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tv   Fast Money  CNBC  April 8, 2014 5:00pm-6:01pm EDT

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your depot seem to be most promising? >> a word if you could, andy. >> i would say the tiniest businesses are going to bring the city back. it's going to be 10,000 little business that is bring the city back. >> andy, thank you and my thanks to the panel. and i think kevin is going to start a bus company as well in detroit. and fast money begins with melissa lee. and i think talking some google -- oh has a google. >> yeah. i'm going to see if more people will wear it at work like me. i'm surfing the web. >> are you reading the teleprompter from it? >> it pretty cool. you got to try it here. >> lots of opportunity. over to you guys. >> fast money starts right now. i'm melissa lee. tim seymour, anthony and tara and guy. can you trust today's bounce
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after falling nearly 5% over the past three trading day. are we setting up to fall even further? guy, what do you make of that? >> those are two different questions. you got to separate them. i think you can trust. >> you can. >> we said you probably due for a bounce was way too early in the month. we thought we would bounce and i think we'll probably bounce the rest of the week. at a certain point this month i think you got to lay into it. i don't think we're going to make new highs. >> so you think we staved this bounce. yes. >> you look at what's happened over the last month. the break down of the nasdaq started in january. those are places that are extraordinary that i would not be stay with. i bought apple not because i think it's going to the moon but i think there's some levels. rotations are happening. manageris are doing a fantastic
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job. the over ccapped nasdaq i don't think was the place you wanted to be. >> do you think this was a rotation of some sort, everybody had to be in? >> not really. that's not the sense we're getting. one of the things we get to do is we have got 24 funds in our portfolio. we have real time data and able to see where people are tracking. i think this has been broad base and profit taking which i think was anticipated. there will likely be more of a correction. i think guy has got to be right, the market is probably okay. what i'm most worried about is the fed tapering. when you look at the numbers, it means there's less people buying into the stock market on a near term basis. long term on both, the liquidity is still there and fed has hammered down the interest rates and keep them low until the end of '15 we think. it's something to be a little
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worried about. >> a lot of people want to get their party hats on. you take a look at stocks like tesla or fire eye up a few percentage points. but considering they have been down 13% or so for tesla in one month. the context is terrible still. >> it is. they bounce add little. they didn't have a particularly impressive bounce today. i wouldn't fade this rally. i believe in this rally. however, i don't have a lot of faith in my ability to market time at all. i know if i pick good companies at decent valuations like a google, am i going to pick the bottom, probably not. 6 from 30, i don't know, down to 540. that's a big move. >> we have breaking news. news on gm.
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phil. >> general motors just received this letter from the highway traffic administration. it is fining general motors $28,000, $7,000 per day for failing to completely answer requests for information regarding the ignition switch recall. that information request came from nitsa last month. general motors did not answer about a third of the questions of those 170 questions. they are fining them $28,000 but it's a fine that will increase $7,000 every day and they say in this letter a complete response is a complete response and you have not given us a complete response to the questions regard this recall. back to you. >> so $28,000 right now and $7,000 for each additional day, correct? >> yeah. for a company the size of general motors. is this going to kill them, no.
