and finally today, my observation on the continuing legislative push to cap salaries in business. we had a spirits debate earlier on the program about a vote in switzerland overwhelmingly tilted towards doing just that. and the larger european union is moving a step closer to limiting executive pay. they've reached a plan to make

it unlawful have any banker bonus exceed its salary or double that salary as a bonus. meanwhile, that swiss proposal was dubbed the rip-off initiative. it allows shareholders to block salaries and ban so-called golden parachutes. the measure includes huge fines and prison sentences for violations. we've spoken a lot on this program about the new normal for the banks. these moves alone represent the most intrusive intervention yet on how governments are trying to run and control the financial services industry. the problem is, regulators on all sides of this industry are missing one major fact. and that is, financial service fs is a global business. share holders do not look at the big banks as american or european, no. they are global. if some firms like ubs and credit swisse are forced to cap salaries, their best people, their most successful executives and traders will simply leave and make more money elsewhere. those firms will become less competitive.

unless we are talking about a global standard, it have sr. tough to understand how bureaucrats are actually going to dictate come me session levels. the banking sector may be forced to cut salary just due to the public outcry. but achieving the step of actually legislating salaries will be tough. there are always unintenned consequences. we'll be watching. thank you for being with me. see you tomorrow. "fast money" begins right now. live from the nasdaq mark site in new york city's times square, i'm melissa lee. here's what "fast" is following tonight. racial krub rans. why it's still not too late for you to get into stocks. red flags. how worries should you be about a crackdown on housing investment in china? we separate fact from fiction. and buffett's bear. the oracle of omaha is looking for a fight and he hand-picked his sparring partner this morning. we got an exclusive preview from the berkshire bear himself tonight. but first, let's get to breaking

news here. cnbc has confirmed that deutsche bank is offered 10 million shares of jcpenney. 10 million shares. this is according to sources. we are seeing jcpenneys shares react in the afterhours session. it is down by 6% or so. here's some of the possible holders. eight holders or more than 10 million shares and karen, when this news crossed, what did you think? >> i thought it was very likely vornado. we've had people stepping down and they made some comments like things were very tough at jcpenney. it really isn't the core part of their business, they are holding jcpenney stock. that would be my first guess. i think it is a highly likelihood it is they. but they seem to have more stock than that. i don't know if they would leave additional stock to go. but it's not, you know, ringing endorsement of the strategy at jcp. >> what do you think, guy? sinking ship at this point? >> leerily. and karen's been on this. we tried to talk you away from this. what is interesting, jcp goes lower, we said it before, hlf is

drifting higher. that trend will continue. maybe -- maybe, if you wasn't to trade it, see where it's priced. see how it trades off the secondary and maybe that will give you a floor. but again, no reason to be in. >> one more thing in jcp. a catalyst that is coming up, this very high profile martha stewart trial. we'll see something in the next two weeks. very bad news for jcp if macy's wins. that is the more likely outcome. >> could we set up for a win-win situation for jcpenney? just playing the other side. jcpenney selling pressure in the afterhours session, hasn't been seeing that since ron johnson took over. buff at this point now, he either does something about the company strategy or he's out, which could be a catalyst for the stock, pete. >> it could be a catalyst, but we'd like to hear what the catalyst might be. this has been a broken story for a long time. they tried just about everything to get this thing moving. as you lose customers, what people forget is, how difficult it is to get them back. how hard it is to retrieve the

customers who have left, gone to the competition. the competition wants to hold onto them. that's going to be a battle to hold onto the new customers. >> i don't think jcp has any green light here. especially the last guidance we got out of them. they are not doing it. the turn around is taking a lot longer. the honeymoon is over for the stock, let alone some of the -- the balance sheet issues that at some point will rear their ugly head. >> take note of the offering price here, $16.40 to $16.60. >> that seems a little -- >> rich? >> crazy, yeah. >> trading at $15.77. >> yeah, so, good luck to that. i mean -- i don't know. >> you know, interesting this happenings on a day -- >> won't get sold. >> where the xrt hit a new high. we had monster runs in today's session on the likes of target and walmart. do we see some funds come out of jcpenney, if the thinking is, we sell jcpenney, want retail exposure, could we see give a boost at this point to other names? >> we've talked, i mean, pety's

