Money Mail - We Answer Your Questions


Time to dip into the Fast Money mailbag and answer more of your questions.
Nick from Florida

Nick writes, “Can you please explain once and for all the relationship between higher crude prices and profits for companies like Exxon (XOM). As crude prices go up, do profits go up? Or do profits go down on margin squeezes? Should I hold XOM?

Dylan Ratigan explains that the reason Exxon is called an integrated oil company is because it’s an integration of multiple business. One part of that business sells oil to consumers, another part of that business is refining - and in refining, profits are a function of the crack spread.

Guy Adami tells Nick the crack spread has been closing. He recommends selling XOM.

Jay from South Carolina

Jay writes, “Karen, what are your thoughts on MasterCard’s (MA) earnings? Would you be a buyer on the dip? Or wait to buy MasterCard when the Visa IPO comes out in the first part of 2008? Or should I do both?”

Karen Finerman tells Jay she likes MasterCard (MA). However she recommends taking a small position and then adding to it over time.

Lynette from Illinois

Lynette writes, “What are your thoughts about buying Potash (POT) at this level? As you may know, it was upgraded Monday in light of long-term transport issues faced by a Russian competitor. Have I missed the boat?

Pete Najarian tells Lynette it’s late for POT. Don’t chase it, he says.


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Trader disclosure: On Oct 30, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (ATVI), (INTC); Najarian Owns (C); Najarian Owns (BHI) Options, (BIDU) Options, (HAL) Options, (UA) Options, (YHOO) Options, (SNDK) Options, (GOOG) Options; Finerman's Firm Owns (TSO), (WMT), (MSFT), (YHOO); Finerman's Firm And Finerman Own (C), (GS), (HD), (TGT); Finerman's Firm Is Short (MER) And Owns (MER) Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts