for the dow jones industrial average, our eighth best day of the year. the s&p up almost a percent, the nasdaq up 28 even though apple closed below $400 for the first time since april 22nd. that does it for "closing bell," thanks for joining us and thank you, mandy. >> thank you as always, as well, "fast money" starts right now. stay tuned. new york city's time square scott wapner, melissa's off tonight. josh brown and mike khou, let's get straight to the top story. gaming the market the bulls are gaining some momentum as the s&p rallies for a third day. and all these worries about the tape are killing the rally. feels like a distant memory. is now the time to play offense or stick with defense with your portfolio? let's take it right to the

traders. josh brown what do you do here? >> the best thing you can say for the bulls is we reclaim 1,600. we retraced half of last thursday's axe murdering in the dow. we got turned away at a short-term moving average. the 20-day is now downward sloping. that's what the short-term momentum guys are looking at. we didn't get above. what i would tell you is until we get two weeks consecutive closes above 1,600 on healthy advance decline, we have to assume we're in the midst of this corrective action. i know it's counterintuitive to look at the dow up 170 points and see what do you mean correction, that's what you see. you see down down down one big up day, everyone's heart gets broken all over again. i have no idea if that's the case. but that will be what we'll judge it by. i think it's too early to tell. >> is it time to buy the market? >> i did nibble around the edges, but i do believe these bounce levels we could probably rally in the s&p and still have it be a sell.

i bought some google i bought a couple of names, but staying along my longer term positions. >> dr. jay? >> i did similar to my friend mr. grasso here. i was nibbling around the edges. i was buying today and selling puts which obligates me to buy at a lower level if we get there. i was going after the miners because i don't think numont is going down another 6%. i was going after gg in other words, a lot of the gold miners agq, the ultra silver play i was going after that. and because we happen to have a little something going on upstairs scott. i was actually nibbling -- >> it sounds like you guys karen, i'd love your opinion too, it sounds like you're a little afraid of missing what could be a little bit of a good bounce here after there was so much fear in the air last week. now all of a sudden the tone seems to have changed. >> i don't think there's any fear of missing a bounce. if you look at the trend, if you

look -- >> these guys said they're nibbling. last week everybody was running for the hills, okay that's all i'm saying. >> yeah but we also did feel that the fed was going to be a sell the news event. coming out of it it turned out to be a sell the news event, but now we want to -- >> an overreact to the news event. >> the nasdaq advance decline was 50/50. flip a coin. i don't think that everyone was so worried about missing a bounce just yet. didn't feel that way today. >> i don't know what to make of it. and so i have great confidence that i am never going to pick the bottom. i know that for sure. so i can't really worry about where it trades, you know, in the shorter term. i just got to try to find things i know i understand their business, i understand the valuation. could it move, of course? that would leave me as a buyer when things are rockier and a seller of -- we talk about seller -- >> how about, karen, the end of the quarter. obviously there's stuff on people's sheets i picked one of the weakest things of course gold to go after because those

are the things people least want on their sheets. >> right, but you might see -- you might see to your point about missing something. you might see that end of quarter. you might see a little bit of window dressing go into end of quarter and that's what we're staying long and still nibbling around the edges to catch that and maybe the next week or so we revisit those. >> the difficulty is as you well know from watching the market action all of you watching at home or wherever you are at the gym or wherever the volatility is likely to stay. another triple digit move for the dow. and i don't know what the count is at this point. whether it's 13 of the last 17 14 of the past 18 or whatever it is. but we've had triple digit moves almost every day on the dow. >> and they're not just whip saws they're headline driven whip saws. do you have a crystal ball. do you know when the next fed speaker is going to say the thing the market likes? i've got to tell you, there are seven fed addresses going on this week. who knows, today's was accepted by the markets. will the next one be? there's no way to determine that. i think depending on your time

frame, you may not need to worry about whether or not you catch the first bounce the second bounce. >> let's talk about another interesting topic that i'm sure will have some interesting opinions on right here on the desk. that being gold as doc was talking about and apple, as well. the two former safe haven plays that aren't. apple now closing at the lowest level since april 19th gold is hitting a three-year low in today's session. guys since what october 1st you know apple is down like 43%, gold is down almost 35%. apple didn't participate at all today in this nice rally. >> i'm long apple, very disappointing. sure. >> the difference is apple's pu ratio got lower, so valuation wise, it's more attractive. apple's dividend percentage, what they're paying out has gone up. can't really say the same thing for a boom bust commodity. if you had the choice right now, whether you buy apple or gold, grasso, which one is it? >> i'm long gdx.

