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Your Questions About Mastercard, M&A and more...

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Published: Thursday, 12 Apr 2007 | 9:37 PM ET
By:

Web Producer

Question #1: Kristie from Ohio wants to know, with all the M&A buyout activity so strong this year, which retailer do the guys think is a prime candidate to merge or be bought out?

Jeff says that Gap (GPS) is probably the best takeover candidate, but he doesn’t see that happening in the near future. If you really want to go for it, he says, get long on a company like Zumiez (ZUMZ) because their market cap is low enough to be taken over. But even that is still a very speculative bet, he says.

Question #2: Shaun from New York asks: with the huge success of American Idol, the growth of MySpace, and the strength of its broadcast and movie properties, is News Corp. (NWS) would be the best media stock to own heading into earnings?

Face to Face
Answers to your stock questions



Tim likes a lot of the media stocks, especially News Corp. which he owns himself. With an election year coming up, he’s looking to advertising dollars that are going to be spent not just in television, but in places like MySpace as well. There’s a lot of intangibles with new media, and some of the big media companies are better-poised than others.

Question #3: Diego from Miami asks: given all the concerns about credit deterioration, why hasn’t Mastercard (MA) sold off while other companies like American Express (AXP) have?

Mastercard has only been public for a relatively short time, Jon says. He would recommend hanging onto MA stock because it still continues to outperform stocks like American Express. That being said, he wouldn’t buy it at this level.

Question #4: For a special celebrity Face2Face, NHL Hall of Famer Rod Gilbert, the New York Rangers’ all-time leading scorer, wants to know if the guys would recommend getting out of large industrial names like Caterpillar (CAT) or Honeywell (HON) with signs of the economy slowing and earnings just ahead.

The 2006 rally didn’t seem to affect CAT, Guy says, but a slowdown in the U.S. economy may not hurt the company because while the U.S. slows, China surges ahead, and CAT has great exposure in China’s mining industry. The stock has gotten a little ahead of itself at $67, but Guy thinks you could own it scaled down to $62. And Honeywell is a stock he’s loved for a long time. It has a $3 billion stock repurchasing plan on its 52-week high and it has even moved higher with new automotive and homeowner exposure, even as both those sectors remain awful, Guy says.

  Price   Change %Change
GPS ---
HON ---
MA ---
NWSA ---
ZUMZ ---

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 12 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 (SNDK), (NWS.A)
Macke Owns (SWY)
Najarian Owns (ARO), (AMLN), (BRCM), (CAT), (COST), (KSS), (MEDI), (PENN), (AAPL), (TLM), (EDS), (BSX)
For the record:
Strazzini Owned (SNDK), (BRCM) On 3/9/07

 Print
Diego from Miami asks: given all the concerns about credit deterioration, why hasn't Mastercard sold off while other companies like American Express have?
  Price   Change %Change
HON ---
CAT ---
MA ---
NWSA ---
ZUMZ ---
GPS ---

   
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