J. CREW SURGE:
The headline: J. Crew (JCG) Earnings After the Bell Spark 8% Surge
The word: Jeff Macke says CEO Millard Drexler is proving himself at the helm of this “good retailer.” And with all good retailers, Jeff says, gas prices didn’t come up in the conference call.
WHEREFORE ART THOU, FOLEO?:
The headline:Palm (PALM) Shares Drop As New Device “Foleo” Draws Bad Reviews
The word: Eric Bolling has nothing good to say about the Foleo either. It’s not a smartphone, it’s not a laptop, the software is weak and it costs $500, he says. While everyone else is designing smaller handhelds, Palm comes out with one that’s too big, Pete Najarian says, exemplifying how out-of-touch the company is with what people want.
TEARS FOR SEARS:
The headline:Sears Holdings (SHLD) Shares Fall On Disappointing Earnings
The word: The conference call blamed the economy and high gas prices, Jeff says, but he isn’t buying it. “This isn’t a retailer. It’s a hedge fund with a terrible rate of return on the retail assets,” he says. Pete thinks CEO Eddie Lampert is the only reason to own Sears.
LIONS AND BEARS, OH MY:
The headline:Lion's Gate (LGF) Shares Plunge, Then Recover On Weak Earnings, Forecast
The word: Guy Adami doesn’t think Lion’s Gate is an earnings story. He likes the studio, with its massive library of films, as an intellectual property play.
A KRAFTY TRADE:
The headline:Kraft Foods (KFT) Shares Spike, Then Pull Back On Rumor Of Buffett Takeover Interest
The word: Buffett or no Buffett, Kraft is a great play, Pete says. It isn’t affected by gas prices because food isn’t something people can cut out of their budget. Kraft declined to comment on the Buffett takeover rumors.
The headline:Pacific Ethanol (PEIX),Aventine Renewable Energy (AVR) Plummet As Bank Of America Downgrades Ethanol Stocks
The word: Eric can’t say it enough: “stay away from ethanol.” People don’t realize that there’s a negative return with ethanol, he says. Corn and natural gas are both needed in its production– and in order to get it to the pump it has to be taken by rail or truck, and that uses oil.
The headline: Incoming AT&T (T) CEO Shows Interest In International Acquisitions
The word: Guy wonders if AT&T is pondering a move with European telecom giant Vodafone (VOD). T is also one of four companies competing for a $68 billion contract with the government, he points out.
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Trader disclosure: On May 31, 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 (ICE), (NMX), Natural Gas, Sugar, Coffee; Najarian Owns (AAPL),(CLF),(DNDN),(MOS)