Streetheart - A Stock That Gets Big Love From Wall Street

Tonight’s streetheart – a company loved by Wall Street that the guys are highlighting for you – is Kirby (KEX), a shipping company that runs chemicals and petroleum on inland waterways like the Mississippi River. It currently has four buys and no sells from analysts. A Cantor Fitzgerald analyst recently said the company has a “strong balance sheet, robust cash flow” and a “dominant position within a fundamentally strong industry.”

The guys got Kirby CEO Joe Pyne on the phone to talk to him about his company – and why it has become such a Streetheart.



Pyne says his company is correlated inversely to the price of oil: when oil is low, the stocks for the companies that make the chemicals Kirby carries tend to go lower with it.

Pyne also says a lot of Kirby’s success has to do with a strong economy, and a tight supply and demand situation. His largest expenses - other than building barges - are crew costs, followed by maintenance and then fuel. And since Kirby is not currently building many barges, the company’s expenses are not as great, he says.

So is the stock as sweet as Wall Street seems to think it is? The guys are lukewarm. Neither Eric nor Guy love the stock, Jeff would be a holder and Tim says he likes the story but would wait a few months to buy.

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 10, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
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LaVorgna Is Deutsche Bank's Chief U.S. Economist