The Media Trade
Recession fears are sparking concerns about the media sector. Both Goldman Sachs and Sanford Bernstein issued negative notes Wednesday. Is there a trade?
On CNBC’s “Closing Bell”, Julia Boorstin explains that Goldman Sachs reduced estimates across communications, media and entertainment saying these economically-sensitive sectors will be dragged down by the recession it forecasts this year.
Meanwhile, Sanford Bernstein says despite the industry's underperformance -- economic concerns portend more problems.
Can you trade it?
We’ve been short Disney (DIS), Gannet (GCI) and McClatchy (MNI) explains Jon Najarian. but now we’re out.
I recommend keeping an eye on Gannett because on Tuesday the stock experienced a 4% sell-off. Historically that's happened 11 times and typically the stock has rallied significantly over the next 18 days after the sell off.
I don't own it , yet but I think that stock should start to move higher.
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Trader disclosure: On Jan 9, 2008, 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), (MSFT), (MCD); Najarian Owns (AIG) Options, (CFC) Options, (VLO) Options, (WM) Options, (YHOO) Options; Finerman Owns (GS); Finerman's Firm Owns (DSW), (PLCE), (SKS), (WMT), (YHOO), (AEO),(CROX); Finerman's Firm Owns (MSFT) Options; Finerman's Firm Is Short (IYR), (IJR), (IWM), (SPY), (SPG), (TCO); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Seymour Owns (AA), (AAPL), (CFC), (ETFC), (INTC), (MBI), (MER), (MSFT), (SBUX), (YHOO), (CSCO), (TIE); Seygem Asset Management Owns (EWZ), (EWT); Seygem Asset Management Is Short (PBR)