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Scaramucci: Could This Company Aggressively Buy Back Stock?

Monday, 19 Nov 2012 | 5:53 PM ET

It's no secret that Wall Street often overreacts to catalysts – even the smallest catalysts.

And with the fiscal cliff potentially triggering a series of automatic tax hikes and spending cuts in excess $50 billion, it's no surprise that some investors have panicked and run for the exits.

But panic selling is called panic selling for a good reason – it's preceded by panic. Typically, stocks are oversold when investors panic.

Like Warren Buffett often says, perhaps you should you be greedy while so many others are fearful.

Pros Adami and Scaramucci: Best Cliff Trades
The fiscal cliff might not be all bad. Fast Money traders Guy Adami and Anthony Scaramucci think it's generated a few very attractive buying opportunities.

Two of the Fast Money traders think sure think so.

Anthony Scaramucci, managing parting of SkyBridge Capital, said as a result of fiscal cliff fears Microsoft is incredibly cheap.

"30% of the market cap is in cash and it has a free cash flow yield of 13%," he said. That alone is reason enough to buy.

But Scaramucci is buying with both hands. He believes Microsoft wants shares to go up and intends to put cash to work to achieve that goal.

"And with tax rates probably going up it makes sense that they would soak up shares," he said. And even if we go off the fiscal cliff, Scaramucci still likes Microsoft. "If that happens it's a defense play."

All told Scaramucci said, "For 2013, I think the stock is cheap and an aggressive buy."

If you're looking for other trades Guy Adami, managing director of stockMONSTER.com, suggested the defense sector. Even though the fiscal cliff could result in cuts totaling over $50 billion, Adami likes the space.

He doesn't think cuts will be that deep – and even if they are he thinks a lot is priced in. "My plays are long Raytheon andL3, " he said. "They're terrific."



Posted by CNBC's Lee Brodie

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Trader disclosure: On November 19, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long RLGY; Karen Finerman is long MHP; Karen Finerman is long FL; Karen Finerman is short SPY; Karen Finerman is short MDY; Pete Najarian is long AAPL; Pete Najarian is long BAC; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long MRK; Pete Najarian is long INTC; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long BAC; Anthony Scaramucci is long GS; Anthony Scaramucci is long FB; Anthony Scaramucci is long GOOG; Scott Nations is long BAC; Scott Nations is long BAC CALLS; Scott Nations is long SPY; Scott Nations is long S&P VOLATILITY

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