their policies, they shouldn't look at the red or blue ideologies but instead just follow the green. before we go take a look at the day on wall street today. it was a winner of a session but you know just barely. in fact we had been up 90 points we ended up only 21. the dow 15,324. the nasdaq and s&p also on the up side. have a great night. sigh tomorrow. and stay with cnbc. "fast money" begins right now. ♪ i had no doubt in my nine-day ♪ nasdaq marketsite in new york city's times square. i'm melissa lee. jon najarian, brian kelly, karen finerman, guy adami, and mike kuo. let's get right to the big story "fast" is following for you. the financials the best performing group today and over the past year as well. goldman, jpmorgan, wells fargo multiyear highs. the regional banks also on fire. even c.i.t. group, of course once left for dead, now has government approval to return capital to shareholders, sending the shares to two-year highs. the banks will cash in on a low rate environment by issuing mortgages and they should work

in a rising rate environment as net interest margins improve. so is it the can't lose sector? guy adami, what do you say? >> right on. and gerry rafferty to start the night. love that. well, of course it can lose. i mean of course, it can lose, mel. that's a rhetorical question. but it clearly favors the banks. but i think it favors the insurers. take a look at a prudential financial, which has been on fire. i think that's who really wins this. i can't say specifically it's going to help jpm, citi, wells fargo, although the stocks say they will. i think with these life insurers, that's really where we're going to get some mojo. if you think rates are going higher, which i don't necessarily adhere to that but if you do i think that's where you want to be. >> i just want to say why it is we have that general understanding if rates go higher that it's good for banks, that's because the net interest margin has been so slim, but if rates rise their assets reprice much more quickly than their liabilities reprice. if you're a depositor, you see, wow, how come i'm getting 00.00, you know, why don't i

participate? that lag creates that net interest margin. and for the insurers that float that they have, the higher rates are the higher their earnings are. so unless you see a real spike. but a natural up trend is great for both. >> why go think rates is r. going to rise? the federal reserve has already told you we're going to continue to buy. we talk about tapering, but we had someone on last night who talked about they're going to peg the rates. i think it was ed yardeni said we might even peg rates. so why -- >> we saw in today's session the 30-year mortgage reaching the highest level that it's seen in a year. of course the question's going -- of course the question's going to be and you participate in a bull-bear debate yesterday, street fight as it is known here on this show, on wells fargo. >> that's true. >> questioning whether or not it can offset the lower mortgage originations with the higher nims. and that is sort of the question with the financials. >> but what i'm saying is i don't think they necessarily get those higher nims. look at ten-year treasuries today. look at the reversal. >> you're saying they're getting bitten on both sides. >> yes. zblir not going to get the --

and mortgage orange naixs are -- >> that's my bear case on wells fargo, which has proved to be wrong so far. >> doc. >> to b.k.'s point, wells fargo a new 52-week high. virtually everything in the sector. then you take a look at some of the brokers as well, td ameritrade, squharks e-trade. i'm naming competitors off here. but these guys are 30% to 40% on the year. you look at the moves some of the financials have made and these are clearly outperforming. and why? so many people are sitting on cash in their accounts and the more those rates move up they're not moving up much on the credit side. in other words, deposit money is not moving up at all. but they can now start charging higher rates for margin and the rest. >> in the short term in the next quarter as the world readjusts to the higher rate environment. if there is one. will bank of america or wells fargo see any sort of hiccups in mortgage orange naixs going down when they haven't yet fully captured the full effect of a rising nim? >> i don't know if they will

because there might be a little pause in mortgage originations and then anyone who's been sitting on the sidelines may feel like you know what, i was waiting for the bottom, that's the bottom, i've got to jump in. >> to karen's point, if the housing market's been the backbone for the bank recovery, which i can't say that it is or it's not. but if it has, rising rates are not going to help -- i don't think it's going to help the housing market at all. you can't have it both ways. you can't say low rates good for the banks, housing origination, rising rates good for the banks. it has to be in my opinion good for one or the other. >> although historically rising rates have signaled an improving economy. >> i don't think that's what it's signaling now. i think a lot of it has to do with what's going on in japan. we'll talk about later. >> we will. the question we asked tonight, should we keep betting on the financials? dick bove. it's always great to speak with you. what is the sensitivity impact in terms a wells fargo or bachk of america whose core business, one of its core businesses is mortgage origination and we're seeing this sort of downtick possibly in mortgage originations as rates go higher

