i'm melissa lee. here are tonight's top three trades. cisco and groupon moving after-hours on earnings. we'll break down all the after-hours action. plus whirlpool is surging this year. it's up nearly 50%. is it too late to get in? the traders will duke it out. and the $5.7 billion war of words between roche and illumina. karen's got the fine print. live from the nasdaq market site, this is "fast money." let's start trading. to the after-hours action in shares of cisco moving sharply higher. seeming to deliver on all metrics. >> they did. you talk about one of the areas everyone was going to focus on

is margins. they look like they have stab stabili stabilized. when you look at how did intel do? they had record numbers. apple blew the doors off with the $7 number on the earnings per share. when you look at how they've perform sod far and how they've gone into the earnings, it's been impressive. cisco has filed this today. year to date, unbelievable performance. and it's that inner price spending that's finally come back. they're beat as far as the revenue. $11.5 billion. >> this is where the message of the markets actually works. the stock has been telling us this for quite some time. it's been on a rip ever since. people have been doubting that it was a real turnaround. it looks like chambers is manufacturing a structuring. >> you're a believer aren't you? >> i'm a believer. ipg this is a bit of vindication for mr. chambers.

one thing he said three or four times in his interview with maria, they are into their market place before their competitors. at times juniper's numbers were okay but cisco's were bad. i think you have to listen to cisco. what they've told us, for example, about the government spending i think is very important. but more importantly, they have somewhat reinvented themselves. they do have more balance in their business. and all these things that were a bit of disaster. companies got $22 billion of cash in the balance sheet. it's a blessing and a curse. and people want to talk about their dividend or lack thereof. people want to talk about the growth. either way, this is a fantastic quarter. record earnings. i think people at least back on mr. chambers' side in terms of you don't need to show me. we know you guys are still head of the class. >> i'm glad you brought up juniper. it is trading higher in the after-hours session. last quarter they missed. and everybody looked into the saying what does this mean for cisco. when in fact a lot of analysts came out saying you know what?

maybe juniper's missing because cisco is reengaging with their customers. this according to one analyst over at stern agee. we're seeing it trade slightly higher. and on the point of the dividend, didn't we have ralph nader on? a share of 18,000 shares. he got a decrease. it's now eight cents is share. it's a 33% increase. is it going to make a dent in the 60 -- $54 billion in cash they have or so. >> probably not. they continue to make money when they pay out the dividend. the valuation here is not stretched in any way. so i'm giving the cash. the multiple is still very low here. certainly versus their historic

low. it's worth a look here. even though you could have bought it cheaper a few months ago. the question is where do you go from here? worth a look. >> let's bring in brian marshall listening to the conference call. brian, your impressions from the call? are you getting any indication from chambers that this is a turnaround -- paret of the turnaround behind it? >> obviously the quarter was good. i do think this has momentum. clearly the company's back on track. they grew 11% year to year versus the guidance of 7% to 8%. that is off the low comparison from last year. but they raised the dividend 33%. so i think things are moving in the right direction. numbers should be going up. >> in terms of capital spending from telecom companies, we're getting reporting from other companies that they were in fact cutting back. are we getting any indication

from cisco management that they are in fact seeing this? >> well, obviously that's a very challenged market. pretty impressed levels. the best place to look is at juniper. we think it's going to bottom within the next six months and start to bottom. 12% in terms of revenues year over year. that's relative to the competition. i would say they had good product cycles over the last couple quarters ramping up like their new core router. so got a good product cycle. i think that's indicative of the growth. >> hey, brian. with the reaction to juniper, we got through that. now you're seeing what's happening with cisco. but juniper reacting on the positive side with this number. are they getting market shares -- is it stealing away from juniper toward cisco? is that where cisco's winning? >> i think it's more of a time of a product cycle than replaces and switching. juniper actually is our top --

they've got a low downside and favorable upside. i think from a risk reward basis, screaming buy down here. it's going to take a bit of time, but i think juniper is very attractive. over the next four quarters, i think juniper is going to look better than cisco over the next four quarters. that obviously has not been the case over the past year. >> are you getting the sense that john chambers is still the chambers we have known in the past? what is his tone? and listen for it as if that's going to be some sort of bellwether for this sector and the industry? >> sure. i think he's cautiously optimistic. he's one of hey we had a difficult time over the past couple years. i think things are coming around. our strategy is working. they're gaining share in the market place and certain areas. they're really focusing on intelligent areas. i think he feels good about where the company is going forward. >> going to leave it there.

