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Wait for Intel to Pull Back to $26, Then Buy: Adami

“I wouldn’t buy Intel stock here. I think it’s rolling over,” says trader Joe Terranova as he reviewed the company's latest earnings report which showed revenue in the first quarter was $12.9 billion, up from $12.85 billion in the year-ago period and a bit higher than the $12.85 billion expected.

Also, GAAP net income in the first quarter was $2.74 billion, down from $3.16 billion in the year-ago period. GAAP earnings per share were 53 cents, better than the 50 cents expected.

The headline numbers seem fairly positive but dig down and you'll find some bad news. “Inventories are too high – they’re up 400 million, investors won’t like that," explains Terranova.

“Intel is a great company but I suspect we could see a pullback down to $26,” adds trader Guy Adami.

However after a pull back both traders would buy again. "Long-term, the stock is fine,” Adami says.





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Trader disclosure: On April 17, 2012 , the 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 HPQ; Joe Terranova owns IBM; Guy Adami owns INTC

For Brian Kelly
Nothing to disclose

For Ken Sena
Nothing to Disclose

For Saw Wu
Sterne, Agee & Leach, Inc. makes a market in the following subject company: IBM
Sterne, Agee & Leach, Inc.’s research analysts receive compensation that is based upon various factors, including Sterne, Agee & Leach, Inc.’s total revenues, a portion of which is generated by investment banking activities.
Sterne Agee & Leach, Inc. expects to receive or intends to seek compensation for investment banking services from the subject company and/or companies in the next three months: IBM



CNBC.com with wires.