and not yet the steep enough yield curve for them to really capture the full bang from a rising nim? >> you're looking in the wrong place. you're spending too much time on an issue which you shouldn't be spending time on. the first thing you should understand is that you know, for 14 quarters in a row the banking industry has shown earnings increases on a year-over-year basis. in 2012 the banking industry earned $122 billion, which is in fact the second highest ever in the history of the industry for a full year. in the first quarter of 2013 the banking industry earned more money than it's ever earned in any quarter ever. that wasn't because margins went up or interest rates went up. it's because there's an overall improvement of every facet of banking at the present time. first, loan volumes actually have been going up. commercial industrial lending is up something like 10% year over year. until the refinance market slowed down a little bit you

were seeing an increase in mortgage activity. auto loans are very strong. so if you're looking at -- and of course you get this whole energy kick. you've got the fact that the consumer now is wealthier and is likely to spend more. you've got capital spending, which is going to increase borrowing there. you've got huge amounts of money around. and you've got it all at low interest rates. that's only one facet, however. the second facet is these companies are raising prices on just about every product that they sell. at least the ones that are not capped by government price fixing. and at the same time you've got these larger companies that are in the capital markets area benefiting by a slight increase in investment banking and a big increase in trading. then you've got the fact that they're seeing a decline in their operating costs because as foreclosures come down the cost running the bank comes down. >> sure. >> and then the last point adlike ai'd like to make is their assets are understated on the books because as housing prices rise so does

the value of their assets. >> dick, i gave you the chance to lay out four points, which i don't normally do with guests. so just give me one or two tickers, your top picks in the space here. >> bank of america is selling at a 30% discount to book value. it's a very, very strong guy. on the regional side suntrust is selling at over 20% discount to book value. very strong guy. morgan stanley selling at 30% discount to book value. another very strong buy. >> dick, always great to speak with you. dick bove of rafferty capital. bank of america, regents financial, morgan stanley among the ones he likes. guy adami -- >> u.s. bancorp. do i have to pick one of his? he's dressed in black for a reason. >> you're not picking one of his. >> no. doc's point, 52-week high. he's correct except the s&p is now effectively at an all-time high. so 52-week high is not that great, i guess. you look at u.s. bancorp, which is a bank that's on a four or

five-year high. i get there's no beta in usb. but if you want somewhere where i think you're going to be safe and i think you're going to get some appreciation, u.s. bancorp is where to be. >> mike kuo, what did you see in the options pits in terms of momentum for some of these banks that are at multiyear highs at this point? >> it's really interesting. we continue to see people pretty bullish. and i think dick pretty much hit the most important point. it used to be we thought some of these banks were reasonable values at some multiple of book value and now of course many of them are trading at a discount and even those that are trading pretty much spot on like jpmorgan still have a fantastic franchise. i think i would favor the names like jpmorgan, which have some exposure to both the capital markets and commercial banking rather than those just focused on the investment banking side like goldman and morgan. >> jeffries upgrading the social network giant to a buy rating saying its next billion-dollar business could drive the stock to rally by 30%. brian pitts, internet analyst at jeffries, joins us on the "fast" line with our call of the day.

brooirn, always great to speak with you. >> you too. thanks, melissa. >> you're all excited about these video ads which are going to roll out and yet facebook has been a laggard when you take a look at it versus its peers, versus the qs, versus the s&p 500. what's going on here? >> yeah, again, as you mentioned, we think video ads ray big opportunity and could be facebook's next billion-dollar business. the bottom line, i think when you look at it from an advertiser perspective, is advertisers want scale. clearly when they buy google they get scale. yet what they say to us is we want more than just google to buy from. they're fearful over time buying from one provider is going to be an issue for price'lling. so they want a number two, they want a number three to succeed, and we believe facebook's very well positioned to be that number two player. >> you say mobile ads as ramping quickly as sort of an example of how quickly video ads could ramp. and specifically you said it was zero dollars in the second quarter of 2012 and it reached 1.9 billion in revenues in 2013. is that the sort of trajectory we should be expecting here? >> yeah. i think it could be that

trajectory or even better. if you look at youtube from google as a comparison i think that's the best proxy. google bought youtube several years ago for literally zero revenue and now our estimates are about 4.5 billion in revenue for 2013 from youtube. so when you look at video both on desktop as well as on mobile, it's one of the best-performing ad formats not only from a volume perspective but also from a pricing perspective. >> and there have been all sorts of concerns lately and this is perhaps why the stock hasn't done so well since it reported its last earnings report about engagement. the first quarter level, though, you point out in your note is the highest ever with 60% of users logging in on a daily basis. is that enough at this point? don't we need to see some sort of a ramp sneer. >> yeah. the key everyone's focused on is also monthly average users. we did see a little bit of a you pullback in the first quarter, but that did not result in a bad number for engagement. what we have seen since then

