tv Fast Money CNBC May 21, 2014 5:00pm-6:01pm EDT
5:00 pm
relative to the three hours it takes. if over the summer you took a chopper, you get two and a half extra days of summer. $500 for a one way trip. it's cheap. >> we need some of this innovation. thank you, guys. great to see everybody. closing bell ends now and "fast money" begins. melissa lee. >> "fast money" starts right now in new york city's time square. showing no signs of potential rake heights. talks to buy lorillard. that is the story. our own john brought you months ago. he's got the new details. our traders are tim, pete, karen and brian. finding growth outside of the
5:01 pm
united states. netflix expanding. google. what countries with investors look at for opportunity right now? am ba ambassador, where are you looking? >> china. every u.s. multi national you hear, nike, you name it, i'm going to go with starbuck's. it has the most opportunity to grow. tea versus coffee, you have got coffee less than 1% of the hot beverage versus tea. they're going to double their growth in china and see their sales continue to grow 20% to 25%. especially if they're doubling stores. this is a story where starbuck's who is still 90% u.s. in terms of the revenue stream and not emerging, this is really excite. >> and those quarters are
5:02 pm
backward lurking. if we are to believe the forecasts are correct and the housing market is going to decline, housing sales will be up only 5% compared to last year. will the chinese consumer still buy a latte with double froth. or whatever the heck they buy? >> i think this is apples and oranges. i don't think the chinese market is affecting consumption. >> i don't think with starbuck's. the chinese economy can have a hard landing. when you have companies penetrating a new market, that's not so bad for this particular company. >> let's go to karen. where are you looking? >> i am looking in norway. >> really? >> well, you know, i'm -- it's sort of the energy play for us. we have had a lot of u.s. exposure. this is non-u.s. exposure in
5:03 pm
norway. i do think the revenue stream here, the dividend income is good and you have markets that i think with oil at this price, even though there's been weakness in cap x, i think they are still going to rent drill ships. >> yeah. do you like this trade? it's a bet on global economic growth. >> i do. i love that area. i still find it very difficult to find too many different ways to try to play norway. but obviously energy -- i know what you're saying. but energy is certainly something that for months and months that has been the focal point. >> brian, where are you looking? >> south america. brazil. i'm not the first person to discover this. look at what happened in india. you have this massive run-up in epi because they're going to get a new government. a pro growth, pro business government. brazil's economy is awful right now. they have an election this fall. you could get a regime change there which would help brazil growth markets.
5:04 pm
ewz, the etf there. i'm looking at the low 40s and a longer term trade where the catalyst is next fall. >> he talked about it at length when we talked to him at salt. this is binary, isn't it? >> it is. i think a lot has been rallied already. the popularity pools. every tick lower the market goes up. brazil is 30% off the polls. 30%. unlike in india where you have got unprecedented control on a mandate to make a pro business environment, i don't think you're going to get that in brazil. even though i think this is a exciting market to be. it's not the right time to be buying it. >> pete? >> i like india. i don't think the u.s. has tapped out. i believe strongly there's a lot more upside coming in our markets. i like india and the epi. you were talking about the etf. you have got technology and
5:05 pm
energy. that's over 50%. because of that, i like where they're going and with the new regime, there's a huge commitment to infrastructure but the economy itself and trying to get more diversified that they were presently. i think it's going higher. >> then are you a believer of the india trade? >> yes. what i'm trying to do with brazil is get a similar type india kick. both of these are up a lot. >> i think they have kicked. i think it's a very exciting time. it's cool people are talking about emerging markets for their growth. >> you're saying pete is wrong? >> well, is sense is at all-time highs. >> but you're still a buyer? >> absolutely. >> i think he's right. ibm is a name i have been talking about. the kind of broad consumer and industrial based bank. banking plays you can play here.
5:06 pm
>> that specific name we have seen upside activity. i think it's had a very good run. you look over the last three months. great run. i think there's a lot more left in the tank. this is not done yet. >> netflix getting a boost after announcing it will be expanding its presence. launching in germany, belgium, france, and luxemborg. france and germany are the two biggest markets in the world. >> if you look at their expansion in the uk. the quarterly incremental expenses were in the neighborhood of $40 million. this is a bigger expansion than the uk was. if you look at netflix going over $60 million.
