CNBC's Fast Money - What to Do About Yahoo? (4/20/09)

by: Miriam Metzinger

Recap of CNBC's TV Program, Monday April 20.

What to do about Yahoo (YHOO)

Ahead of Yahoo's earnings report, Citigroup Internet analyst Mark Mahaney thinks expectations are so low for the company that it is expected to meet or beat estimates. While many are optimistic about a turnaround under the aegis of a new CEO, Mahaney thinks at best, this will not happen for at least two quarters. He also predicts a double-digit loss for online advertising, However, some see a silver lining in the form of a possible belated deal with Microsoft. While Joe Terranova thinks Yahoo could pop on meeting low expectations, he warns investors he has been burned by the stock in the past.

Bank of America (NYSE:BAC)

The Dow fell dramatically on Monday after Bank of America warned about defaults and the New York Times reported the Treasury might convert government loans into common stocks, a move which would dilute shares in financials. Karen Finerman thinks investors were "spooked" by the article and thinks after such big gains, a pullback was inevitable. Guy Adami complained that he felt like he was in "no man's land" because the selloff happened before The S&P reached 900. He thinks Bank of America could be attractive at $7.10.


IBM reported a greater than expected drop in sales, even though it has been one of the stronger technology names. Guy Adami noted the stock trades at a multiple of 10, down from its historical15, and thinks the stock is worth about $100 to $120 a share. Joe Terranova thinks the stock will reach $120 by the year's end and Jim Goldman of CNBC thinks the number could be as high as $130. Pete Najarian said he would wait for IBM to pull back further before buying and also likes Oracle.

The Dollar and Commodities: OIH (NYSEARCA:OIH)

As the dollar rose, commodities tumbled, and the Fast Money traders were looking for buys. Karen Finerman says the commodity drop was inevitable and likes OIH but not at current levels. Joe Terranova recommends moving from energy futures into energy equities. Guy Adami would keep an eye on copper, but expects some volatility.

Pharma Trades: Teva (NYSE:TEVA), Amylin (AMLN), Abbott Labs (NYSE:ABT), Pharmaceutical HLDRs (NYSEARCA:PPH), Amgen (NASDAQ:AMGN)

CNBC's Mike Huckman noticed a detail in the good news coming out of pharma companies like Eli Lilly- they are cutting costs. He recommends keeping an eye on which pharma names are tightening their budgets in an effort to compete with generics. Pete Najarian thinks Teva is a good stock in this environment, since it is heavily involved in generics. He likes Amylin as well. Guy Adami likes Abbott and Karen Finerman is impressed with the valuations of PPH. Joe Terranova thinks Amgen has bottomed.

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