through our proprietary analysis pulling data from the site is that it looks like m.a.u.s have stabilized. so i think that bodes well for engagement. and i think what facebook's trying to do with a lot of other products is to drive engagement. i think when they talk about spending 50% more year over year on opex i think it's really to get people more engaged and to throw more products -- to keep thaen gajt high and to accelerate it to your point. >> brian, thanks for your time. brian pitts of jeffries upgrading facebook in today's session. dr. j, if you put up a chart of facebook versus the qs in the past two weeks, past two months, facebook has been the clear laggard. would you be willing to say i'm going to buy this thing thinking it's going to revert? >> i believe that some smart people have probably already done that. i have not. i think there's been a stealth or maybe even not so stealth selling that's been going on here. i don't know who's been unwinding positions, but they've been sizable because you take a look at the volume traded to the

down sood, this one's continued to fall. got all the way down to roughly 23 bucks a share from close to 30. that was some extreme pressure. and i just haven't seen enough reason to get in other than the nice upgrade that we just talked about. >> you agree with that? because his case was pretty compelling in terms of user engagement, next billion-dollar business in the pipeline. >> right. but i mean, they flopped on a lot of other things, too, right? their home page, i don't even know anybody who uses that home page anymore. so the question you have with facebook is are they turning into a microsoft where they can't really execute? they goet all these great ideas but they can't execute it. for me it's a no touch. i like the chart in facebook, that it's come down. maybe guy adami can speak to it because he's the one who said it's going to get to 23 1/2 before you doing in. >> like a microsoft. that's an insult. >> not anymore. >> when you look at a decade-long slumber. good yeah, till the week after i sold it. i just think they talk about they want to be a strong number two. you can buy number one cheaper,

and it's doing a better job -- >> and hoping for it to be a stronger number two. >> soo so i'd rather be in google. >> let's get to the results of a pew bank survey that's just been released. kayla, which bank best serves its checking account customers? >> melissa, this is all about that fine print. you know, when you open a checking account. and pew charitable trust koemds through those disclosures for the 36 out of the 50 largest u.s. banks where that information was available on the web or by mail and you didn't have to go into a branch to get it. it ranked the banks by best practices, and here's what pew found. in evaluating the clear outlining of those fees and terms, dozens of banks checked out okay in that arena. interestingly, ally and charles schwab fared the best. there were more problems when pew looked at overdraft fees, evaluating issues like a cap on charges a bank allows per day, whether a bank has a cost threshold that triggers an overdraft so you're not buying a $3 cup of coffee and it costs you $38. ally and charles schwab again taking the lead there. bank of america, which actually overhauled its overdraft

practices years ago only scored a 1 out of 5 on best practices there. finally, in resolving disputes, if you get overcharged or if you have an issue, you find ally again at the top and bank of america toward the top too. the worst bank if you run into problems, wells fargo toward the bottom. the absolute worst, u.s. bank based in minneapolis. one surprising result, jpmorgan, a bank that touts its customer service, was in the mid toll low end of the pack in nearly every category. the big banks not performing as some of the more nimble peers. but melissa, i think the most interesting thing, ally, a bank that didn't exist until 2009 is best in class across the board in this study. >> ally. who knew? kala, thank you. coming up next, leading tech investor dan niles rips a page from his playbook and gives us his best ideas. in japan sell-off fears climb. we tackle the area of the market which has become too hot to handle. but first, find out how blackrock's chief investment strategist is prepping himself for this rising rate environment. jack rosenberg joins us live on the other side of this break. stay with us. we went out and asked people a simple question:

how old is the oldest person you've known?

we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

let's go to market flash, seema modi on a name moving right now. >> lionsgate handily beating street expectations. fourth quarter earnings of 51

cents on revenue of $786 million. earnings this year driven in part by the success of "hunger games" and "twilight" as well as drama series "mad men" which lionsgate also produces. you can see shares up about 4% after hours. melissa. >> thank you very much, seema. if it opens tomorrow at these levels, guy adami, this would be a fresh high for shares of lgf. >> i believe it will open there. i don't know what else we can say about lions gtd. this was a $6 stock. we stuck with michael burns. now almost a $30 stock. >> with a 93 p/e. >> and you know what? p/e was reason people were shooting it when it was 8 and 9 bucks if you recall. we had the sail arguments then. i'm not saying it's going to grow into that. clearly it's not. but the stock has been on fire. it's much more difficult at 30 than it was at 10. and you can't go buy it tomorrow to initiate a long position. but this is a stock that every pullback's been an opportunity and i still think we're that same mode. >> you know how much i love "hunger games." you do. >> yeah.