my longs have gotten higher and my actual gold position the gdx exposure obviously got devastated. but a very small position in my portfolio. i'm holding on to it. there's always ha place for gold in your portfolio. and i think to john's point, once gold gets overdone and it has been overdone. once it pops the miners will pop more. >> there's always a place for gold in your portfolio, you're no longer sure there's a place for apple in your portfolio? >> i think apple -- >> that's an interesting story in and of itself. >> for me i think apple is more of a trading vehicle. gold, i don't like to trade around it because to karen's point, i have no clue what's going to change with the gold market. i do know that i want to be able to say i'm long it for that pop in the miners when they rally 25% if we come out of this down trend. >> you and i were out there at the developers conference. we know that people were not satisfied, were not happy unless they were just the absolute apple devotees they were not happy with what they heard in that conference. there was nothing in the way of a new product that's going to be

in our hands by -- well at least september. and now we've got best buy, we've got walmart, we've got at&t, all cutting prices on this on the iphone 5. some of them will even give you an iphone 5 if you trade in your 4 or 4s. so with the prices coming down dramatically, they're down to $99, i think, if you sign a two-year deal with this. that's telling you a lot that they're trying to make some numbers through the next three months when they're not going to have a new product. >> you know what's interesting -- >> hold your thought one second. mikey mikey, apple or gold? >> i'd have to say apple. first of all, i've never been a gold bug. but if anybody wants to know how bad it can be take a look at the late '70s through 2000 when gold did a round trip from sub300 to well over 800 and back again and it was down a whole lot more than 70%. it's gone down a lot. could it go down a lot more? i think the answer to that is yes. at least with apple, you do have a company that's generating

significant profits, free cash flow and has a bucket of cash at the end of the rainbow. still, i think, nobody's optimistic about what's in the pipeline. should a company trade at a high multiple? probably. >> i didn't get karen's full opinion either. i know you said you're long apple. >> i wouldn't touch gold. i don't know what to make. i find it odd when they come out with valuation. i wonder based on what. i never get that i'm a value girl. apple, but obviously has not worked this year, this quarter. for a while. >> let's bring in a man all too familiar with the pain trade in the metals. joe foster runs the investors gold fund. it invests specifically in metals and mining. the fund is down 47% year-to-date. sorry for the pain the fund has been feeling. if you're a fund manager that specializes in gold you're probably bullish gold, but why should you be right now?

>> gold reacts to financial stress and the markets are convinced there's no financial stress. they're convinced the fed will taper, eventually reduce their qe and things will be fine. despite that i think we still live in an environment where acute financial stress could come back into the markets at any time. and that's why we recommend or encourage people to have some sort of allocation to gold if and when that happens. >> what one of the issues you know you have is i hear more people talking about a deflationary environment rather than an inflationary environment, and that's negative for gold, right? >> we were in a deflationary credit contraction after the credit crisis in 2008 and gold was in a bull market. so the way the authorities react to a true deflation is to you know print money, you know reduce real rates, those are things that gold reacts to. >> joe, don't you think, though gold can really be -- the holder

base and the belief base can be by bifurcated, that everyone's been shrieking about since '09 that never materialized, now the fed is exiting if you believe what they say. and the other half is thinking about this stress. they bought yen, they bought treasuries, anything but gold. can we believe in either bull case given the price action in front of us? and how? >> the market is bifurcated recently. and we've seen after the gold collapse in april, we saw just unprecedented physical demand from around the world. at the same time institutions were liquidating gold in the etfs, et cetera. >> there's a financial asset now you're saying. it's basically a financial asset at this point? >> yes. >> let me ask you, you probably have a great insight into the retail investor's psychye and

flow of funds. what's your sense about whether you've seen that start to taper off or do you see more retail fear out there. what are you seeing? >> i think there's a lot of fear in the market right now. the people still in gold are wondering. i view what we're seeing right now is capitulation in this market for gold equities and gold itself. i think there's genuine fear amongst the retail crowd and others, as well. and they want to see a sign that things are turning around on the gold market. and so far, we haven't seen that. >> absent financial stress in your words or some sort of scary catalyst if you will to push money into gold or the miners. what else is there out there if that doesn't materialize? i mean i've got guys taking shots on some of the miners right now. but absent that big event that you're talking about, why put money there?

