>> that does it for us here on the closing bell. thanks so much for watching. >> live from the nasdaq market site in new york city's time square, where the storms are absolutely raging. the streets are rivers here in times square. i'm melissa lee. here are the stories. earnings central. reports are coming fast and furious. monitoring all the after haurs action. betting on america. and delivering alpha, our star studded investor event. and in this show, the persian

square. we will bring you all the latest from the market moving conference straight ahead. if you take a look at the after hours session. getting clobbered after a sharp decline. this is what we heard from a lot of the others. >> rsh a big miss on the revenue side. one quarter could make such a huge change for these guys because their numbers are so relatively small given the competition. big shorting in this age. while we're mentioning financials. if you didn't mention u.s. bank corps which not there are things that are doing extraordinarily

well. i think the most safety is usb. >> bill had mentioned that he had sold his position in order to fund his position. >> i don't know that he ever had a big pound the table position. everyone seems to have one in proctor and gamble. >> i think it was fantastic. i was surprised how much it traded down. there was disappointed in the lack of loan growth. we are seeing it in every bank. i don't know. i'm long and have been long for a while. >> those are the two highlights.

>> yes. there is something there for the bears. that's true. reserve releases. what kind of atigsal reserves. >> no end in sight litigation. that remains. however, it is trading at 60 whatever%. >> how hated they are and how much room they could have. if you listen to any of these calls, where is this sudden buying interest coming in. the largest stock is in wells fargo. i think it is about 21%. in addition to the bank stakes. if you need financials, it might be a good back door way to play.

>> all i hear is valuation. >> seemed to be a moving target. this was a stock the stocks are down almost 4% from the highs that day. today when i'm looking at technology stock and sending them up 3, 4, 5, 6, 7%, it doesn't look bullish. >> you know, it's pretty interesting. most of the news that we have been seeing in the options market, in almost every one of these names has been skeptical. we have seen a lot of bearish flows. the only thing is because they have so much leverage, people are inclined to make bullish bets. i don't read that as a bullish

play but a stock replacement type of an effort. >> we will go live to where bill is speaking right now. >> we have not done anything. we had a very success in canadian specific this past may. got like what? 95% of the vote? if what we proposed was wrong,

we would have gotten 14% of the vote. a case of us taking the company. we think there are opportunities for improvement. in the vast majority of cases we are able to convince management, shareholders and the board of the right course of action. but when we bring an issue to shareholders, we only do it if we feel we have enormous shareholder support and we're right on what the issue is. >> you believe you can influence a company that large with a stake of less than 1%? >> how large is your stake? >> we have not pubically disclosed it. we old a billion 800 million of stock. we have a few options. >> that's a very large stake. what do you manage right now?

>> 10.5. >> you're willing to take an 18% stake? >> sure. it's very hard. >> you look forward to meeting them. >> you are here to talk real estate. >> the whole announcement today should have been here. >> any time you want to go back and take care of that, we are happy to do that. >> let's talk real estate. john, let me start with you. in terms of news there has been some involving black stone as well. you are a $48 billion fund so to speak or equity in real estate.

there are stories that say you are a seller of a lot of your commercial office building property. >> i would say peculation is a little bit premature. given the nature of our business, we sell things. my expectation in the fullness of time we will sell. i wouldn't expect to see anything too quickly. >> would you ever buy something from them? if he was selling something at this time? >> are you asking me? >> i am. >> you would? >> i would. >> that does not mean you are -- >> i would certainly kick the tires. the interesting thing about the market is there are interesting pools of capital. different hurdle rates.

the big question in real estate today is who is right. are rates going to to stay at 1.5%? or are they going to gap up with inflation in two years and be 4% treasuries? as investors that is a tricky thing to navigate. if you have a pool of capital that thinks that it is benchmarked against a five year they can earn a five in a building? >> that's barry on a panel being moderated by our own. >> plus options. so it's about 18% of total assets under management. he says that he looks forward to meeting the ceo, bob. this will not be a case where he

can walk in and shot call. i would keep in mind that he is a very long term investor and this could be something that plays out over the course of years. this is not we will sell four and do a bigger buy back. >> he was pretty confidence in the influence he could have. >> with that percentage of the assets, he has to believe the stocks are going move. >> i guess the point is, this is a pretty big play. i would assume that he is making. for him to be as a safety play doesn't make a lot of sense. >> you don't invest 10% of your assets. >> he has to think this is going north. >> in situations like target a few years back. he has a very, very large stake and call options leverage of return.

