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Analyst: Stocks to ‘Unlike’ On Facebook IPO Hype

Wednesday, 1 Feb 2012 | 6:11 PM ET

Hype surrounding the Facebook IPO has boosted related stocks, creating another way to play the sector, one analyst said Wednesday.

“Rather than looking to buy, we’re looking to short some of these names, identify ones which are just caught up in the hype. A good example of this would be RenRen,” Baker Avenue Asset Management CEO Simon Baker said on “Fast Money.”

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“It’s up 63 percent in the past couple of days on what? Nothing’s changed over there,” he said. “Those are the types of names we’re looking at because people are just getting caught up in the hype. So, sell the hype here.”

Renren, a Chinese social networking site, saw its stock jump 16.8 percent over the past five days. For the day, it dropped 9.7 percent, closing at $5.01.

Another such name was Sina, up 13.8 percent over the same time period. It closed at $73.89, up 5.1 percent.

“There’s a bunch of them out there. You can take your picking on it, but you’ve got to do it quickly because you don’t want to get caught on the wrong way,” Baker said. “Some of these, up 66 percent in two days, is crazy.”

Morgan Stanley, the lead underwriter for the Facebook IPO, also saw a 4 percent increase in its stock price, closing at $19.39.

“I wouldn’t be buying Morgan Stanley right here. It’s too late to do that, but I’d certainly buy Morgan Stanley on a pull-back,” said Brian Kelly of Shelter Harbor Capital.

Trader Stephen Weiss said Morgan Stanley’s role could have a long-lasting effect.

“If you’re a Morgan Stanley broker, you want to drive business, you call up this customer you don’t have yet and say, ‘Hey, we’re the Facebook lead manager. You know what? If you had an account with me, I could get you shares on the deal.’ So it could drive their brokerage business,” he said.

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Trader disclosure: On Feb. 1, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss is long POT; Weiss is long EUO; Weiss is long AAPL (SHORT PUTS); Weiss is long BRCM; Weiss is long FCX; Weiss is long WLP; Weiss is long QCOM; Weiss is long SNDK; Weiss is long HAIN; Weiss is long UGL; Weiss is long VZ; Weiss is long KO; Weiss is long WLT; Cortes is long MO; Cortes is long SO; Cortes is long Treasuries; Cortes is short FSLR; Cortes is short Crude; Cortes is short Canadian Dollar;

For Brian Kelly
Shelter Harbor Capital is long XLF

Shelter Harbor Capital is long XLE

Shelter Harbor Capital is long XHB

Shelter Harbor Capital is long FXI

Shelter Harbor Capital is long FTSE 100

Shelter Harbor Capital is long ELF

Shelter Harbor Capital is long KRE

Shelter Harbor Capital is long MHK

Shelter Harbor Capital is long GLD

Shelter Harbor Capital is long SLV

Shelter Harbor Capital is long FCX

Shelter Harbor Capital is long TLT

Shelter Harbor Capital is long US Treasury note

Shelter Harbor Capital is long German bunds

Shelter Harbor Capital is long JJG

Shelter Harbor Capital is long MOO

Shelter Harbor Capital is long KOL

Shelter Harbor Capital is long SLX

Shelter Harbor Capital is long Copper

Shelter Harbor Capital is long Corn

Shelter Harbor Capital is long Soybeans

Shelter Harbor Capital is long Wheat

Shelter Harbor Capital is short Yen

For Simon Baker
Baker is long QCOM

Baker is long AMZN

For David Palmer
No disclosures

For Edward Aaron
RBC Capital Markets, LLC makes a market in the securities of Whole Foods Market, Inc. and may act as principal with regard to sales or purchases of this security.

A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than investment banking services from Whole Foods Market, Inc. during the past 12 months. During this time, a member company of RBC Capital Markets or one of its affiliates provided non-securities services to Whole Foods Market, Inc.

RBC Capital Markets is currently providing Whole Foods Market, Inc. with non-securities services.

RBC Capital Markets has provided Whole Foods Market, Inc. with non-securities services in the past 12 months.

For Bill Chappell
The following companies are clients of SunTrust Robinson Humphrey, Inc. and the firm has received or is entitled to receive compensation for investment banking services involving their securities within the last 12 months: Green Mountain Coffee Roasters, Inc

The following companies are clients of SunTrust Robinson Humphrey, Inc. and the firm has received compensation for non-investment banking services within the last 12 months: Green Mountain Coffee Roasters, Inc

An affiliate of SunTrust Robinson Humphrey, Inc. has received compensation for products or services other than investment banking services from the following companies within the last 12 months: Green Mountain Coffee Roasters, Inc

For Dennis Gartman
Gartman is long gold

Gartman is short crude

For Jeff Kilburg
Kilburg is long TLT

For Jason Helfstein
Oppenheimer & Co. Inc. makes a market in the securities of AMZN

For Mike Murphy
Murphy is short WHR

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