tv Fast Money CNBC April 2, 2014 5:00pm-6:01pm EDT
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selfie? >> put the bottom of selfies, as well. >> she's hipper than i am. that's not saying a lot. "fast money" is coming up in moments. melissa lee, what's on tap? >> this time of day, you get a little hungry, right? we brought some chips. you know what's special about these chips, kelly? >> they're not computer chips? >> they are -- well, you can eat them. >> some ways. >> they're 3d printed. >> oh, wow. >> 3d printing chips. we're going to 3d print crackers. >> wow. that's a scary thought for what can happen in the future. melissa, over to you guys. >> thanks. "fast money" starts right now. live from the nasdaq market site in new york city's times square. i'm melissa lee. pete najarian, john najarian, karen finerman and guy adami. and amny unveils fire tv. shares of netflix did move slightly lower today.
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pete najarian, what did you make of fire tv? >> it's an interesting concept. but the thing we talked about is the pricing. you look at some of the pricing for this tv. and you're talking about the $99 level and all the rest of it. that's more than people expected. and because of that, i think that's why it wasn't embraced. why the stock didn't react. people were looking for something a little bit bigger. some sort of an announcement than what they've got. when they saw the pricing, they were disappointed. >> too expensive to compete. >> when you look at that versus the competition, $99 for what they expected. >> it's more powerful and offers more functionality than apple tv, as well as google chrome cast. >> it does. but the google chrome cast is very easy to plug in. it's a usd right into the side of the smart tv. and it works out of the box. these you have to hook up to the tv are slightly different. and i love apple tv. that's what i use, melissa. but i don't know that the $100 price point, to pete's point, is where amazon usually comes in.
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they're usually one of the lowest prices in the model. i mean, take a look at what they've done with kindles and so forth, in terms of competing with the ipad for ereaders and so forth. i don't think this is the right price point. google chrome cast at $35. i would not be at $95 for amazon. >> this is part of the malaise, that we've seen in terms of google shares in the past few weeks or so. >> i hear you on the google. can i -- >> excuse me, amazon. >> amazon, to me, the last quarter was not good. and for the longest time, people looked past valuation. gave them the benefit of the doubt, for many years. and the stock did well. that quarter unearthed some of the fleas it has. for the first time in a while, i think this could potentially be the most important quarter they report for the last few years. the stock has to prove itself. and it has to be proven in an earnings release, at the end of the month. april 24th.
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i think you stay away from it here. it told me everything you need to say. it's lower than it was, when they reported. and the tape has done extraordinarily well since. >> i wish i could remember the analyst who made the comparison with amazon and walmart. comparing the stock run-up and the favoritism to walmart's growth stage way back when. and walmart entered a period when it stagnated. >> walmart, for a decade, had to grow into their multiple. instead of it being a great short, if you thought walmart was too expensivexpensive, it s for a decade. if amazon did that, stagnated for a decade, i think it would be expensive at the end of that decade. whether that comes to pass, who knows? but if guy is right, and heeds been right on this one, if this is a quarter where they don't get a pass anymore, there's a lot of room down before valuation reaches. >> and the room could be like an
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elevator shaft. if that's what happened. i'm not impressed with the fire, even though it has a great voice interactive. we saw how that works today, in terms of the user saying, what he wanted to see. he says, nick nolte. and it finds him movies on amazon fire, where nick nolte is starring in the movie. that's kind of clever. and it gets the point across that it's a voice activated thing. >> are you talking about the gary busey ad? >> yeah. >> there's a lot of strange things about this amazon. how come there weren't any free trials rolled out along with this? also, why was the announcement made in new york? just a news conference, which wasn't streamed, which seems odd for a streaming tv product. look at this ad, starring gary busey. >> if you're like me, you like talking to things.
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♪ like -- hello, lamp. hello, gary. see? this new amazon fire tv listens to me and does exactly what i say. gary busey. >> yay. amazon, fire tv. >> it makes the point. that's clever. that part of it's clever. >> is that why you're going to buy fire tv at $99, as opposed to apple tv or chrome cast? >> if the prioduct is good and the price is wrong, we've seen them adjust prices before. >> when the cheapest ipad was $399, let's say? did he come out with $399 with the kindle?
