No. 3 - Dealmaking Not Dead Yet?
Not everyone subscribes to the market gloom and doom. Predictions of M&A's demise last week might be a tad premature says one trader on the Fast Money desk. With balance sheets in the best shape in years, Corporate America may pick up the merger slack left behind by private equity firms hampered with higher borrowing costs. Pete Najarian has the lead on this trade.
Pete Najarian says deals are getting done. He explains Roche (ROG), Rural Cellular (RCCC) and many other companies are all involved in M&A activity this week.
He adds that some companies might be turning down offers, but the offer itself suggests to him deals are out there.
Guy Adami adds companies such as Honeywell (HON) are adding stock buybacks because they have great balance sheets. Strong balance sheets are another sign, says Guy that deals could get done.
On a related note, Jeff Macke says Nelson Peltz might be looking to buy more shares of Wendy’s (WEN) and the speculationis sending shares 10% higher after hours. Jeff says if you own this stock, take profits now.
Trader disclosure: On July 30th 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 (JWN), (INTC); Najarian Owns (UA), Bolling Owns (XOM), Gold; Bolling Is Short (FXI); CNBC Is A Service Of NBC Universal And Dow Jones