Questions #1: Steph from New York wants to know the best way to play a company like cement producer, Cemex (CX) andif there are better stocks in the same space?
Guy Adami says stay away from Cemex because they bid for another company a few months back and the acquisition is now, in question. Instead he says consider Vulcan Materials (VMC).
Questions #2: Rob from Texas says season pass and group sales at Six Flags (SIX) are at an all-time high and that per-capita revenue is soaring. Since this stock is so heavily shorted and since Six Flags appears to be on track for a great 2007 season, is this a potential short squeeze and maybe even a good opportunity to buy some call options?
Jeff Macke is bearish on Six Flags call options. He says they spent $57 million trying to improve customer experience last year, but that didn’t result in more customers. They need to get traffic patterns back. He feels call options on this stock will erode pretty quickly if things don’t come together.
Questions #3: Bryan from North Carolina says it seems that gold-mining stocks have under-performed recently, and there are rumors about Barrick Gold (ABX) possibly bidding for Newmont Mining (NEM). He wants to know which stocks are a good play on gold.
Eric Bolling says the streetTRACKS Gold Trust ETF (GLD) is the safest way to play gold. However, Eric says Barrick and Newmont are both great companies and he recommends owning Barrick.
Question #4: Joe from NY wants to know about Triad Hospitals (TRI) which is being bought by Community Health (CYH). He want to know if our guys see any more prospects for consolidation in the health care space?
Tim Strazzini says there are a lot of prospects for consolidation. In fact the entire industry is going to be consolidating. Tim recommends Lifepoint (LPNT) and United Health Services (UHS) because they both have solid revenues and they’re not so tied to the Medicare space or labor union and they have a special niche.