A deadly explosion at one of two Chinese plants that produce Apple’s new iPad 2 has some wondering about delays in production and how it will affect AAPL’s stock. The blast at Foxconn Technology Group’s Cengdu factory, which occurred May 20th, killed two people and injured sixteen. It also halted production until an investigation is completed.
But Stern Agee analyst Shaw Wu is not concerned about a supply disruption because the company has redundancy in its plants. The second Foxconn factory in Shenzhen is ramping up production of the tablet to make up for any shortfall, he said.
This incident, coupled with the Japanese earthquake, “give more reason to create even more redundancy to make sure there aren’t any future disruptions,” Wu said.
What’s the trade?
Pete Najarian would buy Apple on the weakness because there will not as big of a supply disruption as people had anticipated. And if APPL gets near $325, he thinks you have to start buying some more.
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SHUTTERFLY SOARS
Online photo service company Shutterfly has seen its shares shoot up more than 145 percent in the past year thanks to strong revenue growth. CEO Jeffrey Housenbold talked about what what’s next for this tech high flier. Watch the video to see the full interview.
Trader disclosure: On May 23, 2011, 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 (AAPL); Pete Najarian owns (C); Pete Najarian owns (MS); Pete Najarian owns (MSFT); Cortes owns (SO); Cortes owns (EXC); Cortes owns (KFT); Cortes owns (K); Cortes owns (GS); Cortes owns (MS); Cortes is short Nikkei; Cortes is short Australian dollars; Cortes is short British Pound; Cortes is short EEM vs. S&P Long; Cortes is short (CAT); Cortes is short (DE); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasos owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)
For Brian Kelly
Accounts Managed by Brian Kelly Capital own (NEM)
Accounts Managed by Brian Kelly Capital own (FCX)
Accounts Managed by Brian Kelly Capital own Aussie Dollars
Accounts Managed by Brian Kelly Capital own U.S. Dollars
Accounts Managed by Brian Kelly Capital own TLT calls
Accounts Managed by Brian Kelly Capital own (UPL)
Accounts Managed by Brian Kelly Capital own (MCP) calls
Accounts Managed by Brian Kelly Capital are short yen
For Steve Grasso:
Stuart Frankel & Co and it’s partners own (ABX)
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 (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NEM)
Stuart Frankel & Co and it’s partners own (NYX)
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 (SDS)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are Short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)
For Shaw Wu
*No Disclosures
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