Skip to main content

tv   Fast Money  CNBC  December 17, 2013 5:00pm-6:01pm EST

5:00 pm
it's something deleted. that's standard corporate security. this is a perfect transition to irobot. that's coming up, huge things to the panel. melissa lee, these irobot, they no what you are thinking. >> kelly, do you like to vacuum? >> not a huge fan. no. >> all right. i don't mind. >> we got the ceo of irobot. >> that stock was up 17%. it is up a lot right now. we are talking to the ceo about that. all the news in the headlines by goggle and boston dynamics and drones, we will ask them about the defense business as well. >> take it away. ""fast money"" starts right now. i'm melissa lee. here's tonight's lineup. tech support at the white house. the ceos meeting with president obama today. if the companies are not on the guest list, that caught our
5:01 pm
attention. healthy expansion the ceo of whole foods tell jim cramer whether or not the stock is a buy right now. ahead of the key fed decision, we will talk to the "wall street journal" and break down what rising rates could mean for your dividend stocks. so traders are sam seymour, brian kelly and guy adame. let's get straight to our top story. the real market movers came from facebook, humidity packard and irobot all closing higher, which brings us into the top trades. >> deposited from neutral. susquehanna, facebook says it will start inserting video ads in krooek week. >> also remember, they are getting into the s&p 500, s&p 100. you have a lot of people on this
5:02 pm
friday. it started to remind me a little of the 1999ish where people worry about eyeball, how many can you get? you will put video ads on there. we will add there multiple to it. it's that type of mentality out there. how do you trade this over the next couple of days? you probably don't want to trade it until friday at the close. on monday, if you get any sell-off back to let's call it $50, i think that's the place you enter. >> i think what was interesting is that 1.1 and a billion dollars in annualized revenues by 2015 or. so that's not in the models right now. that's all upside from here. >> what i find interesting. the digital ads and 15 second ads are something that essentially youtube has been doing andrea hoob has been doing a decade. i'm surprised facebook is getting all this credit. i think what is going on is that ultimately, people are looking at mobile in the same way they were at desktops in 2000. people don't know how to value this on sem some level even
5:03 pm
though we can ultimately i think facebook has a lot of things going i think people have to repes their models when they look at facebook's valuation. >> out today as well, bullish. instagram could be worth $16 bucks a share. >> i think we are all surprised by the speed in which and how low post earning. here we are back to the levels we were right after that earnings release. we said last week that there is a very good chance in that facebook should go to 55. so here we are. what does it mean to trade right now? i think you want to take little profits into today. you had a big move. not crazy volume today, normal volume in facebook. so i think there is a chance to sit back at 52. i think a new level has been put in. >> i know we debated it being up
5:04 pm
and down, i have been fast on it three or four times. the most unique thing is the network effect facebook has. >> if it's double in 2013, you are saying it's the text stock of 2014. >> i think it will have huge incremental revenues. i want to take people back to the youtube acquisition. people said that goggle paid $1.5 billion. it was way too much for the youtube acquisition. what's the enterprise value of youtube today? probably doctor 15 or $16 billion, melissa. these things take a viral compounding effect as a result of the network. facebook's got it. they have it way better than the pier group. look for them to make youngist acquisitions. >> i totally agree with the young man next to me. when you talk about google, which to me ultimately is monetizing. when you look at the mobile hardware space, you look at what they're doing on valuation. google to me somewhere around 22 times is a much better way to play the things people are so excited.
