After Hours Action: Morgan Stanely, Sandisk
AFTER HOURS ACTION: SANDISK
Flash memory maker SanDisk has rejected a takeover bid from Samsung Electronics valued at $5.85 billion, or $26 a share, which the world's top maker of memory chips made late Tuesday.
Analysts said if the acquisition were to happen, it could shift the balance of power in the flash memory industry away from Toshiba.
How do you trade the news?
Plenty of companies have money on the balance sheet, observes Karen Finerman. I expect to see more M&A. For example Roche is making a bid for Genentech . But in this environment those trades are best left to the pro’s. I think home investors should stick with tried and true plays such as long Philip Morris, she counsels.
Don’t chase M&A, exclaims a disgruntled Jeff Macke. The way to trade this tape is with Wal-Mart, McDonald’s and Procter and Gamble. Go with the names that put you to sleep.
Or look at Hewlett- Packard , adds Pete Najarian. It hasn’t dipped enough for me, yet, but around $45 it’s a buy.
I like Jeffries, adds Guy Adami. And also look at Target . Both stories are working, he says.
AFTER HOURS ACTION: MORGAN STANLEY BEATS ESTIMATES
Morgan Stanley, announcing quarterly results earlier than expected, reported a profit that declined slightly but blew past analysts' earnings expectations as the No. 2 investment bank attempted to show that it's withstanding the financial turmoil that has dramatically changed the face of Wall Street over the past few days.
Excluding items, the investment bank said it earned $1.41 billion, or $1.32 a share, on sales of $8.05 billion in the third quarter.
Meanwhile, Goldman Sachs aid quarterly profit plunged 70 percent as the worst market slump in decades led to weaker-than-expected revenues, knocking the stock to its lowest level in nearly three years.
Still, it was more than analysts predicted, and the investment bank beat expectations.
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Trader disclosure: On Sept 16, 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 (MSFT), (WMT), (UUP): Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman's Firm Owns (DVN), (GE), (MSFT), (NOK), (SUN), (TSO), (VLO), (PM); Finerman's Firm Is Short (XLF), (IYR), (IJR), (MDY), (SPY), (IWM); Finerman's Firm Owns (DNA) Calls ; Najarian Owns (AAPL) And (AAPL) Collar; Najarian Owns (AIG) And Is Short (AIG) Calls; Najarian Owns (MS) And (MS) Put Spread And Is Short (MS) Calls; Najarian Owns (NOK) And Is Short (NOK) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TSO) Call Spread; Najarian Owns (WB) Put Spread; Najarian Owns (WM) And (WM) Puts; Najarian Owns (XLF) And (XLF) Collar
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