DIAMOND IN THE ROUGH:
The news: Upscale jewelry retailer Tiffany & Co. (TIF) says fourth-quarter net income was nearly flat, weighed by an impairment charge. The company offers a bullish first-quarter outlook, sending shares higher in premarket trading.
The word: Jeff Macke says he loves the price action of this stock. He feels investors should get long Tiffany’s.
BECKMAN COULTER BUYS BIOSITE
The news: Beckman Coulter, Inc., (BEC) maker of biomedical laboratory instruments, is acquiring the biomedical research company Biosite, Inc.(BTSE) for approximately $1.55 billion.
The word: Guy Adami says BEC paid a 53% premium for BTSE. He says the deal tells him, the space will continue to be in play.
STENTS VS. DRUGS
The news: Roughly half a million people a year with chest pain are needlessly having their arteries unclogged when taking drugs alone is just as effective, suggests a landmark study that challenges one of the most common practices in heart care. The stunning results found that angioplasty did not save lives or prevent heart attacks in non-emergency heart patients
The word: Tim Strazzini says stents are now a battleground for margins. Abbott Labs (ABT) just came out with a new stent which is bad news for Barr Scientific (BARL). For a trade, Tim likes buying Abbott Labs here.
The news: Analysts at Credit Suisse expect GameStop (GME) to perform well in the 4th quarter of 2007, and continue to generate significant earnings growth until 2010.
The word: Eric Bolling says the chart looks great. He calls it a great stock that no one talks about. Jeff Macke agrees.
The news: On Friday’s show Dylan asked viewers to text message their pick for hottest stock this week. The winner was Vonage (VG) which jumped 12% today.
The word: Tim Strazzini says this company will be lucky if they’re in business in a year. He says the stock came public in the low teens and has been straight down ever since. Dylan asks if anyone else sees VG differently, but all the guys stay quiet.
OIL & GOLD
The news: Dylan explains that a wager was placed early this year between our own Eric Bolling and Mad Money’s Jim Cramer. The bet was over which sector would perform better over the course of the year. Eric chose oil and gold - wagering it would outperform Jim’s selection, the financials. Today Jim Cramer recommended oil and gold.
The word: Eric says that’s the top. If Cramer says get in – get out! (Of course, he’s kidding – Eric is very bullish on gold and oil.) Dylan adds he feels a war coming on.