been all over the dollar stores, i'll let him talk about that, but gap we talked about last week, they seem to be firing on all cylinders, that stock had a nice pull-back for you. might be some truth to that. >> maybe that's what's been in macy's. >> pete? >> i certainly think the macy's world is part of it. we have not necessarily seen direct movement in the options in the retail space like we have in many of the other spaces. but certainly you are seeing it reflected in these stocks. macy's being one of them. do like the discounters, to guy's point. not necessarily all the way down to the dollar stores. i put that in the category of competition with walmart. but i do think when you're looking at the competition, you could through in a tjx, ross stores and some of those, as well. >> with target, you know, this has been a pretty interesting run for the stock. they are showing growth. the canadian story is where people are getting excited. that had been a component of their earnings model. that's something that's starting to turn. >> all right, let's get to the traders and their top trades

today. stocks posting a late come back and the dow closing at the second highest level ever. so, we kick it off with the top trades for today's session. pete? what was your top trade? >> if you look into the financials, you go to to the sub-sector, some of theishness names, you see what we've seen over the last couple of weeks, a lot of options paper and movement to the upside. when you look at a short, radion flying to the upside. but genworth's hit on our systems multiple times, including today. extreme activity to the upside. folks reaching up for over 26,000 of the april 10 calls. that's a name i jumped into, as well. i don't think this is over. i think there's plenty of room to the upside. >> radion, two-year high. what a monster run. tim? >> markets feel nice and fluffy here. i think there's a sneaky pattern. i think the dollar strength, what's going on with commodities is something people should be very concerned about. we've been hedging up. a lot of our commodity exposure is in the form of the mexican

peso, yes, the south african ran, the russian ruble. we are concerned by the move in the dollar. i don't think this is necessarily good for markets. i think this is a sign where the dollar can risk off and on. >> how time limb is your trade today? >> we bought some macy's, april 40 puts. those are a nice way to hedge, if they lose in this jcpenney suit and we want to continue to repain short jcp. >> even now, with the pull-back of 5.6%? >> yes. i think there's nothing good, the only thing that i do worry about and think about is, it is getting more expensive to borrow and i hate being in that crowd of borrow counter trade. >> guy? >> hi, there. i don't know if it's because of google or maybe they stand alone, we've been talking about yahoo! for awhile. we're going to talk about it later. i still think it goes higher. >> all right. stocks continue their slow crawl higher. too late for you to get in on this rally? our next guest says no. let's bring in ed yardeni, known for husband bull calls, like the one following the crash of '87

as well as coining popular wall street terms. great to see you, ed. you are very bullish. your s&p target is 1665 at this point. you think this wednesday is an important date. do you still think that's an important date? >> well, look. four-year anniversary, we should have some sort of ball to celebrate. really been quite an accomplishment. i described this bull market as the rodney dangerfield of bull markets. it's gotten absolutely no respect. and yet, here we are about to take out, i believe, the all-time hikeghs. i think we're in a secular bull market. when we get to new highs in the dow and s&p, people will ask if we are still in it. >> rally skeptics will say, this has been a move higher on volume that's been lackluster. it has been a rally built on nonparticipation of the cyclicals. we don't have energy and materials and technology, all the sectors you want to see lead the market higher.

does that matter at the end of the day that we see staples and transports lead us higher? >> i don't think so. i mean, the reality is, this bull market's been led by cfi, which is consumer financial and industrials. there's cyclicals in there. they are all basically cyclical. so, i think that's pretty good foundation for the bull market. i think those sectors will continue to do well. it's been a very broad bull market. and i think what the bears have missed in terms of the volume is they've ignored corporate cash flow. corporations have been the buyers. the dividends have been huge. and a lot of those goes right back into the market. >> ed, we don't talk about europe as much as we did maybe six or seven months ago. but clearly still in the background. does that give you any concern? >> we had a little break there where i was waking up in the morning to see what the spanish bond yield was. now, i thought, oh, god, that's over, take a rest, thanks to whatever it takes. but here we are, looking at the italian bond yield. you know, europe is a mess.

