#1 – Searching For Answers
Uncertain investors are looking to the Yahoo! (YHOO) board meeting next Friday for answers to the Microsoft (MSFT) bid. Will Yahoo accept or fight?
Even if there’s no other bidder, I think there’s potential for YHOO to get a higher bid just to get the deal to go through, says Pete Najarian.
I own YHOO says Karen Finerman. In my experience the first bid is never what you end up with. Yahoo is defenseless. And I’m long Microsoft too.
I think MSFT at $29 is cheap, says Guy Adami.
Amen to that, Macke adds.
Amen to that, Macke adds.
#2 - The Japan Scenario
Comparisons between the US financial crisis and Japan's '90s slump abound ahead of G7 meeting in Tokyo. Can you trade it?
Japan waited about 2 years too long to lower interest rates, says Guy Adami, and the consequences were severe.
I think the Fed knows that and I expect they will remain aggressive with interest rates. If I’m right it should set up a great third and fourth quarters for US banks. Put Wachovia (WB), Citigroup (C), and Bank of America (BAC) on your radar, Adami counsels.
#3 – A Short In The Arm
What's the drug trade ahead of Schering-Plough earnings Tuesday before the bell?
Brian Schaeffer, Managing Director at VDM Capital joins the panel for this conversation. Following is a summary of his main points.
I think big cap pharma is a relatively safe place for your money if the economy slides into recession,” says Schaeffer.
In the space I like Pfizer (PFE), Schaeffer says, which was beat up pretty badly in 07' because of a depleted pipeline. This year I’m optimistic that their HIV studies could yield some effective new drugs. And I like their dividend.
I agree says Pete Najarian. I also like Pfizer (PFE), however I think they need to make an acquisition.
Schering-Plough (SGP) reports next week, adds Schaeffer, and there aren’t a lot of expectations after the disappointing results from the Vytorin and Zocor studies. I think it’s trading at a very attractive multiple however their yield is the lowest in the group.
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Trader disclosure: On Feb.8, 2008, 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 (INTC), (YHOO), (DIS); Najarian Owns (AMR), (C), (CSCO), (EBAY), (MCD), (MS), (MSFT), (XLF), (YHOO), (BIIB); Najarian Owns (FRE) Puts, (AIG) Puts; Najarian Owns (CNET) Calls, (AAPL) Calls, (NWA) Calls, (SKS) Calls; Finerman Owns (GS); Finerman's Firm Owns (GE), (JCP), (MSFT), (SKS), (WMT), (YHOO), (AAPL), (MO); Finerman's Firm Is Short (IWM), (IJR), (IYR), (MDY), (SPY), (COF); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (CROX) And (CROX) Calls, ; Finerman Owns (CROX) And (CROX) Calls; Finerman's Firm Is Short (RTH), (SPG), (TCO); Schaeffer Owns (PFE), (DHR), (GE)