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never. it was $279 or $199 for the down and dirty version. i don't know if you can come out at a high price point like this, when google is out with chrome cast at 35 bucks. >> and it's like with prime. they gave us the price range. they were below of that range with the high end. people could suck it in. it could have been $129. it's actually 99 dlsh. when you look at the $99 price target, that's a problem. >> let's get more on what is at stake for amazon. bring in michael pachter. michael, you put out a note on the back of the release. and you called it underwhelming. in terms of the longer-term view on this, how does it fit into amazon's strategy? do you think it will help amazon, whether it be because it's gaining people to get into prime? or it's keeping prime people? prime customers? >> when they bundle it with
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prime instant video, i think it will help them all-around. they will sell fire tvs. they will get people to use prime instant video. they can upgrade those people on crime. that costs them nothing. they are committed to streaming content. they're never going to hit the minimum guarantee. they ought to give it away. they have a server capacity. that really shocked me. that would help them because ultimately, they could capture that netflix crowd, especially at the lower end. i think they could start to upsell prime to people who get hooked on amazon prime instant video. just selling a device is coming way too late. it's just like apple tv. it's nice that it gets mobile games. so does your tablet. so does your phone. who cares? and unlike the kindle, which was the first real commercially available ereader, this thing is coming after roku, after apple,
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after game consoles, after apple tv. way too little, too late. the extra features don't justify the same price point. i agree with the panel. they should have discounted the price or give you a value with the fire tv to induce you to buy it. >> does netflix have anything to worry about at this point? the stock today traded as if it should be worried. >> as much as it pains me to say so, no. netflix has nothing to worry about. this is actually good for netflix. this is just one more device. this is one more way to access netflix. and my associate pointed this out to me. netflix are masters at promoting their product. they were mentioned during this amazon press conference. amazon threw netflix out here as a selling point to buy fire tv. brilliant of netflix. this is a positive for them. the absence of the negative, which would have been bundling prime instant video with this device is a positive for netflix. >> i'm not trying to play the
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semantics game with you. you have an underperform on netflix, with $175 price target, which suggests, from current prices, basically, a 50% move lower. why wouldn't it be an outright sell? and how would clients participate in that? is it selling the stock shortout right? i'm just curious. >> my sell rating on netflix is based upon my view that netflix is caught between pinchers. they have the content guys on one side charging them more. the isps charging them more. and they have to raise price. and i think amazon gets unbundled at a lower price. and netflix sees slowing growth and the price comes down. that's taking years to play out. for me, web bush giants don't listen to me on this one. no one's gotten stung too badly. i thought it was going to happen
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today. and amazon surprised me and disappointed me. >> we're going to leave it there. thank you for your time. michael pachter of web bush securities. let's get the netflix trade on this. he says, it's not going to impact netflix. >> they weren't making big bets on that, either side. bullish or bearish bets. did it move half a percent. it was a nonevent. and real quick, melissa. if you have siri, which you have on your iphone, you have the ability to control your television, if you link up your tv through apple tv and many other services. you can basically tell it what you want to watch. and that's on your tv. so, i don't think this was absolutely -- michael's right. a device that doesn't do anything unless you don't have a phone that listens to voice already. >> we do have some news on tesla. i want to go to dom chu back at headquarters with the latest. >> so, this is the next chapter in the dealer or no dealer saga
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with taesla. they have gone to new jersey and intend to appeal the ruling that new jersey put into place, banning tesla from selling cars directly to consumers. the rule that you have to have a dealership franchise agreement to sell cars in the state of new jersey. in this case here, tesla filed that notice last week with the appellate division. they intend to appeal this ruling. the next chapter in new jersey with tesla and of course the dealer franchise model. back over to you, melissa. >> not too much reaction in the after-hour session. we had a big move higher in the regular session, up 6%. and big news about sales in norway, which is tesla's number two market because norway hands out huge incentives. >> huge fan of norway. >> do you? yeah. >> i'm not goofing. on monday, we talk about tesla. and what we said was, i thought the stock had a short-term bottom. you could trade it because the
