covered tomorrow. >> another slight gain for the markets today. although anecdotely, analysts are starting to raise cash. so a few sweaty palms. thank you for being here on tuesday. >> thank you. >> that's it for closing bell. >> fast money comes up next and starts right now. ♪ the nasdaq markets in new york city's time squares, tim see more, dan and mike coe. let's get straight to the top story. and we told you it was coming. i do want to get to what everybody out there is waiting for, your conversation that you had today with mr. icahn. >> he said i'm getting on twitter. gave me his handle. he wants to do a treasure hunt on twitter.

he's going to send a clue to his next investment. >> you're kidding? >> that's what he said. >> we're talking a matter of days when we find out what karl icahn is up to next. >> okay, i'm ready. let's go. it's time. we're ready. and today we find out that he has in fact take an big position, a quote unquote large position in apple. the stock surging on these tweets from icahn. we believe the company to be undervalued. spoke to tim cook today, more to come. and then said had a nice conversation with tim cook today. a larger buyback should be done now. we plan to speak again shortly. apple shares surged 5%, best day of the year because of those tweets. what do you make of the move? >> as an apple shareholder, i'm happy. as an activist investment, this is not likely very tough.

not impossible -- he's not saying he's wanting to do anything active, other than they should buy back more stock. to move the needle on a company of $400 billion plus market cap is difficult even for someone as big as carl. >> do you think icahn will have the power to suggest and tim cook be receptive? otherwise it's for nothing. >> if anybody does, he does. clearly he talked to tim cook, i'm more with karen. it's a difficult road here. maybe they end up doing a little bit more of a buyback, but i wouldn't expect major changes just because he's in here. it's a massive company. >> he said a couple things. he didn't necessarily say how aggressive he was going to be. at times, he will let you know how aggressive he's going to be. he said it's undervalued. this is the second activist

investor. david aye horn went at it with a specific one. >> there was a pop that faded. >> yes. although it led to apple giving money back to shareholders. he's trying a different tactic. they're chumming up, which is a slightly different tack than before, but, again, it will take a lot to move this thing, and i think we've seen a big move already. >> green light capital, july 31 ts conference call, 2.3 million shares. >> apple made an amazing come back from below 400 to above. it's going to touch there. if you want to ride his coat kale tails, make a decision whether this is essentially, you know, a product invasion story at some point in the future, or a financial-engineering/values story. this was much of the debate for the last year when it wallowed. it finally gave in and raised

the buyback to $60 billion. they did an accelerated buyback of $4 billion in the last quarter. the stock is higher. i do not think he will be pushing them to raise the buyback, ten years or something like that? >> i thought it was shorter. but $50 billion over -- >> and maybe used a quarter of it in the last year getting it to a point when it was so underwater. for him to affect this change -- >> why isn't it a financial and product cycle story? >> you're going to know next month. if they have an iphone that looks like the iphone 5 and nothing new, then it's a problem. >> some people out in the twitter sphere, think it's another kind of engineer. take a look at it this, it seems inappropriate for icahn to tweet a stake and watch it pop $25 a share.

a lot of these are the same, a master stock manipulator. what a joke you guys are, you paid hymn 2% for his tweet. people feel left out in the cold. >> i don't know why. that's making a very big assumption that he's buying the stock, putting out the tweet and selling the stock. and in companies much smaller than this, he takes a greater than 5% position, he's often very active as you said, he's an activist. when you have a 13-d position as an activist, you cannot go trading around stock whenever you want without filing very quickly after you sell 1% of the company. so this idea of a pump and dump is -- >> that activism is self-fulfilling. this is his first twitter announceme announcement. he used it -- maybe the second won't be that big of a deal. i'm about to drop a bomb on

twitter. the importance of the announcement, i don't think he's going to go bananas here, but used twitter, and we talked about it on the twitter show, when companies or activist investors start to use this as the first call of information, it's going to be powerful. >> this was a twitter bomb. they did it when it was flirting with a 200-day moving average -- resistance level -- >> couldn't the run have been him guying the stock. >> no. >> how about $16 billion of buyback? how about a buyback that's going on for the last quarter. >> today it was a bomb right at the really important technical resistance. >> and they were off the charts. let's bring in brian marshall. he joins us on the fast line. good to speak with you. >> thanks. >> do you think he would be receptive to the suggestion they do a larger buyback? >> i think they're open to large investors and to want hear all thoughts out there.

