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Analyst Likes Cisco, Regional Banks for Value

Cheap stocks abound, but one “Fast Money” pro looked to a large-cap tech stock for good value.

Matthew Lamphier, associate portfolio manager at First Eagle, said the largest holding in his U.S. Value Fund is Cisco, to the tune of $600 million worth of stock.

“It’s really just been valuation. The stock’s come from 100 times earnings down to under 10 if you adjust for the cash,” he said Wednesday. “It’s just really a very cheap stock, a good management team and a good balance sheet.”

Cisco shares closed at $18.99, up 1.93 percent.

Other large-cap tech names among First Eagle’s holdings include Microsoft, Intel, Linear Technologies and Texas Instruments.

“We do own a number of financials, although not the typical large money center banks,” he said.

Regional holdings include BB&T and USBancorp, as well as American Express, Visa, Mastercard, ConocoPhillips and 3M.

While the regional banks avoided the excesses of the subprime mortgage crisis, Lamphier also said there were no homebuilders he would recommend.

“We haven’t found any. We’ve looked and scrubbed those things a number of times,” he said.

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Trader disclosure: On Jan. 4, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova owns APC; Terranova owns OXY; Terranova owns XOM; Terranova owns VRTS; Terranova owns IBM; Terranova owns CSCO; Terranova owns AXP; Terranova owns SBUX; Terranova owns CSX; Terranova owns SWN; Terranova owns AXP; Najarian is long AAPL; Najarian is long BAC calls; Najarian is long C; Najarian is long JPM calls; Najarian is long WFC calls; Najarian is long INTC; Najarian is long YHOO; Najarian is long GE; Najarian is long INTC; Najarian is long MSFT; Najarian is long COP; Najarian is long MOS; Finerman owns AAPL; Finerman owns BAC; Finerman owns JPM; Finerman owns IBM; Finerman owns M; Finerman owns TGT; Finerman owns WMT; Finerman owns MSFT; Seymour is long AAPL; Seymour is long BAC; Seymour is long CSCO; Seymour is long GE; Seymour is long INTC; Seymour is long MON

Brian Stutland
Stutland Equities holds hedged positions in VIX futures and options

Stutland is short NFLX, short puts, long stock

Stutland is long BP and short calls

Stutland owns AAPL

Stutland owns COP

Stutland owns KO

Stutland owns YUM

Stutland owns MSFT

Stutland owns GE

Stutland owns BP

Stutland owns T

Stutland owns INTC

Stutland owns DIA

Stutland owns KMP

Stutland owns ABT

Stutland owns AMGN

Stutland owns CTRP

Stutland owns PG

Stutland owns QSII

Stutland owns CSCO

Stutland owns DBA

Stutland owns EWZ

MacNeil Curry
No disclosures

Dan Niles
Alpha One Capital owns LRCX

Alpha One Capital owns LSI

Alpha One Capital owns TER

Alpha One Capital owns MRVL

Gene Munster
The following companies have been investment banking clients of Piper Jaffray during the past 12 months: ACOM, DANG, DRIV, MOBI, YNDX, YOKU

Piper Jaffray makes a market in the securities of the following companies, and will buy and sell the securities of these companies on a principal basis:

AAPL, ACOM, AMZN, BIDU, DANG, DRIV, EBAY, GOOG, IACI, LOGM, MCHX, MELI, MOBI, PRTS, RLOC, SINA, SOHU, VCLK, WWWW, YHOO, YNDX, YOKU

Deborah Weinswig
An employee of Citigroup Global Markets or its affiliates is a trustee of Target Corp.

Gregory Hertz, CFA, CPA, Associate, holds a long position in the securities of Wal-Mart Stores Inc.

Leo Kulp, CFA, Analyst, holds a long position in the securities of Wal-Mart Stores Inc.

Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of JC Penney Co Inc. This position reflects information available as of the prior business day.

Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Dollar General Corp., Target Corp, Wal-Mart Stores Inc.

Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from Dollar General Corp., Kroger Co, Target Corp, Wal-Mart Stores Inc.

Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Wal-Mart Stores Inc.

Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp in the past 12 months.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Dollar General Corp., Kroger Co, Target Corp, Wal-Mart Stores Inc.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, Saks Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp.

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: CVS Caremark Corp, Dollar General Corp., JC Penney Co Inc, Kohl's Corp, Kroger Co, Macys Inc, Safeway Inc, SUPERVALU INC, Target Corp, Walgreen Co, Wal-Mart Stores Inc, Costco Wholesale Corp.

Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from Dollar General Corp..

Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues.

The Firm is a market maker in the publicly traded equity securities of CVS Caremark Corp, Macys Inc, Costco Wholesale Corp.

Matthew Lamphier
First Eagle US Value Fund is long CSCO

First Eagle US Value Fund is long MSFT

First Eagle US Value Fund is long INTC

First Eagle US Value Fund is long LLTC

First Eagle US Value Fund is long TXN

First Eagle US Value Fund is long BB&T

First Eagle US Value Fund is long USB

First Eagle US Value Fund is long CINF

First Eagle US Value Fund is long BK

First Eagle US Value Fund is long AXP

First Eagle US Value Fund is long V

First Eagle US Value Fund is long MA

First Eagle US Value Fund is long BRK/A

First Eagle US Value Fund is long WRB

Greg Zuckerman
No disclosures

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