'Fast Money' Recap: Bargain Hunting

The trading panel said there were a lot of investors swooping in today to pick up stocks at their 52-week lows.

Author:: David Tong
Publish date:: Aug 27, 2010 6:21 PM EDT

NEW YORK (

TheStreet

) -- The markets rebounded sharply Friday on a slightly better-than-expected GDP report and

Fed

Chairman Ben Bernanke's reassuring comments about the economy.

The

Dow Jones Industrial Average

jumped 165.14, or 1.65%, to 10,150.95. The

S&P 500

added 17.37, or 1.66%, to 1,0647.59, while the

Nasdaq

rose 34.94, or 1.65%, to 2,153.63.

Joe Terranova said on

CNBC

's "Fast Money" show that technology is showing leadership for the next quarter through corporate earnings and M&A. He said the markets lifted off their lows off of Bernanke's comments, which "did not downgrade the economy."

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw onTV

varconfig = new Array(); config<BRACKET>"videoId"</BRACKET> = 596620115001;config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player";config<BRACKET>"autoStart"</BRACKET> = false;config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF";config<BRACKET>"useOverlayMenu"</BRACKET> = "false";config<BRACKET>"width"</BRACKET> = 265;config<BRACKET>"height"</BRACKET> = 255;config<BRACKET>"playerId"</BRACKET> = 1243645856;createExperience(config, 8);

Mike Khouw said he took

Intel

(INTC) - Get Report

lowered third-quarter outlook positively and said the financials bounced off a bad performance for a prolonged amount of time.

Zachary Karabell said investors will be coming back from their vacations in September and see a market with attractive valuations across the spectrum.

Jon Najarian agreed but he said a lot of investors have already been jumping into stocks for the past several weeks that are at their 52-week lows. "They want to buy something that is really cheap."

Melissa Lee, the moderator of the show, wondered whether investors will be piling into names like

Bank of America

(BAC) - Get Report

that are at their 52-week lows.

Peter Boockvar, Miller Tabak equity strategist, said investor sentiment still remains very low.

Lee asked the panel what to make of the rise in

Intel

shares after it cut its third-quarter guidance.

Terranova said there are better names in the chip sector than Intel. He said

Marvell Technology

(MRVL) - Get Report

and

Broadcom

(BRCM)

have much better potential to grow.

Karabell said Intel is facing a period where it is dealing with clumpy demand. Still, he said he still liked the stock, which he said is doing much better than the lower estimates suggest.

Shifting to the heated bidding war for

3Par

(PAR) - Get Report

, Lee pointed out it has lifted smaller companies in the sector.

Compellent

( CML) is up 40%;

Commvalult

(CVLT) - Get Report

, up 31%; and

Isilon

( ISLN), up 22%.

Amazon.com

(AMZN) - Get Report

was up slightly on news of the third edition of its popular Kindle.

Colin Gillis, of BGC Parnters, was wary of the economics of the new Kindle, citing high marketing costs and low margins. He said the economics don't justify the stock's 46 mulitiple.

He was much more enthused about Apple's new iPod Touch, which is rumored to be shown on Sept. 1. He said the new phone may carry a microphone, in which case it has the potential to be a fully functional phone not tied to any carrier.

Are crowded trades value traps? Michael Block, chief equity strategist for Phoenix Partners, said

Akamai

(AKAM) - Get Report

topped his list of crowded trades that have gone up the most in the past 20 trading days. He said the stock is up 21% on unwarranted takeover speculation. He noted two other crowded value traps:

Mosaic

(MOS) - Get Report

and

Bank of America

(BAC) - Get Report

From the options pit, Najarian said

Seagate

(STX) - Get Report

bounced back today, with 23,000 contracts traded.

In the final trades, Terranova was long energy. Karabell liked

Cisco

(CSCO) - Get Report