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news flow was such that it was probably the next round of news, is going to be positive on to march. that's proven to be correct. that stock closed at 208 on monday. and now, you have it 10% higher. and i think you continue to build on this. once again, the 225 comes into play. but again, it's trading in the new. and for the foreseeable future, that news flow is going to continue to go. >> and it bounced off the moving average. 208, 211, somewhere in there. the stock has hit twice and bounced immediately to the upside. microsoft making more big announcement and taking direct aim at apple. can it really compete in the smartphone wars? we're live at the build conference. that's next. and all of the food that's fit to print. we'll introduce you to the company that's looking to 3the print your dinner. yes, we will be tasting the food ourselves. that's ahead on "fast." [ grunting ]
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i'm taking off, but, uh, don't worry. i'm gonna leave the tv on for you. and if anything happens, don't forget about the new xfinity my account app. you can troubleshoot technical issues here. if you make an appointment, you can check out the status here. you can pay the bill, too. but don't worry about that right now. okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. ♪ microsoft announcing new features for its windows phone, with a siri competitor called
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cortana. >> today, at this conference, microsoft executives introducing new vision, a new strategy. also a new feel. sat satya was on stage. and he was talking about his vision for the future of the company. >> our goal is to really built platforms. create the best end user experiences. the best developer opportunity. and i.t. infrastructure for computing or mobile-first, cloud-first world. >> you listen to nadella today. and i can tell you had to be impressed with his knowledge, his expertise in the business. and just the way he related to the 5,000 developers. he was so comfortable with this audience. also on stage today was stephen elop, introducing new phones, including the five-inch display. new colors, improved camera. he introduced lower-cost phones.
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some of which will be available here in the u.s. in july, for 159 bucks. a very aggressive price point there. two more updates to talk about. windows phone. you heard talk from executives about a more flexible windows phone. and they unveil a microsoft's answer to siri. and an update on windows 8.1. again, the theme of flexibility. it will be easier to use if you want to use a mouse or keyboard. of course, windows remains the cash cow for microsoft. it's been its foundation product line for 30 years. still generates about 30% of the company's profits. both of the updates, by the way, made free to hardwaremakers. that's microsoft trying to strengthen and broaden that ecosystem. >> thanks for that. josh limpton, from the build conference. and joining us is daniel ives.
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great to have you with us. the stock had a major run-up into this conference. and hit a fresh high at today's session. the highest postbubble high it's seen. what do you make of the announcement? >> it's really nadella lays out the cloud vision. there's been a lot of frustration for microsoft. and starting with office for ipad and moving to mobile and potentially tablets. you finally have a pilot on the plane that's going to navigate microsoft towards growth. and again, talking the talk and walking the walk are two separate things. >> dan, quick question for you. everyone is focusing on mobile and the cloud. as far as the cloud's concerned, is that enough of a kicker to start to make you look at your price target of 40 and maybe start thinking of a 45 or a 50? >> yeah. the key, really, is microsoft going to be successful cloud player? nadella, that's been its corp
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competency. for us to get more bullish, is the cloud to have success. but really mobile. the elephant in the room continues to be nokia. they need to be a better player. and a bigger market share on mobile as well as on tablets. if that's successful, that gets us more positive. and it shows that nadella is the real deal in terms of turning this around. >> dan, it's karen. even if they come out with a better product, does it matter? are they too late? >> look, they're late to the game. and i would call nokia a hail mary throw, in terms of what they're trying to get there. it's going to be a huge uphill battle for them to become a bigger player on mobile. i'd say, a better chance of me teeing off in the masters next week than that happening. and nadella recognizes that he needs to make the changes. and i think it all comes down to a more cloud-centric platform.
