Buy Blackstone Tomorrow?
The headline: Private Equity Giant Blackstone Group Set To Begin Trading Tomorrow Under The Symbol (BX)
Blackstone’s IPO is priced at $31, which is at the top of the expected range. CNBC reporter Melissa Lee says that even though the IPO is considered to be oversubscribed, it’s still “going to be hot.” She says expect the price range to move higher during the trading day tomorrow.
There’s little risk that Blackstone becomes a broken IPO, Jeff Macke says. Just because it’s oversubscribed doesn’t mean it isn’t hot – but he wouldn’t be a buyer. He thinks the firm could be going public as a way to cash out because they want liquidity. “Don’t buy what the smart guys are selling,” he says.
Eric Bolling is a buyer of Blackstone at the open because of the international desire for the stock. China put $3 billion into it, countries in the Middle East are looking at it and it has an overwhelming following all over the world, he says. Own it at the open and own it on the dip.
Blackstone reminds both Pete Najarian and Guy Adami of Fortress (FIG) – “an example of why it’s a sell,” Pete says.
The headline:AMD (AMD), NVIDIA (NVDA), Chip Stocks Stage Huge Rally On Virtually No News
They might have finally reached the bottom, Pete says. When National Semiconductor (NSM) reported, the stock exploded, and now others are following suit. Even smaller semiconductor names like Micron (MU) and Cyprus (CY) are rallying. His pick, though, is NVIDIA.
The chips are “wildly underowned stocks,” Jeff says. If you feel a NASDAQ rally coming on, he thinks chips are the first place to go. Specifically, he likes Intel (INTC), which is up 10% since he recommended it just last Tuesday.
Eric likes IBM (IBM) and Guy recommends EMC (EMC), which is still going higher.
The headline:GE (GE), Pearson (PSO) Drop Plans To Challenge News Corp. (NWS) For Dow Jones (DJ)
The deal gets done with News Corp., Guy says. He thinks it happens at $63.50 per share.
Eric agrees. Murdoch will outbid anyone, he says.
Now that the Bancrofts have given control over to the board, “the decision gets made this week,” Jeff says.
There’s Always Room For Activist Investors:
The headline: Kraft, Maker of Jell-O, Surges On Report Of Nelson Peltz Stake
The rising price of milk is surely affecting Kraft (KFT), and with many saying the company is not well-managed, Peltz could apply pressure and make a difference, Jeff says.
He did it with Heinz (HNZ), Eric says.
Trade Update: With A Chart Like Smuckers:
The headline: Smuckers Shares Soar As Earnings Top Estimates
On March 20, Eric recommended Smuckers (SJM), which is up 17% since the call and up 6% today alone on its earnings. Eric still thinks there’s upside left as the company looks at 8% growth, and you can still own it.
No Raw Sewage Here:
The headline: Will Textron (TXT), Private Jet Makers Benefit From Major Airlines’ Operational Failures?
Textron is on fire, Guy says, but it’s so volatile that a pullback isn’t out of the question. That being said, Guy agrees with a Citibank price target of $130 for the conglomerate.
Chartology: This Chart Is A Terrible Thing To Waste
The headline: Waste Management May Be Due For A Breakout
Waste Management (WMI) has a fantastic chart, Eric says. He also likes Covanta (CVA).
Trader disclosure: On June 12 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Macke Owns (ATVI), Najarian Owns (NITE), (GS), (STX), (AAPL); Bolling Owns (ICE), (T), (DIS)(NMX); Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures
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