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Fear And Loathing On The Street

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FEAR AND LOATHING ON WALL STREET

The headline: Fannie Mae (FNM) Cuts Dividend by 30%; Shares Fall

Karen Finerman says she’s not surprised. Let bad news in the financials come out, she adds. The market wants transparency.

Pete Najarian finds the news exciting. If FNM trades at $33 Wednesday morning he says it’s a buy.

That’s a brassy trade, says Jeff Macke. But I like it.

Read more “Fannie Mae Cuts Dividend by 30%; Shares Fall”

MERCK'S POOR PROGNOSIS

The headline: Merck (MRK) Shares End Volatile Day Lower After Disappointing Profit Forecast.

Merck usually underestimates profits, explains Pete Najarian. I like their pipeline.

This is an opportunity to accumulate shares, adds Jeff Macke.

NOKIA HANGS UP ON TECH

The headline:Nokia (NOK) Weighs On Tech Shares After Disappointing Operating Margin Target

Price margins are going to be very tight for NOK explains Pete Najarian. But I think they still have a great deal of upside.

Guy Adami prefers Dell (DELL) as a tech play.

UNFRIENDLY SKIES

The headline: United (UAUA), Delta (DAL), Southwest (LUV), Continental (CAL) Scale Back Expansion Plans, Citing Fuel Costs

Until there’s consolidation in the industry, I wouldn’t participate in these stocks, says Pete Najarian.

They have no control over their own destiny says Jeff Macke. Not a good reason to buy.


AFTER HOURS ACTION: GES

The headline: Guess (GES) rocking after beating, guiding higher

Jeff Macke says the company is known for offering conservative guidance. I think they’re tremendous operators and one of the great stories of the year.


OPTIONS ACTION: SAFEWAY

The headline: Pete Seeing Unusually Options Activity In Safeway (SWY)

Gift cards are going to be a $100 million business for this company, explains Pete Najarian. The options trading suggests to him the stock could go higher.

Jeff Macke also likes this stock.

SOLARFUN: FUN OR NO FUN

The headline: LDK Solar (LDK), Solarfun (SOLF), Solar Stocks Soaring Ahead Of ThinkEquity Conference Wednesday.

Pete Najarian explains he took profits in Trina. Sell into strength he says.

Take our Charles Schwab / Fast Money poll on solar stocks.


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Trader disclosure: On Dec. 4, 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 (ATVI), (DIS), (SWY); Najarian Owns (TSL) Options, (XMSR) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns (JWN), (KSS), (WMT), (YHOO); Finerman's Firm Owns (MSFT) Options, (BIIB) Options; Finerman's Firm Is Short (IJR), (IYR), (IWM), (SPY), (MBI), (LEN); Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Russell 2000 Puts; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC