Every week or so, CNBC Contributor Herb Greenberg comes along to pick a fight with the guys.
Tonight’s he’s taking issue with two calls from last Thursday’s show: Pete Najarian’s NovaStar (NFI) trade and Guy Adami’s Ameritrade (AMTD) pick.
First up is Pete.
Last week Pete said specialty finance company NovaStar had “for sale” written all over it. But of all the stocks out there, Herb can’t believe Guy would pick NovaStar. The takeover talk is utterly bogus, he says. The business is falling apart and almost everything the company has sold has been borrowed against. What company would find that attractive?
NovaStar is up 16% since its lows in February, Guy says. The smart money is with the takeover because NovaStar was trashed but it still has value – and that’s why the speculation is there.