Jennie from NY says she’s planning on taking a trip to Vegas this summer and noticed some volatility in the casino sector. Is buying into Las Vegas Sands the way to go or is there a better play?
Jon Najarian says Las Vegas Sands (LVS) is one of the best places to make fast money because they’re not just in Vegas they’re also in Macau. And Jon likes Wynn Resorts (WYNN) because they’re in Macau too. He says you can jump on either of those stocks and you’ll do well because there are only 6 licenses for casinos in Macau. If China stabilizes and the Chinese love to gamble, you’ll see a lot of money flowing into those stocks.
Kristin from Connecticut asks about Nike's (NKE) move into retail operations - and if she should she be selling companies like Foot Locker (FL)?
Jeff Macke says he’s negative on Foot Locker. He thinks Nike will have limited impact - Foot Lockers is simply killing themselves. He thinks Circuit City (CC) is a terrific short in the specialty area. There’s less excitement going on in that sector and they’re working through a buzz they had last year.
Lisa from Montana says Scotts Miracle Grow (SMG) and General Maritime Corp (GMR) have both declared special cash dividends. She’s wondering what Tim Strazzini thinks of buying a stock to collect the cash and then selling it once it starts trading ex-dividend?
Tim Strazzini says a lot of companies that have a lot of cash on the balance sheet get a lot of calls from Wall Street saying you need to do one of 3 things: buy back stock, pay dividends or go buy your competitor. So they have to do something with that cash. But, once they declare a special cash dividend, you don’t get appreciable pick-up in the stock, you just to collect the dividend. There’s no real benefit to it, you just get a piece of cash.
Ajay from New York wants to know why a company like Boeing (BA) has had steady gains, yet Airbus, Europe's largest aerospace company, has reported almost a $1 billion loss in the 4Q? What is the future of the Aerospace industry, and do you think this sector deems to be a sound investment?
Guy Adami says he just doesn’t get Airbus. UPS just canceled their A380 order with Airbus. However, he loves the space and in the space he loves Boeing. BA, he says, is a name you need to own and you need to hold onto.