but none of that was discussed and none of that may matter. instead, this incident, victimless or not, is being used as a poster child for the prospect of new regulation. another highlight or lowlight from the hearing was the discussion about compensation. former cfo doug bronstein was asked if anyone at jpmorgan was punished for the incident. he said that people had been punished and that his compensation had been cut. pushed for specifics, bronstein was forced to say that his compensation declined from $9.5 million to $5 million. there's no way that plays in washington or in the press that anyone is punished by collecting 5 million nasdaq compensation. there was also a conversation about whether management or jpmorgan tried to conceal how big the losses actually were. the regulators were clearly frustrated by the fact that the whale trade even happened and that the press discover it before regulators did. was there tweaking to the numbers? so the discussion zeroed in on who knew what and when did they know it? whether anything comes out of this remains to be seen, but it

is among the most important issues to be watched as an impact on jpmorgan and the industry. fast forward to today on this blunder out of cyprus. a sweeping tax on depositors to pay for a bailout? really? markets sold off in asia and in europe as fears escalated on the impact of the debt-ridden countries there. a reminder that europe remains a major issue for the markets and the banking sector. earlier on the show i asked former treasury secretary larry summers about this. >> they've made tremendous progress, and we are long since out of the intensive care unit. >> the bottom line, things will continue to get tougher for the big banks. it is a new normal for financial institutions. but we just don't know what that normal will look like. and as for an excuse to sell the banks, it seems like that is one. take a look at the markets before we go. this day turned out to be a one by the close. we were down 110 points at the worst but then came all the way back, went into positive territory only to lose it again

on the close, 62 points on the industrial average. 14,452 last trade on the blue chip. nasdaq and s&p 500 down as you can see there 11.5 and 8.5 respectively. that'll do if for "the closing bell" tonight. thank you so much for being with us. "fast money" begins right now. talk to you on twitter and on google plus. have a great night, everybody. see you again tomorrow. ♪ insane in the membrane ♪ insane in the brain ♪ insane in the membrane live from the nasdaq marketsite in new york city's times square i'm melissa lee. here's what fvt fvt is following tonight. cyprus, mountainar molehill? does the bailout spell bigger trouble for investors than they're pricing in right now? from the euro to the u.s. we're trading the potential fallout. energy independence. the ceo of continental resources joins us with his take on the domestic oil boom and how he's making money betting on the bakken shale. and apple anniversary. should you be betting for a fat payout on shareholders on this the eve of its dividend initiation announcement? two traders' take on the tech juggernaut.

back first to the action of the evening. the ceo of ea, electronic arts, stepping down. shares rallying on this news. julia boorstein with the latest on this story. >> that's right, melissa. electronic arts ceo is stepping down as ceo after six years on the job. larry probst will take over as executive chairman as the company looks for a new ceo. the video game giant also warned that it expects revenues and earnings for the current quarter to be at the low end or slightly below previously issued guidance. those results are due out on may 7th. now, richaciello saying in a letter "the decision to leave is all about my accountability for the shortcomings in our financial results this year." his tenure coincides with the collapse of the traditional video gaming industry. electronic arts struggled as consumers shifted to mobile and social games. and though ea is generating $1.5 billion in digital net revenue annually the company is still losing money.

we'll have to see who ea finds to take on the increasingly competitive mobile game landscape. this is a tough ceo job. melissa? >> thank you very much, julia boorstein. pete, let's go to you on the ea story. when shares are rallying on news a ceo is stepping down, maybe this spells change and an effort to address the problems at the company. >> and revisiting the ceo who actually built up this company, it was a $5 stock back in 1991. it got all the way to $61 a share. then he stepped away. and suddenly they have watched just themselves go into a full free-for-all -- freefall, excuse me. when you're looking at the balance sheets, however, the balance sheets are very strong. this is a company that does have that potential. they've got to get more competitive on the mobile platform, obviously the online as well. and that is where they've got to fight much harder. you look at the stock, it's not overpriced. balance sheet looks solid. now they have to get the leadership to get themselves over the hump to the next level. >> watching shares in the after-hours action down 2.9%. cyprus bruises european stocks. the street is getting even more bullish on the united states.

goldman sachs and morgan stanley upping their bets. 16.75 is its price target on the s&p 500. deutsche bank loosing its target over the weekend as well. is the u.s. the best place to invest? of course the context to this all when you focus on amorgan stanley is adam parker had been probably the biggest bear on the street now becoming bullish. are the strategists getting it wrong at this point given the news out of cyprus? >> i think they probably are. i would have to say yes on that. i bet most of these were done well before cyprus hit this weekend. probably had all their models done last week, it happened to come out. so -- >> dp they were to run their models again and they put in the cyprus -- >> no. i don't think -- my point is that they wouldn't have probably put those out tomorrow. in other words, if the information came out. i don't think you can put something in a zero or one for cyprus at this point because we don't know what the outcome's going to be. it's bad in general but we don't know how it's going to filter over o'to the u.s.