5:07 pm
near term we expect them to launch the markets in the fourth quarter and take our earnings estimates down. but longer term, we're more constructive and applaud netflix. and then cost energies to expand globally. longer term, if the street gives them a pass on the earnings revisions downward, we like it for netflix in general. >> the growth is fantastic. does the lack of earnings ever catch up with them? >> i think what you have to look at is catalysts. really the bulk case was three-pronged. you have got international growth, pricing power and originals driving u.s. subscribers. we have got information around those three this year. what is the next thing going to drive the stock? one point i would like to make is the media companies, what netflix is doing is they're improve the digital distribution
5:08 pm
of content. if you think of the media companies, they stand to be positioned well from netflix. i would think about that as a lateral in terms of a disney or cbs, a natural partner. >> you got to think primarily germany and france. >> right. >> germany and france is really where it's at. in germany there's a lot of competition. amazon is there with film. and watch-ever which is adding 100,000 subs per month. >> right. >> and huge costs in buying local content which is more appropriate and jurors a lot of the marketing related to this. this is a time where the margins are finally getting better. they're raising prices which i think is a big deal. elasticity will see how that plays out here. >> i mean, the thing is for new markets for netflix, right, you have to think about the later that they launch in those markets, the more time the local are incumbent and competitive
5:09 pm
technology company has -- in terms of pricing power we know what they're doing. we know that there's heavy grandfathering and raising it -- they may raise it again when you look at 2017 and beyond. >> i think the pricing uplift has been modeled into a lot of street models at this time. i think they have pricing power for the heavy users. but they want to get to 60 million subs. there is some elasticity. >> getting back to you what you, you said if the street can take that, do you think that the street will give them a pass? i mean, is this something investors should buy now or will there be more volatility in the stock as we're digesting these revisions lower? >> i think the street should give them a pass. so we can debate whether or not these revisions will matter the stock.
5:10 pm
one argument would be netflix has been talking for a quarter or two about the significant expansion. on a buy side, investors and shareholders may have seen this coming. when you think about amazon and its growth internationally, the street typically for companies they think are market leaders has given them a pass to invest and grow in new markets. we should be encouraging those companies to make those moves. >> thank you. >> thanks a lot. >> pete, the problem is that for a long time the street has given companies like amazon a pass focusing on revenue growth until recently. >> i think the focus on international is huge. only 16% of the revenue comes from international streaming. i think that could go higher in a fast period of time. and the competition levels, yes going to be competitive but i think netflix, this is not unusual for them. they can go on the attack and they were just talking about that hastings was talking about this price change really habit
5:11 pm
se -- hasn't seen much of an affect so far when they raised it by a dollar. i'm a bull on this name. the last 15 points i have been a ball -- bull. >> reynolds is in talks to buy lorillard. breaking the story coming to the tobacco sector back in january and came on fast to explain why merger between them was likely. take a listen. >> it makes a lot of sense. the reason these guys have just about any kind of overlap you manu imagine. they have got sales forces going to talk to 711's to get the stuff on shelves. the cost savings will be massive. >> joining us is jay jay flash. what's the latest? >> bat does not want to be diluted.
5:12 pm
british american tobacco has a 42% stake in reynolds. at the end of july they could buy the whole thing. now you have got three companies involved. if reynolds is going to buy, they're going to need some stock. at the end of the day they could increase or hold their stake where it is. >> both stocks surged late in the session. what does that tell you about the likelihood of the deal and the formation of the deal? >> it looks like things as i'm hearing things are getting more advanced. people working hard on this. they have been the last few days. remember, bat as i reported before, has been looking at this from time to time over the last decade since they put the deal together. something else, a few months ago i think things got bumpy and reynolds ceo resigned abruptly. we're not sure what happened. but they replaced him with susan cameron and she's an alumnus of
5:13 pm
brian williamson which was still a part of bat a decade another. something going to have all three companies working together. >> i'm long the stock and for a couple different reasons that are not necessarily m & a related. it was a very strong dividend and core model. do you think it's a legal and a regulatory kind of lifting? this has been a major overhang for the entire sector. is there something better going on? is that why we're getting this news now because a lot of people want exposure to the u.s. market and certainly reynolds? >> absolutely. there are regulatory risks. around e-cigarettes and around men thol and people are skeptical about this. i think this comes down to the numbers. this deal would be very creative for all the companies involved. all of them have very, very big cash flows. i don't think it has too much to do with the e-cigarette situation. these a potential growth area if
5:14 pm
that takes off. >> jay jay flash. joining us from the newsroom. google saying set aside $30 billion for acquisitions. we have got acquisition targets for google next. who would you rather, google or apple? a new survey says google is the most valuable brand. but is it the most valuable stock? our traders will decide next.