thanks so much for your time and analysis. brian marshall of isi. we are seeing a reversal on the gains on the back of those earnings. >> still some value. at ten and a half times to 15. you're still to the five year historical. and different than juniper. at least we haven't listened to this call. we're getting more information tonight on the call. but juniper didn't give a good outlook. on jan 27th they got pummelled. i think cisco has told you, again, they have a much more balanced business between the enterprise and the commercial. i think that's the place you have to feel more comfortable with this company. >> it looked like on the chart at least cisco lost all of its gains in short orders. we'll have to check later on. we'll get the latest from him later on in the show. meantime we've got to hit diamond foods. plunging 40% in the after-hours after the company said they need to restate 2010-2011 financials.

just a month ago he raised this key question questioning whether the prie the previous was in jeopardy. >> this goes back to when mark robson came out for his clients of his independent research firm raising question about these momentum payments to walnut growers. now, the issue her is whether the company somehow inflated its reported results as a result of the way it handled this accounting for this. the justice apartment is new news. that's where proctor and gamble will step in. how patient will they be? >> we've got to bring herb back. is there any clarity on what the status of this may be. >> what proctor and gamble is they're evaluating the next steps on the pringles sale.

and they're keeping open for the deal. but i have to tell you something. when i go through the merger agreement, they have what would appear to be an easy out here. because what they say in the merger agreement to get out of the deal are that as of january 31st, 2011, there will not have occurred any event occurrence or condition which would have had reasonably occurred anything to cause the material effect to the company. there's clear wording here. there have been changes. not only changes to the financial statements, you have a new ceo currently interim. new cfo, currently interim. you have a lot going on here at diamond. >> it's karen. i would agree. i don't think the ceo or interim ceo or anyone else would change

it. the reps they were accounting were appropriate. now they have to restate. it gives p & g multiple ways out. aren't they technically issues shares that i don't know if the board could be on board with the shares they are to validly authorize shares given what's happening with the account of the company. >> the whole value would given the stock. that's for certain. >> let me ask you a quick question. we've seen on these accounting issues many times in the past the first announcement is far from the last. this is more than just a bomb shell here. what else do you think we can expect down the road? because it's never just one or two headlines in a situation like this. >> the justice department is investigating this. so you have some other issues here. what will they find? what could they find? what was their intent? there are other things i don't want to bring up related to this deal that were quite troublesome that the timing of some events. the real issue here is take a

look at wall street. how they push this to investors. look how the stock went up. since that justice department announcement came up. look how some brokerage firms rolled out experts to say there's no problem here. those are things you want to look at when you look in this market. how you just say and say huh? >> remember the analyst who said he went to visit some of theess walnut growers and talk to them personally. and for that reason he doesn't believe there are any issues. the walnut jack didn't work. cracked the story, so to speak. >> there you go. but you go back to mark roberts of wall street, straight research trying to figure it out. saying the numbers don't make sense. guess what? sometimes even in this market, the fundamentals still matter. >> karen, if they reissued this at the same time january 30th, would that have taken off the

january 31st event? would that have been triggered? >> sometimes you have some time to cure it potentially. this is gigantic though. i can't see how the deal holds together. i don't know that it matters for p & g. it was a great sale price. >> but if they have other potential bidders now, you never know what they've got going on, karen. that adds to the equation here. it's interesting that p & g is telling the media that right now. >> yes. >> they're sending a message. >> yeah. herb, thank you very much for your reporting. keep us posted on any developments. meantime, when p & g says it has other bidders you've got to think -- >> pepsi. >> right. you've got to think pepsi. >> salty snacks. that's where we live. >> is there an anti-trust potato chip issue? i don't know. >> chips have proliferated. there are numerous brands that didn't exist years ago. >> there may be pepsi brands

under another name. >> a rice cracker or something. >> i should be going for a rice cracker. >> rice cake, perhaps. >> i should go for an empty plate is what i should be going for. >> anyway. we've got to take a break. stick around. more after-hours action ahead including whole foods, visa, groupon, and the latest from the cisco conference call which now is trading off the highs of the session. flat from where it closed during the regular session. more "fast money" coming up next. ♪ our machines help identify early stages of cancer and it's something that we're extremely proud of. you see someone who is saved because of this technology, you know that the things that you do in your life, matter. if i did have an opportunity to meet a cancer survivor,

i'm sure i could take something positive away from that. [ jocelyn ] my name is jocelyn, and i'm a cancer survivor. [ mimi ] i had cancer. i have no evidence of disease now. [ erica ] i would love to meet the people that made the machines. i had such an amazing group of doctors and nurses, it would just make such a complete picture of why i'm sitting here today. ♪ [ herb ] from the moment we walked in the front door, just to see me -- not as a cancer patient, but as a person that had been helped by their work. i was just blown away. life's been good to me. i feel like one of the luckiest guys in the world. ♪ with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor,

right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.

