The Guys vs. Greenberg


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.

“I’m going to beat the Pit Boss on this one,” Herb says. He’s convinced this company has been left for dead, but Dylan rules against him. While Herb makes some good points, Dylan says, Pete’s got the hot hand lately!

Also last Thursday, Guy Adami reiterated his buy on TD Ameritrade, which is at the center of its own M&A rumors.

But the stock is already up 33%, Herb says. What more could CEO Joe Moglia do?

Guy points to a comment from competitor Charles Schwab, saying an E*Trade/Ameritrade merger would be good for the industry. Also, “you don’t bet against Joe Moglia,” he says.

Ameritrade already trades at a premium to others in the sector, Herb says. He doesn’t see it going much higher.

Once again, Herb gets shot down. Dylan isn’t betting against Moglia either. Guy wins the round and Herb goes out 0-2.

There’s always next week, Herb!


Trader disclosure: On June 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Bolling Owns (BP), (ICE), (NMX), (T), Natural Gas; Is Short (FXI), Owns (FXI) Puts; Najarian Owns (MS), Owned (MS) on 6/13; Seymour Owns (AAPL), (BP), Gazprom, (RDS.B), (SBUX), Uranium; Red Star Asset Management Is Short (EEM), Owns Gazprom, Lukoil, Rosneft, Is Short (XOM), (EEM); Gazprom and Lukoil Are On Pink Sheets in U.S. But Trade on Exchange in London CNBC is a service of NBC Universal and Dow Jones
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