same time. "fast money" begins right now. have a great night. i'm melissa lee. here are tonight's top three trades. red box and netflix. also reporting earnings. is the heat rising for netflix? is the best trade in oil to go short? and ahead of the curve online. not many people were calling for $100 billion valuation for facebook back in 2007. we'll talk to the investor who made that call and ask him where else he's seeing opportunity. this is "fast money." let's start trading. we are seeing coinstar move sharply higher. after announcing an agreement to buy ncr's entertainment kiosks and dvd inventory for up to $100

million. you see that nice chart there. >> it's something in terms of the business model that coinstar needed to do. it needed to get away from the physical dvds. get more towards streaming. that's favorable. now they're going out with ncr. they're picking up that business. that's good. i think when you look at these earn wgs b the earnings themselves are excellent. the guidance is very good. there were minor concerns about what impact the durbin interchange would be. the cfo is now saying the impact is minimal. seems they're positioning themselves to do all the right things here. the one concern you could have is the train on free cash flow is they have to spaend lot of money. but to counter that, just utilize the stock, continues to move higher. >> because of the levee on small debit card transactions. there was a gap between when they raised their prices and when this took place. but again as joe mentioned it is

limited. >> joe mentioned the free cash flow. to me these numbers they're indicating -- and they talked about, actually, their ability to fund a lot of these new deals in their organic growth internally. 8% to 9% growth, if they can keep that up this is fantastic. they're going after the netflix space. that's where i would look. how does netflix react? this will probably be a more generic version but the ability with 30 million kiosks with the addresses for verizon to solicit, this is going to be exciting. >> obviously the deal is historic but the quarter was outstanding. look at their operating margin. 10.5%, i think they were looking for more 8%. clearly they're running a better business. up seven bucks or so, typically i don't like to chase but this isn't that rich. >> i hate to say it's kind of

like with all due respect and this may be insulting. >> that's an excellent point. also this should remind you, you have to bring back the movies you rented last night. >> you mean the ones with the sub titles. >> otherwise you pay the late fee and it's a mess. >> that's a tragedy. >> i'll tell you what though. we've been talking about the free cash flow. i would follow that money. i think the winners will be the content providers. that are all competing for that streaming business. they're going to have to pay the new deals. i would look towards a disney or comcast who has the best in those worlds. >> and i like the positioning here for coinstar because the partnership with verizon seems to retain the content. and i think that's one of the problems that netflix had. just look at the deal they had with starz. it's how long can you acquire? they're going to gain con tept. it's going to be creative.

i don't know necessarily if it will be feature films or television. but they're going to retain it. >> red box kiosks are used by 40 million people. verizon has 1.2 million people. compare that to what netflix has. so really just in erm thes of size, they've gained the scale at this point to be competition. at the same time, though, 84% of revenues for coinstar are from red box. the remainder is take -- >> pig gy bank. >> i used it the other weekend. >> really? >> otherwise i'd throw out that money. just kidding. >> that's awful. >> the change drawer. no one wants that. >> if it didn't have the coinstar part in it. >> i think you have to credit coinstar here for gaining market share in an environment of opportunity with netflix with the dvd business.

the dvd business, we all know, that's a business that's on the decline. so they're addressing it. and oh, while addressing it they did gain market shares. i think strategically, coinstar really is navigating a flawless execution. >> you just talked about blockbuster. we sat for a long time how could blockbuster not see it changing in front of them? well coinstar is seeing it and doing it. >> scott, you see unusual activity with coinstar, ncr, any of these names? >> coinstar saw huge activity today. about nine times normal. two calls traded for every put. the most active line were the feb 50 calls. that's at the money in front of earnings. but the second most active were the feb 60 calls. they were the second most active line on the entire board. and coinstar would have to rally 20% to get there. there were people who expected a big number out of coinstar.

>> it's interesting that this out of the ventures come out on a day when netflix is making available on the streaming service its first original series. its first original content. it spent a small percentage of its overall content budget to produce this series called lillyhammer. >> which is scary. >> what do you mean? >> i think it's scary. i think it's unsustainable. but i think netflix on a day where clearly there's a competitive threat had a fantastic day. so people believe, again, they are growing organically as well. >> weren't the olympics in lillyhammer one year? >> that's what it is off of. he remembers the olympics. he thought it was a -- that's a round about way there. >> let's not lose fact. there's opportunity still in ncr. it's a name i talked about.

i think it's a name karen last week said she bought it. it's up in the after-hours. the earnings are looking good. the model is favorable. you have a lot of financial institutions spending here in the atm space. so don't think just because they're selling off these assets they had that anything changes in the fundamentals for ncr. lot of folks own it and want to own it. >> let's move to the next trade here. what is the best geographic location for your money? adam parker is out with a report comparing emerging markets. his conclusion, put your money in emerging, overdeveloped markets. volatility, whole host of things. you take issue with this. >> i think he came out we merging and the second was europe. the problem with europe is if you look on the quant basis, it

looks cheap. but it's more of a value trap here. i mean, the austerity measures they have are going to put them into a deep recession. so yeah it might look cheap and might look great on these met c metrics but i'd be careful with europe. >> one of his points is that europe has one of the highest percentage of revenues from em geography. it's a play on em in disguise. >> yeah. >> or you could see em is very vulnerable because of the fall. but germany is absolutely that export trade. em has already rallied 13%, 14% this year. so the deep value, went from 9.5 earnings, we're about at 11.5 times. the biggest compelling reason here is fund flows. last year 48 billion flowed out of em which is as large as we saw in 2008. we've already seen 11.5 billion

back in this year. it's an interesting time. very quickly you want to buy em when fiscal policy is tight and monetary policy is loose. that's what's going on. central banks in em are easing. good time to invest but be careful. it's been a big run. >> we'll talk about yum later so i won't get into it. but if you're not sophisticated enough to get into -- >> come on. >> i'm not. i don't travel to moscow like you. >> you're not the ambassador. >> but you can look at companies that have exposure. ibm has been a great domestic play that obviously has huge exposure overseas. i think there's still ways to play all those regions with stocks that are domiciled here in the united states. >> you mentioned german equities. that is in terms of valuation. you're talking about german equities trading at ten times forward earnings.

20% discount to here in the u.s. the euro continues to decline. that bodes well for germany in terms of their ability to export. i think business confidence conditions in germany remain very high. so a lot of what ails europe is actually working out to be very beneficial for germany. i think the german equity market is underpriced. >> i would say tomorrow morning when we get from germany, i would watch -- there are signs that could tail off. so we had this positive news out of germany. you get this production tailing off, that is a leading indicator. i would be concerned on europe on that. >> quickly, ambassador, u.s. is number three. would you agree with that? >> if em is the entire region, sure. based on the data here and if you listen to economists, they're amazed at how resilient the data has been here. the second half was to be an

emerging. >> let's move to the next trade. u.s. gasoline has been on a tear. saw a spike late last week and is up more than 10% so far this year. our next guest says there's still a bull trade for gasoline coming. joining us is seth kleinman. great to have you with us. >> hi there. >> there's a number of factors there. confluence of factors, in fact. give us a reason for this bull run. >> we liked when we were facing a shutdown of three coast refineries. now looks like valero could be shutting. basically there's not going to be that much gasoline. they're going to have a prolonged maintenance season going into the spring. they're going to compete to is the barrels. we think that's the scarcest

molecule in the complex. we think the best way to play it is be long gasoline and short wti. coming out of north dakota, out of texas. you're really seeing the demise of the crude oil hypothesis. it's keeping wti suppress. >> what do you make of demand being at the lowest level since 2001. and if you look at gasoline and the refiners, does this go back to the mid-continent being the best play? >> yes to the mid-continent because i think ti is toward 20 bucks and is going to be there awhile. if you look down the curve, the odds are still narrow. with keystone dead or possibly delayed. i think that will keep widening out down the curve. i think the gasoline demand weakness is being overstated. i think what you're actually