>> but is it a testament to the fact that nothing matters except ben bernanke? >> and that's what's scary about this. the s&p going into friday was at historic highs and volatility was at historic lows. if you look at implied vol, below 12, only a few times since 2006. to me i'm not going to say lambs to slaughter, but this is total complacency at its finest. these guys upgrading. look, valuationwise not a bad time but look what's going on with the trends in the dollar. look what's going on in how people have -- we're going to talk about cyprus another gnaws yam as people already probably have today but the precedent set here today tells you exactly why we he were running for cover the last two years. it's ab sushd. >> i think you hit on it. are we talking about cyprus ad gnaws yam? that implies this is not a huge issue. if it is a huge issue then talking about it ad gnaws yam is actually the right thing to do. >> on sunday night over the weekend. the markets forgot about it very quickly despite a move in the nikkei that was massive. this is not a place where people are going to be running for

cover. this is a month ago. we got italian election that's saw the v 2 x spike 26%. here we are again. these were opportunities, people. and you're going to get another one. >> top trades. quickly on the vix, 13 and change. is that complacent? >> well off the highs of the day. we had a good spike and then we started to pull back toward the end of the day. we started to move back up. tim's point, you're looking at the volatility index on the lower end. if you go and look out on the range over a couple years you're going to see exactly what i'm talking about. this is on the lower end of the range. i don't know that i necessarily always agree with everybody who says we've gotten complacent and all the rest of this. when we look and last week we were talk about this on monday. when you look at what the trades are frequently in the volatility index or the s&p 500 you're going to say see days when we're up and more puts trading than calls. at these lower prices people are buying. when did we suddenly turn around -- the s&ps was down in the premarket. then we started to sell off again. why didn't we sell off further? why weren't we down 25 points? i think it's because people had

protection in place, they sat for a while, they waited, wanted to see what the market reaction would be. before we knew it we started to see the market all the way up into positive territory. >> briefly i just think people don't think the u.s. can go down here and it's actually a flight to quality that's going to help u.s. stocks. this is the s&p you're talking about. it's not everything. >> industrial production is not so bad. retail sales not so bad. and fed in your corner as well. >> i'm not selling down the u.s. economy. i think it's in very good shape here. i just think when you look at markets they are complacent. this was a quad witching last friday. i think people are going to still see a hangover this week. >> let's take a look at our top trades of the week. steven p. grasso, we'll start off with you. >> i didn't trade today. but i was -- >> what? >> i didn't. because i would have got sucked into selling stocks today. so what i did was i'm watching people buy -- rotate out of a google into apple. i'm long apple but i'm also long google. i would have got sucked into selling it. >> when does the rotation happen for you? >> it's not going to happen for me. i would have bought more google but i felt as if i didn't have enough clarity right now. i want to see how the week plays

out. >> pilot? >> i look at the energy space and for weeks for months we've been talking about just about every subsector, sector in energy. whether it's refiners. today was integrateds. conoco phillips is one of those names. c.o.p. this is not psx. conoco phillips the integrated space. plenty of upside buying in the calls. 60 strike calls in the weeklies. 18,000 in the first hour and a half was trading. marathon. another that spun off the refining business. we're seeing upside buying there as well in the july 39 calls. i like that energy space. i jumped in there. i've already been exposed through valero, tesoro, everything across the board. i love these italian graited names. >> timothy seymour. >> we took advantage of the spike in vol. especially in e.m. because emerging's been getting tanked and it's not a place for flight to quality. we're taking this opportunity to trade vol that i think is a spike. i don't think we're going to stay at elevator vol levels here. you take your opportunities where you can. this was protection for us as pete said. kind of -- it's what pete was saying. we had stuff in place but i'm not going to wait around to see

if vol goes higher. if i think the world's getting worse i will then short physi l physical. but if you had puts on you take that vol yourself b.k., your top trade. and are you wearing that bear suit now with -- >> it's back from the cleaners. it's about half on. last night i dusted it off, r5edy to put it on. and the rally today got me -- i'm not quite in that bear suit. >> that was uncomfortable. >> very natural. >> you weren't the only one that was uncomfortable. anyway. >> top trade. >> top trade is gold. i think it's a great time to buy it here. we'll talk a little bit about it later. but really what's happening in europe, since they don't have a central government, every time they come to something they have to govern by brinkmanship, which by definition means the next iteration has to be even worse. and we always saw switzerland saying no, we don't want your cash, negative interest rates. cyprus is an issue. everybody's going to get a

haircut there. gold is the place to be in this environment. >> let's move on here. cyprus of course rattling the global markets on fears that it could destabilize the euro zone. joining us now to break it down is paul donovan, global economist at ubs. great to have you with us this evening. >> thanks very much. >> i think the big question the markets is granling with is will there be contagion? when you look at how the european finals traded and u.s. financials tradeed is there is a concern there could be some sort of contagion to global markets. is that your take? what is the probability in your view of that happening? >> i don't think it's about con tajons quite so much. yes, there is clearly a risk although it has to be said in the last couple of hours the sound of backpedaling from europe has been quite deafening. they said no, no, no, we didn't really mean to hurt the small depositors. we'll give more flexibility to cyprus. which means we made a complete mistake of this whole situation and we're going to try to resolve it. for me the issue is not so much that cyprus spreads to other countries right now.

the issue is that if another country gets into difficulties in the future the cost of dealing with that will be a great deal higher and the consequences of any possible future crisis will be a lot more severe. >> hey, paul, it's tim seymour. for people who don't know paul and i were colleagues at ubs 15 years ago and he was always a man with a cynical view on the euro. and he was right -- >> take the tone out of surprise out of your voice. >> you said monetary unions die because of bank runs. and what you're saying here is that the eu is still very vulnerable and that the leftists who just maybe have taken a big piece of power in italy will use this in election cans and that every place is going to have to deal with this. >> yeah. i think this is something which has worried me. absolutely. i think the euro survives. the political will behind this thing is dramatic. it should never have been created in the first place, but now we've got it we're stuck with it.

having said that, i think what politicians have failed to realize is just how dangerous bank runs can be. once a bank run starts it is very, very difficult to stop. people do not behave nationally in a bank run. the uk bless it, there was a demonstration of that in 2008 when you've got people queueing up outside northern rock to take their money out even though their money is fully guaranteed by the british government, which can print its own money. people do not behave rationally. and i think what the euro group is realizing with its emergency calls this evening to try to resolve the situation is if you let the genie of bank deposit losses out of the bottle it's going to be very, very hard to get that back into the bottle. and that's what they're so concerned about. >> hey, paul, it's brian kelly. you talked about the euro surviving. what is it going to look like? my working hypothesis is that it ultimately ends up being the new deutschemark as some of the southern periphery exits the euro zone. what's your thoughts on that?

>> i think there's a problem with that. if you get one country leaving, then very quickly you will get bank runs spreading. and then more than one country will leave. and where do you stop? do you stop with spain? do you stop with portugal? do you stop with italy? do you stop with frabs? and then the question is, well, what's left? and once you say an irrevocable monetary union is in fact revocable, you can actually get an exit from it, there's a permanent premium and it becomes no more than a bad fixed exchange rate nechl mechanism. i think it's all or nothing. either you're there with the 17 or not at all. economically as i said this should never have been created. you about the problem is once you go into a monetary union the costs of exit go up disproportionately highly and the costs of breaking this up is too big. >> paul, thanks for your time. paul donovan, chief global economist at ubs. as we head to break let's take a look at some of the names moving

in the after hours session. skull candy popping on word hobey darling was named as ceo. most recently manager of nike digital sport. also take a look at a likonic art surge after the ceo john ricutello stepped down. >> it's in the game. >> coming up next on "fast" how the situation in cyprus can agitate one group that's not known for being too friendly. >> what he's in the market for right now. plus a deeper dive into the oil markets. haroldham, the ceo of continental resources, he'll tell us what it will feel like on the last leg of the energy boom. much more "fast" straight ahead. ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future.

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to deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking. standard at citibank. the u.s. is in the midst of a major power shift. the energy boom here in the u.s. creating an energy revolution. and back with more on what this might mean for you we're joined by haroldham, the ceo of continental resources, the largest energy producer in the bakken. it is great to have you with us, harold. >> hey, good afternoon. it's good to be with you as well. >> and we should note, too, that continental's the largest leaseholder in the bakken. and in the past there have been predictions about when the u.s. could be energy independent. helped, of course, by major

finds like the bakken shale. and i'm wondering because romney, for whom you were the energy adviser, had forecasted that the u.s. could be energy independent by 2020 if he had been elected. at this point where do you see that target? is this realistic? given what the situation is here politically. >> certainly we've made very good progress toward energy independence. i started talking about energy independence about two years ago. and at that time we were over 50% imports. and we've seen import level come down. now it's about 37%. so very good progress has been made. and it's due to the energy renaissance, basically one thing, and that's horizontal drilling. that's got us here. able to drill down two miles, turn right, drill two miles further, and expose 9,000 to 15,000 foot of well bore. so it's gotten us into what we call the immobile oil on earth,

which is a bigger portion than the mobile portion that we've been producing for 160 years. >> there is a tipping point, though, in terms of production versus prices in the latest quarter. that's what we saw with you guys. average daily oil production was up 42%. prices were down by 4.8% on average last quarter. the production of natural gas similarly up 43%, while prices were down 3%. are we near that tipping point now where production is maxed out in relationship to where prices are going? to make it economic still. >> well, everybody -- prices are key, and fsh's trying to figure out where those are going. natural gas prices have been in the tank for a little while due to the oversupply of the market. if i see natural gas prices beginning to improve, we've got the rig count down to the point that probably will not be able to produce supply at the current

level we're drilling, 450 gas rig working in the nation today. so i see that certainly as stabilized and we're seeing prices respond. i hate to say that with too much exuberance because sometimes drillers will overdrill and overspot the market. i think as far as oil prices we're seeing stability. you know, demand is up, and international demand is up due to the emerging countries, primarily china, india, asia, and other countries. yeah, we're filling a portion of that now from the u.s. >> harold, switch gears with me a little here. refiners. is it a pro to have the abundant on-shore supply of crude for them? or is it a bigger issue with ethanol mandates? what do you think is a bigger concern?

>> excuse me. i didn't understand your question. >> do refiners continue to benefit from onshore supply of crude? because they've just been in favor in the energy world. or is the ethanol updates -- i'm sorry, mandates a bigger issue? >> well, you know, the ethanol mandate has been out there, you know, i'm glad to see subsidies stop. we certainly didn't need to be subsidizing that -- >> amen. >> -- process. and certainly -- yeah, amen. and here we are producing something that it takes more energy to produce than we get out of it. so i don't know how smart that is. and here we are producing -- taking a food source and producing fuel from it. and it's just -- we don't have to do that. we can produce our own energy. and we're on a very good path toward energy independence in the future without that. >> mr.ham, we appreciate your time. pleasure to have you with us. haroldham, the ceo of continental resources. we've got some breaking news.

we want to go straight to our chief international correspondent michelle caruso-cabrera. apparently the euro group is out with a statement on the events in cyprus. michelle? >> there is a statement out, melissa but first let me tell you some reporting i've done that shows that -- at least two sources tell me that it's quite likely that senior bank debt holders in non-viable banks in cyprus will likely take losses. this is a change from what we had seen previously. it looked like they were going to go after depositors, perhaps without touching the senior bank debt holders. this is likely a reflection of the fact that they are trying to reduce the burden on taxing those below the 1 hupp,000 euro threshold, which is the level of insured deposits. so it looks like there's a shift going on in terms of trying to shift the burden sharing and for the first time in a significant way perhaps senior bank debt holders in europe are going to take losses. same time in the euro group statement they say they encourage the protection of depositors below the 100,000

euro but as long as cyprus still comes up with the 5.8 billion euros that they have to do. so that's what the struggle that's going on right now, is where else do you find the money? they have found perhaps as much as 400 million within the senior debt holders. >> michelle, thank you so much for your reporting. michelle caruso-cabrera there. what's your trade here? it's interesting because we saut euro initially hit three-month lows on this news. and then pretty much bounce. >> and then it bounced right back. this is what's going on. but what michelle said, it's $400 million. it's nothing. it's why they didn't do it in the first place. i guess the good thing is they're sort of going back to the rule of law. but it's $400 million. >> honoring the insurance. the deposit insurance. >> the absurdity of the fact that they've come out now and said that the deposits less than 100,000 euros won't be hurt is crazy. it tells you this was a decision that was either made in a vacuum or was an emotional decision to go after russia and we're going to talk about that. this is the kind of situation, unique situation that we have tons of unique situations in

europe, and this to me is what scares me. >> that's a good point in terms of the unique situation. >> every situation's unique. >> it's followed by another one. >> that's the brinkmanship, that the next one has to be worse for you to get anything done. >> sxopz drops. big movers of the day. we kick it off with a pop for constellation brands up 3%, tim. >> this is kind of a unique industry where the industry is consolidating is the u.s. department of justice has been very concerned. constellation keeps going up higher and higher as the news comes they've worked out a deal with bud where they will get a big part of the crown. and this is very good news for this company. i think it's probably topped here but i've been wrong the last couple bucks. >> best buy, pete najar jab. >> nice turnaround. the cost cutting and get themselves in the price matching situation when you're looking at what the management's doing they're doing everything right right now, jpmorgan thinks so as well. they've put a $29 price tag on the stock right now. nice rebound. >> consol. >> part coal company. i think the coal still is a thorn in the side of it.

