The "Fast Money" traders discussed Chipotle and Herbalife after Pershing Square CEO Bill Ackman announced on Monday that he was selling his shares of pharmaceutical company Valeant. The activist investor and billionaire hedge hedge fund manager also owns shares of the two companies.
Trader Brian Kelly said he likes Herbalife because billionaire activist investor Carl Icahn recently increased his shares of the nutrition supplement marketing company. He said he expects Icahn to take greater control of the company, pushing Ackman out.
Trader Guy Adami said he expects the price of Chipotle shares to move lower to $360 or $370. The price of restaurant chain's stock closed at $403.10 on Tuesday.
Brian Kelly is long Bitcoin, XBI, DXJ, TBT, DXY, HLF. Short: Yen
Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.
Karen is long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP,, GOGO, GOOG, GOOGL, JPM, URI, LYV,KORS, KORS calls, KORS puts, MA, SEDG, SPY puts, TACO, WIFI long call spreads. Her firm is long ANTM, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, PLCE, SPY puts, WIFI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.
Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB,FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM