THE CHIP TRADE
The news: Although the last 3 trading days have been down days, tech and telecom have been up
The word: Tim Strazzini says SanDisk (SNDK) continues to outperform. As data comes in from Asia it’s clear to Tim this stock is doing the right thing. Tim adds he likes Broadcom (BRCM), but thinks Micron Technology (MU) is going lower.
ADAMI KRAFTS A TRADE:
The news: Since Guy Adami recommended buying “when issued” shares of MO, the stock price has been surging.
The word: Guy Adami likes MO because Kraft has been an anchor, preventing MO from having the correct valuation. Guy says shares are trading at $65 but he feels its worth $78 or so.
OLD ECONOMY EXCITING.
The news: Deep industrial paper stocks are attracting growing interest from private equity investors.
The word: Tim Strazzini says two good names to look at are Weyerhaeuser (WY) and Temple-Inland (TIN). Eric Bolling adds the lumber plays are also doing well, and he recommends Plum Creek Timber (PCL).
GRAIN TRADE UPDATE
The news: Among U.S. agriculture markets, wheat and soybeans ended higher, in part on the belief that soybeans will surge on fallout from ethanol craze.
The word: Eric Bolling says because farmers have moved so many acres from soybeans to corn, the price of corn has flattened out and soybeans have surged. He likes Bunge Limited (BG), Monsanto (MON) and AGCO (AG).
The news: Animal rights groups lauded fast-food chain operator Burger King Holdings Inc. (BKC) on Wednesday for taking steps to use suppliers who do not confine their animals in crates or cages.
The word: Jeff Macke says BKC hopes this decision will help them increase sales. Dylan adds a viewer e-mail who writes “(when talking about fast food) don’t forget about the small players such as Chipotle Mexican (CMG) and Buffalo Wild Wings (BWLD).” Jeff Macke says he likes Chipotle Mexican (CMG)