you're going to buy it keep it on a short leash. >> drop for hospital pira. >> they may get a fine from the fda for their rocky hill facility. so i would stay away from this one completely. >> and a pop here for the irish. >> hey. >> yesterday of course marked st. patrick's day. and revelers celebrated from boston to dublin with st. paddy's falling on a sunday. partygoers had all week to drink an estimated $13 million pints of guinness and march in parades. but most importantly, they dance a jig. this authentic irish jig is brought to you by the champion dancers from the chicago academy of irish dance. it doesn't get any more irish than this. pete, you're just breaking out moves like that -- >> i can do that kind of dance almost on a regular basis. >> that's huge. that is very cute. >> good for them. coming up next, the stocks on investor scott black's to buy list. plus whether he thinks the latest cyprus development could derail this bull run at home. but first, traders get ready to

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welcome back to welcome back to "fast money." i'm josh lipton. jcpenney up big today. analysts at isi say the retailer seems to be headed toward serious financial and liquidity issues if sales continue to shrink at a 20% to 30% run rate. but they say investors might be overlooking an intriguing alternate outcome. jcpenney has the option, they say, to transform its top three locations into a reit-like entity which could generate 1.2 billion of sublet rental income. melissa, back to you.

>> thank you very much, josh. so one of the best outcomes for jcpenney, it's to rent to other retailers. and that will make it better than itself. less than 24 hours away from apple's dividend anniversary, apple announcing a year ago that it would reinstate its dividend after 17 years. since then shares of the company at all-time highs and then as you know plummeted. now there's speculation a new dividend could be announced tomorrow. this leads to us our street fight on apple. tim ace bull, pete is a bear. total of 90 seconds to make both cases. tim kick it off. >> ffr after you strip away all the noise you're left with that classic it is what it is. even if you downgrade your outlook on iphone shipments to roughly lly 2.5 million less t expected you're still left with 41 bucks earnings and roughly trades at $550. this is 13 times earnings. obviously a multiple that is a very fair multiple. the noise around this thing means you have to get rid of that to get the momentum going. what gets the momentum going? the news that tim cook is ready to make the announcement because

a year ago tomorrow was the anounlts he made noise on giving cash back to shareholders. people are expecting that. that's in the price. ultimately the street is saying if these guys do about 13 per quarter this will get a lot of people back in the stock. this is better than 80% of the s&p. people need to go back and look at it for what it is. the drivers, china mobile may be coming up. they've announced 31 billion in capex for this year which means people think they're ready to support the iphone. that will be another major catalyst for the stock. >> some of the bearish case i have and i say this as an apple bull and i've owned the stock for years, but i would say this right now. the problem they face is a lot of this may already be built in. last year when they did abounce nouns the buyback and dividend stock was up 2%. today it was up 2.7%. that's part of it. when they come out with the smaller iphone, as far as usage, that could be a problem. that's going to shrink things up. when you look at the earnings per share they're going to start giving a range rather than a single number that they could k34r0ed and blow out. that range might be a little tighter, might cause the

earnings not to move the way they have in the past. i think for a lot of reasons right now this is still a second half story. we've seen a nice move so far this year in the last couple of days but i think you're going to see this pullback. i think there's going to be an opportunity -- >> i have a question regarding one of your points, pete, and that is the stock moved last year 2% ahead of the day before announced its dividend. so the comparables today, the 2.7% move the day before potentially another dividend's announced? >> i think a lot of people are starting to factor this in. this has been talked-b melissa, for the last week or so, are they going to bring i dividend, are they going to start buybacks? i think there's the potential that could happen. what if they disappoint? what if the buybacks aren't big enough? what if the dividend's not that 3.6%. those are factors that could sell off the stock. >> they can't be too small. and ultimately these guys are in a place where the market has i think expectations that if you look at the stock price we have broken the down trend at 444 the stock has broken the long-term down trend. it got above the 20. it's dancing with the 50. this is a place where people are going to come piling --

