They looked like hot stocks. So how are the traders playing Morgan Stanley, Potash and more now that they’ve been burned?
Steve Grasso
On July 20th the Governor thought a move higher in the casino space was nothing but a losing bet. At the time he said, “Hold back on MGM , LVS and other casino stocks purely on technical basis. I think you've got to hold back on the casino names."
As it turns out Lady Luck was not smiling on this trade. Over the last month shares of MGM are about 7% higher while Las Vegas Sands soared nearly 40%. What does Grasso have to say for himself?
We've seen a nice rally in almost every stock since that time, he says. I'd still stay away from casinos.
Joe Terranova
On August 6th The Liquidator turned bullish on a bank. “If you look at Morgan Stanley , the trade has been to buy every dip this year. Why? Because the stock moves higher on every dip subsequent to when the bad news comes out,” he said.
Unfortunately this trade left Terranova weeping all the way to the bank. Since his call shares of Morgan have plunged 10%. So what does he have to say for himself?
Morgan is having trouble at $30, but I still like it, says Terranova.
Tim Seymour
On August 19th The Ambassador thought a fertilizer company was well positioned for growth “A company like Potash ,” he said. “They've got this new paradigm where the price of their underlying commodity triples or quadruples.”
As it turns out this fertilizer trade was anything but fertile. Since he said to get long shares of Potash are down about 7%. So what does he have to say for himself?
I'm sticking with this trade, says Seymour. I still believe in it.
In case you're wondering, Guy Adami gets a pass this week.
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