tv Fast Money CNBC April 30, 2014 5:00pm-6:01pm EDT
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thank you. >> great to be with you. was it all virginia hour of closing bell, how about that. >> exactly. speaking of which, "fast money" coming up in a few moments now. >> speaking of virginia -- >> yeah. over the next 25 years. what's on tap? >> we are following the yelp conference call. we got one stock entering but one of our traders is calling the triangle of death. so we will name names next hour. >> looking forward to it. over to you guys. >> "fast money" starts right now. live from the nasdaq from new york city's times square. we are celebrating cnbc's 25th anniversary tonight. regis philbin will join us. yelp's conference call going on right now. shares are moving in the after-hour's session. guidance was a bit weak.
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we'll keep the latest from this hour. it was twitter stealing the spotlight. not a good thing. investors disappointed in the social network's user growth and lack of big ideas for the company. here's what twitter ceo said earlier today. i don't feel a particular desire to come out and do something other people aren't doing. we focus on three specific things, growth, operating leverage and operating efficiency. >> we're down more than 8% on twitter. you're short. are you still? >> i didn't think the stock didn't trade too badly. the stock was down 24%. that was far greater. i think the expectations were clearly much lower. he should feel some compunction.
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he a market cap of $22 billion. facebook just paid $19 billion. they had 200 million more active users. when you think back to 2012 after facebook went public that stock got cut in half. they were not able to demonstrate out of the gate they had a business model they could advertise. i think the stock has more room to the down side before they have that facebook uh-huh moment. >> between the call and the interview, you're a shareholder of twitter, did you get answers? >> no. they need to come out with a plan besides operating leverage. that's everybody's plan who runs a business. but you got to have a plan on how you're going to engage your advertisement. so for me, i actually did think the stock traded well today. on a pop i'm going to be getting out. >> i don't think the quarter was
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as disastrous. to dan's point, the last quarter was worse than this quarter. i thought that here we are now at 38 and change, i'm surprised that the stock got beaten up as it did. with that said, i don't think you can rush in. i thought it would hold at 40s. it didn't. i think there's pain on the downside before you rush back into twitter. >> maybe worth twitter is worth paying for now. analysts are sticking by their ratings in large part and pretty foolish rating on the stock. would you look at it? >> no, just because the stock is lower doesn't mean it's cheap. still, it's just way beyond where i would be interested in buying it. i had bought some pandora not for a fund. they had what were disappointing earnings. that's it. i'm out of that one. there has to be, for me, some fundamental valuation that creates a floor for this thing.
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twitter, if it were half, it may still be expensive. it could be double, too. i'm just not going to play in the game. >> the other side is cowan going in could have taken a quasi victory lap. they obviously are seeing something we're not seeing. >> we mentioned the lockup. listen, you know, these companies go public to get some of the insiders out. they said they're not going to be selling. they will be selling at some point the rest of this year. maybe it pops. remember this on facebook. people want to talk about how facebook rallied into that ipo lockup. the stock had been cut in half. >> so the lockup. 474 points. 7 million shares could come. 34% owned by insiders and execs who say they don't have an intent to sell. but the map tells me more than
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300 million shares possibly to become unlocked next week. >> but clearly it's not -- it shouldn't come all at the same time. and mr. costello talked about how they will have a plan in place for the executives. your talking about half of it. it sounded to me they might have that plan in place. i think there's a left tackleot on this stuff. >> we have been saying it's probably priced in. from this stock reaction, based on this quarter, it shouldn't have been as low as it is. maybe this lockup is not as priced in as the rest of us might think. >> we have seen over the past month so many internet and high-fi names getting beat up. with twitter down 8.5%, almost 9%. the rest of the internet names did okay.
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facebook managed to be higher. it wasn't so bad across the board. that sort of momentum meltdown. it was a twitter meltdown today. >> the facebook quarter i thought was really good. the initial stock reaction was very good. the stock went from 61 to 64.5, 65 that day. i thought the quarter was great. i think to a certain extent this twitter quarter sort of puts a spotlight on how strong the quarter was for facebook. i think that's why facebook is higher today. >> let's get to the story in the after hour's session. yelp moving higher right now. let's bring in the managing director, neil. what is sending the stock higher now? we saw a roller coaster ride after the close. >> yeah. the stock was down 5% right after the numbers came out. one, the user metrics are strong. 132 million. up 30%.
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local businesses on the platform up over 60%. and mobile is inflecting. the growth in mobile is strong. the core underlying fundamentals for the business continue to be very positive. >> have they commented at all about the yahoo partnership and what if anything that is bringing to yelp and are you in camp that yelp can be an acquisition for yahoo? >> yeah i think they can be a target for yahoo. i think yelp is one of the best opportunities on that front. once the alibaba deal takes place and yahoo is flush with cash, i think there could be a nice opportunity there. >> where should these stocks be trading? this stock is down 45% from the all time highs and lost almost
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$4 billion in market cap. when you look at it now, it's obviously been cut in half. where should these stocks be trading? is there a lot of takeover premium in a name like this? is that why it trades like it does? when you talk about the move towards mobile, it's taking away from the desk top business that's going away. it's stealing from peter to pay paul. but that growth is going to plateau at some point. >> yeah, i think theseat's a gr point. valuation has been rich for yelp. it demands one of the highest growth rates of the sector. there's a very big opportunity for yelp to attract the local online advertising market. look at facebook, google, no one has been able to overturn yelp. i think yelp has the biggest
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runway, and we do think yelp could grow into that valuation at some point. >> guy? >> the trade i think is yelp against whatever today's low was. unfortunately it was around 54.5. so risk reward is pretty significant. a stock that sold off in 3.5, 4 weeks, it's worth the shot here. maybe you get some ka pitch lags. you could potentially see a bounce up to 68, 69. >> in this momentum meltdown category it was hit the hardest. >> this is the worst acting of all of them. it may never see the highs again, ever. i'm tell you that. you talk about yahoo. can you think of a worst partner? google could crush these guys. i think that you sell rallies in all these stocks. i don't short it here. i think it's a tough pressdown,
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45%. >> leave it there. weight watchers soaring on earnings. let's go to dom with the latest. >> we're off after market highs right now. as a result they boosted their 2014 earnings up about 13%, 14% in the after market trade. it was up almost 20%. one of these big stocks, wtw, that gets a lot of action around earnings. >> karen, you have trafficked in this name in the past? >> it's been a short when they announced two quarters ago. it takes a long time to turn around this business. it is so seasonal and so first quarter loaded. we have to hear the call. i'm not that optimistic on it. it is a great brand.
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>> aren't we entering a seasonally stronger period ahead of the summer time? >> the biggest is new year's. >> right. >> and trying to get into your bathing suit is another big push. >> why would i try to get into your bathing suit? that's the craziest thing. >> apple or u.s. government which is a safer investment? find out why alibaba still has not happened. we have got the latest on that developing story coming up. and i don't need to be online for it to work. it runs office, so i can do schedules and budgets and even menu changes. but it's fun, too -- with touch, and tons of great apps for stuff like music, 'cause a good playlist is good for business. i need the boss's signature for this. i'm the boss. ♪ honestly ♪ i wanna see you be brave
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♪ [ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. the man who coined the term triangle of death has found another name that's looking to make a series of lower lows. dan nathan, that's you. the reaper. >> i'm glad someone is finally taking me seriously. we look at sales force.com. when you look at the chart right there. what did you do? you had the run away break out
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back in august on earnings. and since then it's spent the last months in this pattern. what did it do this week. it broke below the neckline at 50. it's a very high valuation name. it trades at 100 times earnings and 8 times sales. a report in the end of may, so you have some time here, but it's that bottom right hand triangle portion you want to keep an eye on. you want to see a challenging for the breakout. i wouldn't belong to this stock into a potentially volatile event. >> so you're short? >> i want to be clear. i think they're going lower. they are down so much and they can pop up 10%. >> when you're looking 50, 45, quick spreads? >> i think that makes send. if you get it move down to that
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trend line. >> if you're saying that a stock is in a triangle of death, we want to know what happened to them. the previous one was costco. whole foods is a good call. >> when you have stocks butting up against massive support which is what that neckline is. costco, a great example, into their march sales it was sitting there. better than expected. it popped. you got to be careful at influx points. that's why it makes sense. use the technicals as an input. >> obviously the valuation has been a concern for quite some time. i don't think anybody would buy them. ibm just made an acquisition sort of in the space. there's always that concern that something whacky happens with these names. >> we have breaking news on ukraine.