>> i think that's a key point in terms of break the downward momentum. >> that's my girl. >> i'm not -- hey. >> he was talking to me. >> there is not a couple of days that you can look at this and say in the last couple of days suddenly it's broken this down with momentum. we've hay couple of days to the up side -- >> but it's been a pattern, pete. >> yep. >> where it doesn't trade down on bad news and price target decreases. i'm not taking sides. but could a dividend increase at least attract new buyers? >> it absolutely will. >> b.k. is the judge. hey. hey. >> i need a gavel. >> yeah. >> b.k., come in. >> i'm going to go with my man tim seymour. i think this is actually a first path story and the shrinkage that pete's worried about the second half story. >> shrinkage, pete. >> the dividend's going to pull new investors in. >> look at the 50-day moving average tim allude to. it's $464. that's the level you want to be -- that's the level you want

to look. if you want to get longer the stock it blows through that much higher. >> was that a vote? >> i'm long the stock. i'm going to have to agree with tim. >> we of course want to know who you thought won this street. tweet us @cnbcfastmoney by using the #bull or #bear. let's hit the options. is the options market pricing any sort of move on the dividend? brian? >> melissa, you talk about momentum shifts and tim makes some great points and grasso mentioned the 460 level. that's a key level. what we did is saw some option traders go out and buy the 515 calls in april. 515 was that level where the stock dropped after its last earnings and it fell all the way into the 460'. i think this trade is saying if we can get above 460 450e6r, get out of this little range that has been so bearish for apple that apple could necessarily move a lot higher here. that's what these traders are saying playing for the up side here. but i haven't touched this stock for myself or my investors over the last year other than a

couple trades in and out. i want to see it get above 460 before i jump back in. at that point i think 9 momentum shifts and the bullishness comes back to apple. >> brian sutland of sutland von tilt group. how should you play this market? scott black is a member of "barron's" round table and the founder of delphi management. scott, it's always great to see you. >> thanks for inviting me, melissa. >> let's get your take on the overall market. you say there could be serious headwinds. sequestration is one of them. is cyprus among those headwinds in your view? >> cyprus shows how fragile the system is. i looked up the gdp of cyprus this morning. the smallest state in the united stat states, sign vus smaller than amount. they leveraged their bank assets to roughly 23 1/2 billion in gdp. this isn't spain or france or italy or portugal. it just shows you how the quick reaction to such a negative seen

the and this is just a drop in the bucket comparatively to some of the other problems in the euro. mario draggi probably six months ago said they're going to support the euro and everybody thought -- the fact sufficient the highest unemployment in the euro zone. over 11%. and there are strategic problems there. they're not going to come out of recession probably for another year. and it's just the tip of the iceberg. the other thing that concerns me is valuations on high, melissa. 15.1 times on the s&p. but the actual street estimates are much too ebullient at $111. we came in at 96.90. there's no way corporate earnings are going to be up 14% on the year. it's not in the cards. >> given that market outlook let's get some of your picks and they do seem o'to be more defensive picks. let's start out with omega health care. >> yes. basically, it's a skilled nursing facility. it's an reit with a yield of about 6.4%. but if you look at the n.o.i.,

which is what we look at, it's actually going to grow this year at about 12.5%. so if you looked at the cash on cash return, the implicit cap rate is 8.1%. and if you look at other comparables today in the reit sector, especially in the health care, the implicit cash on cashes are at 6, low 7. so this is still a bargain at $28 a share. it's a relatively small cap at 3.1 billion. and the dividend payout ratio's only about 78%. and their interest coverage is very healthy at 3.5 to 1. >> we're going to have to leave it there. cvs caremark by the way another one of scott's picks. great to see you. >> thank you very much. >> coming up next a mafia connection. look at the new wild card emerging in the cyprus fallout. much more "fast" straight ahead. [ indistinct shouting ] ♪

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welcome back to welcome back to fms. we're live at the nasdaq marketsite here in new york's times square. worries over that cyprus bailout weighing on the euro today driving it to three-month lows against the u.s. dollar. how much further does it have to

fall? dennis gartman from the gartman letter joins us now with that answer. and dennis, of course, i got to ask you about what you posted today because it's getting a lot of traction. and that is the notion that one cannot steal from the russian mafia and get away with it. is that -- >> you can't -- >> is that overexaggerating the situation? >> no. i don't think so, mel. everybody knows that the vast majority of the deposits in cyprus are from russia. they're russian government officials. they're russian businessmen. it's russian mafia. and you don't mess with the russian mafia. they don't -- people around the world don't kidnap russians because they know that the russians will deal with you in a very efficient and very ugly manner. i think that the decision here was egregiously bad. i think this was lunacy on the part of the european monetary authorities, the banking regulators, or whoever it was responsible for making this decision in cyprus. they have stepped upon russian toes, and the russians are not going to be happy about this. somebody will have to pay for

