Finerman Counsels Caution, For These Trades
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About to make a move? First, find out where Karen Finerman says there’s too much risk and too little reward to get involved.
FM trader Karen Finerman has here eye on two deals going down.
Roche + Genentech
The first involves Roche’s attempt to buy out the minority shareholders of Genentech .
On Friday word came that Roche had increased its bid to $93 a share from $86.50 and extended its tender offer by a week.
The sweetened offer for the 44 percent of the U.S. biotech company Roche does not already own takes the cost of the deal to $45.7 billion. All other terms and conditions remain unchanged, the Swiss drugmaker said in a statement on Friday.
“I think there’s a good chance it’s enough and it goes through," muses Finerman. "But most of the money’s been made here,” she counsels.
Rohm & Haas + Dow Chemical
Dow Chemical and Rohm and Haas said they are in last-minute talks to try to settle litigation related to their proposed merger, sending both companies' stock up sharply.
Dow also said it had agreed with its lenders to an option that could extend its loan for the deal by a year, but it has reduced the size of the loan by $500 million to $12.5 billion. The companies said in a joint statement that they could not predict the outcome of the talks and would not comment further.
With moves like these stocks had on Friday I would not be a buyer here, counsels Finerman.
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Trader disclosure: On Mar. 6th, 2009, 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); Najarian Owns (GDX); Najarian Owns (DNA) Calls; Najarian Owns (FCX) Spread; Najarian Owns (GLD) Put Spread; Najarian Owns (MS) & (MS) Calls; Najarian Owns (MSFT) & (MSFT) Calls; Najarian Owns (PNC) Put Spread; Najarian Owns (X) Call Spread; Najarian Owns (V) & (V) Calls; Najarian Owns (WFC) & (WFC) Calls; Finerman Owns (WFC) Preferred; Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (MSFT), (PBR), (RIG), (TGT); Finerman's Firm Is Short (VNO), (BAC), (BBT), (IYR), (IJR), (IWM), (MDY), (SPY), (USO); J. Najarian Owns (AA), (FDO), (M); J. Najarian Owns (MS) & (MS) Puts; J. Najarian Owns (BAC) Preferred; J. Najarian Owns (FAS)
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