5:05 pm
youtube is something that facebook is trying to be in terms of advertisement. >> next up, return of the pc, j.p. morgan upgrading hewlett packard. it's seeing improvements in the pc and printing spaces. tim. >> yeah, well, that's a bit of a shocker, right? when you think of pc based saying it's stabilizing is one of these second derivatives actually it's better or worse, whatever we were doing around the time of the crisis when it was about the rate of the falling knife is slower. when you look at pcs. i think it's more on the printers. 40s% of the operateing profit for hpq is where they're getting excited. it has as much to do with free cash flow and things we have been talking about. when we had our segment which was undervalued or underloved or whatever cute thing we did that day. >> it was very cute, by the way. it was good. the stock nine times is very cheap relative to itself. we all know hpq is argument in a
5:06 pm
different place. if jpm is right today on this call. you got a company with pre-cash proceed in core businesses. >> on pre-cash flow, they're saying doctor 8 billion, well abof the guidance for fiscal year 2014. >> so this is the game gainer. as long as they have the buy back to do dividends. that's all they care about. >> is that you mean at 89? >> no. >> they can get as much cash as they want? >> absolutely. to me, if i'm investing in a business, then i want a business going forward. i'd march rather be in the 3d printer business. >> if they generate $8 billion in free cash flow, doesn't that put a floor on the shares? >> not only that, michael dell was on our network last week talking about how great his business is. this company is dipping a lot better. we have been talking about it. we love the upward trajectory, the management team. this is very reminiscent of ibm in the mid--90s when they were restructuring the company. i think this is another home run
5:07 pm
stock for different reasons than facebook. a value or a stock. >> this year. >> okay. so we're marketing these stocks based on where we think they will trade in the future, not what happened in the past. so that's what? there is a lot of stocks, we know this, five five orren the backers in the result of fundamental also, they have great long term krarktistingics for different reasons. >> we will talk about western storage dividers and surging to all time highs. they upgraded today following upgrades last week from city. now, guy, it seems like a running theme here, all these stocks have had tremendous runs so far if 2013 through the year. now these analysts are jumping on the band wagon. >> let's be clear, i to the western dig was around $72. now it's north of 80. the price target was around $1,000. an evasion, these are extraordinarily cheap in terms of valuation. what the argument is they have become commodity advertised and the pc cycle is not as ro bust
5:08 pm
as analysts think they are. we had an upgrade two or three days ago or last week by city, now you say analysts are starting to get on board. i can't get my arms around this story here. i know they talked about this in april. it's one of his best short ideas. that's when western dig was about $40. so i'm not in the chase camp here. it's important to point out i have been wrong. >> western dig made a couple acquisitions in the solid state drive of flash area over the past year. >> i think you go valuation player. it's keeper. >> really? >> yeah. >> i don't know the acquisition is in here. i think people own these stocks because they become commodity adverti come mod commoditized. >> they are reasonable value plays. go for more. >> on neutral, i think there is too much capital intensity. there is uncertainty for these stocks. so it could go either way here.
5:09 pm
be very cautious. >> speaking of upgrades, do you, robot, make sure you, it seems like raymond james is getting behind the robot change as well. we will sit down live with the ceo. we will talk all the latest in the robot craze, first on the interview straight ahead, sticking with technology. a number of high profiles speaking over nra concerns. there were a few names notably missing from that list. first of all, john chambers. qualcomm's paul jacobs. ibm's virginia romedy. they cite them as hurting sales in china. hmm. is there some sort of link here, we ask? tim? >> qualcomm is kind of in hot water in china. it's not their own fault. ultimately, they are in a place where there is an investigation in qualcomm. cho enis a place where i think qualcomm, every place they have won around the world, they have won with expensive royalty
5:10 pm
stream that will go higher. in china, they won't have that. my view on smartphones is the same thing. smartphones are going that way. qualcomm is still an amazing company and a company that doesn't deserve what's happening in china to happen, but it doesn't sound like they are tears. i would say stay may not be in favor here. they're not in favor in china. there is no way to own these stocks with royalties in decline. >> look at ipm. i kind of look at this as what a retailer blames their bad sales on the weather, right? ibm certainly may have problems in china, but they've just lost a huge contract to amazon to the cia. they're also losing out on the homefront. >> that being said, ibm for trade, right around these level, i wouldn't mind belong it. ibm has the chart we put up, their stock price goes exactly with how much stock they buy back. it's almost a one for one correlation and they're running out of cash. their free cash flow is about 2 billion.