welcome back to "fast money." we are live at the nasdaq market site. we want to get the latest from cisco's conference call. we want to go to jon fortt. what's the latest here? >> hey, melissa. grab back of things. john chambers just said that cisco's productivity is up 20%. but more things on q3 that they talked about. q3 eps looks like it'll be 45 to

47 cents is what they're projecting. the expectation was at about 45. gross margin 61.5 to 62% operating margin 27% to 28%. now, the overall revenue, their forecasting growth 5% to 7%. that's more conservative given the fact they did 11% this quarter. but we're being cautious. including thailand saying that they expect several quarters of difficulty in thailand. so hey, they're just going to be cautious. chambers said that these are unusual times. they're doing well. >> you said several quarters of difficulty because of thailand? >> he did say that. which i thought was interesting because a lot of people say they expect thailand to start improving in the second half. >> exactly. >> they appear to be sort of throwing the kitchen sink in here in a way to kind of keep people cautious. the stock is up near 52-week

highs at this point. they've been through a rough patch. you get the sense from both chambers and caldaroni. >> keep us posted on other news off the call. let's get to the second derivatives. both of those stocks appear to be trading lower in the after -- actually i take that back. f5 is trading lower. in terms of how you measure the impact of cisco's growth on these names. >> this is where you're looking for for the explosiveness. the names you trend towards or whatever where you have a lot more certainty. those big growth names, they've had a huge explosion. f5 that has been running off the charts. kind of makes sense. >> in terms of the options activity either on cisco. >> cisco had a lot of bullish

activity. the expectations were for the stock to get up and over $21. it did. now it's pulling back to where we closed on the session. maybe a little bit surprising it's gotten so calm in the after-hours. >> i think riverbed would be a great options play. it's been stuck in this range. meanwhile it's a stock that at 65 times earnings is set up for a big disappointment. huge growth priced in. it's almost worth making a bet. >> betting to the downside? >> yeah. it can't -- it's stuck at 28. there's a lot of resistance there. it seems it's setting up for failure. >> i have not seen the option that i've been watching, nothing has stuck out to me where people are betting on the fact they would pull back. that is a high valuation. that's part of the growth cycle as well. >> i don't know why you don't just stay with large cap tech. they're grinding higher. they're all working very well. the valuations are modest. seems like the -- >> but i think you want to have that big cap tech. but if it's okay jump into

akamai. you go from one side to the other. the content delivery soared. it makes some sense. this is something we've talked about for awhile. yet the stock price didn't reflect that. for a long time it's gone from $50 a share to underneath $30 a share. here you're seeing the results of apple, netflix. they did an acquisition that brought in google. you're seeing the content delivery explode. >> akamai is trading up in the after-hours. whole foods reported better than expected earnings. next guess is the company has no competition on the horizon. let's bring in karen short. she joins us on the fast line. great to have you with us. we know you're a bull on the stock. but did the company say anything about food inflation or food prices? >> thanks for having me. they did. the call's going on right now. they did comment that inflation is starting to abade a little

bit. start to mix more heavily skewed towards traffic. that's another indication. >> it's karen. let me ask you something. do you think there's competition in the fresh market or from some of the more traditional grocers trying to offer more of a premiere brand? does that -- how have they been successful fighting that off? >> no. i think fresh market is just a different customer demographic and a different shop. i think what whole foods is doing is getting a core customer that uses a whole foods store as their core shop. and the fact is they have a differentiated option that focuses on health and wellness. there are some private ones like wegmans but those are fairly regional and not -- i don't

dismiss them as competition, but whole foods is in a league of its own. >> the health and wellness portion that you mentioned, it does seem like whole foods is reaching out to get deeper into a lifestyle type store adding advice and guidance. how much will that attract customers and separate them from others? >> i think it makes a big difference. i think consumers are increasingly concerned about the quality of their food. and you look in a store now and you look at the prepared food and look at the ingredients. i mean, oil used to be a pretty highly used ingredient. in terms of their prepared food. you don't see oil listed as an ingredient in the items they specifically call out as health and wellness. i think as you continue to have all these scares with genetically modified foods and things like that, it's a go-to destination.