it. i think this is very stupid. >> dennis, i agree with you. look, i lived in russia. i worked for a russian bank. i know where a lot of this russian money claims to be hiding. i don't think it's in cyprus as much as it's switzerland. but more importantly, the germans are saying that. the germans are saying why are we going to support russian bank accounts? why shouldn't they -- there's no way that european and german taxpayers should be supporting wealthy russian bank accounts. so as we've seen, the news has been overturned, at least part of it, in the last 30 minutes, which is that actually the smaller depositors will be helped out. russia has a lot of interest in cyprus. and in fact, i think they'd probably back up all of this loan themselves. why is it a surprise that europe is is doing this? >> why is it a surprise? to have made the decision over the weekend that caught i think everybody off guard, to have come in and made the decision to deny the viability, the rationality, the reality of insurance on deposits was just

simply wrong. now, they're backing down from it. they have no choice. they're making the right move afterward because they realize they made a very, very bad decision on friday afternoon or saturday morning when the decision came down. they're doing the right thing by backing away. give them credit for that. nonetheless, they made an illogical and i think wrong decision to begin with. >> so dennis, let's get to the trade here because you do see further weakness ahead for the euro. how does this play out over the next week especially as a vote doesn't happen until thursday? >> well, i think what we have to understand is as i like to say, all economics is the study of people's propensity to do something. in the future what is your propensity if you're a wealthy russian, if you're a wealthy german, if you're a wealthy italian, to move money into -- to keep it there in europe? your propensity at the margin will be to say i'm going to move my money where it has been officially safer. i'm going to the dollar economies. i'm going to the united states. i'm going to canada. i'm going to australia. i'm going to new zealand. and i'm going to move at the margin away from europe. this i think means a much weaker

euro over time. we bounced this morning. we bounced from 128.50 or 128. 0 to 129.60. but that's after being down a big figure and a half all overnight. they've broken trend lines. this looks ugly. i think you're going lower in the euro and i think you're going materially lower over time. >> dennis, great to see you. dennis gartman -- >> thanks, mel. always good to be seen. >> b.k., want to go to you quickly because you said over the weekend long euros. with a sad face. because at that point the trade looked -- >> that was sunday. i sent a sad face over because i was long euros. but it bounced. i'm going to still hold on to it. 200-day moving average is still my stop out point. it goes back to the point that if you pair it you end up with a very hard currency. that's the euro. >> are men sending sad faces? >> yeah. >> apparently. >> the stronger men are. >> what happened in russia today is it traded all the way back to the 200 moving day. i don't think you need to catch this knife in the case of -- i agree with dennis in that russia will be bombing the tape with very caustic comments. so there will be rhetoric.

russia and emerging markets have underperformed developed markets. if you look at a chart of eem against the s&p we're well through one-year lows and i don't think emerging markets see a need to turn that tide right here. so i would stay cautious on russia even though spare bank is the best bank in emerging europe and a bank i would be buying on weakness from here. >> coming up next on "fast," what's putting cnbc's jane wells in a west coast state of mind? jane. >> more proof that mila kunis is totally cool. blackberry is apparently cooler than apple. and what does cyprus have to do with pete najarian? when we get back. ♪ i'm the new sinatra ♪ and since i made it here mizers. how? by building custom security solutions that integrate video, access control, fire and intrusion protection. all backed up with world-class monitoring centers, thousands of qualified technicians, and a personal passion to help protect your business.

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to the finest comforts above. we're not simply saluting history... we're making it. from mobile from mobile devices to medical marijuana we've got you covered in the wft coast wrap. jane wells joins us from the best coast. hi, jane. >> hey, melissa. some people mocked mila kunis for saying she's investing in stocks. don't mess with mila. she has the midas touch, or the emerald touch. >> deep down you are wicked. >> i'm not wicked! >> no, you're wicked awesome. for the second week in a row disney's "oz: the great and powerful" slayed the box office with another 42 million, way head of the competition, though

