'Fast Money' Recap: Can GM Shares Drive Through $38?

NEW YORK (TheStreet) -- The S&P 500 climbed on Wednesday, ending higher by 0.49%. 

On CNBC's "Fast Money" TV show, the trading panel looked at shares of General Motors (GM). 

Karen Finerman, president of Metropolitan Capital Advisors, said the stock continues to shrug off negative headlines. For that reason, along with the attractive valuation and dividend, she is long. 

Guy Adami, managing director of stockmonster.com, said GM could regain upside momentum if the stock can break through $38. However, he is a buyer of BorgWarner (BWA) and Delphi Automotive (DLPH) instead. 

Brian Kelly, founder of Brian Kelly Capital, questioned why GM is the only company to have all of these recall issues and suggested investors watch how its peers trade on the negative headlines. He is a buyer of Ford (F) and a seller of Toyota Motors (TM). 

Dan Nathan, co-founder and editor of riskreversal.com, said Ford looks like it could breakout to new highs over $18. 

Bob Peck, managing director at SunTrust Robinson Humphrey, has a buy rating with a $680 price target on shares of Google (GOOGL). He said the company is focused on improving three consumer categories: the TV, the car and the smartwatch. 

Google is also interested in the "Internet of things," he said, so it can collect data and personalize users' experience. He said investors should pay attention to Google's paid clicks metric in the upcoming earnings quarter. 

Kelly said shares of Google look likely to moved toward $600. Adami agreed. 

Bed Bath & Beyond (BBBY) missed on top- and bottom-line earnings estimates. Nathan said investors are not willing to pay the type of premium they were for BBBY last year, but the stock has fallen too much to short-sell at this point. 

Kelly suggested Bed Bath & Beyond's poor earnings results could be a read-through on the housing market, and wondered if Home Depot (HD) and Lowe's (LOW) would have underwhelming results as well.

Kelly said he was surprised Netflix (NFLX) and Disney (DIS) didn't rally on Wednesday along with their peers. He suggested both could be buying opportunities on Thursday. 

Adami said many of the network stocks -- such as Comcast (CMCSA), Twenty-First Century Fox (FOXA), Disney and CBS Corp. (CBS) -- are not overvalued and can continue to rally. 

Refinery stocks got hit hard on Wednesday. Adami told investors not to get long just yet. 

Brian Goldner, president and CEO of Hasbro (HAS), was a guest on the show. The company recently refreshed its Transformers merchandise lineup ahead of the movie release. The first three films combined for roughly $3 billion in box office sales, he said, while merchandise sales for Hasbro were near $1.6 billion for its Transformers line. He is hoping this year will be strong as well. The company is also working with 3D Systems (DDD) to make toys, and ones that are more customizable for its customer.

Adami said that with Hasbro's (HAS) low valuation of short-interest of 10%, the stock can continue to "grind higher."

Kelly said that if the Transformer movie has a good weekend at the box office, it could be the needed catalyst to push shares of HAS through $56. 

Charlie Anderson, an analyst at Dougherty & Company, has a buy rating on shares of GoPro (GPRO) with a $28 price target. $26.50 of that price is represented by the company's consumer products division, while only $1.50 of his price target is based on the company's media potential. As the cameras' filming definition improves, GoPro should consider its own media network or site, he reasoned. He is also a buyer of Ambarella (AMBA), which derives most of its revenue from security cameras, he concluded.

3D Systems fell 4% and was the first stock on the show's "Pops & Drops" segment. Nathan said the stock appears to be in "technical breakout." He suggested that traders who got long near $50 start reducing some of their positions. 

Allergan (AGN) climbed 2%. Finerman said the stock appears destined to be bought out, the only question is at what price.

Intercept Pharmaceuticals (ICPT) dropped 7%. Adami said not to buy the stock at current levels. 

Zulily (ZU) popped 9%. Kelly said the stock appears to have momentum and he suggested investors stay long. 

Nike (NKE) was the featured stock on the show's "Street Fight" segment. Adami was the bull, arguing that Brazil will become Nike's third-largest country in terms of revenue. However, it's not just because of this year's World Cup but also because of the 2016 Summer Olympics, which takes place in Rio de Janeiro. He added Nike's comp-sales in Western Europe are "off the charts" good, the company's inroads in emerging markets will continue paying off and Nike's contract with the National Football League will continue to be a large driver for revenue. 

Nathan was the bear. He said Nike is a great company with a lot of positive catalysts but he did not like the risk-to-reward headed into Thursday's earnings report. The stock has been acting poorly, he said, down 3% in 2014. He said the stock is also slightly overvalued. He is a buyer near $70.

Kelly said he is not a buyer of the stock ahead of earnings. However, Nike has support near $75, and if the results are good he is a buyer. 

CC Zhuang, co-founder and CEO of Qunar Cayman Islands Limited (QUNR), said many Chinese airlines are likely to follow suit after Air China's decision to cut its commission fees paid to travel agencies. He said the company's majority owner, Baidu (BIDU), allows for QUNR to have more brand awareness and better exposure to consumers. Currently, 32% of revenue are derived from its mobile platform, and that figure should rise to more than 50% by the end of 2014. 

Nathan said he likes Baidu on the long side. 

Finerman said she still finds the risk-to-reward of being long financial stocks attractive at current levels. However, she admitted that falling Treasury yields is not good for the sector. 

Nathan pointed out the bearish options activity in the Market Vectors Semiconductor ETF (SMH). Specifically, a buyer paid $0.51 for 20,000 of the August $48/$45 bear put spreads.

For their final trades, Nathan is a seller of the Financial Select Sector SPDR ETF (XLF) and Kelly is a buyer of the iShares Silver Trust ETF (SLV). Adami is buying NKE, while Finerman suggested buying Performance Sports Group (PSG). 

-- 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.

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