we'll be watching technology tomorrow. "fast money" is up next. have a great night. intel shares soar after the bell, giving a boost to the overall stock market as they blew out expectations. the strong second quarter earning and a bullish forecast. yum prance down 4%, revenues disappoint. that's cnbc.com news now.

"fast money" with melissa lee starts now. from the nasdaq marketsite in new york city's times square, this is "fast money." america's post-market show. baseball has its all-star game tonight. we're trading all-stars every night the week. the liquiditior, joe terranova, and last but not least, tim seymour, the ambassador. they hit it out of the park every single night of the week. it is yet another winner. let's get to the word on the street. the headline is better than expected. the eps, gross margin was better than expected. the cross like is what's good. that's what sending stocks higher, and we are see the nasdaq futures move higher as well. >> a little more enthusiasm with that. third quarter guidance, $8.5 billion, double-digit growth. this is a bellwether. intel is moving higher, this

will take the rest of the market higher, and it probably sets us up nicely, as you rolled forward next week, you now have a foundation, 870s the s&p, that was the low. >> third quarter guidance for these guys is rare. so we talked about the gross margins, they blew that out, blew out the retches number, and most importantly, these guys are looking to the future. this will get the entire space excited. >> hate to throw an uncle charlie on it. >> don't do it. >> do it. >> exactly. go back to april 15th. these guys reported april 14th, the next day the stock went down on 152 million shares. that was the day as it turns out to buy intel. john najarian was in the seat that night, said the exact same thing. now great quarter. look for a huge volume day. you take profits tomorrow..

>> intel, by the way, is you take charts, 1816, so way above the range that you've been talking about. >> absolutely. they crushed. it's a fantastic quarter, but intel on a valuation basis frankly is not that cheap. that's a tad expensive. pete might disagree. >> the only reason i disagree is because i think their earnings will be far greater. we've had a couple estimates over a dollar, and now you break down intel, and you say, you know what? this looks awfully cheap. you take a look at the balance sheet, this stock is doing everything great. knocked the cover off the ball, this is prince fielder right now. they did everything right, $8 billion quarter, incredible 18 cents versus 8. it's agree for i.t., this is what we needed.. we need to fold up with goldman sachs. it was the man as far as the financials, these guys are truly the man as far as the tech. >> let's bring in an analyzi, webb busch morgan analyst,

patrick wang is on the line. great to have you with us. >> thank you very much. >> you heard the trader on the desk. did that mean with a 10% gain, does that translate into the -- what do you recommend? >> i think guys short of term, i think taking profits probably makes sense. longer-term investors will like what's happening, but clearly intel showed up to the all-star game, too. >> in terms of the conference call in about half an hour's time, what is the number one call that you will ask the management? >> i'll give you two. first will be what do we think about p.c. demand in the back half of the year. we saw a nice inventory correction. the question really is what sell-through it, is what management thinks and how they think of the back half. i think the second thing obviously will be the gross margins. we saw a nice recovery in the second quarter, well ahead of wis per in the third quarter.

>> any commentary on the wind river acquisition? >> yeah, it's a great strategic fit for the company. longer term i think we care about how they getting into the s.o.c. market. i think they're focused on getting into the handset market. but it probably will take a couple years before we start to see material benefits. >> how do you reconcile what dell told us today, essentially customers deferring second-half spending. gi me your thoughts there. >> so that's -- i think, you know, we take a look at what dell is saying, and they're saying i.t. spending, so the enterprise market clearly hasn't improved yet. we're seeing some life there, but generally what we saw in the second quarter was kind of a recovery, inventory restocking. think about notebooks, netbooks, consumer desktops. >> great to have you with us, patrick wang, from wedbush

morgan. the conference call is under way in about half an hour's time. jim goldman will be tweeting for us and we'll check in with him live in the second half. >> melissa, one of the great reactions tomorrow is if guy's right and it does start to show a pullback, but still like intel long term, they will crush the volatility. they will take every bit of premium not just the july, but even the august that was already coming in, they will bring that even lower, the protection you can bite in the form of puts if you're willing to go long intel will be extremely cheap for the next month, next quarter. >> so keep that? mind if you're watching it and hold it. next trade, goldman sachs flexing its muscle. certainly the earnings were all bullish analysts on the street were in fact expecting, surging 6% yesterday, following up today with a flat performance, but it held onto the gains.

