soft shocks where it's preparing the market for its own bond buying bink. bond risks will reduces the duration in the bond portfolio is possibly by a short duration etf. >> that's it for us here. always a pleasure to have you along. >> pleasure to be here. fast money starts right now. >> i'm in new york city times square. i'm melissa lee. let's get straight to the story. fallest for you tonight. apple itunes radio are failing to wow at the developers

conference. yahoo! western digital all booking gains of more than 20% since the start of 2013. we ask the question tonight is old tech the new trade for 2013? do you stick with it? will it keep working? tim. >> first of all that has to be the explains for getting mr. robot oh. i don't think there's ever a time for that. microsoft is a name people have been watching. it's been running out of gas but what's going on with big old unsexy tech is you're trading at a big discount to the s&p. 20% discount to the s&p. they are paying at three plus dividend and these guys have a lot more cloud momentum in x box, more momentum in pc in terms of windows which has been so beaten down. this is about allocation. this is why there's more room to go. big companies, big market caps. i stay in this trade. >> you like the old and unsexy

tech names? >> that's how i roll. >> these things started working after most of these names reported disappointing q 1 and 2 guidance. these things have strong balance sheets good dividends but the trades were left for dead. a lot of these names, when you look at intel, microsoft, amat sis koe, yes, they are still cheap and still have a lot of circumstances that led people the get into this group but the trade may be up at this point. >> specific names in which the trade is up? >> listen the pc krchltc supply chain, are you kidding me? when you looked at tim cook and saw the market share growth that they have had in max versus pcs that is not likely to work its way in pcs favor.

mack is gaining steam. >> i'm old and sexy here. >> how humble. >> i think what happened is people looked for stocks that have underperformed and say where can we get value. they have gone to intel. we'll see na works. i don't think they will at these levels. the name that i think still works though is yahoo! trading around 26 and three quarters. i think you dump that into old tech and remember what jim chain oh, said a couple weeks ago. western dij and c gait were two of these favorites. you can't trade on the back of chain owes but you should have it in the back of your mind. those stocks should go down pretty quickly. the one that sticks out to me like a soar thumb is yahoo! >> these are very plain and simple, these are dividend and purchase stories. that's all there is to it.

nothing positive has gone on. >> microsoft is growing ten percent a year double what the s&p is doing. >> here's the thing. microsoft happens to be at a decent point in its cycle but look at things like sis koe, intel. it's not that exciting and doesn't justify outperformance versus the overall index. if you are looking for a cyclical play it's more interesting to be in the industrial, those that focus on america. the problem with teches is they have huge exposure around the world and growth rates in general aren't great. if you are just chasing it because of dividends look at the other sectors that chased up on dividends. it didn't end well and i don't think it will end well here if you are paying above market multiples for these names. >> i hear you if you think this is all these guys are doing. these guys are actually the ones that are able to do all that

great stuff but again grow earnings and be a place where you're getting them advancing into new business again. the cloud penetration for microsoft is far from insignificant. when people saying stocks like -- >> cloud revenue is growing at a rate that exceed the growths of their other business? >> yes. if you can look at structural the productivity gains in mechanic as labor forces come down, microsoft is a big part of that. i look at this and say this is a stock that has gone from 26 to 35 in the last month but this stock is flat in the last decade. >> tim makes great points about the cloud but my fear about the cloud is and you see it sometimes in reports, is it a space that's going to become a

commodity. as much as microsoft is buying into that you have to wonder -- >> every tech company we are all about the cloud and mobile is a huge opportunity for us. that's the ceo of every tech company. if they're all about the cloud how great of a business could that be. >> oracle has been a massive underperformer. all of these companies are up about 20%. >> you would rather oracle -- >> maybe about half of their sales from the u.s. half from the world. it's been an under performer, it's not a big yielder, only pays less than one percent. june 20 a lot of people are looking at that sis koe report from a couple weeks ago and saying this could be the next big cap tech catalyst. >> lets get straight to the stock of the day, apple hitting lows after the world conference. let's go to brian on the ground there. brian, great to see you.

