Your Questions: Lower Risk Stocks, Tobacco & More...


Question #1:
Gisele from NY is looking for a low risk strategy to generate income. (She was burned by the tech bubble burst.) She wants to know if the guys recommend pharmaceutical stocks such as Bristol Meyers (BMY), or if there is a better low risk play in this sector?

Tim Strazzini says in pharma investors you should look for value as well as a little income. Tim recommends buying GlaxoSmithKline (GSK) below $55 and Johnson & Johnson (JNJ) below $61. For income he recommends Verizon (VZ) which pays a good dividend.

Question #2:
Allen from North Carolina is looking for a defensive stock that he can put money in for a few months and not worry about it. He’s specifically interested in tobacco names and wants to know what Guy Adami thinks about Carolina Group (CG), British American Tobacco (BTI) and other stocks in the space?

Guy Adami says all the tobacco stocks right now are low risk. Carolina Group is up 157% since ’05 and UBS just raised their price target. But, Guy prefers Philip Morris (MO) "when issued” shares. He says that’s the play for ’07.

Question #3:
Eric from Georgia says in the spirit of March Madness he wants to know what Jeff Macke thinks about sporting goods outwear outfit Under Armour (UA).

Jeff Macke says it’s time to sell UA – get out of that stock. Instead Jeff likes Callaway (ELY) golf. They have top ranked products and they’re on the comeback.

Question #4:
Keira from New York asks speculation on ethanol production has pushed up the price of corn futures considerably over the past year. In a nutshell, Keira wants to know if now a good time to get out of corn futures?

Eric Bolling says he was long on corn and then a couple weeks ago he switched into soybeans and soybean meal mostly because he expected there would be a glut of corn. He likes soybeans and wheat now.


Questions? Comments?

Trader disclosure:
On MAR 20, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Bolling Owns (DIS), Gold, Silver, Soybeans is Short Corn. Strazzini Owns (HAL), (YHOO), (MER), (VZ)