>> i don't think we should be surprised. goldman beats 80% on the bottom line, 9 on% on the top line. we had a lot of people piling in yesterday. so it was somewhat muted, not a big surprise. this is what the sector needed, except -- and i think that's really what people scratch their heads, and they went back over and we're looking forward friday. jpmorgan is the guy you need to get excited about, if you want to translate that into more of the commercial bank plays. but again, jpmorgan is the name i'm looking at to tell me how healthy the sector is. >> this is a phenomenal read-through. 245 million per day, well above what it saw last year at this time, well above what you saw in the first quarter, the capital markets have healed themselves clearly. now you look upon these investment banks, goldman sachs is operating as the world's largest hedge fund. that's good for the markets themselves. that's what we need.

now you look at morgan stanley, want to see if morgan stanley can follow suit with what goldman sachs did. >> the capital markets have healed themselves, when it comes to proprietary trading, when you look at value, that's slightly up. >> that's their fastball, not the uncle charlie. >> they are not a bank, so to compare them to a bank is ludicrous. they do some of the same business. >> and let me present this analogy to you. here's a trading pit where you have, let's say 50 traders, and because of what happened with the credit crisis over the fall, you now have removed probably 50 to 60% of the population of that trading pit. what remains in the trading pit the goldman sachss, the morgan stanleys, jpmorgans, that's a terrific opportunity for them -- >> in terms of jpmorgan, a

report on this friday, pulled back, listen, that 35.25 left is still there for anyone that wants to get short this market, which frankly i think is not a bad idea. that baseball card is brutal, but the right trade has been to short it on the way up. >> that's the only baseball card you're ever going to find yourself on. >> that's a little harsh, tim. what do you hate more, the obama trade animation or the baseball cards?s? what if we put the animation in the baseball cards? >> oh, a double negative, then i would love it, maybe. let's talk more about goldman sachs and meredith whitney's call yesterday, but coming out today with a note sailing don't be fooled by the rally. when you take a look at this, meredith whitney, with all due respect was the late to the game.

dick bove upgrading, and basic of america merrill lynch upgrading july 9th. . >> that's not fair. i work with mer di, frankly, but when she started her own shop, it takes a long time to roll out coverage. she started a new shop, she did her homework, had people working for her. so to say she's late is just not fair. there's a lot of reason to criticize her. that's not one of them, though. >> $20 in earnings for the year, if that's really the number, which is about $4 or $5 than anybody else on the street, she's not late, probably early. at ten times a $200 stock, just like difficult bove said day, maybe she's late later, but au guy said, she's on board and plenty of up side. >> spot on. >> but we're just raising the

charts, because if you are a listener to this show, and we highlight dick bove's called in april, if she's not late to the game, he was right on the money. >> are we talking about whitney being right on you goldman being a great stock? and they're figuring out how to make more money. >> would you commit new money at 149-66? >> i think technically i don't love it, but yes, i like the earnings story.. one of the things i thought was interesting is they are looking to buy maybe an asset manager, because that's where the margins are on this business, and bar clays when they sold to blackstone, goldman is very good in this space. they will take shares. >> and the market has been a trading environment. i think you will get some kind of pullback. i still love it. trim some, you've got to take some off. >> where would you look to get back in. >> anything close to the low 140s again, i think it's a steal.

money is going to go into the bank of mc, the ones where earnings have yet to follow. >> which meredith whitney says is cheap. some more after-hours action, a yum brand is down in the after-hours session, but missing on the revenue front, so you see the decline in shares.s. >> it basically gave back today's gains. you know what? the earnings were fine, revenues were a tad light, guidance was fine.. these guys 15 sometimes earnings, we saw goldman sachs, i think they put a $40 price, i think yum is a great story. >> i think they're a victim of their own success. anyone that's been watching this show knows we've been talking about the growth side. this is where it happens in china. they also they get some tail winds from commodity prices. this will help a lot of guys on

the margins.s. the bottom line is better than expected, and that's what you'll see these guys do next year. >> here's another headline. it is full backing the full-year eps view. >> that's how they gelt there. >> the growth story is, like you say, an absolutely incredible. obviously the china is the lead there, but there is weakness still. they've been some problems there, but, if anything, if china's got any kind of recovery, 10% growth there, the expansion they're planning, 500-some stores, that's huge, and i think yum is a steal even at these levels right now, as much as it's run up, you can still buy it. >> the next trade, talking the tape, retailers were higher than expected, second consecutive monthly game. sears, saks, macy's, the index was up as well. are we reading too much into this? >> no, i think some retailers are better than others.

