Fast Money

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Fast Money

Despite 23% Gain YTD, Stick with Bank of America: Finerman

Up and down Wall Street traders are talking about the Teflon stock market and how the S&P gains no matter what.

The path of least resistance seems to be higher even as the overseas financial crisis threatens to flare up, again.

On Wednesday – the day before a critical ECB meeting, the S&P fell into negative territory early in the session but recouped losses and again closed in the green, despite Greece entering a pivotal period in which it must finish a crucial renegotiation of its more than $200 billion of debt.

In fact, the S&P is currently sitting at a 5-month high. Are the gains justified?

Largely the Fast Money pros believe they are; they point to relatively strong corporate earningsand economic data that suggests the recovery is sustainable as two solid fundamental catalysts .


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And with money rotating out of European stocks, the pros say the catalysts mentioned above make the American market seem all the more attractive to equity investors.

However, considering the sharp surge, even the most bullish investors can’t help but wonder how much upside is left in 3 big advancers, Bank of America, Microsoft and Micron .

What must you know?

Bank of America +23 YTD

If you’re a long-term investor Karen Finerman says don’t think you missed the rally in Bank of America just because you didn’t buy it at $5. Although the percentage move is large, as an absolute move it’s tiny, she says.

“Bank of America is trading around half of tangible book value and for a franchise like that – and for the scale that they have – it’s still a big value.”

Microsoft +8% YTD

Karen Finerman also thinks Microsoft presents strong potential for the long-term investor.

Even with new reports of lower than expected PC shipments, Finerman says this stock, “is off such a low base, the valuation remains very compelling, even with recent gains.”

Micron +14% YTD

Pete Najarian, however just can’t understand the gains in Micron.

“I just don’t get it,” he says. “I think Micron is a broken story. They don’t make the type of memory that people are going for – they’re going for Flash memory from SanDisk.”

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Traderdisclosure: On Jan. 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long CSCO; Terranova is long AXP; Terranova is long NFLX; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long MUB; Terranova is long SU; Terranova is long EMC; Terranova is long SBUX; Terranova is long DECK; Terranova is long CSX; Terranova is long SJM; Terranova is long XOM; Terranova is long JNPR; Terranova is long PNC Feb. $60 calls; Terranova is long WFC Feb. $29 calls; Finerman owns AAPL; Finerman owns BAC; Finerman owns JPM; Finerman owns IBM; Finerman owns MSFT; Finerman owns LIZ; P. Najarian is long AAPL; P. Najarian is long BAC; P. Najarian is long C; P. Najarian is long JPM; P. Najarian is long NFLX calls; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long MSFT; J. Najarian is long WLT call spreads

Win Thin
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Dennis Gartman
Gartman long Treasuries
Gartman is long SPY
Gartman is long copper
Gartman is short Euro

Tim Armstrong
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Brian McGough
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Bonawyn Eison
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