>> it's tim. you talked about that they don't really have any competitors. i look at the valuation and look at them relative to themselves. ultimately, this stock is also priced for perfection. around 35 times trailing earnings. historic for these guys is 27, 28. you know better. but at some point you have to say first of all these guys, do they deserve almost a 40 multiple? is that the type of multiple we should pay for a food retailer? and is that sustainable? >> well, i guess i would say i do -- i don't disagree with you in terms of the numbers. but i first would point out is what's the e. because they're operating margin this quarter was at the highest its been since 2005. and in terms of their first seasonality of the first quarter. so then the question becomes what's the real e? is it the guidance or higher. they overdelivered every year for the last three or four

years. and a metric i tend to look at. i don't know if they're that unreasonably valued. they're slightly higher than their historical. but they also have not been in a situation where they're generating cash in the order of magnitude they are. they have a dividend yield, they have accelerating unit growth. with all of those elements, i think that it deserves a premium to what their historical would have been? >> karen, thanks for your time. we appreciate it. you bring up a good point in terms of valuation. this stock has been on a tear. hit a new high in today's session. and if you take a look at hain which is cheaper than whole foods at this point. >> there's a manufacturer and then there's a retailer. and i think there should be different multiples here. it would be great if there was a camera on joe terranova right now going through with a

buckwheat flour. >> how do you know about the products? >> he talks about them. >> what does he do with the buckwheat flour? >> what would you do with it? >> i have no idea. that's the first time i heard of it. >> but it has to be growing. how can you sustain a p.e. like this? >> as long as they're growing stores, it's a much easier sell. to get a valuation. and all of retail, as soon as you go versus expansion, that's when the stocks run into trouble. as long as they continue to grow throughout the united states and elsewhere, they'll get the benefit. >> they are growing. 24 to 27 new stores by september is the latest for whole foods. mike khouw, you like this stock? >> they've been buying upside calls. i think when thing to do with the valuation here. sell some at the money or out of the money calls here. they're well bid. you'll collect 10%.

>> 10%, not bad. thanks for that. go t to take a break. up next we're translating roche and illumina's war of words. and there's a major hedge fund who thinks so. we're tracking unusual activity in the stock. more "fast money" up next.

[ ma] the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. 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.

welcome back to "fast money." the board of illumina rejected roche's $5.7 billion bid to take over the company calling the r grossly inadequate. what happens next? karen's got the fine print. you were in this trade. that's your perspective. >> i am. you have to read through what they're saying and what it really means. it might not be apparent from the language they use.

the offer is grossly inadequate and it's an inopportune time. that means they are just saying no. and they are not for sale. this is the just say no deference. then they say we're unique. the translation is okay, roche, you have to pay up a big price. roche then says full and fair. this is a full and fair offer. that means it's not our best. not our final. so you think they have more money in their pocket. and finally roche says we are ready to commence discussions, meaning we are ready to pay more. that's what's happening behind the scenes. then you look at, what are the next steps? how is this going to play out? and they can wait for the meeting. and let shareholders help soften the illumina board. but as you get close to the shareholder meeting, shareholders will then turn against roche and say we're not going to vote for you unless you pay up.

it's an interesting dance but i think it will play out unfortunately a little more slowly than i hoped. we will see a bid higher than what roche opened with. >> do you think there will be a trade? remember we had an event strategist on who says he does believe that a deal will be done. it will take a longer amount of time than we think. but there will be a higher bid and it will get done. >> i think all of that is true. roche just threw out this lowball bid at the beginning knowing they had no intention. this was not going to be the price. >> so you are playing the game of time arbitrage right now. enough to make it the cost of holding on, correct? >> we were talking about this in the break about look at what's happening to the options. i think the enthusiasm from day one has gotten -- >> on day one they were coming in looking at the 55 calls. nothing since then. i mean nothing. so the stock already is trading at a bit of a premium compared to the bid price.

