'Fast Money' Recap: The Year Starts Lower

NEW YORK (TheStreet) -- The S&P 500 closed flat, putting the first two trading days of 2014 in the red to start the year. 

Liberty Media (LMCA), which already owns a majority stake in Sirius XM Radio (SIRI), offered to acquire it at roughly $3.68 per share. 

Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said SIRI has wide margins but small net income, meaning it's not as efficient as it could be. He said the deal could get done above the original offer price. 

Guy Adami, managing director of stockmonster.com, suggested the stock offers a good risk-to-reward ratio at current levels. 

Tim Seymour, managing partner of Triogem Asset Management, said the news should not help LMCA break out of its current trading range because besides already having a majority interest, the announcement was no surprise. 

Auto sales for the Big Three -- Chrysler, Ford (F), and General Motors (GM) -- came in lower than expected. Brian Kelly, founder of Brian Kelly Capital, suggested that if auto sales start to stall it could weigh on the housing market in the not-so-distant future. 

Seymour said investors should not focus on just one month of sales. Truck sales should continue to drive profits, especially as truck demand rises with new home builds. 

Adami suggested investors look at a three-month period, not a one-month period, for auto sales. However, he did advise caution going forward. Brown said investors should focus on what the auto makers are doing on the international front over the long term, say five to 10 years. 

Seymour said Yahoo! (YHOO) could appreciate another 20% based on the value of its different business segments including its stake in Alibaba. Adami concurred. 

Kelly said the United States Natural Gas ETF (UNG) found support at $20. He is a buyer of natural gas. 

Victor Anthony, managing director at Topeka Capital Markets, was a guest on the show. Regarding the whipsaw-like trading action of Twitter (TWTR), he said it's based solely on momentum. He added there are few negatives for the stock but that could change after the company reports earnings. He said the stock is priced for perfection and has gone too far, too fast. 

Kelly said he would be a seller of TWTR at these levels and believes it could decline to the mid-$50s. Brown, who is long with a small position, said he is hoping for a large, earnings-induced selloff so he can buy more shares. 

Adami suggested investors take profits in Twitter near these levels. 

Avi Reichental, president and CEO of 3D Systems (DDD), was a guest on the show. He said investors can expect more commercial products, consumer products and partnerships to be unveiled at the upcoming Consumer Electronics Show. Many naysayers point to the number of acquisitions DDD makes, he said, but the deals are made for the technology, not to fuel growth. He added that consumer products will grow into a significant market over the long term and his company is positioning itself accordingly.  

Adami said valuation on 3D Systems has been the focal point for the bears for years now. The argument hasn't worked and he suggested not to short the stock. Brown agreed, saying the company, while overvalued right now, is at the forefront of a new industry. 

For their final trades, Seymour is buying gold and selling platinum in a pairs trade. Brown said to buy the Financial Select Sector SPDR ETF (XLF) and Adami said to buy Blackstone (BX). 

-- Written by Bret Kenwell in Petoskey, Mich.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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