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let's go to dom. >> lots of chatter about a possible bailout for ukraine. we have those headlines approving a $17 billion, what they call a stand by arrangement. a bailout loan. $17 billion over the next two years. $3 billion of which will be made immediately available to ukraine. again $3 billion immediately available with other payments or other program -- again, payments out of the loan program when they meet certain performance criteria. the imf approving a $17 billion loan package for ukraine over the next two years. $3 billion of which will be made immediately for their use. >> thanks for those details. brian kelly, any impact on any of the markets? >> i'm not sure it will have -- they need about $50 billion. you're going to need a bigger boat to help them out.
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all they're doing is making sure they're going to gas supplies to europe. if anything, it's a negative. >> apple making a second major dead offering for $12 billion. investors came running with more than $40 billion in orders. joining us now the managing director of armored wolf. great to see you. >> good to see you. >> investors are very excited and apple corporate bonds are among the most actively traded out there. which is the better bet? >> well, apple is a huge issue. we think the equity of apple makes a lot of sense given the yields on the equity. but the bonds to our firm at armored wolf, it doesn't make sense as a short term or long term investment. >> walk us through. let's take a 10 year or so. apple bonds, where are they
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priced in relationship to -- aren't you getting a better yield? >> you're going to pick up points versus treasuries. that's a yield pickup in the market. typically swap spreads are half of that. and 75 basis points really doesn't compensate as far as i'm concerned investors for the lower liquidity level of a corporate bond, especially you see the fed ending its tapering and raising rates. at that point you're going to be stuck in a less liquid trading instrument than let's say a 10-year treasury which is much more successfully traded on the ups and downs of the economy. >> it's karen. when you talk about apple stock, do you think about the dividend yield as part of the equation or is it a relatively small part of how you think apple's stock may move? >> is that for me, melissa?
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>> to you. >> i look at the earnings yield. whether apple pays out or it retains the earnings and with a pe of 14, we would adjust that down to 10. there's so much cash that apple holds overseas and off shore that there's a huge cash for it. if you take out the cash from the equation. the price you're really paying for apple's earnings is a multiple of 10. that converts to 10% earnings yield which in an environment where fed funds is zero and apple bonds are 3%, that 10% yield is much more attractive. what it essentially assumes is not necessarily that apple comes out with the greatest new invention in the next three years or five years or ten years but simply that apple retains or maintains its current earnings level. >> john, we're going to leave it
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there. thank you so much. john of armored wolf. we are going to play that game. we are going to put to you guys the question. would you rather? apple bonds, apple stock, or u.s. treasuries? >> it's interesting. we can talk about this later. i thought given the move in the market today, given the comments out of the fed you would have thought interest rates in the u.s. would have gone higher. they actually went lower. given the choice over the three over that time period, i think apple bonds are interesting. i don't think they're going to be as liquid as that gentleman is concerned about. i'm not so sure 10 years from now the products are not cammoditized. >> apple stock and looking at the free cash flow kweeld yield attractive.
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>> this is more of a thought on corporate bonds in general. sometime in the next 10 years we're going to get another recession which i'm not compensated on apple bonds, or the feds are going to have to raise rates or go to rate hiking cycle and i'm stuck with these bonds that basically yield nothing. apple stock, i like the company. tomorrow do i want to buy it, not. so i would want to buy treasuries tomorrow. >> let me ask you -- i'm going to answer for you. none of the above. is that what you're going to say? >> i think look at how they absorbed the taper. they are the last resort as far as risk assets. i think they're going to be valuable over the next couple years. >> still ahead, one week and counting and still no alibaba
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alibaba was expected to file for public offering last monday. one week later there's still no sign of what could be the largest ipo ever. what is the delay here? joining us from head quarters, kayla. >> there's still a chance the f1 will pop up this week. various reasons for the delay. most commonly i heard for a document hundreds of pages in
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length, underwriters are looking through this document want to edit and make changes and make sure every single t is crossed and i is dotted. a second reason was figuring out how to treat the delic d topic of counterfeit goods. the sister sites and auditors want clarify as well. deal making in alibaba. just this month the company and/or alibaba chairman have bought station in companies. one such deal was announced this monday. mab is no longer the ceo of the company. as this dust settles and as some of the issues get settled it could be a few days before we get the document.
