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tv   Fast Money  CNBC  April 14, 2014 5:00pm-6:01pm EDT

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service and to elie for reporting. >> if that is still in the game, stay long in the market. >> thank you. it's been fun this afternoon. "fast money" is coming up in just a few seconds. >> this use twitter is coming. we have no plans to sell. our traders will weigh in the answers will surprise you. guarantee it. >> all right. and martin says they're still increasing their ad spend. >> "fast money" starts right now. outside of new york city's times square. dan, brian, kelly and guy. we've got the latest details in the battle between google and facebook. over one drone maker. city, a wild day in the markets. helping city have its best day since 2012 and the report lifting a number of the other financials higher. karen, you have been holding on
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to citi and now it's bounced? >> it's lower than it was two weeks ago. i thought it was a good earnings report. i thought the call was good. there were definitely some things to latch on to for the bulls there. there was some moderate growth. that was good. mike meyer was on the call. not surprisingly trying to get answers out of them. are you guys asleep there. and corporate said we are wide awake and aware of what we have to do. i think it was an inspiring call. i didn't buy any more city but i did buy some more jpmorgan which is guesting attractive again. >> his language regarding resubmission of the c car over the summer. he said industrial strength solutions. that's what i want to hear from a company that failed at first and wants to get a capital
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raise. >> somebody had to fail. let's forget about that for a second. citi is the poster child. they have a giant bull's eye on their back. karen can speak to that. i think it's okay you're 47.5. i was surprise it broke. but i think valuation is interesting enough that you can own it. i think earnings wednesday is interesting. i think it broke 30 tragd 29. i don't think all financials are created equal. >> take a look at jpmorgan. they had a tremendous tumable friday. citi, the decline was less. the revenue decline was less. what do you make of this? >> the whole story, reason to be in banks is if you think the economy is getting better. i know these names besides citi
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have had a tremendous run already. i would much rath play that theme in something like the steel stocks. i might wait a couple days but that's where i would much rath put my money. >> you don't believe the economy. >> i'm not sure. i think there's some good signs and bad. i know that at the highs of the market, the marketed price at too strong of a growth. maybe we're pricing too low. i'm not sure yet. >> i would just add one thing. the results are a little better than jpmorgan. it looks good for expectations for citi coming in. i would say the stock and the environment. bk speaking to the economy is one thing. this could be as good as it gets for 2014. there's not a lot of expected growth. a stock like citi could be dead money.
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it almost got to 45. that's the level it's held for the last 12 months. it's between that break down level. i think you can see the stock banging around are 45 to 50 and you could go crazy trying to trade it in between. if you have karen's time horizon and willing to wait, if that growth goes to double digits in the next year. >> if they're going to submit on c car don't they have to pass on this point? >> mike is going to make sure this time it's going to go through. >> they know what a pr situation this is. >> exactly. >> they're not going to submit right away. i think they're going to take long time and do whatever needs to be done. their trading 55% of the s&p pe multiple. this is not like they're pricing
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in a screaming u.s. economy at all. i think you're getting that for free. if we muddle along these are fine. if we grow, these are really good. >> what about emerging markets? what happens? city bank went down 20%. why? because they're exposing in the em. what are the things with ukraine and russia and turkey, then all of a sudden you have the em factor. it's discounting the potential for an up swing. i say it could be discounting some flairup somewhere else. >> i thought the banks were rich on prices. >> certainly not city. it is the cheapest of the bunch trading in the mid 80s. jpmorgan -- well wales may be more expensive. i think they're still cheap. >> if they're still cheap price
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to book -- >> price to earnings is what i care about more. >> price to book, if they're trading at one, are they utility and do they have that type of earnings potential they used to have? i don't think they do. >> the stocks at this level are not saying that they do. and i think they could. it could come close. >> drone wars heating up in silicon valley on news that google acquired tightened air space. kara, co-executive editor is here. good to have you person. getting more people online. >> yes. strategy of taking over the world. >> yeah. that's a bigger strategy. >> when alien ships land. data, imagery and getting people connected to the internet. it's pretty basic. >> what do you think they paid -- the price tag?
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>> i'm trying to find out that price. facebook paid $20 million for a similar company these near earth satellites. some of them are solar powered. google spent tens of millions of dollars which is this balloon thing they're floating over all kinds of deserts and areas. i think it will be interesting to see how much money. but all the things they're buying with facebook buying occolus rift. >> you get the sense this is all part of a plan, they're not buying things because they can afford to. they have got the deep pockets and big enough where they can absorb these things. >> you can wonder when they bought android, everybody said why are they getting into mobile. this is way before mobile became a big deal. they're leakiooking for the nex phase of growth. everybody has the smart phones. the prices of these android
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devices are coming down. if everybody is connected using these devices there has to be access. they're useless. >> to me, it's a giant land grab between google and facebook. i'm sure there's some others. any publicly traded companies out there that are interesting for the stock that they are and for the potential of them to be acquired by one of these two? >> there's one i saw in san francisco these in a warehouse that's building near earth drones that do kind of pictures and photos and crops and all kinds of things. a lot of this technology originally was out of israel. a lot of people are in the military. drones are used for the military. i think you're going to see a lot more of these things, this internet of things is a big deal no matter where it is. all the kinds of things that connect google and facebook to things is what's interesting to them. they talk about it in a more -- we want everyone in the world to be connected. but they want earn in the world
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to be connected so they can look at ads for google and facebook. >> how is this any different and is it realistic that we're going to have 500 drones in the area above us? >> yes, it is realistic. everything changes with the smartphone. by the way, these are going to be little things in our ears eventually. the glasses, google glass is not what it seems to be. it's what it's going to be. it's going to be in cars. when you're traveling you have a lot of problems with connectivity. some day this world presumably will not have any connectivity problems and that's the goal for google. >> kara, thank you for coming by. ka kara, do you like -- >> they're going to take over the world with this kind of valuation. i don't know. it's a small deal for them obviously. anything is a small deal.
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i like to own it here. you're getting all this other stuff for free. i don't know how this evolves and when they monetize it. >> kara mentioned android. there was a lot of acquisitions that we never heart of and the people have come and gone over the last ten years at google. for these guys so heavily waited to just search they need to find that next thing. we see this happen and some point there's going to be some other geeks from stand ford that are going to start losing market share. >> does this mean you're positive or negative? >> can i tell you this. i think they should be making as many acquisitions as they can. look what just happened. they just announced they're going to disattach their messaging app.
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now, you're going to have two facebook apps on your small cell phone. that makes no sense to me. >> there's espn and there's hbo. why would you want to mesh them together? >> that was their argument. >> no it wasn't. facebook doesn't have a phone. this is bad news for facebook because this is how everyone is getting their information. with facebook not having a phone, they have to own espn, they have to own hbo and the must-haves around the world. >> what if facebook turns into a messaging app. that would be a big disease fasr them. >> they tried that. >> what if facebook -- there's no way to monetize that platform. >> compared to other companies they have moved rath quickly. the question is can they -- are these the right apps to buy and
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drones. google didn't making a significances arou-- acquisitio. >> last week pety was on and we had the conversation with 62.5. both of us said you're going to get a pullback. although everything they say is interesting going forward, it'siit's not going to affect this quarter. facebook has proven themselves the last two times. for you stanford folks, you're not geeks, keep doing what you're doing. >> exactly. there's nothing wrong with it. >> i'm a geek. >> me, too. >> you're a massive geek. >> kara, thank you. >> thanks a lot. >> i like it when somebody gets up in dan's grill. biggest shareholders and executives of twitter announcing they won't be selling shares any time soon. plus remember this.
