>> they haven't made any announcements yet about streaming premium video on demand. but that's certainly an area to watch. >> i think the theater chains are willing to have this be -- i think the lesson is that the self-interests of a corporation often does not go according to any principle. >> shocking news there. thank you for joining me this afternoon. straight over to "fast money" with melissa lee and the gang. live from the nasdaq market site in new york city's times square, this is "fast money." i'm melissa lee. these interest traders tonight. steve grasso, dan nathan, karen finerman, and guy adami. and yes, you're listening to the song "patience" right now. it is that word that led the dow and the s&p to the best days of the year today. the federal reserve saying it will be patient when it comes to raising rates. and oil showing signs of life again today, though it's down 40% over the last three months. our own steve liesman asked fed chief janet yellen for her take on the oil drop. >> the decline in oil prices is

likely to be on net a positive. it's something that is certainly good for families, for households. it's putting more money in their pockets, having to spend less on gas and energy. and so in that sense, it's like a tax cut that boosts their spending power. >> and yet while oil was declining, guy, the marks were declining. oil is up today and the markets are up today. why are we up 2% on the session? >> because of the comments out of the fed chair, and because the ruble stabilized was up, 9.5, 10%. i think the stabilization there clearly helped. and then her comments clearly helped. people said it was an oversold condition. 1973 was the low. i think all those factors lined up. and a lot of it is quickly you have to ask yourself. if you think recession is a bad thing, then you're all for what is going on here with janet yellen and the fed.

if you think it's part of the cycle, you're angered by this and outraged by this. that's the fence that i find myself, that side of the fence. but it's good times charlie right now in terms of what the fed has been saying. >> what do you make of it, karen? >> i agree with what a lot of guy said. it did seem oversold the last few weeks. oil being so much of the story. it was calmer today, the ruble. i feel like the feds backed themselves out of a corner. they may still raise at the same time they would have raised. we will never know. but they have a lot more room to maneuver. >> it's obviously all about terminology. but if you have to look at the calendar, this was the catalyst going into year end. we don't really have that much to trade on. we have friday, a rebalance. so besides this, there was really nothing to focus on. if you look at the s&p, i think we pointed out that 1948 level, which is the 200-day moving average. so if you think we're going to go down to test that again, it still might be possible. for me, i don't understand how people can get excited about being long.

i think people are not positioned for the market to go straight up. and i don't think with oil at this level that the market can rally substantially from here. >> yeah, listen, i suspect that the high for the year is already in here. we were down 5%. a pretty treacherous setup into just the fed event. i don't think anyone thought the fed was going the light a match and throw it on the oil barrel here. and that's what we got. to me, i agree with all of these guys. i think it's absolutely comical if you think the fact that the fed was so careful not to throw that match, not to hint to sooner rate increases than the economy could deal with or that emerging markets could deal with, that we're up 2% on that fact alone, that's a pretty scary predicament i think for 2015. >> and you did deeper, guy, and you see a higher beta. the russell, for instance, went up 3%. bioteches were up more sharply than the rest of the market. so dig down deep, and you see some of the highfliers, quote/unquote and they did much better. >> that's a chase for beta. a lot have been sold off. a lot of people trying to get

back in. >> like solar, like tesla. >> that's what is happening there. i think some of the names, we mentioned a couple of the energy games. reagan seed drill, the fact that they were both higher. the best price action we've seen in those two names since this all started, higher on a lower energy. and those names had a great day today. thing is a chase for beta. i wouldn't put too much into it. 40 handles in the s&p is fantastic. i don't think the low has been put in. i do think we have to trade down to 1950. but i've definitely been wrong before. >> for more on oil, let's get to steve grasso who made it over to the smart board. he is looking at levels. steve? >> let's look at this. spread it out until we get a real long-term chart. if you look back here, that was that 140 high, and this -- let's call it a 44 low. back at this 140 level, this is when goldman called for $200 barrel of oil. obviously that didn't happen. six months later, you scream down and screech down to that 44 mark. so right now if you look at that retracements, because this is what we agree on as a starting

