Sector summary from Google finance June 11, 2007

Fast Money Recap June 8

• Classic Friday reversal
• Expect the market to be up or down 100-200 points
• Nothing has fundamentally changed this week
• Chip stock exploded: NSM, KLAC, AMAT, XLNX
• NVDA might be acquired or do a joint thing with INTC
• After the news about possible merger/acquisition of X, look for stock that have been underperforming e.g. RYI, MTL
• Trades on weaker Yen include SNE, TM
• Gold plunged 4%
• Stick with winners, which opened higher yesterday but sold off, they recovered today what they lost yesterday
• Among Russian companies Lukoil and Gazprom are buy
• Over the past few weeks emerging markets have become better plays than before and development markets have slipped
• Next week brokers are starting earnings announcements, Monday morning start buying investment banks, ride upto GS earnings and sell on the eve of GS earnings (according to Cramer don't buy if bond yields remain above 5%)
• Scenario: Coke and Pepsi decide to follow Jones Soda's lead to switch from high fructose corn syrup to pure cane sugar. Buy and sell: Neutral Pepsi because of their larger product base, but sell Coke because this will have a negative impact on their cost structure as sugar is not only more expensive but it also takes more amount to get the same level of sweetness, sell HFCS producers like ADM and Corn Products International, which get 18% sales from beverage companies, buy sugar suppliers like Imperial Sugar in US and a Brazilian company called Cozi N SA ??, they are the largest suger processor in the world and will greatly benefit from this trend: Grade A, additionally a long position on General Mills because they already raised prices due to high price of corn
• Scenario: The G8 meeting concludes and the Japanese finance minister expresses a desire to diversify the country's foreign reserves. Buy and sell: Japan will be moving money out of the US treasuries, so go short the US treasuries, it is going to put a lot of pressure on the dollar so go short the dollar index, where are they going? they are going to China, China is investing in Black Stone Group, so Japan will follow suit, buy FXI, DXELX, also PTR. Grade B+, when diversifying from dollar, at least go into gold, treasuries are a long term trade so don't need to sell
• Scenario: A rare disease is found in a series of cows in the midwest, requiring the elimination of 20% of our cattle. Buy and sell: short grain, short Danon, Dean Foods, Tyson, on retail side short McDonald, Burger King, Ruth Chris. Grade B, include futures in the trades
• Scenario: Disney comes out and says that it is going to release major motion pictures simultaneously on DVDs. Buy and sell: This is a milestone on the way to the direct delivery of digital media to the end user, so buy Apple becuause it has licensing agreement with Disney to distribute content online, second also buy Juniper and Akamai, since online delivery of digital media will increase the demand for storage and network capacity significantly, sell weak video chains. Grade A
• GILD was recommended last week but it had a couple of downgrades, GA still likes it
• CLF was recommended by PN, stock is down, he wasn't to stay long but suggested buying put for protection
• JM recommended selling PALM because he didn't think there is going to be a buyout, he still recommends to stay away
• Final trades: MBT, short EEM, TIVO, MS
  

Sector summary from Google finance June 8, 2007

Fast Money Recap June 7

• Today the indices were up for the first 1 hour but then they just rolled over and kept going down all day
• Tomorrow markets will most probably open higher but if selling starts it will be similar to today
• DOG, SDS are short ETFs on Dow and S&P respectively
  
• Get out of XLU and look for a lower entry point or when market is better
• Telecom sector is affected by interest rates so wait
• There is a buying opportunity to get into Banks especially GS
• Get out and stay away from homebuilders
• Commercial REITs like PSA might be a good play
• Both S&P and NASDAQ are sitting at 50-day MA. Support on S&P is 1470-1490. Nasdaq 100's first support level is 1880 and the second is around 1740.
• Use rallies to sell
• Stocks going on sale: MSFT, JNJ ($60 bottom), DVY, PID, MS, GS
• Have to own AAPL, T, GOOG, BIDU, NVDA, AMD
• 
  

Fast Money Recap June 6

• Probably continued selling tomorrow
• Opportunity to go long would porbably be next week
• HPQ, BA, LMT are great names
• Today's WMT action was bullish
• Beating the tape: AAPL, NFLX, PGR, X
• YZC is a coal company in China
• USO is a play on global oil turmoil
• Final trade: ATVI, PGR, BAC, GOOG

Fast Money Recap June 5

• Movie studios are willing to release movies on DVD and VoD. Cable providers like CMCSA and DISH stand to gain. Also Disney, Viacom and NBC will benefit.
• GOOG reached all time high today. Its a buy. There are rumors of split. BIDU is also growing at astronomical place.
• Ahead of Thursday some retail plays are JOSB, GYMB, PLCE, CWTR.
• The economy might have bottomed in the first quarter but the earnings forecast hasn't changed. So there are probably going to be a number of surprises.
• Stock to benefit from growth in Japan include NTDOY, TM.
• Global construction boom well under way and JEC a way to play that.
• Final trades: ATVI, FWLT, DFJ, VMC.