>> okay. lionsgate, 93 p/e, or disney with a 20 p/e. who would you rather? >> oh. >> well, here's the thing. i would go with disney but not because of the p/e. the problem is when you look at big p/es like this they're pricing in earnings growth. so it's almost an irrelevant measure at this point in time. but i will go with disney primarily just because they have so many different outlets, they have so much content. if lionsgate flops here or there, which anybody can have, the stock gets hurt given its run. so safetiwise, disney. like lionsgate a lot, but just to what b.k. says i agree. i would rather take time warner or disney or comcast or buying lionsgate here at this level. >> even though i think the new hunger games movie's going to be blockbuster. but that's november, right, melissa? >> right. november. >> she actually knows the date. november 7th. but i would say those others are all three better picks than lionsgate here. >> and moving on to our next trade here, speculation over fed

tapering is pushing up ten-year yields near 13-month highs. in a world flooded with easy money how should you invest in a rising rate environment? jeff rosenberg is the chief investment strategist for fixed income at black rorks the world's largest asset manager with nearly $4 trillion in assets under management. jeff, great to have you with us. >> good to be back. thanks for having me. >> the markets are freaking out. take a look at interest rates, mortgage rates, highest levels in more than a year. is this a sudden move in rates? is this a sudden move that we should be worried about in rates? >> well, maybe 50 basis points ago we should have been worried. but now the move has already happened. and where do we go from heresy think there's a bit of an overreaction going on. he makes one comment in the j.e.c. testimony about the pace of withdrawal and everybody freaks out. let's go back to the facts, which are growth and jobs and inflation. and neither of those are really pointing to a rapid withdrawal. so it's not the question of whether rates are going up. it's the pace of uncrease. i think the pace of increase has been large recently. i think it's very unlikely we're

going to maintain that pace of increase going forward. >> so we had ed yardeni on and he talked about the fed may peg interest ralts at some point in time. what's your view on that? >> what was the word he used? may what? >> peg interest rates. just like they did back in the '50s. so say 2 1/2%, not going any higher than that. do you think they do it? >> so the fed doesn't operate right now with the fixed peg. they certainly exercise a large degree of control. so it's like a band around interest rates. >> right. but he's talking about a specific fixed peg. >> no. >> not going to happen. >> we're not moving to that regime. but what we are in and what we've been in for a while is limiting the volatility because simply the fed can use communication if interest rates ever rose above what they deemed to be fundamentally justified 37 a simple communication of that would bring rates right back down. >> let me ask you something. you said it was just one statement that he made. but he is in tune with the markets. he knows how closely people watch what he says, how they parse through every word. if you were he and you had not

so far down the road wanted to pull it back a little, wouldn't you start with something like that? >> you might. but you might also start with it as opposed to in a q and a with it in a speech where you spent some time thinking about what you were going to say and there was a disconnect between the q & a and the speech and most importantly the fomc communication. that's the most likely place where you're going to see in the official communications to signal that. what you're going to need and what they've been telling to us look at all along, which is they will be responsive to the data. and if the data shows significant improvement in jobs and the biggest issue which there is none of at all, is is there any inflation? they're worried about too little inflation. and that's going to be really the constraints that are going to move the fed more rapidly and the market will respond. >> have we seen the lows in ten-year rates i? don't think we have. i think there's a chance we go

back to the 1 1/2s. but do you think here at 2 give and take have we put in the lows in terms of an interest rate and are we bucking against what potentially could be the high for the foreseeable future? >> i think it could go higher. our year-end forecast is 2.25. we still see room for higher interest rates. could you go lower and retest the lows? absolutely. if you had any one of a sort of risk off type of events or decrease in the data. i remember a few weeks ago we were just talking about the second quarter swoon, we were having the fourth year in a row of that. we seem to have dissipated that but we could be back in that environment and retest lows. we think we're in a range. certainly that rage may have pushed a little higher here, but we think around 2.25 for the year is still the right year jebd forecast. >> you like bank loans and securitized assets? >> securitized assets refers to the housing market recovery which is commercial real estate, residential real estate. those are still good plays for income in fixed income. and bank loans are still an attractive spot for income, taking a little less risk than you've seen in high yield bond

