The Word On Sallie Mae, Paper Stocks & More



The headline: Sallie Mae Soars After Agreeing To $25B Buy out From JC Flowers, Other Private Equity

The word: Guy Adami says Bank of America (BAC) and JP Morgan (JPM) will each own 24.9% of Sallie Mae. The loser he says is First Marblehead (FMD), a firm which has contracts in place with both banks to help market their student loans. The concern is, after this deal the two big banks won’t farm out the business to First Marblehead.


The headline: Temple-Inland (TIN), And Other Paper Stocks Surge Today Amid (TIN) Restructuring

The word: Tim Strazzini says speculation has been brewing for a while that
Weyerhaeuser Company (WY) might be converted into a REIT. Consequently, TIN was strong on the news of its restructuring.


The headline Jones Soda (JSD) Shares Skyrocket On Unusually High Trading Volume

The word: Jeff Macke says when he first told viewers about the stock it was trading around $18. Now the stock is $31.50. He says investors should get out – it’s time to sell.


The headline: Citigroup ( C) Downgrades Some Of Eric Bolling’s Favorite Investments; BHP Billiton (BHP) and Tesoro (TSO).
The word: Eric Bolling says "Nice timing, Ciitigroup!" TSO is up 65% year to date and BHP is up 25% year to date. However, he agrees, it’s time to take the money off the table.


The question: A Viewer Asks About The "Sell In May – Go Away" Summer Slowdown Strategy.

The word: None of the guys subscribe to this theory. Eric Bolling says buy in May. Guy Adami adds it’s a nice rhyme, but nothing more. These kinds of things never fly with me, says Tim Strazzini. Jeff Macke calls it garbage.

Questions? Comments?

Trader disclosure:
On APR 16, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Strazzini Owns (POT), (TIN), (YHOO), (WY) Bolling Owns (NMX), Gold, Silver, (SZE), (VE) Najarian Owns (WM), (ETFC), (XLF), (EWBC)