Shares of your local bank, names like California's Wells Fargo (WFC) and Pennsylvania's PNC Bank (PNC),have taken a beating on concerns about bad housing loans. But this week, redemption could come in the form of first quarter earnings reports. Should you buy your bank?
OptionMonster, Jon Najarian joins the guys for this conversation via satellite from Chicago.
Jon Najarian likes East West Bancorp (EWBC) one of many regional banks that he expects to blowout earnings.
He also likes E*Trade (ETFC) because there’s a lot of aggressive buying in this name. Jon explains this company is a great “tell” because they’re involved in banking, mortgages, and the brokerage space.
"Be careful of mid-cap and small cap regional banks," warns Tim Strazzini. Those with tighter control over loans will probably perform well. But, he adds "investors won’t know if the stock has been oversold until its too late."
Tim thinks banks such as First Horizon (FHN), Horizon (HBNC), Sovereign (SOV) are dead money.
Guy Adami likes U.S. Bancorp (USB) into earnings.
Dylan Ratigan reminds investors that Capital One (COF) also reports earnings this week.
On APR 16, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Strazzini Owns (POT), (TIN), (YHOO), (WY) Bolling Owns (NMX), Gold, Silver, (SZE), (VE) Najarian Owns (WM), (ETFC), (XLF), (EWBC)