3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- The after-markets were abuzz Monday with the announcement by Texas Instruments ( TXN) of a $6.5 billion merger with National Semiconductor ( NSM). For the day, the Dow Jones Industrial Average added 23.31, or 0.46%, to 12,400.03. The S&P 500 gained 0.46, or 0.03%, to 1,332.87. The Nasdaq fell 0.41, or 0.01%, to 2,789.19. Guy Adami said on CNBC's "Fast Money" show that the deal may be coming at the right time with National Semi coming off a disappointing quarter. He said it was time to look at other possible moves in the space, including Linear Tech ( LLTC) and Maxim Integrated ( MXIM). For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Tim Seymour said the merger was a case perhaps of the industry leader buying the better player and using its sales force to push out the better product. Karen Finerman said she doubts whether anyone else would come in at this point. She said she wasn't going to touch National Semi, adding there is tremendous downside risk and little in the way of upside. Joe Terranova called it a "home run" for National Semi, with Texas Instruments overpaying for a stock that was down 10% last year. Brian Kelly said the merger doesn't change his opinion of the chip sector, which he is still shorting. He didn't like the fact that Texas Instrument will be increasing its exposure on the industrial side while moving away from the exposure to fast-growing smartphone space. Craig Berger, an analyst for FBR Capital Markets, said National Semi received a "full, fair price." He said he liked the synergies of the merger because it allows Texas Instruments to use its more sophisticated factories to manufacture National Semi's chips. Berger said there are a lot of inexpensive chip stocks in the space. Terranova said he didn't believe the merger would ignite the tech sector. He said chip sales are in the later innings of the cycle, adding he was moving away from Nvidia ( NVDA) and Marvell ( MRVL). CNBC tech correspondent Jon Fortt said the merger will increase Texas Instrument's market share to 17%. He said it also makes sense because the company can take advantage of its advanced processing technology to manufacture National Semi's chips.
Financials have been the other buzz king that has missed out on the rally. Adami said financial names like Bank of America ( BAC) can't seem to be able to get out of their own way. Seymour was more encouraging, saying banks could be on their way to lending more in the upcoming quarters as interest rates don't look as if they are going to go much higher. But Kelly said high oil prices will flatten the yield curve and that's basically bad news for banks. Can the markets accommodate both oil and commodity stocks rising higher at the same time? Adami said he sees there's no reason why they can't, while Seymour said the global auto trade remains strong. Dennis Gartman weighed in China's move to pay a hefty premium for cotton at $1.40 a pound. He said cotton can go higher. Gartman also was relatively unconcerned with the rise in the price of oil so long as the hikes occur relatively quietly. He said today's autos are far more technologically advanced and fuel-efficient. Commenting on a speech by Fed Chairman Ben Bernanke tonight, Joseph Lavorgna, chief U.S. economist for Deutsche Bank, said Bernanke probably would wait until the next batch of economic data comes out before he discusses whether interest rates will be raised. Lavorgna said he believes that the Fed will probably go for a 25-basis point hike in December. He said it was irresponsible for the Fed to keep rates so low. Is General Motors ( GM) a value trade or trap? Finerman still believes GM's story is on track, saying the automaker has taken a lot of production and cost out of its structure and is rebuilding demand in a recovering U.S. economy and strong global auto market. She said she also liked Cummins ( CMI) in the space, while Adami liked Borgwarner ( BWA). Wynn Resorts ( WYNN) has surged to a three-year high on the strength of its Macau gambling operations, which were up 48% in March, year over year. Seymour said he was a huge buyer of Macau and advised staying the Macau-related casino trade. Can silver, which is at a 31-year-high, go higher? John Stephenson, of First Asset Management, believes that silver can get to $45 in the short run and $60 by the end of the year. Besides being cheaper than gold, silver has industrial uses and is the investment of the decade, he said.
He said his picks in silver include Silver Wheaton ( SLW), Pan American Silver ( PAAS) and iShares Silver Trust ( SLV). In a correction alert, Kelly argued that the charts showed the S&P may be moving down to 1,239 by the end of the month if it fails to break through the 1,332 resistance level. Seymour, though, said he believes the markets are going higher. Terranova found it difficult to believe the broader markets will going higher in the next quarter. Rather, he felt that a few sectors like energy will move higher and that investors would have to drill down to find those sectors. What is the real black swan for the markets? John Maudlin, coauthor of a new book called Endgame, said the sovereign debt crisis might be the one. He said Ireland's refusal to pay back up to $100 billion in debt could be critical to banks in Germany and France. He also was down on the yen, saying Japan will implode from the current crisis. He said he would go long gold and short the yen. There were no final trades. --Written by David Tong in San Francisco. To contact the writer of this article, click here: David Tong. To follow the writer on Twitter, go to http://twitter.com/davidtong. To submit a news tip, send an email to: email@example.com. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. Follow TheStreet.com on
Twitter and become a fan on Facebook.