Answers To Your Questions About The Sell-Off


Question #1:
Elizabeth from Massachusetts asked in light of last week's announcement that new housing prices increased 5.9% in the last quarter of 2006, do you think home-builder Centex's stock has over-reacted to housing bubbles fears? Is this a great opportunity to buy this stock at an inexpensive price as a long-term investment?

Guy Adami answered: "I don’t think Centex or the homebuilders overreacted at all. The stock is right back down where it was in July. I don’t run to the homebuilders here. I think you have more room on the downside."

Kristen from New York asked that given the current political environment, is it worth buying the health insurers, like United Health, or the large pharmaceuticals, such as Merck or Pfizer ?

Tim Strazzini answered. He said United Healthcare is fully valued here. "I would look at Ventas , a healthcare REIT and I think it’s going to be a good buy soon and I wouldn’t be afraid to buy United Healthcare."

Brian from Kansas asked wither the slide we’re seeing today in the energy markets is going to help stocks. Also, what’s with this sell-off in the Euro and do you think it will continue?

Eric Bolling answered: "The weakness in the oil markets is likely not to help the equity market. Oil over the long term is headed higher and you’re better off owning refiners."

Danielle from New York, a singer/songwriter who has performed with Neil Young, said "My first album, entitled Danielle Evin, is available on iTunes, so it got me thinking. Given that Apple has had a big run up as of late, and given the competition from Microsoft , would you be buying puts on Apple and buying calls on Microsoft?"

Jon Najarian answered, "I wouldn’t do either of those two trades. I love Apple. I think it’s a phenomenal space. The stock was higher in the aftermarket. I think Apple is a far better buy than Microsoft. I think Apple could hit 100 long before you’ll ever see 30 at Microsoft."

Note: Apple closed at $86.32 today, while Microsoft ended up at $27.55.

Trader disclosure:
On MAR 5, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders.
Strazzini: Gold,(MER), LBF
Bolling: Gold, Silver, Soybeans, Short Corn, S&P Futures, short Nasdaq futures, NMX
Najarian Owns (PALM)

Questions? Comments?