Fast Money Recap June 4

• Despite 8% drop in Chinese market, Chinese ADRs listed on US markets performed well e.g. HMIN, primarily because they are tied with liquidity in US.
• Great stocks to buy CTRP, BIDU, CHL, JOYG (coal mining equipment maker).
• WMT is a buy.
• One way to make money from the bid for Dow Jones by Rupurt Murdoch is to buy a straddle (Call and Put together) but since so many people are betting on it, the options are extremely overpriced. Instead a better way would be to short the stock, as there is an upside of 5% or so expected now and if the deals falls through the downside is around 30%. Upside call can be used to hedge risk of the stocks further upward movement.
• There has been unusual options and stock activity in HOT, WYN and today same happened in MAR.
• Nat Gas is a buy showing inverted head and shoulder pattern and possibly on its way to $11.
• 3 trader out of 4 are buyers of AAPL due to the iPhone release. Most agree that PALM is a sell.
• IBM has slashed 3,700 jobs, announced $15b buyback, raised quarterly dividend by 22% and it is up 11% since April 24. But there is no organic growth. Selling bond to finance buyback.
• Airline stocks sold off in the wake of foiled JFK aiport plot. OSIS is growing at 30% annually. CCJ and SU are play on energy requirement if something unimaginable happens.

Fast Money Recap June 1

Will post later.

Fasy Money Recap May 31

We should be bullish on technology as capex spending has been week for past 2 years and companies need to spend on technology to stay competitive. The numbers of the tech companies might not get affected for next 2 quarters. AAPL and GOOG have low forward P/E. On the other hand CELG trades at 333 P/E, GENZ at 429 and ERTS at 129. Tech is wildly under owned. People will get back in big hurry. The market action in DELL has been encouraging today. It is not a bad company and is set to trade at $30. People need to get out of the short side. The Ultimate tech play of the decade is GOOG. There is a lot of user generated content out there and ADBE is one of the ways that is being done. AAPL and ADBE look fantastic on the charts. Also RIMM is great on technical basis.

Retailers to own (which do not whine about gas prices) include TIF - benefiting from weak dollar, SKS - destination for Europeans, COH and RL. Also included in the list are NILE and LVMH.

Some small cap and lightly traded biotech stocks to watch PARD (colon and lung cancer drug), GPCB, PHRM and SPPI (developmental drug for prostrate cancer). BIIB is a takeout candidate.

JCG surged 8% in after hours trading. PALM released Foleo which is neither a handheld nor a laptop. Instead it is a big device which nobody on Fast Money likes. LGF is not an earnings story instead it is a studio, massive library of films, and intellectual property play. KFT is play on food. Ethanol stocks are a wreck and downgraded by BAC, this includes PEIX and AVR. They have negative ROE. T's CEO showed interest in international acquisitions.

CLF has moved higher over one week especially today. It is still a buy due to take over and also businesses. PCP was added to S&P500 today, hit 52-week high and is a buy.

Fast Money Recap May 30

S&P 500's record breaking climb, is this just a number or there are more meaningful implications? According to Eric Bolling, its not time for a correction yet, S&P P/E is cheap, but he hopes to see a correction soon. Pete Najarian said XLF has been strong, financials have been winners trading towards 52 week high including GS, MER, LEH, AXP, BAC and C. They are printing money along with exchanges, because this is still an untapped area. Trading in China is strong, some numbers show 250,000 to 300,000 account openings a day. Jeff Macke said that these sectors generally lag but they are climbing higher and bears are getting completely annhilated. There probably won't be a healthy correction and it will keep going higher until the bubble will burst. A strong market bear Doug Kass has lately turned bullish and this is being considered a sign of the upcoming upside. Today the market was down till FOMC minutes came out saying Q3 and Q4 are going to be good. The market continues to look for reasons to buy with breakouts in GOOG, AAPL and GS.

Since 2002 XLY (Energy) is up 207%, XLU (Utilities) is up 172%, XLB (Materials) is up 144% and XLK (Tech) is up 122%. The first 3 are still buy. Pete Najarian added OIH for those who want to get oil services exposure.

Best way to trade China could be GSOL, BIDU and CHL. Volitility has come down a lot in these stocks causing the options to be really cheap. The puts on these stocks could be used to hedge risk in Chinese market.

Macke thinks AAPL is going higher to $130, while according to Najarian Morgan Stanley has set target of $150. According to Adami there will be consolidation in the retail investment firms to 2 to 3 players. Najarian suggested that this is apparent from options activity in AMTD, ETFC and OXPS. About GS Adami said that it is set to earn $26 this year and with 10x forward earnings has a target of $260. Najarian considers DNA very cheap and also likes AMLN because diabetes is not going away. Bolling still likes TSO and POT

Final trades are MSFT and NTDOY.PK for the digital revolution, CBH, which has unusual call volume, EMC, which is up past few days despite other network storage like NTAP moving down and BUCY which is a minig stock.