gap, about a month or so ago, she said she liked gap, and i agree. now it's sort of building from that base 14.5 or so that we put in that correction. i like gap a lot. their comps are always awful, they have been for the last four years, but they're running their business better, i think gap is a name, gps, that you can own. >> if you strip out autos, gas and autos, this was on the cory down 0.2 of a percent, so i don't think the consumer has any legs to them. we know this from the labor and earnings numbers. i think you'll get more of the same. >> the only trade out there on the retail space is the trade-down. kohl's is a good name, but rising unemployment, retail you cannot get too excited about. >> we're preparing for the rest

of earnings season, taken as a whole, will corporate america's results void or validate the rally. our next guest is here to answer that question. danny hughes is a ceo of divine capital it is markets. >> great to see you, melissa. hi, boys. >> i like that. i'm a big fan of that. >> so dhani, where are you expecting the beats in earnings season? >> the whole picture is all about this quarter, right? everybody cut back inventories, if you follow, what's the first thing to happen. consumer discretionary comes back, tech comes back. what we're looking for is industrial cap e. where is that investment happening? and how fast is it happening, right? so we're looking at bellwethers, we're looking at companies like ingersoll-rand, companies that are invests in the machinery that takes us to the next level. nobody is going to hire people right now. they're calling it a jobless

recovery. well, of course nobody is going to hire people to sit there by the phone and wait for the phone to ring. first we have to see product activity peak, and then we'll see people come back onto the scene. we think that earnings are going to disappoint. >> is that something like caterpillar and deere? they are the ones probably most exposed to this infrastructure build-out. they are machines, not people. is that what you're talking about? >> to some degrees, but some of these guys are exposed in the farm area, housing and those types of industries take longer to recover. housing i think is between four to six years typically. >> so what's the trade, dhani? >> i am buying product activity names, power management, tech companies, and we're buying companies like fuel tech, diodds, companies that have a product activity man dade or policy mandate? in other words, if the administration is say you guys have to get with the program because of emissions, this is

the company to buy. >> it's always good to have support of the obooma administration these days. dhani, a pleasure. >> thank you very much. after the break, our own jim goldman is fresh from the interview of the cfo of intel. imagine if they had this back in the '80s when pete was playing in the nfl? that's right, football is -- coming live to your iphone. and we have got the ways to trade it. stein. goldman conferred its all-star status, but jamie dimon is at bat. and follow peyton manning at that boring family picnic. live nfl action is coming to your iphone. a top media analyst gives us the trade for that. plus the big gun at this weapons maker tells us if firearms stock are still fast money, when america's post-market show continues. not long ago, this man had limited mobility.

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if we pre-qualify you for a new power chair or scooter and your claim isn't approved, the scooter store will give you your power chair or scooter free. that's our guarantee. they were so helpful and nice. they filed all the paperwork, and medicare and my insurance covered the cost. we can work directly with medicare or with your insurance company. we can even help with financing. if there's a way, we'll find it! so don't wait any longer, call the scooter store today. we're live at the nasdaq market. in the after-hours session, intel is rising sharply on the back of better than expected results, also better than expected forecast.

let's go to our silicon valley bureau chief, jim goldman. you've also talked to the cfo in the meantime. >> i got interesting information from stacy smith. it was all about guidian from intel.l. would the company actually provide some? not necessarily providing meaningful guidance before, but this time i asked stacy smith, though, about not only those guidance numbers on the increase, but really whether the company is ready to reaffirm what it said last quarter as far as the industry reaching a bottom and what he sees moving forward. instead the entire industry. let's take a listen of how he answered that question. >> oh, our second quarter r results and the outlook we have set for q3 i think just reinforce the view we had a quarter ago, which is we saw the computing markets bottoming in the first quarter, improvement in the second quarter and expect