i mean, they just can't seem to -- you know, it's -- they're doing it all over again. didn't they just do this? well, they are doing it again. >> isn't that the problem, maybe, with your call here? because europe is showing their ugly head. >> sure. >> i get it. china last night on the property index, what's going on with their pmis. people felt better with that. >> sure. these problems may be finally the problems that bring this bull market to an end and i could be wrong. i admit that, obviously, but i'm watching these things the way we all are and the reality is, for the past three years, three years of living dangerously, been the same old concerns, that china is going to have a hard landing, the u.s. is going to have a double dip. and that europe's going to be financial meltdown. so, maybe these all come together and finally break the back of this bull, but i don't think so. >> so, ed, a lot of investors out there are happy to hear to say it's not too late to icipupside. should investors believe there's going to be a catchup among the sectors that haven't

participated as vibrantly in this move higher? >> well, it's been, this risk-on, risk-off paradigm has missed the fact it's been a very broad bull market. as i said, consumer discretionary, financials and industrials led the way. biotech has been on fire. in materials, you've had industrial gases, specialty chemicals, some what related to the fracking boom. most of the action hasn't been at the sector level. it's been -- i think we are getting back to stock picking and doing homework there, i think, is going to work out this time. >> so, having an actively managed fund in this sort of environment might be -- >> doing it yourself or having it managed may outperform the indexes. >> okay. ed, thank you for joining us. >> pleasure. >> ed yardeni. pete? >> well, the one thing i would pose to ed is this. you talked about the volumes and something that bob brings up consi consiste consistently. i have seen, everybody seems to be rotating into other areas of the marketplace. one of which is, in the options world where i spend my time, we're seeing time frames that

are being shortened and we are seeing more and more of the investor world, whether it's warren buffett, carl icahn, talking about volumes in the option world when you look at their positions. they are positioning using options to use some of that leverage to get themselves into positions they used to do with surely just stock. >> yeah, i think that's certainly can explain how we've had this bull market with low volume. so can the corporate cash flow. etfs have been, obviously, tracking an e more mouse amount of money. equity mutual funds have lagged behind. that reflects the mentality of the retail investor. the great bull market, the equity mutual funds have lost $280 billion in net outflows and the bond funds have attracted $1.2 trillion. so, that's where all the money has gone, and if the individual levers, starts to conclude that maybe rolling over your money at 2% again isn't the best thing to do, i'm not a big believer in the great rotation, but i'll take it if it comes. >> ed, thank you for your time. coming up next, he's one of

the premier voices on china. stephen roach items us whether investors should limit their exposure to china, following the selloff we saw overnight. but first, why does major copper producer strike a street feet between pete and tim. one stock, two opinions, straight ahead. ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪

welcome back. china's move to cool down housing could impact the world's largest copper producers. the country accounts for 40% of global demand. the situation pitting pete and tim over each other over one miner. pete is the bull, tim the bear. 90 seconds to make the case. pete, kick it off. >> when i look at freeport right now, the acquisition gets in your way of trying to determine exactly what they are right now. i like that, though. er think they've gotten themselves into a diversified area right now. 25% of their revenues will be in 2014, coming from the oil and gas space on top of obviously the metals exposure they already have. i think it's been overblown with china. when you look at the price of copper right now, still trading at $3.50. i think margins are going to see are going to be exactly what we saw last quarter. i don't think that's going to be

impacted at all. i think thhave seen this stock down on three, four separate occasions. this has been the level it's held. i like a lot of the big folks that are jumping in there, bridgewater, as well as t. boone pickens. >> tim, go ahead. >> different company than those other times it when down here. i said six weeks ago end this company concerns me now. their sweet spot was copper and gold and free cash flow generation. they are moving into a business in oil and gas. the capital discipline is gone. they have $16 billion in net debt. they're not going to be paying special divs. yes, you mentioned copper. yes, copper at $3.44, if it breaks that difficult time for these guys. the sensitivity is $75 million for each 50 cent move in lower in copper. this is a very, very challenging place to get involved in this company when they look very distracted. they are gone away from emerging markets to supposedly diversify in oil and gas which is a much more dangerous place to exist.

