No. 2 - Wall Street Misers
Even with a bull market raging on, corporate America is still making like Ebenezer Scrooge when it comes to sharing the wealth with shareholders. Exxon Mobil (XOM),Microsoft (MSFT), Pfizer (PFE) and Cisco (CSCO) are all sitting on more than $20 billion, individually. Shareholders need to start demanding they put this money to work or return it. So which stocks should you buy in anticipation of that?
Eric Bolling says energy stocks are cheap. He thinks investors should buy this sector regardless of whether they pay a dividend or not. He likes Apache (APA), Chevron (CVX) and Exxon Mobil (XOM).
Guy Adami says look for Pfizer (PFE) top make an acquisition. He thinks Biogen (BIIB) is a potential target.
Jeff Macke says investors are pressuring Bill Gates to put cash to work and that’s bullish for Microsoft.
Pete Najarian adds that until MSFT made an acquisition (aQuantive), the stock did not move.
Najarian also thinks there’s a political angle. He says with an election coming, companies will be reluctant to declare a dividend until they’re sure of the tax implications.
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Trader disclosure: On May 21, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
Bolling Owns (DIS), Gold, Silver, Coffee, Sugar; Bolling is Short (FXI) Najarian Owns (AAPL), (GS), (OXPS), (CME), (BOT)