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Halftime: Top 3 Takeover Targets in the Chip Space

Microchip Technology , LSI and Advanced Micro Devices are possible targets for leveraged buyouts, according to Sesquehanna International Group.

So which name is most likely to be taken out? Probably another all together, said options trader Pete Najarian, adding that the companies mentioned have too high of market caps.

"Look for the companies right now that are under about $1 billion, $1.5 billion," said Najarian, co-founder of optionMONSTER.com. "That's likely the targets."

Microchip Tech has a market cap of $6.31 billion, LSI has a market cap at $3.46 billion and AMD has a market cap of $5.25.

All three technology companies are in the semiconductor space. As such, the stocks are in the SPDR S&P Semiconductor exchange-traded fund.

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UNUSUAL ACTIVITY

Ford Motor shares hit another 52-week high Monday, reports Najarian, adding that there's been strong activity in both its stock and options.

One-hundred to 200 million shares of Ford have been traded in the past ten days, he said. Meanwhile, more than 100,000 contracts exchanged hands in the first half-hour of trading Monday. Of those, roughly 90,000 were for the Dec. 17 and Dec. 20 calls.

Most seem bullish on Ford, but Kanundrum Capital founder Brian Kelly thinks valuation is stretched at the point. In the auto space, he prefers Toyota Motor . He likes that Toyota's global auto sales are increasing and said it could also benefit from a weaker yen.

Watch the video to see the full conversation.

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WHALE WATCHING

Renown hedge fund manager David Tepper has trimmed his holdings in major financial institutions, including Bank of America, Citigroup and Wells Fargo.

In the third-quarter, the Appaloosa Management executive sold 4.8 million shares of BAC , 6.5 million shares of Citigroup and 1.5 million shares of Wells Fargo , according to an 13-F filing. He maintained a position in all companies, however, reports CNBC's Melissa Lee.

During the same time period, Tepper bought 6 million shares of Cisco , 3.7 million shares of Hewlett-Packard and 180,000 shares of Intel .

Like all good money managers do, Tepper knew when to lock-in profits, said Stuart Frankel's Steve Grasso.

To see the full conversation on David Tepper's transactions, watch the video—it starts at 1:00.

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CALL TO THE FLOOR: AMERICAN PUBLIC EDUCATION

Shares of American Public Education rose sharply on Monday, as the stock was helped by a tremendous pop following last week's earnings announcement.

For Monday's "Call to the Floor," CEO Wally Boston spoke with the "Fast Money" desk. Watch the videoto see the full interview.

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CALL THE CLOSE

Najarian is a buyer, being as volatility is "rocketing" to the upside.

Kelly thinks an Irish bailout could happen Tuesday, so he's a buyer of the market.

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Grasso recommends taking profits.

Carter Worth, chief market technician of Oppenheimer, thinks we could fade into the close half-way from where we are now.

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Trader disclosure: On November 15, 2010, the day this video was recorded, 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 (CNI), (MEE), (WLT), (MS), (NTRS), (F) and (MRO). Steve Grasso owns (ASTM), (BA), (BAC), (BWC), (C), (CSCO), (JPM), (LPX), (MOT), (NDAQ), (PFE) and (PRST).

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MOT)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MT)
Accounts Managed By Kanundrum Capital Own (IEF)
Accounts Managed By Kanundrum Capital Own (TIP)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (REE)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (TD)
Accounts Managed By Kanundrum Capital Own (AWI)
Accounts Managed By Kanundrum Capital Own (HD)
Accounts Managed By Kanundrum Capital Are Long Euro
Accounts Managed By Kanundrum Capital Own (XHB)
Accounts Managed By Kanundrum Capital Own (CLF)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (JO)
Accounts Managed By Kanundrum Capital Are Short (YEN)

STEVE GRASSO
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (S)
Stuart Frankel & Co And Its Partners Own (UNM)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (MCD)
Stuart Frankel & Co and it’s partners are short (AAPL)

CARTER WORTH
***No Disclosures***

DICK BOVE
***pending***

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