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50% Off Sale – Bargain or Buyer Beware

Wednesday, 28 Dec 2011 | 5:17 PM ET

The Fast Money traders have been saying for months that in this current market, stick with what’s working.

In other words, buy relative strength and avoid relative weakness.

But with investors avoiding the laggards, shares in some our nation’s best known companies have gone tumbling.

In fact, we’ve identified 10 marquis brands whose stocks are down over 50% this year. Take a look:

CompanyDecline YTD
Research in Motion-75%
Alpha Natural Resources-67%
Monster Worldwide-67%
MEMC Electronics-65%
Netflix-61%
Bank Of America-60%
AIG -60%
US Steel-54%
Sears-54%
Computer Sciences-52%

The 50% Off Club: Buy or Beware in 2012
The Fast Money traders with the play on Wednesday's markets, and the trade on stocks that have lost more than half their value in 2011. Also, a look at investment opportunities in Treasuries.

Considering many of these companies are household names, are you looking one great big bargain shopping opportunity? Or is this just a case of buyer beware? What's the trade?

Strategy Session with the Fast Money traders

Pete Najarian is bullish on ANR. “It’s been a favorite of mine,” he says. “The stock is now trading at half book value and the P/E value near single digits. When I look at future growth I think it’s either a takeout target or it goes a lot higher.”

Anthony Scaramucci is cautious of Sears. “I think the stock is broken and it will remain flat to down until they unleash a big surprising idea – but a big idea could come in 2012.”

Brian Kelly wouldn’t go near BofA . “They continue to sell off assets and that’s not a good sign for a company. Until they stop selling off assets I wouldn‘t touch it.”

Stephen Weiss remains a Netflix bear.” It’s always a sign of trouble when the model changes. And content costs continue to go up. I still think it’s a short.”






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Trader disclosure: On Dec. 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Kelly is long KRE; Kelly is long IWM; Kelly is long US T-bonds; Kelly is short the Yen; Kelly is short the Swiss Franc; Kelly is short UBS; Kelly is short CS; Weiss is long QCOM; Weiss is long GM; Weiss is long WLP; Weiss is long AAPL calls; Karabell owns shares of APPLE (AAPL); Karabell owns shares of CATERPILLAR (CAT); Najarian is long AAPL; Najarian is long C; Najarian is long INTC; Najarian is long MOS; Najarian is long YHOO; Najarian is long WFC

Ron Insana
No disclosures

Jim Rogers
Rogers owns gold
Rogers owns silver

Nick Pope
Dahlman Rose & Company, LLC has not provided investment banking services to Energy XXI in the past 12 months. It intends to seek to be a financial advisor or to engage in investment banking services with the subject company and may receive compensation for such services during the three months following publication of this report. As a result, investors should be aware that the firm might have a conflict of interest in the future that could affect the objectivity of this report.
Dahlman Rose & Company, LLC makes a market in the securities of Energy XXI.
Dahlman Rose & Company intends to seek to be a financial advisor or to engage in investment banking services with McMoRan Exploration and may receive compensation for such services. As a result, investors should be aware that the firm might have a conflict of interest in the future that could affect the objectivity of this report.
Dahlman Rose & Company, LLC intends to seek to be a financial advisor or to engage in investment banking services with Rosetta Resources and may receive compensation for such services during the three months following publication of this report. As a result, investors should be aware that the firm might have a conflict of interest in the future that could affect the objectivity of this report.
Dahlman Rose & Company, LLC makes a market in the securities of Rosetta Resources, Inc.

Shaw Wu
Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company.
Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or provided other investment banking services for the subject company.
Sterne, Agee & Leach, Inc. received compensation for products or services other than investment banking services from the subject company in the past 12 months.
The Sterne Agee analyst who has active coverage on this company owns a position in the subject company.
Sterne, Agee & Leach, Inc. or its affiliates beneficially own 1% or more of any class of common equity securities of the subject company.



CNBC.com and wires

  Price   Change %Change
ANR
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BAC
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NFLX
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SHLD
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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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