Your Questions About Grocers, Banks and more

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Question #1: Brent from New York has a question about the grocers. Grocery stocks like Safeway (SWY) and Kroger (KR) have been on a tear the last year with gains of 50% or more. Is there further upside potential in this sector?

Jeff Macke thinks Brent can be long the grocers. "That’s a great way to be involved with retail right now," he says. He particularly likes Safeway and Kroger, and adds stay away from Whole Foods (WFMI).

Question #2: Tayler from Ohio asks, with the flat yield curve, would the guys look to get out of regional banks like Fifth Third Bank (FITB) and into large money center banks like JP Morgan (JPM) and Citigroup (C)?

Tim Strazzini prefers the money centers like JP Morgan and Citigroup, with Morgan Stanley (MS) coming in a close third. Of the regional banks, Tim happens to be bullish on Fifth Third Bank, but that’s one of the only names in the regional space he would own.



Question #3: Margaret from New York wants to know which companies might benefit from the modernization of American refineries.

Foster Wheeler (FWLT) is where you need to be, Eric Bolling says. It has plants that use innovative technology and it also upgrades refineries. He also likes Flowserve (FLS) and Fluor (FLR) in the space.

Question #4: In a special Celebrity Face 2 Face, Tony Potts, co-host of Access Hollywood, asks if the guys can convince him why he should not invest in real estate, because he thinks it’s the way to go.

Guy Adami was going to give Tony some statistical analysis of price-to-earnings and price-to-book ratios, but he’s got another tactic.

When Potts played in the McDonald’s All-American Celebrity Basketball Tourney back in February, he scored 14 points and 8 rebounds and his team won the game, 40-21. Potts was actually named MVP of the game, even though he played alongside star athletes like LaDainian Tomlinson and Reggie Bush.

Symbol
Price
 
Change
%Change
SC0Y
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FITB
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FLR
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FLS
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FWLT
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KR
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SWY
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If that can happen, then even real estate can higher, Guy says.


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Trader disclosure: On May 10, 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 (CBS), (HLT), (MER), (WMT (JBLU), (YHOO);Bolling Owns Gold, Silver Bolling Is Short S&P Futures, Bolling Is Short Nasdaq Futures Gartman Is Short (NUE), Gartman Is Short (BG)