i have to assume that he has really got juice to the upside. >> i was trying to look through the board and find option connections to me. the thing that i look at and i think most think about is looking down before you look up. how much risk does he really have here? if you look at a business like this, it was not a disaster. the business did not collapse. the risk is certainly smaller than a city bank. >> i think his thesis must involve something to the effect where we can help them expand margins and grow the earnings. >> yeah.

all right. let's take a break for now. we are continuing to break down some of the best calls from the conference today to find out the unlikely place that henry is finding value and whether you should be following his lead.

>> welcome back to fast money. it is still rainy here. this after bill disclosed that the delivering alpha conference in new york city, he has a $1.8 billion stake in the company. plus options. we are seeing that stock move higher in the aftershowers session.

let's go to john with the latest from the call. >> one of the things that the cfo is pointing out is the negative dollars. he also said that sales relatively strengthened as ibm went through the quarter. hardware included. sales were actually better which suggests some degree of momentum heading into the current quarter. ibm generally taking a more optimistic tackle on a number of fronts. europe in particular having a

currency impact when you don't go classic currency but look at the overall results it was down. >> we shoeld know that ibm increased its 2012 forecast for the year. >> so i think what's happening is here is people are optimistic and given the precipitous sell out. here is a company with a lot of clarity. valuations seem reasonable. >> this is just another example of the currency starting to take effect.

>> i would think that one could project, give or take. that should be in there already. >> about $200? there is the euro. so now you see this thing down at 122. to me, that is significant. here is a company that has got a lot of leverage to pull. if they want to get the 1510, 1525, what is going on here. they said spain increased what they signed one deal in spain? to me it seems like at the end of the day the stock is down from the highs.

>> you have seen the same thing with kwal come. here is the company with a disappointing guidance. these are going to be stocks. these are the stocks that are going to do better than their competitors in the best position. the sell off doesn't last. >> not all stocks are created equal. hewlitt pack ard was named today. >> how low can hp go do you think? what kind of a move are you

expecting? >> wait and see. if they are burning, you might have cashed, i think they will. >> they are in decling businesses. >> and specifically he said you go to con fronss. >> he is out there. next year's earnings. the guy knows what the heck he is doing. i think it is important that people don't get sucked into the value traps.

>> very interesting quote. over the last year or two, very quickly in terms of such a big stock. >> it is very interesting. >> we don't know when he got into this trade. he said that he was attracted for the very same reasons to possibly short selling tell but that dell had already declined when he was looking at this trade. >> but i don't know if it matters. the question is from right here. >> i sold -- i lost enough money in the name. i don't care about the valuation. i lost enough money.

>> five, six, whatever it is. could be something. >> he was saying that hp has had to make a number of acquisitions. >> there is still a lot left. there is a lot to duoh go. it's a lowball name. if you are inclined to make it bearish, it is definitely piling in. plus we will unveil our trade of the day. someone on this desk is revving up his engine. winning trade. more fast straight ahead. if you are one of the millions of men

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or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are, or may become pregnant or are breast feeding should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. talk to your doctor today about androgel 1.62% so you can use less gel. log on now to androgeloffer.com and you could pay as little as ten dollars a month for androgel 1.62%. what are you waiting for? this is big news. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look

at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. >> we just bought a company in germany announced it last week. nice business. we like to buy where there is turmoil. buy or invest in companies when they can't get capital. you set the firm up in such a way today that we can invest up

and down the company structure. so we have made our best returns in times of turmoil. >> that was legendary private equity investor. earlier today at the delivering alpha conference. >> they asked me where to invest. my response is that the united states remains as attractive as ever. and it would be more attractive if it can make some short term progress josh brown, where do you vote? >> i thought the oped was really good. one of the things that he said was surprising and i agree with him. it's very possible that eboth