point, this is a finishing point. so if you look at the retracement levels here, we're this the mid-50s. substantially higher than where i think oil is going. oil is probably going to that $40 mark. so down here. here is where it spooked, the s&p. so let's call this a little bit off this chart. let's call it $65. if oil cannot get back to $65, the s&p will still be sold. so i think you're going the watch knee-jerk reaction, look at oil today. it closed lower than after the feds spoke. so i think we're going much lower in oil. and i think we're going much lower in the s&p. >> if steve right, if steve right, equities go lower. oil equities, which rallied pretty sharply over the past couple of days, do they go lower as well? >> some of them will. look, i think exxonmobil, you had that move lower. that stock had a nice move. that has potential to go a little bit lower. i think some of the drillers that have just been eviscerated, i think they showed their hand yesterday when they rallied on what was a lousy energy take.

those names maybe for if first time in some time, they put in a bottom. >> i think some will. but some are actually facing severe financial distress. and a little bit of a rally, if this persists in this range for a while, it doesn't matter for them. they're not going to be able to survive. >> i would reiterate what guy is saying. i would day away from the guys that have credit issues. but exon mobile has a 3% dividend yield. estimates have come down so dramatically for 2015, analysts already expecting earnings growth down 20%. to me there will be a floor somewhere for the large integrated. i would not go down the food chain, though. >> the fed making a subtle change in language, swapping out considerable time for patience when it comes to raising rates. our next guest says a subtle change could come to pass on the market. let's bring in chief economist maury harris. great to have you on set. why will it will more complex now when the fed actually raises? >> here is what makes things more complex. eventually they will be

tightening. and when they do, you're going to have upward pressure on long-term rates. however, by using this patient language and seemingly putting off the time when they would be tightening, you're probably letting the bond market stay higher and bond yields lower than they otherwise should be. look, there is a problem here because the bond market and the fixed income markets have not priced in the tightening that the fed is talking about when you look at the fomc members forecast thoughts. so i think the problem here will be that at some point when the bond market starts to price in, that you could have fed funds at 1 1/8 which is what the fed expects at year end. it's 50 basis points lower than that. so at some point you have to pay the piper on the fed and the bond market. but this is maybe postponed that. >> so what has the bond market been trying to tell you? here we are interests i think

ten-year rate, even with the move today at 2.2%. most people would have said given a rise in equities over the last year, you would see it closer to 4%. in your opinion, what is the bond market, if anything, maybe it's not trying to tell you anything. i think it's trying to say deflation, but maybe you disagree. >> i think the bond market is telling you first of all they're concerned what is happening overseas and that when bund rates and yen rates are under 1%, that has to have some anchoring effect on long-term rates. and related vein, you have 2 bond market also reflects that. so i don't know that the bond market is necessarily representative of economics thinking right now per the united states. it's reflecting more these global factors. i think that also as mrs. yellen said, when you look at tips, or the five-year forward and the bond market to try to see what inflation expectations are, a

lot of that could be affected by a flight to quality. also would point out she said look, everything that is happening with oil is transitory. and these effects are there now, but it's unlikely to be anything that is sustainable boost to the economy. it's a near term boost. >> maury, we're going to leave there it. thanks for coming by. we appreciate it. maury harris. how do you position to your end at this point? i'm just curious. the fed being out of the way. >> an interesting conversation. crude can go lower, but the subsector and all those individual names that. >> could actually move higher. >> sure. >> we saw the mna activity. everyone thought that these a lot of these companies were basically going to go out of business and default and they were going to be dissolved. so the fact that we're seeing m & a activity makes the shorts nervous. let's lock it in. you see a name like whiting. >> you think a lot of these big

sharp rallies are short covering rallies? >> every rally starts off with short covering because those are the guys that are quickest. they wind up buying the stock. they make everyone elsner vows because they're trying to lock in a profit you. could see a short covering rally go from now until the end of the year while crude still falls. >> we talked about it yesterday, and i put a short-term short position on the tlt, really looking at another week. my thought is we really got overextended here. i know guy thinks rates are going to remain low and go lower. i kind of believe that too. especially if year in a deflationary environment. i think the ball has come out of things a little bit here. if we settle into next week, the christmas holiday season, i think you probably see bonds settle in. you see equities tick up a little bit. and that's probably a good near term trade right now. >> dan nailed that yesterday, bk as well. the biggest commodity on the planet has been cut in half in four months. i mean you want to play a semantics game, that's fine there is nothing transitory

about it. there is something structurally going on. >> so long tlt still? >> i absolutely think rates are going lower. i'll stand by that. oracle shares popping after hours. we have the latest from the call, coming up. and sony officially pulling the movie "the interview." we have the details and the potential impact on sony, after the break. plus, find out why one hedge fund build a out of apple, coming up.

