The Transparency Trade
Find out why more transparency doesn't always mean a better trade!
I think you can be totally transparent and be totally fraudulent, says River Twice Research president Zachary Karabell. Just look at Enron. People who are going to cheat are going to cheat.
And that leads to Karabell's thesis. Just as there are companies that can be transparent but fradulent, conversely there are some companies out there that are worth owning even if they’re not that transparent.
Most are international plays, Karabell adds. I like China Mobile . They’re not being run for the benefit of the stockholder but you can still go along for the ride. I also think Telefono de Mexico, ArcelorMittal , and Gazprom are less transparent but still worth a look.
And domestically, I’d look at Apple , Karabell says. Of course they report so they’re transparent in that sense -- but I consider them less transparent than many in part because you don’t see Steve Jobs on CNBC very much!
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Trader disclosure: On June 20, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Macke Owns (INTC), (MSFT), (WMT), (DIS); Najarian Owns (AAPL), (BHI), (CHK), (ENER), (NOK), (TSO), (XLF), (HPQ); Najarian Owns (MER) Puts; Najarian Owns (MYGN) Calls, (SD) Calls; Najarian Owns (HRB) Puts; Quint Tatro Is The Principal Of Tatro Capital; Tatro Owns (C), (DV), (PETS), (STRA), (ESLR), (GLD), (GLW), (GS), (QQQQ), (RIMM), (SDS); Tatro Capital Owns (SLV), (ASTI); Tatro Capital Owns (USO) Puts; Karabell Owns (AAPL)