With all the action on the floor today, what was the word on … Motorola …Starbucks' record label and Fedex earnings The guys reveal what traders are saying to each other as they buy or sell their way to fast money.
The news: Motorola (MOT) is dramatically scaling back earnings estimates, names a new president and chief operating officer, along with a new chief financial officer, and announces a dramatic increase in the company's share buyback program.
The word: Eric Bolling says if Motorola has problems now, wait until Apple’s (AAPL) iPhone comes out. Guy Adami says it forces MOT to buy somebody – because the only way they can grow is with acquisition. Karen adds that buying another company when things aren’t going well is never a good strategy.
The news: Starbucks Corp. (SBUX) doesn't plan to slow its ambitious growth plans, despite recently publicized worries about weakening the coffeehouse titan's brand, Chairman Howard Schultz told investors at the company's annual meeting.
The word: Jeff Macke says investors over reacted to Schultz’ now infamous memo. However, Starbucks started a record label, which Jeff says is a bad sign. Starbucks is a coffee company and the bloom is off the rose. Jeff says the stock is a sell.
BUILDING THE FORTRESS
The news: Fortress Investment Group (FIG) rose 1.71, or 6.4%, to 28.53. Several Wall Street investment firms offered generally upbeat assessments as they started coverage of the first hedge fund manager to go public in the U.S.
The word: Karen Finerman says she saw two upgrades on this stock, one from Lehman (LEH) and the other from Goldman Sachs (GS). However LEH and GS are the investment banks bringing FIG and other hedge funds public. Karen says something doesn’t smell right. She wouldn’t buy them now, and wouldn’t short them either. Just stay away she advises.
The news: A disappointing note was sounded by FedEx Corp.(FDX). Shares of the package delivery company dropped 1.2 percent, or $1.30, to $110.99 on the NYSE after it posted a lower quarterly profit and suggested a slowing economy may weigh on its future growth.
The word: Guy Adami says ’08 earnings growth won’t be spectacular. He recommends owning Fedex at $103, lower than where it is now at $111.
The news: On last night “Fast Money”’ Dylan Ratigan asked viewers to send a text message indicating their favorite small cap name, and the winner was Jones Soda (JSDA).
The word: Jeff Macke recommended the stock about a week ago, and says it’s still a great pick. JSDA is getting more shelf space in stores and he recommends being long in this stock.