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this this new amazon tv listens to me and does exactly what i say. gary bucy. >> so maybe amazon should make gary chief marketing officer. reporting that it has now officially sold out of fire tv just a few days after going on sale. guy, i know you lined up after you watched divergence. >> i have seen it four times now, divergence. every time it changes. it's incredible. the different endings, you know, the ultimate endings. stock is up 25%. we said this quarter is going to be the make or break quarter. next whatever that is. tuesday or wednesday. this is the deep end of the poll trade. they have to crush it this quarter and i think they might
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come through. it's finally i think interesting to play amazon from the long side. that could have a fast fire on this smacking me in the face next thursday. you know what, you got to sometimes put it out there. i think for the first time in a while, the selloff is significant enough that you're going to get a bounce in this name. gary bucy aside, i dig him, but he's not move the stock. >> i would tend to agree with that. it's a rare occasion we agree. >> it happens. >> go ahead man sax. strat do dan. >> this is a space that's been the eye of the storm. stratis, thanks goodness for that upgrade today. you know, 3d is down 50% on the year. stratis is down 30%. i would say these stocks are
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getting very, very oversold. to guy's point amazon could set up good. when you think these high valuation names are going down, i would probably go to 3-d before i go to stratis. >> the companies themselves are tough trades, right. this is how would do it. you have to do a long term view. you buy every single one of them and put them in a drawer and forget about them. >> but you don't have a basket. >> i don't. not even an easter basket. i got my fingers burnt. >> what's wrong with an easter basket? >> do you have an easter bon net? >> peeps. >> what? >> peeps. >> no. no. no. >> those are good. >> the marshmallow right. >> they come in pink and lavender as well.
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lockup expiration. no media plans to sell immediately before or after. so we all noted how terribly twitter has traded lately. >> terribly. >> was this sort of a hail mary. we're going to go out and say what we need to say. what we probably intended to do. but we'll say it for the record so that people -- >> they won't be saying the stock is still at 60. they still have 40% gains from the ipo price and a lot of those guys own it much lower. you look at 40, that was the low. that's why they came out and did it. they need to support the stock. >> hail mary. that's why i termed it that way. >> this is 100% of what they needed to do. the stock has gotten killed. i think a lot of the fear is priced in here. >> even 3% of the shares outstanding will still come to market. >> they're not going to sell it in one day theoretically, we could all sell it theoretically.
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everybody has said it's all going to come out at once, run away. i don't think so. >> now to the twitter of china. expecting to start trading in the nasdaq kicking off our next ipo serious. let's bring the founder and ceo. you think twitter. it should be valued at this and webo should be valued at what. >> whether it's revenue multiple, twitter is more toward the high 20s. webo is closer to 17 times revenue. you apply the market cap per user, you're going to get a price of close to $30 not the price of $17 to $19. and which one had a profit last quarter. it was webo. this is one of the most underpriced ipos we have seen in years. you get social mobile china all
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at once. >> so at 30 it's incredibly underpriced. >> even at 30 it's under priced. >> let's say it has a $50 pop on the open. >> 50% pop. >> 50% pop. most people can't get in at the ipo price. what levels would somebody out there -- >> initial range is 17 to 19. it's probably not going to increase. we expect it will pop in the mid 20s at least on the first day and trading closer to 30 in the next couple days. market cap ended up being at 30. roughly $6.5 billion. >> $6.5 billion? >> yeah. it's growing faster than twitter. it has china and a little known contract with ali baba where they're guaranteed added revenue and that's for the next eight quarters. you're going to see webo blow away its numbers.
