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Premiere Franchise Trading at Rare Low Multiple: Finerman

Wednesday, 27 Jun 2012 | 5:49 PM ET

Following are Wednesday's Pops & Drops.

Find out what’s going up, what’s going down and whether our traders would double down, fade or run in the other direction!

General Mills

The catalyst:General Mills forecast full-year earnings below Wall Street estimates as it boosts investment in emerging markets and its North American Yoplait yogurt business.

The trade: I’m cautious, says trader Stephen Weiss. They’re also talking about pension costs increasing due to low returns.

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Harley Davidson

The catalyst: UBS lowered its 2012 profit targets on Harley Davidson to $2.77 from $2.91, and trimmed 2013 estimates to $3.31 from $3.47, following a meeting between analysts and company executives Monday.

The trade: I don’t think the analyst community got what they wanted to hear, says Dan Nathan. I’d go to the sidelines.

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O’Reilly

The catalyst:O’Reilly said sales growth was slower than expected and second-quarter profit would be on the lower end of the company’s forecast range.

The trade: The stock had been a monster, says trader Guy Adami. But there are no one day events; it probably moves even lower.

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Tiffany

The catalyst: Although investors had been hammering this stock as signs suggested the high-end was starting to crack, this decline may be technical. TIF traded down to a 52-week low.

The trade: Around $50 Tiffany is trading at 13 times earnings. This stock doesn’t normally trade at that kind of multiple. It’s starting to get attractive, says Karen Finerman.

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United Health

The catalyst: Investors are likely betting that this stock stands to gain after the Supreme Court rules on Obamacare.

The trade: We have a buy on the stock with a $72 price target, says Mike Khouw.

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AK Steel

The catalyst: Although the catalyst was unclear perhaps the move was in part technical - AK Steel ended north of its 10-day and 20-day moving averages for the first time since early May.

The trade: I’m seeing a lot of call buying in AK Steel, says Jon Najarian.

Stock Pops & Drops
The Fast Money traders take a look at today's biggest market movers.


Posted by CNBC's Lee Brodie

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Trader disclosure: On June 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephen Weiss is long QCOM; Stephen Weiss is long AMLP; Stephen Weiss is long AMTG; Stephen Weiss is long VZ; Stephen Weiss is long T; Stephen Weiss is long VOD; Stephen Weiss is short X; Stephen Weiss is short MT; Stephen Weiss is short JCP; Stephen Weiss is short JEC; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Najarian short (PBI); Najarian has long call spreads FB; Najarian has long call spreads MMR; Najarian has long call spreads ARNA; Najarian has long call spreads CF; Najarian has long call spreads POT; Najarian is long DDMG; Najarian is long COGX; Najarian is long CBOE; Najarian is long CME

  Price   Change %Change
AKS
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GILD
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HOG
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ORLY
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TIF
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UNH
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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