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but it's symbolic of how they feel about the lack of information coming from general motors. >> thanks for that. >> isn't it symbolic of nitsa doing nothing? it's like you getting find two cents a day. >> or guy getting fined one cent. >> client point by anthony. >> it's like an nba find. it's a joke. listen, it's news, i get it. with that said, it keeps bouncing off this. it keeps holding this 34 level, the stock. the longer it stays here, the more nervous i get. as long as it holds 34, you got to trade it from the long side against the level. >> $7,000, yes, it is a joke compared to the sides of the coppers of general motors. but these the maximum allowable they can fine. it's not as though they can sit there and say let's fine them
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$50,000 or $100,000. $7,000 is the maximum allowed by law. >> so fine. but this really highlights the fact gm has not answered the questions to the fullest extent. >> that was really the biggest criticism of the hill. i think if you look at gm from a valuation perspective. i like it at -- i love it at 8.5 times next year. look at the sars number. right now it seems like the regulatory guys are two or three steps behind. i think gm is fine and wouldn't be selling the stock here. >> where are the markets headed next? what do you see in the charts so far? >> i don't think so today's bounce is the bounce that takes us to new highs. we entered the day in our view not oversold enough. if we look at this picture, this
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is 1% of the s&p 500 is currently trading it's trading average. it's currently 40%, 45%. we like to see that more towards the 10% or 15% range. i also don't think we have gotten that washout yet from a sentiment standpoint. the call data is not full just yet. i think broadly we look to fade today's bounce. it wouldn't shock us if it was another 40 or 50 points lower. maybe just 1780 as a better neighborhood before i get involved. >> in terms of what you're seeing for the rest of this year, you're expecting a historical pattern to play out. >> exactly. this is what returns look like in any given calender year during mid term election years. the second and third quarter tend to be below average. i think we're in for an extended period of chopping, not unlike
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what we saw in the first quarter. the majority of your gains actually come in just the last 12 weeks of the years. setting a good low as we move into september and ultimately the bulk of this year's gains are found in the last quarter. >> in terms of not being oversold and seeing choppiness for the first half of the year, what levels are you looking for us to go to? >> if we pull up the s&p chart over the last two years, we identifying -- we don't have it here but the average of 1760 is a better area to get involved. i think at the end of the day as others have suggested, there are still stocks to buy. while the market may be going nowhere. we can find pictures that we like. take a look at microsoft. it's a very, very good looking picture where i think weakness is ultimately buyable. still stock that is we can find
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to buy. >> 17 60. that's long ways to go from here. thanks for that. guy, what level did you highlight yesterday? >> 1834. chris, below 1834 this month and outside month in the s&p. dennis eluded to it, that's something to keep in mind. i think we're going to bounce first. i do think we'll test that level this month. if we do close below 1834 i think we'll be hoping it stops at 1760. >> take a look at this chart dating back to february 3rd. there's an -- brazil, in particular, that is the official blue market there. >> when you put in dollar terms so half of this rally. i would say at least a third has been from the fx side. especially when you consider
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relative to the s&p because there's a time people are feeling pain coming from the nasdaq, the system but if you look at the eem this is something we track every day and we look for sustainability in the trend. em is upper sus the esps. this to me is fund flows well overdone. the places that i think you would be taking profits and rotating within the class, i would be selling brazil at the 26. i would be buying korea. mexico hasn't participated in this rally at all. i wouldn't go near mexico at all. people are looking for value in em. stay in asia. watch india. >> it's interesting you mention selling brazil. because dan wrote into us. yes, he can write. just joking. that brazil had a reversal today
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down 3.5% from opening highs. the ratio, 3-1 today. massive trade on terms of the open. >> it's also very technical market. the buy locals were overshorted. they covered a lot of those positions. the other thing is if you look at the formation of eem shares, we saw 18% shares decompose down to march. what it's saying, flows are coming back and people buying some stocks. i would stay broader. >> working 9:00 to 5:00. using glass at work and yes, we will have a few pairs onset. could coca-cola be looking to monster. next on "fast." and a twenty-megapixel sensor. it's got the brightest display, so i can see what i'm shooting -- even outdoors,
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welcome back. wants to put google glass, this thing to work. otherwise known as wearable intelligence. the stock up about 3% today. let's bring in tech editor.