it's not fallen off of what the bid price was. they're expecting to see something down the line. but how much more are they willing to spend? the options say not much. >> do you sell the stock? >> i would not sell the stock. i think you will start to see the bid increase at some point. but the options were pausing and waiting. >> are you in the options or stock? >> i'm in a combination. also i had some 55s i bought for 15 cents. i thought here's a shot. risk 15 cents to make some multiple of that. likely the risk 15 cents go to zero is what's going to happen. but i'm long the stock. i think it is a unique asset. i think there will be other players. but it's not going to be a home run early. >> all right. let's hit shares of visa. posting better than expected earnings. they're also authorizing a $500 million share buyback here in the after-hours session it buzz look like if it opened at dheez levels it would be a fresh

52-week high. you got interested in visa on the back of mastercard's earnings. >> had nothing to do with the sheer buyback that they presented. but when you look across at what mastercard had to say. when you look at the debt of transactions as well as -- or the debt cards themselves as far as the use of that. the transaction numbers, the revenue numbers across mastercard, i still think visa can compete with them anywhere in the world at this time. my assumption was if it's good for mastercard, it's better for visa. >> i total this agree. the prepaid card business for them like places in africa is a huge business. swipe fees we're out of here. we're going to grow out of the united states. so they're going to be -- they're around 56% u.s. they will be below 50% in the u.s. in five years. i think this is a great story. it's been one of the best performing stocks in the s&p for the last year.

they beat every time. and these guys aren't softballing it. >> it's going to credit cards and moving away from cash. it's what's going on. unless you're not paying attention, every dip has been a great opportunity. >> there's been another change in technology. much more on that part of the visa story tomorrow on "fast." and how beefing up for the transactions with stephanie eriksen. that's tomorrow at 5:00 p.m. there are trades off that. one of them karen is actually in. you'll want to tune in for that. let's stick with the financials here. momentous day for bank of america. it is what it is. >> up from five. >> it's a momentous day for bac. saying in an interview today that it doesn't get any better than bank of america when it comes to value investing. and yes, by the way, he is long the stock and has been for quite

some time. below $8. but that aside, you're seeing unusual activity. >> it's been going on for months. when you look at yesterday traded at almost half a million. today almost a million contracts. they continue to come from upside. when i say they, look at the volumes across the february 8 strikes. you can go out to various months. go to the january 2013, the seven and a half strikes. volumes are off the chain. ridiculous. some cases are half a million in some of these open interests out there. so there are a lot of folks out there that are betting on the fact that bank of america is exactly what bruce berkowicz is talking about. there's still upside. and maybe if sam's right, maybe we'll see some sort of dividend returning to the citis, bank of americas at some point. >> it's still compelling. so mathematically you can have a run up and still be far below

where you were the prior year. which we are in bank of america. still trades well below book value. if we get some of these state attorneys general to finally craft a deal which is hard to do, i think that would be -- remove one big overhang in bank of america. >> in 2009 we talked about the banks being a major play. and that the fed was all in. you buy anything that was interest rate sensitive. also talking about getting another opportunity at some point near the same levels in 2009. that opportunity is now here. and if they aren't back up in the truck and financials -- >> backing the truck up even though it's coming back down. does that matter? >> that may be the question i pose to karen or ron. i don't invest in bank of america. if you care more about the. rks e or the price to book here. the balance sheet -- right. that's what you'd want. and again we're waiting for a place where we get normalized earnings. >> that's the key. >> got to take a break here.

we'll break down groupons big after-hours drop. stay tuned. in america, we believe in a future that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪ 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. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] now there's a mileage card that offers special perks on united, like a free checked bag, united club passes, and priority boarding. thanks. ♪ okay. what's your secret? ♪ [ male announcer ] the new united mileageplus explorer card. get it and you're in.

welcome back to "fast money." let's check on groupon in the after-hours session. down more than 13% at this point. the conference call is going on right now. the revenues beat expectations but the eps was a big miss. >> you can see the stock climbed a bit when it started. they're not convinced about what the management are saying. the big issue here is marketing. the company spent $76 million in marketing. cfo saying it is a percentage of marketing revenue will not increase. that being said, they did pull back on marketing in the last quarter. also questions about a peculiar tax rate. quoting a tax rate of 1,600% in certain locations. and they're saying that was because of costs associated with establishing headquarters internationally in switzerland