5:11 pm
they're buying back around 2 billion. ultimately, they won't be able to support i. a quick trade, why not? >> we having have been negative for a while. this ibm the stock is completely now underperformed t. last three quarters have been disastrous. because they have been. 175 is an interesting level t. rally yesterday on ibm was a the tape and b that lsi deal, in my opinion and it gave back half of it today. i'm of the belief if it stays here at 175 and doesn't bounce, you will see 157 in ibm. >> coming up, the rise of the machine, move over, google robots the rumba is nipping at your heels, sales surging today. we'll talk to the ceo next. plus a hollywood trade as amc entertainment prepares to go public tomorrow. we will tell you what hollywood stocks are worth putting in your portfolio. stay tuned. .
5:12 pm
5:13 pm
5:14 pm
[ music playing ] >> kim carnes. a nice throwback. welcome. >> amc theater is expected to price at any moment. they will go public tomorrow on the nyse. as a movie experience, not
5:15 pm
longer just about seeing the movie, itself. take a look at what jerry lopez had to say earlier this year about the guest-going experience. >> we are finding out is that when we provide an environment like this, even some of the environments that look like this but we also provide dinner pence of the auditorium, people are calling up saying, okay, what's showing at that specific auditorium? they're not just coming to the theater anymore. they're coming to specific auditoriums. we'll pick the experience and the auditorium so long as the movie is something they want to see. >> dinner, what, now, that is different for a movie experience. >> it is, dinner and a movie. >> dinner and -- >> in orlando, they're doing that, it has been very successful. >> really? >> so let's talk about the street then. it's pricing against a regal cinema, sin mark. it has a lot of debt on its balance sheet.
5:16 pm
therefore the rents are higher. >> it's going to be a tough one. now you want to play in this space, so we talk about lion's gate all the time. i will not mention that right now. i think dreamworks is interesting. the end of october is a first quarter. the problem with the stock, it is extraordinarily volatile stock. it looks like we bottomed a month, a month-and-a-half ago. the arc continues to be higher. a short interest. i think if you want to be in the space, lion's gate aside. >> it's cheaper on an eb that basis. when you look at the balance sheet the debt ratio is high. >> that means we have a slight recession. we dip back into recession. this stock could get hammered relative to the other two. so if you like the space i would go with the stuff with the less debt on the plens space. >> i like the space. they are moving into a mini
5:17 pm
luxury situation by offering alcoholic beverages, serving food like friday's oriented fast food. i think it's an interesting middle class price point. you you have to be careful because of the debt. >> tim would never eat in a place like that, by the way. >> sorry. i. >> i have eaten there with you. if i look at the media space and holiday space, i have to go back to disney which to me is a relatively expensive stock to itself where i believe the rerating is what's going on. i think these guys are hitting on all cylinders, hollywood, which has been a drive for these guys with a couple bad pictures out in the fall, they are getting back to margins and theme parks. this is, to me, a place you want to be because you want to be broadened across the entire hollywood space but also into the entertainment world. >> so, just bear with me. help me. you go up to a movie, the movies and they serve you instead of the popcorn and gum my bears.