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potential of windows 9, which could come out next spring. that's how you get developers, consumers, enterprises to a more integrated microsoft. >> dan ives on microsoft. what's the trade? we've seen a huge run in microsoft. you mentioned cloud, which could be huge growth. but yesterday, they announced price cuts to compete with the price cuts being made at google. >> the guys have been on it. the trade on microsoft, and i'll stick with this. you stay long into their earnings release. i think it trades to rick sureland's level. and at that point, you look to take profits. that's where at least a certain point, you can say comfortably, maybe the run is at least going to stall for them. but i think you see it up 12% from here. that's what i think. >> and i think satya nailed it at the conference, melissa. from what i watched and what we've heard on that clip we just showed. he seemed to have a comfort in front of the audience. and i think a lot of those 5,000
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developers there are going to be aggressively developing for what he and microsoft are doing with the cloud. and with the new mobile devices they're putting out there. i give him a lot of kudos. i think this is a great start. >> i think it's the cloud and the developers. he brings swag. >> for the first time microsoft has swag in a long, long time. >> since the days of bill gates. and he didn't have the same swag as we got on steve jobs for so many years. when he's on the stage, he has a presence. and i think the communication level with the developers -- it's very reminiscent of the good old apple days for me. and you look at the $83 billion in cash, there's a lot of reasons why i agree with guy. >> let's get a market flash with dom chu. >> how about a smaller player in technology? irobot, the maker of robotic vacuums and mop, they have authorizing a stock buyback program. they're going to start may 1, and go through the next year. again, the shares are up about
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the company will incur a $30 million charge in the first quarter as part of the job cuts. this could be a tough quarter for the sector. jpmorgan highlighted a note about cisco, that it's an exceptionally weak switching quarter. >> does it pull back on this news? not necessarily. if it does, if you can get the stock in the middle of the range from 20 to 26, let's call it 23 1/2, there's value there. it's had a good run. and you have the double-bottoms around 15. that's how you have to play the stock at this point. time for unusual activity. and pete has been watching move in an energy name. >> they were rolling out of april. the april 21 are going out to the 23s. and you look at the october month. the 20s against the 29s. just huge massive. 15,000 of the call spreads were purchased today. somebody has been betting on the stock that it's going to go through the 52-week high and
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maybe make an explosive move to the upside. i do own the calls. but i own them from yesterday's activity. i'm going to try to ride it for a few more weeks. big day for google kicking off our top trades. it's entering its two-for-one class split tomorrow. they will trade under the ticker googl. and goog, after the split. >> if you own the goog now, tomorrow you will own googl. and it should trade at half the price. all things being equal. and you will own another share of goog. i don't think this really should make any difference. there is a mechanism to make them trade equal. it's not exactly dollar for dollar. maybe there's some difference there. and there shouldn't be any different. one thing i think the googl kind
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will be coming out of the s&p in june. that might -- i don't know. i wouldn't trade around this for this event tomorrow. >> and nobody was really doing so on the options that i could term. it was relatively light valium for google. >> do you buy the argument that the retail investor is more inclined -- it's all the same. just divide it by two. that smaller investors would be inclined to buy google because it's half the price? >> i think they would be more inclined to buy it if it was one-tenth the price. i think the small investor could get in there much more easily with less friction. and they could actually afford to hold a 1,000-share position. where it is right now, very few retail investors do. >> and the option contracts we were talking. prohibitively expensive because the stock is so up. next up, treasuries, bond prices lower again today, following two pieces of economic data on employment and factory
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orders. the ten-year yield at three week highs. >> i think it's more on the back of that. the tlt was 111 on monday. the drop has been significant. the four-point move is pretty significant. i think we see lower rates. there's a little bump in the road. it's broke out to the upside, meaning rates can go down. that's the camp i'm in. but you have to take this into consideration. i think we're going to see 115 in tlt. >> the first rate hike could be the first quarter of 2015, which is earlier than what a lot of people are expecting. >> a lot of shorts and mights. i think they're just trying to -- they're ratcheting the talk. i don't think they have any interest in raising rates. mankind getting a major boost for its drug. if you had listened, you would be ahead of the trade. plus, take a look at this
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welcome back to "fast money." we're live at the nasdaq market site in new york city's times square. the debate over high-frequency trading is heating up on the heels of michael lewis' new book. it was an exchange between two ceos that stopped trading on the floor of the nyse yesterday. >> michael and brad, shame on both of you for falsely accusing thousands of people and possibly scaring millions of investors in an effort to promote a business mottle. >> high-frequency trading should be eliminated. >> it's not his book. >> it's not my book. >> are you an investor in brad's exchange? >> no. >> i'm just asking for full disclosure. i'm being a journalist. >> are you insane? >> no, i'm not. >> i didn't go looking to write a book about him. i'm trying to figure out what is going on in the stock market. >> lots of people are wondering
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that. my next guest has the only dark pool. and he thinks high-frequency trading benefits few at the peril of many. great to have you, seth. >> good to be here. >> a lot of people out there might not be familiar with liquid net. where do you fit in to the discussion? your exchange operates similarly to iex, which is brad katayama's exchange. >> we started 13 years ago to solve a big problem that the institutions have. that the assets and management have grown so large, the orders are so large. the average execution size on the exchange and brad's exchange, is about 250 shares. and what the high-frequency traders do, is they see that supply/demand and balance come in and trade ahead of it.