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he's also got one pair on himself and one pair here. >> that's true. we're google glass addicts. >> i'm sure they would love for consumers to buy this device. but it seems like it's a better device for maybe a surgeon or somebody in business. >> yeah. what they're talking about today, the glass at work, the initiative their undertaking. heads up displace and smart glasses are useful in certain professions from being a doctor to being a pipeline inspector. you can get crucial information when you're not in front of a computer. hands-free, too. if they go in that direction -- i don't think they are -- that makes it a niche product. i think they have much bigger plans than that. >> it does seem like a migration conce -- i had the sense you want to see different restaurants you like. >> i think right now they're
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talking about this in sort of attempt to change the conversation. google glass has had a bit of a rough time the past few months. the infamous bar fight in san francisco because someone was wearing it. some bars have banned it. someone was pulled out of a movie theater for wearing it. these aren't great for the product. >> why would they this that for commercial use that would be more of a niche? i would think that would be a bigger market if you had a lot of doctors, suckesuck -- surgeons pipeline workers. i think it's a market that would appreciate and pay higher premium for this product because they get better use out of it. >> you're talking in couple orders of magnitude of growth. there's a sizeable market for biz use of heads-up displays and
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smart glasses. it could be significant. the thing is a consumer market will be that much bigger. and at the same time google wills lose some control it has over the platform. some software company are basically taking out the googleness and putting in their own software. >> you would think a company that is marketing an open system, android would appreciate that. that there is a certain degree -- you know, you can customize it to the use. >> to some degree they like customization, but once you start taking away the connections like maps and search engine, they're not super happy about it. because it's a path for their platform to -- google is an ad company and want to have everything be that. >> pete, thanks for bringing and sharing the google glass with us. we always appreciate it. next up in our top trades,
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looking to target business customers as well. saying it's created a new finance for a leasing program for small and medium size businesses. sales to corporation instead of individual buyers. tim. >> it's one of the things that tesla is excited. it was a very positive event. i don't think affordability is the issue. but the ultimate question is tesla is how much of this disruptive technology has been priced in? the company has priced in a million units being sold in ten years. this makes them the fourth largest auto sales in the u.s.meu.s. to me, $200 is the place, and it's pulled back a lot. i think this valuation is not to be supported at the levels. >> soda sales in the u.s. slipping and coca-cola starting
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to feel the pain. where can it look for growth? maybe one monster acquisition. jay jay flash whanch. >> what he's that. >> that's the flash. >> pretty exciting. >> so jay jay, soda sales have been on the decline and the ruler of coca-cola buying monster has been around since monster stock. what prompted at this point? >> i think that we have gotten to the point where they have to think about doing this. the reason is that coke does a lot of business with monster. they distribute half the product in the u.s. if someone else like pepsi or bush were to buy, it would fall on a percentage. it would be creative.
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these companies trade similar multiples even though the growth profile is very different. >> the stock pressure has got to be a factor. since the beginning of 2012 coke has been an underperformer. >> yes. winter green has complained about the package. another investor cited the same reasons. >> monster, it's not like it's an $800 million -- i would guess north of $800 billion. that's significant. >> coke, i mean they prefer to grow organically. >> they just look for new drinks. >> that's right. where as pepsi has gone back to quaker oats and tropicana. smaller. coke has this 20/20 plan where they want to double their sales
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by 20/20 by 2010. at some point they have got to start thinking about this. >> thanks for coming by. john, aka flash. >> this is the sort of stock that you have for a very core long-term holding but it's going to probably tread water near term. that happens to coke time to time. look at the long term chart of it. if you tuck this away, you'll get a dividend increase, earnings per share and at some point they'll grow faster. >> still ahead, hawaiien airlines, this month is getting set to launch services. it's first ever main land china route. we'll sit down with the ceo later on. stay tuned. gunderman group.
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gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. growth? growth. i just talked to ups. they've got a lot of great ideas. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! awesome! awesome! awesome! (all) awesome! i love logistics. or how ornate the halls are. tall the building is, it doesn't matter if there are granite statues,
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. earnings of 9 cents a share. this including or excluding rather, charges to capacity at smet ters and mills. analysts were expected $5.5 billion in sales. ceos say they have record downstream profits and up treem busine businesses are up. >> thanks. this is a story. alcoa is up 20% or so. >> i think it's more than that. >> and they closed a bunch of production. they shut down smelters.