it going up in the second half. >> a seasonally up in the second half. that actually indeed is good news, heading into the commercial break we just saw with football stuff, i don't know if we can show this again, but it confirms everything i have thought about your old friend najarian. he did indeed place hi entire nfl career without a helmet. >> all right. all right. >> my thoughts on that. we'll have the entire interview posted on the web very shortly. back to you. >> thank you, very much, jim goldman. he'll be on the conference call that starts in about ten minutes. poor pete. >> i'm taking shots from left and right. >> you were on vacation, we couldn't take any shots. >> a fly comes by and nails me in the head. yeah, yeah. we know you're prepping your man cave. you've got a man cave, don't you? >> who doesn't? >> who doesn't.t. for the start of football season, but in case you do have

to leave the living room, directv is launching a new a the pp for the iphone users. joining us is rich greenfield. always a pleasure to see you. >> thanks for having me. >> who is the biggest beneficiary? is it more a directv impact? i know you don't cover the iphone -- >> not just the iphone, i know the segment was focusing on theñ iphone, but it will be on the blackberry pretty soon, so multiple carriers.. the iphone is the first one, that's the hot device, and i think it shows you how directv all they focus on is how do they super-serve the customer. no matter the platform, they want to deliver the best video.. it's focused on sports. >> what kind of boost will it about to dtv? >> i think it's another string of beck technology moves. the cable industry still can't let you program your dvr when

you're on an iphone or pc. the cable industry can't figure that out. drk tv has had that for quite some times. the cable operators simply can't get something like that done. this is an example of using technology to drive directv. >> in other words, i pay 280 for the tickets, and another hundred bucks to get it on my app. >> let's break it down. first you pay $280 to get the sunday ticket. about 2 million people across the country do that right now. the super-fan, which is if you want to watch those same games in hd, on broadband, a bunch of incremental features. >> the pete najarians of the world. >> that extra package will include the iphone and blackberry app. this is a way to really give you an incremental value-added of

why you'll pay that. so it's not an immediate huge move, but will help drive penetrati penetration, which is meaningful, if they can get the other million 3 people -- >> bottom line it for us. is this a reason to buy dtv? >> i think it's yet another reason. four times ebitda, six times cash flow. we think they'll close a transaction with john malone and liberty in september. we think the next big move is they spin off latin america. this company will buy itself private if somebody doesn't actually buy it. >> what do you view the value of this company in a takeout? >> easily justify -- our price target is $32, which is based on more fundamentals, not being bought out, but i think a $35-plus buyout is possible, and by far the cheapest name in the

group, and it's got the strongest balance sheet in the group. the only company i cover that has tremendous capacity to buy back stock in the distribution space. >> is there anybody left in the capable space then? you're staying away from that. the disney, is it one of the guys that has a broader revenue model? >> we love cablevision. that's a name where we think they're about to spin off msg, we think there will be an announcement soon. it will show you how good cable vision? the new york tristate area, basically everyone has digital capable. they're the killer. >> when will they sell the knicks, rangers and madison square garden? >> the phoenix coyotes are worth $300 million, the canadiens worth $500 million, and the cubs just sold? no one gives the knicks and rangers any real value at all. >> i do. >> segmenting them out and

separating to a separate company will allow invest oors to do more work on the valuation. >> rich, got it, thanks so much for your time. next right here, talk your earnings edge, goldman sachs blew away estimates, posting a report strait, but we've still got a whole lot more to talk about. jpmorgan, bank of america, citi, here to help us is jeff, the managing director. we've been talking on the desk that goldman had a blowout quarter. do you glean anything and apply it to what you're expecting from the others? >> i think there's kind of three things to walk away there. i think it proves once again that goldman sachs is best of breed. sectly the strength in trading in investment banks i think that more capital market quarters than a lot of people expect, but unfortunately third, commercial real estate remains a drag, so i think anyone with commercial

