I like Citi and JPMorgan, adds Brian Kelly of Kanundrum,. These are good banks with good core businesses. I would not, however, put money into Goldman , he adds. They’re facing headwinds.
I like Deutsche Bank for valuation, adds Tim Seymour. With a P/E of 7.5 times next year they’re growing their top line EPS. And Deutsche doesn’t have the exposure to Greece that people think it does.
Elsewhere in the market, if you’re looking for a trade look at GameStop , says Guy Adami. I think it could be heading into the low teens.
TOYOTA FACES CONGRESS
For those traders that enjoy drama, they found it in Toyota after CEO Akio Toyoda apologized to Congress for safety lapses that led to deaths and widespread recalls.
Despite the apology Toyoda disputed claims by some safety experts that the cars' electronic throttles might be at fault.
Toyota has recalled 8.5 million vehicles, mostly to fix problems with floor mats trapping gas pedals or with pedals getting stuck.
In addition, Toyoda said the company is making changes so brake pedals can override a sudden acceleration and bring a runaway vehicle to a safe stop.
The company said Wednesday it will offer free at-home pickup of vehicles covered by the national safety recall, pay for customers' out-of-pocket transportation costs and provide drivers free rental cars during repairs. The deal -- costs to the company weren't specified.
What’s the trade?
As a value investor I stepped into this stock on Wednesday, reveals Karen Finerman. It seems like an absolute crescendo of bad news for this company. But it’s a short-term trade for me; not something I usually do.
I also like Toyota as a trade but as an investment I’m concerned, adds Pete Najarian. I can’t help but wonder, how widespread the problems are at Toyota - and how forgiving will consumers be?
In the short-term I agree that Toyota’s stock may have bottomed out, says Guy Adami. In fact, that may take the steam out of the Ford trade. I want to be clear that as an investment I like Ford. But for a trade I’d be careful of letter 'F'.
I’m still bullish on Ford, counters Joe Terranova.
I’m on the same side of the Toyota trade as Karen Finerman, reveals Brian Kelly. The stock bounced off $71. I think the stock could go to $80 but at that level, I’m out. And as a derivative trade, with Toyota’s woes potentially hitting Japan’s exports, I’d be long US dollars and short Japanese yen.
AFTER HOURS ACTION: EXPRESS SCRIPTS
Pharmacy benefit manager Express Scripts on Wednesday reported better-than-expected fourth-quarter profit and issued a 2010 earnings forecast that exceeded Wall Street estimates, and its shares rose 8 percent in extended trade.
What's the play?
I think the trade is long rival Medco , says Guy Adami. I think they're sandbagging and they raise their guidance just like Express Scripts.
Or look at CVS , says Karen Finerman.