>> thanks. >> they basically predicted everything you said in your note friday. tim cook called it the biggest change to mobile software since the iphone launch in 2007. is that true? >> we're calling it extreme makeover ios edition. we would definitely agree. they have a tremendous amount of upgrades. it was frankly a dated inter face. they basically brought it up to android standards from a look and feel standard. a lot of trance loosesy, multi-layering. got rid of the stitching. >> that sounds lame. if you are saying they're updating it to get it back up to android levels that's chasing somebody who may be perceived as eating their lunch. >> the only updates we got from a revenue standpoint was a mack

book error. six% of the gross profits. from a revenue standpoint relatively disappoint, having said that expectations were low. i think that the upgrade to the operating system is going to be paramount in terms of the importance of maintaining the stickiness of the ecosystem. 85% of the companies gross profit is going to go through refreshes and from a hardware standpoint it will be on the new software and we think the product is going to be tremendous. >> i'm trying to figure out whether you're bullish or bearish. i'm bullish on the services business and the ecosystem. people haven't paid enough attention to the fact that 500 million users are spending millions of dollars a year. this operating system is important but it sounds like you're saying this isn't really enough. >> well we're definitely bullish. we have a 600 target. i would say that today is not

going to move the needle from a revenue standpoint or a profitability standpoint. at the end of the day this company generates about 180 billion dollars a year a phenomenal amount of top line. nobody else comes close to it. for example ibm and hp do 110. we saw that innovation is alive and well from a operating system perspective at apple and that's going to maintain the user stickiness. >> how can you say that innovation is alive and well frmth i watched that streaming video, man. it was like putting lipstick on a pig. i was nodding off. they're doing things that have been going on in the eeky system for years now. they are chasing and being defensive and i got to tell you when you look at tim cook's performance and johnny doesn't want to take the stage but he'll do saucy video there, i think that the team that they have in place, they are going to be able

to maintain this existing footprint but it is nothing short of disappointing to me. let me tell you something, i've had all six iphones, man. >> let me ask you a quick question. i know horn cash buy back dividend all catalysts seem to be positive for them and now we're nine months later. september is a long time ago the stock was north of 700. what's the problem with the stocks that's what the folks at home want to know. >> i think the market was down today at the close and so i don't think people were disappointed. i don't think it was obviously a lot of catalyst to move the stock higher. the key is over the next six to nine months can they create an iphone six five inch device to penetrate the international markets and bring the groepth rates up. if they can do that the stock is

going to be well into the 500, probably approaching 600. that's the key and obviously that wasn't what we were here for today. >> brian, great to speak with you. thanks for your time. brian marshall of isi joining us from the developers conference. brian mentioned being down 60 or 70. that's not the picture if you look at the chart. apple was higher more than a person in the day and finished lower. >> this has never been a catalyst for traders. it's much more interesting for the tech media but for some reason the wall street media went nuts this year. if you look at the last five years' worth of progress in the stock of 30 days following these conferences it's down .97%. when you ask what's wrong with the stock it's simple. out of the last four quarters they have missed twice. it's not consistent and not the same level of growth that there used to be so people have gotten

accustomed to that and that's where the stock trades. >> we're watching the shares of lululemon. the retailer announcing that christine day will be retiring and that is moving the stock right now. courtney reagan has been listening to the conference call. any details? . moments ago one of the analysts said christine, what are your plans going forward and she said, almost it's business as usual for me. i'm planning on coming to work and focusing on bringing lululemon string results through the end of the year. at least from what she said it doesn't sound like she necessarily has not job lined up just toeing the company line and saying we've done great things. it's time for a new leader to come in. wall street disagreeing, those shares after hours taking a plunge after the company beat on every metric for this first quarter. looking forward for the second quarter topping con kensz

estimate she tried to say for both eps and revenue. really the reaction is all in the announcement and surprise departure of christine day. she's only 51 and been the company for five and a half mother. >> keep us updated. we'll get details later on in the show. if christine day is saying it's time for a successor to step in that successor should have been in the cards i would think. it wouldn't be a search for a successor. >> it seems odd. the stock is down, what ten percent? >> 13%. >> it's due to the transparency -- >> guys guys -- >> that's exactly the point. it's a buying opportunity. >> 65% of the shares are owned by the top five shareholders. with the stock down ten percent

it's an interesting knee jerk reaction about her departure. normally you would think there was pressure because of something going on there. >> if she's stepping down she's allowed to say i'm retired and resigning. if she's pushed out she can jump the gun and get out of there with the news before they force her to kowtow with a new replacement. i'm not surprise by this move. >> meantime coming up shares of electronic arts up more than 59% since the start of 2013. will the much hyped star wars games hype the company up higher. mcdonald's seems strong. same store sales numbers in the past month in the revamped menu could be a reason why. one trader says midnight mcmuffins aren't enough to convince him to buy the stock. it is a fight, golden arches

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>> today marks the kickoff to the annual electronic ex poe which is quickly becoming the place to showcase the latest and

greatest consoles and games. joining us is current coo peter moore. peter, pleasure to speak to you. >> thank you melissa. >> in terms of the pipeline when should we expect a star wars game to hit store shelves? >> well we haven't announced that. as you can imagine we're excited about the movie slate that disney has announced and will try and be in lock step with their slate and make sure that we try and get our games around that. no announcement on the dates. >> that's why i asked you. once the movie hits the theaters that's when the game is going to be out? >> yeah. in our industry what we try and do is look where the excitement for a piece of property obviously in this star we're talking about star wars.

while these games are not movie based games they're based on the intellectual property we recognize the fact that it bee hooufs us to ship it at the same time. you can look for announcements in the next month or so. >> your latest quarter was reported and the stock was up 15%, a 52 week high on the news. digital revenues were up 40% year on year in the latest quarter. can we discern that consoles and the refresh cycle that's less important to your business with digital revenues growing at such a fast clip? >> not really. the console business is important. a lot of those digital revenues rely on console sales. they come on top of a packaged goods product. best examples are battle field franchises. they have hundreds of millions of dollars attached to the

console sales. we feel we are a well balanced company. our trading is about $1.7 billion. it's mobile. it's free to play. but we think that this nice blend that we've got now despite the excitement about the console shipping puts us in great position for the future. >> x one was tautd was a catalyst for you as a price that was announced today at $499 a console. do you see that as a catalyst? is there an appetite for such a high priced high end console? >> i think so when you have seen over the last couple of weeks the announcement that microsoft has made about the functionality of the console, the amount of games that we saw at our press conference this afternoon. we're going to hear from play station about the price point, the fact that it's shipping this year and a great slate of games. it all comes together well for

our industry for what should be an incredibly exciting and unique november if that's when sony ships as well. >> thanks for your time. peter moore, the coo of electronic arts. you think digital you think something like a game stop would be the equivalent of a barnes and noble? >> the stock has unbelievable. are the space had a rough day today. i got to tell you, valuation isn't ridiculous in the stock. with this stock down 4% today, if you are looking for one of these names on a short squeeze, game stop might be one of them. >> time for top three trades for today. first amazon expanding the fresh grocery delivery service to a wider area. current members will receive $35 in groceries if they are a

member of amazon prime. >> people think we talk about the stock up much which i don't think we do but here's a stock, this is a company whose operating margins have been improving over the last couple of quarters. although valuation has been stretched, the stock looks interesting. it has to get above 285. it has done everything right in terms of the stock. >> barrens says the electric car maker stock could be up as little as 50 bucks a share. >> long term everyone agrees this has the possibly to be a huge winner. it has certainly gotten ahead of itself fundamentally. this stock trades on something simple. everyone agrees it's an incredible story and extensive so short interest is the key. tomorrow we get the newest update on the short interest. it's notable that that number

dropped from 34 million shares to 23 million shares. you don't want to see another drop if you are long. you want the shorts in here because they become forced buyers. that's really in the short term what's going to move this up or down. >> finally a trade update from the one and only region is fill bin. back in february he was talking about one of his favorite stocks. do we have that sound bite? >> i guess we don't. big fan of micron hitting fresh all time highs today. this afternoon he wrote me a letter saying, dear melissa, i thought about calling you on your show friday to let you know about micron technology. sure enough tu knew all about it. it's just the beginning. he said he's still in the stock. >> he's been hanging on this

one. consensus estimates have gotten low. you've seen a back stop on memory. memory is not -- we have been talking about a sexy part of tech. absolutely not. there has been a better call in terms of cap. and micron with an 86 rsi after this move i'm not sure i'm piling in here regis, you sit back and take profits. >> part of the note we cut out was regis said he wants to spend his days trying to make tim and guy rich. >> he's going to need a lot of time for that. i'm ready any time. >> i'll hold regis' bags for him. >> anything he does turns to gold. >> exactly. still ahead the scoop on the biggest stories sure to move the needle in tomorrow's trade, social media, lockups an much more. the big time success in china, the highest returning china fund of 2012 and says for 13 he's