5:17 pm
earnings alert on wabo. dom. >> what we have right now is a stock moving about 6% to the down side. posting a narrower than expected loss of 3 cents a share in its first earnings report since its ipo last month. month live active users came in at 144 million of them, up 44% from the same time last year. the stock is falling after the company sees weaker than expected sales in the second quarter. despite the drop after hours, this stock is up about pretty big from $17 ipo price just from a month ago. the last trade is about $19.33,
5:18 pm
down about 4.5% on 117,000 shares of volume. a lighter trade but decent size stock. >> what is the ripple affect on -- >> cena missed. if you look at the entire space, it's been a interesting earning season for chinese internet names. you had the big ones. and cena and webo, this is about competition. people believe they can't keep up with 10 creents. i own cena. i don't think they're going to lose this market. i think people are concerned about censorship issues which are always overdone in china. again, that's been a painful name for me. >> we are on alert to get the pricing for jd.com. meantime, google could be on the verge of a global buying spree.
5:19 pm
in a letter to the fcc, it will need as much as $30 billion of overseas profits to fund acquisition. shares closing higher today. let's take a look at what google could buy with eric jackson. i want to preface this. is this what you think google should buy? >> these are targets that make sense for google. they're willing to go out and be aggressive just like facebook has. >> they had not done too many multi billion dollar acquisitions. let's go through the list. one is in terms of the theme that we have seen play out over the past couple of weeks or so. music. >> there was interesting reporting from billboard about spodify and the fact they have 10 million paying subscribers. that's triple what pandora has. for all the success pandora has
5:20 pm
enjoyed, talking about a $5 billion stock. i'm sure it's lining itself up for an ipo later this year. and you can imagine they'll be seeking a big perhaps $15 billion valuation. often right before an ipo, prices, there's sort of a last chance where people like google get a chance to come in and make an offer. >> and the current valuations would be an offer north of $4 billion at this point. you also say that google could go, not the full acquisition route, but actually buy a stake in a chinese company? >> yeah. google has turned its back on china. that was several years ago. they're really not benefiting in any way from the explosion of android in china. all that data and what people are doing over there, google doesn't know anything about it. so i think that was a decision that was sort of personal decision based on sergei brin and his experience growing up in the soviet union. i think the ceo is much more
5:21 pm
pragmatic and i think there's going to become a decision about whether they want to go back into china. i don't think they go themselves. i think they look to partner and i think baidu can make an interesting investment target. they're the leader in china and b baidu is stuck in the middle. i think there would come a point whe . >> you say facebook, there could be a good deal as well. >> i think you're talking about webo and twitter are sort of yesterday's news when it comes to messaging. what's up is the future. who else is left? there's a japanese company called line. i think that makes sense. there's a canadian company
5:22 pm
called kick that's the number one messaging for young americans under 24. is the messaging app, is a what's app kind of the browser of the future in the whole mobile space? that's sort of the jumping off point for doing all sorts of tasks on your phone. i think google will have a play there. >> eric, thanks for sharing these targets with us. eric jackson of iron fire capitol. karen, when you heard this, you had your doubts? >> i had my doubts. they have $20 billion, $30 billion. he said that because he had to say something to give a better spin of why they keep that much money. even if they did, they could issue debt that could pay next to nothing. doesn't make sense. we have an bad tax policy for foreign money. >> they don't seem to have a appetite for foreign acquisitions. >> motor role la and then nest.
5:23 pm
>> it's almost a page out of the apple play book, right? i think there have been interesting companies that people have passed up. go-pro would have been one of them. and spodify. >> let's stick with google. for the first time in three years, the tech titan showing some improvement because of some regards. according to branz, with a z, google's value jumped to $159 billion pushing apple to number two. which is the most valuable stock, google or apple, meaning not market cap obviously, but in terms of growth? >> i don't know how they're measuring brands. >> that's why it's a brandz with a z. >> there's a lot of way to do this. you can look at valuation.
5:24 pm
apple, x cash is trading around 8.5 times and growing 9% a year. google growing about 20% a year. apple looks better to me. if i look on the apple chart, if you draw a trend line all the way back five years. get back to the beginning of the rally, it has jumped up to the level. for a guy who owned apple from 520 to 590 and sold it, if we get over 610, i don't think you're going to get that shot. apple, they just started selling the 5c in india. i would stay with apple. >> basically this boils down to a game we would like to play. forget about the brands and rankings. would you rather apple or google? >> at these prices, i would rath google. a lot of what's happened to apple is out there. yes, we have this upgrade cycle in the fall. that's already priced into the stock i think.
