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Goldman Says RadioShack a Conviction Buy

Shares of RadioShack landed on the trader radar after Goldman Sachs put the stock on its prestigious ‘Conviction Buy’ list with an $18 price target.

Largely the firm thinks the decision to partner with Verizon and jettison T-Mobile from its stores should make RadioShack more appealing to shoppers and as a result boost earnings.

That’s something top hedge fund manager Anthony Scramucci also says.(Click here to check out Hedge Fund Trade Of The Week: Radio Shack Update)

Should you follow Goldman and Scaramucci into this stock?

Both Jon Najarian and Joe Terranova says 'yes' -- they're buyers. “I agree that the Verizon deal is very good for them,” says Najarian. “I think they benefit as the new Verizon iPhone launches,” adds Terranova.

Guy Adami is somewhere in the middle. He thinks Radio Shack could be a stealth takeout target. “I think Goldman is playing stock market,” he says. “The stock has been obliterated over the last few months.”

Karen Finerman isn’t interested. “I don’t get it – it may be cheap on valuation but there are better places to invest,” she says.





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Trader disclosure: On Aug 1, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL; Seymour owns (BAC); Seymour owns (GE); Finnerman and Finnerman’s firm own (AAPL); Finnerman owns (BAC) and Finnerman’s firm own (BAC) leaps; Finnerman owns (JPM) and Finnerman’s firm owns (JPM) stock and (JPM) leaps; Terranova owns (XOM); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Jon Najarian owns (AAPL) call spreads; Jon Najarian owns (BIDU) call spreads; Jon Najarian owns (APKT) call spreads; Jon Najarian owns (TLB)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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For Scott Nations
Nations owns (SPY)

For Dennis Gartman
Funds Managed By Dennis Gartman and Dennis Gartman are short the S&P
Funds Managed By Dennis Gartman and Dennis Gartman own the Australian Dollar
Funds Managed By Dennis Gartman and Dennis Gartman are short the British Pound
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Funds Managed By Dennis Gartman are long gold.

For Doug Kass
Seabreeze Partners Management is short (GE)
Seabreeze Partners Management is short (DHR)

For Andy Busch
** No disclosures

For Carter Worth
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CNBC.com with wires.