If you’re looking for ways to play oil, Oppeneheimer analyst Fadel Gheit recommends, Whiting , Hess and Occidental , “domestic oil producers that have no exposure to anything that’s happening in the Middle East.”
Value investor Whitney Tilson of T2 reminds the desk that he’s long BP and has been since last June. He likes the stock as a “big cap blue chip that’s trading at a 25% discount to peers.” And he says he’ll likely stay long until the low 50’s.
TECH TOPPING THE TAPE
Aside from oil and employment, the desk also has tech on the radar a day after Apple announced its next generation iPad.
What’s the trade?
Although he’s an Apple fan, Whitney Tilson of T2 thinks the value tech trade is long Microsoft.
”Apple trades at a high teens multiple while Microsoft trades at half the multiple,” he says."
Also he feels Microsoft is a growth story. “Microsoft is growing like crazy, just last quarter they reported 15% revenue growth and 29% EPS growth. That’s fabulous for a company that’s trading less than ten times earnings.”
Hedge fund manager Karen Finerman agrees that Apple is expensive relative to Microsoft but “it’s not crazy expensive,” she says. “Normally I’m in the camp with Whitney but the potential for revenue growth is so high I don’t find the valuations in Apple a problem.”
Joe Terranova says Apple could sell 200 million tablets by 2015. “I think the growth potential is clearly there for Apple.”
Tim Seymour takes the other side. “It’s not expensive but it’s also not cheap, he says. “Not only do they have to meet they have to exceed.” He thinks Apple could disappoint.
And when asked about Nokia Seymour says, “it’s not a broken company but I don’t see it coming back soon.”
Elsewhere in the space, Guy Adami suggests putting Micron on the radar. He says “it should continue to go higher. Things seem to be lining up quite well for them.”
Joe Terranova is watching NVIDIA and says “I think it falls below $20 before it becomes attractive again.”
TOPPING THE TAPE: CITI LEADS FINANCIALS HIGHER
Financials also landed center stage with big banks such as Citigroup gaining sharply.
What’s the bank trade?
Carter Worth thinks patterns in the chart of the XLF look promising. “It’s responding perfectly to the April highs,” he says. In other words he thinks the financials march upward.
MARKET MYSTERY: WHAT'S WRONG WITH THE DOLLAR?
The dollar closed lower against the euro on Thursday.
We know that Thursday’s dollar weakness was partly due to comments from ECB chief Jean Claude Trichet, who said an interest rate hike is possible next month.
But the market is also getting a slew of data points from the US suggesting the recovery in our nation is gaining traction. Why isn’t the dollar performing better?
For insights the desk turned to Peter Boockvar Of Miller Tabak. Get all the details. Watch the vide now!