what's interesting today is perhaps carl realized that maces are better than dell pcs, so it's a good opportunity. but it's attractive, and apple management and willing to listen more than the past. >> it does seem ironic for someone to be a buyer of dell and apple. do you see that as co-existing? >> i think our personal take is that investors should take that 13.75 offer from silver lake and dell and run for the hills. but we think apple is undervalued. we agree with him. and we think the company is buying back shares, they're going to buy back more. 920 million shares outstanding, $130 billion in net on the balance sheet. they'll be active. more importantly, how is the reception of the new iphones.

we think the low-cost iphone is going to steal the show raising it lower in the international market and higher gross income for apple. >> do you see a place where icahn takes two investments and creates synergies. his large stake in app and will his 16% stake in nuance? >> it's a possibility, but, you know, i think apple, you know, is probably an investment all in itself. you know, so obviously, you know, he may have, you know, some guidance with management with respect to how to -- where they should be getting the voice recognition technology. but at the end of the day, the apple management team will make those decisions for the company and the products, not the investors. >> going to leave it there. thanks for your time. now let's bring in a man with the pulse of the activist community. ken squire, he invests alongside

icahn and bill and dan ackerman. it's fortuitous when you have you on. something big happens. >> that's right. >> given apple's size can he be successful in this investment? >> like somebody said early, if you're successful, it's an amicable thing. he likes tim cook and management. it's not a real competition or activist situation. but knowing carl, let me throw out numbers there, you could borrow $150 billion at 3%, buy back the stock, till have a ten times coverage ratio on the interest, and you have a $625 stock. that's how he thinks. >> isn't this what we were saying too? he was basically telling them to lever up, and seen as an aggressive strategy. buyback, but we will not lever up. >> and he's going a different

tack, and they had a different theory with the preferred stock. carl is trying to be buddy-buddy. maybe that will work. >> i'm curious in your fund, this news comes out, when do we get into the name? >> we won't. we draw 13-ds. he's not likely to have 5% of a apple. we would analyze the situation and catalyst and make a decision. >> if it's up 5 or 6%, that's less important than what's happening with the stock? >> absolutely. the average situation is up 2.5% in one day we never get. average holding period is 15 month and there's a 16% outperformance. >> 2.65% is the -- >> one day bump. >> on news this investor filed a

13-d perform. >> and a 15-month peter, and it outperforms by 16%. so negative .9 for the s&p 500. >> we got to go to the most interesting d situation in quite some time, jc penn ji. >> it's in dive. >> is it possible we see him shift from a d to a g which allows him to be more flexible in closing sales if that's a decision that he makes? >> i don't think he could -- he could switch to a g. i think he could sell at some point. he has broad information, he'd have to wait for a window. as long as he's under 20%, he could switch to a g work and more leeway to sell without having to report it. >> i'm confused how you choose your horses here. i know it's your own work, but at the end of the day, you're yugz other guys as a catalyst.

>> absolutely. >> how are you discerning between who -- done good work and has a view that's different. >> we look at the 13-d as an event. who's the activist, his track record, sector and the track record in the sector. what activist catalyst, some tend to have better returns than others. are they index funds, or hedge funds likely to back him. we do analysis, and we'll allocate or not. >> recent additions to your portfolio. you comb through lots, which has the best chance of success? >> oil states, a filing. they announced they're spinning off the accomodations business. they're likely to announce that

to a read at some point. very low debt on the company. a lot of things they could do, and that's an exciting situation. >> thanks for stopping by. appreciate it. >> thank you. >> let's check on a name in the after hours session. the company beat on the top and bottom lines, and at 16%. the feds try to block the proposed merger between american airlines and u.s. airways. did it make it uninvestable. and the trending trades. and later on, icahn wasn't the only one moving stocks today, an angry investor letter was sent to the board. we talk to this very activist, live. 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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♪ market flash, josh lipton on kree falling after hours. >> we are watching it, it's tanking in the after hours. the maker of l.e.d. lighting products, matching on the bottom, slightly light on the top, but forecasting

disappointing earnings for the first quarter. sending shares lower. 36 to 41 cents, analysts expected 43. down 16%, but up 90% so far this year. back to you. >> thank you very much. another big story we're following tonight. airline stocks taking a beating much a antitrust blocking of them, are they investable at this point, and in a research note today, if this gets knocked down, it will be much more fragmented, challenging the capacity offline, which will prompt a rerating which has seen a huge rise this year. >> they have taken capacity offline. that's part of the efficiency. with this merge we are, five carriers, top three with 80%. i'm for free capitalism, except