>> well so no if you believe in the normalization scenario that it will be successful over the next you know two, three, five years however long it takes then no gold's not the place to be. gold is again, i mean we can sit here and dream up you know, europe hasn't solved its sovereign debt problems. look at what japan is doing to stimulate its economy. we could think of a lot of things to get this dpoeld market going again. >> at the end of the day, though you own the equities and they're going to act like equities if equities get routed because of a european -- do you think the gold miner stocks will diverge from the rest of the stock market because gold catches a bit on financial stress? you know that's not what's been happening in the last few -- >> well, at the end of the day -- in the gold stocks ultimately follow gold. that's what their valuations are linked to. so while, yes, they can in a market selloff, they can sell

off with a general market. but if the gold price holds in there or increases, you know you wait for that selloff and that's the best time to be buying these gold stocks is when you see that divergence and then you step in and buy these things. >> joe thanks for coming in. >> thank you. >> thank you. >> appreciate it. we'll see what happens in the gold market. that's for certain. before we head to break, let's get a check on the after hours movers. clearwire is trading lower on news dish network is dropping the bid. they reversed the recommendation of a deal with dish in favor of a higher offer from sprint. and up next pandora seeing big gains. shares almost doubling so far this year. is there still room to run? and later, could the market have found its bottom? dennis gartman thinks so. how he's playing the rally after finally getting back into stocks. that is a little bit later on. 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

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welcome back to "fast money." i'm kayla tausche from market flash desk. we're looking at market movers and looking at bed, bath & beyond. eps met estimates at 93 cents a share. revenue slightly higher than expected. profit was a bit lower than a year ago. and expenses did rise slightly, but the stock is up because the company's guidance for the next

quarter was raised slightly and same store sales were 3.4% that's better than 3% from a year ago. there's also an expectation that recovery in housing will help bed, bath & beyond. a good day for shareholders in that stock today. >> thanks. who's trading bed, bath & beyond? >> i'm not, but i thought it was overdone last week when they said restoration hardware. it's bad for william sonoma it's bad for bed, bath & beyond. you're picking a fight with somebody who is really ready for you when you're going after them. obviously this report says exactly that. >> grasso you want to touch this one? going back to amazon? >> i know. >> is that where you're going? >> that's where it is. that's our history. best buy or bed, bath & beyond doesn't matter to me. i think you have to use 68 as ultimate stop. >> let's do our top three trades. the old tech name is hosting its

build developers conference in addressing numerous consumer complaints about the windows 8 platform. should note the stock is up 30% year-to-date. mike? >> yeah so some of those concerns in windows 8.1 addressed bringing back the start button. anybody used to the windows platform and used the new windows 8 didn't know what they were getting. they're getting a facebook app, which to me like tieing two rocks together to see if they float. that's not too exciting. facebook has been dead money, as well. and they announced two new phones and a joint venture. but overall i was partly excited -- >> you seems so underwelmed. doc is ready to come upstairs and take you outside. >> i think it's the solar city guys doing it. i was getting a buzzing the whole time you were talking, mike. i was wondering if anybody else was. >> you like microsoft. >> i love microsoft. in fact i had -- >> mike is like ho hum. >> i think that's the story. this thing isn't really growing at this point.