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it's still expected to be approaching the largest ipo in the u.s. on record. >> kayla, thank you for that. dan nathan? >> don't get me started. >> start. >> let's weave a little web here. $19 billion and apple issuing tons of debt to buy back their stock. it seems -- >> listen, that's the first thing i thought. second of all, if they're taking this long to read the document and they're first day on the job? you know what you have. you knew it six months ago. i don't think this is good. >> i still think yahoo is trading as if these guys are probably right. it shouldn't be trading anyway. yahoo should be north of 40 bucks and it's not. >> i don't think we can glean from this what i think is relatively modest delay anything beyond this is a complicated --
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>> they're not anything. >> right. this is complicated. a lot of times -- >> they're the ones who suggested that -- on yahoo's earnings that the s 1 is going to be out. >> what difference does that make? >> you're a value gal, right? >> right. >> soft bank. >> but yahoo is trading at cash if this thing comes at $200 billion and they tax effectively take out 20% of their holdings. isn't it the buy of the century. >> they can't trade negative and i don't think it's $200 billion. so you have got to make that bet of $200 billion which we're not making. >> coming up, taser with a shocking selloff. the ceo has been tased seven
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. the social network making a major announcement. cnbc's morgan brand has got the details from san fran. morgan. >> that's right ceo mark zuckerberg unveiling facebook's audience network. this is what he had to say about it this afternoon. >> i'm excited about this audience network. we have done a lot of work to help you build and grow your apps. this is the first time that we're going to help you monetize in a serious way on mobile. >> so helping developers monetize. but this means more money for facebook. this will create a brand new revenue stream, as much as $3 billion for the company and one that's not tied to the facebook news feed and most importantly, not so reliant on user growth and engagement.
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facebook is late to the game. google and twitter already have competing problems. but facebook is well positioned thanks to its massive advertiser base. about 1 million. and given that facebook monetizes mobile so much better than everyone else and with 1.28 billion active users and they have data to pull from. zuckerberg also announcing new log-ins that's going to allow users to control the information they share with new apps and games tied to the platform. we'll be seeing that in the next couple of weeks. >> joining us live from san francisco. guy made the point earlier that twitter makes facebook look bett better. >> not that much better.
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facebook's stock is overvalued. they're out there saying we would rather give it to somebody else. to me, i got burnt by facebook. i don't want to go anywhere near it. >> when we made the acquisition, 75% of which was in facebook stock. we said they're telling you their stock is rich. that was $8 or $9 ago. and now they put a $90 price target on this. i'm surprised how poorly the stock traded but not surprised how well it traded today. >> time now for pops and drops. we kick it off for a drop with u.s. steel. >> the quarter wasn't what people were expecting. i think the stock is okay. i still think you stay long at these levels. >> wellpoint up 6%.