this is an industry where the barriers to entry or high and the government is important in determining who will live and fail. it's important for the consumer. it's starting to get scary. they have taken accuracapacity offline. i own airlines around the world, the strong are getting stronger, but they are better run as they take capacity offline. >> what do you say? >> i was looking a the united airlines. they were down 6 or 7% at one point today. this is overdone is what i'm getting at here. at $30 a share, that's decent support. united airlines is not going to merge, let the other ones wash out, and for a trade you've got a nice shot buying them against 30. >> you would never -- >> i touched once. you know, it was actually a broken airline deal, united

airlines, lbo, didn't happen, and the stock got crushed similar to today. and made me hate the airline industry. i don't like how capital-intensive it is, i've just never played since then. >> what's the rush? this is the first day, it's a one-way train. delta was up 65% even after today's decline. if you like the characteristics about consolidation, and some what have you'd call the transition in the industry, think it's an investable idea, wait until they're oversold. but i'd play delta. >> what did you see in the options markets? >> the immediate response of bearish. one of the concerns is that all of the good thing for the happening, that story had ended. but i don't believe that one less airline would have made that much of a difference. a lot of the operating efficiencies that the airline haves put into place, you know,

controlling the capacity, all of these things are showing benefits. most of these things are trading at single-digit multiples. that demonstrates they are already seeing the performance gains from the impacts. farce the merger, aamq you have to stay away from, part of the merger was paying back the unsecured debt holders. that's a mess. as people waited, they started to think it's maybe not the impact. that's when the call buyers jumped in. at the end of the day, we had more. >> and we have gordon on the fast line. for his take -- what do you think the government is after, knock the merger down or leverage to extract carve outs? >> it's like dealing with a bipolar individual. you've had an opportunity to express yourself for a year, and they come up with a veto a year

later with no real concrete examples of why it's bad. they're filing in ha district court to block it, when they have had this time to express their dissatisfaction, now we have the previously-bankrupt airlines, america west and u.s. air, and american, and we're going to block it. it doesn't make any sense. it's absolutely absurd. >> karen, let me ask you something, do you think this was unilaterally made, or would there have been behind the scenes discussions before the government came out with the decision? >> i don't know what they were smoking, but somebody came up with this. there's no logic to it. that's what puzzling to me. if there was new information or issues come to light, but there hasn't been -- >> do you think it's political? consumers up in arms that they

may have to pay more and have more leverage? >> if you look at the last ten or 15 years, the pension bust, bankruptcies, lost jobs, that's where this is head if this doesn't go through. there are going to be lost jobs and a lot of people who don't get paid. i'm not sure this is good for the economy. what's good for the economy is good for consumers. you got to take that route to get to the consumer, but how many airlines does france and germany have? we've got ten or 12. i think we have plenty of competition. i think these guys need to merge, and it's going good for the consumer if they do. >> what are the odds today of this merger actually going through? >> you'd be better able to answer that than me because there's no logic. you know, if you could flip a coin, you could say it's 50/50, but with this administration, i'm not sure there's a way to handicap.

>> we're going to leave it there. thank you for your time and analysis. lots of colorful metaphors out of that. >> and the thing you have to say, and gordon got to it, does the airline industry need to consolidate to keep profitable, or continue the way they're going with the number of airlines we have? your answer on that is whether or not you want to buy into the airlines. united airlines, and jetblue, off 6 bucks, not bad. >> and coming up, diamond in the rough, find out where he is looking for value right now. and shares of soef a. bank jumping after the retailer says tremendous value is trapped. that's on the way in a fast money exclusive. back right after this. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550

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. let's get another market flash with josh, this time on seawor seaworld. >> reporting, and investors are selling. this is on the bottom and the top. company says the decrease in total revenue in the second quarter drivenly lower attendance, which dropped to 9.6 million. full-year revenue disappoints, but it was up 35% since the ipo in april. the ceo saying they're pleased with the results in light of unfavorable easter-timing adverse weather. but the stock is down 12% in the after hours. back to you. >> thank you very much. our next guest is looking for value with stocks near record highs. he is the president of asset

management. it's the diamond in the rough. start off with cleveland cliffs. >> first of all, thanks for having me on. the diamond in the rough is it's simple, buy low, sell high. a lot of people don't to want buy stocks when they're down, think they're something wrong with them. cliffs natural resources is a great example of that. most of the industrial metal and precious metal have come down quite a bit. we have seen that some mining companies, particularly in the gold sector wrote down assets. there was a growing concern they would have to do that. it's iron ore. china has been slowing down, europe is in recession, and the american economy may or may not be growing. we firmly believe the american economy is grow, and europe is turning a corner, and iron eore