5:25 pm
for me, the selloff in google is an opportunity and there's around 525 seems to be a decent area where i would want to get in. >> options market, what are they hotter on? >> absolutely lately it's been apple. that changes daily. to be honest with you. when you're looking at apple, i still go with apple. the reason i say that is they were revolutionary and they aren't anymore. but they're almost on track to start that when they bring out the next generation of products in the fall. when you start changing the format size, that is a bit of a game-changer. it changes things up as far as the phone and the processing units. i think really it is very exciting. >> so it matters for pete? >> it does. >> pete, what about profit margins? now apple is getting into a whole different game here. they have got different profit margins. >> that's why you still want to see something happen when they talk about acquisitions as far as trying to get the supply
5:26 pm
5:27 pm
5:28 pm
csx. how tomorrow moves. what a day. can't wait til tomorrow. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today.
5:29 pm
tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. take a look at tiffany shares. huge gains for the stock. the retailer also raising full year guidance. soaring sales. silver collections boosting the bottom line. karen. >> it was top line. gross margin. all regions. raised guidance. you know, pretty much hitting on all cylinders. the question of, is it too late to buy it? sadly for me, yes, it's too late to buy it.
5:30 pm
it's expensive. however, you guys can probably speak better to this. at 9630 it seems gravitationally drawn. >> when you look at the japan numbers and asian in your opinions, those are unreal numbers, right? that's as explosive as you have seen. especially what we have seen so far. >> that's where there's all this room. people expecting 4%, 5%. i don't know if you buy it tomorrow. but look at where these guys have gone, 20% rest of world a decade ago to being -- there's an lot more wealth chasing this. this is a global luxury brand. even with nike to me, you put them all in the same class. this is what's happening. i think you stay with this one long term. >> this has not been across the board. that's why tiffany was up so much today, because the street
5:31 pm
didn't give it a lot of credit. i would be careful buying it tomorrow morning. maybe it goes to 100. but i don't think it's a long-term trade. >> coming up next, momentum stocks taking a beating over the past couple months. are there high-fliers still having room to room? we'll talk to a portfolio manager. hopefully you didn't follow jay carney's advice on russia. >> i wouldn't if i were you invest in russian equities right now. unless you're going short. >> a deeper dive into the massive rally in russia. and whether you should still jump in. that's ahead.
5:34 pm
welcome back to "fast money." we are live at the nasdaq market site here in times square. high profile names like facebook, twitter and tesla also dropping double digits. you need to know where to look. let's bring in cofounder and portfolio manager. great to see you. these are two names we have never discussed.
5:35 pm
let's start with arc best formerly arkansas best. 119% in 12 months. it's a great company. >> that's right. you'll frequently hear nowadays when people talk about momentum stocks, they make it sound like they're getting crushed across the board. it's not really true. when you look inside of the group of high momentum stocks, you'll see clear winners and losers and arc best is an example of one of them. it's a freight transportation company. also does logistics and through what we see as the turning point and sentiment in the market, it had been up 190%. at mataren. we view march 19 as a turning point and sentiment. that was when janet yellen was testifying before congress and indicated the fed might be raising rates. many momentum stocks have traded down quite a bit since then.