breaking news here. sony cancelling the release of its north korea-based film "the interview." julia boorstin is in l.a. with the details. julia? >> that's right, very dramatic news, cancelling the december 25th release of the interview, saying it's making the decision in light of the majority of inhibitors deciding not to show it. the studio saying sony pictures has been the victim of an unprecedented criminal assault against our employees, our customers, our business, all apparently to thwart the release of a movie they did not like. we're deeply saddened at this brazen effort to support the distribution of a movie and in the process it does damage to our companies, our employees and the american public. the big question now is whether sony will release the movie on video on demand because they're no longer locked into these

deals with inhibitors. we could even see a video on demand released as early as next week. if sony does decide to do a vod release, that could be its primary way to earn back the $42 million or so spent to make the movie, plus 10s of millions of dollars more to market it. whatever sony ends up losing on the release of this film is in addition to all the other costs of the hack attack, rebuilding its network, dealing with lost employee data, and now dealing with two class action lawsuits. those costs have been estimated to be as high as about $100 million. now melissa, the other thing we're waiting on here is what the department of homeland security and the fbi find about the credibility of these threats against movie theaters. i think it's very interesting that both sony and all of the theater chains have left the door open. they say they're not releasing it as planned on the 25th, but potentially down the line, they could choose to release it. >> and julia, in terms of making back some of that $42 million plus marketing costs, have we ever seen a video on demand

release or release straight to video that made even near that amount of money? >> melissa, i would be surprised if we saw vod release make that much money. i mean, usually we see direct to vod for movies that have a lower total budget. i can make the joke that if i wanted to see if sony has ever made that much on vod i could dig through all those old e-mails, although that's probably not an appropriate joke at this time. i think usually we would see vod, direct to vod really only used for smaller budgets. but it would help make some of the money back. >> jewel yarks we're going to leave it there, thank you. julia boorstin in los angeles with this story. the broader ramifications of course for the movie industry as a whole. this could happen to anybody. and it seems like there are no protections here to force a studio to cancel the public release of a movie. >> i keep on coming back to the security of it. just that part alone. and every studio and every company out there really needing to put in place -- i don't know

how big an adjustment needs to be made. i would think that that's where the money is going to be made. >> but is it a way to sell movie theater stocks, like a cinemark? do you carry this forward and say this could happen with any number of movies, for any number of reasons. >> it could happen at football games, basketball games. >> sure. but what i'm saying is these guys derive their income from admissions to movie theaters. so if now we start getting used to, which we've seen that revenue decline in the past, if now all of the sudden we're worried about security going forward, it could happen a number of times. so why would you still buy this stock? >> or they might have to spend more on security which is additional costs. >> which brings you back to names like fireeye which has been in the news recently and palo alto networks up 3% today. if you're looking for a trade-off, the bag of this, it shows you -- >> there aren't many, many hack attacks and these stocks don't necessarily go up. >> they probably didn't want to hack into sony until this movie came out. and you saw the ease in which they did it, which leads you to

believe maybe people are more vulnerable than they think. >> i think moviegoers can come back. think about what happened with batman. they came back and had a big box office. oracle came out. managing director richard davis for more on. this richard, this is great progress in terms of finally beating on estimates. because oracle has had a terrible track record. what do you take from this quarter given these are two new ceos at the helm now? >> what you've seen is the story is getting less complex now because they're really focusing on cloud. and that's really the key thing that investors will start to look at. kind of like what we saw with adobe when they switched to a subscription model. our hope is they keep growing that cloud business in the mid-40s, and then you could get a one to two multiple point increase on the stock. we're pretty optimistic on the story. >> richard, when we talk about a transition from that database