is growing. we think about 75% of book value, it's great, particularly if china picks you were again. >> caterpillar, you're short cat, karen. >> from a what price? >> 84. i think it's irrelevant when it was. wherever it closed. that's where i'm short. it's more on the serial misses, the guide downs. it makes me wonder how much of a handle they have on the business. >> those are legitimate issues to bring to the table here, karen. and honestly this is a track record that goes way back past the last year. there have been misses, the mishap in china with the write down there, but prior to that, particularly in the great recession, they did such a terrific job of managing inventory. they cut the book that their dealers had to protect the brand. they didn't do what the auto makers did, flood the lots and

cut prices and ruin the brand. really in the long-term, they know what they're doing, but the reason i'm long it, and wouldn't be short it here, is they have about a 2.8% dividend yield, that's 30% of the earnings. and one thing, they have a 10% free cash flow. that's not something i want to short. go ahead. >> so the 10% and the dividend yield, those are the reasons why you're investing. the other is inventory during the financial crisis happened years ago. is that a correct takeaway here? >> and one thing i want to make sure is clear, we think the american economy is picking up speed, europe is coming out of recession. and with those two catalysts, you can start to see construction equipment start to sell again as things are built. we're comfortable. >> i want to talk about areas where you're about to pull the trigger, or going to, jcpenny,?

>> i'm waiting to pull the trigger. we haven't. why is that? first off, if this company is not one foot in the grave which is what the stock market is stemming us, it's a great american brand, if it's not, it will be back in the 20s in the next year app at 12.5, why not buy that all day long? once the grenade is thrown in the room, that's cit and whether or not they have been cutting financing, once that's thrown, i need to see at least one or two more earnings reports and get the feeling that cit is not doing anything negative with the company. i'll pay up to $14 for the clarity. >> why do you think it's 20? why do you think it will be 20? >> there's land underneath the stores here. there is asset value here. >> some of the parts valuation. >> if it comes back, which is dependent on having the

financing and doing away with the ron johnson story, there will be earnings here. but right now it's a roll of the dice. i don't like to roll the dice. i like to invest. i need more clarity. i'll pay a dollar or two for the clarity. >> another stock you're in is in the news because of the stuff going on, whether it benefit if the deal gets knocked down? >> it may. i think this is a head fake. i know you discussed it a few minutes ago. i think this is absolutely a political issue. whether or not it's them worried about prices up at reagan national airport, that's one of a kind, it's where they fly out of. obama may have said we need to make waves being anti-business. maybe approve keystone xl. it's easily sold by selling slots at reagan national. that's what they're going to do, and they will benefit from

continuing capacity cuts. >> thank you. >> thank you. >> time to hit today's top trending trades on twitter. blackberry is a hot topic, the stock getting a boost building off the news they are exploring strategic alternatives to enhanced value, including a sale. >> how many times have they done this? they have a new management that's focused on really trying to right the ship, but they don't have the product portfolio. but to be honest with you, if activists are interested in dell as they were, or michael dell wanted to take that company private, why not lever this up? 50% of the market cap in cash, no debt, there's still 70 million active users here. there's probably something here. but in no news on the tape, this goes back to a large hat size. >> next, buy duke getting chat on twitter. it is an online chinese internet search engine. up more than 40% in the past month. >> it's rocketing because the

second quarter numbers show they are converting and monetizing mobile. but the news, and the reason it's trending, they are going to buy a site. and this is something i think is another reason they are getting in there, they are balance, and seeing monetizing. 19 times next year's earnings, not out of the way, they're up 50%. >> and according to options trades, the high could be in for the year, mike? >> somebody was rolling out of the december 50 calls, that's a it 2.50 option. this individual doesn't believe the stock has much room above $55, which isn't a whole lot higher than now. >> coming up next, the biggest movers and shakers. but shares of joseph a. bank after an activist investor declared it was undervalued and

pushed for changes. that investor join us live in a fast money exclusive, and that's next. ♪ [ 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. ♪ from td ameritrade. we've been bringing people together. today, we'd like people to come together on something that concerns all of us. obesity. and as the nation's leading beverage company, we can play an important role. that includes continually providing more options. giving people easy ways to help make informed choices. and offering portion controlled versions

