a lot of money left on the table. you hope when those folks do take the bunk you don't see an immediate correction. not enough people have actually participated. let's hope that's not the case about the next bull market. we were mixed today with the dow jones down a fraction. thanks to everyone here for having us at their impact conference. fast money begins right now. live from the nasdaq market site in new york city's times square, this is "fast money," america's post market show. here is tonight's line up, tesla ceo speaking out saying the stock is a good deal where it is. should investors take his

advise? and we will introduce you to the man apologizing to america. plus we have got a money manager who says there are two once in a generation opportunities right now. our traders are tonight are with us. let's get straight to our top story and that is tesla. ceo said moments ago that there will be no recall of the model s despite three recent buyers. he also had this to say about the valuation of the stock. >> long term the value of the company will be well in excess of that. to give us that valuation now is to give us a lot of faith in our future execution.

i was trying to be accurate. >> call me crazy. >> he is talking about it again. >> if he believes in being accurate, he is saying that he did not need that valuation at that point which is. >> tim:ing the stock down. >> as soon as you make that point, people started exiting it and we know why they exited and why he said it. >> here he is, at it again. you know where i stand on the company. not that he is not an inis know va tore but there is a couple 06 things going on. and we are assuming that there is no competition but my biggest problem is as a portfolio

manager is who holds my stocks? this stock is now in the hands of retail players. >> let me push back on that. in july it was added to the q. >> they had a chance to buy and they bought it since then. a lot of big institutions. hedge funds own this. they don't own it now. >> a lot of guys were bearish on it for 98 all the way up to 104. there are two many other distractions in the name. >> if all retail owns it and none of the institutions own it then it want to buy it. >> if i f you want to get ahead of the institutional orders -- --

>> why are they out of the stock? they are obviously momentum hedge funds only trading on technicals and momentums. >> he said investors are relying on their execution to be flawless. they had to starve north america in order to feed europe. to steve's point, momentum is broken. to tim's point, he makes great points. he made the same points last week. i thought if he held 140 and bounced that would be a good ind dags that maybe we would get another bounce. so me it's dicey. you have to pick a level.

if the levels don't hold you get out and if you miss a move you miss a move. the trade in terms of mo men tem is completely over. >> there have been other times where the stock has lost over 20%. investors just say i'll take a look. i will miss this trade. i will buy it over 200 on momentum. >> the valuation is really the big problem here. when you look to invest in growth companies where the current fundamentals don't necessarily justify the stock price, what you're hope something you get to buy the entire prize where some future performance may give you two, three, four times your money. in this particular case the size of the business makes that somewhat less likely.

you're forecasting that the valuation is going beat bmw or larger and i think that really is asking quite a lot given how small the business is right now. >> obviously one of the overhangs in the stock are the recent buyers. >> there is definitely not going to be a recall. there is no reason for a recall, i believe. the perception sounds like teslas have a greater propensity to catch fire than other cars but nothing could be further from the truth. >> this is why we're seeing the stock move higher. let's bring in a celebration. >> do you believe him when he says di fintively that there is no recall in the works? that there will be no recall of the model s? >> i don't think they need to do a recall now.

the safety situation worked as it was supposed to. >> compared to the others, are teslas more prone to catch fire? >> there is nothing that i know that makes it more prone. safety tests have shown that they have done well in terms of overall sifty. if you look at it, if they pull over to the site after an unusual incident and they were able to get out safely and the passenger part never caught on fire. >> new technology probably under the mike scope more than older technology. i care about production. i care about what is build into this stock price in terms of

where they will be in two, five, and ten years. >> my view is i initiated coverage with a sell. i like the company. it's the valuation that is of concern to me. you are paying a lot in advance up front for potential good news later there is risk that things change. >> what's the most proprior tear battery issues that they have over the competition? why are we buying the stock? why would you get back in? is this a total sell? is there any information that they have over their competitors? >> they have been able to do a good job with the battery technology. they sell the research and

supply to some potential competitors down the road for electric vehicles. but they are ahead of the curve. >> at what price is tesla is buy in your view? >> we can never give you a telegraph of that but we watch the stock. our target price is 140, so we're looking at it extra closely. >> all right. great to have you with us. all right. so there won't be any recalls but the execution issue is still there. >> a gm car tashs fire and nobody makes a sound. tesla car, if it happens again, what's going to happen to the stock? i don't want it to happen again but if it does they are going to bury the tok. >> that quarter was a very good

quarter. it wasn't object marginors the battery fire but the expectations in the stock that are unrealistic. >> we said watch the 140 mark. 140 is still low lying in the sand. if it does not hold this level then it's 125 and then 105. >> you need to get a day where you have a big volume reversal day. wait for the stock to reverse. then it's safe to get in. >> i want to share this one chart. basically he said you see it reach the moving average.

