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Bulls & Bears | Cavuto on Business | Forbes on FOX | Cashin' In
Bulls & Bears
This past week's Bulls & Bears: Gary B. Smith, Exemplar Capital; Eric Bolling, FOX Business News; Pat Dorsey, Morningstar.com; Tobin Smith, Changewave Research; Marc Lamont Hill, Ph.D, Temple University.
Trading Pit: Paris Hilton v$ Nancy Pelosi: Who's Right on Drilling?
Tobin Smith: All hail Paris! She finally understands "Pelosinomics." Pelosinomics says it's bad to outsource low labor and good to outsource our energy policy. Come on! The only thing Paris doesn't understand is that our actual drilling technology is so advanced that we're "being careful" by an inordinate magnitude. I say "Drill Drill Drill." Pelosinomics doesn't work. All hail Paris Hilton.
Marc Lamont Hill: I love Paris Hilton, she's a great author… but this is the one area that she doesn't have expertise. This is one area that we can't afford to compromise. I don't agree with Nancy Pelosi about a lot of thing, but she is absolutely right here. We cannot allow the American people to be persuaded to make bad decisions with the environment and to choose options that actually won't lower the price at the pump. That will ultimately lead to all sorts of disasters.
Gary B. Smith: Once again Marc thinks that the government knows better than the people and that the government should decide what's good and bad. Drilling is our most efficient way to increase our energy supply, and we should have more of it rather than let foreign companies produce it for us to import. The only thing I don't like about it is the tax-incentives part. Look, if hybrid, electric, wind, whatever, is economically viable - they should be economically viable on their own. Again, it's not for the government to decide what is the best market response to this "energy crisis."
Eric Bolling: Let's hope that the next 30 cents that the price at the pump is down doesn't make people say "maybe we don't need to drill right now." We need to drill now because if we don't, next time we're not $150 a barrel, we'll be talking about $300 a barrel.
Pat Dorsey: This is not as dire a thing as the environmentalists think, nor is the panacea that a lot of the pro-drilling crowd seems to think it is. At the end of the day, oil is a global commodity. Best case estimates are that by drilling every bit of outer-continental shelf we might increase global oil supply by around 3-4 percent. That assumes that someone else doesn't cut back supply by 3-4 percent to keep supplies stable. We don't just drill for oil and suddenly get oil at a very low price.
Be$t Calls to Date (Through August 8)
Eric Bolling: FMC CORP (FMC ): UP 29 percent SINCE 2-15-2008
Pat Dorsey: APOLLO GROUP (APOL ): UP 34 percent SINCE 4-18-2008
Gary B. Smith: AARON RENTS (RNT ): UP 43 percent SINCE 2-22-2008
Tobin Smith: COMPASS MINERALS (CMP ): UP 59 percent SINCE 1-04-2008
Worst Calls to Date (through August 8)
Gary B. Smith: ISHARES OIL & GAS (IEO ): DOWN 24 percent SINCE 5-30-2008
Eric Bolling: VALE (RIO ): DOWN 35 percent SINCE 5-9-2008
Tobin Smith: EMCORE (EMKR ): DOWN 67 percent SINCE 12-28-2007