5:18 pm
>> typically. >> now you can eat like real good? >> you can wart all over your tie. >> you are eating in the dark. >> they have little lights. you can see your food and still what up the movie. >> don't touch my dinner at the movies. >> you will be eating chicken fingers before you know it. >> time to talk small caps. big rewards, trade school, bking looking at the long-term trend in iwm. >> here's an interesting point, when the markets hit new highs, we put the banners in, should you be in? bk says no why? i get painted as a bear. here's a case you can get it if you haven't been into the small caps. a trader looks at this trend going on there and saying it is how this channel since 2012. dial 109 which we hit or 109.5 which we hit yesterday. that's the bottom of the channel line. now i have upside to 120. i go in there, i buy 112, which
5:19 pm
it was this morning. my risk is down to 109. that's 3, exit at 120 plus, that's 6 to 10 points higher from here. i get at least a 3-1 risk reward ratio, which is what traders look for. >> can i ask a question? >> please. >> inflation coming, yes or no? >> yes. >> small caps typically have less pricing flexible than larger cap, because they're less installed base. is that a problem for you going forward? >> there is more of a trade. i'm talking the next 90 days. i think this pops up to 120, more risk reward-wise. in the long run, agree, if we have inflation, it will help all stock. >> i know we're not the enableers up here. here's why i say it. because iwm puts or something, we use all the time. you get a lot of volatility inherent in the russell. all these things the inflation, the slower growth. things that may be happening or not with the fed, play with
5:20 pm
options. >> i think that's a good idea. i personally hate the decay in options. to me i don't wage trade options because of that decay. >> robots, they're taking over, apparently. not quite yet. run robot seemed that way after an upgrade. we will talk to the ceo of irobot coming up next on "fast." .
5:21 pm
5:22 pm
5:23 pm
. >> so appropriate. >> keep that gold cane in your shirt. >> keep it in the shirt. >> gold old sparks, a ro robot
5:24 pm
frenzy, boston dynamics him check out shares of irobot today soaring from raymond james. joining us on a cnbc interview, col inengel. great to have you with us. >> great to be here. >> i want to talk about what was the real force behind this upgrade and that is the rumba 800, the new series out next 84. it has aero-force extractors as opposed to other things that go around. raymond james is theying your projections will be a front end loaded year, meaning most of it will come from the first half. >> you know, i this i that it's going to be a great growth year for us. we're expecting mid to high teen revenue growth and i think that's ahead of many expectations and the roommate 80 which is huge leap forward in efficacy of cleaning as well a virtually eliminating the
5:25 pm
maintenance associated with cleaning brushes is being very well regarded. as far as front end, back half loaded year, i think it's actually going to build throughout the year as distribution on the 880 increases, and we see momentum continue to grow through the year. so it's not so front end loaded. but it is definitely going to be a strong grower for us. >> this 880 is going to sell for approximately $700 bucks. it's pretty expensive vacuum cleaner, colin. what are the margins like on that? >> our strategy for bringing new product to marketplace, certainly, this is coming at the higher end. it's got very attractive margins for us. and then over time, the technology will find itself into our mid-range products. so this is really a true innovation and probably the biggest thing volumeing since the robot. we're very excited about it. we think it will be strong for us. it's available actually today on our website and retail move it
5:26 pm
into next year. >> and by the way, in case you can't see, there is a video of the cat. i think it's actually on an 880. so that has gone viral. >> is that a volume or can you volume up the cat? >> i'm allergic. i'm sorry. it's not my fault. >> that's fantastic. >> colin. i want to ask you about the brava. it's a floor mopping device. analysts are very excited because you were able bring the cost down in the 4th quarter to bring margins up to 40-plus percent. are those the kind of margins you are looking at for the new 880 or 800 series in general? >> our target margins are the high 40s even with the new products above that. the bravo is a product we brought in through an acquisition had low margin, promised our investors we'd get it to 40 by the end of the year. we're ahead of schedule. we think there is more room to grow including that
5:27 pm
profitability as well. so our base margin target should be high 40s. >> obviously. there is news this week as you know google buying boston dynamic, primarily a defense play. 90% of your revenue is from home robots, such as the rupba and brava. 10% from defense as well as security. any goals to inceo es that percentage from defense and security? >>. >> the defense injury is very sick lick. it's tied to the sentiment in washington. it has been a very strong contributor in the past. it will be a contributor in the future, be you the timing of that growth is uncertain. so what we did last year was right size that business to a point where we feel very good that it's a it has stability. it has the ability to contribute