the presumption is that tesla will flirt with 130 and the stocks will bounce from 130 to 175 plus, we have to wait for numbers to get that. >> let's move on here. take a look at some of the big internet stocks. continues to head higher. we mean things like good old fashioned microsoft. >> i go back to yahoo! and i consider this new tech. if you look at some of the parts valuation, which i bought today. i wanted to buy it into to the weekend. if you take 24%, that alone makes up the market cap of yahoo! right now.

so i like yahoo! here. i'm a little frustratin frustra myself. >> you flagged research. one saying buy, one saying neutral. >> i think you're starting to see those rotations coming in. sun saying get in, one saying get out. i think you can buy intel but you need to buy it for the dividend. not at 3.7% dividend. it's a cyclical stock in a sense. it's not a utility. you're not going to get killed like the rates. and intel is not going away. i think at these levels it's attractive. >> you take a look at hp. it's up 16% over the last month.

>> with their r&d cash stock they can buy a lot of the smaller 3d companies. there is cloud. there is is a whole bunch of things. >> cisco, microsoft, we have talked. intel. all of these stocks are starting -- you're getting a little bit of rally. they have gone absolutely nowhere. but the rally you're seeing is people are looking towards safety. last quarter the stock came out and quarter revenues a little light. i think you might see a bounce in cisco. can it go from 23.5 to 25? absolutely. is it all that interesting? no. >> all right. coming up next on fast, dan revealing today live on cnbc that he has taken a stake in

fedex. should you follow suit? and later, apologies can be tough. >> i'm sorry. >> don't. love means never having to say you're sorry. >> love story. >> we know that love stories love quantitative easing. set to explain why coming up on fast.

>> activist investor speaking out today on cnbc announcing a new trade, defending his old ones and trying to start a bromance with george clooney. >> are you an owner? >> we are. >> and you like the stock? >> we do. >> and you like fred? >> i like fred. >> so you're not going to be trying to oust him? >> fred smith being the ceo of fedex.

you obviously get a better dividend but i think fedex is is a better company do i like it here? a lot harder now but i think the stock still works and the story still makes sense. ever since they had that disast rout quarter. >> you're probably okay with using 30 as your stock here. so as a trade it's probably not a bad place to get in here if you can get five on ten points. >> mike, fuel costs letting up. that has been a tail wind for a lot of the airlines. that could be one for fedex. >> bernly i would be a little bit hes tand especially considering on an absolute basis the valuation isn't nuts but it is trading pretty far above. so we might expect it to be about 10, 15 bucks cheaper if it

was traitinged a multipbls that it has maintains. we have got a stock that is up a lot on the year. >> and involvement in sony being called a success. >> we remain very bullish on japan. we wouldn't have made the sony investment if we didn't support everything that they are doing both, you know, politically, economically and from a monetary standpoint. >> he still likes japan overall and that is is a trade that you like as well? >> that's long japan, short the yen. and then you have the global

economy. it's a great place to be, you get into the up jay. >> and i agree. i think the yen is going down. i think you have to be very careful in japan. consumers in japan are not so sure that this consumption tax is going to help them. >> it looks like the battle between dan and george has cooled off. he and clooney were on the same page. >> i get where george is coming from. i would love to meet him sometime and talk these things out. i think we probably agree more than disagree about the company. he obviously got a little worked up about our role. >> therein, they are both good. >> who is who? who is who? >> i tell you, ben hast got it

going on. >> you guys were totally harsh. making fun of his use of the word cats. >> now you admit that you say it. yesterday you called me lyra o'brien pants on fire. >> thank god you went to that school. >> all right. >> what was that movie we bumped in with? >> love story. >> that's a classic. >> it is a classic. standard viewing for all incoming fresh men at harvard. >> the dough bulk back from all time highs. he says we're in the middle of a generational buying opportunity and a generational selling opportunity. find out where. (announcer) at scottrade, our clients trade and invest

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>> time to hit today's top trades. big news out of the airlines today. american airlines and u.s. airways say they have settled the challenge of the merger. >> the winner in this, as you just -- it's jet blue. this stock has not moved for years. big short interest. not a stupid valuation. closed above eight bucks. the best trade in that space is

jblu. >> the reagan national slots. they have the ability to benefit from the most. >> that's.jet blee has done so well. realize you're not going to be lewis and clark here. >> woe. >> is that low wis or lewis? >> it doesn't matter. >> one went south and one north. >> poke hon tus? >> take a loon to what berry diller said about the newly public company. if that doesn't tell you that there is very little investing going on, nobody values the company at that.

