Pops & Drops: Palm, Walgreens...
Following are the day’s biggest winners and losers. Find out why shares of Palm and Nomura Holdings popped while Simon Property Group and Walgreens dropped.
POPS (stocks that jumped higher)
Distribucion Y Servicio D&S SA (DYS) popped 25%. Chile’s largest grocer popped after Wal-Mart made a $2.7 billion bid for the company. – I think it’s a great acquisition, says Tim Seymour.
Standard Pacific Corp (SPF) popped 9%. The nation’s 11th largest homebuilder confirmed that it is in preliminary discussions with bankrupt homebuilder Tousa Inc. – Investors liked that, muses Karen Finerman.
Nomura Holdings (NMR) popped 5%. Barron’s said the largest Japanese brokerage could be worth as much as 30 percent more than current levels if the Lehman purchase boosts return on equity. – They got a lot of quality guys in the acquisition, adds Tim Seymour.
Palm (PALM) popped 22%. The maker of the Treo jumped after receiving a capital infusion of $100 million from Elevation Partners LP. – That will do it every time, says Dennis Gartman.
DROPS (stocks that slid lower)
Simon Property Group (SPG) dropped 5%. Commercial real estate groups are asking the federal government to come to their aid. – Not a good time to be in the business of shopping malls, says Dennis Gartman.
iShares Russell 2000 Index ETF (IWM) dropped 3%. The small cap stocks took a hit on Monday along with the mid caps. – When the market is down these things tend to under-perform, says Karen Finerman.
Walgreens (WAG) dropped 5%. The drug store posted an 11% drop in first-quarter profits and they missed on estimates. – They’re opening too many stores, says Guy Adami.
Wynn Resorts (WYNN) dropped 2%. The casino and resort operator dropped on the day it opened its new $2.3 billion Encore resort on the Las Vegas Strip. – Nobody goes to Vegas anymore, says Dennis Gartman. Noone can afford to gamble with their money.
Micron (MU) dropped 12%. A JPMorgan analyst said the memory chip maker is likely to disappoint with its fiscal first-quarter results because of falling prices and demand. – This stock isn’t relevant anymore, says Guy Adami.
Worthington Industries (WOR) dropped 14%. Goldman said the company may violate debt agreements and halt its dividend. – Autos are not the place to be, says Karen Finerman.
Potash (POT) dropped 9%. Goldman downgraded the firm to “Neutral” from “Buy,” after the company reduced its full-year’s earnings forecast last week. – Potash has had a nice run, says Guy Adami.
BHP Billiton (BHP) dropped 4%. UBS cut its earnings forecast due to lower coking coal prices as steelmakers reduce output. – The price of iron ore is coming down, adds Tim Seymour.
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Trader disclosure: On Dec. 22nd, 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); Seymour Owns (AAPL), (BAC), (F), (MER), (DXO); Seygem Asset Management Owns (FXI), (EEM); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (OIH) Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (USO); CIBC Gartman Index Owns Soybeans, Gold, Natural Gas, Australian Dollar, Canadian Debt, Canadian Dollar; CIBC Gartman Index Is Short Crude Oil; CIBC Gartman Index Is Short Euro