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♪ ♪ >> welcome back to fast money. i'm josh lipton. some news on ka rin thee yan college. saying he received a subpoena and are conducting an investigation of the company saying subpoena request documents related to student information and recruitment, attendance, placement, defaults on federal loans, the company saying it intends to cooperate

with the fcc in the investigation. >> u.s. customers are loving mcdonald's. how should you trade? we've got 90 seconds total. guy, kick it off. >> i'm going to kick it off. thanks for having me. i got burger king on the brain. still trades to the discount to other mature companies like burger king wendy and it's cheap on valuation against its peers. europe has been the bug aboo for these guys but they're actually holding their own in europe. they're not knocking the cover but they're doing well. donald thomas the ceo has been there since july. the stocks started going north when jim announced he was leaving the company.

mr. thomas son has his sea legs and the stock is purchasing as well. every selloff has been a huge opportunity in this stock. i still think it's going to be. 103 the all time high. i think we go north of that. >> i don't think this stock technically is anywhere it can go. more importantly guy talked about, it's extensive to itself. it's 17 and a half times current ruffle 10% extensive to itself. global store sales came in at 2.6 but this was actually not a great outcome on a very low bar in a fast food space that's struggling quite a bit. they did not grow in asia. the bird flu are big issues but other markets are not giving them the gus toe that these guys have gotten. mr. skinner did a great job getting out of the competition. they're running into a lot of competition. >> the bird flu was a big deal but they're past that as well. they're going to get better

apma. if the tape baifs itself i think mcdonald's goes -- >> did you not hear the buzzer here guys? hello, thank you. [ buzzer ] >> in terms of being cheap in compared to itself but if you look at the sector if you want to be in this space -- >> extensive to itself. >> yes. if you want to be in this space that is going to be one of the least extensive names in the space. if you look at yum or wend ees or burger king. >> it's a crowded space getting more crowded. especially domestically when you hear about smash burgers and other stuff coming up -- >> what? >> there are a lot of places coming online here. the best point is the technicals thing. this broke down weeks ago and it's going to have a lot of resist ens. >> that's a golden arches double

top if you look at the chart. >> i've lost every one for the last two. i should stop. >> don't be a soar loser. we want to know who you thought won. tweet us. we have the results at the end of the show. meantime let's get to action here and see how traders are playing mksds from the option side. >> we saw big call volume. the name was about three percent cheaper at the end of the day. the most active call were the june, 100 calls. about 6,000 traded during the middle of the day, a bunch traded for right at a dollar even. that means that the call sellers think that mcdonald's -- they think it's not going to get above 101 even by the june expiration. i think there are lots of reasons to agree with them. the trade has been mushy as tim and dan pointed out.

in addition f the 50 day moving average has been critical for mcdonald's. right now that's 100.64 another reason to think it's not going to get up to 101 break even. >> thank you. >> i am grabbing midnight mcmuffins these days. >> are you? >> as many as i can get. >> good to know. options action every friday 5:30 p.m. eastern time. lululemon, a good quarter over all but christine day is stepping down. investors are selling the stock down 15%. lulu hit a 52 week high today. whether or not this is a buying opportunity we'll ask that straight ahead. coming up next why the yen is heading to 150 sooner than you think. share holgsds will be able to unload 61 million of the company's shares for the first time tomorrow. we'll tell you about it later

