The Fast Money Misfires
Sometimes a stock is hot and other time it just burns. Following are the Fast Money misfires
On October 25th The Negotiator put in his bid for Sotheby’s (BID), a prestigiousauction house. He said, "It's a wealth trade. It's a global wealth trade. It's not just Wall Street types, there’s Russian money, there’s Chinese money, there’s Saudi money….”
But shares of Sotheby's were hammered this week. They’re down 8%, after disappointing results from a recent auction forced the company to buy art that it otherwise, could not sell.
Guy Adami still thinks the global wealth story is in tact but Sotheby’s was the wrong way to play it.
On October 2nd The Chairwoman thought that fashion would fly at a discount department store. At the time she said, "We like Kohl's (KSS). We like the management and we like some of the balance sheet restructuring. Plus they have some new initiatives. Get long Kohl's."
But the stock has taken a big hit. It’s down almost 20% since the call in part because the store posted disappointing same store sales for October.
Karen Finerman explains that she still owns this stock as a long term investment, however she admits she got in too early.
On Tuesday The Pit Boss bought the bull-ishness of tech boss John Chambers. At the time Najarian suggested that Cisco (CSCO) was a buy and said, “Everyone who’s in the global growth space is doing very, very well. John Chambers pounded the table last quarter saying how big the growth is. I didn’t think he was BS-ing. I think he was right on.”
But after an earnings call Thursday, not only did the stock drop, it took the rest of the tech sector with it.
I’m still holding onto the Cisco shares I own, says Pete Najarian but I wouldn’t pile on, either.
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Trader disclosure: On Nov. 9, 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 (C) Options, (CSCO) Options, (GOOG) Options, (GS) Options, (XLF) Options (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD), (KALU); Finerman's Firm Owns (WMT), (BEAS), (KSS); Finerman's Firm Is Short (LEH), (MBI), (SPY), (IYR), (IJR), (IWM); Finerman's Firm Owns (BIIB) Options; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Seygem Asset Management Owns (AAPL), (CSCO), (EEM), (F), (GLD), (MER), (SBUX), (X), (YHOO), (MSFT),Gazprom