>> i would say this, when there's blood in the streets, that's when you want to buy. right now, mr.there's blood in streets. >> is there an underlying bid for freeport in two new physically copper etfs going to hit the market. >> that would be hurting them. this was a copper conduit -- is that what you're asking? >> i was thinking more demand for copper. >> freeport lost a marginal dollar from people that wanted a copper play. it is not a copper play. it's an oil and gas play. it means its valuation at seven times is not cheap, either. >> karen? >> i have to weigh in with tim. i like pure stories. and i don't know if this is a response that pete has left me now is no longer sitting right here, that could be part of it. i like the pure play better. otherwise, you get the lowers common multiple of all your businesses. >> i've been in petey's camp. timmy's been right in terms of the price action, but i'm sort of in people's camp.

i remember when they did the phelps-dodge deal, similar price action, they turned out to be right. the same thing sets up. though, timmy is spot on. >> that was a copper move. they are not copper. >> that is true. all right, well, we want to hear from you, as to who you thought within our street fight. tweet us at @cnbcfastmoney. we'll have the results at the end of the show. going to be a nail biter. >> can't wait. >> china stocks plunging the most in a year and a half, this as the government tries to reign in housing investment and avoid a massive real estate bubble. how worried should you be about tightening in china? take a deeper dive with stephen roach, former morgan stanley asia executive chairman. he's now a fellow at yale university. stephen, great to have you with us. >> great to see you. >> to a casual china observer, you watch the "60 minutes" piece last night, get scared about the ghost steps and then you come in today, hear about what china is doing in terms of reining in the

speculative activity and you think, wow, that's got a problem. but you think there are problems with that report. >> i do. look. "60 minutes" has been my favorite new show as long as i can remember, but i was hugely disappointed in the quality of the reporting, what i saw last night. put some numbers around this. about 50% of chinese gdp is investment. of that, 20% is residential and nonresidential, office buildings, combined, and of that 20, maybe half of it is residential, which means that's 5% of the gdp. does that sound like an economy that's going to be strangled by a bursting of the housing bubble? and of that 5%, probably, you know, maybe 2% to 3% at most is at risk. this is not going to bring china down. and unlike the u.s., which allows bubbles to get out of hand, the chinese are very aggressive in trying to move

presemiively to contain excesses and the measures introduced over night are very much indicative of that. >> if you say there's absolutely no bubble, because real else state investment is so small, so, why would -- it seems it would be extreme little preemptive to raise things like down payments as well as interest rates on second homes at this point. >> well, the government is very concerned about this concept they call affordable housing. as well they should. they are moving 15 million to 20 million people a year from the countryside into the cities. and these are low income individuals that can't afford to buy inflated homes. so, they have a very aggressive, what they call social housing program, which builds in excess of 10 million units a year, to newly migrated urban workers. none of which made any appearance on the "60 minutes" show last night. they want you to believe that, you know, it's one condo scam

after another that's going to bring down china. and nothing could be further from the truth. and by the way, when you move 15 to 20 million people a year, you have to build cities in anticipation of that, so, the, you know, today's ghost city is tomorrow's fully populated met trap list, the exactly the way it was in shanghai, the first ghost city i saw, in the mid-1990s. >> so, stephen, outside of this you are talking about urbanization that's been going on for 15 years and something you are saying is wrong, what is the biggest misperception out there about china, then? a guy with your resume, you work for the fed, you ran morgan stanl stanley's business in asia. you have a ph.d in economics. you know this market inside and out. what do people have wrong? >> well, first of all, you know, ph.d is a pretty dangerous -- so, i wouldn't want to rest on that. but i think, you know, look, it's a good question. china thinks strategically. we think reactively, so -- they've got a plan to convert

the economy from exports and investment into one driven much more by the middle class and internal private consumption. urbanization, which is actually a trend that's been going on for close to 30 years, is a key piece of that. but they need a couple urbanization with job creation and their most recent five-year plan, the 12th five-year plan has solid measures aimed at hopefully building out the safety net, which -- social safety net. so, don't think of china as a reactive place like we tend to do policy and the mistakes we make in the west. think of them as being much more strategic than we are. >> stephen, thank you for your time. >> thank you, melissa. >> pleasure to see you. >> be ware those games with ph.ds, now. >> all right, tim, to translate this, he believes in urbanization, the real estate bubble is bunk, so --

