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Tomorrow's Playbook: Wal-Mart, Sony & More

Sunday, 17 Feb 2008 | 2:49 PM ET

#1 - REALLY ROLLING BACK PRICES

Wal-Mart (WMT)
shares rose above the rest of retail ahead of earnings Tuesday. Will lower prices for cash-strapped consumers drive shares higher?

Next Week's Trades #1
Lower prices for cash-strapped consumers are likely to drive Wal-Mart earnings higher, with the Fast Money crew.

I think WMT will kickoff a series of awful reports from America’s retailers, Jeff Macke says. Best Buy (BBY) tipped us off to that, already. However, I also think investors can get long WMT because the company has gotten much better.

I’m happy to be long WMT, adds Karen Finerman. Recessions are all about price and no one controls prices better than this retailer.

I think Wal-Mart is attractive on valuations, says Guy Adami. It could have turned the corner. Also watch Hewlett-Packard (HPQ) which comes out after the bell Tuesday, he counsels. It also has attractive valuations.



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HPQ
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WMT
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#2 - EATING AT HOME

Shares of Heinz (HNZ) and other food makers are jumping while casual dining chains like Chipotle (CMG) struggle. Is there a trade as people stop eating out?

Some of the growth in food stocks is coming from sales overseas, explains Karen Finerman. They have growth and they are also benefiting from a tailwind in the dollar.

I love what Campbells (CPB) is doing in Russia and China where they are number #1 and number #2, respectively, adds Tim Seymour.

Next Week's Trades #2
Food makers are jumping as casual-dining chains struggle, with the Fast Money traders.

Look at Hormel (HRL) , says Jeff Macke. Spam sales are through the roof, he exclaims. And I like Heniz, too.



  Price   Change %Change
CMG
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CPB
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HNZ
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HRL
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Look at Hormel (HRL) , says Jeff Macke. Spam sales are through the roof, he exclaims. And I like Heniz, too.



#3 BLU-RAY BREAKOUT THIS WEEK

On Friday Wal-Mart (WMT) joined NetFlix (NFLX) and Best Buy (BBY) in supporting Sony's Blu-Ray format of HD DVDs. Why is Blu-Ray better?

Michael Lynton, is the Chairman & CEO Sony Pictures Entertainment. Following is a synopsis of his main points.

What does Wal-Mart’s decision mean to your success?

“It looks as though we’ve established a format for the industry,” replies Lynton, “and Wal-Mart’s support is invaluable in this effort.”

How are you maximizing synergies at Sony?

“There’s a lot more cooperation within the Sony companies than I’ve ever seen in the past,” replies Lynton. “We’re working actively with the electronics side, the computer electronics side and more. The company works really well together.”

Are you relieved the writers strike is over?

“It was pretty clear that it had to be resolved,” says Lynton. “It hadn’t effected our film slate, but it had impacted our TV schedule.”

Will the way TV shows get made change because of this strike?

“This year the pilot season will be abbreviated,” replies Lynton, “but I don’t think there will be a fundamental shift in the way shows are made. But that really lies in the hands of the networks more than the studios.”

Traders, would you buy this stock?

I’ve been a critic of Sony (SNE) says Jeff Macke. But future opportunities are enormous. Maybe take a tentative step in their direction, he counsels.

Next Week's Trades #3
Discussing the Blu-Ray breakout this week, with Michael Lynton, Sony Pictures chairman & CEO and the Fast Money team.
  Price   Change %Change
ORLOVS1
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NFLX
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WMT
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______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Feb.15, 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 (YHOO), (INTC), (ATVI), (HAS), (DIS); Finerman Owns (GS), (KFT); Finerman's Firm Owns (MSFT), (MO), (SKS), (TSO), (VLO), (WMT), (YHOO), (BR); Finerman's Firm Is Short (SPY), (MDY), (IYR), (IWM), (IJR); Finerman's Firm And Finerman Own (CROX) And (CROX) Options; Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Seymour Owns (DELL), (INTC), (MER); Seygem Asset Management Owns (GFI)

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NFLX
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6758.T
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HRL
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CPB
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CMG
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HNZ
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HPQ
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WMT
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