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Burned by Cogent

A long position in Cogent looked like a hot trade but all it did was burn. So how is Joe Terranova playing this stock now?

The Liquidator made the fateful call on August 30th. “Just keep in mind with Cogent that it's got a phenomenal balance sheet, tremendous cash flow, and it’s a quality company with growth going forward,” he said.

“What they do, very few do in the space. And even fewer do it as well as Cogent making the company an attractive target.”

Maybe Terranova should get his eyes checked. Buying this stock wasn't attractive – it wasn’t attractive at all. It’s down about 5%.

So what does he have to say about this trade now?

I'd stay with this trade, says Terranova. I like the valuations. I'd also be a buyer her.




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Trader disclosure: On September 28th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian owns (NETL) call spreads; Pete Najarian owns (CNI); Pete Najarian owns (AMZN); Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (LLNW) call spreads; Pete Najarian owns (NTAP) call spreads; Pete Najarian owns (DD); Pete Najarian owns (NOV); Pete Najarian owns (RRC); Pete Najarian owns (DO); Pete Najarian owns (GDXJ); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (IBM), (HES), (JOYG), (XBI), (FTO), (OXY), (ORCL), (PEP), (POT), (RSH), (SU), (RIG), (UPL), (VRTS); Cortes is short (XLF); Cortes is short (BAC); Cortes is short (LVS); Cortes owns German Treasuries; Cortes is short the British Pound; Cortes is short corn; Weiss owns (JOYG), (BAC), (AKAM), (CSX), (VZ); Weiss is short (SF)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
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For Brian Kelly
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For Rich Ilczyszyan
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For David Sackler
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