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>> welcome back to fast money. we are live with the nasdaq market. fast forward to the top market events of tomorrow. first up facebook getting an upgrade ahead of meeting tomorrow. >> here's the thing with facebook. there are no sellers left at 22 $23. that could change on a big negative news report. in the absence of that no one is willing to part with their shares. these you upgrades and we've seen a slew of them in the last couple of weeks, the enthusiasm sfads over a day or two. the stock is in no man's land until something changes. i don't know what this is so i would not be inclined to chase the upgrade. >> solar city tomorrow marks a big expiration for the solar panel designer which began trading back in 2012. stan says the float is going to

increase. >> i think the shares outstanding right now are 70. the float is 24 million. this is a situation where the short interest in the name right now is 46%. this should alleviate a lot of that here. i think these shares get dye jested. the stock comes in anticipating the lockup. this story is not done because e lan musk is not done. big holders come in on this and step up and buy shares. >> finally japan after weeks of heavy selling is today's bounce in the knee k? let's bring in the editor of the guardman letter. always a pleasure to speak with you. >> always a pleasure to be spoken to. >> what time frame are we talking about. >> several years. it's not going to happen by next tuesday or this year or next year. i've been around a long while.

i can remember back in the 70s trading the yen at 265 or 285 to the dollar. for me to imagine dollar yen making its way back to 125 and 150 and beyond it's not that difficult an imaginative leap. they have no choice. japan has demographic problems that are only trumped by monitorist activity by a monitorist decision made by the bank of jap. the yen has to go lower and the dollar has to go higher. it will take months if not years to do it. be patient. >> i believe there's resolve in japan to get this in a place where you get inflation. last night printed 4.1. this is the strongest economy and one of the strongest in the

world. i guess the question is can they hold this growth and at 4% are they going to keep their foot on the neck of the yen? >> i honestly do think they keep their foot on the neck of the yen. it was a surprisingly strong number from gpd but they need that kind of continuation, numbers like that for years in the future. the only way they're going to get it is through depreciation. the last two weeks have not been fun if you were bearish of the yen but after the correction that we have had, they have taken a lot of people out of their positions. your point is well taken but the trend is clearly to a weaker yen at this point. until that trend is reversed i'm going to hold my position which i have had for a long period of time. >> dennis thank you. >> always good to be here. see you wednesday. >> see you wednesdays. tim, it was the biggest jump in

two years. >> if we had taken 23% it was time to start buying it. you pile back into this trade. >> you see new highs? >> yes. >> still to come our own dr. j saw big time bearish options in the eem. how is the play in the action now? >> later why guy might not be smiling about his call on gm. stick around. 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 tha 8 ♪ ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ ♪

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>> welcome back. last week dr. j spotted big time bear option and explainsed how he was trading along. >> they stayed in the game on the short side so i set myself up with the short spread on the put side being short the 38 and a half puts. >> john joins us on the fast line with an update. what are you doing now? >> they were active but they were doing both stock and optioned today. they traded all the way out to september and the eem is down.

in fact it hit the lowest level of the year today. the people who have been right continue to be right about the short trade. seems to me that somehow around 3890 or so is probably where this trade starts getting unwound. we'll see if they start taking profits. thus far they have added to profits instead of taking profits. i went to them and stayed with shorts. >> doc we're going to leave it there. the connection is shaky. thanks for calling in. meantime moving on economic growth slowing in china. while most investors in stocks are losing money, our next guest china fund is up 7% to date. pour foet yoe manager of the china capital fund. it was the highest returning china fund last year. >> thank you.

>> consumer directions naers 24 energy, 27%. what's the overall theme when we look at your portfolio and your beliefs in the economy. >> there's a bull market in the private sector in china and that's where we focus. the economy is rebalancing. the private sector is driving growth increasingly. what we're seeing is the cost of capital for the private sectors coming lower where as the cost of capital is going higher for the soe. there's a big trend and that's where we're going to focus our portfolio and the consumer is a big part of that. >> are you surprised that the government hasn't been more stim la tif here with inflation of 2.1. industrial production numbers over the weekend, we're back to may 09 levels on ip. that's worrying for an economy that i believe is diversifying

to more of a consumption economy. to me it appears distressing. >> things are slow. i'm not all that surprised. we haven't seen fiscal or monetary stimulus. messages out of beijing are focused on avoiding these boosts. it's painful for some sectors, like the soes, steel r potential big problem with steel. however, they're patient. they're in the process of developing long term social and economic reforms. that's going to be social for the next three to five years in china. >> eric it seems like most areas within asset management mutual funds, you see a trend of investors going toward indexes. in your case it looks like you have a small amount of holdings more concentrated in the index, probably the secret to your