seeing is an overstatement of a few exports. i think demand -- it's just hard to look at what's going on with unemployment and other traveled. i think the weakness is overplayed. >> so we've seen a bounce in valero from maybe 20 to 24. effectively names like valero have been sideways the last few years. any chance getting back to levels like 2007 when a name like valero was from 65 to 80 dollars a share? >> thing of the past. a big thing for the refiners was the discounts they used to get on the heavy oil. the light heavy spread is narrow and it's going to stay so. it's the strongest part of the complex is heavy fuel oil. that strength feeds into heavy oil. and that's the big widespread between the light/heavies that made so much for the companies.

>> i'm curious. it seems the achilles heel in this is if we get a spike. how sustainable do you think the spikes will be? >> part of the spike -- you may not see such a big flat price move. you can see gasoline prices at the pump only going up 10, 20 cents. that could get you $5 to $10 of that. you could see big moves in wti vers versus other crudes. if you look out of the canadian, the differentials that are gapping lower and lower. they're making multi-year lows. that's why i think -- it's a real rv trade rather than just buying gasoline. but, yeah, i think if you do get a spike especially if it comes on the back of one of the long list of potential supply disruptions. any of these.

then i think it's bad for the global economy as a whole. i think oil is still very much on the list of the macro here. >> great to speak with you. hope you'll come on the show sometime soon again. seth kleinman over at citi. what was your number one take away from that? >> cvi name. steve and i have talked about over the last year. still names you can own. carl icon 3 million shares. >> take a look at apache which beat. and these guys are one of the main beneficiaries of the shale gas. so the four eagle, but again these guys are also recovering oil and effective -- i think this is a story which has not broken out of this range in the last six month bs. >> got to take a break. next on "fast," could the fracking controversy turn the american oil drilling boom into

a bust? we've got the story and the trade after this.

welcome back to "fast money." we're live in times square. let's take a check on yum brands. trading higher in the after-hours session. the question app this point that i think a lot of investors may have despite the bullish outlook they have is valuation. >> there you go. >> and dividend yield when compared to mcdonald's, just to throw one out. >> i think you hit it on the point. right now yum is 20 times forward earnings which mcdonald's is probably like 15 or so. you have to ask yourself, at what level do you stop paying for this multiple? i don't think we're there yet. we've been consistent on this stock. i still think it has some further upsides. they seem to be saying all the right things. the stock continues to perform for you. i just don't think we're there yet. >> if you're concerned about the

valuation, there was one thing in this report. their margins decreased a little bit. that might be the one thing that starts to get people to say i don't know if i want to pay that multiple for it. if you get a sustained run on this, i would trim out higher. maybe 3% higher. >> the break these guys have in china is -- very profitable business for them. they're not buying business. they're not spending a significant amount. so e.m. which is still over 50% of their growth, china same store sales up 21%. so they're doing more business in existing places. they're opening new spots that are more profitable. maybe this is a higher multiple to trade on. i think that's what people are weighing it. it's not cheap relative to 15 times where it usually trades. >> in terms of the international growth story, these are the statistics. company saying 75% of revenues will come from international businesses. china alone will be 50% of its business in 2012. this year. >> they've made a conscious

effort to focus on china since 2005. i think the number of stores is somewhere around 4200 in china. i think mcdonald's is maybe a third of that. within these earnings, i think the suspicion was the u.s. we were going to see comps decline around 2%. you're seeing that higher. i think you look at the valuation here. you say that where they're trading is warranted. again, just use stock. >> seeing people willing to pay up through the options market for a yum brand? >> absolutely. options got significantly more expensive today. increased over 10%. and i think for the reasons guy laid out, when does that come to an end b? and people didn't want to have to sell the stock. we did see people go out and buy some puts. more puts traded than calls.

