'Fast Money' Recap: Apple Under $100? Now What?

 

NEW YORK (TheStreet) -- The S&P 500 fell 0.08% but the trading panel on CNBC's "Fast Money" TV show had their attention on Apple (AAPL) , which slid 4.2% and closed below $100 per share for the first time since Aug. 18. 

Karen Finerman, president of Metropolitan Capital Advisors, said Apple looks like it could still decline a bit further. She is long the stock but has not covered her short $105 call options, which are being used to hedge a downside move. Don't buy the pullback yet, she added. 

Guy Adami, managing director of stockmonster.com, said Apple could decline to $88 per share if the company disappoints investors at its Sept. 9 event. 

Pete Najarian, co-founder of optionmonster.com and trademonster.com, said he used Wednesday's pullback to get long Apple. In the short term, the stock could push up to $105 and up to $110 in the longer term. 

Brian Kelly, founder of Brian Kelly Capital, said the stock could decline all the way to $80 if sentiment continues to become more negative. 

Adrian Mowat, chief emerging markets strategist at JPMorgan, was a guest on the show. Ahead of Thursday's European Central Bank announcement he suggested that quantitative easing from the U.S. has had a negative affect on emerging markets. His top picks are India, Indonesia and Brazil. In Brazil, he likes financials and energy stocks and has an underweight rating on resource stocks. 

Kelly said he likes the iShares MSCI Brazil Capped ETF (EWZ)   and likes Brazilian equities more than Indian equities. Najarian said he likes Chinese equities. 

Adami said Yum! Brands (YUM) is more expensive than McDonald's (MCD) on a forward earnings basis. He is a buyer of McDonald's and said Yum! Brands needs to find support near $66 or the stock could be in trouble. 

Kelly said he is not a buyer of Delta Air Lines (DAL) , which declined 5% on Wednesday. He added that investors who are long should consider taking some profits.

Najarian is a buyer of Delta Air Lines and United Continental Holdings (UAL) . Adami likes Delta and JetBlue Airways (JBLU) . 

Adami said Netflix (NFLX) seems likely to push up to $500 in the short term despite having a very high valuation. Najarian is waiting for a pullback before buying Netflix.

Finerman, who is long Disney (DIS) , said she likes the stock but admitted that shares are somewhat expensive.

Najarian pointed out the bullish options activity in the iShares MSCI Germany ETF (EWG) , specifically in the September $30 call options. 

Adami said Macy's (M) continues to trade well and looks likely to move up to the high-$60s or low-$70s. 

Dan Coker president and CEO of Gentherm Inc. (THRM) , was a guest on the show. He said that 70% of a car's energy is wasted and his company looks to improve that efficiency. Right now, the company has implemented heating and cooling adjustments in seats and steering wheels for automakers like Ford (F) and Volkswagen (VLKAY) . Next, Gentherm is trying to convert wasted exhaust into electricity, something it already does in the industrial pipeline industry. 

Adami reasoned that shares of Gentherm can continue to move higher, saying the valuation is "not that ridiculous" despite the 190% rise in the stock price over the past year. 

Kelly said there seems to be upside in THRM, but after the big rise in share price he is not a buyer. Instead, he likes Stillwater Mining (SWC) for its platinum and palladium mining business, components of which can be found in catalytic converters for automobiles. 

Finerman said THRM is interesting but a little expensive for her to be a buyer. 

Doug Yearley, CEO and director of Toll Brothers (TOL) , said the company's orders were slightly disappointing because both investors and management expected the housing market to be stronger at this point. He reasoned that the company is still doing well and is profitable. It saw a big increase in deposits for August, in which 60% to 65% will likely convert to finalized deals in two to six weeks. 

Kelly suggested that housing demand can only stay strong if mortgage rates stay low. 

Najarian said investors who want to trade the housing market can consider doing so with the homebuilder stocks. Those who want to invest can look at stocks likes Masco (MAS) , Sherwin Williams (SHW) and Whirlpool (WHR) , which have less volatility. 

CVS Health (CVS) climbed 1% and was the first stock on the show's "Pops & Drops" segment. Najarian said the stock seems poised to move to the upside. 

U.S. Steel (X) jumped 3%. Adami said it seems like the whole steel industry wants to go higher. 

Amazon (AMZN) fell 1%. Kelly said investors can stay long the stock until investors find its lack of earnings unacceptable. 

Vince Holding Corp. (VNCE) dropped 12%. Finerman is not a buyer of the stock. 

BJ Jenkins, president and CEO of Barracuda Networks (CUDA) , said that when there are high-profile breaches -- such as those affecting Apple, Home Depot (HD) and JPMorgan (JPM) -- then his company sees a pickup in cyber security inquiries. In today's world, cyber security is difficult because of the number of devices consumers have. It is no longer just emails, he added. The company's network, storage and firewall businesses have experienced strong growth, he concluded. 

Adami said Barracuda Networks is a volatile stock with a high short interest. His top picks is Palo Alto Networks (PANW) , although he admitted that Wednesday's price action is somewhat concerning. 

For their final trades, Kelly is buying the Energy Select Sector SPDR ETF (XLE) and Finerman is a buyer of Sun Edison (SUNE) . Najarian is buying Delta Air Lines and Adami is a buyer of Macy's. 

 

-- 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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