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Pops & Drops: Palm, Prologis...

Following are the week’s biggest winners and losers. Find out why shares of Palm and Prologis popped while CME Group and MetLife dropped.

POPS (stocks that jumped higher)

Palm (PALM) popped 29%. The maker of the Treo received a capital infusion of $100 million from Elevation Partners LP. – Get out of this stock, exclaims Jeff Macke.

Red Hat (RHT) popped 6%. The largest seller of Linux software reported revenues rose 22% and earnings beat estimates. – I’d be careful of the software industry right now, says Pete Najarian. You’ve got to be nimble.

Prologis (PLD) popped 47%. Deutsche and Wachovia upgraded the firm after they agreed to sell operations in China. – I’d stay away, says Dennis Gartman.

DROPS (stocks that slid lower)

CME Group (CME) dropped 15%. The exchange received CFTC approval for a CDS clearinghouse but still needs the okay from the SEC. – $233 is the 50-day moving average and I think it gets above it, says Joe Terranova.

MetLife (MET) dropped 11%. Fear of more defaults in real estate dragged down this stock. MET has 12% of its portfolio in commercial mortgages. – It’s not a good time to be in the mortgage business, says Dennis Gartman.

AK Steel (AKS) dropped 9%. Deutsche Bank downgraded rival US Steel. – Steel stocks are volatile; they’re trades but not investments, counsels Pete Najarian.

Valero (VLO) dropped 9%. The refiner moved in the same direction as this week’s crude prices, lower. – Until gasoline reverses course Valero will likely struggle, muses Joe Terranova.

Walgreen's (WAG) dropped 9%. The drug store posted an 11% decrease in first-quarter profits and missed estimates. – I’d avoid this stock, says Jeff Macke. I think it goes lower.

Wells Fargo (WFC) dropped 6%. The bank dropped after Wachovia’s shareholders approved the merger. – I like this stock and I’d own it longer term, counsels Joe Terranova.

Peabody Energy (BTU) dropped 5%. The coal miner finished lower for the week, despite making impressive gains on Friday. – Coal seems awfully cheap to me, says Dennis Gartman. I’m a buyers.

Electronic Arts (ERTS) dropped 12%. The video game maker reported slow holiday sales and they laid off 10% of their workforce. – They’ve got a stale pipeline, says Jeff Macke. I’d stay away.

Textron (TXT) dropped 15%. The maker of Bell Helicopters and Cessna aircraft cut 2200 jobs and exited all finance businesses other than those that serve its manufacturing unit. – The forward forecast isn’t too good either, adds Pete Najarian.





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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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