5:28 pm
to the company. for that perspective, you have to look at our home business as the primary driver. >> just the bottom line, better to bet on the consumer as opposed to the u.s. governor's defense department. >> in 2014, agree with that statement. >> great to see you. thanks, for your time. >> my pleasure. great to be here. >> colin engel, the chairman and ceo of irobot. good margins on this new product. >> good margins have been a great round of stock. the stock is now around 40 times current and about 25 times next year. i whob very neutral on this stock. also, you know, a couple weeks ago, they announced a month ago the ceo is stepping down. this is a guy at least was credited with giving the home robots growth cycle going for this company. i don't think you need to rush in and buy this company for an upgrade until we see how that growth comes in line. >> i agree with tim on that the remote presence, the cat has a
5:29 pm
software chip that actually potty trains it, by the way. but i think that the telepresence angle of this thing as it will relate to health care i think will be very valuable in the future. i think that's the focus of the james report. and this thing is an attractive growth story. what i do like about what he said, it's no longer a novelty. it actually will volume up the room. >> i have one. it works. >> with the cat or without? >> without the cat. >> legitimate question. >> we have breaking news here. so, no more cat video. >> let's send it back to headquarters. >> meow. meowing is meg whitman the ceo of hp. hewlett packard's ceo is getting a huge pay increasef her base salary is going up from $1 to $1.5 million per year effective november of 2013. so retroactively speaking. now, during meg whitman's tenure
5:30 pm
at hp the stock has gone up, a lot. 17%. so they've added about $7 billion in market value. but compare that hp 17% performance since september of 2011 with the s&p 500. the s&p is up 46%. the s&p technology sector is up 40%. so, yes, hp has been up since meg whitman took over. underperforming the overall mark and the sector as well, melissa, back over to you. >> thanks, very much, dom. >> we knew that. i mean, ultimately, i think the story about mech is the right one. i think she's probably underpaid when you look at where a lot of ceos are going. i say kudos to her. >> up next. will they or won't they taper? the ceo joins us live ahead of ben bernanke's big day. that's next. plus, it's official t. megamillions jackpot is swelling to $636 million. >> that itself the next drawing t. traders tell us if they were to win, which stock they put a
5:31 pm
little bit of their newly earned cash in. thank you. .
5:32 pm
. .
5:33 pm
5:34 pm
>> we are less than 24 hours away from the fed's decision on whether to start tapering its bond buying program or wait until next year. the ceo for the "wall street journal" joins us now. >> hey, how are you? >> they say a 60% chance of a taper. what do you make of that? >> 60%. he's probably in the right ballpark. i think there is a real possibility they're going to do something tomorrow. i within go out on a limb and say it's definitely going to happen. i would say this, the probability of them acting in december is greater than september. the economy looks like it's in a better place today than it did in september when they held off. so i don't think people should be surprised if they do something tomorrow. >> to get tactical about this. i think they have been. i think they will spend time making clear if they do
5:35 pm
something tomorrow they are not changing their approach towards interest rates on the shortened of the curb. how do they get around low liquidity this time of year that janet yellin is effectively coming into a scenario where she will be game on into the middle of this process? i mean, some of these things are about a process that i think the fed has got to be very concerned about it going off flawlessly. >> i think at this point they've gotten the message no matter what they do, it's not going to go off flawlessly. that's one thing that they can be pretty confident about. under your point about their interest rate guidance, i think that is also something that comes out in their policy statement tomorrow around what i have been trying to point our readers to is a speech that ben bernanke gave last month where he talked about the fed's willingness to be patient with raising interest rate after the
5:36 pm
unemployment rate gets to their 6.5% threshold. i wouldn't be surprised if that phrase finds it way into this statement. what they really want to do is kind of really cement people's expectations for interest rate hikes as they pull back on the bond buying program. one other point, as far as market liquidity goes, with certain things,itative got to let the chips fall where they may. i don't know that they're going to be spending a lot of time ruining people's christmas. they got so many other things to talk about. >> great to speak to you. thanks for your time. busy day ahead. all right, bk, it's interesting. you read various articles, some say consensus say there is a taper. some say there is taper. >> i don't think it matters all that much. i think the key for tomorrow what you want to watch for is something tim talked about and john talked about is that threshold, do they lower that