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a lot of investors are not going to think they have a special deal for two years. they're going to see them blowing away their numbers quarter after quarter. if anything, you either believe that webo is dramatically undervalued and twitter is the most overvalued stock. if you want to hedge it, you sell, and you go webo. >> yahoo is trading as if allie baba's cop is going to be south of 150. >> yeah. >> does it matter. i think it does. >> i think it matters. >> it doesn't matter. >> you know what, allie baba is going to go public after labor day. yahoo's stake is almost $50 billion. way more than the market cap. if it beats by a penny this week, yahoo's earnings don't
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matter. it's a call option on the ipo at this point. >> webo can be a 30 time sales in a week and then we're talking about the highest possible -- we're talking about a market cap for alibaba. if this continues some may be down 50%, 60%. in 1999 price line closed down 7% from its high. if we see that, alibaba is never coming that way. i don't get it. after what's going on here in the last few months i don't know why people are cavalier with that sort of attitude. >> if you look at the price actually, it's not being priced as if it's a guaranteed ipo. i mean, the market cap forr ya o
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yahoo -- there is a significant discount. the market is discounting that there's some risk between now and september when alibaba should price that there's some risk the tech market -- >> i think the market is discounting their core business and they're not discounting alibaba. that's my view. >> last word, alibaba has so many minority station in so many companies that are not being priced. if we look at the actual finances -- >> we haven't looked at them. you're going to take all the investments in private chinese companies. >> yes. >> let's do that. >> we'll break it down for you, guy. >> we'll see you then, sam. coming up next, what the latest tensions out of ukraine and russia mean for the oil trade. dennis weighs in and gives us his take on the market.
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and brian kelly his very own coin. just might give you a run for your metal, stay tuned. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired.
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well, gotta run. geico. fifteen minutes could save you fifteen percent or more.
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president obama just wrapped up a phone call over rising tensions in ukraine with russian right tackle vladimir putin. >> we know the two leaders did speak by telephone. what we don't know is what the american side makes of that conversation. what we don't have is what they call the readout. the official report on the conversation that the white house will give to the press. we do have the russian readout and it gives you of the sense of the perspective they see the world through. they say the leaders discussed various aspects of the crisis in ukraine. in the southeastern regions engulfed by mass protests of the current authorities in kiev. that's what we know as of right now. we don't know on whether or not any solutions or ability to
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stave off any kind of conflict in the ukraine were arrived at on that phone call. very little information here. >> thanks for the update. and tensions over ukraine spilling into crude prices as well as gold. selling higher. are we looking at a long term jump in price? >> dennis joins us now. great to have you with us. last i checked crude, it wasn't up as much as one might think given how bad and how violent things have become in ukraine. i'm cruisurious where do you se this going? >> if you're going to trade the circumstances that are prevailing in russia and you want to do it in the oil market, you probably have to be short of wti. i'm not sure i would go out and take that trade. because over the course of the past 2.5 or 3 months we have seen that spread. we have seen brent's premium to wti evaporate.
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today you had to go out almost a buck and a half at one time. i think it's simply a correction. a manifestation of watching the news over the weekend. if the conversation that they were just talking about goes even quietly well, you probably end up seeing that premium dissolve quickly. the major trend has been for brent to lose its premium on a consistent basis relative to wti. i'm not sure i would trade it. if you're going to be in the market, that's the way you could trade that news. >> i understand there's a lot of oil out there, right? we hear there's so much oil. how come oil is up from $92 to $102? is it all political? >> no i don't think so it's gee political at all. i think it's the global economy is doing quite well.
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i don't think there's any problems that people want to believe there is. china is not going to fall into a black hole any time soon. i don't see the data that tells me that. shipping in your opinions continue to be better all the time. trade numbers seem to be doing well. optimism in the united states is up and in europe. if you have have to find a fundamental, i don't think it's geopolitics. i think it's real demand. you have got the term structure. you hear me talk about that all the time. here in the united states wti is at a huge backwardation. telling you please plenty of supply there. i'm not sure i would take the trade to be a buyer of brent and a seller of wti predicated upon geopolitics. the term structures are telling you it's tighter in the united
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states and wti than it is for brent. >> good to see you. is there a tradeoff of geopolitics? >> i think it's difficult to trade that in this case. i think putin and russia will continue to move into ukraine. i think it's hard to trade though. that's the problem. >> it was interesting, gold -- with the market decline last week we didn't see gold do too much. >> the dollars just quietly have been getting banged around a bit. i think that lends itself to gold. i'm a believer in the gold. i don't think geopolitics has anything to do with it. i think you stay with the gold here. >> i remember that. big movers of the century. pop for web md. up 16%. >> last week their ceo took off.
