Fox Saturday Morning "Business Bloc" for March 26, 2005

Fox News Channel' s "Cost of Freedom" Saturday Morning shows-- Bulls and Bears started with the Trading Pit segment, discussing the fact that April has been the best performing month for the Dow over the past 55 years, with an average 1.9% gain. So the question, is a rally coming --Bob Froelich from Scudder Investments said yes , Tobin Smith and Chris Russo said maybe yes but it might be a head fake, Pat Dorsey and Scott Bleier said no (Bleier also mentioned he's short TOL). In the Lightning round, discussing C: Froehlich and Dorsey were bulls, Toby, Bleier and Russo were bears. On XOM: Toby, Russo, and Froehlich were bulls, Bleier and Dorsey were bears. On GE: Froehlich was the lone bull, all the others were bears. MSFT: Dorsey and Froehlich were bulls, Bleier, Toby and Russo were bears. In the Stock Xchange segment, Toby picked USU uranium (the one Herb Greenberg hates and Cramer likes), Froehlich picked BUD, Bleier picked COHR--largest manufacuter of lasers in the world--he owns it, Dorsey picked FHN, a regional bank paying 4%, and Russo picked KOMG. In predictions, Bleier says oil has picked for the year, and autos to head up--buy DCX. Dorsey says buy UPS sell FDX, Bob Froehlich says buy KO, Russo says buy MVL on Monday. Toby says SFD for Easter. Pat Dorsey got the line of the day-- "Does anyone else see the irony in a ham stock from Tobin?"
Cavuto on Business started with a discussion of whether the fact that rising gas prices haven't yet hurt the market is bullish. I find it hard to see much value in these discussions, when debates occur over easily verifiable facts--"the money supply is contracting" "no it isn't". The More for Your Money segment discussed possible take over targets-- Charles Payne picked EMC; Jon Najarian picked TSO; Perma-bull Joe Battipaglia says regional bank ASO (but doesn't own it); Ben Stein says WM. Cavuto went Head to Head with former "Governor Moonbeam" and current Oakland Mayor Jerry Brown about government regulation of health care. Oddly enough, Brown defended more regulation, and Cavuto argued for less. In Fox on the Spot, perma-bull Joe Battipaglia says market up 10% up in April, Meredith Whitney says boom in housing prices is over, Jon Najarian says Pontiac or Buick may be dumped, GM may sell off GMAC, and thus GM is a buy and he owns it. Ben Stein says interest rates will stay low, buy stocks. Payne says dump oil stocks, a 10% correction is coming. Cavuto says more people will make living wills (wow, out on a limb there)
Forbes on Fox started with the Flipside, which discussed rising college costs. It is a fact, and a big concern, but once again there was disagreement over basic facts ("More kids are getting grants than loans" "No they aren't"). The only novel (though convoluted) point I heard was that the problem is that employers use college degrees as a credential, even when it really isn't relevant to necessary skills. Again, little useful information. In Focus discussed social security reform and the consensus was that private accounts are probably not going to happen. The Informer segment discussed rising gas prices. VLO was mentioned because they are good at refining "sour crude" lower grade crude that not all refiners can handle. PKZ was also mentioned. The Makers and Breakers segment featured Adam Bold, who was pushing CAMOX (has beaten S&P every year of its existence) and FFSCX, a small cap fund.
Cashin' In for the umpteenth time discussed whether there was a housing bubble. Wayne Rogers and Herb Greenberg said there is. Scary fact--in some sections of California, only 18% of households can afford a new home. In the Best Bets segment, Jonas Max Ferris picked WMT, but Jonathan Hoenig and Wayne Rogers said its dead money (Rogers said TGT might be better in this sector). Rogers picked PG as a defensive play, Hoenig said it was a good defensive pick, like CLX and PYX. Hoenig's pick was SNE, but said NWS was better in that sector. In the Money Mail segment, Wayne Rogers was asked what he looks for in a stock making a bottom. He said he looks for a drying up in volume, a formation like a double bottom , or cup with handle, then a rising price with rising volume. Hoenig says he still owns SPI as well as other international utilities. In the Stock of the Week segment, Wendell Perkins of Johnson Family mutual funds picked WYE and Wayne Rogers liked it.