'Fast Money' Recap: 'Death Knell' for RIM?

NEW YORK ( TheStreet) -- The markets rose Thursday on encouraging U.S. jobless claims data.

The Dow Jones Industrial Average rose 45.33, or 0.38%, to 11,868.81. The S&P 500 added 3.94, or 0.33%, to 1215.76. The Nasdaq added 1.70, or 0.07%, to 2541.01.

Guy Adami said on CNBC's "Fast Money" TV show that Research In Motion's ( RIMM), which was down 7% in after-hours trading after it reported weak guidance, should set up Friday as the capitulation day for the stock. He said it would give investors something to trade against in terms of being long.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Karen Finerman said the stock is ridiculously cheap and could get even cheaper.

Pete Najarian wondered what is the capitulation bottom for the stock. He said the only catalyst for RIM is the QNX, which won't be be available in the middle of 2012. He said the stock generated heavy option activity, with traders evenly split in their expectations for a big move up or down. He said investors need to buy put protection in the stock as the company struggles to keep its market share from declining further.

Colin Gillis, an analyst at BGC Partners who has a sell rating on the stock, said RIM is on the ropes. He said the new operating system is still in transition amid reports of a drop of unit smartphone shipments for the next quarter. He said there is no guarantee that its new Blackberry will get any traction against stiff competiton.

He said he did not see any strategic acquirer in the wings. He said RIM might get a bounce from a couple of things in the earnings report but that the rally will likely fade because the "fundamentals are so wrong."

CNBC reporter Jon Fortt, who was listening in on the conference call, dropped a bombshell when he reported that the debut of the Blackberry 10 will be delayed to the latter of the part of 2012 because of a delay in the availability of a crucial chip. "This is a big thing for shareholders," he said.

Mike Khouw responded to the report by saying that this could be the "death knell" for RIM.

Joe Terranova also said RIM has to focus on taking steps to prevent the loss of intellectual capital through a reduction in head count from the delay in the availability of the chip.

Melissa Lee, the moderator of the show, shifted the discussion to Zynga, whose IPO raised $1 billion after it was priced at $10 a share. CNBC reporter Julia Boorstin said the shares weren't priced higher because the demand wasn't as high as it was earlier in the year.

Stephanie Chang, a research analyst with Renaissance Capital, said the low-than-expected share price might due to risk aversion among IPOs in the current market.

But Chang was high on Zynga, saying it distinguished itself from the other social gaming companies and traditional video game companies like Electronic Arts ( ERTS).

Stephen Weiss said he was wary of the investment loyalty in IPOs in this space and would wait to how the "real shareholder base" develops.

Lee shifted to another IPO debut: Michael Kors ( KORS), whose stock got a nice 20.75% bump up the first day.

Stacey Widlitz, president of SW Retail Advisers, agreed with Lee that the stock is priced for perfection and that its stock valuation may getting ahead of itself. She said one mistake could lead to margin compression for a company that is displaying high-flying same-stores growth, a strong store rollout plan and good margins.

Finerman, who bought the stock at the offering, sees a lot of growth to come in the company. She said the stock could trade up a fair amount.

Shifting to the Volatility Playbook, Najarian said he would take advantage of the lower volatility and get into a strong stock like Starbucks ( SBUX) where "everything is working" and buy a put spread and participate to the upside.

Lee brought in Michael Chertoff, chairman of The Chertoff Group, to talk about investing in cyber security. He said Congress recently was dumbfounded at the amount of intellectual property being stolen from the government and commercial enterprises. He said the attacks from countries like Russia and China do serious damage to this country's competitiveness and global trade position.

He said cyber criminals and hackers do focus on the financial markets and other infrastructure. He outlined a number areas where security can be beefed up, including network sensors, software to monitor flow of traffic, deep packet inspection, big datga analytics, and cyber forensics.

Terranova said he liked ITT ( ITT) and CACI International ( CACI), while Najarian offered up Symantec ( SYMC).

Despite crude futures being down 1.5%, Dan Dicker, senior contributor for TheStreet, downplayed the fall in oil. He said Brent, at $106 a barrel, still looks bullish. Still, he thinks crude has more to drop and would pick up Apache ( APA) at the low $80s and Schlumberger ( SLB) down at $60

Shifting to the retail sector, Taposh Bari, a Jefferies analyst, sees plenty of upside for Nike ( NKE) in 2012. He has reiterated a buy on the stock with a price target of $115.

He said the company can handle price increases favorably and is looking forward to the summer Olympics and a NFL uniform deal.

In the final moves, Weiss liked managed care and a company like Aetna ( AET). Khouw liked Macy's while Terranova liked ManTec ( MANT). Adami liked Entergy ( ETR) Finerman liked Covidien ( COV). Pete Najarian liked Eli Lilly ( LLY). And Jon Najarian liked Adobe ( ADBE).

-- Written by David Tong in San Francisco.

>To contact the writer of this article, click here: David Tong.

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