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Buy Retail Stocks on Falling Crude Prices?

If crude prices start to pull back, should you put money to work in retailers?

That would be the conventional wisdom considering lower prices at the pump, usually make shoppers more willing to open their wallets at the mall.

"Typically we see middle income consumers living paycheck to paycheck. So whatever money's not going in the gas tank, and that's good for the apparel retailers," says Morgan Stanley analyst Kimberly Greenberger in a live interview.

But Greenberger also cautions investors not to run into retailers too quickly. She says you need to see sustained pullback in oil for a month or so before it bodes well for the apparel retailers and discretionary names.

But if you’re looking for a trade, Greenberger does have some ideas.

When asked which names in the space could make good LBO candidates she says Ann Taylor and Children’s Place . “Those are two names screening incredibly well," she says. "If you look at the margin opportunity, these names look interesting for a privatization."





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Trader disclosure: On May 5, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (BAX); Terranova owns (SLV); Terranova owns (TCK); Terranova owns (APA); Terranova owns (HOC); Terranova owns (OXY); Terranova owns (UPL); Terranova owns (FCX); Terranova owns (BX); Terranova owns (V); Terranova owns (VRTS); Terranova owns (JPM); Terranova is short (NFLX); Terranova is short S&P Futures; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman owns (C); Finreman and Finerman's firm own (CVS); Finerman's firm owns (IBM); Finerman's firm owns (JPM) and is long (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm own (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's firm is short (IWM), (SPY), (MDY); Finerman's firm owns s&p puts; Finerman's firm owns Russel 200 puts; Seymour owns (AA); Seymour owns (AAPL); Seymour owns (F); Seymour owns (POT); Seymour owns (SLW)

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