there's nothing all that exciting here. what are you getting so excited about? the stock's had a good run. am i going to add to it here? no. >> it is exactly the kind of stock you want for a covered writing program. you don't want those real volatile stocks that -- >> that i agree with whole heartedly. >> you don't want the volatile stocks. and that's why this one sets up perfectly. >> all right. we'll move on from old tech to the retail brokers. etrade and schaulb. >> if fed funds rates are moving higher or the thought is they're going to be moving higher sometime in the future these guys will start recouping a lot of the fees. lastly pandora's climbing 8% intraday after getting upgraded to outperform by one analyst. shares of the internet radio company have almost doubled this year. doc, so much for what is it

iradio or whatever it was? >> iradio i think will be great, scott, but as something that plays only on ios 7 or whatever, not a competitor to these guys. >> that's what they're saying. >> and i think cowan has it right and i think they are firmly entrenched and people have annual contracts. people that use this service know it and they love it they're not about to give it up. they may trade over to apple here and there, but again that's a small slice of the overall market. >> the market's posting their second consecutive day of gains after last week's violent selloff. so is it safe to buy right here? is the bottom in for stocks? let's bring in dennis gartman of the gartman letter it's good to talk to you. it's been a while. >> it has been judge. good to see you. >> likewise. what are you doing here? is it safe to buy stocks? >> well not sure it's safe but for the first time since february, i actually stepped up to buy stock indices, the s&p future yesterday.

i've been as i've said in my news letter agnostic of stock for quite some period of time. and yesterday i started to get religion. i got baptized yesterday. i haven't gone to communion yet, but i own a little bit, i think it's the right thing to do. yesterday's lows better hold and i think they shall. i was quite impressed by the ability of the stock market to accept a uniquely bad gdp report, second revision of a report that was due out from six months ago. and it took it very well. i was well impressed and own a few stock indices. heretofore i've been long of stock and short of gold and lock of long the stock market. this is the first time i've stepped up to own stock indices outright long. >> i'm told that you're calling a bottom. that dennis gartman, my man is calling the bottom in the stocks right now. is that true? >> well it's the bottom for this run. and it should hold. that bottom should hold.

if the bottom doesn't hold i'll go to the sidelines, but i think for me for the first time in a very long while as i said judge, since february it's the first time i stepped up to get out right long the stock futures, that looks like a bottom. i could be wrong, but the trend has been from the lower left to the upper right. we've had a good correction a lot of people throwing up on positions as the quarter is coming to an end. i think book squaring has occurred. i own stocks for the first time in a long while. they better hold if they don't hold, i'll go to the sidelines again, but i got lucky and bought, i think it looks like the day of the lows. i wish i had enough presence of mind to have bought in the middle of the night monday night and tuesday morning. i bought tuesday morning. >> it's karen, let me ask you something, i see in the notes here you are short gold. is that in yen terms, any terms? of you been long gold in yen terms for a long time. >> hold on to the seat of your pants terms? >> no for right now, the past

week and a half i've had on a strange trade that's worked out very very well. i actually had, i was long stocks, i was long crude oil and i was short an equal dollar amount of gold against it. for a while, i have been short of gold in my own account. this afternoon, i started covering in some of that gold. i think they got a little panicky on the downside. i think gold can rally $25 or $30 from here. but it is a bear market in gold in dollar terms. stay away from it if you are lucky enough to have bought some today, don't expect it's going to do much. and if you own some and get a rally, get rid of it it's probably a -- it is a long-term bear market. i've for years or i shouldn't say for years, but for a year and a half or so i've owned gold in terms of yen, turned out to be actually a bigger yen trade than it was a gold trade. gold is simply another currency and i trade currencies one against another. >> nice to see you again.

>> judge, good to see you, my friend, be well cheers. >> dennis gartman with a big call on the stock market. nike shares should you buy them or could that stronger u.s. dollar hurt the retailer's bottom line? and what about that lebron james premium? we're not talking about the cost of the sneakers. tighten up your laces, we've got a street fight just ahead nike style after the break. plus all week long trading the top stocks of 2013 we'll hear from the top analyst from his playbook on one electric car maker that's seen the stock price quadruple since the start of 2013. >> can't even do vroom. doesn't make a noise. iting to be found in faraway places. tdd#: 1-800-345-2550 markets on the rise. tdd#: 1-800-345-2550 companies breaking through. tdd#: 1-800-345-2550 endless possibilities. tdd#: 1-800-345-2550 with schwab, i search the globe for the big movers. tdd#: 1-800-345-2550 i can trade in 30 different markets tdd#: 1-800-345-2550 to help me seize opportunities, tdd#: 1-800-345-2550 potentially better returns and new ways to diversify. tdd#: 1-800-345-2550 to get an edge, i use schwab's global research.

