Treasures in the Trash: 8 Stocks That Were Oversold
Investors get your shopping lists ready; the The Fast Money pros think it's about time to hit the buy button.
And yes, they're aware of the market swings - they know August has been the most violent month for stocks since the collapse of Lehman in 2008.
But the gang says some stocks have just gotten too cheap to pass up, even amid all the market the madness.
What are they buying, right now? How are the pros positioning? Following you'll find the Fast Money treasures in the trash. That is, 8 stocks that appear oversold.
Instant Insights with the Fast Money traders
Pete Najarian sees opportunity in Starbucks and pulled the trigger at $34. Fast Money’s Pit Boss likes the same store sales growth as well as margins. And even with rivals lowering coffee prices, he thinks Starbucks remains attractive.
Najarian also likes the SLV. He thinks the ETF that tracks silver found a base right around $37, which is a key technical level. “Ever since then it’s bounced and moved to the upside,” he says. Also Najarian likes the options action. “The SLV August 43 calls – a lot of activity.” Najarian thinks these influences all signal upside.
Trader Patty Edwards suggests a retailer. “I like Nordstrom ,” she tells us and she added to her position on the pullback. "It's down 15% just since the 15th of this month, that's too much." Edwards thinks the management team at the department store is reason enough for a long position. And if you’re worried about the high-end, she says don’t be. “If they thought the high-end was cracking they would have warned.”
Edwards also suggests a long position at Walter Energy. “It’s 45% off the highs – the world has not slowed down that much,” she says.
Trader Steve Cortes reaveals that he added to his position in Walmart during the sell-off. Fast Money’s El Capitan likes the recent price action, “it’s holding above $50,” he says. “And it’s a North America story – the company is relatively insulated from troubles in Europe,” he says. Cortes also thinks declining prices at the pump will give Walmart shoppers a little more cash to spend for back-to-school.
And Cortes also has another idea, “if you’re looking for a tech trade look at Intel . Unlike most tech names it provides a fantastic dividend yield.”
The concept of yield is something trader Dan Dicker also likes. “They’re boring but I’m moving into MLPs,” he says. The names he suggests include Enterprise, and Kinder Morgan.
THE DEATH OF THE PC: LEO MISFIRES W/ HP
HP is arguably the big loser of the session with shares tanking after the company said it planned to spin off its PC business.
How should you trade it now?
Find out from Rich Kugele of Needham. Watch the video now!
MONEY IN MOTION – CURRENCIES NOW
Where should you put money to work when central bankers attack the safe havens of late, namely the Swiss franc and the Japanese yen?
Find out from Camilla Sutton of Scotia Capital. Watch the video now!
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Trader disclosure: On August 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Cortes owns (JNJ), (WMT), ( SO ), (GS), ( MS) and crude. Steve Cortes is short Gold & Silver. Pete Najarian owns (AAPL), (C), (HPQ) and (MS). Tim Seymour owns (AAPL) and (BAC).
Trutina Financial owns (GOOG) For Clients
Trutina Financial owns (AMZN) For Clients
Trutina Financial owns (AAPL) For Clients
Trutina Financial owns (C) For Clients
Trutina Financial owns ( HPQ ) For Clients
Trutina Financial owns ( LQD ) For Clients
Trutina Financial owns ( MUB ) For Clients
Trutina Financial owns ( TGT ) For Clients
Trutina Financial owns ( JWN ) For Clients
Trutina Financial owns ( WLT ) For Clients
Trutina Financial owns ( WMT ) For Clients
CNBC.com with wires.