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Pops & Drops: AIG, Petrobras...

Published: Monday, 22 Sep 2008 | 6:44 PM ET
Text Size
By: Lee Brodie
Web Editor

Pop & Drop
Following are the day’s biggest winners and losers. Find out why shares of AIG and Petrobras popped while Kraft and General Motors dropped.

POPS (stocks that jumped higher)

AIG (AIG) popped 23%. Shareholders plan to meet and discuss alternatives to a government takeover. – I think it’s more likely they sell off assets, says Tim Seymour.

Petrobras (PBR) popped 2%. Brazil may allow citizens to buy stock in this company with money from individual worker-comp funds. – I’d get long PBR and short Brazil, counsels Tim Seymour.

Fairfax Financial (FFH) popped 25%. The owner of Canadian and US insurers reported strong third quarter earnings.


DROPS (stocks that slid lower)

Kraft (KFT) dropped 5%. In its first day replacing AIG as a Dow component, the maker of Mac & Cheese slid lower. – Kraft was up Friday, reminds Karen Finerman. It’s a wash.

General Motors (GM) dropped 11%. Despite being added to the SEC short selling protection list, the car maker couldn’t rally. – Can you imagine if it wasn’t protected by the ban, says Guy Adami.

TD Ameritrade (AMTD) dropped 18%. The online broker along with its peers retreated amid concerns about the government bailout. – It’s just a pull back after hitting a 52-week high, says Pete Najarian.

American Express (AXP) dropped 8%. The credit-card company headed south along with the overall financial services sector. – They too are on the short-selling ban list, reminds Karen Finerman.

Legg Mason (LM) dropped 7%. Shares slipped after rumors surfaced that the company could go private. – Poor Bill Miller, says Guy Adami. I bet he can’t wait for this year to end.

CarMax, Inc (KMX) dropped 7%. The used-car retailer reported second-quarter profits fell on reduced consumer spending. – They’re in a tough environment, says Pete Najarian.

Sovereign Bank (SOV) dropped 23%. The Philadelphia-based bank received a downgrade from Friedman, Billings, Ramsey citing charges from its positions in Fannie and Freddie and losses on the sale of its portfolio of CDO’s. – Not so good, says Karen Finerman.

Lennar (LEN) dropped 18%. The homebuilder dropped ahead of its earnings report Tuesday, despite receiving an upgrade from Raymond James.

CME Group (CME) dropped 2%. The largest derivatives exchange dropped even after Citi reiterated its ‘Buy’ rating on the company and increased its price target.

Pops & Drops
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Trader disclosure: On Sept 22, 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), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (AAPL) And (AAPL) Puts; Pete Najarian Owns (ETFC), (MYL); Pete Najarian Owns (MS) And (MS) Puts; Pete Najarian Owns (RIMM) Call Spread; Pete Najarian Owns (TSO) Call Spread; Pete Najarian Owns (WB) Put Spread; Finerman Owns (GS); Finerman's Firm Owns (RIG), (PDE), (WM), (MO), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm Is Short (VNO), (WFC), (IYR), (IJR), (MDY), (SPY), (IWM), (BBT), (COF); Seymour Owns (AAPL), (COP), (ETFC), (MER), (TSO); Seygem Asset Management Owns (PTR), (EEV); GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

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