but they expect that to come down over time. and what to do with the proceeds from the ipo earlier in 2011. of course ended the year with $1.1 billion in cash. they're not spending it on acquisitions. they're not going to go that way. at least for the first quarter. they're spending in hiring engineers. >> what did you say the tax rate one? >> 1,600%. >> 1,600%? >> the corporate tax rate in the u.s. is 35%. so there's a big gap there. a lot of people were wondering what that's from. >> yeah, i can see why the stock is trading sharply lower. that and saying spend as a percentage of revenue is not going higher. >> right. and remember marketing was a huge issue during the ipo when -- only when they slashed the marvegting costs did they enter the black for their number

it is pre-ipo. investors wanted them to cut back on the spending so they could record profits. >> let me ask you something. six months after the offer was done. >> it's usually always six months after the offering happens. and with linkedin and a lot of these trades, we have seen them sell off sharply. it'll be interesting to watch in may. whether that coincides with the facebook deal? . >> all right. thanks a lot for that update. it's funny because in the greenroom we said we didn't get it. we didn't get groupon. >> i shouldn't say this but run. don't walk from that stock. when you see 1600% tax -- nearly

$700 million in marketing, how could you own that? >> they're going into lower margin business. there's no way what they sold -- >> and they're not going to do acquisitions. who cares? >> they shouldn't be doing that. all right. let's leave it there. moving on to whirlpool. it has been on a roll this year. the stock has been one of the best performers in the s&p 500 up nearly 50% so far. has the appliance maker become too hot to handle? we've got both sides of the debate. shorting whil pool right now. and pete najarian says the rally isn't over. you were bull at some point. then after the earnings and the run, you decided to then turn around and short the stock. why? >> yes. we bought whirlpool and got longed at the end of the year because thought there was a lot of value there. the selloff was overdone.

the stock popped up to 60. up almost 30% in the last week or so. so if the earnings were that good to support the stock up there, great. we could have stayed long. however, they said they were going from $2.05 up to $7 this year. i don't know how they're going to do it. i think that bar is set way too high. the margin numbers they gave were up 300% from 3% to 6%. in '05 during the housing boom, the margins were 6%. if they can do it, great. we love the housing recovery. we think it's going to gain a lot of steam. i think whirlpool's management came out too high. >> if you look at the analysts out on the street, they're at $5.80. let's say they only earn $6. if the u.s. housing is turning around and last year we had a lull in u.s. housing as far as the sales of single family units. when you look at that and the fact this is not just a u.s. story, yes, i think that the u.s. is going to be huge.

it's a big portion of what they're doing as far as the sales. but they're the number one maker of housing appliances. india, they're the number two appliance maker. their margins are getting better. and their inventory, they're doing things a company should do. instead of having this, they've done a great job of management skills. >> i could take both sides here. i totally agree with you pete. the housing sector in brazil has been one of the sexiest all over. and they've gotten beaten up into it too. the consumer is growing. 25% of whirlpools revs are coming from latin-america. at 8.5 times earnings, it's not expensive. the chart scares the heck out of me. your suggestion they can't triple is i think a fair question. after the move you've had

there's no reason to ride this roller coaster. >> but why short it? i understand -- >> why not just take profits? >> you've ridden from 46 to 50. great. but i don't understand the selling of it because the story lines up to me as a company -- and if you look at the short-term, yes it looks exi explosive and ridiculous. long-term it's -- >> so -- whil pool looking at what they've done now to say they're getting back to the 2005 levels, i'm with pete on the housing levels. but 2005 levels, i don't think it can support it. looking at the run its had from these levels. and latin-america had a special credit we think could have drawn some extra inventory into the chain. so i think you can see this really up here at this levels it's priced to perfection. at the short side, this run it's had up here, if it has a hiccup

so up ten year average is 10.8 times earnings. it's up there at a historical average on earnings. the slightest hiccup, i think you have a whirlpool special. >> great debate here. >> no spin zone. >> yeah. can't say that. next on "fast," the strategy if you're long one of today's big losers. more "fast money" coming up. [ leanne ] appliance park has been here since the early 50s.

my dad and grandfather spent their whole careers here. [ charlie ] we're the heartbeat of this place, the people on the line. we take pride in what we do. when that refrigerator ships out the door, it's us that work out here. [ michael ] we're on the forefront of revitalizing manufacturing. we're proving that it can be done here, and it can be done well. [ ilona ] i come to ge after the plant i was working at closed after 33 years. ge's giving me the chance to start back over. [ cindy ] there's construction workers everywhere. so what does that mean? it means work. it means work for more people. [ brian ] there's a bright future here, and there's a chance to get on the ground floor of something big, something that will bring us back. not only this company, but this country. ♪ hyundai genesis. in a new, faster-acting formula.