because we want to stay along the stock again. they're worried about valuation. >> the differential and the yield too. it's about a percent which is big. >> i'll say this. last february 1st, remember chipotle reported and it was disappointing quarter and the stock was down. but we said given the multiple it should have been down a lot more. well, look at today. closed lower made a new all-time high today. >> real quick. you want to see yum brands hold above 64.76 which is the 52 week high in tomorrow's trading. >> in a couple weeks we are expecting to see federal rules on fracking. what might this mean across the country? brian shackman is back with some names to consider. >> with those rules might come a requirement to disclose what chemicals are in the fracking water. the anti-fracking movement has a

little bit of momentum. the oil boom i focused on will go away virtually overnight if fracking were stopped or limited. the operators there don't think they should be lumped in with the other shale. they drill deeper and have not had serious reported problems. the first to get hit by severe changes would be the servicers who do the fracking. all say leaders in this group. halliburton does disclose on their website. then there are the folks who have real estate. a smaller independent. stocks up 45% in the last months. continental has a huge footprint and hess owns the most in that region. you might want to ask why is stat oil on this list. late last year, they bought exploration which is an aggressive player in the bakken and they're well respected out there. if the north dakota oil boom went away, the stat oil would be

fine. back to you. >> thank you so much. in terms of some of those names, also we had the ceo of heckman cooperation on. he said it's going to be good. and more regulation is better for his business because he deals with the water. there's all sorts of waying to look at the fracking play. >> that's exactly what i was going to say. play it. why take the risk of having some government intervention and stoppage of it? just play it where it doesn't what happens. >> this kodiak is interesting. it's trading about $8.80. that's a stock that it had a huge run obviously earlier this year. it sold off a bit here. i think this is worth a look. >> pxd a name working. want to have a focus on the basin. that appears to be the place to be this year. not marcellus shale.

>> exxon to me back in the u.s. is a place where their liquids is away from nat gas. people have underestimated exxon. this is the place that people forget about, but the xto purchase would look like genius down the road. >> all right. if you want to learn more about fracking and the industry, premiering tonight america's oil rush boom or bust. a modern day oil rush in willingston, north dakota. comes rising crime and environmental concerns and the potential to go bust. that's at 9:00 p.m. eastern time. next on "fast money," the ambassador back from mother russia. did he bring back any souvenirs? is he making any trades after his trip? find out after this.

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welcome back to fast. ambassador is always looking for investment opportunities. his latest stop, russia. so what are the big themes that came out of that trip? and how should you trade it right now? >> well, they dropped me in a doll. that's pretty cool. the theme is first of all politics. everyone is concerned putin no longer has the grip or maybe this is a good thing and it means russia will crumble under the weight of political -- a contested political outcome. look. putin will win elections in march. he won't win them by 70%. he'll probably win them and ideally in a second round runoff. either way western media is much

more consumed about this. the other thing is russia is concerned about what's going on with u.s. shale gas. as tries to cut a deal with china about pipelines that require commitment for the next ten years. china wants to see gas go to contracts. and what exists now between spot and gas prices which typically have always been linked to oil prices which is what russia wants are reasons this is not getting done. in russia they're looking at europe and saying fiscal austerity is actually a bad thing. viewed a panel where putin sat with michael milken, the head of spare bank, and they had an intellectual discussion. the main conclusion was fiscal austerity even though greece is ultimately -- it's a fore gone conclusion they leave the euro, fiscal austerity right now will kill europe.

this is the worst thing europe can do right now. even the russians believe in a little stimulus goes a long way. >> in terms of the trade, it sounds maybe you want to go to a play that's domestic russian market, non-oil? >> well, i think while russian oil stocks remain cheap, yeah. look at the consumer names. is potentially at record lows this year. you might see 4% year over year inflation in russia. but the consumer who is getting their political influence and education from the internet is very interested. and seems liex yndx which trades on the market. and actually look cheap here. and the plays which are mobile internet and broad band are v.i.p. and ntb. on a special trade here.

