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Trading the Globe: Cooling of Yen Makes These 3 Stocks A 'Buy'

Thursday, 27 Jan 2011 | 6:35 PM ET

Standard & Poor's surprised markets on Thursday by downgrading Japan's long-term sovereign debt. In the wake of this news, is this a buying opportunity?

"Definitely," said Ron Shah, who spoke to CNBC from Tokyo. "There's a lot of shrugging shoulders. I think there hasn't been any impact from this S&P downgrade."

Equities haven't moved and demand for bonds remains unchanged, noted Shah, founder and managing partner of Jina Ventures. The downgrade has, however, made an impact on the cooling of the Japan's currency. Shah explained that the yen fell in response to the news.

To play the cooldown of the yen, Shah would look at buying exporters, like Cannon , Toyota Motor and Honda Motor . These are not only "great companies," said Shah, but a "great buying opportunity," too.

Trading the Globe
Details on why the S&P has downgraded the Yen, with Ron Shah, Jina Ventures.

S&P downgraded Japan's long-term sovereign debt one notch from AA to AA minus, citing the country's ballooning deficit, which it said will further reduce Tokyo's already restricted fiscal flexibility. The move will have a limited impact on Japan's ability to raise money on financial markets but it raised a red flag with investors about other leading countries' fiscal imbalances.

Shah thinks there will be a "fiscal response" to this. He said the government recognizes it needs to cool down the yen in order to boost exports and revenue.

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Trader disclosure: On Jan. 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is short Gold. Joe Terranova Owns (VRTS), (C), (UPL), (GM), (PEP), (TLT), (MS), (POT), (AAPL), (ARUN), (LTD), (PVH), (CVI), (CVE), (CPX), (CNQ) and (FCX). Karen Finerman owns (AAPL), (BAC), (MSFT), (GOOG), (HPQ), (C) and (BP). Karen Finerman owns (JPM) and (JPM) leaps. Jon Najarian owns (FRO), is short (FRO) calls. Jon Najarian owns (F), is short (F) calls. Jon Najarian owns (GM), is short (GM) calls. Jon Najarian owns (GS), is short (GS) calls. Jon Najarian owns (MOS), is short (MOS) calls. Jon Najarian owns (WMT), is short (WMT) calls. Jon Najarian owns (VZ), is short (VZ) calls. Jon Najarian owns (SNDK), is short (SNDK) calls. Stephen Weiss owns (PZN), (SMCI), (MWA), (AGU), (FAS), (JPM), (DVN), (COP), (DZZ), (MSFT), (QCOM), (HPQ), (FWLT) and (V). Stephen Weiss is Short (GDX). Stephen Weiss is short (GLD).

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JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
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 (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
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 (XLE)
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 (CLB)

KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (AAPL)
Finerman's firm owns (BAC) leaps
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM)
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (WMT)

COLIN GILLIS
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (MSFT)
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (AMZN)

RON SHAH
Ron Shah has no disclosures

BRIAN STUTLAND
Stutland Securities is a Market maker holding positions in VIX futures and options
Stutland Securities is a Market maker in SPX
Stutland Securities is a Market maker holding positions in VXX options and stock

DAVID MILLER
Miller has no disclosures

JON NAJARIAN FAST FIRE 12/17/10
Jon Najarian had no disclosures for (COH) or (PFE) on 12/17/10

CNBC.com with wires. Reuters contributed to this report.

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