success. you're also underweight banks so does emerging impact invest lend itself to active management versus other areas? is that why you seem to be crushing the ind seize right now? >> as i mentioned, the soes have dominated the economy in the last ten or 15 years. >> petro china, china mobile ten years ago, 12 years ago had very few subscribers and now it has 7 million. >> you're under weighting those. >> many are generating cash but they're not as dynamic as these growth sectors. the bench marks are dominated by the soes. they can do something more clever than a generic portfolio. >> although slowing china is a great story, what derails it?

>> some issues external that can hurt them. europe is a recession so the trade account has been weak. i'm looking at in china if we don't see these economic reforms that i mentioned earlier investors may lose confidence that we get to the other side. i am fairly confident that those reforms will come so i think there's a positive outlook. there are things to do in china. it's an $8.2 trillion economy. >> eric thank you for your time. let's talk about the holdings in eric's fund. tim, have you held any of these names, do you like these names here? >> ultimately reliance on the consumer and consumption and that domestic story is how you win. the dem traffics in china which are probably not as dpood as people think they are are going to be the place to win.

it's not only a black hole but you're not as close to the company. i'm sure eric will see these companies and understand where their growth is and you can never do that with big companies in china. the stock component is really what it's all the about. emerging markets look like they have been destroyed and some have been but on the whole there have been fantastic returns. >> coming up at the top of the hour take the court with kramer tonight. plus an exclusive with mobile marketing firm marekto. dana weighs in on the soon to be departure of christine day, whether or not there is a buying opportunity for you right now. that's next. with one login... to easily move my money when i need to. plus, when i call my local scottrade office i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me.

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>> big story, lululemon reporting better than expected earnings and christine day will retirement she'll stay on until a successor is named. dana joins us now on the fast line with her take. dana, if i'm an investor and wanted to get into lululemon, is this the chance i've been waiting for? >> yes, it is. lululemon, it's interesting, it

is unfortunate with christine day. she built up a terrific franchise, grown the company. the next phase is a bigger company, look at the store sales, it came in pretty much as expected but the guidance for the second quarter sales comes in better than expected and still shows that you do have a cult following of this brand. >> why are you giving the benefit of the doubt to a successor that has yet to be named? >> when you think of this business you had the first ceo who was there, bob mears who had experience in being a public company. the second ceo in christine day had wonderful experience in building brands and can attract other talent. when you need next as you're becoming a bigger company, operational issues and think of what they're searching for. they are looking for a supply chain, another merchant. in order to grow this company over the next five to ten years,

you need a sophisticated operational skill set to do this smoothly, especially with the multiple this the stock trades at. >> given all those points is it set up for the potential of lulu being an acquisition target here. when you talk about the management that they're going to need to really go global there a better player that could take this brand under their wing? >> it's all about valuation, whatever valuation is appealing and how strategic it is for another potential acquirer -- >> who could buy it? >> years ago it was about nike wanting to buy lululemon but they waited too long. nike has had trouble with there are am significances. ppr has been issue looking to enhance their outdoor were criteria. you have a lot of outdoor players out there and a brand like lululemon for all intents

and purposes ksh bigger three years from now than it is today. >> dana thank you for your analysis tonight. >> this is a job for ron johnson i think. >> no more coupons, sales? >> take us to the next level. >> you initially said this would be your buying opportunity but we don't know who is going to take over. >> neither does dana but you heard what she said. it almost doesn't matter. >> which scarce me. wouldn't that scare you? >> i'm scared all the time. i live scared. it's a good way to be. >> frayedy cat. >> there it is. >> first move tomorrow when we come back. stay tuned. so you can use ink for all business purchases. so you can capture your receipts,

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today. >> thanks so much for watching. see you tomorrow. on the to have time report. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job is not just to entertain you but to teach and educate you. so call me at 1-800-743-cnbc. does the business media overemphasize the negatives and underestimate the positives? hey, i've heard this criticism many a time.