Skip to main content

tv   Fast Money  CNBC  November 12, 2014 5:00pm-6:01pm EST

5:00 pm
i became a city planner and then figured out -- >> there you go. >> here we are today. >> still about more than 60% of people say college isn't worth the money. thank you to the panel for being here. "fast money" is coming up with melissa lee. hey there. you saw the big move in twitter today. we have the king of twitter and alex from target, a phenomenon born on twitter to talk about the power of twitter. >> i have heard about this. "fast machinoney starts rig now. steve grasso, karen finerman and guy adami. we are trading two big earnings move irs after hours, jcpenney and cisco. first, to our top story -- twitter's massive rally soaring well over 7%. dick costolo reigniting positive sentiment on the street.
5:01 pm
did he do enough to turn the tide? >> not too long ago was that article blaming costolo for everything. >> he's either going to live in the sunshine. we have to decide whether this new metrix they are trying to work on is workable for wall street. and the truth is, who cares if you are signed in or not. are you signed in when you search an google? >> no. >> is that information any less valuable? no. if they can get this instant timeline where you are checking on stuff and being engaged to twitter without being signed in, that's a wealth of information for advertisers and wealth of value for shareholders. i'm still long the name. this could be a fork in the road. >> have we seen the bottom? >> i think we have. we talked about it last week when "the wall street journal" article came out. they blamed costolo and
5:02 pm
management for everything. that's when you want to start to get into this name because all they have to do is one thing right. now you can argue whether or not this is sustainable. half the people i talked to are impressed with the presentation. that's it. imagine if they actually did something besides put together a nice presentation. there's a lot of value. a unique property. almost a monopoly. at the very least, it's a great buy. >> more than 500 million users who are not logged in. they are saying they can -- that that's valuable. >> at a certain level it's valuable. i think i'm not sure but i think you can trade it against 40 bucks. just had a monster volume today. 50 million shares. a huge move to the upside after trading below 40. made a base consolidating. we've seen moves where the stock has traded down before. then a big ramp up. you see it again here. they killed zuckerberg, larry page back in the day.
5:03 pm
now those guys are geniuses. >> the swing in sentiment. it was a week ago that article came out. everybody was piling on twitter. this guy can't do anything right. then today everything he says was golden. >> i think that will be good for a little while, until the next release. but, you know, i would not short this thing at all. and you can see it be strong for a while. >> and real quick, don't discount anthony noto being there. he'll get things done. he's a brilliant guy. i think he makes a huge difference. joining us is neil doshi co-head of technology and media. great to have you with us. was what was said at this analyst meeting so far, is that worth a 7-plus percent gain in the stock? >> i think a lot of people were excited about what they heard. first of all, there is a lot of loading. 500 million users who come to
5:04 pm
twitter who don't log on. there's a lot of things they can do to monetize those people who come to the site. they talked about the pace of innovation on consumer product side will be like we've never seen before in 2015. and that really got a lot of the investor base excited. we haven't seen that type of product innovation that's come out of twitter in a long time. they are already doing a lot of things that they've highlighted today such as like while you were away to really highlight interesting tweets that might have happened when you were sleeping or when you were away from twitter. being able to edit videos and pushing on video ads and also on video and photo format. i think a lot of exciting things from the product side and now getting into the ad side. people are definitely excited about what's to come here. >> sure. they mentioned the instant timelines. immersed into the world of twitter. they also talked about push alerts and notifying users of breaking news. let's get to the core question
5:05 pm
here and that is, logged in users versus not logged in users, are you satisfied with what they had to say about the ability to make those logged out users or users who are not logged in actually work money? >> yeah, you know, there's a lot of things they can do and they already pointed to what they can do. 200 million people come to twitter who are not logged in to come to twitter's profile pages. and they typically bounce out. twitter does nothing to monetize that. twitter can now put ads around that. if you come in to a profile page of katy perry. you might like lady gaga, someone else. so they can do a lot of things to keep you engaged in twitter and then kind of put ads around that. and that's i think a pretty big opportunity. so we think that there's a lot of things they can do. google, for example, when you log into -- some log into google. a lot of people don't. google can use that information just as well if you don't log in
5:06 pm
to try to monetize you. we think there's a lot of opportunity. this is the only realtime platform out there for news and information. and we think that's hugely valuable. especially as they start to figure out how to monetize these 500 million -- >> are they capable of spinning the story to lose that monthly active users, to lose that engagement of timelines? are they capable of spinning the story? it seems as though the analyst community is so set in stone on viewing these guys in one box. they need to be viewed as a different box. they are truly a search company at this point. a bona fide specific search company. so if by saying that, google hasn't had any traction on creating a social end for themselves. could this story about a takeout story for someone like google and can they change that story? >> it's definitely possible given google's size and scope. my guess is given all the