markets. >> jeff rossenberg, chief investment strategist for fixed income at blackrock. coming up next he says he saw it coming. steve roach, former morgan stanley asia executive chairman, tells us why sell-off fears are justified. plus why he thinks the u.s. could be next. and go on a shopping spree? what is really in store for the biggest wholesale club operator. answers in our street fight. that's more "fast" strat ahead. >> "fast money" means trading. everybody's got to bring their best information each and every night. the entire trading day is the preparation for the show that night. >> it's idea generation. it's all about giving you a framework for how to look at the market. as the world has changed our show has evolved. i am guy adami. i am "fast money." >> i am pete najarian. i am "fast money." >> are you "fast money"? go to the nbc universal store and open your "fast money" tee. run with the big dogs. looked away from my screen.

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athey wonder how much fastere justthis thing could go?be.

what if i took it down that hill? what if it weighed less or turned sharper? they know that things can always be better. we count ourselves among those people. introducing the quicker, sleeker, smarter, best civic si yet. made possible by honda. japan's market too hot to handle. sell-off fears are climbing. new data on wages and inflation is about two hours away from now. stephen roach, former executive chairman of morgan stanley asia is closely following the latest developments here. stephen, always great to speak

with you. >> great to talk to you, melissa. >> you are concerned about the sell-off. there are so many people in this trade it's often called the most crowded trade on wall street. how is this going to end? >> well, i worry that abe and kuroda are resorting to the bag of tricks that bernanke and the fed used, which is using financial engineering to jumpstart markets and lead to a weaker currency. and that cuts the edge on the imperative to do the real heavy lifting on fixing this uncompetitive growth structure in japan. and i've been worried about that from the start. and the market response has been amazingly powerful. but i think investors are now coming to believe that if there's no follow-through on the structural reform measures that this program is not going to get traction. >> hi.

it's brian kelly. so i'm curious, then, how is japan going to get low rates with inflation and control their bond market? how are they going to do that? >> well, brian, when you're going from deflation to inflation you're changing inflationary premium and the days of 30, 40, 50 basis point ten-year jgbs are about over. and that's particularly worrisome for a country like japan that's got sovereign debt to gdp in excess of 250%. how are they going to fund their debt load when they just move up their borrowing costs a fraction from where they are? it's a very difficult situation. >> mr. roach, i don't know if you have a view on this. it's guy. for the last 20 years i wonder if derivative books have been set up in such a way to take advantage of what had been basically zero interest rates?

and is there a complacency with certain banks and their drirtive positions? my question is is there a potential for derivative books to blow up based on what we're seeing here over the last couple weeks in japan? >> i don't know. that's an interesting question, guy. i don't know if the structure of these -- of these debts is so locked in that it's intolerant of anything that moves away from zero. but zero is not a sustainable policy rate for any central bank. it's not a sustainable market to determine long-term interest rate or a major economy, and it's only a question of when we break out of that zero trap and what the implications are. and japan has just been upping the ante for 20 years, taking their debt to gdp from 60 to 250. and the markets haven't called them on that. and now it looks like they're

starting to. >> stephen, i want to bring you to the next prediction that you have in terms of the u.s., and that is this will happen here in the united states. what will we see here? what will be the trigger for this to end badly? >> listen, japan is our laboratory. i mean, we are following them with a 10 to 15-year lag. they blew up their economy with two bubbles, property and equities. we blew up our economy with property and credit. we ended up infecting a much larger portion of our real economy than they did to theirs. and like japan we've moved to open-ended fiscal stimulus and very unconventional zero interest rate policy. the lessons of japan, which of course i teach at yale now, for the last three years, is that you're not going to fix your problems by just aggressive monetary easing.