>> is it getting a facebook halo? >> they own 2.9% of facebook. it's hard to talk seriously looking at me in that doll. >> what's up with the hair? >> i think i have a hat on. >> oh, it's a hat. it's cold in russia, right? >> what was the weather like? >> it was about 20 below. it was ridiculously cold. you know, there are ways to stay warm. >> there are. >> we'll save that for the nighttime edition or yeah a web extra. >> let's ask you a serious question and obvious one. can you speak russian? >> i can order food. i can get around town. but i cannot have a terribly proficient conversation. >> so mel's the only one with proficiency in another language. >> i don't think you can call it that. i can speak english. that's about it. all right. let's move on. will the headline risk out of europe continue to add pressure to the euro?

let's get the information from willy. it's great to speak with you. let me back up. because i want to start with your trade and back into that thesis. you're selling aussie dollar against the swiss franc. perhaps the market will pull back at this point? >> i think there's a risk as you were talking about earlier. some of the fiscal austerity coming out will impact modty prices and start to effect that part of the world. as of right now the australian dollar has benefitted tremendously. >> so walk us through the levels at which you would get into this trade? >> i like selling aussie swiss at 99 with the stop lot at 1.01. i have a target level of .95. fundamentally i think we are in a risk asset rally as the fed and the ecb are determined to do everything they can. it's just as current levels

we're due for a pullback. >> i see the idea behind the australian short part of this. it's the swiss franc being long that worries me. the bank is going to try to weaken the swiss as much as they can. >> i agree with that. at the same time as we sit on the 1.20 level, i think the s&p is in a position where their back is against the wall with regard to the political will to risk to try to intervene aggressively and have it not succeed. they lost a lot of money from 2009 to 2010 doing this. and i think that with the former snb head going under the conditions he went under, there's a lot of political pressure not purely economic pressure driving the decisions of the snb. >> so you think the 1.20 level holds? or does that break? >> i think the 1.20 level can hold. the issue is it is now against other high-yielding currencies. if there's any noise they're

wavering, i think you could see a pullback in those crosses assisting all the swiss and trading lower. >> good to see you. get more "money in motion" on fridays on cnbc. up next, we'll talk to the man who made the $100 billion valuation on facebook five years ago. find out what he's betting on right now. ♪ [ male announcer ] for our town. [ dog barks ]

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i really think facebook is a microcosm of the internet. if they were to sit on their hands and go public, you could see google-like numbers in the valuation. so google's at 150 billion dollars market cap, eventually facebook would hit that if it goes public and stay threw it to the long hall. >> that was james five years ago saying facebook would be worth $100 billion if they went public. when facebook filed for the ipo last week, those same figures have been the talk of the street. let's bring in the man who made that call. james altucher. you don't look a day older than

that clip five years ago. >> i exercise a lot. >> that's obvious too. >> all right, james, if you had a chance to be part of the allocation. what would you do with it? >> you mean right now? >> yeah. i mean, would you hold on to it or would you sell it as soon as you can? >> no. i think facebook is definitely worth more than 100 billion at this point. it's hard to pin an exact number on it. but in the long run, you're talking about the largest website in history. and it's continuing to grow. advertising dollars are continuing to move on to facebook. and every part of their business is going to continue to grow for the next five years or more. >> everything is coming up roses. but, james, how -- when you take a look at some of the metrics if you look at revenue per user with they're bringing in revenue but still the revenue per user

is less than netflix, less than groupon. it's about five bucks a person. >> i don't think they really turned on the spigot. for instance, 3 million websites use the facebook like button. they could just overnight turn that into the largest ad network in the world. they generate zero dollars from it at this point. we also don't know how much of the overall world advertising market is going to switch dollars to facebook. i think it's going to be a significant number. it's only about 3% of the world's ad market right now. we've got a long way to see where facebook will plateau. >> do you think it enters the mobile space? >> i do. that's one of the fastest growing areas of facebook in terms of usage. but they've generated zero dollars in revenues from it. the ad space is not that big right now, but it's only going to get bigger between 2014 and