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>> let's just -- >> that's true. >> a wee bit. the trajectory in the stock continues to be higher. depending -- revenue, whatever you want to say, these eps beats and revenues are disappointing. i think people are starting to warm up to alcoa. i think the stock still has room. it wouldn't surprise me to see the stock north of 14 bucks this year. >> look, i think copper prices is the place to rally here. look at freeport and southern copper. >> a heated fight broke out in ukraine's parliament today in the eastern part of the country. it's the latest act and the drama that began when president putin seized crimea last month. now seeing if his control can be
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tempered. jackie joins us in maryland. >> well that's exactly right. as the tensions continue to play out in russia and ukraine, this is fast-tracking the debate over u.s. exports of natural gas. ukraine relies heavily on russia for natural gas. so does western europe. that means russia has a strong bargaining chip here. energy. and it's using as it's making strategic moves. u.s. could level the playing field, one way to do it to export gas. we certainly have enough. the eia says there more than 2 trillion per supply. putin is the best lobbiest that the industry could hope for. >> if you look at what's going on in the european community, the posture of the u.s. to provide additional energy to the world is going to help our allies with their negotiations.
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>> now that was dominion's vp of lng operations. here at the cove point plant, if they get the approval they need, they are hoping to be operational to export by the end of 2017. it would be the first export operation on the east coast. environmental groups are announcing strong opposition to this. they are worrying about the increase in fracking. they are working about what this could do to natural gas prices and calling this the keystone fight of the east. the administration right now in a very tough spot. certainly has to act swiftly to be able to apiece the international community but makes to appease and protects the interest here at home. back to you. >> thank you very much. karen, if we are to believe this is going to go through and the u.s. is going to be able to export natural gas, how would you treat that? >> we talked about golar which
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is in the business of transporting lick wii identigas. if russia does that, that is -- that would be a gigantic disruption. >> coming up next, the biotech name that targets the rarest diseases many other big companies scared to go after. plus, happy 110th anniversary for our home in time square. we are trading all things made famous, from the big boards, to the knew year's eve ball. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families
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i love hawaiian music. so relaxing. hawaiian airline shares are soaring. in 2013 hawaii carried over 9.9 million passengers. come april 16th they will be jet
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setting to beijing as well. let's bring in the president and ceo of hawaiian airlines. a lot of analysts praise your airline because you're willing to cut routes of the past year and adding such as honolulu to beijing. what are the areas you see for growth? >> we actually are pretty good on growth. we're playing a macro shift towards people getting to that kind of income level where they can contemplate international trips. so when we look ahead, we see a lot of growth and prospect. >> in terms of honolulu to beijing nonstop flight that starts april 16, do you see adding more routes specifically to china? where are you expect there to be route changes? >> well, we're expecting to see route changes to come in the
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form of additional routes. when we start in beijing, we're waiting to see how that pans out. we have high expectations. for the route, if it meets the expectations there are an enormous number of centers that could provide us with traffic for service to hawaii. >> you can't argue with the way the stock has performed. yesterday you announced march traffic and it was -- i would say disappointing. was it weather related? what would you say? >> well, it was a little bit of what we call the easter effect. easter impacted positively march numbers last year. this year easter is later and therefore, we don't get the uptake in march but the bigger issue there is that as we start these new international routes, typically the load factors are lower than they are
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domestically. load factor by itself is not a particularly good indication of how things are going for the company in an environment where people pay more to be on an international flight with typically less load factors. you can be quite a bit happier than you are with full flights of people paying discounted tickets. if you go back over the last couple years, our international network with our low factors has contributed positively to our results. >> mark, a lot of analysts like your stock. steve questions the valuation reflecting best case scenario does not reflect the risk of cap x plans. can you tell us about your need to spend more. >> the cap x is the introduction of new aircraft into our fleet. we're just coming to the end of a delivery stream of brand new
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a-330s. they allow us to reach asia in the first instance. and we're taking a pause before 2017. we start taking delivery of some more high-technology cost effective narrow bodies. if you look at all our leverage statistics, we're strengthening the balance sheet despite the fact ewith ewe're taking the adl aircraft. the expectation of being a positive cash flow in a short little while from now. >> thanks for your time. appreciate it. mark, the ceo of hawaiian airlines. a group that has had tremendous performance as well. >> great -- it's great fundamentals. there's going to be continued margin improvement. i would also add delta and american airlines to the list of stocks. >> time now for pops and drops
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big movers of the day. nike up 3%. >> followed by the next move up to 80 in mid march. sell off down to 70. i think you traded on the long side with a $70 stop. >> dr. pepper, snaple down 4%. >> there's good reasons why the software segment is sluggish. i would avoid this name. if you own it, hold it. but stay away. >> know nokia, tim. >> they would allow microsoft equipment transfer. this is very good news for the company. $8 is the level i think you need to see. i think you're seeing telecom equipment start to recover. that's where i would look.