>> the hard landing is bunk. be but wacareful, the miners, i think, have some head winds here. iron ore prices -- their core business could come down quite a bit. we cut down a couple of weeks ago and i don't need to get back in here. i've been relatively bullish on global miners and the bulks and i think 150 iron ore is the top you go here. don't run out the window. but this is not a place to be investing in. let's hit pops and drops. a pop for target, a big one, up 4%. >> a big one. er think it was on -- is it agee? >> like tommy agee. >> that's all i saw for. >> tommy agee, the baseball player, center fielder for the mets. people. >> drom fdrop for cliff natural tim. >> this is one of the mining stories that can still go lower, despite it's been torched.

>> pop for genworth, up 7%, pete. >> e with talked about this top of the show, as far as the financial sub. sector. look at today. 63,000 total options. 55,000 were calls. these stocks are going higher. >> pop for stratasys. >> this will make your head spin, folks. this was a $90 stock, now it's trading where it is now. this is -- this is a stay away for me. we brought you the story awhile ago. if you want to be in the space, still that ddd that we talked about. >> all right, pop for joe flak coe. >> huh? >> nice. >> as if being named the mvp of the super bowl isn't enough, he is now the owner of the biggest contract in nfl history. if a new contract banks the ravens quarterback a cool $120 million and includes a hefty $29 million signing bonus. that's enough to buy plenty of gas for his new corvette, which he won as the super bowl's most volumable player. >> pete? >> he played it out.

he went into the season, he played out his contract, he gets what he gets. he deserved it. stellar numbers. >> joe cool. >> all right. coming up next, three stocks which could pop to $1,000 a share before google. and hear from the outspoken hedge fund manager who won w warren buffett's bear challenge. the berkshire bear is on the way. stay tuned. [ kitt ] you know what's impressive? a talking car.

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try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. yahoo! investors had even more cheer about as the stock hit its highest level since 2008. guy has been beating the yahoo! drum for awhile. take a listen. >> on a risk-reward for a trade,

yahoo! here, where it is, $15.40, that's what's interesting to me. looking for 20 bucks on the upside. yahoo!, to me, is 20, 20.50 bucks on the upside. i think the stock is going to trade with a 20 handle. >> today, of course, barclays upgrading shares to an overweight price target going to 26 bucks. so, where does it go from here, guy? >> petey's talked about it, we all have. i think it continues higher. the trend is clearly a friend. it's a stealth run. today's a big move in yahoo!. this is a 3.5% move. tomorrow is not the day to go piling in, but this thing seems to want to continue higher. i see nothing stopping it right now. >> pete, what have you been seeing in the options pits in terms of yahoo!? >> there's no doubt that people have gotten very aggressive, expecting to see this name go higher. when you talk about mobile and some of the different innovations they are coming up with right now, underneath the new ceo, i think this name, when they actually do the sum of the

parts, which everybody has been doing forever, but you are starting to get better sense of that with the ali baba and today some of the defined numbers. 26 is not out of the question. >> no relief for apple investors shares closing at their lowest level in more than a year. let's go to brian sutland of sutland volatility group. what are you seeing? >> continued bearish belts in the options pits. we saw a flurry of basically call sellers ranging from march to april expiration. the biggest trade being a sale of 755 march calls. basically, these options traders saying apple will not trade above $440 any time soon, even as far as a month. apple's been the great long-short trade if you were long equities, you would want to be short apple as a hedge. we buy vix to hedge equity portfolios, but apple is a great short way to play it. it seems like it is going to be