real estate exposure that plays against, but in reality it reminds us that credit is still a problem. hard to get excited about too many banks. >> jeff, to that pint, when you look at goldman sachs, you're e seeing loan and credit losses of only $700 million. when i talk about a jpmorgan, a citi or bank of america, what will i see in losses there? >> yeah, and the problem also becomes for a goldman and morgan stanley, most of the losses are taken right up front and over with. we'll have losses bleeding through earnings for 18 months at some of the big banks if you look at bankland, you want to be looking at some of the large caps, like bank of america, with a good franchise, a jpmorgan n where you get a good franchise still relatively cheap, but you're probably better off looking at the capital market plays first. >> hey, jeff, what's the ipo calendar looking like going forward? >> you know, it tends to go day

by day. the backlog isn't filling up. we're finally see activity levels picking up, but i think we need a couple more months before you see ipos pick up. >> jeff, great to have you with us. jeffrey hart of sandler o'neill. >> a little poll action here. i love the reaction. so simple, a couple words, but tonight's question is -- are you buying jpmorgan? a, yes, dimon's turn to shine, or b, no, too much consumer exposure. >> i think karen finer man wrote that question. >> but she would say something else. log-on and tell us what you think. pete you're watching suntrust. >> suntrust is a pretty even keel today, but everybody was

talking about at $60 wanted southeast exposure, and they loved it. stock went to 30, now it's at $16, it's ub churning for about three months. huge call buying, came in, bought about three times normal what the volume was previous. that shows it right there. it gives you an idea that people are starting to look forward and wonder just how bad will the earnings be. and if it's anything better, maybe there's some up side here. >> johnson & johnson kicking off health care earnings, but ending the day only slightly higher. over the next two weeks, heavyweights like merck as well as pfizer, but can we expect t more positive results? mike huck man joins us at the end of the desk. he's moisturizing his hands. can you do steve's's well? >> hand lotion, not just because you guys need to destress a bit,

but to illustrate a point, and that is that, with today's report out of of j & j, so sales were down, not growing as fast, they took a big hit because of currency e exchange rates, u.s. sales of johnson & johnson skincare products which includes aveno and newt rwere up. that's not a reason to buy, sell or hold the stock, but becky quick thinks it's an economic effect, that people are trading down from the cliniques, and instead buying aveeno. >> what are you doing, pre? pete?e? >> i got a lot of skin to cover. >> rogaine. >> oh! >> that just about does it. >> let's read the tea leaves a bit, mike, because what a lot of

people were focusing on was rimecaid and what it might mean for abbott labs, and the report we're expecting. is this actually a good signs? >> everything was trying to see what's the read-through, and after that baxter, which is a mini abbott labs, but yeah, you want to look at hue mira drugs, and you also want to watch the drug-coated stent sales, and interestingly we saw j & j reported that u.s. drug-coated stents sales went down 59% over the second quarter of last year because of this new competition from the likes of abbott labses, boston scientific and medtronic. >> elan versus two drugs going generic, they dealt with both of these in the last quarter, elan

acquisition very excited. how do you bald it out for j & j? >> they took a billion dollar hit because of the competition? but they did this complex arrangement, but even though they reaffirmed their earnings guidance for this year, which a lot of people were surprised by, given those deals, but look, those are gambles, bets on the future, and you can't make a call on that. >> mike, real quick. j & j is well diverse fitted. i look at abbott labs, a fuel of their sales are from hue mira. will they be able to be as diversifie diversified? >> great question, but to your point, j & j had more sales of medical devices in the second quarter than pharmaceuticals. >> mike huck man, thanks so much. he fills us in on pharma and moisturizes us. the after-hours for intel, the conference call is about to get under way. we'll have updates right after

this break. don't go away. a tonight's "trader radar" we look at the stock lighting up screens. founded ten years ago as a way to make diamond shopping less stressful. this is the largest online seller of fine jewelry. >> we've seen diamond way off their highs. that's a great deal value for the consumers. >> the shares sparkled even brighter today. who is it? the answer when "fast money" returns. [ engine revving ]

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another trader radar tonight, blue nile, the internet diamond retailer was among the most active names on the nasdaq today. welcome back to "fast money." here's what we've got for you in the second half of the show. a gun stock rally, smith & wesson on why the firearms company shares have more than doubled in since 2005. plus a home run derby stock maybe, and no, it's not who you think. and a second look at the trade now that yum brands is out with earnings. but first a reminder, the intel conference call getting under way.

jim goldman is tweeting away as we speak, but he did speak to the cfo stacy smith who did tell jim that he's expecting a seasonally up second half of the year and we're seeing intel shares continue to gain. time for today's edition of "pops & drops." a pop for cit. it was up 21%. >> there's no way anyone should be trading this. they have a billion of debt that matures. it is question is whether they can get backing. >> a drop for take two. it was down 10%. >> the losses expected to be 50, 65 cents. ouch. it will ugly. still isn't ready to be bought. >> tim? >> as goes the rules, the ruble is stronger today. russia has been stronger. it's a great company. >> pop to tiffany's.

