In Monday’s Fast Money Web Extra, what M&A pair did the FM traders discuss?

In Monday’s Web Extra, Pete Najarian reveals which chip maker he thinks is a buy. Also the latest play on the XM / Sirius merger.

Disclosure: At time of publication, William Trent has no financial positions in XM Satellite Radio (XMSR) or Sirius Satellite Radio (SIRI).

I am proud to host this edition of the Festival of Stocks. Since you are here for some stock picks, let’s get to them!

Rock Your Stock rang in first with Callaway (ELY) is Hot. He says the stock is on a tear and has the fundamentals to back it up.

Rick Casterline at Once More Unto the Breach figures he can sleep when he dies. No way is he going to do it during day 3 of the Berkshire Hathaway Annual Meeting.

Average Joe at Investment Jungle weighs in with a review of Small Cap Watch List (Track at Marketocracy) member First Regional Bancorp (FRGB). Joe and I have frequently been on the same investment page.

Project Stocks submitted Beat the Market With Only 15 Minutes of Work Each Year. The idea is to buy each year’s top performing fund and hold it for a year. Seems simplistic, but it actually has some support from recent academic research.

Neural Market Trends wonders about the effect of financial asteroids on market trends.

Fiscal Times tells us the stocks Business Week ranks as most innovative tend to perform better.

Big Cajun Man has found a real lu-lu.

TJP at Investor Trip explains what he missed when he first got Sirius (SIRI).

Trader’s Narrative is calling a bubble… in China.

Self Investors outlines a successful day trade in Force Protection (FRPT).

Silicon Valley Blogger offers 5 tips for evaluating your portfolio.

George at Fat Pitch Financials presents his five favorite ways to hack into the web’s resources for investors. I downloaded the Excel add-in and am looking forward to trying it out.

Sox First outlines what went wrong with the planned private equity takeover of Qantas.

And what the heck? I’ll toot my own horn by presenting my take on United Industrial Corp. (UIC).

SIRIUS (SIRI) reported earnings:

SIRIUS ended first quarter of 2007 with 6,581,045 subscribers, up 61% from 4,077,747 subscribers at the end of the year-ago quarter. During first quarter of 2007, SIRIUS added 556,490 net subscribers consisting of 192,978 from the retail channel and 364,674 from the OEM channel. In first quarter of 2007, SIRIUS captured 66% of satellite radio segment share, marking the sixth consecutive quarter for leadership.

Total revenue for the first quarter of 2007 increased to $204.0 million, up 61% from $126.7 million for the year-ago quarter. Advertising revenue was $6.7 million during first quarter 2007 and average monthly revenue per subscriber (or “ARPU”) was $10.46. Average monthly subscriber churn was 2.3%, and was consistent with previously provided 2007 churn guidance. SAC per gross subscriber addition was $104 for the first quarter of 2007.

SIRIUS reported a net loss of ($144.7) million, or ($0.10) per share for the first quarter of 2007, a 68% improvement from a net loss of ($458.5) million, or ($0.33) per share for the first quarter of 2006. The adjusted net loss for first quarter 2007 (adjusted to exclude stock-based compensation) improved to ($120.5) million, or ($0.08) per share, a 31% improvement from the adjusted net loss for first quarter 2006 of ($174.0) million, or ($0.13) per share. 2007

OUTLOOK SIRIUS today reiterated the following guidance for the full year 2007:

– Total revenue approaching $1 billion

– More than 8 million subscribers at year-end

– Average monthly subscriber churn of approximately 2.2 - 2.4%

– SAC per gross subscriber addition of approximately $95

Analysts were expecting the company to earn ($0.11) on $212 million in sales. For the full year, they expect $975 million in sales, whcih sounds like “approaching $1 billion” to us.

Key for the company is completing the planned merger with rival XM Satellite radio. The two have been competing for unique content as well as for customers. After the merger is complete, these costs should be more tightly managed and perhaps allow the combined company to actually turn a profit.