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Fast Money DisclaimerFast Money BiosAbout Fast MoneyRapid RecapFast Money Home
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Jun.08
8:38 PM ET
Friday, 8 Jun 2007
Could You Pass This Test?

On "Grade the Trade" we test the trading prowess of some of the most promising business students in the nation. This week they’re from Texas Christian University, University of Miami, University of Southern California and University of San Diego.

Get ready – school’s in session.

Our business school students have been given the questions in advance, and have 30 seconds to answer.

Grad #1: Lauren from the Neely School of Business at Texas Christian University.

Lauren is a member of the William C. Conner Educational Investment Fund.

Here’s the scenario: Coke (KO) and Pepsi (PEP) decide to follow Jones Soda’s (JSDA) lead and switch from high fructose corn syrup to pure cane sugar in all of their sodas. What are you buying, what are you selling as this scenario unfolds?

Lauren says she’s neutral Pepsi because of their larger product base but selling Coke because sugar is more expensive. She’s also shorting high-fructose syrup producers such as Archer Daniels Midland (ADM) and Corn Products International (CPO) and she’s buying sugar suppliers such as Imperial Sugar (IPSU).

Jeff Macke gives Lauren an “A” and says the only thing he might add is a long position in General Mills (GIS).

GRADE THE TRADE - LAUREN
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Grad #2: Tom from the University of Miami School of Business.

Tom is president of the Finance Club and founder of the MBA Golf Club.

Here’s the scenario: At the G8 today, the Japanese Finance Minister expresses a desire to diversify the country’s foreign reserves. What are you buying, what are you selling as this scenario unfolds?

Tom is shorting the US treasuries and the dollar. He’s buying the iShares FTSE/Xinhua China 25 Index (FXI) and Direxion Emerging Markets Bull 2.0X Inv. (DXELX) among others. And he’s buying PetroChina (PTR).

Tim Seymour gives Tom a “B+” telling him he should buy gold and no need to sell treasuries.

GRADE THE TRADE - TOM
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Grad #3: Eric from the Marshall School of Business at USC.

Eric graduated college with a double major and minor and a member of the USC Vocal Jazz Ensemble.

Here’s the scenario: A rare disease is found in a series of cows in the Midwest, requiring elimination of 20% of cattle. What are you buying, what are you selling as this scenario unfolds?

Eric is shorting grain and long live cattle. He’s also selling Dannon (BN) Dean Foods (DF), Tyson (TSN) and Hormel (HRL) as well as McDonald’s (MCD) and Burger King (BKC). He’s buying pharmaceutical names such as Merck (MRK).

Pete Najarian gives Eric a “B” because he wanted to see more futures.

GRADE THE TRADE - ERIC
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Grad #4: Paul from the University of San Diego School of Business Administration.

Paul earned a J.D. in 2006 and is a proud native of Australia.

Here’s the scenario: Disney (DIS) announces it will release major motion pictures simultaneously with DVDs. What are you buying, what are you selling as this scenario unfolds?

Paul is buying Apple (AAPL) for its licensing agreement with The Mouse; also Juniper (JNPR) and Akamai (AKAM). And he’s selling movie theaters such as Carmike Cinemas (CKEC).

Guy Adami gives Paul an “A”.

GRADE THE TRADE - PAUL
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Got something to say? Send us an e-mail at and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to .

Trader disclosure: On June 8 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), (BTU), (NFLX), (.VIX) Seymour Owns (AAPL), (EWZ), (GLD), (EWZ), (GLD), (VIP, (MTL), (X), (TWX, Gazprom,) Red Star Asset Management Owns (MBT), (MTL), Gazprom ,Lukoil,,Severstal; Red Star Asset Management Is Short (EEM); Red Star Asset Management Is Short (WBD); Coronat Capital Management Owns (SNE)


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