dand dates embrace it as the model from reform. i don't know if he will be right but i thought it was interesting to hear that level of optimism from someone who is clearly talking to someone in government and in the industry. >> i can't help but wonder if he was saying something nice about the u.s. so the u.s. would say something nice about him. >> i think that is part -- i think that is part of it. if they can improve in a few key areas. >> like regulatory environment. let's say capital requirements on banks. >> i still think europe was a mess. the shanghai market that dan and i were talking about is a three year low. i think that is trying to tell you something. i think it's trying to tell you something. i think people believe that the feds are going to be there so you can't get in the way. it's painful to be of the bear

mentality. right now the markets want you to go higher. >> you are also bearish but are you less bearish? >> here's the thing. if you are going look for value at some point you will probably find knit emerging markets again. that is what took us out of the malaise that we were in. i am a believer in that. as far as having your house in order, are u.s. companies in good shape? is the u.s. consumer good? no. to me, it's a tough one that will shake out over years. >> let's go to after hours action. shares of ebay are surging again. karen, you're in this. >> we did buy some today. only a little bit to have your toe in the water. i would rather have the stock

move down than up. the year might be 42.5. >> two things stuck out to me. operating margins were about a% better. up 31% year-over-year. you want to talk about it on a valuation basis. check in with our own kate kelly. she just wrapped up a panel. she joins us now.

>> they feel very strongly that greens is one of the most exciting places to be right now. a shortage of supply that is inevitable. over the last six quarters or so. it has gone from a little bit shy of 10% to more like 7.6% now. thigh are very skeptical. they just don't think even if the methods were perfect, they say it's a very hard number to

come up with anyway and there are politics involved. be as much as say 600 basis points. that would be a margin of ror. things that you can try to do your own math and make your own model. and finally taylor talked a little bit about cross-suit crude oil. especially if you think about the fundamental picture and lack of margin. >> there are thunderstorms moving throughout the area. we lost the connection. but it's interesting to hear how the traders are skeptical about growth numbers when you have guys like bhprio. they're still saying we're

willing to take that risk and increasing output. >> in the years to come. >> this is by 2013. say what i want. >> with this corn situation, i would love for us to see ethynol changes. >> right. >> it's ridiculous. >> like no mandate? >> right. >> just on a commodity story in general, there was interesting things coming out. talking about yes, we all acknowledge commodity demand picture is not going to be good but it doesn't matter. you have to start middle of now because of what the super cycle is going be. i think people are starting to

buy back into that. we have ignored the cib and no one wants anything to do with it. now it may be making a little bit of a come back. >> coming up next, get the latest on earnings. participating in the conference call. your money is and what it's doing live. our e-trade pro platform offers powerful functionality that's still so usable you'll actually use it. and our mobile apps are the ultimate in wherever whenever investing. no matter what kind of investor you are, you'll find the technology to help you become a better one at e-trade.

>> welcome back. it's still raining here. still still raining. let's hit options action. so let's see how the options traders are positioning themselves. >> one notable trade we saw was the 13590 calls. a thousand of those trade on a single block. that is a very big trade to a nearly 600 $stock.

>> a 1.3% stock move. >> you know what's really the the interesting? the stock is down 10%. one of the worst performing large cap stocks out there. the move on this thing is high. it is expected to move a lot. over the last four quarters. to me, i think defining the risk with options makes a lot of sense. >> where can i get more? >> we -- let's get a check on ibm. joining us on the fast line fresh off the conference call. analyst. brian, great to have you with us. what was the tone of mansionment on the call. >> i would say the tone was pretty upbeat for a company that

has declining revenues year-over-year. so, stocks are moving a little higher here. >> we also said that there was a good quarter in brick are you getting indication that that is a momentum that is continuing? >> it seems like it. the growth markets are doing pretty well. they are major markets obviously down year-over-year. that is where they are seeing a lot of growth. that appears to be plugging along here. >> when you look at the rest of the set out there. >> i think we have already seen positive results. two tech leaders reiterated or

raised their outlook through the back half of the year. we did really well. in particular, i think their service margins were pretty good. so, as the dominant lead er i think ibm is doing a good job. >> i want to ask you about hp as well. it was named as a great short idea today. >> unforchute natalie we have been on the wrong side of the trade. every time we stick our toe in the water on the tech value name, we lose that toe. so we don't have in toes left.