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♪ ♪ cisco. tomorrow starts here. all right. nike's getting set to report fourth quarter earnings tomorrow after the close. but could the recent strength in the u.s. dollar impact nike's bottom line? and what about the big run-up in the stock since the beginning of the year. jon najarian says you should really just buy shares. mike says steer clear it is a street fight nike style 90 seconds to make your case and dr. jay, you're up first. >> i would say, just do it, just buy it, mike. and the reason is well lebron

james, that didn't hurt to have the series do as well as it did with viewers for the miami heat, which, of course lebron james is a nike spokesperson. now you take the yoga wear. it's a multibillion dollar business. lululemon owns it. but with nike moving in an aggressive fashion and 64% to 65% of the revenue right now comes from shoes. but as they move more and more into the apparel, in particular this very lucrative yoga wear i think nike's going to hit it. that's going to move margins up rather than compress them down. i think common currency year-over-year, nike's in a good position right now and i'd say that we've got a pretty good wind at our back. not in china as much as potentially the turn around in europe. and with the confederate cup, isn't it scott, and the rest of it going on. >> that was a good attempt. >> all good reasons. >> i'll acknowledge all those things and tell you if you look back ten years and forward two

years, looking at 8% top line growth, probably 12% growth in earnings over that time frame. and those are very good numbers. here's the problem, though. and it's simply one of valuation. this is a company that's typically traded about 19 times earnings, close to 25 times earnings. about a 20% premium to the usual multiple. this at a time when the market's trading at an average multiple. some stocks have diverged. traded much better than others some traded much worse. it's about average. i favor selling those ones where the valuation looks a little bit stretched on a historical basis. >> all right. who made the more compelling argument? >> i've got to go with mike although i like jon's tie better. >> thank you. >> this is not a difficult one. nike is relying on emerging markets to deliver the boost in sales they're not going to be able to get in developed markets. and right now, that's not a bet that anyone on the street wants to make. >> -- markets -- why would we write off developed -- >> you're going to be getting paid less in dollar terms. you've got -- >> it's a great company if the market continues to pull back

you can buy it lower. >> that's right. >> what happens if mikey takes out l nike takes out lulu. >> i think it rallies. >> trading at 35 times -- >> probably -- probably all fundamentals go out the window and nike probably trades up on that i would think. >> that would be amazing. >> all right. tell us who you think won that street fight. tweet us at cnbcfastmoney, and we'll give you the results at the end of the show. our next trade, turns out the big selloff in the bond market may not be a bad thing for some of the biggest holders of bonds. mary thompson looks at how the insurers are being helped and hit. hey, mary. >> hey, scott, let's start with the hits. insurance companies typically hold 2/3 of their portfolios in bonds. so when you see rates rise and bond values drop as they have over the past two months you know insurance firms are going to feel some pain. randy benner says the pain will be felt in the book value.

casualty and property insurers which tend to have shorter term obligations and investments. life insurers with their longer term liabilities and holdings down in the high single digits. still is with every story, there are two sides to this one. everything from treasuries to corporate bonds means insurers can invest free cash flow in higher yielding securities. myers shield says this should help future earnings as it boosts the firm investment income. well for life insurers, it will narrow the gap between what they'll pay out and the return on the money invested to meet those payouts. but there's always a but, rising rates could prove a negative if they mean higher inflation. low inflation to help keep payouts well below estimated chains. back to you, scott. >> thanks so much. let's kick this around on the desk. conventional wisdom seems to be -- at least i hear a lot of people saying oh rising rates, great for the banks, going to make more money.

there's a downside -- there's that downside, as well. >> you've got a revision to gdp, treasuries dribbled up a bit. i think that helped the stock market frankly. i don't think stocks can bottom until bonds calm down. bond market is 10 times bigger much more important in terms of the psyche of systemic issues. i don't see any way that stocks can rally if bonds continue to sell off and rates keep getting jacked up. you can say today's a positive but we don't know if the flows -- that's the whole thing. people get their q2 brokerage statements in a week or two and when they see how much money they lost with what they thought was stable we don't know if that triggers another round of selling. that's a wild card. >> look there is a thought at least out there that the last few days karen i'd love your opinion on this that you have had a bit of a rotation as people have sold their bonds. they have put some money into stocks rather than just sitting there with that money in cash and maybe that's what's helped the market over the past couple of days. do you buy that or not?