5:07 pm
scrutiny that google has around it, maybe google might not be the right candidate to buy these guys. microsoft has a huge market cap. apple has a massive market cap. apple hasn't really been successful on the consumer internet side. this might be a big opportunity for apple to come in and get realtime data and really be able to drive some interesting, unique innovation with twitter and apple together. >> neil, going to leave it there. neil doshi, crt capital. twitter shares up sharply. this was just twitter. the markets did nothing today. the sector did not much today. we had this nice gain. >> also a pre-monster sell. shorts have been looking for ways to cover. people have been looking for a reason to do that. i still think the stock goes significantly higher. we've got a news alert here an an earthquake in the united states. dom has the details. >> bat 4:40 p.m. eastern time,
5:08 pm
an area just south of wichita, kansas, near conway springs, was hit with a magnitude 4.8 earthquake. that's according to the u.s. geological survey. again, this earthquake happened a 4.8 magnitude earthquake just south of wichita, about 30 miles south there near conway springs. just to give you a sense of where that is, it's also about 120 miles north of oklahoma city. about 100 or so miles north of cushing, oklahoma, which is a huge depot and cross line for a lot of pipelines in the oil and gas industry. we don't have a lot of details right now. there have been no reported injuries or fatalities, but this is a very developing situation. again, all that we know is the usgs, the geological survey confirmed a 4.8 earthquake felt just between wichita, kansas, and oklahoma city, oklahoma. we'll bring you more details as they become available to us. right now, we're keeping an eye on what's happening with that
5:09 pm
particular situation. >> dom, thank you. coming up next, the latest from the jcpenney conference call. stocks trade lower. and a deeper look at whether the holiday gains came too early for the retail trade. plus, morgan stanley's chief economic strategist is back and more bullish than ever. should our resident bear, b.k., be worried? who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. [annit's working forny. new york state. already 41 companies are investing almost $80 million dollars, and creating 1750 jobs. from long island to all across upstate new york, more businesses are coming to new york.
5:10 pm
they are paying no property taxes, no corporate taxes, and no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that is is right for your business. see if startup-ny can work for you. go to startup.ny.gov.
5:11 pm
5:12 pm
cisco beating on both the top and bottom lines. let's bring in mark sue who joins us on the fast line. great to have you with us. cisco for a long time -- to china and russia as head winds. we're seeing that play out again. are we hearing anything on the conference call ather that trend will change? >> there are some good parts of the business, some head winds. it's coming from the emerging markets and the u.s. service providers. i think the weak guidance is really related to the carriers at the moment. i think in north america they have the larger hand. you saw some of the results coming out of juniper, cienna. now it's cisco's turn which is
5:13 pm
why the guidance is below what investors were looking for. >> given that revenue guidance and that eps growth is aneming at best, what's the right multiple with a giant company like cisco? >> it's a good point. and something we've been pushing for the company because over the course of the last decade, the suspect has gotten bigger and bigger or the multiple has gotten smaller and smaller. they have a lot of cash generation. they do a lot of positive things. you really want to get bigger at this point or do you want to get better. there's a lot of value to be unlocked and i think if we can reright the multiple -- >> structural changes such as what? >> if you think about a lot of these technology companies, the incentive is to get bigger and bigger. the better you are, the better
5:14 pm
you are. you don't always have to be that big. you can shed some business. if you did $70 billion in acquisitions and only shed $100 million in -- only gave $100 million in divestitures, that's somewhat lopsided. over the longer term you have to get rid of some parts of your business. constantly look at the frontal, go into new markets and be very nimble. i think cisco has the opportunity to do so, but i think right now, still moving a little too slow for what we'd like. >> mark, thank you, mark sue. it's massive competition. >> if you look at the stock. pushed up to $26 in the middle of last year. same thing this year now seemingly has failed. to mark's point you can make a competting argument and earn $2.30 next year. that gets you around $20 in
5:15 pm
three quarters. if you are long the stock, i think you get out of it and look to get profits. look to buy it cheaper, which i think you will see. >> he made the point of structural change. splits, spinoff. they didn't do the acquisition strategy. >> i'm always skeptical of those. you can spin some stuff off. if the value is there, it would already be reflected in the stock. in cisco, i think the risk/reward is terrible. you have a slowing global economy. i mean, you'll get a dividend off cisco. but i wouldn't be rushing in and buying on any dip tomorrow. this gets close are to guy's level. >> the problem is this is old tech. where they want to be, their margins aren't going to be as great. i don't know how long that stands. so if you look at ibm, ibm is down 13% year to date. this is a name that is really a short for the foreseeable future