5:37 pm
tomorrow? or do they do something? this would be more drastic, lower interests on reserves,ing to offset the fact that the market may think this is less liquidity out there. >> with rising rates and yields on fixed income securities, what impact would there be on the big dividend stocks? just today 3m said it is upping its dividend, joining 20 other s&p companies that have increased their dividends so far in december which do you like? >> '03 m is one. i like verizon here. i'm going to take the contrary and view here and say that we're not going to have a taper. i think inflation is a lot lower than people think. and i think these dividend stocks will actually do better than the consensus. the consensus right now is we are getting inflation. it's time to run from the dividend stocks. >> i like mcdonald's. after a pullback in this stock. you have valuation value country, 17 times, 3.5% dividend
5:38 pm
yield. this is one of the best countries in the world. to me, are you getting away from the sensitivities i believe are coming from the fine interest rates. >> the costs have been sorted, more and more disappointed. the stock clearly hasn't performed. maybe 94 is it. i'm not sure. triple m, we flacked there on that morgan stanley downgrade. we talked about how severely punished. they got. they gave the face job to morgan stanley. at&t against 33. this stock has sold off, obviously a nice dividend. there is a lot of now talks into spachls i think anything that comes out headline-wise for at&t would be positive at 33.80. wherever it's trading. >> let's go back to mcdonald's for a second. what makes you think they will turn the corner? >> i think the global comps are pushed higher by asia. i think the parts of their model very interesting are the same places as other people getting growth. sluggish global comps are not
5:39 pm
something i worry about in the long run. it's been a problem. that's an opportunity to by this stock cheap. >> cnbc by the way the place to turn for the decision beginning at 1:55 eastern time tomorrow. followed by ben bernanke's news conference at 2:30. watch that. time now for fox and drops, big movers of the day a. drop for celgene's. >> it's from 173-ish down to 160. >> i think it's fun. we have seen telesells before. i love the name. >> pop for herbal life up 1%. >> it was up 10 yesterday. so it's a total of 11 over two days. it's a classic short squeeze. there is an upside bias in its name. >> j.c. penney down 3%. >> weekly retail sales came in weaker than expected. jc penney, i'm not sure how impacted they are. $8 seems to be a bit of a for this day. >> k.b. holmes down 1%.
5:40 pm
tim. >> on a day when you have an index print. you see a lot of pressure, a big downgrade, ultimately, people will be looking at their 4th quarter numbers out thursday and oracle is expected to be down 5%. >> and we got a drop for botox t. reigning cosmetic cure all is facing a celebrity backlash, after ten years of eraseing a-list wrinkments, hollywood a-star listers are turning the other cheek. nicole kidman saying i can now feel my face. gwyneth paltrow says she begged it off because she'd look like joan rivers. >> it's close. not really. not really. >> the point was being fa facetous. >> speak for yourself. >> oh, out on the mooch. >> all right, shares of 8.5%
5:41 pm
after they announced they will buy at&t land lines in connecticut. despite this, skeptical traders don't see any reason to get another telecom name. mike. >> hey. we saw some unusual put activity in several of the telecom names frontier about 2300%. wind stream actually was the one that stuck out, though. over 3,000 percent of its average daily put volume. part of that because it rarely ever trades puts. a little less than 400. over 13,000 today. specifically, they were buying the february 7 puts and paying 7 cents for those. this is on a strike that had no open interest. if you are buying those puts, you are making bearish bets, by february expiration, that will be a decline of 15% from where it traded today. despite the fact there was obviously news about deals in the telecom space, it looks like
5:42 pm
bearish bets are being made. >> thanks for that options action, mike. >> you talk about dividends. something raises a 12.5% dividend. i think what the yield is here. that's raising, should raise a flag. maybe these folks buying puts find something the rest of us don't know. >> check out the website optionsaction.cnbc.com. are whole foods and brooklyn a match made in heaven? the grocery chain opposite its first store in brooklyn, does the move make eight healthy pick? which two stocks do they think will double. that's next on "fast." . [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed
5:43 pm
that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. [ male announcer ] this december, experience the gift of unsurpassed craftsmanship and some of the best offers of the year at the lexus december to remember sales event. this is the pursuit of perfection.
