'Fast Money' Recap: Going Global

NEW YORK (TheStreet) -- Equity markets continue to chop through familiar ranges, with the S&P 500 rising 0.81% on Wednesday, barely erasing Tuesday's losses. 

On CNBC's "Fast Money" TV show, the trading panel provided their global trades. 

Tim Seymour, managing partner of Triogem Asset Management, said he is a buyer of Starbucks (SBUX), which will double its store count in China to 1,500 by the end of this year. He said the company should continue to grow revenues 20% to 25% annually. 

Karen Finerman, president of Metropolitan Capital Advisors, said she is a buyer of North Atlantic Drilling (NADL) because the company has zero exposure to the U.S., which provides good investment diversity. She also liked the company's dividend and revenue.

Pete Najarian, co-founder of optionmonster.com and trademonster.com, said he is a buyer of the WisdomTree India Earnings ETF (EPI) because of the country's new pro-business government. 

Brian Kelly, founder of Brian Kelly Capital, said he is a buyer of the iShares MSCI Brazil Capped ETF (EWZ), but not until it dips into the low $40s. He reasoned the country may adapt a more pro-business government (like India) when it holds elections in the fall. 

Anthony DiClemente, managing director at Nomura Securities, was a guest on the show. Regarding Netflix (NFLX) and its decision to boost expansion efforts in Europe, he said it would take a short-term hit on earnings but pave the way for long-term benefits. As Netflix's user base grows, so will the benefit for the actual media providers because so many more customers will have access to the content. So far, the idea of raising Netflix's monthly prices has not affected customer sentiment too negatively, he reasoned. 

International expansion opportunities are huge, according to Najarian, who pointed out that only 16% of the company's revenue come from overseas. 

CNBC's John Jannarone was a guest on the show, discussing the rumored merger between Reynolds American (RAI) and Lorillard (LO). British American Tobacco (BTI) actually owns a 42% stake in RAI, which will increase to more than 50% at the end of July. If a deal between RAI and LO does indeed get done, it will be with shares of RAI, diluting British American Tobacco's stake, he said. 

To prevent that, it looks as if all three companies are working together to get a deal done. Regulatory hurdles seems likely, Jannarone said, but the deal would be "accretive" to all companies involved. 

Seymour admitted that it was "painful" being long Sina (SINA) but argued the valuation isn't all that bad. 

Google (GOOGL) told the Securities and Exchange Commission that it holds $30 billion in offshore funds for potential M&A activity. Eric Jackson, founder of Ironfire Capital and a columnist for TheStreet, thought Google could buy Spotify, which announced that it now has 10 million paying subscribers, nearly triple that of Pandora (P).

Google has not benefited from China, and could do so by partnering with, but not acquiring, Baidu (BIDU), via an investment. Finally, he said it would make sense for Google to acquire mobile messaging apps such as Line from Japan or Kick from Canada. 

Finerman said Google probably won't do any large foreign acquisitions. The company likely just told the SEC that as an excuse for keeping so much money in foreign funds due to the "bad tax policy" in the U.S.

Between Apple (AAPL) and Google, Seymour was a buyer of Apple. He said the stock is cheaper but admitted it had slower growth. However, he chose Apple because it appears to have a better risk-to-reward setup than Google. 

Kelly was a buyer of Google between the two because Apple seems to have all of its good news already priced into the stock. He added that Google has support near $525. 

Najarian was also a buyer of Apple. He reasoned the company appears to be on the cusp of being "revolutionary" once again.

Finerman loved the earnings report from Tiffany & Co. (TIF) as the company beat on top- and bottom-line estimates, raised guidance and showed growth in each region. The company is "hitting on all cylinders" but the valuation is too expensive for her. 

TIF reported "unreal numbers" for same-store sales, Najarian said. The stock looks likely to trade up to $100. Seymour said he would stick with TIF for the long term. Kelly disagreed, saying the stock may trade up to $100, but looks vulnerable at current levels. 

Nili Gilbert, co-founder and portfolio manager at Matarin Capital, was a guest on the show. While many popular momentum stocks have had a rough time over the past two months, she said the momentum trade is alive and well, investors just need to know where to look. Specifically, she likes Arkansas Best (ARCB) and United Therapeutics (UTHR). Both companies have very efficient operations, reasonable valuations and strong underlying fundamentals. UTHR has an attractive share buyback program, too. 

Kelly said he likes UTHR, and reasoned that momentum stocks with strong fundamentals tend to hold up better during market pullbacks. Najarian pointed out the 16% short interest in UTHR and said it could help propel the stock higher.

Tyson Foods (TSN) fell 2% and was the first stock on the show's "Pops & Drops" segment. Kelly said to "stay away" from the meat industry. 

Cisco Systems (CSCO) jumped 1%. Seymour said, "I think it goes higher."

Sears Holdings (SHLD) dropped 4%. Finerman said the company reported "awful, awful numbers" in regards to the company's Canadian sales results. 

Delta Air Lines (DAL) popped 2%. Najarian said the stock is not done moving higher and its refinery purchase should save the company $300 million annually. 

He also argued the Market Vectors Russia ETF (RSX) seems poised to go higher. Kelly argued that investors buying the RSX for its energy exposure, should just buy crude oil. 

Finally, Najarian pointed out the bullish call buying activity in Yingli Green Energy Holding (YGE), specifically in the June $3.50 call options. 

Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, said it was a "great move" for CEO Jamie Dimon of JPMorgan Chase (JPM) to get involved in Detroit. The $100 million move seems likely to payoff in the future, and at least doesn't hurt the company from a PR perspective. The city can turn around with the right political infrastructure and enough money, Scaramucci reasoned. 

"I think it's a great deal," Kelly said of Dimon's decision to go into Detroit. "Time will tell." 

JD.com (JD) priced its IPO at $19, above the previous $16 to $18 range. Seymour said the Chinese IPOs seem likely to go fine, perhaps "greasing the rails" so investors feel comfortable buying into Alibaba later this year.

Kelly said investors buying into JD for the long term should do well. Najarian agreed.

For their final trades, Seymour was a seller of the RSX at $26 and is targeting sub-$24 prices, while Najarian was a buyer of CBS Corp. (CBS). Kelly was buying the iShares 20+ Year Treasury Bond ETF (TLT) and Finerman said to buy NADL.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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