5:16 pm
and then some. cisco, i don't know if they can get out of that mind-set of being old tech. they just got into that, let's buy old tech. that intel, microsoft bandwagon. i don't know how long it is before that comes up. don't miss a first on cnbc interview with cisco ceo john cham bebers on "squawk on the street." find fought karen is thinking about her faith in macy's management and if she is trading the big move. does this guy look familiar to you? it's the now infamous alex from target. he's teaming up with the ceo of shot to purt his newfond fame to good use and talk about the power of the twittersphere. from record-breaking highs to major market meltdons, every night the fast money team makes sense of the trades. serving up in-depth analysis. >> it's time to take profits. >> all to help you prepare for
5:17 pm
the next trading day. >> i would buy this stock and expect it to outperform over 12 months. >> this is "fast money." >> have a markets question? tweet us @cnbcfastmoney. s now v. changing the way you think of retirement. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪
5:18 pm
5:19 pm
i research. i dig. and dig some (trader more. search. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours.
5:20 pm
shares at jcpenney now on the lows of the trading session. >> comps also coming in flat. that was a disappointment. jcpenney's october 8th lowered guidance for low single digit growth. it did improve year over year so that's a plus in this promotional environment. but breaking down the quarter, the ceo said that while back-to-school was good, there was a slowdown in september and october adding unseasonably warm weather impacted sales of cold weather goods but things have improved as the weather has changed. >> we're pleased with the business thus far against last year's comps. saying that we're pleased with it, i think is the right comment. we recognize we have opportunities in december and january that we didn't totally o exploit last year. >> the cfo expects traffic will
5:21 pm
be down in the fourth quarter and he also thinks there's a misconception that jcpenney has a lot of negative cash flow stores. ellison spoke only briefly saying he joined jcpenney at the right time but it's too soon to share his thoughts or discuss strategy. >> thank you very much, courtney reagan. we often talk about new ceos taking the reins and then immediately kitchen sinking it. >> how such left? i wouldn't touch it at all. they had that one chance for transition. it looks like now they are caught up in the retail funk that's going on. for me, i'd stay far away from jcpenney. >> since they did give guidance october 8th, this may just show you either, a, it's a jcpenney problem. the problems got worse, and/or be the retail environment in general has deteriorated that much since october. >> i think it's the former.
5:22 pm
i think this is definitely a jcpenney problem. the word out of macy's were very telling. not a tremendous diskonting. a need to be a tremendous discounter. they've managed inventories which macy's always does really well. jcpenney has a huge short interest. i wouldn't go out there and short the name. i don't think there's a real big future for it on the long side. >> macy's rallied. that kicks off top trades. revenue mission as comp sales fell. macy's reducing the forecast for the full year. the chairman and ceo saying he remains optimistic for the holiday quarter. >> part of the reason macy's was up today is expectations had already been set so low. any time anybody announced anything negative, macy's would trade down. they come out with a quarter that was good. a beat. there was a one-time item. but when they lowered the guidance for full year, that seemed like a classic sandbag to
5:23 pm
me. they beat on the quarter and lowered the guidance even though they said november has started off well. they said don't extrapolate anything. but i think the chance of them beating that new lower guidance is quite high. when you see how they were able to manage lower revenues and keep the growth margins and still earn it shows you what a superior management team they have. they do an extraordinary job and the thing i like about it, they are always hungry. never acting like they are the best in class. always acting like they are trying to do better. trying to catch up. all that having been said, it's a big position for us. this is a portfolio management issue. you have to take some off the table. >> guy? >> we had an epic street fight last night. >> last night? oh, dan versus karen. >> all the things karen said have come to fruition. one thing we all said about the chart. it seems like every other year
5:24 pm
they have this sideways action. i think '14 was your sideways year. this quarter sets up 15 to be your up year. as long as the stock stays right here and above, it's off to the next levels which is north of 65 bucks. the quarter was fine and it was a massive sandbag. the stock goes higher. solid gains for yahoo! and aol after news several big investors in yahoo! are unhappy with the ceo's turn around efforts. they are making a direct plea to explore a merger and run the combined company. >> there are a lot of cinergys. i don't see anyone gets really excited. shareholders are not really excited about aol. it's around down 2%. yahoo! has had a stellar performance. based on the back of ali bauba up 25% year to date. the true story for the catalyst, for the bull side for yahoo! is alibaba. do you think that runs further?
5:25 pm
i do. i'm still long but only a 20% position. look for 50 to hold in yahoo!. >> i don't think anyone is going to argue the value in yahoo! is in alibaba. in terms of solving the problem of the core business, does tying up toole yahoo! solve the problem? >> no. it's like saying if you put two pigs together, do you get more bacon? no, you have to actually fix it and -- >> there's two pigs, there's more bacon. >> no, ask the farmer. >> we know what you mean. the point is you put two bad companies together it's not going to necessarily make it any better. >> anyway, terrible metaphor. >> i was wrong about this. i said in the after hours sell at 43 hoping for a pullback. it didn't get there. >> pigs notwithstanding. >> yes. >> guy? >> speaking of pigs, guy, what
5:26 pm
do you think? >> i didn't say that. he said. >> it was funny, but we all laughed a lot when he said that. >> i think a universal love for yahoo! for a long time. good tape, bad tape. i think a lot of people thought 50. here we are at 50 now. the problem at this level is the next quarter, which is we have some time obviously. now, my opinion, they really need to prove themselves. now they are beholden, i believe, to the price action in alibaba. you are flipping a coin. if you've enjoyed the move to 45 and taken profits. >> are you out of softbank completely? >> i am. right when alibaba became public. we got very lucky on timing. apple hitting a new high ending higher by just over 1.5% after ubs upped its price target to 125 from 115. >> apple traded don to 96.
5:27 pm
we made that point. i thought 88. obviously didn't get there. above 103 gets you 110. okay. now it's trading like something more is going on. something like maybe there's some allybaba partnership bantied about. leaves me to believe this is impervious to any bad tape. >> in terms of an alibaba partnership does that make you more bullish an apple? is that then competition for apple? >> we don't know what partnership they are talking about. we had stock in calls against it. some expired. some will be assigned. i would neither add nor sell it. coming up, is the market on the verge of an unprecedented bull run. big gains could be coming. he went from bad boy to a big freaking deal in a matter of
5:28 pm
moments. a rare interview with alex from target an the power of twitter in social media. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it.
5:29 pm
tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are, tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 call 1-877-670-3357. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪
5:30 pm
just a few years ago, he was one of wall street's biggest bears. now morgan stanley's chief u.s.
