Question #1: Megan from Ohio asks which low end retailers might see a boost off $3 gasoline?
Jeff Macke says the short answer is that no retailer benefits from high gas prices. However, there’s a play with the grocers because they compete with big retailers like Wal-Mart (WMT), which people generally have to drive further to get to. Driving further to get slightly lower prices works when gas prices are low, Jeff says, but when the price at the pump is $3, you can expect consumers to stay local. He likes Safeway (SWY) and Supervalu (SVU).
Question #2: Sandy from New York asks if given the relative outperformance of Mastercard (MA) to American Express (AXP), would the guys look to take profits in Mastercard and swap into American Express?
Eric Bolling recommends sticking with both. With everyone paying by credit now, there’s no harm in owning both of these stocks, he says.
Question #3: Ed from Las Vegas is asking about Tata Motors (TTM). It’s an automotive company in India that just had an 11% increase in shipments in April. With such a gigantic population to sell to, is this a stock to watch?
Tim Strazzini says Tata Motors, which builds low-cost light trucks and cars, is the envy of a lot of the higher-cost American automotive manufacturers. However, he has concerns about an overheated economy and inflation in India – as well as huge competition coming from Toyota (TM) and Volvo (F). Tim is concerned. He wouldn’t recommend Tata just based on the competition that’s on the way.
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On May 3, 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 (JBLU),(VZ); Bolling owns (DIS), (TSO) Puts,
NBC Universal Is The Parent Company Of CNBC Trader disclosure: