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Ludicrous Prices

Remember Crazy Eddie? Well, now CEO’s are saying their stock prices are insane. Well maybe not insane, but CEO Andrew Liveris says the prices of his company, Dow Chemical, is ludicrous.

(In case you don’t remember, Crazy Eddie was a larger than life character who always hawked his electronics at prices that he called insane.)

On CNBC Liveris told us, "It is absolutely ludicrous that our stock price is sitting where it is. As I said, my stock price has nothing to do with reality of the quality of the balance sheet, the quality of our cash flows, the quality of our portfolio, the quality of our reward to the shareholders including obviously our dividend."

He goes on the say that he thinks Warren Buffett is doing a brilliant thing by gobbling up shares of companies with solid balance sheets.

You might remember Buffett penned an opinion piece a few days back in which he said, that he's been buying U.S. stocks for his personal account, picking up a "slice of America's future at a marked-down price."

And they’re hardly alone. Eli Lily CEO John Lechleiter echoes the sentiment. "Well if Andrew uses the word ludicrous, I'll use the word ludicrous. I think on a day like this it's good for us all to remind ourselves that there are a lot of good healthy businesses in this country that are generating solid earnings, generating solid sales."

What do you think? Tell us now!









Here's what the traders think!

I like the word ludicrous, says Jeff Macke, it's fun to say. But I've got news for those CEO's. Their stocks are trading on unemployment concerns because once you don’t have jobs, you’ve got problems.

I want Liveris to show us the money, adds Pete Najarian. In the case of Eli Lily they went out and bought ImClone. They showed us the money. I’m still waiting for Dow Chemical.

They have showed you the money, counters Tim Seymour. They went out and bought Rohm & Haas.

Also, Dow Chemical has paid a dividend for 388 straight quarters, adds Guy Adami. But if you really want to talk ludicrous stock prices keep an eye on Ingersoll-Rand.





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Trader disclosure: On Oct.23 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (MCD), (MSFT), (WMT), (SDS), (UUP), (BNI); Seymour Owns (AAPL), (F), (MER); Seygem Asset Management Owns (RIO); Najarian Owns (BNI) And Is Short (BNI) Calls