stuck in the mode. european sales are going to slow for apple. that will put pricing pressures on iphone 5, if any other new phone comes out for them. so, really a lot going against them. i know the stock is cheap here. but certainly selling calls is a great way to convert from a stock that's basically been a growth stock, now a value play. >> all right, bruin, thank you for that. and we do have more developments on that news about jcpenney. the seller of the 10 million share block is, in fact, vornado. the seller of that 10 million share block being offered through douche bank againeutsch. so, it's -- >> i'm not quite getting how that works, actually. >> yeah. >> with the stock trading where it is now, i don't know, it doesn't make sense to me. i don't know if they've been able to place it -- >> prior to the move downyard in the afterhours session? >> vornado or vornado? >> tomato or tomato? they owned 23 million shares as

of the latest filing. this is roughly half of its stake that it is now selling. the stock seeing the pressure in the afterhours session, down more than 5% at this hour. moving on here. google shares hitting an all-time high, up more than 30% in the past year. can momentum in the internet giant continue? our next guest says not so fast. he joins us with three stocks that could hit $1,000 a share before google does. rick is a senior analyst special sizing in tech stocks at the motley fool. great to speak with you. >> thank you. >> let's start off with apple. do you still they that apple will hit 1,000 before google with the price action in the past couple of trading sessions? >> i think it's definitely possible. with google, you have a lot of people last month saying, it's going to hit 1,000, which is the same thing you heard about apple late last year. apple's current portfolio products, the iphone, the tablet, it's going to be pressured with margins. but you have a company, all they have to do is announce an i-tv,

an i-harmonica. it's as simple as that. the company is very cheap right now. one assumes that android is going to take over the world, but it's not. >> let's move to the next one. priceline. certainly seeing a lot of momentum. defying the skeptics when it comes to its european business. >> it barrelled through $700 today. really on a tear since its earnings report last month. here is a company that, yeah, a lot of people think priceline, think think william shatner, they think, you know, name your own price. but this is a company that $5.5 billion of their $6.6 billion in gross bookings this past quarter were entire nationinternational. it is catching up to expedia. and the stock, though it's always been a very pricey stock, it is trading 16 times next year's earnings, which is attractive. >> right, and some people look at this third one, baidu, think, really, on a day after we saw the shanghai drop the most since august 2011, you still like it here and think it goes to 1,000.

>> or how they beat google to 1,000, how google is a much more developed company in the same space. >> good point. >> absolutely. and this is why i went with that. first of all, google went public at 85 and the stock has nearly been a ten bagger. baidu is a 33 bagger. and what's good for google probably will be good for baidu. i could have gone amazon and netflix but the stock right now is trading 13 times next year's earnings. google, which is growing slower, and i still like google, i have nothing against google. but baidu is growing a lot faster and trading at a multiple of 13 times earnings, versus 15 for google. very attractive. i know all the risk-reward of china and baidu in general. it's a proven winner. >> rick, thank you for joining us. appreciate it. i want to go back to the first pick. if we can throw up a chart of

apple versus google over the past six months or so and see the divergence of the shares. then, you hear brian sutland say that they are using apple as a hedge against the markets. pete, are you with rick when he says it is -- definitely positive isn't exactly a ringing endorsement, but that apple will go to 1,000 before google does? >> no. i'm not. i continue to look at apple as the second half of the year story, because i think those are the catalysts in the second half of the year, when you talk about the carriers and when you talk about the different innovations, the cheaper phone that tim and i have debated on many times. that's where they need to go to get the next catalyst to go higher. the most intriguing storyline of all of those is priceline. we know about their international exposure. but the fact that their p.e. level is very impressive and this name is not that far away. if they continue to put up some of the numbers, if we continue to see some of the recovery globally, that's a name that absolutely could be $1,000. >> all right, coming up next, it is the bear growl that got

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always full of surprises, warren buffett surprising wall street once again on friday by putting in his annual letter that he was accepting applications for a bear to debate him live on stage at the oracle's annual meeting in may. the solicitation quickly became the talk of wall street and this morning, warren picked his bear. >> well, i thought i would make it more interesting. the crowd can hear somebody that thinks the stock is overpriced or that it's all a house of cards or whatever it may be. and we want the meeting to be interesting. so, that person will get six questions and we now have that person, because i said it had to be a credentialed bear, one that was short the stock. and doug cass is certainly credentialed.

