GO
Loading...

Jon Najarian's Heat Seeker ID's Two Hot Stocks

Jon Najarian’s heat seeker has just identified another 2 hot stocks. They’re on his radar – are they on yours?

Textron

The Option Monster has aircraft, defense and industrial giant Textron on his radar due to an unusually large trading volume of Jan 22.50 calls and Feb 22 calls.

First and foremost Najarian says he does not consider the activity as a signal of an imminent takeout. “The company won’t be sold at these levels – somebody would be stealing it if that happened.”

Instead, he sees the activity as a vote of confidence in Street chatter that suggests Textron might put divisions up for sale.

And Najarian tells us, the chatter makes sense – he sees synergy for UTX should they buy the Textron's Bell helicopter unit -- or elsewhere if another rival acquires its Cessna division.

Jeff Sprague, the co-founder of Vertical Research Partners has also heard the chatter. “I understand where the speculation is coming from – if you look at Textron it’s an obvious break up candidate; it’s an old school conglomerate.

However Sprague is skeptical. “It’s my personal view that the company is not close to the point of breaking up. They have a relatively new CEO that’s focused on fixing businesses. I don’t think a break up is imminent.”

---------------------------------------------------------------------

NEW SLIDESHOW: The Biggest Momentum Stocks of 2011: Buy or Sell?

---------------------------------------------------------------------

SAP

After the broadcast The OptionMonster tells us he also has SAP on his radar.

Specifically he’s seeing strong interest in the Feb 55 calls .

Najarian tells us the activity is nothing more than a belief among institutional investors that the stock was oversold.

"SAP is still one of the strongest companies in Germany, which is the strongest nation in Europe. The recent decline was not warranted.”

He also tells us he considers the call buying another sign that big investors have made peace with the overseas financial crisis. “I think of the SAP call buying as a vote of confidence in Europe,” he says.






______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On Jan. 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns INTC; Adami owns BTU; Adami owns NUE;
Najarian owns AAPL; Najarian owns BAC; Najarian owns GS; Najarian owns BCS; Najarian owns TXT; Najarian owns URBN; Najarian owns INTC; Najarian owns CMC; Najarian owns FSLR; Najarian owns WYNN; Najarian owns DHI; Najarian owns LEN; Najarian owns WLT;

Brian Kelly
Shelter Harbor Capital is long LWM
Shelter Harbor Capital is long KRE
Shelter Harbor Capital is long EWZ
Shelter Harbor Capital is long IDX
Shelter Harbor Capital is long FTSE 100
Shelter Harbor Capital is short EWH
Shelter Harbor Capital is short EUROSTOXX
Shelter Harbor Capital is short BRITISH POUND

Michael Widner
Stifel, Nicolaus & Company, Inc. makes a market in the securities of Lennar Corporation.

Jeff Kilburg
No disclosures

Laura Martin
The research analyst and research associate have received compensation based upon various factors, including quality of research, investor client feedback, and the Firm’s overall revenues, which includes investment banking revenues.

Craig Moffett
Bernstein currently makes a market in the following companies DTV / DIRECTV Group Inc, DISH / DISH Network Corp

Kaumil Gajrawala
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in PepsiCo Inc.
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: Coca-Cola, PepsiCo
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.: Coca-Cola, PepsiCo
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: Coca-Cola, PepsiCo
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: Coca-Cola, PepsiCo



CNBC.com with wires.

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET