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tv   Fast Money  CNBC  August 25, 2014 5:00pm-6:01pm EDT

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more 4.5 thank you. thank you guys this average. i appreciate it. "fast money" is coming up with melissa lee. what's on tap? >> hey, seven looking forward to the iphone 6. we got one stock that could be a huge benefit fetchary. it's not apple or any of the parts suppliers. >> i thought you might have an iphone 6. >> okay. >> yeah. maybe. >> over to you, guys. >> "fast money" talks right now. live from the nasdaq markets in new york city's time's square, the traders are pete seymour, steve najerian, guy adami. we are playing our favorite songs from 2000. >> why is that? >> today the s&p 500 hit 2,000 the first time ever. see that record-breaking number. steve grass so, what was it like on the floor during that momentous occasion? >> this is where you are supposed to pitch to me. i'm supposed to say i'm filled with excitement.
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>> that's exactly what happened. you know, few think about it, though, we're in the last week of the summer. you know the old saying, never short a dull tape. this is water going on now. people have not the tape. shorts have been waiting for that 10% correction. we're not getting it. we haven't gotten it. i think the s&p on track for year end, 2,100. if it mirrors that january, february sell-off and recovery that we discussed last week. >> financials you had mentioned on our conference call this afternoon, really strong. >> there is a couple reasons why you like financials, one because they've lagged. two, we're at normal enflexion points, three, if you think gdp is about to act sell rate, if you see people that say the ten-year bottom last week. i think it may have at least in the interim, then you want to buy financials because they will run 5% after that period. i think if you look at valuation. people struggle with the s&p here, what levels do i want to own it? you are not owning expensive
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stocks. i claim city is certainly the best value out there. i think it's going higher. >> is there upside or is there fear there will be a pullback? >> far less fear. primarily, we are seeing nothing but upside, to the financials, when you look to the left today, that was one of the leading areas we saw unusual activity. people looking for upside, going out to december, buying the 24 strike calls. people expecting these financials to pick up after a little bit of a lack, taking basically a break over the last month or two. here we are, 52-week highs, a lot of the names have plenty of upsides, some of them have performed. you got banc of america and city, there is all kind of different names i think i have lots of room to the upside still. >> the health care leads the way. that's been a fantastic sector for a while. the market has not exhausted the upside. nothing indicates it has in terms of volume or euphoria. i'm not the raging bulge out there. it seems to me the market wants
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to continue higher at this point. >> that was robert denir rorks by the way. >> "raging bull." >> did you see that movie? >> i may have. so we want to ask tonight what stocks are you buying right now with stocks if general at all-time highs, tim? >> baidu, baidu is the raging chinese bull. with 52-week highs, what stock would you buy in baidu? you look at the second quarter numbers, they are upon advertising mobile. they are also improving their margins. if you like google. ten you like baidu. they are controlling the market place more so. this is a stock i buy at these highs and i stay in it. >> pete. >> you know when the producers ask me about the they say, what do you like? >> i like transports, the airline, the big cap techs. if i look at the financials right now, it's goldman sachs. it's trading just over book value. it will accelerate into the end of the year. this is a company, when you look at it, they have had very few
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changes along the way. this is a company that's executing and because of that, i think there is plenty of room on the upside. >> they said they might by a long with morgan stanley next to a deal deal with the doj. >> make of america, we saw the movement since that, now also looking at goldman sachs, 1.2 billion. whatever the number is, people want this behind them. i think they have plenty of runway. >> you heard me say k.b. holmes in the housing sector. the industry averages 16 times. you heard me say the deferred tax asset. >> that comes on in november. it will start skug as a keep stock. it skews for quants. it's year end. >> a lot of people play this from the short side rather successfully in fits and starts. i think are you looking for the capitulation buyers to get you into kbh.
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when they get out, that's when you get out along with them in terms of short cover ooj. celgene, bioteches is not in a bubble. fine times forward earnings is not expensive for these guys. they have an unbelievable balance sheet. they have a great management team. this is stock we will be talking about forever. it's at an all time high with the s&p. >> speaking of biotech, soaring 35% on news swiss drug maker roche will acquire it. what other companies will be brought in next? let's bring in stifel nicolaus analyst rabin carnasis. there are potential candidates, what is hefsee? >> big themes, go over anything that tips the liver, hepatitis c, there is a company achillion. they would love to have if they
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want to compete, namely gilead. they have a nucleo the spooid. i dentic was bought by merck. we think that's one thing. >> how does it add up to gilead and some analysts have septemse. >> gilead has the best cure possible. no one can beat that. price point they're more worried about vul tan the price. we don't think the volumes will be so high they will push back. killion will come in cheaper. they have the upper hand. >> the other theme is fatty liver disease. >> again with the liver. this market is actually bigger probably than hepatitis c 35 to $40 billion mark. there is a company called
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intercept developing a pill for nash. we saw data, we see more in the coming months. it's not partnered. any company in the liver, it's a big park drug. this is a drug you would acquire. >> you also have arrowhead. you mentioned the last time you were on it's up 8%. most of the gains we should note it's thought of widely as a takeout target. what do you see the stock going? >> the risk rewards very binary. it could go up 100%. what makes it another acquisition target is hepatitis c is a massive park. there was companies developing a truck for hepatitis b. you need to come at it in a different way. only 10% of people get cured. data coming out in the fall. if that looks good, it could be good for large biotech and pharma. >> let's say you knew there was no interest in any of these
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companies as the takeout targets. do you like them on their own? >> i like them on my own. but all these companies, they all have 100% upside over the next six months. >> hooech each over the next six months? >> exactly. when the data is positive, all of a sudden they say this could get bought t. assets are unencumbered. >> thank you. have you seen activity in a lot of these banks today? i would imagine. >> most of the names she mentioned have plenty of activity out there. i agree with guy adami. many of the names, the bicker fames, specifically, don't trade at these huge premups as you expect. amgen, it hit 52-week highs today, i still see upside there. i see biogens as well. >> this was a stock trading
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basically $500 in march, had a huge pullback to 220 or. so when she talks about 100% upside. that's not that crazy. i know it seems nuts, look at the stock, extraordinarily volatile. about a 10% short interest. interesting name in a space. this isn't that crazy. it is a binary play. i think you are probably 75-25 it works. >> as you mentioned it went up to $500 bucks. >> 447, yes. >> when you say for the average investor, what is the risk? if one of these things fails or one outsources or outsizes its competition then the rest gets slammed. >> are you still hurting. >> did you feel the pain? >> yes. >> did you see me wince? so for me, put the stock, it's up right now. >> so grasso bought clovis. it was a bad trade. you are burned. >> hi, my name is steve grass so. i bought clovis. >> i am still long clovis.
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it's 31% off the bottom. if you are a home gamer, you buy the ibb. or you put parameters in or trade with pete. >> the posterboy for biotechs. >> big boy. our traders told you what to buy, now they will tell you what stocks to get rid of coming up. plus, amazon announcing a nearly $1 billion acquisition. what it means for the internet giant and burger king making a big move in canada. should mcdonald's be concerned? that's coming up next on "fast." e number one seed? you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work.
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and it's made with ibm. who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right.
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>> that's right. amazon is buying twitch for $970 million, this following reports that google would snap up a company by a billion dollars. twitch has only been around since june 2011 is the most popular streaming videogame play the fourth source of internet traffic in the u.s. accounting for nearly 2% of peak times. amazon saying it's announcing the deal in july alone more than 45 million unique visitors
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viewed 15 billion minutes of content produced by 1 million broadcasters. this acquisition is a part of amazon's big push into gameing, hiring developers, introducing video games for which it sales gaming controller. this is amazon's third major digital content acquisition in the past two years and videogame fans are certainly a group that amazon can sell other products. melissa. >> julia, thanks for that. grasso, do you like amazon making another push into this area? >> i do. not only is there an entry into more gaming exposure. if they have all these streaming videos and it's gamers, how much easier is it to flip a switch and now become uploadable to the cloud or to anything es and be online content the way youtube is. >> do you think that's a real viable competitor? i mean, you own google as well. >> i do own google. amazon is the buckshot.
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google is the lathe laser. google has the ability to try a lot of different venues. i think amazon is sniffing up the right trail. >> burger king, the fast food giant donut cane tim hortons, both saying such a combilgs would create the third largest chain. the deal would be structured to shift burger king base to canada, which has lower overall corporate taxes than here in the united states. pete. >> a lot of folks are looking at this saying, look, this is only a deal to get into this tax bracket. i think there are some synergies here. hortons, 4500 restaurants, they are expanding, they have growth, different ways they can grow. i think there are some synergies, get them into donuts, into breakfast, that's a part of it. >> that's like a cherry on top. >> a kerry on top of something that works well to get
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themselves geographically provided. >> tim hor tons is canada, burger king will do this to get into the fast growing market? >> think about it this way. where has mcdonald's been focusing to get themselves into? they have been positioning into breakfast. it's all about coffee. how does this obviously work with burger king? i think this works very, very well. gets them into the coffee, into the breakfast area, gets them much better positioned and growth and exposure somewhere else. >> this is a great deal for tim horton's, we talked about green mound tony and whoever they decide to play with. the monster, ultimately, this is a very good partnership. remember, this is about the tax deal. the this is mcdonald's. >> it's not exclusively a tax deal. >> you drank a lot of coffee, pete, it's obviously. >> clearly. >> to me, this is absolutely one more message to washington about what's going on with our tax
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structure. >> a smart message, too. >> the message is, make it simple. make it competitive. >> put on a maple leaf. i think it's a great deal. for everything pete said i think obviously the tax thing is a big component of it. i still think burger king is cheap at current levels, i think it puts a bulls eye. it had a nice move today. i still don't think it's an expensive stock. mcdonald's held that 93 level. i think mcdonald bounced from these levels as well. now the post-interesting trade on the board is ocd. >> would you rather. >> i love this game. >> mcdonald's or burger king? >> without a doubt. if you are buying burger king, you got to wait a couple days on this flag pole higher. coming up next, dennis gartman is making big moves on the rough ride this year. the big unveil and later why one retailer may ultimately become
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the self winner on the heels of the iphone 6 release. stay tuned. . over 20 million kids everyday in our country
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so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com [ music playing [ music playing ] >> how about that? >> i get this. >> stop. i bought brittany spears on the dip, a major. >> now have you time. >> is she overvalued? >> you guys buy her. >> today kicks off our
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back-to-trade school series where our panel will answer your training questions live on air. all week you can log on to our twitter page or facebook, post your video questions using the hashtag back to trade school. don't worry about e-mailing it. post it, send it by a tweet. before we get to today's questions, we want to get a sense of how much the general public knows about investing. so we sent guy into time's square to find out. >> what is quantitative easing? >> it has to do with money. >> when you, it's the sum of a bunch of things and you work it out. >> janet yellin, who is she? >> she's a goal keeper? . >> a goalkeeper, manu or arsenal. >> i think arsenal. >> i think that was wilson's mum
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in "friend's". >> what is quadruple switching? >> you run down the slide and scream out quadruple. >> ride down the slide and scream out quadruple swiping. who is carl icahn? >> he's the guy that invented na co chips. >> reporter:. >> he's a guy that invented the circus. >> reporter: a headed on fouleders formation? >> i think an african dance show. >> reporter: what's your fate show? >> "fast money." >> that's my favorite show. thanks, young man. >> how emphatically icahn invented chips. we know we are more savvy than the average person on the street. this is video from daniel in ft. worth, texas. >> last week karen feiferman, at
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what strike does she recommend a buy put? >> that's that dude on the side? >> that's his father, his father. okay, so the question again is at what price does karen recommend buying puts. karen was so excited. she sent us her answer via e-mail. she says i generally go one to two months, two to 3% of the money. i might buy a 195 or 196 put. i'm not looking to protect the first put after a run like this. >> i think karen simplified the put. >> what would you say? >> i think karen's answer was absolutely perfect. spot open. what karen is saying, steve, to your point. >> thank you. >> i will move a little down put protection on. now i have my insurance. if the market falls apart, i've paid for this insurance. by the way, when you look at the
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volatility index, that's telling you right now we're at the very, low, low end of volatility. it's cheaper now to buy that protection than in years. >> two months out, you are paying that. >> it's a lot of pay dirt as we say. >> you are not getting a lot of time probably to your point. we're dealing with a market that's extremely volatile. because of that volatility. if you get a push to the downside in the next one to two months, those things will perform very well for you. >> we have time for one more question. this one comes from jumbo boy on twitter. listen up. what is meant by the term handle in reference to a stock price? >> when things move ahead. let's talk about it in two different way, a handle, meaning it went from 60 to 70 or the stock moved three handles, meaning it went from 77 to 80 that's what we're talking about. you need to understand the context. that's sort of a 101 kwlas for.
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>> you also in terms of s&p. >> price increments. jumboboy. same way the s&p cash closed today up higher. nine-and-a-half handle. price increase. by the way, please continue to send in the videos. twitter and facebook. >> all right, turning back to the markets. "fast money" an all time high, oil is down, it dropped more than 12% in the past two months. the next guest says oil is going even lower. another commodity could see a pop soon. let's bring in dennis gartman, good to see you. >> always good to see you. >> let's deal with the oil you are anticipating? how far down are you expecting it to hit? >> well, the problem with the oil market is you continue to see the mark, the early the structure to be very bearish. the front months, even on up days lose relative to the back months. crude oil is going into cantango
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and brent. it is in storage. it's bidding to go into storage rather than several months ago when the market was bidding to go out of storage. the mark is saying, we don't need you, prices are probably still heading lower him maybe down to doctor 85 a barrel. as long as the term structures, the front month, relative to the back months continue to show the fronts lose relative to those deferred, you have to be bearish of crude oil. that's the informed. that's where those who understand the need for or the non-need for crude show up and those term structures continue to be bearish. we are still headed lower. >> now to gas, dennis, a nice pop if today's session, when did you buy it? where do you see it going? >> i put on a recommendation to be a buyer of nat gas. i think you have, one, prices last week broke hard on bearish news for about an hour and turned relatively fast, much
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higher in a very short period of time. markets that don't go down on bearish news. the news last week was a large enjex of nat gas into storage. it only lasted for about 15 minutes and then prices on thursday afternoon closed sharply higher. that's an old story traders want to watch. something that doesn't break on bearish news isn't bearish any longer an you have hot weather out of the mid-west. it will increase in the near term. the final fact is when you get nat gas under $4 million, i think that starts to give gas a very inexpensive levels. you might see gas make it back to doctor 5 maybe $5.50 over the federal government couple months. let's be long gas, short crude oil. >> real quick, you are talking about supply issues and why the prices are lower. name the next commodity in your per view that you think is also suffering from a supply increase and will weigh out prices?
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peck the entire spectrum. where are you most concerned on supply? >> the supply in grain is adundant. we are growing the most amazing crops here in the united states. crops we haven't seen the past several years. prices have fallen pretip us thely. the problem will be the amount of corn, the amount of soy beans on hands will be enormously huge. it's great for the cattle guys. they're putting hog on feed, turkeys on feed, feed costs are local. >> that will be great next year remember it will put down pressure on feed prices, farmers will not curtail production federal government year and we're going to have an astounding amount of corn and soy beans on hand the next year-and-a-half or two. you probably have to be a seller. >> dennis, it's good to see you. >> tanks, mel, always good to be seen. >> pete najerian, oil goes to 85, what do you think of your oil raids? >> i think you have to be
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conscience slus of which are oil, which are gas. i think the integrated names can withstand the downside because you are getting expressier on both sides. >> likes exxon? >> exxon is under pressure. it would have been under more pressure if, help me, his name, warren. and buffet. warren buffet made that call on exxon mobile. that's why it was helped. it would have been much lower at this spot if he didn't take a stake. >> did you feed any help? >> no. apple is not the only company to benefit from the release. find out which retailer can see relief. next, which oil and gas play was lightened up pete najerian's options radar today? we got the name later on. [ music playing ]
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. welcome back to "fast money" while everyone is locking at apple after the iphone 6
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release. the retail fame could be the big winner. following your medicine, we will introduce you to the company making big waves in the digital health world. plus, see through pants, a thing of the past. one trader is making a bullish bet on lulu little on. first the s&p 500, we have given you your picks for stocks to buy, now, let's go around the horn and get the stocks to sell, tim, what would you sell xlu. i read this question at its highs that should go lower. i think the defensive nature of people looking to buy yield, et cetera, will start to pay. i think in the second half you will see industrial growth that will make this much less interesting. >> you are long southern, are you in a utility. do you think that's the defense and will trade on its own. >> i will stay in the trade. the one thing you want to buy, you think you are moving into slower growth. it's actually my hedge is growth
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continues to stay somewhat flat or under expectation. i think you stay in a utility because it gives you that yield. that's when people will flood in if they get subpar growth. >> pete, what would you sell? >> i'd sell netflix. i'd pound the table together. international growth i think is still there. it's at $140, mel, since may. that's a monstrous move. >> aren't there catalysts, tow? new house of cards. >> i think it's stretched. it's too much, too fast. i think it actually pulls back somewhere near the 200 moving day average. >> grasso, your stock to sell? >> it's exxon money. it's sitting on its 200 moving day average, 9830. if crude continues to move lower, this will move as well. i'm worried about that move in crude, it might be a little overdone. i think you have to hope for unseasonably warm weather going into september, october. >> home depot, tim talked on the
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things i talked about. i'm not saying short the name. the move has been quick in a short period of time. too fast for home depot. you have a ceo change, i don't think is a big deal. how much better can it possibly get into next quarter. you sell it here, look for pull back. >> apple and its suppliers might not be the only winners since the launch of the iphone 6 in september. joining us is peter jaffry, he's gone over on the price target of $34 bucks on bby. great to have you with us. how much of a boost could this be for same sales company? >> looking at best buy, this product hasn't had a model change. there hasn't been a good product that's come out in a couple of years. iphone 6 speculated to come out mid-september. we look at the potential unit numbers, 13 month itself, pe put
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about a 10% market share. we think given the new form, it's probably about a 1 to 2% same store sales benefit to best buy. in the same quarter it's huge. it's pumping negative a couple quarters. this could give them a flat slightly positive. >> they're going up against easy comparisons which will help that when you look at same store sales will that be a leg into the holiday season, then, give it a buffer into the therk? it should pick up? >> absolutely. if you look at the third quarter for best buy, we did a mid-september launch. they will only have it a month-and-a-half. one to two quarter. they will get a full benefit for q4. >> in terms of the stock, 2013 percentage wires, it went from 10 to 45 from the beginning to the end of the year. another type of move in it or is
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it going to meander at these current levels? >> i think you can see it drift higher to the 30s. the stock was at $37 in adjourning it had a massive blowup off the q4 numbers, basically, there has been a tremendous amount now of skepticism that best buy can't control it's own deficit fithat wal-mart and amazon ultimately define what best buy is going to do. i think that's a big exaggeration. i think they misexecuted in 2004. people drift back, now they have an easy comparison for q4. >> peter, thank you for have stopping by. do you think that best buy is more in control of its own destiny than other people think? >> i do. i like a store pence a store concept that they have been pushing to. they're they have been able lay off the pressures they v. we know about the big box retail and the fact that they've shrunk their full floor without it, it's been a great transition.
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>> there has been tvs and the fact that they have gone into this price competitive environment, they're starting to compete. peter said the comps make this a trade if nothing else in the second quarter half. >> in types of price, they said the price differentials between best buy and amazon is 2.3% than in the prior month in july. >> technicals. you see the shorter day moving average, that's positive for the stock. i see that twice in the last couple months. it crosses over the 100 and now the 200er force me you have more upside technically. >> is it the holiday? >> are you such again with the holidays. >> the nfl season hasn't even started yet and you are talking about, thanks, you are talking
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holidays. >> yeah. >> for mid-stream. fine, i'm going to move on then. i don't care awe have to say. time now for pops and drops, big movers of the day. we have a pop for blackberry up 1%. grasso. >> this was a stock that everyone bet agevenlts the shortage was still about 20%. thing to is up 34% year-to-date. so everyone looked at the as a security stock. you couldn't separate the hardware from the security. i think they've given apple, ios enough room tore competitive against the security meat. i would say any pop in the stock still should be sold. >> u.s. stole up 3%. >> here is your holiday trade. i don't know if it gets to 50, but i think it makes a push up to 45. u.s. steel is restructuring itself. it's a great turn around story. there is tremendous leverage there. i think it's in the cards. >> this is based upon the fact
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that their numbers are completely fine. the par jens are great t. cash flows are great. because of all those reasons, activist shareholders right now are looking for strategic moves out of the stock. they think this could be a very good interesting takeover candidate by pe firms. i happen to agree with them. stock looks cheap, today's reaction up, folks are buying into it. >> shocks from qhoo. >> these numbers were not bad the stock was destroyed. i think you take a look at good numbers, qihoo. it's an interesting company. i think there is a place to buy the weakness. >> we got a pop for blue lobster. >> oh. >> a 14-year-old girl from maine and her dad caught the super rare crustation over the weekend, a one in 2 million find. they stay blue hue is a genetic
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deck. it's nailed skyler. it will be on display at maine state akwirium. >> free willie geist, man. throw it back in the atlantic. >> we should break into the aquarium. hashtag free skyler. >> two bars now. >> hashtag. >> now some unusual activity. pete is look at an oil and gas click. >> qep resources, it's always drilling production. based out of colorado. when receive seen energy continue to move to the upside, we seen different spots almost every single day. pokes were coming out with the december 30-and-a-half call, looking to make another move to the upside traded by the end of the day. a lot of folks are expecting the stock to not get through 52-week highs and accelerate to the
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upside. >> is there a magic pill? there is one health care company banking on a smart pill. a tiny sensor you ingest that then sends data from your smartphone. we talk to the ceo about digital medicine. that's next. i took the trash ou. i know. and thank you so much for that. i think we should get .
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imagine an ingestible sensor no bigger tan the size of a poppy seed, tracking your activity and sending the da-to-your mobile devices. the co-founder and ceo joins us live from portland, oregon, with a look at how the technology works. andrew, great to see you. >> thank you. >> you brought the sensor. i think people don't understand how small it is. can you show us and walk us through how it works? >> yes. the little dot in the u, that's the sensor remember it's about 800 micron square. it's magnesium. if you swallow these devices, you become the potato. that's what we use to send the signal. >> obviously, your body will flush this through your system like anything else you ingest. >> yes. >> you have to keep taking the sensor. every time you take a medicine
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or a drug, you would ingest this as well? >> no. here's the idea. >> okay. >> right now the fda has done is to clear these devices you can swallow pence a tablet of the placebo with the medicine they swallow. we are in the process of digitizeing active pharmaceuticals. the goal will be 20 years from now, every medicine in the supply chain has it pence it to help the patient to understand how the drugs they're taking can work in their body. >> are you currently in discussion with drug companies of putting sensors if drugs? right now. you mentioned it's a separate other pill you have to ingest? >> that's right. also, we have two major drug companies we are partnering, one is novartis. one is a japanese company, we are working to create a fully ingestible solution. the other thing is 90% of the
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medicines people use today are not patented. they're established medicines well understood and referred to as generic. there is no barrier to us taking those and turning to digital products. that's what we're doing. >> so at this time, i mean, what are your plans? are you partnering with novartis. do you see a future in which you are independent and will continue to partner with drug companies or is eight point y-- it a point you don't need to work with the generics in the market? >> one thing about our company, it's been successful in the semi conductor industry. another is qualcomm or intel. we are the intelligence that's going to get pence medicines. if you think about what we are doing for the industry, it's an industry built from chemistry, they started to do biology in the 1980s and the buy logic track. what we're bringing to that industry physics. it's a powerful idea.
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we are tying in one of the most important medicines to the most important utilities of the 21st, which is the mobile internet. with rebuilding a really powerful new technology. >> this technology is amazing. at the end of the day, why do you need to track the medicines? why do you need a sensor to see how they're reacting? >> so appropriate use of medicine is a huge issue. they're at the front end of every health care system. they're the first thing every patient diagnosed gets to do. depending on the studies you read only 50% of the medicines are used properly. it's massive in health systems this terms of costs. giving people tools that they need to use medicines is a very important opportunity west virginia we say is we give patients and their families, the motivation they need to use the proper use of their drugs ask thank you tore coming on.
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we hope to see you soon. we appreciate it. >> thank you, melissa. >> amazing technology. now, are you sort of a robotics or a techie kind of guy. you like this kind of stuff. >> i do. it leads me to believe you need the ibb. if you go this way, you need to be in something where you will get a bigger reach. i don't know how you boo i this specifically. i don't know how you play it. whether you are playing it for collateral, whether it's drug companies or not. i think this makes it more apparent that you have to be in a fund versus specific -- >> the american heart association auto with new warnings. will it be a big hit? we'll break down the trade. that's next. .
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lululemon , one trader says the stock is about to turn the corner. mike. >> this is a fame trading well over average daily volume in options and the most accurately october 40 calls, we saw a substantial buy of those, paying about $3. they were making bupish bets they would be above expiration with the stock trading over 40 earlier today. this is particularly interesting
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to me, earlier in the month, we have corporate action with chip wilson agreeing to sell the shares to advent, they were going to get seats out of that. i point out for a kane that seen low double digit revenue five years in a row, the fact that this is trading 22-and-a-half times earnings, there might be something to this. i'll leave it to steve grasso or guy adami to tell us whether this thing might pull off. >> you are pulling up the cart right now, steve. what do you see? >> it's battling with the 50-day moving average. >> we're in the pants right now. >> it's battling with the 50-day moving average. let's call eight 3955. it's got to hold that level. if it turns here and holds above that level for the federal government i would say a week or so to be safe, erp e we were talking over this. >> do you know we are actually on the air. >> the worst is not a commercial
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break. this is the olympics now. i totally apologize and mike was on the air, too? >> more options action every friday 5:30. check out optionsaction on cnbc.com. a gateway drug, the american heart association is out with a new note, asking for regulation on ecigarettes on fear that the smoking now may lead to traditional tropic i tobacco products and may renormalize smoking, is everybody trying to make a move into ecigs, mote? >> let me say i own lorilard, these are an upside which is about 2% of the revenues. if you look at the industry, it's all about improving margins. it's one of the great conglom rates, altria. that's why you own them.
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it's not about ecigs kind of solving the problem. it's about these guys working in an industry where they can now control pricing. >> i do like lirrilard because of their exposure. >> it's optionality. >> it's a doctor 2 billion industry. >> it can grow more. >> it could grow a lot more. for that reason and hair in front of everybody else right now, so lorrilard to me looks interesting. >> stay tuned. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box.
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all on thinkorswim, from td ameritrade. ♪ ♪ start a team. join a team. walk to end alzheimer's. visit alz.org/walk today.
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. >> time for the final trade, tim. >> i think grain prices are going lower from a bumper crop. >> hewlett packard continues to go higher. >> kb homes, i'm long i'm staying long. >> guy adami, you know it's a special day today. >> what is it? >> a special day. not only the s&p rebuilt its first day. >> his 2,000 as well. >> quick, let's all clap, how many people here?
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on three, happy birthday. >> one, two, three. >> happy birthday! >> that was nice. >> final trade. >> isis. >> i'm melissa lee. see you back here tomorrow for more "fast." my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a consumer. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm just trying to make a little money. my job is not to entertain you but to educate you. i'm declaring this show a fed-free

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