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Halftime Pt. 2: Analyst Upgrades Apple on iPad's Ad Potential

Monday, 7 Jun 2010 | 1:37 PM ET

Ahead of Steve Jobs' keynote address at the Worldwide Developers Conference, a BGC analyst initiates Apple Mondaywith a 'Buy' rating and a $350 price target.

Analyst Colin Gillis tells Fast Money during a live interview that the iPad is an "untapped" platform for advertising and sees enormous potential in the electronic reader. He says the company has great products that people want and thinks an economic slowdown would affect Apple less than most. Gillis says Apple could almost be classified as "non-discretionary" spending and says that along with food, air and water, people need Internet connectivity.

Call of the Day
A bullish view of Apple, with Colin Gillis, BGC analyst.

If Google's Android were to pick up, Brian Kelly of Kanundrum Capital asked if Gillis would change his mind about Apple. Gillis says there is a "real threat" from the Android product. But he says Apple's future is not in phones, but in the iPad as an advertising platform people are not factoring in.

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TRADING FINANCIALS: MORGAN STANLEY CEO JOHN MACK ON GOLDMAN SACHS

The Fast Money traders also discussed comments made about Goldman Sachs by rival Morgan Stanley CEO John Mack, who despite their rivalry, seemed sympathetic.

"I think there's a lot of questions being asked and they're going through them one at a time... the problem is, this is everyone jump on Goldman," he said.

But host Melissa Lee points out that a GS analyst advocated buying puts on the Bank ETF , suggested weakness in Goldman may, in fact, warranted.

Tim Seymour of EmergingMoney.com says financial regulation scares him because it will affect every aspect of the economy. He is not sure if the lawmakers working on the legislation have though through transactions as they exist on Wall Street. GS made things worse for themselves by not releasing information more quickly, Seymour says, but despite the bad press, they are no different from any other financial institution. Seymour thinks the whole sector is "vulnerable."

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CALL TO THE FLOOR: TALKING STEEL PRICES WITH NUCOR CEO DAN DIMICCO

It seems commodities traders are chattering about movement in the price and supply of steel; with a new mill in Alabama and a Chinese company opening five new mills in the US. Concerns about a glut are the "Achilles' heel" of the industry, Nucor CEO Dan DiMicco tells us.

And to make matters worse, despite the new mills, jobs aren't being created in any meaningful way.

DiMicco says globally, the industry is not operating close to peak capacity levels and he's worried what affect more capacity will have on steel prices.

Watch the video for the full interview.

U.S. Economy In Peril?
Discussing whether Friday's jobs report signals that the recovery is in jeopardy, with Dan DiMicco, Nucor CEO.


Precious Metals Push Higher

Some precious metals pushed higher Monday with gold and silver viewed by some as a flight to safety. But the Fast Money desk views Silver in a different light, calling it an industrial.

Dennis Gartman says the industrial component is putting downward pressure on the metal. He is short of silver and long of gold. He says the gold/silver ratio is moving up and notes gold is gaining on silver dramatically.

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CALL THE CLOSE

Brian Kelly is a seller and adds that Copper and Goldman Sachs GS are market tells.
Steve Grasso tells us that a rally is a selling opportunity.
Tim Seymour is surprised by the market activity and thinks market goes lower.
Dennis Gartman also thinks market goes down and says traders have "sell strength."


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TRADER DISCLOSURE: ON JUNE 7, 2010, THE FOLLOWING STOCKS AND COMMODITIES MENTIONED OR INTENDED TO BE MENTIONED ON CNBC’S FAST MONEY WERE OWNED BY THE FAST MONEY TRADERS; GRASSO OWNS (ABK); GRASSO OWNS (BP); GRASSO OWNS (BAC); GRASSO OWNS (BGP); GRASSO OWNS (C); GRASSO OWNS (DYN); GRASSO OWNS (JPM); GRASSO OWNS (LPX); GRASSO OWNS (NDAQ);GRASSO OWNS (PRST); SEYMOUR OWNS (AAPL); SEYMOUR OWNS (INTC); SEYMOUR OWNS (BAC); SEYMOUR’S FIRM IS SHORT (RTP); GARTMAN IS SHORT YEN; GARTMAN IS SHORT STERLING; GARTMAN IS LONG GOLD

FOR STEVE GRASSO
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  Price   Change %Change
GS
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MS
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NEU
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SPDR FIN SEL
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NUE
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AAPL
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GOOGL
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