Your Questions On the Exchanges, the Homebuilders and more...
Question #1: Kristen from New York wants to know if high-end retailers like Saks (SKS) would be less immune in an economic slowdown than lower-end retailers like Federated (FD)
Jeff Macke loves Saks and likes Federated as well. "If we get a big recession, it’s going to take all the retailers lower. That said, I think both stocks are executing extremely well right here."
Question #2: Recently the Intercontinental Exchange (ICE) made an offer to buy the CBOT Holdings (BOT). With talks resuming next month, Mark from Illinois asks if he should be a buyer or seller of either one?
Eric Bolling recommends waiting it out when it comes to the exchanges. He says there’s so much going on as they all figure out “who is marrying who,” that the best thing to do is let them breathe until late summer, and then he thinks they will all be good buys.
Question #3: Frantz from New York says with such a big downturn in housing market, do any of the guys expect significant pullbacks in the short-term with homebuilders like Beazer Homes (BZH) or CIT Group (CIT)?
Guy Adami said to get out of homebuilders nearly 2 months ago. They’re all down between 18% and 25% since then, but Guy says the time to buy these stocks is nearing – it just isn’t here yet. “Don’t buy them tomorrow,” he says, but he will soon recommend getting long the homebuilders.
Question #4: Ed from Nevada asks via e-mail about the chart for the National Bank of Greece (NBG). There is a real growth story here, he says, and management is forecasting 30% earnings growth for each of the next 3 years.
Tim Strazzini has owned the stock in a retirement fund for years. At the time, he bought it as a European play with non-U.S. dollar exposure. He believes NBG is a great financial institution because it is one of Greece’s very few large regional banks and Greece is a very insular, nationalist country. On top of that, its financials are immaculate with great margins and a great dividend, Tim says. If what management says is true and the bank really expects 30% earnings growth over each of the next 3 years, the stock is well worth the slight premium it trades at.
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On MAR 29, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke Owns (SWY), Strazzini Owns (MO), (NBG), (SNDK), (STM) Bolling Owns (ICE), Gold, Silver, Is Short Natural Gas