legacy business to cloud you see other companies do it. cisco is in the midst of doing it. what do the margins look like? this is a commoditized business that they're rushing into. so is it a short-term gain for a long-term sell on the stock? >> you know, what they actually do is they pick up a lot of extra revenues, more than just the maintenance on their software. so what they'll end up doing is grabbing enough revenues that i think the margins will start to at least stay even, and maybe inch up if they can get some economies to scale on other parts of the business. so that's really our thought process there. >> are you getting any sort of details so far on katz's and hurd's plan for the company? >> i think the key is to hear what this comments are with regard to the cloud effort. they really were frankly late in terms of going all in. and it wasn't until oracle world last fall that they said hey, we finally think this cloud stuff is a big deal. let's go hard at it.

that's what people will be listening for. >> richard, we're going to leave it there. thank you. >> thank you. >> all right. so let's talk. you mentioned late to the game. just in 2011 larry ellison made the comment cloud is a marketing gimmick. he wasn't a believe in 2008. >> figured it out. oracle seems to be doing it right. it was good quarter, 12 1/2 times forward earnings. i don't think it's that expensive. it shows you how lousy things are at ibm. not a great comp. but really illustrates the haves and the have notes in these big cap tech names. i still think ibm goes lower and it feels like oracle wants to continue to go higher from these levels. >> if they start to pick up more, the subscription revenue and higher margin, it is trading at 12 1/2 times everything. here is the problem here is the reason why intel and microsoft are trading at 16 times. there is no growth here. if they can start to demonstrate that, put a couple of quarters together, you will see it at 15, 16 times. and that's probably the

opportunity. so i don't think you chase it up 4, 4 1/2% tomorrow. but if you get a pullback over the next couple of weeks into the new year, it could be a laggard. >> a catch-up trade. >> a pull back to what, though? >> it's at 41.5 at the close today. somewhere in the range. it's been a pretty tight range in the implied move and the market was about 5%. i was looking at about either way pretty fair. so on the lower side towards motor. coming up, one hedge fund heavyweight is exiting a stake in apple. should you follow the smart money out? a day for the history books as president obama shifts to open diplomatic relations with cuba. but was it is a good move? we'll hear from one ambassador who says he is not so sure. stay tuned. from record breaking highs to major market meltdowns. every night the "fast money" team makes sense of the trades. serving up in-depth analysis and actionable advice. >> thing is where you absolutely trade it on valuation. >> all to help you prepare for the next trading day.

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welcome back to "fast money." we're watching a.k. steel up 6% in the after market. the stock is moving higher after the company gave fourth quarter guidance above wall street expectations on the profit side. this due to help from lower energy costs and materials costs. the company also said it expects a 37% jump in shipment others the same time last quarter, thanks in part to strong demand from the auto industry. melissa, guys a nice move here for a.k. steel to the upside. back over to you. >> thanks, dom. >> this has been the underperformer, obviously this whole space has been troubled. and when do you get in on something like this. and the same way that the crude market has to show some type of support before you can buy the energy names and the s&p. i think you have to see some real support in china and i have to see some real growth, or at least lack of -- more clarity on what their growth rate really is. so i would not be a buyer on these pops just yet. >> fed ex is going to get hit hard today, kicking off our top

trades. this after earnings fell short of the street expectations. fed ex ground and fed ex freight coming in just online. i think what really took people by surprise is they're only slightly helped by lower oil costs or fuel costs. >> it's not the big coup that everybody seems to think it is. >> not at all. >> you would think the margins would be through the roof. they're not. the margins were good, but not great. and their guidance was not good at all. we talked about this a week or so ago. this stock looks like it's probably pretty fully valued here. here is a market up 2%. fed ex is down almost 4% on a pretty good take. i think it has another 5 or $6 at least on the downside. >> i'm wondering expectations were obviously really high going in. >> no doubt. >> i would imagine they hedge a lot of their oil. and so there is a delay, and that we wouldn't see it. >> i should know that. i don't know. i should know it. but i'm not sure. honestly, i'm not sure they do hedge. >> i don't know the answer. >> we got to have them on. >> yeah. next up here, apple soaring