you've got to tackle the structural agenda. japan started to do that in the late 1990s, and their recovery started to get traction. under koizumi. then they backed away from that. what are we doing on structural reforms in the united states? absolutely nothing. >> right. stephen, we're going to leave it there. thanks for your time. >> thank you. >> stephen roach, professor at yale university. okay. so we've been having a lot of people calling for this, saying japan has been our laboratory for quite some time. aren't things a little different this time around, seeing that everybody else around the world is engaging in the same easy monetary policy? >> the policy that japan has run for the last 20 years works up until the point that nobody wants to buy your bonds anymore. and they're playing an extremely dangerous game where they're saying we want our interest rates to go up a little bit but not too much. i mean, just remember, if japan's interest rates go on the ten-year up another 200 basis points, they cannot afford to pay their debt. and this is greece on steroids if it gets to that point. >> let's move on to a company

that is benefiting in fact from a weaker yen. sony. working with morgan stanley and citi regarding activist investor daniel loeb's proposals for the company. so mike, what did you see in the pits? >> it was interesting. we did see above average activity today. calls outpaused puts by about 5-1. in fact the 12 most active options in sony were all calls today. one of the ones i was taking a look at as the most active. the october 23s. looks like we had buyers of those paying about $1.40. these are people betting the stock could be above $24.40 by october expiration. that's less than five months away. that could represent an increase of more than 15% from where the stock is right now. >> let's move on to our next trade. top three trades and most notable moves of the session today. first up tesla continuing to power higher after announcing the expansion of its supercharger network, guy. and i can't in good faith tell people to go get long tesla hoping for the next ramp up. i understand how great a trading stock. what i'd rather you do is wait

for some blowoff top which i believe we will see in a 45 to 50 million share day. that will shake off this 45% short interest. and then if you want have the temerity, a word i love, play it from the short with puts. but to buy it here and pray i think you're flipping a coin. >> that 45, 50 million share day you think would really get -- how low do you need the short errant to go -- >> with a stock like that in the teens then i think you're safe. but you're talking close to 50%. >> that's a huge way from here. >> and i think it could happen on a day like that where the shorts just sort of throw in the towel. you'll get another round of short sellers but i think that short interest will come down. >> first solar shining today after an upgrade at goldman sachs. analysts there slapping a buy rating rating on the stock. doc. >> melissa, you had i believe the ceo of sun power on just over a week, maybe ten days ago. and i asked him specifically at that time, how big a deal was it for you that the commerce department slapped tariffs on

these guys? goldman recognizes it now. clearly the ceos of all these companies as well as the canadian companies like csiq recognize 30% to as much as 250%, that's the penalty for dumping those modules here. that's why these stocks have a lot more room to run. >> and last up, a big headache for big lots after the company misd on revenue and issued guidance that disappointed the street. b.k. >> this was down almost 11% at one point in time and they blamed it on the weather, saying people didn't buy their products. i don't know if it was too cold, too warm. i'm not sure how they're going to predict the weather going forward. and this is not the first time that they've missed earnings. so to me it looks like a structural change going on here. walmart's starting to eat their lunch. i think they've got big problems and it wouldn't surprise me to see this thing in the 20s in the next six months. >> ahead on "fast money" the drastic move one leader made in the business world to advance her career in publishing. find out about that decision that cost her a lot but paid off even more. but first the top trades in terks leading tech investor dan niles gives us his winning

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welcome back to "fast." we are live at the nasdaq marketsite here in steamy new york city. let's get another market flash. seema mody's back at headquarters. >> omnivision technology shares soaring after hours after they reported fourth quarter earnings that topped wall street consensus. revenue jumped 54% to $346 million. thanks to strong demand for its products. omnivision best known for its image sensors which are used in apple products. back to you, melissa. >> thanks, seema. doctor, you were watching this trade. >> yeah. and 8 million shorts, i'm watching that too because that's about ten days' worth of trading in this one. they have these hd chips like seema just mentioned, the image sensing chips. he that's going to be really big for whatever the next iphone iteration is and probably for a number of other camera makers -- or smartphone makers that use these chips for the cameras. >> all right. let's move on here to our next trade. as the pc business loses market share to tablets and smartphones, some chip stocks have taken a hit in secrecy but that's not stopping top tech fund manager dan niles from naming one chip stock as one of

his best ideas right now. dan joins us on the "fast" line to explain. dan, this is a chip stock that within the sector had been left pretty much for dead for some time. >> yeah. and it should have been. amd was a stock that went ahead and blew up in the middle of 2011 with manufacturing issues. they ended up with a new ceo. and their market share went from 20% to 15. they were basically on their way to bankruptcy at one point, it looked like, and they'd sort of gotten a new lease on life with the game platforms that are coming out. >> so with about a 50% rise in just the past month or so is that move already priced in? what is the catalyst? what are some of the areas of growth that you see triggering further appreciation in the shares? >> yeah, i mean, the big thing right now is if you look at amd in the past it was really a bet on the pc market. and their manufacturing was in global foundries. if you look at it going forward you're going to have both sony and microsoft after seven, eight