>> i do sort of. bonds are fearful of the fed tapering but the fed's going to taper if the economy's doing better and if the economy's doings doing better, some stock valuations are more attractive. i've been interested in how to play the rising rate environment and we've been looking around for things. and mortgage servicing rights, which are the income stream you get when you service a mortgage. you get a tiny piece of that income stream. and if rates rise prepayment risk goes down. that income stream is more valuable. we were looking for what's a pure play it was hard to find an absolute pure but we found a couple. home loans servicing, hlss, home loan servicing solutions. 7.41% yield. they have a gigantic portfolio, and as rates rise they'll see less prepayment so the flow of funds, the revenue stream will

last for longer. this one is interesting. another one new residential investment this is one that is backed by fortress. they're managing it. also has big exposure to mortgage servicing rights. if we see prepayments slow servicing rights will be worth more and so many banks that need to get that capital off -- to have freed up capital. >> let me get your thoughts on it. i was trying to think of where i remember that stock from two people mentioned it. >> steve eisman was the one that presented it. >> i can't remember. but somebody else did. i don't remember, but it came up, i'll tell you that at least twice. >> what they do is they service the loans that aren't clean where there's some issue, they're in foreclosure, something going on. so they are just acquiring rights from everyone and they're just creating this income stream that's very powerful.

>> one capper that i would add and i think karen's right on the money with those plays. i know a lot of people sniffing around them. stocks in general tend to do pretty well so long as rates rise but don't rise too much. the last cycle was 17 consecutive 25 basis point rate hikes. '04 to '06. stocks have pretty good years. it's not that you need to go out of your way to find a rising rate play if it's too unconventional for you. >> up next scott black lays out his top two value stock plays right here right now as we gear up for the second half the names might be a bit surprising as well. and later, we did the math and we'll tell you the biggest movers amid today's rally later on. we are back in two from time square. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody.

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welcome back to "fast money" this evening. unless you're targeting value plays in the stock market you may be taking on more risk than you can afford. scott black runs delphi management which focusing on value investing. the firm has $950 million in assets. nice to talk to you again. welcome. >> thank you for inviting me. >> all right. well, we're glad to have you. and i know people want to hear

where you're finding value in this market. >> well we look at companies that haven't had big runs in here. and one of them is western union. you get paid while you wait a 3% yield. the stock is 16 and change the earnings will be down a little bit this year $1.40 so you're paying about 11.9 multiple but the earnings should turn up next year to about $1.60 to $1.65, they changed their pricing strategy where they've lowered their prices and expanded their volume so the price elasticity and dominate the space of wire transfers around the world. they have like 50,000 locations. the company actually does well over 100% return on equity and they actually do about 35% on total capital and it's a money machine. they bought back about $2.2 billion of their own stock in the last few years and the market multiple just under 16 times and getting a pretty good company for three multiple point

discount. and it's a steady type of business it's not interest rate sensitive. and i think, you know it'll have legs as people see that the earnings is going to turn here because of the new strategy. >> hey, scott -- how does -- >> competitive -- >> i'm just curious and i read you right up on this in the round table and i've been in the stock before and i agree with you thesis is this sensitive at all to the migration trends where less people are moving let's say to north america or into asia migration from country to country seems to slow down. is that why the multiple has been depressed relative to the story here? what would you say is going on with that? >> no, i think the earnings have come down. there's been a problem with arizona and allowing transfers, you know from the state of arizona back into mexico but that's a transitory problem. but they have some competition for money gram. so what they've done is cut prices, but now they're getting low double digit increases. and by the way, on the round