down from opening weekend. not very magical, though, was the incredible burt wonderstone. only $10 million in tickets for a film that reportedly cost warner brothers $32 million. melissa? >> it's only a dollar off of its 52-week high, grasso. >> it's about the content providers. i still think you can put money into disney even at these levels. >> huge buyer of mila, too. >> by the way, jane. >> yes! >> apple, by the way, is so 2008. blackberry ceo thorston hines tells the financial review the company needs to catch up. heinz. ketchup? the user interface on the iphone with all due respect for what it invention was all about is now five years old. so now it's blackberry that totes cool. so cool its band of developers celebrated the new models with this new single. ♪ two new devices good to go >> those are allegedly really blackberry developers singing that the new devices come complete with legendary keyboards and, quote, balance,

hub, and flow. melissa. >> that's so bad. >> not confused with kings of leon right there. >> in terms of heinz's comments, isn't that like the pot calling the kettle black? >> i think it's interesting to see him get aggressive as he's been. normally ceos will sidestep a lot of that direction competition. i think it's interesting he's going right after them with the z-10. they are really going after apple specifically. they're not looking at apple. they're not looking at the others. they're going directly at apple. they're going after number one. they're up in three. it's a smart way to go. >> jane? cyprus too big to falafel? the nation threw world markets into a hissy fit even though a million people live there and their gdpgdp is smaller than pes monthly spend at gnc. fill in the blank. cyprus tax bringing down u.s. markets is like? it's like a kim kardashian marriage, only lasted a short while and utterly meaningless. another said like a 20-buck battery grounding a 787 fleet.

i'm glad these aren't coming up. and finally, it's like listening to mila kunis for stock picks. >> we do. >> leave that poor woman alone. >> now, tim, since you're long mila -- >> you've got to be -- wouldn't you be long the markets because of mila's comments? >> no. i wasn't listening to that news. but i like the way she articulated her point. and if she wants to understand more about it she should come down to "fast" in the studio and we'll talk more about it. >> wa, wa. >> jane-g to see you. before the break check lululemon. watching the shares tumbling. cutting its first quarter sales guidance. it's a developing story. and of course we'll bring in more of the trade and more of the news as we have it. but again, as you see there, a hard fall for lulu in the after hours session. >> looks like a downward dog, huh? no? are we still on air? >> yeah. coming up next, trading your tweets. who made today's cuts. and starting tomorrow, "fast money madness." it's a three-weeklong event

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welcome back to welcome back to "fast." we are live at the nasdaq marketsite in times square. gold not shining today. the precious metal failed to garner much momentum today despite the fears of contagion in the eurozone. here's what our "fast money" traders said. >> i think you can short it today and cover your short tomorrow. it's going it fall back. >> i don't think gold has a fundamental reason to be going higher. i think it's going to continue the downward trend. >> no gold. if i'm going to own i'd rather own silver because at least i have the industrial exposure. >> no love on the halftime. but beakers, you like gold. >> i love it. i actually think there is a fundamental reason to own it and russian central bank will be buying gold. it's certainly not going to want to buy euros. dennis gartman talked about oligarchs and wealthy individuals putting their money elsewhere around the world. why not gold? it's a currency like anything else. >> let's get to our tweets. you tweeted we love to trade it. grasso, this one's for you. "sell google by apple playing out here with the same money rotating?" >> that's how i opened up the show. it's definitive. you see it in the stock price. you see it in the action. you see it in the charts on a

daily basis. it's happening. until we find out and get some closure on apple this trade will stay on. >> b.k., what are your thoughts on 3e system and pioneer energy pro partners? >> let's start with 3-d systems. this is what am should do with their cash. they should buy this company. this is game-changing technology. now, over to the oil patch and the mlppse. it's not a bad trade here. you get paid an 8% dividend. it doesn't really excite b.k. that much. but if you're in it that much. >> what a nice third person reference. >> and i love the third person. >> pete, your take on qualcomm here, pullback. seems like they're better than trying to pick the sell tablet winner. >> this is a name that's somewhat underperformed despite the 52-week highs. it's going to start to move as we get further into the year. i like what they're doing with themselves with the combination with china mobile. and luke at the p/e right now the forward p/e at a 13 it's too cheap 37. >> back to gold, this one's for tim, liked your article on gold this morning but what did you

like about the charts? >> signed mom. love you, tim. >> thank you. we wrote about this op emerging money. and the chart has broke erin back above 209. the chart is 3 1/2% off the lows for the fed minutes. everyone throwing gold out the window from that low point, gold is up and it's gone higher. i still think the best way to play this is by the miners. but people that are throwing gold out are not listening to me and brian. that was 75% of the reason for owning gold, was the eu at least implosion over the last 18 months to two years. why are you not back into it today? >> coming up next, we crown the winner of our street fight. so hurry up, tweet. plus we've got your first news tomorrow when we come right back. stay tuned. ♪ [ laughter ] ♪

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