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Pro Traders: Money Managers About To Chase Google?

In the wake of sensational earnings from Google, Joe Terranova reveals why he thinks money managers chase this stock to $630 by the end of the year.

"I think Google is under-owned," he says. "Goldman removed Google from its conviction buy list and typically hedge funds follow those recommendations. In the wake of these earnings I think money managers now have to chase it. As a result I expect to see the stock push above $600 and ultimately print $630 before the end of the year.”

Terranova isn't the only trader who's bullish.

"I agree that money managers kind of left this stock for dead," says Karen Finerman. "This quarter will remind the Street that Google is a powerful business."

As you likely know, shares of Google surged as much as 9% in extended trade after the search giant reported an adjusted profit that blew past what analysts expected, despite rising expenses.

But Finerman and Terranova are both talking about how to trade the stock over a period of months. If you're a short term trader, Google may not be so attractive.

"With the stock at $590, if you’re a trader I’d be cautious, says Tim Seymour. In the short term this level is where the stock runs into resistance."

"I agree that the stock is getting a little ahead of itself in the aftermarket," echoes Anthony Scaramucci. "I’d be hesitant on the stock if you’re a short-term trader but I like the stock if you can hold it well into next year."

By the numbers Google said it earned $7.64 a share excluding one-time items in the third quarter, against $5.89 a share last year.

Net revenue excluding traffic-acquisition costs for the most recent period rose to $5.5 billion, from $4.385 billion a year ago.

Traffic-acquisition costs (TAC) include money that Web sites pay to advertisers and that they spend to draw traffic. Google's TAC for the quarter totaled $1.81 billion.

Equity analysts who follow Google expected the company to turn in a profit of $6.69 a share on sales of $5.27 billion, according to Thomson Reuters.

> Click here for more coverage of Google earnings

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AMDAdvanced Micro popped 6% in extended trade after the company reported quarterly profit and revenue that surpassed what analysts expected.

By the numbers, the second-largest global supplier of microprocessors reported third-quarter earnings of 15 a share. AMD reported a loss of 18 cents a share during the same period a year earlier.

Sales for the most recent quarter rose to $1.62 billion, up from $1.40 billion last year.

The company was seen earning 6 cents a share on revenue of $1.61 billion, according to a consensus estimate from Thomson Reuters.

What’s the trade?

If you’re a trader I like the stock for a short squeeze, says Guy Adami. But it’s a trade.

Click here for more coverage of AMD earnings

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BEWARE THE BANKS

Bulls were sidelined on Thursday by terrible performance from the banks . What must you know before you place your next bet?

As far as I’m concerned the broad market ‘tell’ is the financials, says Guy Adami. And there are issues in this sector.

As we mentioned at Halftime, investors slammed banks stocks including BofA , JPMorgan and more after all 50 U.S. states launched a joint probe into potentially illegal foreclosures.

The investigation will focus on allegations that some banks did not review documents properly or submitted false statements to evict delinquent borrowers.

Investors worry that an extended investigation could weigh on bank earnings.

Should you prepare for a worst case scenario?

I just don’t believe the worst case scenario is on the horizon, says Paul Miller of FBR in a live interview on Fast. I just don’t think it’s as bad as the headlines make it out to be.

The most likely scenario is that we see a 3-4 month moratorium on foreclosures, he adds. And I think it costs the industry $6 billion. And I’m throwing in another $3 billion in litigation costs. But I’m not in the doomsday camp at all.

If you have the guts to step in, there’s opportunity here. I think ultimately these stocks bounce back, he says.






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Trader disclosure: On Oct.14, 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), (GE), (GOOG), (INTC), (MON), (MSFT), (MOS), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (GLD), (APA), (AAPL), (IBM), (EOG), (HES), (OIH), (OXY), (ORCL), (SU), (VRTS), (XBI), ( C), (JOYG), (RIG), (UPL), (PEP), (FCX), (PFE), (HOC), (NOV), (CRM), (MMM), (MCD), (NKE), (CREE), (ISRG), (XLF), (SDS); Terranova is short (APOL); Finerman and Finerman’s Firm own (JPM); Finerman and Finerman’s Firm own (BAC); Finerman’s Firm own (MSFT); Finerman’s Firm owns (RIG); Finerman’s Firm owns (WMT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts

For Dan Niles
Niles and Alpha One own (DELL)
Niles and Alpha One own (AAPL)

For Joe Terranova:
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Scott Davis
Morgan Stanley makes a market in (MMM), (CAT), (CMI), (DE), (GE), (HON), Bucyrus International Inc., Caterpillar, Cooper Industries, Cummins Inc., Danaher Corp., Dover Corporation, Eaton, Emerson Electric, Fastenal Co., Hubbell Inc., Illinois Tool Works, Ingersoll-Rand, ITT Corp., John Bean Technologies Corp, Joy Global Inc, Lennox International, Manitowoc Company Inc., MSC Industrial Direct, Mueller Water Products, Navistar International Corp., PACCAR Inc., Rockwell Automation Inc., Roper Industries Inc., Sensata Technologies Holding N.V., SPX Corp, Terex, Textron Inc., Thomas & Betts, Tyco International Ltd., United Technologies, W.W. Grainger, Wabash National Corporation, Watsco Inc., Wesco International Inc..

Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: Cooper Industries, Fastenal Co., Honeywell International, Manitowoc Company Inc., Mueller Water Products, Terex, Textron Inc., Wabash National Corporation

Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities of Emerson Electric, General Electric, Hubbell Inc., Lennox International, Manitowoc Company Inc., Sensata Technologies Holding N.V., Wabash National Corporation

Within the last 12 months, Morgan Stanley has received compensation for investment banking services from 3M Co., AGCO, Danaher Corp., Deere, Dover Corporation, Eaton, Emerson Electric, General Electric, Honeywell International, Hubbell Inc., Ingersoll-Rand, Lennox International, Manitowoc Company Inc., Mueller Water Products, Navistar International Corp., Sensata Technologies Holding N.V., Terex, Textron Inc., Tyco International Ltd., United Technologies, Wabash National Corporation

For Brian Stutland
***No Disclosures***

For Joe Lavorgna
***No Disclosures***

For Paul Miller
***No Disclosures***



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