Fast Money’s Best Ideas for Q2
With the quarter drawing to a close on Friday, we asked the gang as well as some Fast friends for the best ideas going into Q2.
Here’s what’s on their radar:
Janney Capital analyst Adrienne Tennet likes Gap in part because she thinks the retailer is in the sweet spot when it comes to the latest fashion trends.
“Gap is an optimistic brand and when we have color and trends you shouldn’t bet against it,” she says.
Trader Patty Edwards agrees. “I’ve been looking at the stores – the fashion is better – I think they’re dangerous for their competition going forward.”
Dennis Gartman sees another tailwind. “Cotton acreage has been increased dramatically and that will pull down cotton prices,” he says. “Lower cotton should have a material and positive impact on Gap’s bottom line.”
PVH Corp (formerly Phillips-Van Heusen)
Patty Edwards likes PVH as a play on the success of their brands and the recovering economy.
“They’re experiencing strong growth, especially in their Tommy Bahama and Calvin Klein brands,” she says.
“And with employment picking up men will need to buy more dress shirts and ties. PVH Corp is the leader in the space. My price target for this company is $108.”
Zach Karabell recommends Verifone as a company that's in the thick of a sea change.
“The whole trend of mobile payment will be the most significant trend of how consumers transact most things in their lives,” he says.
“And Verifone will be the center of all of it.”
Short 10-Year Bonds
Dennis Gartman suggests shorting 10-Year Treasurys on the belief that the US economy is recovering on its own, and as a result, Fed intervention is less likely.
Looking at the Fed’s latest stimulus, Gartman says, “Operation Twist has run its course.” (Operation Twist refers to the Fed’s program of selling short term bonds and buying 10-year notes.)
With the Fed stepping back taking demand out of the bond market, “I wouldn’t be surprised to see the yield on the long-end go higher. It’s a good time to get short bonds,” he says.
Got something to to say? Send us an e-mail at email@example.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 firstname.lastname@example.org.
Trader disclosure: On Mar 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Dennis Gartman is long DSX; Dennis Gartman is long LMG; Dennis Gartman is long FRO; Dennis Gartman is long GOLD; Dennis Gartman is short S&P FUTURES; Dennis Gartman is short YEN; Patty Edwards is long for clients TAL; Patty Edwards is long for clients AAPL; Patty Edwards is long for clients GLD; Patty Edwards is long for clients INTC; Patty Edwards is long for clients JOY; Patty Edwards is long for clients SBUX; Patty Edwards is long for clients COP; Patty Edwards is long for clients VLO; Patty Edwards is long for clients AMZN; Patty Edwards is long for clients PEP; Patty Edwards is long for clients PVH; Patty Edwards is long for clients LECO; Patty Edwards is long LECO
For Adreinne Tennant
JMS is a market maker in this security, and may at any time hold a long or short position in GAP
JMS or an affiliate managed or co-managed a public offering in the past 12 months of GAP
JMS or an affiliate received compensation for investment banking services in the past 12 months from GAP
JMS or an affiliate received compensation for products or services other than investment banking services in the past 12 months from GAP
JMS may seek compensation for investment banking services in the next 3 months from GAP
The research analyst is compensated based on, in part, JMS.s profitability, which includes its investment banking revenues.
JMS or an affiliate beneficially owns 1% or more of any class of common equity securities of GAP
An Employee or Director of JMS is an officer or Director of GAP
The research analyst primarily responsible for preparing this research report or a member of the research analyst.s household has a financial interest in the securities in the form of options (O), warrants (W), futures (F), and/or a short position (S) in GAP
The research analyst primarily responsible for preparing this research report or a member of the research analyst.s household has a financial interest in the securities of the company in the form of a long position in GAP
For Ian Hague
Nothing to Disclose
For Brian Modoff
Nothing to disclose
For Vishnu Lekraj
Nothing to disclose
CNBC.com with wires.