After Hours Deal:
The headline: Google Buys Web Advertiser DoubleClick For $3 Billion
The word: Jon Najarian, sitting in for Eric Bolling, recommends buying Google (GOOG) even though they’re “spending money like a drunken sailor.” The private equity firm Hellman & Friedman, which owned Doubleclick, bought it for $1.1 billion two years ago, and just made $2 billion off the deal. Tim Strazzini says this deal proves that advertising is becoming truly important on the internet. The web is now a legitimate industry, he says, and will become as important as television, at least, in the next ten years.
Merck’s Heart-Pumping Week:
The headline: Merck Shares Soar As Earnings Outlook Overshadows Heart Drug Rejection
The word: Guy Adami thinks Merck (MRK) is headed to $60. He says it should be noted that today was it’s 52-week high and the stock traded at 5 times what it usually does. He would own the stock on a dip. Tim says it’s a good play to selectively buy pharma after this huge week, but Merck was a standout on its own news. Jeff Macke is bullish, too, saying it’s under-owned.
Big Mac, Low Dollar:
The headline: McDonald’s, Multinationals Benefit As Dollar Hits Two-Year Low
The word: McDonald’s (MCD) is growing insanely fast in Europe and Asia, Jeff says, and it helps them to have a weak dollar in their back pocket. He thinks this stock goes even higher. On the multinational trade, Jon wants to own PerkinElmer (PKI), a company that makes scientific instruments that test biofuels. PKI is 55% exposed to overseas markets, he says.
The headline: Chip Shares End Week Flat As Samsung Reports Worst Profit Drop In More Than A Year
The word: Samsung is 40% of the chip market and they said they are moving production into flash, which is huge for Sandisk (SNDK), Tim says. "If Samsung does this, its because they see a cyclical shift in the market ... It should speak to the whole industry that they see a bottoming in demand in the consumer electronic industry."
Rail Rally Wrap-Up:
The headline: Burlington Northern (BNI), Rail Shares Surge Into Earnings Next Week On Buffet Buy
The word: You could trade for 100 years and not see a rail move like we saw this week, Guy says - up 5% Monday, down 5% Tuesday and Wednesday collectively, up 5% Thursday, and now down 1.5% today. Guy thinks the rails have gotten ahead of themselves. He loves the space, but thinks they could be bought cheaper. Tim says this is a case of multiple expansion that will take the space higher eventually. It doesn’t just last a week; it’s more of a long-term shift, but the sector has the balance sheets and pricing power for it. He thinks consolidation is likely as well.
Miners, Refiners, Early Bird Diners:
The headline: Shares of Miners, Refiners, Retirement Homes Surging
The word: Jeff loves all these spaces and says there’s more good news to come. Think M&A, he says, which Wall Street loves to hear.
The headline: Heavy Options Trading In Oil-Services Firm WFT
The word: Jon says the rumor is a takeover bid from Halliburton (HAL) and there’s been explosive trading on that. Volume is “undescribably delicious” if you long the stock, he says. It typically trades 3,000 contracts a day and traded 14,000 at one point today.