years of not having a new game platform. so the last time they had a game platform launch was before the first iphone came out, to give you an idea of how long that actually is. they're going to be both launching new platforms during the holiday season. and amd is powering the engines for both of those. so i think what you're going to see is a very powerful move where looking forward in time you can get up to 25% of amd's revenues by the time you get out to 2015, really being driven by sony and microsoft combined. and this is going to be pretty profitable business that you don't need to be worried about getting designed out. i mean, the last game consoles from these guys were seven or eight years ago. not like the pc business where every six months there's a new processor, new form factors. these consoles will be around for a while. and wall street's got these guys losing money until the first quarter of 2015. i think you're going to see this business from the game platforms

potentially being able to add 40 cents in earnings by the time it gets fully ramped up. so i don't think the move is in the stock yet. the stock was closer to eight bucks not that -- about a year and change ago before they ran into all these issues. and i don't see any reason why the stock can't double over the next couple of years from current levels. >> just quickly, what did you sell in order to put and in your portfolio? >> i'm sorry. what did you say? >> what did you sell if anything to put amd in your portfolio? >> we went ahead and just looked at this and said this is the best way to play a contrarian play on pcs because everybody still thinks of it as a pc company and in 24 months they won't. so that was more what ended up happening. and we used to be short this game. you know, six, nine months ago. so this has been a big change in view for us. >> all right, dan, always great to speak with you. thanks for your time. dan niles of alpha one. amd. you like this? >> jimmy cabello at goldman

sachs may 15th put a sell on this with a $2.50 price target. that's what makes markets. dan is one of the best in the space. it's had a tremendous run. personally i don't see it but we're going to see what's going to happen. it's had a great run. i'd rather look for a place to try to short it than get long here. >> coming up next, get a leg up at the open with our top three trades for tomorrow. but first, buy this stock in bulk. guy "the bull" adami and john "the bear" najarian tack on the largest warehouse club chain. much more "fast" straight ahead. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

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investors not buying shares of costco today in bulk, even though the retailer's earning beat the street. the nation's largest warehouse club chain is our street fight stock today. guy is the bull. jon is the bear. total 90 seconds to state both cases. so guy, kick it off. >> hey, mel, it's been a great stock. and obviously today the revenues weren't what the street was looking for but eps beat and what i thought was great about these guys, operating margins are continuing to improve. they're up to 3%. this time last year it was probably about 2.7%. that's a good thing. what does it mean? i think it means they're outwalmarting walmart and they outtarget target. plus they're doing really well internationally if you consider canada, mexico, and obviously taiwan areas of growth. they're doing really well there.

so i think although valuation's stretched, continues to be stretched, i think this is a stock that on a benign to a good tape can continue to go higher from here. >> guy had me on valuations stretched because yeah, they're almost double walmart. they have sam's clubs that they operate as well. but when you're at a 26 p/e versus 15, that's a little tough for me. also, the fees, they increase the member fees and they count that as revenue, of course, over at costco. well, that's a tough count because they're not increasing that fee again this year. they did. so that is going to be going forward a tough revenue number for them to overcome. then the expansion. the cost of expansion with all the competitive things going on in house, whether it's obviously big commercial spaces or residential. i think that's bad for these guys. it means their cost of building out more costcos has just gone up. >> they've gotten those on stack sxlz they've cleared those hurdles before. clearly that's going to be a bit of an obstacle, but they've done

it before and the stock has had -- this has not been a parabolic move in the stock. so although it's rallied significantly i think it's done so on a nice consistent course. i think it can continue to do so. >> karen finerman, what's the verdict? >> you know, i really wanted to love this one because it's such a great company. they do such a great job in operating and efficiency. but you know i'm a value girl. can't get on board. so this valuation. i've got to go with dr. jachlt. >> we want to know who you out there thought won our street fight. tweetd us @cnbcfastmoney using bull for guy or #bear for jon. we'll have the results at the end of the show. time now for our top three trades of tomorrow. here's what you should be watching at this point. american soefs clinical oncology kicks off its meeting tomorrow. what names could move on this event? doc, usually we have a lot of biotech names, small biotech names moving on this. >> exactly. it's all about cancer, clinical oncology and so forth kicking off with that. i'd watch bristol-myers. i'd watch celgene. i think those are stocks that are going to move based on this.