>> let's look at tiffany's rallying on the back of it. basically from 17 to 31, b biggage. i think it had rally more. >> a gain versus a loss. look at right now what's going on, you're seeing that united health care and aetna, they have stripped away from you humana and healthnet. the big loser here is healthnet. they derive 30% of their earnings from department of defense contracts. >> it's a pop, not a stock.k. algae, the newest renewable form of energy is pond scum. investing $600 million for fuel from the organism. very interesting research, the subject of my tenth grade science fair project. >> the most interesting thing about this, it does not impact as far as crops are concerned.. that's the biggest boondoggle as

far as ethanol, but you've got to like the direction. first time exxon is committed. that's pretty big. >> the guys are laughing, because i'll bet you think you're not surprised. thanks, i'll take the compliment. >> it was a compliment. >> there's. pop for bhp. >> it's one of the biggest, iron ore negotiations with china, though, still to come, be careful. >> they're doing this ahead of earnings on july 23rd. another name i like. >> we've got a drop for president obama's teleprompter. apparently the president had a small technical glitch yesterday. as the teleprompter came crashing to the ground while he was speaking about the economy. >> bad luck. >> yes, maybe it's seven years, hopefully not. better the teleprompter than the stock market or for that

market. >> absolutely. >> bad ohmen. coming up next, do you have tickets to the gun show? is somebody going to flex? there you go. tim's got it we are shooting the breeze with the ceo of smith & wesson on his stock. stay tuned. at first i was afra. i was petrified. kept thinking that each meeting meant... that i would have to fly. but then i spent so many nights... reading e-mails way too long. then i grew strong. network video came along. ♪ and so i'm back ♪ no time to waste ♪ just click the mouse and get things done ♪ ♪ see people face-to-face ♪ i should have changed things long ago ♪ ♪ this technology saved the day! ♪ [ female announcer ] more collaboration, less complication. that's the human network effect. learn more at cisco.com/newways. come on in. you're invited to the chevy open house. where getting a new vehicle is easy. because the price on the tag is the price you pay on remaining '08 and '09 models.

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♪ h-o-t-w-i-r-e ♪ hotwire.com all right. let's get to the big story in the after-hour session. intel is trading higher, also sending the nasdaq futures higher as well. and very strong guidance. let's go straight to jim goldman who's been following the conference call. >> we have some prepared comments from paul odolini. he called the bottom to the pc industry just last quarter. he's saying from intel's standpoint, customers are basically sharing confidence in a second-half '09 recovery. that's not just good news for intel. that becomes good news for indeed broader technology, not the least of which would be microsoft preparing for its windows 7 upgrade. in addition to what i have been

speaking about as far as stacy smith, the cfo, is concerned, the company did account for that 1.45 billion fine connected to the antitrust case. i asked based on the fact that they are accrues that fine in the current quarter, if that means that intel is now dropping plans for its appeal, and stacy smith did tell me that he is planning on fully moving forward with the appeal, that the reason that that fine was included in the report was because of a accounting rules, and that intel will still proceed with that appeal. but nonetheless, the company is projecting a seasonal growth pattern for the back half of 2009, something that's being reiterated on the call as we speak. that's good news for all the investorness these sectors. >> keep us updated. guys on the desk here, what sort of conclusions do you draw based on intel's guidance.