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>> nordic american tanker down 10%. >> pretty sizeable secondary for them. $100 million worth. i think it was 862. a lot of supply in the market. i wouldn't buy here. >> it's a rare case for ultragenyx. up 150 since it went public. up next dr. emil. to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira.
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it has been a busy year for health care ipos. ultragenyx focusing on the treatment of rare genetic diseases jumped 101%. up now 150% from its ipo price. joins us is dr. kneel kakus. you have actually got a full pipeline of drugs for at least four indications or four different diseases in terms -- so it's not just one drug or
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not. there are two drugs in particular the analysts are looking for mid 2014 catalysts and those are rhgus. can you give us the updates on these drugs. analysts are saying they could be more than billion dollar blockbuster drugs. >> we're looking on four different products for five different diseases. a bad disease of the bones and this helps restore balance and improves the bones. we're going to be releasing some data in the middle of the year. so we're looking forward to that release of data. we're planning to initiate studies in kids that have bad bone diseases later this year as well. that's what's going on with the program. the gus is for a really rare disease called mps 7.
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there's only a couple 100 patients with this disease. should have an opportunity to improve the symptoms of that lethal disease. it's an investigational therapy. we're starting the treatment studies and expect to be in phase three later in the year. >> you do think that does have a potential to be a billion dollar drug? >> we think there's about 12,000 patients in the united states. based on the estimates of what we think the population would be worldwide, one in 20,000. it's certainly a larger population than some of the others. >> i know i'm butchering this -- >> no, you did fine. >> that one is looked at as a promising drug. i'm asking these questions in terms of billion dollars. we're talking about rare diseases which means that south of 200,000 people have these drugs.
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that means these drugs are extremely expensive and recently congress has scrutinized the expense of the drugs. respect waxman questioning whether or not these drugs should cost this much. >> these rare disease drugs are expensive. we understand that. i try to get these things developed and couldn't get it done. i think what's important to remember here, it's not necessarily the cost of the drug, it's our patient that is should be treated not getting treated. what we have committed to is making sure that all patients get treated regardless of ability to pay and in the u.s. will have programs in place allowing those patients that can't get covered to get it covered and get them treated. that's our commitment to the patients. >> so trihepton, why don't the bigger biotech companies try and go after this market as well, are you looking to partner with
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them at all? >> well, these programs are -- like trihepton, are rare diseases. people are trying to pull all those. we have a lot of work to do. i think many of the larger companies look at those. diseases they have never heard of and it's hard to imagine who they're going to turn into something important. that's our job, to find those and turn them into products. at this point in time, we're not planning to partner these programs, the one that is are not partnered, because we think we can develop on our own. >> and you want to stay independent. are you still going to be the ceo of ultragenyx. >> i'm planning to be the head of ultragenyx. i want to reset the standards
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for how we do develop, how we approach patients and do good and right while developing these therapies. >> thanks for your time. >> thank you. >> the ceo of ultragenyx. biotech really didn't see that bounce particularly large bioteches. >> you know, if you look at the nasdaq index, you're right at the 200. this looks like a falling knife. i don't see with valuation where is they are -- in fact, this looks like -- but the 200 is not something i would be buying. >> it is the 110th anniversary at times square. the traders would trade the center of new york, that's next. it's funny, everyone i know wishes they could go back and feel younger.
