelly liked Plum Creek Timber, while Adami liked Jetblue. Scaramucci liked Bank of America ( BAC). Terranova liked Juniper Networks ( JNPR). --Written by David Tong in San Francisco. To contact the writer of this article, click here:
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