he'd like to do, so, doug, you're on. >> on the phone right now is doug kass. how did this all come about? are you up for the challenge here? >> i sure am. i fell like i've gone full circle. in august of 1969, i attended woodstock, the music festival and now 44 years later, in may of 2013, i'm going to the woodstock of capitalism in omaha. i'm anxiously looking forward to charlie munger to call me a damn fool. >> now what did -- what do you think really caught warren's eye in terms of your -- i don't want to say application, you did put in some sort of an application to let warren you know you were interested in this. >> well, i asked andrew and becky quick and whitney tilson to submit an e-mail i sent to mr. buffett. i included in the e-mail my cv and a column i wrote back in march of 2008, where i explained

the ration naarationale of why t back then, almost five years ago and continued to be a successful short and surprisingly, for the right reasons. i included four references. of hedge fund managers and investment managers that i knew were close acquaintances of mr. buffett. and who were willing to give me a nice reference. >> doug, it's karen. let me ask you something. >> hi, karen. >> where in your list of bull lbullets bear case, where would warren's death be a catalyst for the event, not that anyone wishes that, but it is certainly -- he's an asset there. >> no, that was my -- actually, as i recall, i'm looking at it right now, my first bullet point is, there will never be another warren buffett and i expressed the facts, what the table is,

and that is today, he has four to five years of life expectancy. we share something in common, he has prostate cancer and i just had prostate cancer surgery, as you know. >> doug, imbedded, in this, i think, is your macro view that the market is heading lower. i think berkshire, it traded at an all-time high today. what's the right price in your estimation? >> well, i appreciate the question, my friend, but i'm not going to spill the beans and i don't really want to take away from the questions at the annual meeting. i would just say this one thing, that his willingness to take on a bear as a panelist at the annual meeting and to ask what i believe are to be tough questions is really testimony to his uniqueness, his transparency. he difer erfers from almost anyr corporate manager that i've met or known about who typically

lock bearish and analysts and their opinion in a closet, away from investors who sometimes get a bit too giddy and bullish. and, look, he's 82 years old, he loves a good battle, getting back to what mel said in the beginning, i'm up to the challenge. zblrt, do >> all right, doug. good luck. >> i think i'll need it. >> see if you can drive the stock down 10%. that's what mr. buffett said. we shall see. coming up next, jane wells with some interesting developments in vegas, baby. hey, jane. >> ah, you know what, melissa? las vegas sands is ticked at the way the media is portraying its auditors disclosures. also, an old bond man is now a new bond man. plus, melissa mayer versus honey boo boo. it ain't pretty. coming up. [ male announcer ] the lexus command performance

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electronic payments verifone is set to report earnings tomorrow. karen finerman has been pounding the table about her short position in the name for some time. take a listen. >> there is going to be tremendous pricing pressure on the hardware part of this system. the problem they have is the transition to a services, more

services model from a hardware model. i'd much rather be long something else in this space. >> all right, that was a nice call, karen. verifone dropped 40% after it warned on its earnings last month. shares are down today. what do you do now? >> we covered half. the risk-reward has changed. but we are still short half. i think they have a lot of explaining to do. >> explaining. >> about their business model. i think some of the things they cited in their preannouncement seemed a little -- i don't get how venezuela played into the story. >> kitchen sinkish. >> so, i think they have a lot of explaining to do. their credibility is -- is -- not in great shape. >> in question. >> in question. >> in your view. >> that's a reasonable way to put it. i don't know what they could say tomorrow to convince us, but -- wait and see. >> should be an interesting conference call. from mobile devices to medical marijuana, we have you covered in the west coast wrap. jane wells is -- there are