5:36 pm
arc best has been up another 10% since then. >> in terms of the business, they have avf freight which is their biggest division and a services business. do they have an opportunity to change the mix? i notice they're streamlining their freight business in order to get the services business. >> it's a higher margin business. and so you see arc best as an over all company becoming more fis efficient. for some momentum stocks, you see when the sentiment shifts and momentum turns out of favor, they start to fall and nothing to catch them because all they had was momentum. for a company like arcbest, it's a cash flow generating company and trading about 21 times next year's earnings. for a company like arcbest, if
5:37 pm
it did start to fall, this one has a safety net. it has something to fall back on. it will only fall so far. >> i want to get to biotechs stock. nice performance over the past 12 months. they're involved in pulmonary hypertension drugs and humanizing big organs. they were able to ratchet down r & d. i think they would be spending a lot of money in r & d. how are they doing that? >> what we saw in the prior quarter was there was an uptick in r & d. and you see often with biotechs when they're building up to new drug lineups that you'll see in uptick and they have been doing other things that you don't see doing often including their out in the market buying back their shares when their competitors
5:38 pm
have to continue issuing stock to stay in business. they're generating about $400 million in cash over the past year. a $4.7 billion valuation. it's trading at about 8% or 9% free cash flow yield. it's trading at an affordable valuation on earnings about 13 times next year's estimated earnings. you're right, it is a biotech but not the typical type of biotech stock or momentum stock a lot of our viewers will think of. >> thanks a lot. you have been burned by the momentums, bk. >> she's picking names that have momentum but have the fundamentals to support them. if you do get a down-draft, they hold up much better. and utrh looks like one of those. it's a very different type of momentum stock. it's almost like a value
5:39 pm
momentum. that's what it's like. >> value momentum, pete? >> i like that. >> but i look at that short interest in there and i think that also helps to the upside when you got 16% of the outstanding shares short as well. >> pops and drops. drop for tyson down 2%. >> very tough today for tyson foods. they sold off -- very difficult. they sold off a division but also talking about meat supplies. still being tight out there which could hurt this company. stay away from the meat space. >> pop for sis coup 1%. >> cisco is not in the meat space. including data switching business. i think it goes higher. >> drop for sears down 4%. karen. >> nice job, bc to get that in
5:40 pm
there. sears canada. awful numbers today. awful, awful. >> go rangers. rangers beat the canadiens. >> there's nothing else to say. canada for sears and everybody else, very tough. >> pop for delta up 1%. pete. >> good friend richard anderson. bought that refinery. estimated to save $300 million per year. look at the pricing power and international growth. this is not the end despite the stock is trading at highs and performed extremely well. >> let's get to the latest out of russia. back in march everyone's favorite financial adviser jay carney had a stern warning in investing in russian stocks. >> i wouldn't if i were you invest in russian equities right now. i think the -- unless you're going short. >> now since that warning,
5:41 pm
russian equities are up more than 13%. far outperforming the s&p 500 from its lows. today russia signed a landmark deal to supply natural gas to china for a reported $400 billion. is now the time to invest in russia? i know we all wish we could ask mr. carney what he thinks. >> he's a mo-mo guy. here's what i think. the market is basically back to precrisis levels. this is for a country that was weakening well into this moment. so in other words, industrial production in terms of gdp. russia's economy had problems before the mention of sanctions. i think you fade this rally. if i'm looking at russia on 12 to 15 month basis, yes, i want to own it. but at the levels, 26 bucks is your stop -- you start to throw
5:42 pm
some out there i should say. you're back to where you were over the last nine months. this china deal is something talked about for ten years. it's probably at least diversifying. i don't think it's a place to chase this thing higher. >> i think the rsx goes higher. when you look at 43% of its energy exposures and giving everything to europe and go towards asia, i think this is huge for them for the diversification side of it and they're playing the game the way i always do. i'm going to bet on putin and against carney. i think it's going to go high. >> why not just buy oil? why am i taking the risk there's going to be a huge problem in russia. just buy oil. >> good point. >> you're getting the energy component when you're buying that. >> but i get that and i think these right on the 12-month basis. i would be owning russia for 12
5:43 pm
months but not like you do. you're a short-term trader. i think you're buying a lot of momentum in this trade. >> 22 is the bottom. 30 is the top. i think there's more upside than down side from here. >> a broken clock is right. he could be right if he sticks with his -- >> these guys put lines in the sand. >> that was a fast buyer by the way. what can $100 million in jd diamond do. details after the break. what's green, bright and lighting up pete's radar. next on "fast." he middle of thie honoring america's troops. which is actually quite fitting because geico has been serving the military for over 75 years. aawh no, look, i know this is about the troops and not about me. right, but i don't look like that.
5:44 pm
5:45 pm
5:46 pm
5:47 pm
stock closed about 315. >> do you? >> i do, too. i think this is going higher. that whole sector is on fire. big day today. >> jpmorgan announcing investment in the bankrupt motor city. listen to what jamie diamond had to say about it on the today show earlier. >> creating a healthy and vibrant city. if that happens, it's good for us, too. i also look at it as an american patriot. this is one of the few cities that hasn't had a renaissance. most of the cities have. if it's done right, maybe they can, too. >> joining us is co-managing partner who has made it out of vegas alive. >> great job out there. >> thank goodness. >> let's talk about -- i think it's a great move. some people say it's a pr move.