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ when i think of times square, i think of the heart of new york city. >> i think about crazy people. >> welcome to new york. listen to my new york talk. >> we think about money. >> when i think of times square,
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i think of bill boards and a lot of commercials. >> telling you to spend money that you don't need, advertisers. since you don't any way, might as well spend it with me. >> what did that mean? >> that guy wrote that poem. today marks the 110th anniversary to times square. a melting pot of tourists. it is our home for "fast money." we asked our traders if you could pick one investment opportunity here in times square, what would that be? tim. >> it would be mcdonald's in terms of this is a valuation. mcdonald's and burger king is a trade i have on. so much has been priced into that this bk. part of it is financial engineering. mcdonald's can do some type of a
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leverage. they're not dependent on north america. this is a global story. i think the asian comps are going to be a surprise this quarter. >> anthony? >> i was going to stay disney but the rogue attacked me before the show. >> did you punch him? >> i didn't punch him. they want to spin off red lobster. management has been unfriendly to shareholders. i think something big is going to happen. look for a proxy battle and unleashing of the battle. >> you meant the rogue -- >> the rogue. i am absolutely certain that walt disney -- >> hello kitty thought you were hot. >> i thought disney corporation would not want that mickey mouse standing 10 feet out there.
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>> when i think of times square, i think of the heart of outdoor advertising anywhere in the world and that brings me to a name like cbs outdoor which just went public. people have been talking about the demise of outdoor advertising for years and it doesn't seem to be happening. i like cbs outdoor but wait a little because it is old company does retain a very large stake and that's going to be a overhang for a wall. >> i would have jacked up the rogue. >> and you have. >> and the hello kitty. >> you called me a politician over there. >> and you are. you decided to -- >> i was hoping the fake iron man was going to come and help me. >> did i lose my -- no i didn't lose my train -- that big ball these a water ford crystal. who lights that ball?
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who? right. phillips. a company out of amsterdam making a lot of sense. this stock put it on a focus list. very volatile. they report at the end of the month. i think this is interesting stock. the adr is phg. that's the way i would play it. >> interesting. >> not obvious at all. >> all right. >> i didn't say it was. i said that's the way my mind works. >> more money and problems for the banks about to face new standards coming to capital requirements. >> today the fed that occ and fdic released stricter requirements for u.s. banks and initial rule on leverage release. it says the latest requires the banks to keep leverage that is the ratio of total equity to assets. that has to stand above 5% and 6% with subsidiaries with
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deposits. the banks need $68 billion more capital and $95 billion more respectively to meet the requirements. now for u.s. banks, what their foreign counter parts must have, those banks must need to comply with a 3% ratio. now, it takes a tougher stance on repurchase agreements or repos which we hear about as short term loans u. it's roughly $1.1 trillion where these eight banks are concerned. that could have an affect on the pricing of treasuries if banks get out of this repo market. that is interesting and those banks will need to do some deleveraging. in a statement yellin said the crisis said financial companies grew so large that their failure could pose a threat to overall
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financial stability. will this be a competitive threat to u.s. banks where foreign banks are concerned and regulators have said it won't hurt them competitively now, it will only help safeguard them in the next crisis. >> tharvlet's go to -- one trad. mike. >> it was interesting. this was the one name that saw foolish activity today. in the financials there was a little bit in gold man sacks. morgan stanley is going to report earnings on the 17th of april. i think they're looking for $59.5 a share. i think what's interesting having spent a little bit less than 90 cent to purchase over 15,000 of the calls, the stock doesn't have to be up 5% to be
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profitable. given it moves almost 4%. this is kind of an interesting bet. i think probably a smart one when we take a what the street is expecting and about where it was trading at its highs earlier this year. >> joining check out our websit. stay tuned. [ hypnotist ] you are feeling satisfied
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welcome back to "fast money." we have got details on laquinta's pricing tonight for tomorrow's ipo. according to to dow jones, it will be $17 a share below it's range of $18 to $21. will sell 3% more shares. the number of shares sold, about 38.25 million shares. they will start trading at the new york stock exchange under the ticker lq. >> thanks for that. it's sort of a gamble on how the market is going to trade
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tomorrow? >> the space is reasonably hot. i think the hilton deal was a good deal. i would take a look. >> go. >> take a breather. >> anthony. >> mortgage stanley. >> navigator. >> family dollar looks interesting 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. 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 trying to make you a little money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or of course, tweet me @jim cramer. let us speak of wounded money managers and stocks you might own.

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