table it was not i, it was oscar shafer. >> you guys are in agreement. where do you think this could get to over the course of a year? should all of the positives start to be reflected. >> so let's say you get $1.60 in earnings next year no reason the stock can't go to 23 or 24 so that would be all-in return with the dividend somewhere between 40%, 45%. but the thing is you have this margin of safety built in because it's a low stock going in and it's a money machine, as you know generates nothing but free cash. >> tell us about american rail car before we let you go. >> okay. that's a different type of stock. it's owned 535% by carl icahn through his company ieh. the stock is roughly about $31 a share. they have a backlog that basically will take them through next year in terms of revenue. they should do about 350 this year. so it's an 8.8 multiple 19% on

book, the balance sheet is deleveraged. the net debt to equities only .25, and actually their operating margins have improved dramatically up 310 basis points in the first quarter year-over-year. so they're getting some synergies. right now oil tankers are much stronger than the regular, you know type of railway car. but they also have higher margins. for anybody following the shale plays, for example, a lot of the bakken you know is coming out by rail. so they sell it to people like excellon and if the stock is washed eded out because the backlog declined in the first quarter and the stock has not participated in the rally, to some degree bottom fishing, but it's a decent business only 1.7 times tangible book and it's a pretty good company for an 8.8 multiple. >> scott, thanks for coming on the show and sharing your thoughts with us. >> thank you very much for having me.

>> all right, scott black from delphi management. let's get a quick market flash now from kayla tausche on an ipo that priced moments ago. and i think reporting to one of your sources. >> it is. hg supply was a former unit of home depot, just priced the ipo at $18 a share. that's well below the stated range of 22 to $25 range. apparently investors didn't have demand for the stock at that level because of all of the market gyrations. so it's only going to raise about $954 million versus the over $1 billion it was set to raise. it was taken private in 2007. this company can't get a break. they had to renegotiate as the credit crisis was just beginning. finally, $8.5 billion was the size of that buyout. the company invested at $4 billion. so it's definitely smaller, but seems right now investors don't have a lot of take up for these shares. >> thanks so much. we'll look forward to that one. after the break, a look at some

of the stories sure to rule the tape in tomorrow's trade. and later, the big unveil of our next stop in our top stocks of 2013 list. we'll hear from the top analysts on how he's gearing up for even bigger returns in the second half. [ indistinct shouting ] ♪ ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ ♪ all on thinkorswim from td ameritrade. ♪ ♪ we're cracking down on medicare fraud. the healthcare law gives us powerful tools to fight it... to investigate it... ...prosecute it... and stop criminals. our senior medicare patrol volunteers... are teaching seniors across the country... ...to stop, spot, and report fraud. you can

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let's hit our top three trades for tomorrow. we kick it off with home builder kb home out with second quarter earnings before the bell. the stock is down more than 11% in the past three months as rates continue higher. what can we expect tomorrow? karen, it's going to be another closely watched one. especially after the bizarre trading action in lennar yesterday. >> which announced decent earnings and -- >> stock was up and reversed. it was not good action. >> not great action. i don't know if that's a proxy for kdh that you know the bar's too high. but after the correction in the last few weeks, i think the bar's not that high. i think for a bounce, i like it. >> all right. next up for your hand held smartphone blackberry is set to report its earnings on friday before the bell. it's your last day to trade the name before those numbers come out. we should note the nice run-up in the stock leading up to its

release. grasso? >> that's right. looks like people are a little more optimistic with what's going on with blackberry. maybe somebody buys blackberry. maybe a chance -- >> how long we been talking about that? >> i don't know sooner rather than later. it's got to happen at some point, i would think something has to happen. >> next up we're heading overseas to europe with the vgk, the vanguard msci europe etf. >> there's a lot of smart money going to europe right now. it's 11 multiple versus the s&p and nikkei at 15. it's a drastic discount. warren buffett's been making stealth acquisitions in europe. they ask him what about the news. he says the news is not getting better, but the value has, the prices have. we'll be legging into europe over the course of the third quarter. >> the interesting part of that it's not getting that much better but it's not getting worse. right, and there are those who are saying europe's bottomed. >> right. you're getting 3.5% on vgk, it's the index, 400 of europe's