>> he looked like he was reclining on a sofa. >> no one knows what the company should be valued at. everyone is trying to figure that out right now. but if you look at the name, i'm long 25% of what i want to be long in the name. >> and finally here, the men's warehouse. the note strongly encouraging men's warehouse to excloer a merger. that is off the table on the 14th. >> it was 42% over the price at the time of the day. these guys have issues that don't make this thing a slam dunk. but i believe they want this deal. there is a lot of people that believe that directors at men's warehouse have the issues here.

the other argument is that you have 40% of the base therefore it's a win win. >> exactly. new highs in today's session for both sides. >> one to buy and one to sell. this is the fast advisor of the day. >> you really did get my pulse going. i are give you one trading tip. we have a thing called a value compos it. back to 1963, returned to about 17.5%. tesla is one of the worse valued companies in the value compose it. >> what is amazon? >> also up among the worst valued. >> so that doesn't bode well?

>> a ha. >> that would tell us to avoid both of those names. >> okay. we are going to commercial break. in march of 2009 we published a piece saying generational buying opportunity for equities. so inflation adjusted basis for the u.s. market. the ten years ending february 2009 were the second worst. first were may of 1920. we were not interested in the carnage, we were much more interested in what happened one, three, seven, and five tens afterwards. there was not a negative number in all 50 cases. going from that inflection point, three, five, seven, and

ten all positive. now of course when we did that report, what we heard was contradicts. >> you are, but that wasn't the right point. >> i said i will stipulate that. so we went on the box and got very little traction from it. we still think these numbers are going to continue. i actually would have written the second piece which is called a generational selling opportunity. but i didn't because of qe. and i didn't know what was going to be going on with qe. >> you're talking about a value kpos it. and here we are.

three years later, which isn't bubbly but certainly not cheap. where do you make this call? >> generally speaking we say right now that the u.s. market is fairly valued. we think international markets, europe and asia are much more fairly valued. >> nermny is more valued than the united states. >> if you take it as a whole is and look at all the various stocks in all of the markets you can find a lot of super cheap stocks that are financially strong etc. when we're looking at a market, we're losing out on a lot of the cheapers. >> so let's dig deeper. it soinds like you don't want to buy overall indexes. so one of them, sea gate

technologies. subject to pricing and margin pressures. >> that is is a great example of a sock that r that is cheap. price to cash flow, financially strong, in other words, they're not taking on a lot of debt. they're not using external financing. quality earnings. the accruals are very low. they are not playing monkey business with the balance sheet. finally earnings growth. after you make those four cuts we then apply this concept of shareholder yield. that is dividend plus buy back yield. those are the factors that we're looking for. we're not saying you have got to do this.

but c gate is paying out double dijtd return to investors. finally we had a look at every market environment since 1927 there were 16 of those periods. interestingly enough, in 80% of those periods, u.s. stocks were positive. but in 12 out of the 16 periods. added expossess return. >> got to leave it there. guy, i want to go to you, did you say at one point to short western digital? >> yes. probably in april, the best short idea was c-gate. interesting. that's what makes markets. i think at the end when stocks can become a commodity, you get

in trouble. >> all right. the s&p 500 up nearly 150% and one former fed official wants to apologize for that. the man saying sorry to america is coming here on set. find out why he is asking america for forgiveness. that's next. ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪

>> welcome back to fast money. we are live at the nasdaq market site in times square. a former fed official saying he is sorry. apologizing for his role. who managed the fed's 1.25 trillion dollar mortgage backed security from 2009 to 2010. thank you for coming with us. >> thank you for having me. >> it is very provocative in terms of saying that you're sorry for all of this but your implication is that none of qe actually helped.

>> right, and then they fell. >> i wouldn't actually argue that it didn't help whatsoever. we have got to look back at when it started. announced on the day after thanksgiving, i'm sorry, 2008. i believe that at the time it was just one more tool that the fed introduced to try to help the economy. my point is that the idea that very quickly it is becoming obvious that it was not working in the way that it was supposed to. and businesses actually have

access to credit. and basically at that point, it's done the fact that the fed continued to double down on this poli policy. >> the willingness to extend credit has actually gone up since 2009. it does seem that it has helped in terms of access of the average american and from that we have seen increased home purchases. we have seen home prices rise as well. take the program that i was managing. i had a lot more hair. and the reality is that when we started from january 6 until march 31 of the following year, there was a net decrease in mortgage lending.

so we can talk about the idea that loan officers may have been more amenable to lending but the real numbers indicate that lending had issues. we had lending issues. and ultimately there is undoubtedly been a substantial wealth effect. 50% of americans don't own a stock. there is is a real question as to whether that works compared to the huge costs that the program has. >> i'm glad you brought that up. the stock market has basically said because of qe we're never going to have another recession again. is that view shared by the fed?