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>> they lost fewer insured than they thought they would. this was a company that overdelivers and under promises. i own it still here. i think it's worth hanging on to here. >> 3d systems up 6%. >> at these prices it's probably not a bad buy. be careful in this space because there are some questions about how things are accounted for. >> pop for under armour up 4%. >> the stocks went up about 10%. this is when they issued some disappointing results last week. it's in a down trend. i can see it in the lost low 40s. that's probably a good level to get in. >> and a pop for cannabis
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friendly concert. the shows built as classical cannabis. will not be sold on the premises. byop. marijuana has been legal since january. >> i know you're looking at me. >> because you're the old guy. >> what is happening? where is the moral fiber? apparently it's going up in smoke in the state of colorado. you like that. >> up in smoke, nice. >> right there. >> all right. >> nice. >> stun gun producer taser getting hit together despite report in revenue growth. the domestic business concerning some investors. let's bring in the founder and ceo of taser. rick smith. in the release you touted the
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international growth, the several large orders that came in. do you point out the domestic business was down about 7%. what's going on here in the united states? >> we're in the midst of an upgrade cycle where the majority of the taser devices are well beyond their expected five-year life. we have been working aggressively to help our customers upgrade to our newer platfor platforms. the growth has been great, almost 20% growth in the weapons business in general. a lot came from international. that's a positive thing. in the u.s., about one out of every two cops is carrying a taser. that's where we got the room to grow and we're delighted to see international sales moving up to over $10 million this quarter. >> i want to ask you about the upgrade cycle. is it presumed they will upgrade
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to a taser or leave the taser behind? still this device, there's a lot of controversy over this thing. >> well the controversy has calmed down a lot because the facts are so overwhelming. for example, the state of michigan, the insurance pool tracked when they deployed tasers, it dropped reliability over 5%. taser users are still headline bo worthy. in terms of injuries avoided and lives saved the data is unavoidable. even the critics are accepting that they are a important law enforcement tool. which is what got us into the camera business, to make sure we're prioviding the right tool. >> and you have been tased? >> i have done it myself. not a lot of fun. >> you brought a taser with you, rick. >> i did. >> do you have somebody you
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don't like with you or what's the deal? >> nope. this is the x2. this is the reason for the upgrade cycle. this does really interesting things that create new capabilities for customers. you can warn somebody with an electric arc. stop what you're doing. that's effective as getting people to comply because every person in every language understands that. others have got two shots. if you miss you got an immediate backup. which is hugely important. >> i need one of those for here onset. in terms of your fastest growing businesses like the axon which is a body worn camera, those areas combined showed 56% growth. what are your targets here? do you see your make-shift changing at all? >> so gap rev noenues were up. if you look at bookings, we went from a million and a half to
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almost six million this quarter. now the gap revenues takes a long time for gap to show the results in the business which is one of the reasons we share booking numbers with our customers. we are seeing that part of the business. we think we hit a tipping point and the numbers are showing it. a year ago we booked a million and a half up to six this quarter and what we're hearing from the marketplace is, you know, leading chiefs are saying every cop is going to be wearing a camera. we have the only fully integrated with a cloud solution that is sort of like itunes for cops with all the security built in and ready to go out of the box. >> great to see you again. >> thanks. >> he didn't tase anybody though? what's a trade on this stock? certainly a high flier. been up 85% over the past two
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months. >> it's a volatile stock. every once in a while you get these tape bombs where another jury litigates or is against these guys three million here and there. if you back out valuation and see past it, it's worth taking a shot on this high flier to your point on the long side. >> coming up after this break, "fast money" favorite stock picker and tv legend regis philbin is back. including the one stock he is selling this week. more "fast" straight ahead. humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. humira can lower your ability to fight infections,
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fifteen percent or more on car insurance. it is cnbc's 25th anniversary. the network ringing the closing bell today at cnbc global head quarters in new jersey. you see there ceo mark hoffman with the gavel. everybody is happy. one of our most popular guests is a tv icon with a knack for investing in the right stocks, regis philbin joins us live on
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the phone. thanks for joining us. >> congratulations for you and your 25th anniversary. >> and you were a viewer since 25 years ago, right? >> that's right. i have been right from the beginning. i think you're doing a great job. and say hello to guy and brian and kelly. brian kelly is the name of my football coach at notre dame. >> does he go by bk as well? >> i was with him last week and he was very, very happy with spring practice and looking forward to a big season and i hope he gets it. >> let's get down to stock. i understand that you're going to sell a stock this week. you want to share that with us? >> yes, i do. you know, i have been with apple up and down for a long time now, and back into the 300s because i thought it was going to come back and it started getting higher and higher this week and
