3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- The markets rallied Monday amid reports that S&P would review 15 eurozone nations for a downgrade. The Dow Jones Industrial Average was up 78.41, or 0.65%, to 12,097.83. The S&P 500 rose 12.80, or 1.03%, to 1257.08. The Nasdaq added 28.83, or 1.10%, to 2656.76. Joe Terranova said on CNBC's "Fast Money" TV show that the S&P rating news is going to make it more difficult for the S&P 500 index to break above its 200-day moving average. Tim Seymour called S&P's rating move "garbage." He said this was the same rating agency that didn't see any stress in the Germany's economy three weeks ago. He said it also hasn't seen the tightening in yields and austerity plans in Italy and Greece. He wondered why S&P is spreading so much chaos to the markets. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Stephen Weiss agreed, saying S&P's decision to put 15 eurozone nations on the negative watchlist show demonstrated how clueless it is. Scott Nations also said the S&P rating report shows how backward the rating agency is. He said he found it difficult to believe that S&P rates Deutsche Bank ( DB) higher than JPMorgan ( JPM) and other U.S. banks. He said the options markets have it rated the other way around, with the U.S. banks ahead. Brian Kelly said the S&P news could turn out to to be positive if it pushes the European leaders to come with an agreement on Friday. Scott Wapner shifted the discussion to McDonald's ( MCD), which rose to an all-time high before turning lower at the end of the session. Bryan Elliott, an analyst with Raymond James who has an outperform rating on the stock and a price target of $100, said McDonald's is a powerful global brand that still has a long way to go to penetrate emerging markets. He praised its management for doing an excellent job of growing market share by putting out better prices and marketing them exceptionally well.
On a number of other stocks, he said Chipolte ( CMG) is finding it hard to sustain its valuation over the intermediate-term time frame. He said Panera Bread ( PNRA) needs to get on to national TV if it wants to move growth to another level. Weiss said he would go with Coca-Cola ( KO), which sports a similar yield but has a substantially less P/E. Wapner noted that Transocean ( RIG) shares were up 5.47% after its CEO purchased some stock. Dan Dicker, a senior contributor for TheStreet, said Transocean is in a sweet spot where the demand for its services is growing quickly. He said the stock has "great value" and is a "terrific buy." Oil was a trickier trade. Dicker said the rising price of oil had less to do with fundamentals than with headlines. He said the traders were pushing the buy button after the downing of a U.S. drone in Iran over the weekend. Is Microsoft's ( MSFT) new dashboard update for its X-BOX console going to take over living room entertainment? Natali Morris, a CNBC contributor, said the update, which will be unveiled Tuesday, has a good chance of grabbing market share after Google's ( GOOG) failed TV bid and Apple's ( AAPL) much talked about push into TV next year. She said the update is done well and assumes the user has subscriptions to content providers like Netflix and Hulu as well as a X-Box live subscription. She said the console has a lot going for it with its search features, cloud storage and its integration capability with the Windows phone. The panel was pessimistic about Microsoft's chances against Apple TV. Terranova said Microsoft would have do something spectacular to beat Apple to the punch with its Apple TV. Wapner shifted the discussion to SAP's ( SAP) move into cloud computing with its acquisition of SuccessFactors ( SFSF). Ray Wang, of the Constellaton Research Group, applauded the move. He said Salesforce.com ( CRM) is also in this social market place that is somewhere between the consumer and enterprise spaces. He said the acquisition of Successfactors will up the ante for companies like Netsuite ( N), Taleo ( TLEO) and Concur Tech ( CNQR).
Nations said the valuation for some of these stocks like Netsuite is getting out of hand. He said the call volume for Netsuite is 12 times the average call volume. Wapner noted today's buzz kill was the fertilizer space, where stocks like Mosaic ( MOS) were down. Seymour attributed the decline to the ability of the largest customers of these companies like India to jawbone down the price of potash and other fertilizer products. Why is gold weakening in the face of an equities rally? Dennis Gartman said it's probably due to the fact that stock portfolio managers are behind on their benchmarks and are swapping out of gold and moving into equities. Commenting briefly on the drubbing Vladmir Putin's United Russian Party took on Sunday in parlimentary elections, Seymour said the setback means a broadening democratic base and a more interesting market. He said he particularly liked the Russian cellphone carriers Mobile Telesystems ( MBT) and Vimpelcom ( VIP). In the final moves, Weiss liked Verizon. Terranova liked True Religion ( TRLG). Adami favored General Mills ( GIS). And Seymour liked TIM Participacoes ( TSU). -- 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: email@example.com. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. Follow TheStreet.com on
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