BAD LOAN BUST:
The headline: Sub-prime Lender New Century (NEWC) Files For Chapter 11 Bankruptcy
The word: Tim Strazzini says the news wasn’t a surprise. He adds the negative news that took the industry lower came from M&T Bank (MTB) which said mortgages are going to hurt regional banks. Tim says the trade is avoid the regional banks.
The headline: Starwood (HOT) Shares Surge After CEO Resigns Over Clash With Board
The word: Guy Adami says The Street didn’t like the old CEO and Starwood is going to hire a new CEO who is more Wall Street friendly.
GRAIN IN PAIN:
The headline: Corn Sees Biggest 2-Day Plunge In More Than A Decade After Crop Report
The word: Eric Bolling says investors who have never traded a weather related commodity should put on their seatbelts. (Evidently it’s going to be a bumpy ride.) He says the trade is to buy and hold PowerShrs DB Agricultural Fund (DBA) which is made up for corn, wheat, sugar and soybeans.
GETTING AHEAD OF GIZMOS:
The headline: Best Buy (BBY), Circuit City (CC) To Report 4th Quarter Earnings Wednesday Before The Bell
The word: Jeff Macke says runaway from CC and reiterates his Best Buy play from last week – which was buy BBY April $50 call options. Jeff adds that investors should not bet money they can’t afford to lose, because calls are dangerous.
MCMAHON MATCHES MACKE:
The headline: World Wrestling Entertainment (WWE) Chairman Vince McMahon Loses To Donald Trump, Gets Head Shaved
The word: Jeff Macke (who is folic-ly challenged) says Vince looks better! And as publicity stunts go, on a scale of 1-10, this was an 11!