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Value Trade Vs. Value Trap?

Following some big earnings these last two weeks, a lot of stocks now appear to be cheap from a valuation perspective.

But which are value trades and which are value traps?

Pfizer - Value Trade

I think Pfizer is a very cheap stock and there are low expectations for this name in the market, explains Anthony Scaramucci. It provides a 4% dividend yield in a 3% Treasury environment. Why not get paid to wait?

15 is a key level in Pfizer, adds Steve Grasso. If it breaks below that point I’d dump the stock.

On April 28th Scaramucci presented Pfizer as his Hedge Fund Trade of the Week. Click here to read that post.

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.

Tomorrow's Trades - Capital Ideas Into Year's End


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Trader disclosure: On August 3rd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (F); Finerman owns (AAPL); Finerman owns (BAC); Finerman’s firm owns (BAC); Finerman owns (BP); Finerman’s firm owns (BP); Finerman owns (C); Finerman owns (CVS); Finerman’s firm owns (CVS); Finerman owns (FLS); Finerman’s firm owns (FLS); Finerman’s firm owns (GLW); Finerman owns (JPM); Finerman’s firm owns (JPM); Finerman’s firm owns (KFT); Finerman’s firm owns (PLCE); Finerman’s firm owns (RIMM); Finerman’s firm owns (SKS); Finerman's firm owns (ARM); Finerman's firm owns (LEA); Finerman & Finerman's firm owns (RIMM); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Grasso owns (ASTM), (ABK), (BAC), (BA), (BGP), (C), (CSCO), (DYN), (JPM), (LPX), (MO), (NDAQ), (PFE), (PRST); Kelly owns (BP) puts

For Anthony Scaramucci
Scaramucci and SkyBridge Capital owns (F)
Scaramucci and SkyBridge Capital owns (PFE)
Scaramucci and SkyBridge Capital owns (WMT)
Scaramucci and SkyBridge Capital owns the S&P 500 Index
Scaramucci and SkyBridge Capital owns the U.S. Dollar

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

For Brian Kelly
Accounts managed by Kanundrum Capital own (RIMM) call spread
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXI
Accounts managed by Kanundrum Capital own Euros
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (OIH)
Accounts managed by Kanundrum Capital own (PFE)
Accounts managed by Kanundrum Capital own (INTC
Accounts managed by Kanundrum Capital are short the U.S. Dollar

Peter Boockvar
***No Disclosures***

Colin Gillis
***No Disclosures***

Scott Nations
***No Disclosures***

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