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i sold all of my 300s and 400s. >> regis, you are the man. that's a great trade. what about micron? >> i usually sell when it gets to 25. but now it's at 26. it's making me crazy because it usually hits 25 and returns to 19 or 18. >> regis, it's karen. you and david ihorn seem to have overlapping positions. are you guys working this together? >> no, we're not working it together. maybe i should, right? >> he's a smart guy, you're a smart guy. >> i wish i knew him better. yahoo is the one i'm disappointed in. it kind of lingers there and hasn't been doing much. what do you think of yahoo? >> it's dan. this is one we talked about on the desk. we're surprised the stock is not higher given all the talk of the valuation of alibaba. they're going to sell 12% on
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that stake on the deal. we think the stocks should be higher if the deal is going to come at that valuation. it's a tough call. >> it is. right in the middle of the 30s. incidentally i see timmy at my gym and i think tim wants to be the irish stallion like guy' dom -- adami the italian stallion. >> does he only do curls? >> he loves those biceps, doesn't he? >> give us a stock pick. you're so great. give us one. >> my, dogosh. i wish i could. i like amazon at this price. >> amazon. >> early 300s. i got a feeling he's going to come through with big stuff and by the time this year is over it will be over 400. >> you're going to have some
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spare time on your hands in a couple weeks or so. >> yeah. >> and would you -- you want to come here on the desk? would you do a reality show? would you do a talk show? what are your plan? >> you know what, i really don't have any plans but all of those things sound good to me. >> you're welcome any time, regis, you know that. >> thanks very much. love seeing you. i'm turning back to tv right now. >> thanks, regis. >> thanks everybody. >> regis philbin. tv icon. >> he's a stud. >> mr. stud. >> i hope when i'm 130 i look at good as he does. i'm kidding, regis. i'm kidding. >> let's get an earnings alert from dom. >> i kind of wish i got what he feels about -- those shares are moving lower in the after hours. third quarter profit in sales. it issued a lower forecast for
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the current quarter citing delays in equipment spending. their after market lows but still down about 6.5% to 7%. >> thanks. what's the trade? >> i don't know what the trade is. here's a stock that's just -- forget about where it was in the hey day. this was the poster child. unless you have a huge volume day tomorrow, i think it's a no-touch. >> shares of solar have run up. dan nathan breaks down the trade after the break. make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.
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sunedison shaurs -- shares have been hot. dan. >> the stock traded three times average daily volume today this is a stock that's no stranger to large actions activity. it was one big trade that caught my eye. a trader sold about 50,000 of the may 20 calls at 70 cents and rolled out to july and bought 50,000 of the july 20 calls for
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$1.74. that breaks even up at $21.74. what's interesting about that. they sold the may to close and bought the july to open and rolling out this bullish view. when you look at the chart, this is interesting right here. it's basically the break-even at the previous high which is 5 2-week highs. why this trader is making a bullish bet. about a year ago the stock was $6. all this call buying, this is the price of options and volatility. it's not particularly cheap. it's basically at the mid point of the one-year range here. i guess with a stock that's gone from 16 to 19 and still bullish and up 45% of the year. you keep rolling out that bullish view. >> thanks for that. check out our website optionsaction.com. we have breaking news here. >> melissa, there is a complete
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stop on all departures coming out of lax right now with the faa equipment out of its flight center out of palmdale. departures are being delayed as much as 90 minutes to an hour and 45 minutes. i have a tweet from a man saying the captain is telling them it's going to be at least an hour. we have just learned that burbank airport and john wayne airport, no departures at the moment. the same computer problem is affecting las vegas and complete stop at the moment for all departures out of there. we don't know when it's going to be fixed but told there will be no departures until the problem is fixed. it's not the first time it happened but never a good time. >> got your first move tomorrow
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the after hours session. after session hour high up by 5%. let's take a check on shares of twitter. it is trading a bit lower in the after hour session. remember today hitting all-time lows. dan, give us a trade for tomorrow morning. >> i think you want to be careful pressing it. if it gives above 40, that was a big support level. take a shot on the down side. >> time for the final trade. dan. >> starbucks is one that i had been constructive on. but i put on a bearish trade. playing for a break below 70. >> brian, for every economists talking about growth picking up. we have had a flat yield since the beginning of the year. i would be tlt tomorrow. >> burlington coat factory which has come in some. we're short. >> three game sevens in the nhl tonight. >> i know.
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>> big night for hockey. >> huge. >> baseball. look, i'm surprised it traded as poorly. i thought the quarter was fine. i think facebook trades high. >> i'm melissa lee, thanks for helping cnbc getting to 25 years. see you back here tomorrow on "fast" at 5:00. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. . there's always a bull market somewhere and i 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 is not just to entertain and teach and coach, but i'm trying to get you to understand why we hit all-time highs today. call me at 1-800-743-cnbc
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