2020. that's going to be a big part of their revenues eventually. >> as i see it the biggest thing they have going for them is the entry. every guy that's come to get in this space they have crushed. do you still see that continuing into the future? >> yeah. because think about it. facebook has never had any competitors actually. this is the very first global social network. the first network to be used in every country, in 70 different languages. that's a huge mode to cross. so i don't see any competitor out there for them. >> you made a good call five years ago on facebook. you come on to this show and made other stunning calls we maybe laughed at a bit behind your back. or made fun of you. >> yeah you made fun of me. >> in terms of apple where the dow is headed. give us your next prediction. >> you don't have to go too complicated here.

apple trades and has 100% growth. it's worse than a utility company would trade. so apple's a no brainer to me to hit a trillion dollar market cap within the next year. >> within the next year? >> it should be there today. so that's why i'm giving it a year. >> all right. we'll see if you're right. james, always great to hear from you. >> i'll come back on a year from now. >> sooner. james altucher. formula capital. >> that'll make apple a thousand dollar stock. it's a bold call but he's right on valuation. i think, however, apple is still vulnerable to the competitive landscape that is now catching up. i think there are products as good as the iphone and ipad. i think people expecting the next wave of growth which is apple tv are places they're not as much of a clear-cut winner. >> let's move on to the next trade.

soybeans, corn, wheat all moving higher. dennis gartman is here. >> always good to be seen on this show. >> all right. it's all about the weather patterns of late. are they sustainable? >> having come back from mother russia and i was there once -- i've been there many times. until you've been there at 38 below zero you don't know what cold is. but they have that in russia. it is probably doing very severe winter kill damage to the winter wheat crop. that's put it into the wheat market. then you have on the other side down in south america, unbelievably hot temperatures in argentina and brazil and drought conditions which have diminished the size of those crops. so you have diminished crop sized in south america and russia which put a bid to the

grain markets. probably going to take prices still higher. >> so very bullish fundamentals for the grain market. then we see podesh and mosaic saying they use -- is there something else going on? >> i think something else is going on there. i think what you're seeing is the better use of computer technology, gps systems. now instead of having someone go out to the corn crop not knowing how that acreage looks out there, all you see a around the corner. and you used to apply nitrogen and fertilizer to the worst possible levels. now you have a seeing eye coming down looking from the sky on a gps system, sending a signal to your tractor to adjust the amount of fertilizer for the next quarter acre using far less. they're using fertilizer for

what they need. less runoff, less usage, and more specific. it's not that the crop size is getting less. it's that our farmers are getting far more sophisticated with the use of technology. i think that's what's going on here. >> dennis, always good to see you. >> always good to be seen. >> all right. next on "fast," if you want to trade the refiners options may be your best bet. plus the coinstar conference call. more "fast money" coming up next i'm freaking out man. why? i thought jill was your soul mate. no, no it's her dad. the general's your soul mate? dude what? no, no, no. he's, he's on my back about providing for his little girl. hey don't worry. e-trade's got a totally new investing dashboard. everything is on one page, your investments, quotes, research... it's like the buffet last night. whatever helps you understand man. i'm watching you. oh yeah? well i'm watching you, watching him. [ male announcer ] try the new 360 investing dashboard at e-trade.

