'Fast Money' Recap: Yahoo!'s Adrift

NEW YORK ( TheStreet) -- The markets were flat Tuesday ahead of President Obama's State of the Union address.

The Dow Jones Industrial Average fell 3.33, or 0.03%, to 11,977.19. The S&P 500 added 0.34, or 0.03%, to 1,290.84. The Nasdaq rose 1.70, or 0.06%, to 2,719.25.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, asked the trading panel for their comments on Yahoo! ( YHOO), which was trading lower in afterhours on weak revenue guidance for the current quarter.

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 on TV

Joe Terranova said Yahoo! has not recovered the way the market, economy and tech space have recovered. He also said Yahoo! has not responded to the challenge of Facebook in the manner that Google ( GOOG) has.

He said the company seems more preoccupied with reaching its margin targets by cutting its workforce.

Brian Kelly said he was staying away from the stock because of the lack of growth in its search revenues. Tim Seymour said Yahoo! has become a cost-cutting, efficiency story that will eventually lead to private equity coming in to sell off the pieces of the company.

Jon Fortt, CNBC tech reporter, said Yahoo! has to figure out a way to monetize its huge audience. He said Yahoo!'s Asian assets are worth more than $10 billion.

The panel's opinions varied on Juniper Networks ( JNPR), which was falling in afterhours trading despite a earnings beat.

Kelly said Juniper had a good quarter, as the company continues to take advantage of the buildout in data infrastructure. Adami said Juniper was a better company than Cisco ( CSCO), adding he would pick it up on the pullback.

Joshua Brown, though, said he didn't want to be in Juniper because it was guiding down for the next quarter and was talking about acquisitions.

Terranova, however, said the short interest in Juniper is the lowest in five years, adding the company is the best-in-breed vendor in the cloud space. "I'll certainly be a long-term holder."

CNBC reporter Kate Kelly said the Nielsen Holdings IPO had been priced at $23 a share, a dollar higher than expected. She said the offering, which is expected to raise $2.2 billion, was able to attract the higher price because it was oversubscribed and benefited from favorable market sentiment.

She said there are not too many pure plays like Nielsen, which tracks consumer behavior in the retail space and has made a name of itself in TV ratings.

With gold sinking to its lowest levels in three months, James West, of The Midas Letter, remained bullish, predicting the metal will reach $2,000 an ounce. He downplayed the significance of the current slide, saying the last 10 years of gold bull market has seen downside corrections of 10% in 30- to 60-day increments over 40 times.

He said all the factors that started the gold bull market 10 years ago are still in play. He said he remains a buyer on dips.

Seymour added that central banks remain buyers of gold while jewelry demand is strong. Still, Terranova advised investors to be careful, saying gold is a very volatile asset.

With news today of Britain's contracting GDP, Kelly said he expects food and grain prices to rise, making him a buyer of PowerShares DB Agriculture Fund ( DBA).

In addition he said the tension in conflicting monetary policies between the U.S. and other parts of the world, including China, would lead him to invest in gold and silver. Finally, he said the excacerbating imbalances will lead to market volatility and get him to invest in the iPath S&P 500 VIX Short-Term Futures ETN ( VXX).

In the Tweet the Street, Jon Najarian said there was a lot of discussion about the energy trade and Halliburton ( HAL). He called it one of the top stocks in that space for 2011.

Rather than invest in Halliburton and other stocks of that ilk, Terranova said he would just put his money in the Oil Service HOLDRs ETF ( OIH) and get all of them.

Commenting on President Obama's State of the Union address, Andrew Parmentier, Height Securities managing partner, expects the president will try to seize the center by seeking a lower corporate tax rate, simplifying the tax code and going after free trade agreements. He said the markets will like what they heard tonight in his address.

He said the White House will embrace either tonight on or in the upcoming budget the need to something to repatriate about $1 trillion worth of profits held overseas by U.S. companies.

Seymour said many of Parmentier's comments are well known and have been absorbed already by the market.

In a quick 360-degree look at Netflix ( NFLX), three experts were mixed in their assessement of the stock. One analyst said it was overvalued, while an options trader noted the bearish options activity in the stock, with many investors buying puts to protect the gains. One technical analyst, however, said she would buy the stock on a pullback.

Both Kelly and Terranova warned about the potential downside risk of the stock.

Looking ahead to the FOMC meeting Wednesday, Joe Lavorgna, Deutsche Bank economist, said the new board will be behind Fed Chairman Ben Bernanke. He said the new members will save their "powder" on the discussion on whether to let the Fed's balance sheet grow beyond QE2.

He said it's entirely possible for the Fed to raise rates later this year. He also assumed the Fed will go through with the entire amount of QE2 unless it sees an improvement in the payroll numbers.

In the final trades, Seymour said he was going to cover his mining shorts including the one he had in Rio Tinto ( RIO). Adami liked Blackrock ( BLK). Kelly said he was going to short Chipotle ( CMG). And Terranova said he was going to add to his position in General Motors ( GM).

--Written by David Tong in San Francisco.

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