The Word on Merger Mania, Specialty Retail and more...


Day Off, Deals On?:
The headline: Will The Long Holiday Weekend Make For A Long List Of Deals?
The word: Pete Najarian’s number one play is Biogen (BIIB). Guy Adami says it would be an easy deal for Pfizer (PFE) and it makes sense.

Pete also thinks Micron (MU) could get taken out. He sees a lot of trading of the June calls and that signals a possible deal, he says. “If you’re short MU, you’re dead,” Jeff Macke adds.

Jon Najarian thinks Cleveland-Cliffs (CLF) is a target after unusual trading in the options and stock itself. CLF traded at 5x normal trading volume today and about 18x in the options. There was also unusual activity in Ryerson (RYI), Jon says. “This stock could go away in one bite.”

A Tale Of Two ‘Tails:
The headline:Gymboree (GYMB) Masters Art Of Earnings Expectations, While GameStop (GME) Has A Lot To Learn
The word: It’s all about under promising and over delivering, Jeff says. He thinks Coldwater Creek (CWTR) is a recipe for a good trade as the excitement level is picking up ahead of its earnings, but the expectation is still low. You have to trade specialty retail when it’s weak, he says.

Is FedEx The Canary In The Coal Mine?:
The headline: Does FedEx (FDX), Transports Weakness Signal Economic Trouble Ahead?
The word: As the “granddaddy of the transports,” FedEx can give be a good predictor of the economy, Guy says. He won’t get bullish on FDX until it goes above $120.

Nasdaq Goes Nordic:
The headline: Spurned By LSE, NASDAQ Agrees To Buy Nordic Exchange Operator OMX AB For $3.7b
The word: “We knew they were shopping and I think they are still shopping,” Jon says. The exchanges print money and they will continue to consolidate – check out the ones that aren’t public like CBOE, he says.


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Trader disclosure: On May 25, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Pete Najarian Owns (BIIB), (ELN), (OXPS); Jon Najarian Owns (AAPL), (BIIB), (BOT), (CLF), (ELN), (INTC), (MSFT), (OXPS), (TRA), (TXN).
For the record: Pete Najarian Owned (OXPS) On 5/21/07; Jeff Macke Owned (JWN) On 5/17/07; Jon Najarian Owned (TRA) On 4/13/07