zero-to-sixty in less time than a porsche panamera s. the 429 horsepower genesis r-spec. from hyundai.

let's hit some "options action." fell sharply after earnings. what should you do if you're long the stock? mike, what do you do? >> a lot of people ask this question. what do i do? i own this stock. it just got hit. how do i make my money back? we don't have a magic bullet. but put on a ratio call spread. what you would do is buy one april 45 call, pay $4.60, then sell two of the 50s against it for $2.30 a piece. what this does with the stock around $45, it's going to double your profit. because you're short two of the upside calls, you'll call out of

your long stock. it's a way to lever your gain without going out and taking more risk by buying more shares. >> thanks for that. catch more "options action" every friday at 5:00. and follow on twitter. next on "fast," is congress ready to level the playing field when it comes to insider trading? we're heading to the stock act. stay tuned. [ male announcer ] the draw of the past is a powerful thing.

but we couldn't simply repeat history. we had to create it. introducing the 2013 lexus gs, with leading-edge safety technology, like available blind spot monitor... [ tires screech ] ...night view... and heads-up display. [ engine revving ] the all-new 2013 lexus gs. there's no going back. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare.

welcome back to "fast money." we are live at the nasdaq market site. a bill heads to the house tomorrow. it recently passed the senate with just three members voting no. senators coburn, beau, and bingaman. when first asked whether her husband's ipo was a conflict of interest since credit card legislation was making its way through congress. >> i don't know what your point is of your question. is there some point you want to make with that? >> i think she's gotten the point by now. also working on a pelosi provision. what's the latest on this?

>> this is really a tale of two bills. the senate has already moved its bill. now the house is expected to vote tomorrow on a bill tomorrow called the stock act. look at what the senate passed. i'm going to walk you through differences here. the devil is in the details. in the senate's version it prohibits members of congress to use inside information for personal gain. there's a fannie and freddie block for executives from receiving bonuses. in the house version, they have most of that and a little bit more. they also include a provision that would prevent members of congress who've been convicted of things from collecting taxpayer pensions. they would also include a provision that would include members of congress and administration and their staff are blocked from ipo access. that's the so-called pelosi provision that she says she's now going to support. and it requests a study of the political intelligence industry. this is an interesting one. what it does is removes a

measure that was in the senate bill that requires those so-called political intelligence firms that gathered tidbits up on capitol hill and hedge funds to register the way lobbyists do. on the house side they just request a study on this. that's washington code. that's what you do when you don't want to move something. you just do a study. that's a win for the political intelligence firms. they do not want to register. there's a first amendment debate about whether they should be required to do that or not. >> thanks very much. got to take a break. we've got your first move tomorrow when we come back. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag.

thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] now there's a mileage card that offers special perks on united, like a free checked bag, united club passes, and priority boarding. thanks. ♪ okay. what's your secret? ♪ [ male announcer ] the new united mileageplus explorer card. get it and you're in. ttd#: 1-800-345-2550 let's talk about how some companies like to get between ttd#: 1-800-345-2550 you and your money. ttd#: 1-800-345-2550 at charles schwab, we believe your money should be available ttd#: 1-800-345-2550 to you whenever and wherever you want. ttd#: 1-800-345-2550 which is why we rebate every atm fee worldwide. ttd#: 1-800-345-2550 and why our mobile app lets you transfer funds, ttd#: 1-800-345-2550 execute trades, even deposit checks just by ttd#: 1-800-345-2550 taking a picture, right from your phone. ttd#: 1-800-345-2550 so talk to chuck and put those barriers behind you. ttd#: 1-800-345-2550

for you today ? we gave people right off the street a script and had them read it.

no, sorry, i can't help you with that. i'm not authorized to access that transaction. that's not in our policy. i will transfer you now. my supervisor is currently not available. would you like to hold ? that department is currently closed. have i helped you with everything you needed ? if your bank doesn't give you knowledgeable customer service 24/7, you need an ally. ally bank. no nonsense. just people sense. tienl trade -- final trade time. >> if you won't sell groupon sell stock. >> not a good valuation. >> once again run away from groupon and all the rest of the social networking or computer coupon companies. get out. >> i still like children's place. plce. >> financials are not done. no longer is bank of america. jpmorgan has the most upside. >> thanks for