5:48 pm
$100 million, a drop in the bucket. i disagree with that. they're putting money in to stop the urban blight and adding a seed venture orientation to this thing as well. he'll also get some partnership public and privates together. if this does turn around. and if enough money goes in and right tax and social policies, it will be very good for jpmorg jpmorgan. >> it could be a nice cycle. jpmorgan goes in. makes some loans. >> yes. >> and private equity might go in then and buy some of the distressed homes. >> i think there'll be people that may say this thing but i think this is a leading edge sort of move. i know that karen has a huge crush on jamie. >> what? what? >> she'll say super positive things about jamie. but i'm more talking about like the strategy as it relates to the urban regeneration of a city like detroit where it's
5:49 pm
desperately needed. >> yeah. yeah. >> do you think -- >> look at -- >> it's not even valentine's day. >> doesn't matter. >> do you think private equity is getting behind? in the urban redevelopment story is almost a blue print and play book you can roll out in a lot of other places and some things some guys have done before. if you get the right money behind this, this could really generate momentum. >> it's not yesterday at the t point. you'll see all those other people step in with the capital. what i like about the story is i think he is sort of a first mover in the space. >> jamie said it's not a pr move. he said they would be wrong. at the same time, do you think this helps? >> it will help. it will probably help with the regulators and ease off some of
5:50 pm
that pressure. to put $100 million up, melissa, you and i could scheme up some pretty good pr moves for $100 million. i can't look at it as a pr move as it is a very good bet on what he thinks would be a turn around in a city that his organization can take advantage of and make profit off of. >> good to see you. >> good to see you, too. >> i mean, you heart jd diamond. >> i do. there's nothing wrong with that. they're putting a little money to work. it's like he's filing a 13d in detroit and hoping others follow him in. that would make his investment worth more. >> i think it's a fantastic deal. i think he's going to make a ton of money. i think we look back and say this could be the first deal with the municipal bond market stopped getting fearful that we're going to have the
5:51 pm
down-turn. i think it's a great deal. >> coming up, some bullish activities that could jump 20% in the next six months after this break. honestly, the off-season isn't really off for me. i've got a lot to do. that's why i got my surface. it's great for watching game film and drawing up plays. it's got onenote, so i can stay on top of my to-do list,
5:52 pm
5:54 pm
nice day for shares of cbk rallying more than 3%. what was the strength there. >> it was really interesting we saw about four times the daily average options volume. buyers of the -- we don't have a lot of prix yemium to them -- >> we're having a problem with his mike. we'll get back to you on the other side of this break. stay tuned. sfoo stinct shouting ] ♪ [ 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.
5:55 pm
that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪ let's close the gap between people and care. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
5:56 pm
when we arrived at our hotel in new york, the porter was so incredibly careful careless with our bags. and the room they gave us, it was beautiful. a broom closet. but the best part, / worst part, was the shower. my wife drying herself with the egyptian cotton towels, shower curtain defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. with millions of reviews, a visit to tripadvisor makes any destination better.
5:57 pm
. breaking news. just got the pricing for jd.com. what's the news? >> jd.com considered the amazon of china is priced at $19 a share. that's above its initial price range of $16 to $18. analysts were saying at the mid-point it would raise roughly $1.6 billion. but more than that given it's more than $19 a share. this would be considered the third largest ipo so far this year and the biggest chinese internet ipos thus far.
5:58 pm
a lot of eyes on jd and alibaba. a lot of bankers watching this one closely. >> interesting, we got weibo and cena. not a great time tomorrow to go to market for jd. >> no but there's a couple things positive. call me the sinnic. these deals with going to go off well. will be self-serving. the chinese government has cut back on the ipos. the flood of ipos is now going to be closer to 100. >> think of jd as amazon back in 2009 in a market growing two to three times faster. at this valuation, $19, which was above the range, it would be priced pretty much at equal ev to sales as amazon. >> it's got a premium price today because of the alibaba ipo coming up. but looking forward, if you're
5:59 pm
out there for a five-year basis, i think you're probably all right here. you might get pullback once alibaba comes out but i think you're okay buying it. >> pete, would you buy? >> i would. i think there's mow joe along with this whole thing right now. i know cena and some of the pressures. >> they're in a different space. i agree with you. not every chinese internet company is laying an egg on their earnings. >> maybe there'll be more support with this one with alibaba coming out. >> i believe that's true. >> final trade around the horn. >> i'm going to sell the rsx. i think you trade it. >> i think bonds have sold off. time to buy. tlt. >> evacuations trades down on the sale. nadl. i like them both. >> cbs, he didn't get a chance to finish.
6:00 pm
look out to september, i think cbs a going higher. content is king. i like the space. >> the breaking news, jd.com, above the range. $19. the range had been $16 to $18. watch for that one tomorrow. see you back 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. just trying to save you a little money. my job isn't just to entertain you but to teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. can the market honestly,
114 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on