5:31 pm
strategist predicts the stock market is in the beginning stages of an unprecedented bull run. adam, good to see you. you have a one year from now price target of 2125. when you look out of the global landscape and see what's going on in europe, boe dongrading its growth forecast, you aren't worried about any of that? >> we try to get bearish before the market goes don. we made a list of sign postings. i put them in three buckets. economic factors, corporate activity and the credit cycle. when i look at those three things i'm still optimisting. we talked about on this program right before labor day this could be the middle of the longest expansion ever. i don't see a lot of capital spending, not a lot of hiring or inventory. i don't see a lot of delinque y
5:32 pm
delinquencies. i think generally this could be a long expansion. it's astrological to say the rally has been five years so it's going to end some time soon. there has to be something that causes it to understand. economic, corporate or credit to make the call. >> last night we had an a gentleman. what about a japanese debt crisis which seems logical given come of the things going on. i'm pretty confident they've lost control of their markets. could they potentially take the u.s. equity market down. >> my job is to worry about things all the time. what you're really asking is what could introduce volatility in to the earnings estimates. i think the base case is still that they are growing. the biggest risk isn't japan. it isn't europe or china but a slowdown in the u.s. economy. then i have to come back and say if we have a few bad jobs
5:33 pm
reports or isms, i have to come back here and say, less liquidity. taper the asset purchases. i'm still totally cool? no, that's a trickier argument. the u.s. economy keeps plugging along. we get improvement in jobs. then i think we're okay and can absorb slowdowns outside of that. >> let me give you a couple of the bearish arguments. so just a couple of things happened. one, maersk, the largest shipper in the world cut their global growth estimates from 3% to 5%, or 4% or 5% down to 3% or 4%. we're relatively insulated here in the u.s. but 13% of our gdp is exports. the highest amount ever. now qe coming up. less money in the system. go through that and point to point, tell me why i shouldn't be worried and why that wouldn't cause a slowdown. >> i think growth and rates
5:34 pm
matter. your two scenarios are the right ones to focus on. if you look at earnings season you'll find examples. a semiconductor company people called end of the cycle or all-time high. revenue grew about 3% year over year. earnings grew a little more than 6%. case of margins rolling over isn't really true. our view is that we have 7% growth. i wouldn't call that fantastic. i think what matters isn't that the base case is accelerating or amazing. it's okay and the bear case isn't very likely. you can point to different shares. i think part of the beauty of this is some countries and economies are doing better and some are doing a little worse. it's not synchronized like it has been. it can be more fits and starts but generally lasts longer than people think. >> you are recommending positioning going into this bull run. you like the names and sectors leveraged to this kind of move.
5:35 pm
small caps, retail, tech. >> we like small caps a lot. until the last few weeks they really lagged. growth potential is higher. i think their margin expansion is higher. small cap margins are slightly below their long-term average. the megacaps are all-time high. if you dream, we're equities. we buy our little dream today andstyle to someone with that dream. and thennor three main sector trades, i like health care over staples. staples are expensive and missing. i like retail. the trade with low oil, easy comps, low expectations sets up better into the next -- into black friday. and i really like software more than industrials because i think companies are investing not in property plant or equipment but in productivity. you see that flush out in the fourth quarter. >> thank you. small caps, how do you feel about those? >> it's all about rotation.
5:36 pm
if you feel like money has to go some place. it's always a zero sum game. so if you feel like you'll get the most bang for your buck on small caps you'll see people chase things. if he's right now could see them rotate out of large cap into small cap. >> in terms of retail? >> agnostic on the small cap. i wouldn't want to get in front of it on the short side. >> time for pops and drops. big movers of the day. a drop for sotheby's. >> sell the auction. big prices but the stock ran up in front of it like a big movie opening. >> jetblue, a drop. guy? >> jpmorgan downgraded the stock. it scares me we've had trouble at 13.25. but i think you buy it here. >> pop for fossil up 8%. >> this is classified as an old watch company but they have deals that they could be getting
5:37 pm
into the smart watch arena. i wouldn't be a buyer when stocks spike like this. wait and see it hold. definitely way lower. has to hold par. $105 before you buy it. >> drop for glu mobile. >> $3 stock. moving 3%, 4% isn't that big of a deal. what worries me is they have to continue to come up with the next product and that's why i would never, ever buy this. >> cisco earnings call about to rap up. let's get to dom for the latest. >> what we've got right now is some idea about the outlook. the company posted earnings per share of 54 cents. also revenues coming in for their fiscal first quarter. $12.25 billion. beating the analysts estimate. but the shares went up about 2.5% in the after hours trade. in the green, the red part at the right-hand part is because of some of the comments the ceo
5:38 pm
and chairman john chambers made during the conference call about the outlook going forward. >> for q2 we expect to see midsingle digit revenue growth in the range of 4% to 7% and nongap earnings per share in the range of 50 to 52 cents which would be an increase of 6% to 11% in terms of earnings per share given the range we covered. our q2 guidance reflects an added measure of conservativism. primarily related to reduce spend at several large u.s. service providers. >> here you have it. one reason, of course, whenever cisco says it's because of some reduced spending from some large service providers. >> one can also say that john chambers isn't very conservative
5:39 pm
when it does come to outlook. >> no, clearly. i'm still in the camp that given what they've said, given the guidance and the quarter. slap a multiple on it given what they're going to earn next year. the stock get s down to $20. silver is near four-year lows. shares of silver and wheat down in the past three months. we're talking to the ceo about how he's battling the falling prices. that's next. ok, if you're up there, i could use some help.
