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Does Goldman Still Have Magic Mojo?

Monday, 18 Jul 2011 | 2:06 PM ET

Goldman Sachs might belong to the worst-performing sector in the S&P 500, but one top hedge fund manager still thinks it's best in class. What's more, Skybridge Capital's Anthony Scaramucci thinks the stock is a 'buy' at current levels.

"You're looking at a world-class franchise that's trading at one times book," Scaramucci said, adding that its tangible book value is $119 and its stated book value is $129. With the stock currently trading at $129 a share, he thinks GS is "very cheap."

Being as the New York City-based financial institution has the best core rate of return, Scaramucci thinks it's a buy at book value. Goldman also has a "fantastic" management team, is improving its relations with government regulators and is getting over recent public relations blunders, he added.

Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. But what do the other "Fast Money" traders think about Goldman?

Goldman insiders need to step up and tell us why this stock is a buy, trader Pete Najarian said. Until he sees that, the optionMONSTER.com co-founder wouldn't buy GS.

Stuart Frankel's Steve Grasso said GS was a sell below $140 a share. Since having fallen to current levels, he thinks it's due for a pop in the short term.

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TRADING BANK OF AMERICA AHEAD OF EARNINGS

Bank of America's stock is now in the single-digits and is approaching credit crisis lows. So is there any reason to expect anything out of its earnings on Tuesday, asked CNBC's Scott Wapner.

No, said Grasso. This stock is overdone, though. He thinks it's over sold at these levels. If you are long BAC, he recommends buying shares at current levels. Grasso himself is long BAC, JPMorgan and Citigroup .

Author Stephen Weiss takes another view on BAC.

"You don't make any money being right in the company and wrong in the stock. It's all about stocks, so I would not buy BAC," Weiss said. "I'm going to stick with quality, which is JPMorgan."

Weiss added that investors have to be patient with financials. The more Europe's debt crisis worsens, the worse things will get for bank stocks, he said. He doesn't expect to make money off any financials for a while.

While trader Patty Edwards remains bearish on the banks, she does thinks there are a few diamonds in the rough. Bank of Montreal , for example, is a stock worth considering, she said.

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Trader disclosure: On July 18, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (AAPL), (C), (HPQ), (MSFT), (MS), (TCK), (TER), (PFE), (MRK), (GE) and (PEP). Pete Najarian owns (HAL) calls. Pete Najarian owns (CROX) calls. Steve Grasso owns (AKS), (AMD), (ASTM), (BA), (BAC), (C), (D), (JPM), (LIT), (LPX), (MAR), (MHY), (NDAQ), (PFE), (PRST), (XHB), (XLB) and (XLI). Stephen Weiss is short (X), (FLR) and (PCAR). Stephen Weiss owns (UUP), (TBT), (UGL), (TWM), (QCOM), (EMC), (SDS), (VZ), (HK), (COP), (DVN) and (MSFT). Patty Edwards is long (XLK). Patty Edwards is long the Canadian Dollar. Anthony Scaramucci owns (GS).

STEVE GRASSO
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NYX)
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 (SDS)
Stuart Frankel & Co and it’s partners own (UAL)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (QQQQ)

PATTY EDWARDS
Edwards Owns (AAPL) For Clients
Edwards Owns (AMZN) For Clients
Edwards Owns (HAL) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (POT) For Clients
Edwards Owns (CVX) For Clients
Edwards Owns (SLW) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (PGM) For Clients

ANTHONY SCARAMUCCI
SkyBridge Capital Is A Fund Of Funds Manager
Funds Held May Or May Not Own The Recommended Securities
Scaramucci Is One Of 8 National Finance Chairs For Mitt Romney Campaign
Held a fundraiser for Mitt Romney

CNBC.com with wires.

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BAC
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BMO
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C
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GS
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JPM MLP ETN
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