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liquid net matches up, we have a community that we allow them to trade large blocks of stock between them. our execution size is anywhere from 100 to 300-times that found on the exchanges. >> let's get right into it then. is the market rigged? rigged has a -- not even a negative connotation. it sounds like the market was set up at the expense of retail and institutional investors. do you think it's gotten to that point? >> look, anytime you have a whole bunch of different type of investors and traders in the market, some are going to be taking advantage of others. so, you can't paint with a broad brush and say everything is bad or everything is good. there's some high-frequency traders that are good and some that are very bad. and the ones that are bad make a lot of money at the expense of many. they make a lot of money at the expense of all of the people that invest their money into the mutual funds and the pension
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funds. that's a huge tax on all of our returns. is the market rigged? there's bad things in the market that have to be fixed. and more important that the retail investors believe that the market is rigged. and that has to change. >> i agree, seth. this is jon najarian. i agree and i applaud you with what you have been doing with liquidnet. that's a better model than many of the systems that i would have been right there with michael lewis and with -- i would have thought that that was an outrage that mr. o'brien was saying how wonderful bats is, when so many of the small trades get jumped ahead of. and we're talking about the t-rexes that are operating at liquidnet. we're not talking about 200,000-share prints, 35 lots, 200 lot, even 500 lots, moving markets or at least people trading ahead of them over and over again, trading ahead of the entry and exit of all of these trades. that's why i'm against that form
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of high-frequency trading. >> i agree with that 100%. you have to assign some of this blame to the s.e.c. for approving all of the different order types that are all of these exchanges use and help to facilitate this type of trading. from our perspective, we did something that's not brain surgery. there was a wholesale community that resulted from the big bull market starting in the '80s. and you have to create a wholesale market to allow them to trade efficiently. you eliminate a lot of the signals that start the high-frequency trading against them. >> seth, we're going to leave it there. great to get your perspective. let's stick with hft here. there was unusual trading in shares of ndaq, which is the nasdaq. ahead of michael lewis' "60
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minutes" segment. it makes more sents as many of the large option trades do, when you piece together the events because you had the interview. you had the trade. then, you had the fbi announcing the investigation some time in the 5:00 hour. >> certainly, a lot of the things do end up starting to add up when you piece these things together. and this one is playing out in front of our very eyes. sunday, with the interview, as through the week and yesterday was a madhouse on the new york floor. it comes down to the proprietary feeds. if everyone has the same access, that's why the term rigged i think sells books. but i think it's not really an accurate look at the market itself. i don't think the market is regulared. i do think it's unfair that people have access from a speed and a depth perception that no one else has. >> i want to get back to the notion of ndaq as a proxy for high-frequency trades.
