3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- Bank of America ( BAC) shares moved higher today on the announcement of a $25 billion settlement involving the nation's five largest lenders. Joe Terranova said on CNBC's "Fast Money" TV that the worst is over for Bank of America. He said he sees a bullish formation in the stock, which traded for the second consecutive day above its 200-day moving average. Terranova said the next trade involves the fate of Merrill Lynch and whether it would be sold. Karen Finerman said the stock is still at a "ridiculously low valuation," while Tim Seymour said he was worried about the possibility of litigation following the settlement. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Jon Najarian said the bullish sentiment has returned to what once was the most maligned financial stock. Gerard Cassidy, of ABC Capital Markets, characterized the settlement as another log off the wood pile, and a definite plus for Bank of America. He said it's good sign for the lenders because most of them have provisions to cover the settlement costs. He said the next big hurdle for the banks is the Volcker Rule, which would put a ban on most proprietary trading by banks. Melisssa Lee, the moderator of the show, said Apple ( AAPL) shares finished close to $500. The stock, which closed at $493.49, up 3.53% for the day, is up 22% for the year and has gained $82 billion in market cap. Finerman, who owns some Apple shares, said she sold a little of her stake. Najarian stressed he still likes Apple's story but got out of the stock today, which he has been trading through weekly options. Terranova said Apple has become a trader's stock and may be near its top. Seymour said it was prudent to back off the stock because all the good news may have been priced into it. Lee noted that Nuance Communications ( NUAN) was down after a revenue and EPS miss. Terranova said the miss wasn't unexpected. He said the relationship between Apple and Nuance is still unknown. He also said 40% of the company's revenue comes from health care. And he said he was disturbed by a statement from the company that its relationship with its mobile customers has become "more comprehensive and complex."