along with the rest of the broad market rally. but leon cooperman saying he exited his position earlier today on a halftime report. take a listen. >> we traded apple pretty well. we think very well of the company. we recently took our bet off the table there is no indictment of apple. we think it has more upside to it. but we found other things that seem to have a more appealing ratio to reward and the stock has not done very well for us. >> i think it's important to note because whenever we say maybe take some profits from apple, people get really angry. you're just making calculations where the stock can go from here versus the other options and targets. >> he manages money professionally. he has to make those assessments every day. he has had a great run in this thing. he actually called it a trade. that's kind of old school. but to him you have this massive run. the stock is up 36%. it was up 45% at one point. listen, i think when you think about the catalyst this year, i think a lot of the good news is in the stock. >> why don't you think about the other holdings that he has?

sandridge down 67%. there is a lot of stuff around the edges. we don't know what the thought process of the catalyst was for selling apple. but everyone is having a tough year in that space. >> i thought he said he had some other things where he liked the risk/reward better. i don't know what they are. does he tweet or not? he is going to get bombarded. >> by haters. >> i think he stayed off twitter. >> he is a late adopter. >> so late it hasn't happened. >> exactly. >> all right. coming up next, the oracle call officially halfway through. the latest headlines fresh from that call as the stock trades up by about 6% after hours. plus, the thinly cuba traded fund jumped more than 20% today, we met someone who said investors may not want to jump in just yet. stay tuned.

still ahead on "fast money," move over, apple. blackberry out with its new phone, and we have one here on set. plus the analysts who upgraded the stock today, coming up. nike out with earnings after the bell. what to look for in a very special "options action." oracle conference call halfway through.

we have the latest from the ceos on that call. first, we start off with the u.s. announcing its plans to restore ties with cuba. diplomatic relations were cut off back in 1961. claudine care caro joins us. claudine? >> it has been a lot to process for this community. i am here in little havana, the heart of the cuban community here in south florida. and the conglomerate of people who are gathered here are not at all happy with the possibility of the u.s. and cuba to have diplomatic and economic relations. and there is also the question of the generation gap. if you speak to cubans of the older generation, they say okay, go ahead and lift the restriction. however, it's not fair that three of the alleged cuban spies have been released. however, if you speak with the younger generation, no doubt they say hey, you know what? the embargo has not worked.

it's time for a change. however, this is definitely news that is going to continue on, that has been small protests here in little havana, caravans with cuban flags. one thing is for sure is that this news, what has happened today is going to continue on. and more questions are going to be raised and it's not going to be an easy road. reporting live, i'm claudine karo, nbc news. thank you so much. president obama's approach to cuba could have major ramifications. joining us managing partner of medina capital, manny medina. great to see you again. >> hi, melissa. how are you? >> good. a lot of people at least in the business community are very excited about the possibility opportunity with relations normalizing. you're a bit more skeptical. why? >> well, i'm skeptical, because every time that the cuban economy has been really in a corner or backed against the wall and any kind of change is proposed and they immediately

find a way not to implement it. so that's why i wouldn't get too excited yet until we see what in fact the regime is going to do. >> you actually believe that there could be ulterior motives if you will to castro agreeing to this, such as oil? >> well, i mean, venezuela, everybody knows that venezuela is in shambles. the old subsidy that has been really keeping the cuban economy afloat is going to finish very soon. that's a well-known fact. and i think the cuban economy is also in shambles. with that blow, there a different motive that all of the sudden they're being so agreeable to all these changes. that's what i'm saying. i would just have to be convinced over to the next few months how in fact they implement things. >> you're involved in investing in technology companies. that's how you made your fortunate, by founding and it being the ceo as well as the chairman which you sold for a few million dollars a few years