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it has moved a lot. look at the chart of ndaq and how it's done since march 18th. that's the first headline from the new york attorney general's office 10% since then. how do they make money off the hft? good analyst source. 10% of revenue between 15% of earnings from hft-related sources. 10% of revenues here is the estimate from a walt analyst. >> i think personally, you have to be careful being short the nasdaq. there's headlines out there you could partner up. any of the headlines, this stock goes up. so, i understand the reasons to be out of the stock. but the reasons to short the stock, you have to be very careful with that one, i believe. time for pops and drops. big movers of the day. a drop for twitter, down 3%. >> since that quarter, but for the brief run from 50 to 58, the
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stock has not recovered. i thought it would hold 46, 47. it has not. that leads me to believe there are other forces at work. maybe twitter is broken for the short-term. that's where my stance is. pop for urban outfitters. >> when you go to the earnings, you saw the weakening in sales. you get 4.5 million shares. that's something that put the stock and their towing you right now. they feel the stock is at a level they want to own it. that's the company themselves. i want to own it with them. >> pop for gt advanced technologies. up 7%, doc? >> up 114% on the year, mel. this is one we'd love to have. sapphire, that's one of the things they do for the screens here. also, a big solar player. and it seems that the volume has been just screaming, as the stock moves to a new 52-week high or that close to it. >> pop for macy's. up 2%. karen? >> this is a new high for
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macy's, i believe. i i'm not sure why it's up. but they are just killing it. doing an excellent job. even up here, i don't think it's expensive. >> and a drop for cheesy perfume. >> what? >> chester chita has a scent of his own. it boasts buttery notes. it may smell like a day-old. this is not a april fool's joke. the fragrance is in new york and los angeles. go run out if you want it. snap a bottle up right now. >> i would. i would. i love the smell of cheetos. >> disgusting. does it come in an orange color? do you like your -- >> the powder. >> the great job by court right now, a little "that smell," off
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skynard. that's a great job by our crack staff. one name seeing a massive pop in today's session. mannkind soaring 73% on news today that recommending approval for its inhaled diabetes drug. the ceo spoke about the drug on "powerlunch." it is a huge product. we view this as platform technology. we can take the technology and apply it to other potential disease targets. anywhere you want rapid action. and you have to otherwise inject something. >> this is a name you've been trading in and out of for quite some time. >> a very interesting name. and you can follow this. if you want to see volatility, the $4, goes to $8, to $6. and today, with a huge pop. you obviously have to be on the right side of this at the right times. but there's a very interesting company. they still have nothing on the market yet. so, this is really something that, you know, when we talk
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about biotechs, there's different worlds. amgens that have products out there in the pipeline. and you have a company like this. so, talk about toxic, this can be toxic. but i've liked the name. i like what's been happening with the stock. and thank goodness it had a pop. >> and you believe like i do, this will not be a stand alone company a year from now. >> it will be bought. >> somebody will look at this. >> will you sell on this move? >> i trimmed. jon sold. >> what are you holding on for? >> there's another 15 days. this was just a recommendation for approval. they have to go through -- >> another pop on approval. >> i think they have something else. too tired to make dinner? now you can print it. natural machine shows off its foodini, after the break. you can get your food hot off the press, literally. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance
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co-founder of 3d printing machines. you're thinking of printing plastic bracelets and trolls and things like that. but you can print a variety of items like the crackers, which you brought with us. >> we printed these earlier today. >> so, how can a consumer -- is this available on the market right now? >> we're doing a kickstarter campaign to get production faster. we expect shopping units by the end of this year. >> how much will it cost? >> on kickstarter we're offering a special rate of $999. >> is this for the average person at home who wants to 3d print a bread roll or a cracker? or is there a commercial application, as well? >> we're targeting home kitchen users. the idea is to get people away from the preprocessed foods in the market. the crackers, for example, if you look at the ingredients, not so wholesome. a lot of preservatives.
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why not print your own. >> walk us through how it works exactly. >> you would prepare your own fresh ingredients. it's really fresh, nonpreservative ingredients. you put them in capsules. you load them up here. choose a recipe, hit print and go. >> it's 3d printing the crackers. the desk is going to town on the crackers. >> love them. >> pete najarian has been eating dozens of them. you have to cook them still. if i want to 3d print a meal, i want to print it and eat it. >> if you sell the prefilled capsules, chances are they will have preservatives. the whole point is to get people away from the preprocessed foods and packages. if you bought the fish crackers, they would have a lot of preservatives in them. you have to cook it afterwards in this particular model. we are looking at designs where
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you can cook the food inside. it will be a bigger box, obviously. and it would probably replace your oven. and people are getting their heads around 3d printed food. i don't think people will throw out their ovens to put in a 3d printed oven just yet. >> crackers seem simple in terms of 3d printing. what's the most complicated food items you can print? >> your chocolate sculptures. you can do 3d designer food. designing plates of food with different designs and what have you. it can get from complex designs to simple designs. but the simple designs aren't as simple to make by hand. if you were to make the crackers at home, you would have to roll out the dough, put them in the oven. >> you stick it in here. and walk away. exactly. >> and i have a treat for pete
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najarian. >> i love it. >> thanks for coming by. and bringing the foodini. dr. j., i'm going to go to you. we talk about 3d printing a lot. these are some of the applications that the technology has. we talk about the consumer. and the industrial side. and this is another application here. >> and you can only imagine, mel, when you can get one of these in your car. you won't have to pull into drive throughs anymore. able to have the burger right there. this is amazing. and it tastes great. >> mm. >> a number of retail stocks rally in the green. what's the action behind the move? much more "fast money" straight ahead.
