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Brian Kelly: Buy Microsoft Over HP

Monday, 21 Nov 2011 | 6:20 PM ET

”I’d rather buy Microsoft or Intel . At least, they both have somewhat of a mobility strategy,” says trader Brian Kelly after parsing through the latest Hewlett Packard earnings.

Although Hewlett Packard earnings exceeded Wall Street's expectations and shares spiked about 2% higher in the after market - Kelly just can't get behind this stock.

”Also Meg Whitman didn’t lay out a plan for growth,” Kelly says.

Trader Anthony Scaramucci sees it differently.

He thinks HP presents value over the long-term – as a turnaround story.

”Meg Whitman will clean everything out of there and get expectations down and then I think we see some upside surprise,” he says.

Brian White at Ticonderoga says the same. It’s probably a turnaround story but long-term.”

HP Whitman's on Earnings
HP's Meg Whitman addresses the company's lack of revenue guidance, with CNBC's Brian Shactman & the Fast Money team.

By the numbers, the world's largest technology company by sales said non-GAAP net revenue in the fiscal fourth quarter inched up 1 percent to $32.3 billion. Analysts had predicted revenue of $32.05 billion on average, according to Thomson Reuters I/B/E/S.

For fiscal 2012, HP is projecting earnings of at least $4 per share, excluding items.

However, the company also issued a weak 2012 earnings forecast which led some pros to worry that the technology giant is heading into a testing year.

Anthony Scaramucci isn't worried by the outlook. ”CEO Meg Whitman is trying to be as dour as possible,” he says, “ to contain expectations.”





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Trader disclosure: On Nov 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour is long AAPL; Seymour is long BAC; Adami owns C; Adami owns GS; Adami owns INTC; Adami owns AGU; Adami owns NUE; Adami owns MSFT; Adami owns BTU; Kelly is long AAPL; Kelly is long GOOG; Kelly is long GLD; Kelly is long IBM; Kelly is long STD; Kelly is long CLF; Kelly is short Yen; Kelly is short Mexican Peso; Nations is long SPY; Nations is long call spreads AMZN; Nations is long S&P volatility

For Anthony Scaramucci

Anthony Scaramucci is one of 8 national finance chairs for Mitt Romney campaign
SkyBridge Capital Is A Fund Of Funds Manager
Scaramucci held a fundraiser for Mitt Romney ; Scaramucci contributed to the Romney campaign

For Mike Murphy
No disclosures

For Jeff Hirsch
No disclosures

For Brian White
No disclosures

For Greg Zuckerman
No disclosures

For Larry McDonald
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For Carter Worth
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