The Word On ITT's $100 Million Fine, Beazer Homes Scandal & More
The guys go behind the headlines and give you the traders' take on: ITT's fine for releasing info to China, the Beazer Homes criminal probe, and more. Find out where they see fast money.
The news: iShares Dow Jones Transport Avg. (IYT) moved lower with airline and rail stocks falling on concerns that economic growth is slowing.
The word: Guy Adami thinks transports have room on the downside in part because FedEx (FDX) said that ’08 wasn’t going to be a great year. Guy thinks the IYT will trade down 3 or 4 points.
BIG BEN TOMORROW:
The news: Tomorrow, Fed Chairman Bernanke testifies before the Joint Economic Committee on Economic Outlook.
The word: Eric Bolling says Bernanke will have to address new home sales and calm the markets. Jeff Macke bristles because he doesn’t think Bernanke has to do anything of the sort. He says new home sales are only 15% of the housing market.
FBI'S HOME RAID:
The news:Federal investigators opened a broad criminal probe into lending practices, some financial transactions, and other dealings at Beazer Homes (BZH).
The word: Jeff Macke yells out, "walk away from the home builders – don’t bottom fish."
ITT's FINE DAY:
The news: ITT (ITT) is fined $100 million for releasing its night-vision technology secrets to China. But Department of Justice agrees to suspend $50 million of the payment if ITT develops a more advanced night-vision technology for U.S.
The word: Jeff doesn’t think this will be the last investigation of its kind and warns investors to be prepared. Guy Adami adds ITT is a $100 stock. Don’t run out and buy it tomorrow, but he says it should be on the radar.
The news: After interviewing CKE Restaurant’s (CKR) Chief Executive on yesterday’s Fast Money, the guys wrongly stated that CKE doesn’t do business overseas. In fact, 8% of CKE’s business is international.
The word: Eric Bolling says MCDonald’s (MCD), which he recommended last night over CKE, sells more in Europe than in the U.S. and he still prefers the stock despite the mistake.
TAKE-TWO TAKES A BEATING:
The news: Shares of Take-Two Interactive Software Inc. (TTWO) dropped Tuesday after the troubled video game maker said it is "unlikely" to present strategic alternatives - that had included a possible sale - ahead of its coming shareholder meeting.
The word: Jeff says this is a bunch of noise you get at the top of a cycle. He recommends investors who want to play this space buy Activision (ATVI) and Electronic Arts (ERTS).
GAMESTOP'S NEXT LEVEL:
The news:Top U.S. video game retailer GameStop (GME) reported on Tuesday a quarterly profit and gave a full-year earnings forecast that topped Wall Street targets, sending its shares up as much as 12 percent.
The word: On yesterday Fast Money Eric Bolling recommended GME because his son loves this store. Today the stock is up 11%. On the Fast Line, Eric’s 8-year-old son, Eric Jr. reveals this is the first trade he ever gave his father.
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On MAR 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Strazzini Owns (MO), (T), (VZ), (WMT), Owns Puts in (EEM), is Short Puts in (AUY). Bolling Owns (ICE), (NMX), Natural Gas, Gold, Silver, Soybeans is Short Corn. Macke writes for Minyanville.com