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shares jumped nearly 3% today. and one trader bet the stock could rally 26% in the next six months. >> we saw some interesting options activity in sears today. it traded about three-times its average daily call volume. and the seller we saw was a seller of the june calls. and taking the proceeds and putting them towards the september 60 calls. it looks like they were selling out of an already bullish bet and moving out and down to the
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60 level, in september. you can see that the stock has been well above the $60 price target you would have to have to be long the 60 calls. i'm not sure that he's making a long bet here. this is the short interest in sears. this is not a universally loved stock. they have had negative cash flow. and they seem to be throwing anything against the wall to see if it would stick. what they might be doing is betting on a potential short squeeze. if you were short the stock, owning calls is a way to protect yourself. that might be what's happening here, i think, with sears. >> we talked retail a little bit. macy's at a new high. it was a decent day for retail on seemingly no news. >> kohl's, foot locker. i don't know why. i'd have to see it. it's a surprising move. >> would either of you bet on sears holdings? >> if i did, it would be through the options markets. much of what mike was just
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describing there. i think right now, there's so much volatility in that stock. i would have more control, to put on a call spread. and have a risk defined for me. >> and being forced out of some of the position, mr. lambert, with him being forced out of the positions, you can see squeeze has happened. and the stock pops, just as mike's talking about here, and/or collapses. and that's what i would be worried about. >> thanks, mike khouw, for that. and you can catch "options action," every friday at 5:30. coming up next hour on "mad money," from his empire of new york eateries, to shake shack, burger concept, danny myer knows his business. and in 2009, he identified over a dozen stocks set to outperform the market. find out how high his portfolio soared when he breaks bread with cramer at the top of the hour. got your first move tomorrow, when we come right back.
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wherever you are with the mobile trader app i just ah woke up today and i said i need something sportier. annnd done. ok maxwell, just need to ah contact your insurance company with the vin number. oh, i just did it. with my geico app. vin # is up to the loaded. ok well then jerry here will take you through all of the features then. why don't weeeeeeeeeeee go out to the car. ok, i'll just be outside... ok, yeah. his dad is my boss. yeah. vin scanning to add a car. just a tap away on the geico app. take a look at plug power. shares are 4.25%. kind of a rollercoaster ride
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today, as one hedge fund manager took a negative on plugs. and there was a report about a tieup with diago. but in the after-hours session, that's where it's making a big move here, following the acquisition of fuel cellmaker, relion. would you trade plug? >> i'm not in it right now. this went. it popped up to 11 and came back quickly. not my cup of tea for a long-term investment. let's hit the final trade here. dr. j.? >> oxy. i'm playing energy this week. >> pete? >> another way of playing it. sun edson. i think the stock's going higher. >> i like children's place. we're long. >> guy? >> it's fun when they sit together. >> it is. and they get to share their snacks. >> snacks. >> a good picture up there.
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>> lyondell. i chatted with pedro about this. >> chemical. >> the last quarter, they crushed it. coming into this quarter, at the end of the month. a lot of people have a price target. >> all right. thanks for watching. "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 friends, i'm just trying to make you a little money. my job is not just to entertain you but to educate you, so call me at 1-800-743-cnbc. or tweet me @jimcramer. after a day where buyers grab some of the highest growth stocks that rocketed higher in 2013 but fizzled in the first quarter. today, investors zoomed right back into coie
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