medical devices, as well. >> same thing, you know? you've got mobile marijuana and medical devices. anyway. we're going to start in vegas, where, they have everything. las vegas sands lashing out at reaction that auditors believe there were likely violations of foreign corruption laws. in the record keeping area, not in the actual alleged bribing. the company called mia reports about that admission misleading and sensationalistic, insisting no violations have occurred, and, by the way, their ceo is listed by forbes at the 15th richest earthling. he's down a spot from last year, but he is a billion dollars wealthier. >> tim? >> he's got great growth internationally. i have to say, i think this is a very interesting stock. but the 50 level is something you have to watch here. 75% mostly singapore and macau. i would be cautious at 50 bucks and stop myself there. >> all right. call him bond. jeffrey bond. jeffrey gundlach tells reuters

he's bought more long-term treasuries in the last month than he has in the last four years as rates popped above 2%. he has more facial hair now. he's thinking stocks are overbought. crazy? well, one year ago this week, i was with him in san diego and tweeted this now famous line from him, quote, one of my favorite generational shorts is apple. apple, that day, closed at $534. it's now more than 100 bucks cheaper. it went to above $700 first. >> and to jane's point, he's been spot on with just about everything he said. and i'm some what in his camp on the bond market. mill premise has been, when the ten years were trading 165, yields would be 2% and everything would turn. i think yields are going back lower. the vix is going to explode. we'll see. >> finally, today's celebrity stock trade. short marissa mayer, because people are still talking about yahoo!'s tell commuting ban a week later. really?

what's next? and go long, honey boo boo. yep. tmz she and mama june went down to the mall in georgia to help a friend sell cookies, after the girl scouts complained that she was cheating by hawking them on her facebook pages. scouts say the girls need to learn how to sell in person and no one can sell like them. melissa? >> honey boo boo. >> when are you hitting them up -- >> my niece is no longer a girl scout. she has the sales pitch down pat. >> she comes in person. >> samoas. wave them in. >> they put the thin in thin mints. >> all right, jane, good to see you. >> wave them in. >> jane wells. all right, coming up next on "mad money," buffett said this morning he is testing natural gas on the rails. cramer's got the play. then, the signs you need to look ahe ahead of a dividend cut. and find out if arcp has the

right real is state. that's coming up on "mad money." much for "fast" straight ahead. ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ to help you take charge. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do

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welcome back to "fast

money." we are live in new york city's times square. you tweet it, we trade it. let's get to some of your tweets. tim, this is for you. ken tweets, with bernanke, we're going to blow off the highs then tank. where does the money go? >> well, i tell you what, ken. we were going to do something on this tonight, but much more interesting news. but i think the dollar is the story here. the dollar goes to $83.50 first. that's the level that will test. $88 is the test from 2011 from 2010, the dollar is going higher. check it out on emerging money. we wrote about it today. >> is it safe haven, sort of e dynamic here? >> no longer is it the risk off. it's actually rallying in risk on. the felt's comments have kind of maxed out and you noticed that. so, then we have all the other china stories and the things that people are worried about in terms of commodities. i think the dollar is going higher. >> pete, this is for you. psu tweets,ic like to hear a discussion about the airlines.

your lucky day. >> constantly is a resolving these days around the price of oil. the efficiencies are there. we've seen the consolidation. i think delta made an exception alibi when the g themselves into the refinery business. so many people were shooting against that. now you're starting to see some of the rewards of that decision. and i'm telling you, now that it's at 100% capacity, they are getting the oil now from different parents of the inland part of the united states. the prices are right. i think the stocks are going higher. >> is delta your number one pick? >> absolutely. >> we're all pulling for you. >> we're all pulling -- wait a minute. just letting you know. >> guy, this is for you. david. looking for your ideas on #sox and #rambus and their products. >> rambus, you look at the stock over the last couple of years, it's -- owning the stock has not been a good position. and recently, that's never been true. i don't see a compelling to be in this thing. huge valuation. if you want to be in the space broadly, intel seems to want to hold 20, for whatever reason. nice bounce today.

much rather own intel than rambus at their 38 times. >> mike asks karen, is best buy a value play? >> it is a value play, but not one that i would play. >> you trapped. >> think of it more as a value trap. clear, i think, to be, anyway, that schultz couldn't get a deal done. the business model is difficult. it should be cheap, so, value trap. not long. >> all right, keep tweeting, because we will answer more tweets tomorrow. we have your first move tomorrow when we come right back. stay tuned. (music throughout)

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