biggest stocks. this is a position we'll build throughout the course of the year. we're going to start building it on friday. >> i'm not sure. we can't -- >> it may be getting worse. >> with a one to three-year outlook. >> if you're going by the data it's not. >> depression not recession. there's certain areas. so we've forgotten about europe we've been focused on the fed. >> next trade, we are half way through the calendar year. and all week on "fast money," we're profiling the hottest stocks so far in 2013 with analysts at the top of their game. today's stock tesla, the stock more than quadrupling this year. ben has a price target of $118 on the stock. he joins us now. ben, welcome. >> hey, thanks for having me. >> yeah. so you're comfortable with with this stock is. a lot of people questioning whether it deserves to be here. >> i'm very comfortable. 15,000 thereabout cars on the road, great recommendations from consumer reports, auto trend car

of the year got a lot of money in the bank after the recent raise, ready to look ahead to the model x and the gen 3 coming forward. >> ben, where do you go from here, though? there's a lot of naysayers. there's a lot of people that say there's absolutely no reason to buy this stock. i'm just pushing back because i have been a bull in tesla, i like the name still, but you have to admit there's a lot of other ways to play this type of car with the, you know, a ford or gm or anything else too. >> yeah. my favorite quote is you don't have to own it but you don't have to shore it. there's definitely a lot of short interest out there. gm and nissan and name the list of the bankrupt companies, they've all made inferior products. tesla is getting it done to a good degree so far. >> do you need the best-case scenario to play out to justify the multiples this stock is

trading at? or do they have enough time to have hiccups along the way. i like the stock, but that's my biggest fear. they disappoint on a random metric and take this thing out behind the wood shed. >> i think you saw ramping up production for the first time they did make a couple of bumps in the road there. and investors stood up they had to issue that secondary. they were there, stock went up on the secondary. so the investor base is very strong, they believe in the story. so i think that misstep here or there, the stock keeps going higher and higher as long as the overall execution continues the way it has been. >> all right ben, thanks for coming on the show. good to talk to you. all right. you have some options action for this one? >> there has been decent activity since the stock began this big run. calls outpace puts today but much of that call selling, looked like closing sellers giving up on their bullish bets. some of the opening bets we did

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all right. you tweet it we trade it. let's get to some of your tweets to our crew today. mike, what do you think about pnc? >> you know i'm fairly neutral on pnc here the valuation isn't too bad. it's a fairly pure play on the u.s. and mostly just retail and commercial banking, of course. i think the best way to play this thing is probably to sell strangles around a long position. you scale into a little as it drops and peel out a little as it rises. >> dr. jay, utilities. >> i said i bought it friday and i did, the xlp, the staples and xlu. i like them both here. i do think we're topping out on rates. is it going to be the exact top like karen said? i know i won't call the top and i won't pick the bottom. but i think we're close to a top short-term in rates and that's why i'm getting back into some of these interest rate sensitive stocks. >> our next tweeter says karen,

i am a bank of america fan like you. but when does it ever break out of its range? >> okay. well, i think we're going to see earnings, i think, it's mid july, maybe the 17th or so. i think it'll be a fairly noisy quarter. so i don't think it will be then, but i'm hanging on. i like it for the long-term. i still think the valuation is attractive here. can't give you an exact date. but i'm staying long. coming up next on "mad money," cramer's invest in america series continues with a jumbo jet size exclusive, boeing that stock is up 30% despite the dreamliner debacle. you do not want to miss what that gentleman, jim mcnerney had to say to jim. that's coming up top of the hour.

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all right. well, the twitter results in, jon "the bull" najarian is the winner. around the horn dr. jay, kick us off. >> footlocker, another play on nike fl. >> hercules offshore.

>> hlss. home loans servicing. >> i would say take your time, you're going to have plenty this summer to add things you like. >> that does it for us. have a great evening. we'll see you tomorrow. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bulwark in summer. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. you want to make friends i'm trying to save you money. my job is not to entertain you but educate you so call me 1-800-743-cnbc. so often things around here are day to day. yesterday, yesterday we got strong numbers. ♪ you had