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he went to go to aol. they came out and said earnings would be at the top end. this stock has 42 times forward earning. a lot of people got squeezed. i think they looked to sell it not buy it. >> dropped gogo. >> got through 17 today. i think you stay away from this whole thing. >> hospira up 2%. >> the next big event should be earnings. we would like to see them with a clean bill of health on their manufacturing facilities. >> and with manhattan hotels reaching all time highs, they turn to b and bs. new yorkers have returned home
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to find evidence of sexual escapades. this isn't the first time they have gotten bad press. last month an apartment was seized for an orgie. >> what do you mean evidence? >> do we have to elaborate on that? >> listen, you just said they found evidence of -- what was the phrase. >> sexual escapades. >> is this good or bad news. >> i think it's a drop for them, airbnb. >> that's crazy. >> let's talk about goodrich pet troel yum. a well in their shell. at the smart board with more, dan. >> the stock was up 30% today. options volume was hot.
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about six times. five to one today. there was one massive trade interesting where a trader sold some april calls. sold 10,000 of the april 15 calls. obviously a big winner and used the proceeds to buy $20,000 of the june 22.5 calls. they would control up to 2 million shares of stock. what's interesting about that when you look at the chart over here. the previous high, if this is a one year chart is right about to break even. 10% higher here. one trader is pretty bullish when the stock was up 30%. >> thanks for that. more options every friday. check out the website. options action.cnbc.com. up next, one silicon valley company changes the way you see things. plus brian explaining how he got
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bit by the coin bug. more "fast" straight ahead. it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ ♪
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i would i would go into macy's, as a big man, i couldn't get the cool stuff. so i had a conversation with them, we wanted to do something very, very cool for all size men because even those i'm 7'1", all type of people can go to macy's. >> 7'1". >> union what that is? >> shaquille o'neal. >> ding, ding, ding. >> he was standing next to kelly and bill. what was amazing is that kelly -- >> of course. >> they're average size people. they're not small and shaquille o'neal is enormous. macy's, not a very good year overall for retail? >> true. macy's, i don't think shaquille o'neal is going to take them to the promised land.
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i think they'll do it themselves. it's getting close to where i would add, probably 55. valuation is not stretched here. so could be bumpy but i like it a lot for the long term. >> facebook's $2 billion acquisition of occolus, now silicon valley company meta is coming out of glasses of its own. josh had a chance to try them on. how are they josh? >> it could be the next hot product in the wearable revolution. welcome to meta. they live and work together in this modern day commune. your reality is enhanced with these hol grams that you feel like you can touch with your hands. i saw this 3-can image of a
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building. they could appeal to professionals who want to work in 3-d environments. make architects can show hol grams to clients. they have been in touch with boeing about potential applications. big possibilities for gamers. >> most of all, i think entertainment and gaming are to benefit from this. people just want to see a 300-inch tv screen that's 3-d and the dinosaur's head across their living room. we're tracking the world. >> meta has raised close to $10 million from high profile investors including dolby digital. meta compared to google glass which goes on sale tomorrow for one day only to the public. with meta you can see objects in three dimensions while google is 2-d. the company's ceo isn't interested in selling his
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company but wants to turn it into this power hawouses. we'll see whether the companies are excited as he is about the high-tech and high-priced glasses. >> does meta create the software that runs this? is there a custom -- if i'm an architect, can i customize it for my use? >> to your point, what's going to really mean success or failure for this company is you have got to convince developers to come in and build the apps whether they're architects, manufacturers. the ceo tells me half the developers she's talking to are gamers. that's the next big challenge. some analysts point out not a lot of developers have experience in working in these 3 d environments. >> i'm still reeling over the fact these guys live together.