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let's hit some options action. scott, what's the trade? >> i heard what seth had to say about the spread between gasoline and crude oil. that should help valero. so i want long exposure. but i also heard that they've been sideways since the end of 2008. there's a great options strategy to do exactly what we want. that's a risk reversal. again in valero, i like buying the june 27 call for $1.10, financing it by selling the june 22 put for $1.10. i'm out no net money on this. but i have long exposure, long

valero. if it's above $27 or below $22. but i like this because there's this huge margin of earning. if valero's not out of that range by june, then it's no harm, no foul. >> catch more "options action" on fridays on cnbc. next on "fast," the tratders answer your tweets. we'll also get the latest from the coinstar conference call. people with a machine.

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welcome back to "fast money" live at the nasdaq market site. let's get a look at coinstar in the after-hours session. rising as much as 15% as we're seeing here in the after-hours. this conference call is going on. let's bring in analyst at webbush securities. michael, i'm guessing at this point they have addressed some deals the companies announced today. >> they have. they haven't been particularly satisfactory in talking about the verizon partnership. i'm not sure if that's them or verizon hasn't figured what to do yet.

but they talked about the ncr acquisition which i think is huge news. they did talk in great detail about the changing fees. they talked about the price increase taking effect. they haven't addressed netflix attrition. i think they saw a lot of customers come from there. there's a lot of different moving parts going on here. i think the stock goes higher. . once these details come to light, once analysts reflect on this, you'll see the stocks go higher tomorrow. >> a lot higher meaning a short-lived pop? >> i'm hopeful in the sustainable fashion. i think it'll drift up to 72 in the next year. the real key here is that people think dvds are going away, and they're not. the studios get over $10 billion in dvd sales in the u.s. alone. about $7 billion in profit. that's more money than they make in theatrical exhibitions. they care about making dvds. they're going to keep making

them. as long as there are dvds, red box can stay in business and rent them. red box is the cheapest for infrequent renters. you're a high volume renter, you go to netflix. >> i agree with you in terms of the price appreciation. but one of the headwinds that's been mentioned i guess from the other side is the drain on cash, the free cash flow, the amount of money they have to spend in 2012. is it a concern for you? >> you know, if they were pissing it away, yes it would concern me. but they're not getting up on top of their building and throwing it into the street. spending $100 million to take ncr out, that was their biggest competitor. it could have been gotten bloody and i think it would have hurt them. spending money, you know, i think on this verizon partnership could be a good deal. if it's priced right. if the consumer gets an offer that's compelling.

i think they will actually make money from it. i'm not sure yet. don't know if they'll do a pay as you go. if it's limited, i'm not sure it'll be that successful. but they're talking about $19 million investment level for the year. so it's not going to break them. again, this management team doesn't seem like they're really big spenders. they're pretty prudent. they've been returning cash to shareholders the last couple years. i expect that to continue. >> don't they have to be big spenders to compete with netflix and everybody else? >> i don't see them competing with netflix the way that most do. netflix has tens of thousands of titles. 23,000 at last count. of old stuff and most of it is tv shows. this partnership with verizon, very sparse on details. but it's a jv. looks like verizon will put in streaming content. coinstar will put in the new dvds. so they don't have to spend the money on content acquisition. that's why i said it's a pay as you go deal.

more like amazon and apple. 99 cents for a tv show. if you want a new movie, go to red box and get your movie. i think they'll do a bundle pricing where you get the equivalent of $25 on amazon for 20 bucks. something like that. but i don't see them doing an unlimited all you can eat. that's where it gets costly. that's why i think netflix stock is way overvalued. they cannot continue with an unlimited appetite for the consumer. this will be limited. >> thanks a lot for your time. got your first move tomorrow when we come back.

today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms.

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and we've been honored to walk with you to help you get where you want to be. ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. time for the final trade. scott? >> i think it was interesting the vix was high all day. i think people are worried gop political issues. >> go giants. stay with the new york over boston tray in their quarter finals in the nhl. go russia. go giants though. >> good job outs of you. human genomes. interesting couple days. gsi. >> i still do like tlt. >> i think disney's earnings are going to be great tomorrow.