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welcome back to fast money. live at nasdaq markets. big hedge fund managers reporting, david filing a 13-f, adding to the stake in goodyear, a total of 2 million shares, making him the single largest stake holder in the company. this is a monster performer, and the fortunes of the auto makers have been improving, they have as well. >> he's been in this for a while. it's a play on recovery in europe. the next leg of any auto trade is going to be europe. adding it up here. take a look at $20. technically, it's making a big breakout. if it pops tomorrow, give it a day or two. but above 20 you're safe. >> that drove the stock up. at nine times earnings, not

cheap. i'm a big believer that the demand side is strong. also price to book it's not terribly cheap. >> and hertz and others, we will show them to you. not much reaction not stocks. the activism is revving up. joseph a. bank getting a boost. a shareholder said the stock is worth 70 bucks. thank you for being here, ed. >> thank you. >> there's a host of reasons why you think the stock should go to 70. but basically what is it in a nutshell? >> this is a management team that's built a business from a tiny regional retailer with 100 stores, over 600 today, billion dollars in sales, nearly $3 in earnings, we think those are very low compared to what they

should be on a normalized basis. they have had issues with raw materials, we think it's closer to 3. they have never paid a dividend, done a buyback, and just accumulated on the balance sheet. >> i didn't know much about the cash position, but 13.50 a share. >> exactly. >> 32% of the market cap is in cash. that's staggering. >> incredible. >> just a portion of that cash for a buyback, where would the stock be? >> we think if we're right, then normalized earnings are close to 4 and should grow. we think you could buy back 30% of the stock today. that's sitting in j.p. morgan, earning nothing. we think earnings close to $6. trade at 14, 15 times earnings.

they should be $70 plus and grow. >> i'm a shareholder before today, and i was delighted to see you highlight some of the issues here. >> sure. >> one of the things most disconcerting is to think that management's lack of accountability, they don't own much stock, yet they are totally unavailable to the street. and i know that's one of the things you talk about in your letter. but what is it you're trying to do? >> we think a company with a billion dollar-plus market cap should have communication that other companies have. that's be able to speak to cell side analysts, buy side, host conference calls to ask open geps there's been issues with raw materials without a forum to ask questions. no one knows what's going on. you have to rely on filings, they were not clear. first communicate with shareholders, and second, having an avenue for share holders to let you know what thing. management here thinks that

doing an acquisition with their cash is the best thing for the long-term. we think buying back stock is the best thing at the recent shareholder meeting, more than a third of -- roughly a third of shares were voted against the board being re-elected. we think if they had an alternative, way more than half of the shareholders would vote against that. what everyone want sas buyback at the depressed prices. >> you own more than 1% of the shares. >> it's a large position. >> have you in fact talked to anybody there yet? >> so we have been a shareholder for three years, much bigger today than any other point. in the first two years of the investment, they would speak to shareholders and the street, it was a normal sort of dialogue. >> right. >> they stopped about a year ago. we were at the shareholder meeting in which we got to speak to management as well as the board. but outside of that, little dialogue. we have sent letters before.

we're not an activist fund, we don't target companies trying to make change. we have been invested here, they have grown the store base, got caught off balance, now it's time for them to deploy capital in the right way. >> thanks for coming by. keep us posted. >> will do. >> beacon light capital, i personally called the company a couple times today. no response from them after several messages. there's that. >> i want a quick question, though, would you run a slate or run for any kind of director representation? >> so i don't want to discuss all of our tactics at this point, but we're hopeful that the management team will see the writing on the wall. it's clear that shareholders are against the current policies. february is the date you have to bring nominees to run against the chairman who's up for re-election probably in the may to june time frame. around february we'll make a decision.

we haven't ruled out running a slate on our own. it's a staggered board, you can't run all at once, you have to run two members at a time. >> we have breaking news. we have more information from app lieu is a's filing, they're including bank of america and citigroup. they're reducing stakes in aig and microsoft. take a look in the shares in the after-hours session. interesting movies being made. a play by play on the most talked about moments, plus get an edge on trading with the top movers tomorrow. much more fast straight ahead. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪