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>> how stinky is that house? >> can you imagine where you're developing the trades all day long? >> no. >> totally not. in terms with the trade. >> "fast money" kaputes. what would cook? >> maybe you. >> my crab cakes, best in the world. >> not kosher out of kaputes. bk jumping into the digital currency game. >> i get to fulfill my geeky desire to become the central banker of this particular coin world. >> dk is going to show you how to make a crypto coin of your own next. ♪
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spawned a creation of other crypto coins including one minted by our own brian kelly. we went out to witness the birth of a coin. here's how it went down. let's get started. let's make a coin. >> let's do it. part of the reason i wanted to do this, i want today show people how easy it is to do this. we're going to name our coin. i'm choosing nautilus coin. because a nautilus grows at a steady rate and has its own protective shell. i need to choose light coin or bitcoin. >> that's an easier equation. >> step three, choose our coin parameters. going to decide what the block rate is. and number two, what the initial prize is for the minors and number three, we're going to decide what the block rate is,
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how quickly the prize gets cut in half. step four, send them some money. we have to send 40 right now before they send us the finals. step five, we have to create a network. >> we have this other computer here. >> we downloaded the software. >> and we can start mine? >> absolutely. >> step six, we start mining. if we're the first computer to solve the equation, we get the prize and free coins and we can use them how we want to use them. >> what do you get out of it? >> i wanted to let people know that the coins are -- what i get out of it is getting this technology out there for everybody and then i get to fulfill my geeky desire to create a coin and become the central banker of this particular coin world. >> the ben of all coins. >> it's something like that. >> that's great. >> so what's happened since?
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>> since then, we have created the coin, it's out there. we have it trading on exchange. go to agx.io. you can buy and sell the coin there. from here we'll take it and have to have some use for it. that's going to be the next thi thing. go to nautilus coin.com. we have a faucet and i want everybody to use it. it's not a speculative instrument. it's a way to transfer value anywhere in the world. it's pretty amazing technology. >> you get to solve a riddle or something? >> solve a riddle. >> tell me about it. i'm curious. >> what you do is there's a long mathematical equation. if you're the first person to solve it is you get coins. the miners verify and convey the transaction. you have to have the miners in the middle. they get the coin.
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and then you have this whole network of computers and send it anywhere. >> now a computer program does the mining. it's not like i will personally sit down with the equation in front of me and think about how i can solve it. a computer is going through and -- >> and big coin, they're super fast and actually doing per second 50 quaddrillion equations. >> so next week we watch you guys play dungeons and dragons. >> he looked like he was going to fall off his chair. >> i mean, this -- >> all right. >> this is your best show ever. >> learning more about digital currencies, check out cnbc.com and do not forget to check out cnbc.com's new documentary
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premiering this wednesday. big week for big coin. you tweet it and we trade it. this one is from gramps. amgen is looking interesting. >> it's a crazy stock. it trades 13 times. it should trade at 17 times which makes them 30% undervalued in my mind. i just did 40 q auchuad exchang my mind. >> listen, you know, this is kind of again -- solar is one of the high growth sectors. if you want to be in solar, you go in solar, the estimates are reasonable. solar city is not. >> karen, is cvs a buy after
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wall green's news. >> i used to own a lot. this management i think is very, very good. very focused on returning cash to shareholders. i think you could own cvs. >> coming up next on "mad money," get ready to throw everything you know about investing in your 401(k). that and much more top of the hour on mad. coming right back. stay tuned. customizable charts, powerful screening tools,
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and guaranteed one-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and e-trade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. call or click to open your fidelity account today.
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is is this good for you, guy? you liked the first ten seconds song but have no time for the rest of it. >> that's exactly right. i mean, the first three notes are like legendary. >> they're great. >> and then the rest of the song -- >> i like the whole song. >> i like the whole thing, too. >> time now for the -- final around the world. >> for you guys worrying about ukrainian tensions, etf on german equities. >> up setting dan, i find
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microsoft at 39. >> karen. >> i might upset him also. i like jpmorgan. >> job market is getting better. paychex is dirt now. happy passover. 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 trying to make you money. my job, not just to entertain but to educate. call me or tweet me @jimcramer. can value and growth

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