but i do think the valuation is pretty attractive. really pegged to the wall. i don't see that coming down. i think the company with ralph whit worth are going to be able to figure out a way to improve the balance sheet. >> you mentioned that you kept dipping toes in and you don't have many left. >> probably my worst call of the year. i think there is two different ways to look at it. the multiple is very anemic. i think that's the real multiple. cash multiples are higher. the balance sheet is really eroded. that is an area that we need to

fix and that is going to take longer than a quarter to fix. this is going to be a longer term recovery. >> brian is not the only one. >> it is nice that -- >> you don't want to lose toes. you need your toes. >> like for iron man. >> for example. >> yeah. >> one little toe next year? >> you probably probably get away without one toe. >> sixth toe on your foot. >> slower asia growth in yum brands. fell 4%. shares are down. joining us on the fast line.

>> you know what was interesting in this quarter for yum brands was the role of the doritos taco which led to an increase. >> i really think that's a result of their efforts. >> in terms of some of the other brands that they have. >> there is still a turn around in clay there.

definitely not over performing. >> yum, it's a china story for a lot of people. should i be disappointed or concerned that margins there declined? i think the street was looking for 17.6%. >> you know, i would want to look more closely at that. we would want to look more closely about labor wage inflation and how that tied into the income statement. they never lasted their intention to grow into that market. i wouldn't want to read too much into results quite yet. >> how much does the corn situation matter to them? >> corn situation for yum specifically? at the end of the day, corn prices and the fact that the u.s. yields are so low it will pressure the price of corn going forward whether it be

restaurants, grocery stores. i don't think that they are first in line as far as being negatively impacted. >> you know, it's interesting to me looking at the release. they talked about commodity inflation. it was up and wage inflation up 13%. these are things you can extrapolate. we have heard of the stuff. >> coming up, ten things he likes and one thing he does not like. find out if the traders agree. we will take a check on what bill are saying about investing in real estate. [ male announcer ] the markets keep moving.

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on jc penney. >> very interesting comments. share with you he basically said he believed in ron john the most important thing and this is david has to follow up on this. thinks he can get t 15 times. >> he did not clarify that. the ability to profit on that. down 44%. not just to move the market. an aftershowers market mover.

>> that seems crazy to me. it's zsh you know, the thing? >> which part in the ron johnson part? >> global growth, that was a fantastic call. absolutely. >> that was a very, very leveraged situation. i don't see anywhere near the leverage here. >> try to think of a retailer that has been able to turn around from top to bottom over the course of one year. these things take a lot of time. >> behind the curtain? >> i took a look at this thing today. i actually did some nibbling. i want to give you the technical take.

a i will tell you what will go right. if you look like a monthly chart. anyone could see a massive potential head and shoulders top. and i think it's so obvious that it might be a trap. i think if you can hold this level you can get a fast reversal here. so i think whether you are going to take the long side of this is going be dependent on whether or not you agree with that or you don't. and the way the price action here cut in half tells me that there could be a huge reversal. >> we get a trade update. the trade of the day from a

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>> like walking in front. pick up the guard. >> not very advisable policy.

>> that is leone. today's delivering alpha conferen conference. >> take a look at some of his stock picks. >> ten stocks. financial statistics. >> that was aia group limited. express scripts holdings. met life. kwal come and western union. >> capital one express groups. josh, i'm curious. >> i like the watson idea. it's not a love stock on the street. it has been a freight train. i think anything health care will continue to work here. it's clearly where growth investors will go. >> that is down 12%.

oil stocks have been clobbered lately. >> we danced around it. down in a 20. i would rather still be there given the move. is. >> the same bet as treasuries. >> yeah, it's expecting it for tomorrow night. the price range could be raise ed the issue is i was told that the company was previously going to raise around $150 million. $82 million.

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what are you waiting for? this is big news. >> check this out. technology. the company. $2.5 billion marketplace. >> i want to risk 52.5 calls. >> i think investors are all too complacent. >> stop branding. >> it was bad. >> really bad. really bad. >> if there was a trade i won't make it. black stone after they report. >> karen? >> we -- interest thing trade to hedge google earnings tomorrow. one would think thate