3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- The markets sank Wednesday on a snag over the eurozone rescue plan. The Dow Jones Industrial Average fell 72.43, or 0.63%, to 11,504.62. The S&P 500 lost 15.50, or 1.26, to 1209.88. The Nasdaq dropped 53.39, or 2.01%, to 2604.04. Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said that material and tech names led today's market decline. Guy Adami said the S&P pushed up to 1230 during the day but couldn't hold it. He expects the index to head lower. Karen Finerman said nothing mattered in today's market except for the impasse in the European debt talks. Tim Seymour said stocks remain attractive despite the negative market action. He said 73% of the companies that have reported earnings have beat estimates. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
He said Freeport McMoRan ( FCX), which was down 2.83%, is actually doing quite well. He said Freeport has not seen a falloff in demand, is paying a 4% to 5% dividend yield and sees record production ahead. He attributed Freeport's price action to technical reasons. If the S&P had moved to 1225 today, the stock would have traded up. He said Freeport is executing well but is caught up in a market in which "people are being pushed around by people playing macro." Lee noted that eBay ( EBAY) was declining in after-hours trading presumably because of a weak operating margin. Adami said the good news is the crushing performance turned in by its PayPal business Adami said the stock is down because it tends to sell off when it moves toward $35. Seymour wondered how eBay can integrate all the acquisitions it has made. Patty Edwards said she was not thrilled with eBay's rising marketing costs and its tough battle with Amazon.com ( AMZN). Karen Finerman said it be worthwhile to break the company in two: PayPal and its auction business. Lee brought in Vic Alboini, chairman and CEO of Jaguar Financial, to discuss his unsuccessful attempts to meet with the board of Research In Motion ( RIMM) to suggest some changes. Jaguar represents a group of 12 shareholders that hold 8% of the stock.
He said his group would like RIM to consider a change in corporate governance, encourage the sale of the company and consider a splitup of the company into three parts. Lee brought in Sam Hamadeh, CEO of privco.com, who was highly critical of Groupon's move to push through an IPO in November. He said the IPO shouldn't be used by the company as a short-term funding solution. He cited these red flags for Groupon: the business is deteriorating, insiders have cashed out and the balance sheet shows the company is technically insolvent. Is Intel ( INTC) a better buy than Apple ( AAPL)? Adami said he was impressed with Intel's impressive growth in PC microprocessors and how the stock hit a new 52-week high today. He said Intel has had a tremendous run the past couple of months but he's worried about resistance at $25. Seymour said Apple has reached such a size that it will be difficult to continue the kind of growth it had in the past. Still, he said Apple's potential in China has been underestimated. Shifting to today's developments in Europe's bailout, Dennis Gartman said the situation was confusing after the leaders of Germany and France left a meeting without making a statement. He said the Guardian's report of an expanded rescue fund proved to be premature. He said he was shorting the euro. Guy Adami said the Morgan Stanley ( MS) trade may be over after the stock made a move on Oct. 4 from $11 to as high as $17.60 in today's session. Shifting to Wynn resorts ( WYNN), which reported a 13-cent miss on the bottom line, CNBC reporter Jane Wells, who was on the conference call, said CEO Steve Wynn said the company has been doing "gangbusters" in October and didn't see any belt-tightening in the casino tables. Seymour, though, said Wynn and other casino operators will be be affected by a cap on gaming tables in Macao. Lee said it was rough sledding for hedge funds, which reported a ugly third quarter that marked the fourth worst quarterly performance. Ken Heinz, president of Hedge Fund Research, which issued the global industry report, said macro funds did the best with a narrow gain of 0.5%, while equity-focused funds fared the worst with an average decline of 10%. He sensed a rotation going on in the fourth quarter from macro funds to arbitrage-style funds.
In the final moves, Jon Najarian said to take profits on Riverbed ( RVBD) if it hits $25. Brian Stutland was going to go long Visa ( V) and short the calls. Seymour favored Freeport McMoRan. Adami liked Yahoo! ( YHOO). Finerman liked Global Payments ( GPN) . And Edwards liked Walter Energy ( WLT). -- Written by David Tong in San Francisco. >To contact the writer of this article, click here: David Tong. To submit a news tip, send an email to: firstname.lastname@example.org. 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.