5:40 pm
smart sarah. seeking guidance. just like with your investments. that sets you apart. it does? it does. you're type e*. and seeking another perspective is what type e*s do. oh, and your next handhold... is there. you don't have to go it alone. e*trade gives you the support and guidance to make informed decisions. are you type e*?
5:41 pm
5:42 pm
silver prices hovering near four-year lows. shares of silver wheaton have followed the metals lower. the company hired by reporting earnings today. joining us is randy smallwood, the ceo and president of silver wheat. >> great to see you again. >> thanks for having me. people take a look at prices and they get worried about everybody whether it be streamers or actual miners. talk us through what it cost for you, the average cost of an ounce of silver, and where the -- what the pain threshold is. out of the miners or streamers,
5:43 pm
our cost is around $12.50 per ounce. we still have arjins in excess of 50%, even with the drop in silver prices. we're in pretty good position. with these lower prices it opens up opportunities for continuing growing our company. obviously further acquisitions, further investments are cheaper than a year ago. >> are you actively looking? you've only had one streaming deal since you announced these deals with volley. >> we're always looking. in our company we put a high focus on making sure they are low-cost assets and they have healthy operating margins. we focus an assets in the bottom half whether at the copper mine or lead zinc mine. the challenge is there's not a lot of quality assets out there. still generating healthy cash flows. we have to be patient and healthy. our patience has paid off and we'll to be that patient focused
5:44 pm
on quality. >> there seems to be this weird disconnect between the paper market and physical market. the u.s. mint said they ran out of silver coins. a lot of weird stuff going on. is that accurate? how can you take advantage of that? that probably plays right into your strength at a certain level. >> it does. somewhere on the line that paper market will wind up folding into itself and it's going to catch up. we continue to focus on delivering more and more of the physical side and it's going to eventually, as i said, it's been described as a house of cards. it may fall down soon. we're justice preparing our house for that point. >> what happens if it does fall down discipline that then mean the assets have to be sold and silver goes lower or does it mean we get a spike? >> i would say it's a spike if you start having to deliver into those paper shortage. thois increases in physical
5:45 pm
demand on the industrial side and investor demand. the u.s. mint running out of silver and not being able to supply the demand for their one ounce coins. we see that all over the place. >> what are your forecasts for silver over the next six months, year. >> our challenge is we measure it in u.s. dollars. the u.s. dollar is strong right now. the benefit of cheap energy to the u.s. economy has definitely helped. i tend to not look for six months to a year. i am bullish three to five years out. i think we'll do very well in terms of commodity prices. six months to a year i'm probably flat to push up. we're close to a bottom here. when you look at the producers, their cost of production is at or above where we are right now. it's just not sustainable. we've hit peaks gold and peak silver. and gold production, silver production is going to drop over
5:46 pm
the next several years because there's not enough profit. that will put upward pressure on silver prices. >> thanks so much, randy smallwood, the president and ceo of silver wheaton. we've been talking about this in the context of oil. what price does oil fall to at which time producers will start pulling back. same thing with the silver issue. he thinks soon. >> there's something strange going on in the gold market. the pont about the massive amount of leverage in derivative products is a huge point. it's go to have a massive effect on the market. the challenge with gold and silver obviously is that strong dollar. gold could be challenged and my puking camel could go for another regurgeitation. >> how many animals mentioned tonight. >> obviously this is a risky to play with these stocks.
5:47 pm
silver wheaton, pan american silver pooim of the belief this is going to happen. the best thing to happen in the metals market were these etfs. at a certain point, you want to be long the physical and i think you do it in ways, do it with these stocks very leveraged to the price. crazy as it sounds, i like pan american silver here and slw. one trader is making a massive bet the stock will jolt. another 5% in the next two weeks. mike khouw with it. >> if we look back to october we saw somebody was snapping up a lot of the november 47 1/2 calls right before the stock went up. a little over 7% since then. well timed bets. they were selling those calls today and purchasing the december 50s for about 50 cents. the stock would need to be up about another 5.5% in the next
5:48 pm
38 days. so one trader in the past decided they want to push their bullish bets there. for more equipmeoptions act check out our show at 5:30 on friday. alex from target joins us after the break. much more "fast" straight ahead.
