Karen Finerman, president of Metropolitan Capital Advisers, said shares of GM have rallied on this news, which is interesting because more shares are coming to the market and that usually negatively affects the stock price. She added GM has strong fundamentals.
Tim Seymour, managing partner of Triogem Asset Management, said he doesn't know if GM will initiate a dividend as soon as many investors believe because the current buyback is so big. He added that Tata Motors Limited (TTM) looks like a good buy.
Brian Kelly, founder of Brian Kelly Capital, said he would be a buyer of the stock and not a seller on this news.
Guy Adami, managing director of stockmonster.com, said GM stock has rallied a ton since July while Ford (F) has mostly traded sideways. He added that he would be a buyer of Ford.
With shares of Google (GOOG) near all-time highs, Finerman defended the stock, saying it's not a bubble. She added that it's cheap compared to a lot of its competitors.
Seymour called the stock "conservative," considering its growth rate.
Adami said shares of Micron (MU) are cheap based on valuation, while the share price could continue to squeeze short-sellers.
Seymour disagreed, saying the stock is highly overbought at current levels.
Kelly said 3-D printing stocks are overbought in the short term but offer investors an opportunity to buy into a long-term, revolutionary technology.
Adami added the industry will eventually become commoditized, which is bad for shareholders. But perhaps big tech names such as International Business Machine (IBM) or Hewlett-Packard (HPQ) will look to the space for potential M&A candidates in an attempt to drive growth.
Dennis Gartman, publisher of The Gartman Letter, was a guest on the show who provided his top five trades through the end of the year, in this order:
- Short yen/long Canadian dollar and British pound
- Long gold in yen dollars
- Long the Nikkei
- Long steel, copper, railroads and ships
- Short U.S. government bonds
Adami said investors aren't buying Twitter (TWTR) for its fundamentals because it's very overvalued. He added the stock could be setting up for an interesting short position.
Seymour said Abercrombie & Fitch (ANF) has solid support near $33 to $34 and investors could likely get long with a stop just below that level. Adami concurred.
SodaStream International (SODA) was the first stock on the show's "Pops & Drops" segment. Finerman said the products are selling much better this year than in 2012.
McDonald's (MCD) fell 1% and Seymour said investors can continue to own the stock, despite its recent shortfalls.
Sysco Corp. (SYY) popped 10% and Adami said the stock will probably trade lower from here and suggested investors do not initiate a long position.
Kraft Foods Group (KRFT) jumped 2%. Kelly said the stock doesn't appear to be breaking out so investors should plan to buy it near $52.
Dan Hurwitz, CEO of DDR Corp. (DDR), was a guest on the show. He said cold weather has been driving strong coat and boot sales. He added top retailers such as Nordstrom (JWN), TJX Companies (TJX) and Macy's (M) will likely say the weather helped sales while teen retailers including Aeropostale (ARO) and American Eagle Outfitters (AEO) will blame it. He admitted his company is struggling to find growth in Brazil but is thriving in Puerto Rico.
Kelly suggested investors do not buy the dip in Icahn Enterprises (IEP).
For their final trades, Seymour said he would be a buyer of ICICI Bank (IBN) and Kelly is a buyer of Teck Resources Limited (TCK). Finerman said to buy Liberty Interactive (LINTA) and Adami is buying Lions Gate Entertainment (LGF).
-- Written by Bret Kenwell in Petoskey, Mich.