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No. 3 - Polo Falls Off Horse

The Polo player was seemingly thrown off his horse Wednesday. Shares of Polo Ralph Lauren (RL) dropped 13% as sales disappointed Wall Street. There's been some discussion on Fast Money over the past few weeks about betting on companies that cater to the rich in the face of credit concerns and higher oil prices. Does Ralph’s poor earnings throw a wrench into that line of thinking?

Jeff Macke still thinks some companies that cater to the rich are smart trades. He says the play is getting long Coach (COH) on the current dip. Shares of Coach were dragged down by weakness in RL, he says.

Jeff also likes Tiffany & Co (TIF) and Saks (SKS).

On a related note, Jeff warns the panel to avoid companies such as Liz Claiborne (LIZ) and Jones Apparel (JNY) because they do a lot of business with department stores and their margins are getting squeezed.

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Trader disclosure: On Aug 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 (GS), (MEDX),(NMX, (BMY); Bolling Owns (ICE), (NMX); Bolling Is Short (FXI) But Is Bullish Long-Term; CNBC Is A Service Of NBC Universal And Dow Jones

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SKS
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