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So Bad It's Good?

This has certainly been a December to remember for Toyota. But not in a good way.

The automaker just recalled 121,930 cars in China to fix a problem that could result in loss of steering control.

A Toyota spokesman said the company does not provide cost estimates for recalls but said no accidents had been linked to the defects.

Earlier this week Toyota said its global vehicle sales plunged 21.8 percent in November, the biggest drop in eight years.

And just a few days before that Toyota, predicted that this fiscal year it would report its first operating loss in 70 years.

So why is Jeff Macke bullish on Toyota?

“You’re simply out of negative catalysts on the short side,” he says “and the stock has held $60 which is interesting on a technical basis. I’d recommend getting long with a stop at $57.”

“If you want to trade Toyota I’d also buy a put,” adds Pete Najarian. “I think the stock could be bottoming out but bottom pickers can get a hand full of you know what.”

Trading Toyota led to quite a heated discussion. Watch the video now!


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Trader disclosure: On Dec. 26th, 2008, 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 (MSFT), (WMT), (TM), (SDS), (MCD); Pete Najarian Owns (UYG) And Is Short (UYG) Call; CIBC Gartman Index Owns Gold, Natural Gas; CIBC Gartman Index Is Short Crude Oil; CIBC Gartman Index Is Long The Grain Market; CIBC Gartman Index Is Long Hong Kong Shanghai Composite Stock Index; Citibank is a client of Dennis Gartman

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (OFC), (DLR), (EXR), (IGE), (MAC), (DBC), (DBV), (SKT), (UA), (CLB); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights

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