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Anthony Scaramucci: Tech May Be Next Bubble

The technology sector may be the next bubble, said hedge fund manager Anthony Scaramucci of Skybridge Capital Thursday.

Since the Federal Reserve on November 3 announced its plans to purchase $600 billion in Treasury securities, investors started pouring money into tech stocks. The last time the Fed pumped money like this, said Scaramucci, was during the Y2K crisis and it touched off a "huge Internet bubble."

Today, Scaramucci said tech stocks seem to have a floor. Cisco shares tumbled after reporting Wednesday afternoon that its revenue outlook feel short of the Street's forecasts, but he noted most other tech stocks have continued to hold firm. CNBC's Melissa Lee noted that it felt as though tech stocks would sell off, but tech is down less than a 1 percent on the Nasdaq.

Tim Seymour, founder of EmergingMoney.com, agreed. He added that shares of Juniper Networks , for example, has remained basically unchanged. In addition, Seymour noted that these stocks have held firm despite a host of bad news around the world, including European debt troubles.

Is Cisco 'Broken'?

Even though the data networking name disappointed on earnings, Seymour said Cisco is not a "broken company."

Their troubles are only temporary, argued Seymour. The company basically said slowed government and consumer spending has left them unable to hire, which has hurt earnings. But the company overall is strong and he likes this name.

Scaramucci agreed. He called Cisco a "blue chip, world class franchise" with an inexpensive stock that trades 15.4 times current earnings. He thinks a great contrarian play right now.

From a valuation standpoint, Metropolitan Capital Advisors president Karen Finerman thinks Cisco looks attractive. The company has $24.5 billion in net cash on its balance sheet on a $118 billion market cap.

Brian Kelly, founder of Kanundrum Capital, said he doesn't think Cisco is a "bad buy." He bought QLogic after it had traded down on the Cisco news Thursday.

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TRADING COMMODITIES

While the Dow fell 73.94, or 0.7 percent and the S&P 500 index fell 5.17, or 0.4 percent, oil stocks ended mostly higher Thursday, including Occidental Petroleum and Halliburton .

Finerman finds it interesting stocks associated with the Gulf oil spill are trading higher, including Anadarko Petroleum , Transocean and BP .

Higher oil prices won't help nurse the sluggish US economy, said David Rosenberg, chief economist and strategist at Gluskin Sheff. Oil last tested $90 a barrel in Oct. 2007 when the stock market was at its peak. A few months later, the Great Recession set in — something no one saw coming. For that reason, he thinks the increased oil prices will be a "significant headwind" going into the holiday shopping season.

With commodities rising, Seymour suggests getting into aluminum. Merrill Lynch said it expects prices to climb by 15 percent, but Seymour said aluminum is the one metal nobody trusts on spot prices.


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Trader disclosure: On November 11, 2010, the day this video was recorded, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman Owns (AAPL), (BAC) and (BAC) preferred, (GOOG), as well as (JPM). Anthony Scaramucci Owns (KO). Tim Seymour Owns (GE).

ANTHONY SCARAMUCCI
Skybridge Owns (KO)
Skybridge Owns U.S. Dollar, Scaramucci Owns U.S. Dollar
Skybridge Owns (BAC), Scaramucci Owns (BAC)
Skybridge Owns (DIS), Scaramucci Owns (DIS)
Skybridge Owns (JPM), Scaramucci Owns (JPM)

KAREN FINERMAN
Finerman's Firm Owns (IWM) Puts
Finerman's Firm Owns (RIG), (BP), (APC)
Finerman's Firm Is Short (IWM)
Finerman's Firm Is Short (SPY)
Finerman's Firm Is Short (MDY)
Finerman's Firm Is Short (IJR)
Finerman's Firm Is Long Russell Puts
Finerman's Firm Is Long S&P Puts
Finerman's Firm Owns (JPM) Leaps, (JPM)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FRO)
Accounts Managed By Kanundrum Capital Own (QLGC)
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MOT)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (MT)
Accounts Managed By Kanundrum Capital Own (IEF)
Accounts Managed By Kanundrum Capital Own (TIP)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (REE)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (GDXJ)
Accounts Managed By Kanundrum Capital Own (TD)
Accounts Managed By Kanundrum Capital Own (AWI)
Accounts Managed By Kanundrum Capital Own (HD)
Accounts Managed By Kanundrum Capital Are Long Euro
Accounts Managed By Kanundrum Capital Own (XHB)
Accounts Managed By Kanundrum Capital Own (CLF)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (JO)
Accounts Managed By Kanundrum Capital Are Short YEN

CARTER WORTH

DAN NATHAN
Nathan Is Short (CSCO) Dec. 22 Puts

COLIN GILLIS
NO DISCLOSURES ON AAPL, RIMM, GOOG, Samsung

DAVID ROSENBERG
NO DISCLOSURES

GE Is The Parent Company Of CNBC

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