5:44 pm
at the lexus december to remember sales event. but with less energy, moodiness, and a low sex drive,y first. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts;
5:45 pm
problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. ask your doctor about axiron. . >> welcome back, in case you missed some of today's top moments on cnbc. here is a rapid fire recap on tonight's executive edge. [ music playing ] >> i'm not extending the emergency unemployment rates for a lot of people who are unemployed, that's going to have an impact on certainly either people if they still stay in the jobs mark, you will see a bump
5:46 pm
up in the unemployment rate. will you see a lot of people who had checks not being able to get them and they will not be able to spend. >> income in the u.s. in 2013, it will be up 15%, so farmers doing the last year, business is, i think they will have the money to invest. everybody is expecting some kind of a slowdown. >> ben bernanke is addressing students at george walk university a couple seasons ago said the price controls were a terrible idea under richard nixon. he seemed not to have awareness to recognize what the fed is doing is an exercise in price control. >> take what few of us have done at time warner. a demand in viacom. it's cash gen raters, its content. those two stocks will double in the next five years. >> guy. >> 5% move, triple volume is not a good news for the stock. it's been in a nice uptrend. you had pullbacks along the way.
5:47 pm
i think you are still in this up channel. you have to be careful. you trade adco. >> healthy trade here. jim cramer, sitting down exclusively with the co--ceos of whole foods in their brand-new store in brooklyn. hear what they said about the growth prospects. >> where are we in terms of where this company is going? i know 370 stores, a target of 1,000. are there that many opportunities left in the country? >> probably more than a thousand. i mean, the market continues to grow and i think worry thinking internally that we can do maybe 1,200 stores in the united states at this point. yeah. because the world is continuing to change. >> more than 1,200 stores in the u.s. okay. whole foods up more than 2% today. so, would you buy it? >> no. not at 38 times. again, this is a stock where people are finding new ways to rationalize the multiple. i think it's an exciting time for wellness in this country. but sanity, an valuation is
5:48 pm
where you have to come back to. these guys can't price their way into valuation. >> you said earlier you have stocks that have doubled for the year? >> it's not exactly what i said. i said i like stocks based on their forward progress, not where they cam from. >> okay. fine. that's not a barrier to entry? >> i think what tim is pointing out is it is a supermarket. they have margin pressures. they are coming as they get increased competition from things like stop n shop and in their natural food aisle. so i'd be cautious here. >> look at what wal-mart is doing. that's probably the way to play it here. haines is now able to get out there in multiple distribution networks. this is the last couple quart irs the first time that whole foods have missed earnings and guided lower. i'd much rather play it otherwise. >> comps are coming down. november 4th quarter, comps 5.9%ch much less than the street is looking for. you have a goldman downgrade the
5:49 pm
next day. when valuation starts to become a concern, these momentum stocks, they get a little dicey. i think clearly this interview helped. >> all negatives. >> i know it's been a great story. >> yeah, in terms of buying it right now. >> look at this chart. you know, $56 bucks. this has danced at this level. it's been resistant. i don't think you have to buy this stock at this value. >> be sure to catch more of jim's interview. that's tonight 6:00 p.m. eastern time on" "mad money."" all right. mech ga millions drawing is tonight at 11:00 p.m. once you win, the $636 million buck, how should you spend it? the traders give you the one stock, they bet it all on next on "fast." (announcer) at scottrade, our clients trade and invest
5:50 pm
exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience."
5:51 pm
easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. my uncle wanted to say thanks for idea hub. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day.