>> late-game rally. they better by fighting this antitruth suit, this is garbage. it's happening in china, they should not give into this. >> would you have used the analogy all along, what inning are we in in this crisis? i think this is confirms we are in the late innings in this entire crisis. >> you heard it on "fast money," according to j.t. moving on smith & wesson rang the closing bell last week. into the commercial security market, but shares have run up more than 100% this year, possibly for a different reason, many gun enthusiasts have been buying up the products in anticipation of a possible crackdown. joining us is the ceo of the company, michael golden. a lot of analysts are saying perhaps in stock upgrade that the notion that consumers are buying weapons ahead of this possible ban or restrictions is over.

what are you seeing? >> you know, it's kind of interesting. when you look at our company, and there certainly was an increase in demand on firearms, right after the election, but even if you go back before the election, take the six months before, our handgun business was growing at a double-digit rate, up 14% at retail. our rifle business was growing at 100%. so the business was healthy before the growth in demand happened that was triggered by the election. what we've told people is certainly the frenzy has slowed down, but sales, i talked to about ten different dealers today, and sales are still very strong. >> michael, there's 17,000 law enforcement agencies i think in this country, 800,000 people employed. you guys used to dominate there. what is your market share there and where do you think it should go? >> well, amazingly, smith & wesson, you were right there were 17,000 police department, we used to have 98% of their business.

when they shifted to a pistol in the '80s, we didn't have a product to effectively compete, and we lost most of that business. weave coming back at it aggressively. wel. with the military and with police, it's doing extremely well, you're right, we're winning over 80% of the competitions for contracts, last quarter we announced big departments like detroit, milwaukee, raleigh, north carolina, so we're quickly regaining our position. in addition, we're selling a tactical rifle to law enforcement and winning over 90% of the competition on that. >> how are you doing as far as the military itself? you addressed it sort of briefly? but how about the military? >> that's a big opportunity for our company, and a billing opportunity on two fronts.. one is with the rifle, the m-4. the defense department has said they're putting together a requirement, they'll put out an rfp at the end of this year for replacement for the m-4.

we have a rifle that we think will be competitive and we think or manufacturing facility is absolutely second to none. we're being told the contract for pistols, today the u.s. military uses the pistol that's 25 years old from beretta. > michael, pleasure to have u with us. please join us again. michael golden, the c oeismt from smith & wesson. the one and only guy adami, so we put him in that -- there he is. going, going, gone. stay tuned. welcome to the now network. population 49 million. right now, 1.5 million people are on a conference call. 750,000 wish they weren't. - ( phones chirping ) - construction workers are making 244,000 nextel direct connect calls. 1 million people are responding to an email. - 151 accidentally hit "reply all." - ( foghorn blows ) that's happening now. america's most dependable 3g network

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priority mail flat rate boxes only from the postal service. a simpler way to ship. call or go online now to get started. welcome back to "fast money." we are live at the nasdaq market site. we just got off the line with the ceo of smith & wesson. what do you make of this trade? >> i think last quarter was phenomenal, 99.5 million in sales. the question is, are they out of bullets? this quarter which ends july 31st, really, are they out of bullets? i don't think they'll be able to hit the 99 million mark, maybe somewhere around the low 90s, and you have to understand that if you buy the stock here. >> they made a huge acquisition. these guys have tremendous up side. just think about railroad crossings, there are a lot of ways to play these guys. i think there's 280,000 railroad

crossings in the united states. if they get 10%, it's a a couple billion business to them. smith & wesson is a name that should go higher. patty, great to see you. would you use this weakness as a buys opportunity to on the stock? >> i think you've got to look at yum as more of an international play. we notice china's stimulus has been working better than in the u.s. you might as well go in now and get some of those revenues going for it. i think it's got greater legs and not just chicken legs, if you know what i mean. >> we saw ruby tuesday's come through last week with good numbers.

yum ways better than expected. i think you have to look and see that the consumer is trading down, and this is just further proof of that. add to that the commodity costs are coming down, and i think you have dinner and a movie, something for trading after dark here. >> just real quick, i think burger king is something that's overlooked, despite the creepy mascot. >> yeah, but the creepy mascot, that's why it's cheaper, right? >> it's creepy. i don't want him. i don't like him. >> good point, patty edwards. i concur on that really creepy burger king. coming up after the break, we've got your final trade. if you thought wall street was -- we have another reason why you should enhave everybody who works. stick around.

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>> take a look at wynn resorts. triple l had a great day. >> we will miss you, guy. see you back at 5:00 p.m. tomorrow for more "fast money." [ engine revving ] [ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz, so you're not getting a check. well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance, where if another orbitz customer books the same hotel for less, we send you a check for the difference, automatically.