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Trading Tech in Wake of Oracle, RIM Results

After the bell both Oracleand RIMreleased earnings with the Fast Money desk all over the results and gaming their next moves.

Considering the broad tech sector is up about 2% over the past 3 months what must you know before you place your bet?

ORACLE

Shares of Oracle popped 4% in extended trade after the tech titan reported a profit that jumped 38 percent excluding one-time items and easily outpaced analysts' estimates. Strong sales of new business software and faster-than-expected growth of its new hardware business fueled the gains.

"We executed better than expected on both the top and bottom line for the quarter," said Oracle CFO Jeff Epstein in a prepared statement.

Looking at the numbers The maker of database software and other business technology said it earned 42 cents a share on a non-GAAP in its fiscal first quarter, compared with 30 cents a share during the same period last year.

Revenue for the most recent quarter to $7.59 billion, against $5.06 billion a year ago.

Analyst who follow Oracle expected the company to report a profit of 37 cents a share on a topline of $7.27 billion.

What’s the trade?

Even with the move in the after market, I think the stock remains cheap, says Guy Adami.

I like what I’m hearing from Oracle and think there may be more upside, says Joe Terranova. Now watch to see if analysts raise estimates. However, if you’re in the stock already, I’d take off half.

I agree with Joe – I’d take profits if you hold the stock, says Karen Finerman.

There may be more of an upside run, adds Pete Najarian. If you want to stay in, why not buy puts. Also it’s worth noting the strong results out of Oracle suggest to me their beating somebody and that somebody could be SAP, he speculates.

> For more coverage of Oracle earnings click here.

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RESEARCH IN MOTION

Shares of RIM popped 8% in extended trade after the BlackBerry maker posted quarterly results that exceeded analysts' expectations and raised its outlook for the current quarter.

”RIM set another new record in the quarter by shipping over 12 million BlackBerry smartphones," said Jim Balsillie, Co-CEO at RIM, in a prepared statement.

"We expect a continuation of this momentum in the third quarter as we extend the rollout of new products including the BlackBerry Torch into additional markets and benefit from heavy promotional activities and increasing customer demand as we head into the holiday buying season," he continued.

Looking at the numbers, the BlackBerry maker said it earned $1.46 a share in its fiscal second quarter, compared with $1.03 a share this time last year.

Sales for the most recent quarter reached $4.62 billion, up from $3.53 billion in the same period last year.

Analysts who follow the company projected RIM to earn $1.35 a share on revenue of $4.47 billion.

In addition, RIM said it expects to generate a profit of between $1.62 a share and $1.70 a share in the current quarter, well above of the $1.39 a share that 46 analysts who follow the company had expected, according to a consensus from Thomson Reuters.

The company also raised its revenue guidance for the current quarter to between $5.30 billion and $5.55 billion. Analysts' consensus stood at $4.83 billion.

What’s the trade?

I don’t think there’s any trade here, says Joe Terranova. In the space the play is long Apple.

> For more coverage of RIM earnings click here.


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TXN SHARE BUY BACK

Shares of Texas Instrumentsjumped 4% in extended trade after the chip giant announced that its board has authorized the repurchase of an additional $7.5 billion of its common stock.

What’s the trade?

These developments could buoy the entire chip space, says Guy Adami. Keep an eye on IntelFriday.

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GOLD RISES TO ANOTHER RECORD

Once again gold swept to a record high – this time above $1,275 per ounce on Thursday, as currency market jitters and broader economic uncertainty sent investors into this safe haven.

What’s the trade?

Gold continues to move from the lower left to the upper right, says Dennis Gartman. Might it become a bubble? Probably but not anytime soon. Gold is breaking higher not only in terns of dollars but also in terms of euro and the pound. That’s impressive.

And elsewhere in the space, I expect white metals to go higher too, Gartman says. That’s silver, platinum and palladium.

I’m watching the GDXJ as well as Barrick for unusual options actions, says Pete Najarian. There’s been a lot of upside call buying. That suggests these equities could go higher.

For me the metals play is Freeport McMoRan, says Joe Terranova. And I’d also look at Joy Global.

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M&A TRADE

Once again M&A grabbed the spotlight, this time due to reports suggesting Potash is trying to put together a group led by china to top BHP's hostile offer.

What should you make of it?

I’m skeptical of this story, reveals Karen Finerman, though I do think there will be another bid.






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Trader disclosure: On Sept. 16th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (DO), (EOG), (FCX), (FTO), (XBI), (GS), (HES), (IBM), (JOYG), (MA), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (GLD), (SLB), (SWN), (SU), (SPLS), (RIG), (UPL), (VRTS); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman’s firm is short (ANF); Finerman & Finerman’s firm own (CFN); Finerman & Finerman’s firm own (HPQ); Finerman owns (ORCL); Finerman owns (WMT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (F) bonds; Pete Najarian owns (POT) call spreads; Pete Najarian owns (RIMM) call spreads; Pete Najarian owns (DD) call spreads; Pete Najarian owns (GDXJ) call spreads

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (RIMM)
Accounts managed by Kanundrum Capital own (ALK)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital are short (OIH)
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (BA)

For Dennis Gartman
Funds managed by Gartman own Gold
Funds managed by Gartman own Australian Dollars
Funds managed by Gartman own Canadian Dollars
Funds managed by Gartman are short Euros

For Peter Boockvar
***No Disclosures***

For Brian Stutland
***No Disclosures***



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