5:49 pm
where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.
5:50 pm
5:51 pm
♪ in case you missed it, alex from target is the viral sensation that took over twitter. a photo of the young target employee quickly took overafter a young girl posted it on twitter. he's gone to about 733,000 twitter followers in the past week and a half. now she's working with the ceo of the king of twitter to
5:52 pm
harness it. joining me is alex. what is life like now? things must have changed tremendously now that you are a twitter sensation. >> it's definitely changed a lot. it's pretty overwhelming, actually. >> how did you get hooked up with john? >> i actually -- we got in contact through twitter. >> so born on twitter and connected through twitter. john what do you see for the potential of a guy like alex who has so many followers and can really defoon what he stands for at this point? >> there's a lot of potential right now. the goal is to keep momentum going and also figuring out how to convert this into something very positive. that's why alex and i speak about daily what alex's parents and i speak about daily.
5:53 pm
that's what we want to do and that's always been our mission with everyone else that i work with as well. >> you got alex to get on shots. and shots.com is your venture. you are the king of twitter. how important is it? your followers, first of all, it's crazy. your last name has become a verb n now. in one hour you retweeted something and now i'm up to, 1400 retweets and 1300 favorites in just the past hour from one retweet. >> yeah, well, shots, myself, shots' accounts, some of my partners at shots and alex, we have a big teenage influence. we want to convert that into something positive. this message we stand by. now that's what we want to do next. how do we become a place where a platform, where we can actually
5:54 pm
really, you know, be a positive influence and encourage people to do great. alex has been doing great. all his tweets, he's always very positive and just being -- conveying this message to the world. that's what we want to do. there's really two things i told alex from day one. we can make a lot of money, quick bucks or do something bigger. let's use our power to do something valuable. >> i got shahidi'd at the allman brothers concert. >> you went to the allman brothers concert? >> they are big "fast money" fans. i have a question for alex. your teeth look great. your orthodontist and tweet that out. you'll make a fortune on that
5:55 pm
alone, right? >> seriously, in terms of using your new platform for good, what are you and john talking about right now? >> boy band. >> we're just constantly talking about how like we can influence other people in a positive way and just try to -- i guess make things better for other people in my generation. >> john, is this just a fad? is alex from target going to fade away? he was on ellen degeneres but is this like a flash in the pan? >> no, not at all. i believe in him. i believe in his parents. and, you know, he had ellen a week ago. this morning, "the new york times" wrote a great piece on him. now he's at cnbc and he's going to be doing a lot more. also going back to, what are we going to do specifically. really our message at shots is
5:56 pm
to create a social network that's focused on eliminating or minimizing cyberbullying. a lot of nick's article today, this morning, spoke on that and what's happening with alex and his family and what teenagers are saying online. we want to teach them, this is not the way to talk. you have this tool social media to say really cool things to people around the world. let's do something better. let's do what alex has done. just a kid from texas who just happens to be good looking and becomes famous and now you aren't going to see him tweeting about dentists or any of these offers. that's not what he's doing. he's not selling ads. he's going to turn this into something positive. >> john shahidi and alex lee, otherwise known as alex from target. we've got your first move for tomorrow. we want to call your attention to some sad news. a young fan of ours, kevin rudy
5:57 pm
who loved investing in stock options passed away last night. he was 26 years old. our blessing goes out to his family tonight. (receptionist) gunderman group. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome!
5:58 pm
i love logistics. [annit's working forny. new york state. already 41 companies are investing almost $80 million dollars, and creating 1750 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, and no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that is is right for your business.
5:59 pm
see if startup-ny can work for you. go to startup.ny.gov. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud. today there's a new way to work. and it's made with ibm.
6:00 pm
final trade time. >> you've never heard me mention this stock. best buy. >> welcome to the fertilizer space. >> on the back of the cyberarc news. >> meantime, "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. just trying to make you a little money. my job, just not to entertain, b but to educate and teach you. let's do thing we haven't done here in ages. let's talk about apple. here's a company with a stock that goes up ly

100 Views

info Stream Only

Uploaded by TV Archive on