5:52 pm
[ male announcer ] open an account and get a $150 amazon.com gift card. call 1-888-330-3136 now. optionsxpress by charles schwab. >> you traded. we traded. let's get some of your tweets. this is querky on the eve of your big birthday. buy, sell or hold, eastman chemical. >> kingsport, tennessee. we talked about eastman, it has
5:53 pm
sold off trading 74. boy. buy in whole to the same thing. bhoi or sell. karen fineman can explain. she's not here tonight. >> you will leave them hanging. >> if you are holding it, it's the same as buying it. think about it. >> you are deciding every day to buy at that price. anthony, macy's or michael kor's the next six month surface. >> macy's is our best retail fame. it's an amazing job using its balance sheet and managing its inventory. they notice how to market. so i'd like macy's great. better. i don't think that michael kor's is a bad fame. i think macy's is better. >> i went long, closed natural yesterday. within i hit the cliff, will i be flying higher or plungeing lower. >> david:. >> flying higher for $636 million, alex, please. >> i love cleveland clips. it's been all these commodity names have been killed.
5:54 pm
i think going into 2014, you get the space right you will make money. >> tim. why are the financials so weak? >> i think you had a lot of questions of where interest rates are going. ultimately, i think collarty, getting on with the fed, you look at the space there is reasonable expectations. we talked about when will we get to meaningful? city bank would be the play. i think they're a global franchise and are the ones capitalizeing here. >> i think it's a great long-term franchise. i think michael kor's has done an amazing job there. there will be interest rate uncertainty in the next two quarters. so some of these financials were weakened. long term it's great. >> all right. let's move on here. feeling lucky? tonight could be your lucky night t. next megamillions drawing happening happening in just about an hour? is that right? >> no. 11:00. five hours. >> you are not winning. >> it's 94ing a record after 21
5:55 pm
unsuccessful rounds. so in the winning spirit, we are asking our traders if you won the jackpot and you had to put it all in one stock, which one would it be? so around the horn we go. tim. >> i like clean energy. we had andrew littlefield on the desk. when i look at a company that has consistently grown their revenue stream in nat gas,er that partners with some of the biggest energy companies and industrial companies in the world. this is a valuation company that's interesting. tactically, if i win the whole thing, i can be a controlling shareholder in this company, take the whole thing? >> we're talking theoretical. >> after what? they hit you with taxes. so $341 million is the cash option. >> so i'm recommending the viewers not take the cash option. that's the conventional wisdom. i want you to take the anewty stream and go out to a bnk and
5:56 pm
get a loan. the interest rate would be lower, the net presentation would be a lot higher. with that money the after tax money, put it into google. okay. and their new robotic formation and all the other fun stuff they're doing. >> that will be a killer stock. >> not the cat robot. bk. >> you know, i like first solar here. i actually like still's strategiry as well. you want to be able to buy controlling stake in this. first solar, much high on market cap, but you can probably still get a 10% stake for agitate a 10% dividend. get 60 million a year. are you a happy guy. >> take the cash, meet me in vegas. >> general electric, having 100 million shares. >> you buy me a car, you win? >> no. >> we come right back. . >> whole foods is set to put a
5:57 pm
straw in the bag. will it take a bite out of its bottom line? i went to the newest store opening. hold on to your groceries, ""mad money"" is coming up next. . we understand the co
5:58 pm
. of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
5:59 pm
. >> final trade. >> if meg williams is watching, buy me a car. >> bank if new york mellon.
6:00 pm
>> give you another stock here in the resourceary teck. i like this one year. >> last day as a 49-year-old. guy. >> buy him a pinto. i like nuance. nuan. >> i'm melissa lee. be >> meantime, "mad money" with jim cramer starts 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 camer qaa. other people want to make friend, i'm just trying to make you a little money. my job isn't just to entertain you, but educate you so call me at 800-upon vr 743-cnbc. on a not so hot day for the market, the s&p declined .3%, and the nasdaq dipped

139 Views

info Stream Only

Uploaded by TV Archive on