Question #1: Andrew from Maine believes Bank of America (BAC) shares moved lower recently due to concerns that the subprime slime might spread. He thinks this stock is currently undervalued and wonders if it’s a good investment for the next 12 to 18 months?
Pete Najarian says he likes Bank of America but he likes JP Morgan Chase (JPM) more because he has a lot of confidence in James Dimon, JP Morgan’s Chief Executive.
Question #2: Elisa from Alaska wants to know if this is a good time to buy Tesoro (TSO) and if the company’s upcoming 2:1 stock split should influence her decision?
Eric Bolling recommends owning TSO here and after the split. He explains the “heat crack” is $15.50 which is extremely high. Typically it’s expensive in the winter, but not this time of year.
Question #3: Brian from Pennsylvania anticipates a heavy publishing schedule this year, and asks if he should buy Barnes & Noble (BKS) or Border's (BGP) ahead of earnings?
Jeff Macke says don’t buy BKS or BGP. The stock was up on speculation that the two companies would merge, but Jeff doesn’t think it’s likely.
Question #4: Michelle from New York believes Wal-Mart (WMT) has been harshly criticized for its labor practices and human rights violations. She wants to know what impact the criticism might have on stock price?
Guy Adami says WMT will make $370 billion in revenue this year -- and if they can figure out how to raise their margins -- Guy thinks WMT will go from a $45 stock to a $60 stock. He tells Michelle WMT is a buy.