MBA students shine on CNBC show.
Elizabeth Digges, GB’09, earned an “A” on “Grade the Trade,” a segment of CNBC’s Fast Money. The show presents hypothetical scenarios to M.B.A. students and gives them three hours to research the topic. Then they have 30 seconds to recommend trades on live television.
Digges’ scenario involved Muqtada al-Sadr taking over Iraq.
“In the short run, you should get out of Halliburton,” she quickly advised. “Short HAL and KBR (Halliburton’s spinoff) because of their exposure in Iraq.” Digges further recommended shorting exchange-traded funds that mirror the S&P 500, shorting the U.S. dollar, going long on oil futures, buying Chevron, Exxon and gold.
“In the long term, assuming a U.S. intervention, I would buy military contractors General Dynamics, Northrop Grumman and Lockhead Martin,” she said, as her 30 seconds expired.
The show’s expert traders were clearly impressed. Panelist Pete Najarian gave her an A without hesitation.
On month later, a second Richmond M.B.A. student, Alex White, ’01 and GB’09, appeared on the show. White’s question was, “Retail deal-making heats up as KKR buys Macy’s and Eddie Lambert’s Sears buys Safeway. What are you buying? What are you selling?”
White said he would buy Kohl’s, Dillard’s and Supervalu because they would become short-term takeover targets. He would invest longer term in Wal-Mart. Panelist Jeff Macke gave him an A-.
Let us know what you think about this story. Send e-mail to krhodes@richmond.edu.