after 300 years of central banking? >> it's a place that i care about deeply. these are very smart well intentioned people. i don't think that they are so naive to think that the markets are now fixed. i think the real issue is that the fed has expanding its tool kit. and after that, the fed back pedalled. what's going to happen if we go back years further? what -- the point i made at the very end of the piece, which is that unfortunately we live in a country in which our political system is a crisis -- it reacts to crises. that's when we see meaningful change. we had this moment when the crisis hit. we had this real potential for

change. with have taken the banking potentially a cartel. and the real question is what's our economy, where's it going forward? >> we got to leave it there. thanks for your time, appreciate it. >> i think the fed is a stuff job and they have tried to be too transparent with markets. that's another big problem that we have here. mr. fisher says this is financial recklessness. i wouldn't be that extreme. i would just say we are in a world of financial repression. we're at negative real rates. people are forced into the stock market. i don't think that stocks are a bubble.

>> well intentioned ideas, well intentioned design. it works in theory and text books but i don't think it has worked the same way in practice. i don't think anybody knows how it unwinds. i don't know how it if it ends well, there will never be another downturn ever. they should have started tapering then. but, you know, not everybody is perfect. >> we are in the first big week of retail earnings. but some september call traders don't see much upside. >> we saw it in three names.

as you mentioned, all of these are due to report. >> and kohl's? >> all of these stocks are not ludacrisl valued. it's not thing, too, which is that this is the one of the three that is trading essentially at all time post crisis highs. specially what we saw were opening buyers of the november 157.5 puts. or below 56 by the end of the week. >> coming up next we will hear from our gsh .

>> it also said it expecting between 300 and 303 million dollars in sales for the full fiscal year. >> let's bring in our self-proclaim self-proclaimed pot belly. >> if there are two things i know it's sandwiches and earnings rortd. >> i think if you're looking for a growth stock this company is only in 18 states. >> josh is taking the peter lynch theory.

it doesn't mean you have to go to every single pot belly. >> i'm at pot belly right now. extra mayo. >> mix a salad. they have salads there. >> i got a salad but it's on a ree row roll. >> thanks for phoning in. and sticking with food, cramer sits down with the ceo of d del friscos. >> what ken griffin would do in the markets if he had one wish. it's as simple as this.

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>> welcome back. in case you missed some of today's top moexs, here is a rapid fire recap in tonight's executive edge. >> the vast majority of our cases will still be settled under a no admit no deny protocol. it's very important in some cases to get the admissions. >> states that were opposed to

the merger of amr and us air have reached a settlement. >> we don't have a good legal justification for breaking up the banking system but if i could wave a magic wand, i would break them up. >> i fundamentally think that is wrong. we have a duty of care to treat everyone the same and fairly. i want to find incidences where we can change that behavior and fix it. >> we have the whole world on a sugar high and the question is will he come back? when she gives testimony to see whether or not she will get the job and i hope she does. will she say we have got the exit vatty planned? it should occur at a time when the economy is at the take off stage. >> you read between the lines and it sounds like he is saying

that the system is rig ged against the small investor. >> everyone feels as though they don't have a fair shake in this game. if you have a longer toerm idea, it really doesn't matter. >> i don't know that she is going to have time to get into what we expect. the treasury market is already pricing in. we're back to where we were when the mark was expecting tightening. >> time now for pops and drops. big mover of the day. >> the newly separated company. revenues are down for overall business and down significantly more overseas.

>> western refinery low. i think there are more guys that need to be covering here. here's the thing, the price action was awful on this. >> short interest in this thing. valuation is not crazy. i think it can trade up to 126789. >> and burst solar. >> i will take this drop on fundamentals. if you look at a stock that has free float as high as this one does, i think it goes higher for an industry. stay in the name.

>> farmer's cologne draws inspiration from cowboys, ranchers and farmers. notes of wood, earth, and leaves. sells for 110 bucks a bottle. but for the farmer, the price is utterly worthwhile. >> just don't even read any more. it is not dangerous to cows. >> do we hire people to write utterly? >> it takes talent. >> probably gets the juices flowing. >> genius. >> are we trying to attract cows or people? >> i don't know. >> first moves tomorrow when we come back.

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>> all right, final trade? mike. >> this year's underperformers. >> tim? >> a big pull back. jump sbak. >> beakers? >> gold needed the whole 1280. it didn't. >> yahoo!. i'm long. that's how i'll play.

>> the crow's nest. f-5. >> same page. >> you wearing a jacket? >> i'm melissa lee. thanks for watching. see you again. "mad money" with jim cramer 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 promises to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. my job is not just to entertain you, but to teach and coach you so call me at 1-800-743-cnbc. my co-hosts were spot on this morning asking me about when is enough enough. why