The Word On Telecom, Amgen, And More...


The guys go behind the headlines and give you the traders take on the mystery rally in telecom shares... failed drug trials... Goodyear's sell-off... and more. Find out where they see fast money.


The news: Telecom shares lead S&P to ITS biggest weekly gain since March 2003; What's behind the mystery rally in AT&T (T) And Verizon (VZ)?

The word: Dylan Ratigan says the iShares Dow Jones US Telecom ETF (IYZ) is up 3% over the last 5 days and turns to CNBC’s Silicon Valley Bureau Chief, Jim Goldman for insight.

Jim says in just a couple days an important trade show in Orlando will get underway and big announcements are expected.

Tim Strazzini adds after an AT&T (T) meeting, Merrill Lynch (MER) gave details on price stability in the wireless space which investors liked hearing. Tim adds Merrill is also raising their price estimates on AT&T, because a lot of wireless players are out of the market. He says it’s pretty much just AT&T (the old Cingular) and Verizon.

Eric Bolling says the long term charts look great especially for NIH Holdings (NIHD) which is is the Nextel wireless division.

Guy Adami says two government contracts are coming out – the first is valued at $20 – $40 billion. Guy thinks it's these contracts are making the stocks rise.

Jim Goldman adds that excitement is building for the Apple’s (AAPL) iPhone and the whole idea of making the technology easier. If Apple can shift the industry to an “ease of use” platform. Jim believes that will create opportunities for other companies, such as Palm (PALM) , Motorola (MOT) and Research In Motion (RIM).

Jim adds that the excitement isn’t just limited to the wireless companies, it’s also about the back end too - companies that provide the hardware such as Akamai (AKAM) and Cisco (CSCO).

The news: It’s hard not to notice, when Big Ben Bernanke speaks, the market goes up.
The word: Eric Bolling says the trend is your friend. Bernanke is going to speak on Wednesday. Eric doesn’t recommend shorting too much into the speech.

The news: Shares of Amgen (AMGN) and Genentec (DNA) fell sharply after the companies halt clinical trials of cancer drugs.
The word: Guy Adami says Amgen is down 25% since January – that’s a monster move. Meanwhile, ImClone (IMCL) was up 13% - but the stock Guy comes back to is Gilead (GILD) – which is trading right around it’s 52 week high. Guy says he loves GILD.

The news: A “Fast Money”viewer asks Jeff Macke to update his General Mills (GIS) trade.
The word: Jeff Macke likes the margins General Mills has created with new products such as fruity Cheerios. He says investors should still own the stock.

The news: Citigroup ( C)shares reamin flat as CEO comes under pressure to make a rival bid for international bank ABN Amro (ABN)
The word: Tim Strazzini says ABN Amro owns banks all over the world and thinks if Citigroup doesn’t make a bid for ABN they will probably try and buy some of the assets that are sold-off after the deal. But either way it doesn’t make Tim want to buy the stock more or less.

The news: The pace of U.S. existing home sales unexpectedly rose in February, increasing 3.9% - the biggest rise since March 2004.
The word: Eric Bolling says the home builders still went down this morning, but the REIT’s acted well on the news. Eric says Simon Property Group(SPG) was up – as was American Campus Communities (ACC). Jeff Macke warns investors not tot mix up the homebuilders with the existing home sales or the REIT’s. They are different businesses.

The news: Goodyear Tires (GT) looks posed to sell-off some assets.
The word: Guy Adami says the move will reduce debt. He adds the stock is up 212% since July and they’ve had 3 straight upgrades in the last month. Guy recommends investors stay with this company because it’s working.


Questions? Comments?

Trader disclosure:
On MAR 23, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Bolling Gold, Silver Strazzini Owns (T), (VZ), (MPEL), Soybeans, Is Short Corn