No. 3 - Out of the Rubble
From Faucets to Furniture to Flat-Panels, All Trades May Not Be Lost Amid Housing Bubble
Picking through the housing rubble, Guy has a strong recommendation on Toll Brothers (TOL). It’s a homebuilder that doesn’t have the same exposure to the subprime contagion because it tends to work in the higher-end of the homebuilding world. Some analysts have come negative on the space, which is a great sign for the homebuilders, he says. The valuations these companies are trading at now are becoming compelling.
In the homebuilding sector, there are parts suppliers that are starting to see some momentum as well. Jon like Fastenal (FAST), which has seen money flowing into it on speculation it goes higher. He think’s it’s going back into the mid- to high- 40’s, and it’s a “screaming buy” at $38.
Tim likes U.S. Gypsum (USG), Roper Industries (ROP) and Harman (HAR) as plays with the parts suppliers. These stocks are on fire because of what they are doing both in commercial and residential building, he says.
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On APR 13 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Najarian Owns (AAPL), (BRCM), (BNI), (EBAY), (EMC), (FAST), (MRK), (MON), (MOS), (NDAQ), (POT), (STM), (STP), (WFT), (PKI), (HAL), (TRA), (T)
Strazzini Owns (SNDK), (STM), (USG), (WMT), (YHOO)
For the record:
Najarian Owned (STP) On 3/9/07
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