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that's the value of trusted connections. that's u.s. trust. today's most talked about moments on cnbc. it's time for the executive edge just in case you missed them. >> we have breaking news, bill ackman is resigning from the board of jcpenny. >> i'm still look for an economist who shows us smaller than expected deficit and increases gdp as a result of that. i'm not seeing the benefits of

the lower deficit. >> you're right, we need to advocate to shoot for $25 trillion to see how many more great benefits we can extol on the economy. >> breaking news regarding the plans of a and r and u.s. air to merge. of course that was a delicately negotiated deal that took time to bring together. now it appears it's going to be facing a new hurdle, from the u.s. justice department. >> how sick are you of seeing these pictures? >> yeah, you know, it's been okay. you know, it's amazing with social media these days how fast things can get away. that was the number one trending thing on twitter for a couple days, actually. i'm fine with people sending me stuff. it's weird when you get into their pets. >> check out the chart of apple here, and you will see a nice pop. carl icahn on twitter making

news. here's what he to say, we currently have a large position, apple, we believe the company to be extremely undervalued. he said he spoke to tim cook today and there's more to come. >> you know, it was interesting about that pop in shares of apple is that icahn enterprises also got a pop on the news, up 3% or so, and heavy volume based on this. would you invest? >> they have gone nowhere. carl is making money -- >> minting it. >> this is one of the first times that he's announced something and his underlying stock has responded to it. at this point, purely technically, it looks like a breakout, but unless you're in with carl, it's hard to invest. >> when you own 88% of the company, as a corporate governance thing -- for an august day, there was so much going on, and activism is right

at the top of the list. >> it's amazing, with jcpenny, they're falling on their face with bill ackman leading the way, maybe a boost from the news. we know it's a mess, problems on the balance sheet. but take out the antagonist who was trying to be the protagonist, i thought it would get life today. >> now that we discussed today, what's tomorrow. deere getting ready to report third quarter results by the bell. they have been under pressure. >> it's been under pressure. caterpillar's results weren't helping and a number of downgrades. it's trading cheaply to the historical valuation, price to book, it's pricing in a lot of bad news. when you have a lot of people piling in on the short side, essentially, that's poising it to do better than expected. and i like the stock below 80

bucks. >> macy's will give a better look at the consumer spending, they are releasing quarterly numbers before tomorrow's open. >> i love macy's. i don't know what they're going to report tomorrow, but i like it for the long-term, if it's bad tomorrow, that's okay. they're the premier retailer. >> do you believe in the consumer still, dan? >> macy is best in breed, and karen has been all over this. this is an important report. we have seen retail disappointments. we to want see the leaders put up good numbers. if you start to see chinks in the armor, it's a pillar of the recovery, the american consumer, we don't to want see that fall off. >> and the fast money twitter feed, we'll trade them right after this break.

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you tweeted, we traded. this is for tim, what is your view on mrgs in general? >> i think it's something a lot of people love, they pay out significant yields because they are levering up.

in an environment where yields are higher, the ten-year broke out today, that's the pressure on them, mlp, something that i think after a big pullback starts to look interesting at 7.5%. there's more pressure on the balance sheets which are levered. >> is microsoft going up or down after the downgrade? >> i'm bitter, having sold it too early. it ran to 35 and came back in. the pc problem is persistent and problematic. and microsoft seems to be an also-ran. the knnokia, the zoom, i don't think they're going to get a good multiple for a while. don't own it. >> thank you on rio short and long-term? buy -- not a short. >> not the city. i'll piece it out. here's the thing, you know, this rally in the minors started with the gold miners and moved to the

industrial commodities. this stock's up 25% off the lows in july. you want to be careful. it's hitting short-term resistance. don't chase them. we have seen a lot of call buying and valet, but these are names that are early cycle to a move when we start to see the global reinflation trade come back. >> i think ambassador is going to make fun of you. >> i'll stay away. i'm going to pick up my car. >> not use the valet. >> i'll pick it up myself. >> whatever. it's not -- anyway, we got first for tomorrow when we come back. farmers presents: fifteen seconds of smart. so you want to drive more safely? stop eating. take deep breaths. avoid bad weather. [ whispers ] get eight hours.

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time for the final trade. mike coe. >> to ensure your portfolio, risk reversals in spy. >> ambassador. >> exxon starting to get into the value level, 88 bucks, hold

it. >> google has been a massive beneficiary out of apple. that's going to reverse. >> i like them on the heels of joseph banks. tim and his wife have a big appointment tomorrow. >> thank you. >> the moving rates i think rat go higher. >> don't go anywhere. "mad money" starts right now. 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 some friends, i'm trying to make you a little money. my job is not just to entertain you but educate you so call me at 1-800-743-cnbc. bailed out by europe. bailed out by china. bailed out by japan! i'm not kidding. that's what on today the averages dipped in the red and rebounding, dow gng