The Fast Money traders on CNBC discussed ideas for the first trade of Thursday, October 2.
Tim Seymour said he has been “trading around” Pinnacle Foods (PF), and the stock is down 4.5% on a secondary offering. It missed on revenues during last month’s earnings report, but Seymour thinks it is a takeout candidate and he likes the packaged food space. Tim would buy it.
John Najarian thinks Occidental Petroleum (OXY) has been punished too much, and is a buy. This comes a week after the stock was added to the Bofa/Merrill U.S. 1 List, replacing Pioneer Natural, as reported by Seeking Alpha. Its share repurchases, steady dividend increases and growth made it a top listing.
Brian Kelley added NIB (NIB) a Cocoa ETF on the rise of cocoa futures on fears that Ebola will cause a lack of supply. Kelley pointed out at least half of the world’s cocoa production comes from West Africa, and potential travel restrictions are an additional reason for rising futures, along with fears of the disease.
Costoc (COST) was Guy Adami’s pick, and is not up too much ahead of its earnings report. Last week, Citigroup initiated coverage on Costco with a “Buy” rating. The Citi analyst was not concerned with high valuation, given the growth potential of COST.