'Fast Money' Recap: Focusing on Apple

NEW YORK (TheStreet) -- On Monday, the S&P 500 cooled down from its recent rally, closing 0.40% lower. 

On CNBC's "Fast Money" TV show, the trading panel looked at Apple (AAPL), which closed 2% higher Monday. 

Pete Najarian, co-founder of optionmonster.com and trademonster.com, said Apple has had very bullish options activity while the stock is up 24% since its stock split in April. 

The stock seems likely to make new highs and investors may want to consider buying shares of Cirrus Logic (CRUS) if they are bullish on Apple since the company derives 80% of its revenue from Apple, he added.  

Tim Seymour, managing partner of Triogem Asset Management, said shares of Apple are still not overvalued and argued China will become a more important market for the company. 

Karen Finerman, president of Metropolitan Capital Advisors, said the stock seems likely to trade up to $100. 

Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said Apple's capital return for shareholders is one reason why many investors are buying the stock as well as the potential for future products.

Gene Munster, managing director and senior research analyst at Piper Jaffray, has a buy rating on Apple with a $105 price target. He said the company's new product categories and strong fundamentals are driving investors' increasing interest. He added that many investors are under-exposed to Apple, which could propel the stock even higher as more of them continue to buy. 

Finerman said investors' shouldn't "make too much" of Monday's selloff in financial stocks. She added that the low valuations make it easy for investors to stay long. 

Najarian said Wells Fargo (WFC) has been doing a terrific job of late and can "absolutely crush" its earnings expectations. 

Brown said investors may be surprised by how well the banks do this earnings quarter, especially JPMorgan Chase (JPM). Seymour reasoned there is a "low bar" of expectations for bank stocks this quarter. He said 2015 should be a good year for the sector. 

Najarian said shares of Micron (MU) can continue to move to the upside since the stock is not expensive based on forward estimates. He also likes Canadian Pacific Railway (CP). 

Seymour said investors should stay long industrial metal and mining stocks, with the exception of aluminum companies. He likes Freeport-McMoRan (FCX), Cliffs Natural Resources (CLF) and Southern Copper (SCCO). Najarian concurred, saying he likes FCX and SCCO. 

Brown said the only movie theater stock he found to have a good risk-to-reward was Cinemark Holdings (CNK). He suggested investors use Monday's low as their stop-loss. 

Finerman said she's not thrilled to see Google (GOOGL) entering the fresh food delivery space, which means going head-to-head with Amazon (AMZN). She said Google's entry would be expensive for both companies; overall, she still likes Google on the long side. 

Seymour said Japanese equities seem poised to begin outperforming. 

Dennis Gartman, editor and publisher of The Gartman Letter, was a guest on the show. He is still long Apple and Alcoa (AA) but is largely paring back his long exposure for the time being. Although we're still "in a bull market," Gartman reasoned the market has gotten a "bit ahead of itself" and needs to cool down over the next few weeks. Over the long term he is still bullish. 

Golar LNG (GLNG) fell 2% and was the first stock on the show's "Pops & Drops" segment. Finerman said the decline is just a pullback and investors should not worry about it. 

King Digital Entertainment (KING) fell 5%. "I would avoid it for a little while," Najarian said. 

BlackBerry (BBRY) is up 60% since the beginning of June and up 6% on Monday. Brown said to stay long the stock but not to initiate a new position. 

Tesla Motors (TSLA) fell 3%. Seymour said a reported car accident is not a reason to sell the stock.

Bob McAdoo, managing director and airline analyst at Imperial Capital, was a guest on the show. On July 21, Transportation Security Administration per-person fees will increase to $11.20 from $5. Passengers who take short flights will be those most affected and likely to resort to driving, he said.

However, this is not a reason for investors to worry because the fee increase is so small in terms of actual dollars. However, over time small fees could add up and deter consumers from flying. He is a buyer of American Airlines (AAL) and Delta Air Lines (DAL), and not a buyer of United Continental (UAL).

Seymour is a buyer of DAL since it runs its business so efficiently. He reasoned the stock could be worth $50 in 2015. Najarian also likes Delta Air Lines as well as Alaska Air Group (ALK).

For their final trades, Seymour is a buyer of Freeport-McMoRan and Najarian is a buyer of Cirrus Logic. Brown is buying the Market Vectors Agribusiness ETF (MOO) and Finerman said to buy Allergan (AGN) and sell Valeant Pharmaceuticals (VRX). 


-- 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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