and then there's a couple of really cheap names that i think you can trade as well. those would be the ones that if you want to take a flyer on an industry that can really explode higher on good news and good presentations i think you buy the cheap ones that are under five bucks. >> next up, oil. keep an eye on brent especially. the wti. with opec members set to meet in vienna tomorrow. guy, what are you looking for? >> anytime you try to game opec it typically is a losing trade. i know very few people who can do it well. but there are stocks you can play in the energy space in the aggregate. one of the ones we mentioned the other day was apache, apa. and if you look, that stock to me has broken through a down trend the last year, year and a half. nice couple days. i think apache works here and i think the refiners still work here as well. those seem to still have momentum on their side. tso and valero. >> coming up next, one of the most powerful women in business reveals her best trade ever. plus the tweets making today's "fast money" cuts. we trade them live, next, as we come right back. tdd#: 1-800-345-2550 when i'm trading, i'm so into it,

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breaking the glass ceiling or tackling the wage gap. the challenges facing women at the top and those who hope to get there continue to be some of the most talked about issues of 2013. our own karen finerman delves deeper into the matter in her

new book "finerman's rules." she also did some on the ground research by recently interviewing powerful women from a wide array of industries including jonah coles, editor in chief of "cosmopolitan magazine." karen start the by asking her about her best trade ever. talk a listen. >> the best trade i ever made is going to sound completely counterintuitive. and it was literally halving the package that i was on to make a move to leave a very good job that i was on. but it wasn't in the direction that i wanted to go in. and i literally took a 50% cut in my benefits package and take-home salary. it was an investment i had to make. i had a hunch it would pay off, and i'm really glad it did. sometimes you just have to do it. it's not always about following the money. >> do you think of yourself as a woman in business or a person in business? >> i tend to think of myself now heading "cosmo" as a woman because the magazine is very

much about women in the world. when i started off as a news reporter in big british newspapers, i just thought of myself as a reporter. >> i know you're married and have children. was that a big consideration, where they would fit in to this career that you have? >> i was very surprised by the time i had my second child at how much it impacted my career. i do think the one thing that women don't talk enough about is that actually the higher you go, especially in corporate america, i think the easier it is. you have more control over your schedule. you earn more money. you have more support in terms of assistance and corporate support. and the hardest place is to be stuck in middle management, where you are responsible for a bottom line and also responsible to a boss who may or may not be monitoring your every move. >> oh. to see karen's full interview

with joanna coles log on to fastmoney.cnbc.com for the full thing. all right, karen so, tell us a little more about this book. how long have you been working on it? how did you get the inspiration? >> you know, i finally thought i think i kind of have something to say. i've learned a lot being on wall street for a long time. i've learned a lot being alive for a long time. and i felt like there is a message that's a little different for women than there is for men. so the title of the book "finerman's rules: secrets i'd only tell my daughters about business and life," is part of it is helping women get out of their own way. i think sometimes we're the obstacle. not always, but sometimes. and so i think i have something to say about how to help women do that, and i love this interview series because i get to hear what some of these incredibly successful women have done that worked and what didn't work. and that's been really helpful. you see joanna talking about taking a salary at half of what she was making.

she did that more than once, went down before she could go up. and now of course she runs cosmo. and you know, she's fantastic. >> quite a trajectory. and you talk to a lot of different women. who can we expect to hear from in the coming days? >> well, we have sally krawcheck because i'm a finance person, i wanted a woman in finance. kathy griffin bays think she's really interesting and i wanted someone in entertainment and she's sort of an unusual direction to go. we did susan feldman, who founded one king's lane, which has been -- >> love that stuff. >> -- extraordinarily successful. and then i have mona scott young, who is -- she represents a lot of rappers. she has a hip-hop reality show. so that's a different direction as well. >> that will be fantastic. tune in for that. and also check out the rest of the interview with joanna on cnbc.com. still to come, we reveal the street fight champ based on the twitter votes, and we've got your first moves tomorrow for the opening bell. back right after this.

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that makes it about a 21. that's the clarification there. final trade here. dr. j. >> clsm. that's my esco pick. >> sell short ewy korea. >> karen. >> live nation, lyv. >> guy. >> reading the books getting to make you money. i'm here to level the playing foer field for you. i promise you to find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm trying to make you money. my job not just to entertain you but to educate you, so call me at 1-800-743-cnbc. let me tell you about the rich. it turns out f. scott fits zwrerld fitzgerald was right.