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Halftime Pt. 2: Could This Stock Bring 'Christmas in July'?

Thursday, 1 Jul 2010 | 1:44 PM ET

Despite a terrible tape, Matell may bring "Christmas in July" for investors. CEO Bob Eckert talked about his company on Thursday's Fast Money Halftime Report.

Consumers may tend to slow their spending during difficult economic times, but Eckert says the toy business is an exception. Pointing to positive sales results in winter 2009, he is optimistic about this year and says, "Santa's elves are pretty busy right now."

Call to the Floor: Mattel
Will it be Christmas in July for Mattel investors? CEO Bob Eckert discusses his company's outlook with the Fast Money traders.

Toy sales are getting a boost from interest generated by Disney's feature film Toy Story 3, which includes Matell's popular Barbie and Ken dolls as main characters. Since its theatrical release June 18, the film has grossed $59.3 million and continues to hold the number one spot in the box office. The popularity of the movie has helped Mattel, Eckert says, because all of the toys featured in the movie are sold in stores.

With exposure around the world, Eckert says the El Segundo, Calif.-based company has factored in rising costs in China and thinks the economy will improve there. After speaking with investors privy to Europe's economic climate, Eckert thinks the "worst is behind us."

What's the Trade?

Parents are going to continue to buy their kids toys, says Patty Edwards of Storehouse Partners. She is also bullish on Matell because of its 3.5% dividend yield.

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MOVING NOW: FORD PUSHES HIGHER

It may seem as though the third quarter has begun on a sour note, but Fast Money uncovered one stock that's working: Ford .

The automaker's stock is up, as it reports June auto sales rose by 16%. According to some reports, the company could reinstate its dividend by 2012.

What's the Trade?

"I think Ford's doing everything right," says Guy Adami, praising CEO Alan Mually. "Even on a benign tape Ford goes higher."

Patty Edwards of Storehouse Partners likes Ford and Tesla Motors for the long-term.

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CALL THE CLOSE

"Rallies need to be sold," says Guy Adami of Drakon Capital. Brian Kelly of Kanundrum Capital and Patty Edwards of Storehouse Partners agree.

"Natural gas, the ag trade, Goldman Sachs — they're all working today," says Joe Terranova of Virtus Investment Partners.

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Trader disclosure: On July 1, 2010, 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), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (MON), (AGU), (KO), (XOM), (TEVA), (RDS.A), (GMCR), (UPL), (GS); Terranova is short gold; Terranova owns (GLD) July 123 puts; Terranova owns (GS) JULY 130 CALLS; Terranova owns (GS) JULY 135 CALLS; Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ); Kelly is short (GS)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (AMZN) for clients
Edwards owns (BAC) for clients
Edwards owns (BBY) for clients
Edwards owns (C) for clients
Edwards owns (COP) for clients
Edwards owns (CVX) for clients
Edwards owns (DELL) for clients
Edwards owns (DO) for clients
Edwards owns (F) for clients
Edwards owns (GE) for clients
Edwards owns (GLD) for clients
Edwards owns (GOOG) for clients
Edwards owns (GLW) for clients
Edwards owns (HAL) for clients
Edwards owns (HPQ) for clients
Edwards owns (INTC) for clients
Edwards owns (JPM) for clients
Edwards owns (JNK) for clients
Edwards owns (MOS) for clients
Edwards owns (MS) for clients
Edwards owns (MSFT) for clients
Edwards owns (NE) for clients
Edwards owns (NSC) for clients
Edwards owns (NVDA) for clients
Edwards owns (PNC) for clients
Edwards owns (QQQQ) for clients
Edwards owns (RIG) for clients
Edwards owns (SLB) for clients
Edwards owns (SPY) for clients
Edwards owns (STI) for clients
Edwards owns (STM) for clients
Edwards owns (TM) for clients
Edwards owns (TM)
Edwards owns (TSLA) for clients
Edwards owns (TTM) for clients
Edwards owns (TXN) for clients
Edwards owns (UNP) for clients
Edwards owns (VXX) for clients
Edwards owns (VZ) for clients
Edwards owns (WFC) for clients
Edwards owns (WFT) for clients
Edwards owns (XOM) for clients
Edwards owns gold for clients
Edwards owns platinum for clients
Edwards owns silver for clients
Edwards owns the Russell 2000 for clients
Edwards owns the S&P500 for clients

For Brian Kelly
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own (GDX)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SDS)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own Treasuries
Accounts managed by Kanundrum Capital own US Dollars
Accounts managed by Kanundrum Capital is short (AMZN)
Accounts managed by Kanundrum Capital is short (RCL)
Accounts managed by Kanundrum Capital is short (XLY)
Accounts managed by Kanundrum Capital is short (XLE)
Accounts managed by Kanundrum Capital is short (AFL)
Accounts managed by Kanundrum Capital is short (CME)
Accounts managed by Kanundrum Capital is short (EWA)
Accounts managed by Kanundrum Capital is short (EWI)
Accounts managed by Kanundrum Capital is short (EWO)
Accounts managed by Kanundrum Capital is short (FXI)
Accounts managed by Kanundrum Capital is short (GS)
Accounts managed by Kanundrum Capital is short (HIG)
Accounts managed by Kanundrum Capital is short (RKH)
Accounts managed by Kanundrum Capital is short (RSX)
Accounts managed by Kanundrum Capital is short (USO)
Accounts managed by Kanundrum Capital is short (MCO)
Accounts managed by Kanundrum Capital is short (XLF)
Accounts managed by Kanundrum Capital is short (XLI)
Accounts managed by Kanundrum Capital is short (FCX
Accounts managed by Kanundrum Capital is short (GFI)
Accounts managed by Kanundrum Capital is short (JOYG)
Accounts managed by Kanundrum Capital is short (XLB)
Accounts managed by Kanundrum Capital is short (XLK)

For Joe Terranova:
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

David Riedel
***No Disclosure***

Ashraf Ladhi
***No Disclosure***

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