back. when you take a look at the tech opportunities in cuba, are they extremely limited? you brought up a point on the phone earlier today, manny, which actually shocked me which is how little internet access cuba has. >> internet penetration in cuba is less than 5%, which is amazing, a country that is 90 miles from our coast, right? think about 11 million people. so that's really my whole point. the whole country needs to be wired. if the industry all of the sudden begins to see that yes, broad band is going to be available, yes, in fact a device in every home and we're going to be free internally, that is, then i think you're going to see significant changes happening within the island. because once that begins, it's irreversible. it's kind of very difficult to believe this is 2015 and, you know, we're living with this type of limited access. >> once you connect cubans to the rest of the world, manny, all of the sudden information is free-flowing as well. what is your take on castro's willingness to allow that to happen? >> well, that's the whole point,

melissa. if they're going to in fact want to open more for tourism, it's going to be very difficult for you to cater to the upper class tourism that they want to and at the same time have an island that slivering in the byzantine age. so basically, i think the castros will have to show that in fact they do in fact want to have that kind of connectivity and that kind of freedom of information flowing within the island. and then i think once that begins to happen, i pretty much believe it's irreversible. >> so you at the end of the day, manny, you would be reluctant to invest in cuba. what is your read in the latin american entrepreneur community? because you do run this conference called emerge, which is going to happen next year in the spring. what is your take on whether or not entrepreneurs are actually looking at this as a viable opportunity? >> so as president obama said in his speech, you know, miami is the capital of latin america. so we do have the polls very much in latin america, innovation, and miami is the

capital. we believe in the context of all of latin america, this opportunity would not be as big in the sense and right away. but i do believe that in anticipating some kind of a change over the last couple of years, as we plan emerged americas and as we talked to a lot of entrepreneurs and business people from brazil all the way up to mexico, there is a lot of interest. but i think from the size of the opportunity, i don't think the opportunity is that sizable as compared to what is happening in some of the other rierjs megion. >> manny medina of medina capital. it's interesting to get a more cautious take. >> i wonder what happens if castro dies now, let's say, does that derail this or does that make it go forward with more speed? >> i don't know. there is already force here is in the united states that want to derail this effort. i mean, we heard from boehner. we heard from senator marco rubio about this. he is going to, rubio, that, do

everything he can to dale this. >> full disclosure, my partners are long cuba. the cba. hertzfeld basin fund for a while. now this is something where there is a lot of hurdles that need to be overcome before this happens. but this is a screaming positive. this is what this fund and others have been waiting for. and i think we're leaning towards a more open cuba versus staying stagnant the way it is now. >> real quick, jetblue and the airlines looking for a trade, one that could potentially win is one like jetblue. had a big day today. if you want to play it. >> and they do have service to keep it right now on a limited basis. oracle's earnings call under way. let's get to josh lipton for the latest. josh? >> on the oracle call, obviously a lot of talk about this company's transition to the cloud. oracle's safra catz saying it was better than expected. and take a listen to what larry ellison had to say about the

business. >> next year, oracle will sell about the same total dollar amount of new path business as cloud market leader salesforce.com. it's going to be close. we're catching up to them and we're catching up very quickly. >> so ellison going on to say that oracle intends to be number one in the cloud business. a quick note here on guidance. oracle guiding for q 3 revenue up 4 to 8% an eps between 69 and 74%. the street was looking for 73 cents. back to you. thanks. back to you. >> they seem to have figured it out. they seem to have the wind behind them. their acquisition strategy has been good. a couple of hiccups along the way. i don't think it's that rich at 12 1/2 times. maybe dan will disagree. i think the stock still has upside and it illustrates that companies that do it right, oracle.

and ones that do it wrong, ibm. time for pops and drops. a pop for general mills. up 2%. >> they reported this morning. reaffirmed their guidance. they did report sales. they were down 3% year-over-year. here is a company trading 8 1/2 times. this is not one i would chase up a couple percent. >> big pop. seadrill. >> we said the price action was really interesting, for the first time turned out to be right. i still think there is room on the upside here. now the shorts are going to have to start to cover. the all clear sign isn't there, but i think the stock has more room on the upside. >> pop for verifone. up 9%. >> talking about a few new expanding revenue streams, advertising. they just signed a multiple gas station deal. so a lot of ways to win here. an old name for us on the short side. but they've really turned it around. they've done a very good job. >> a drop for cliffs natural. down 6%.

>> credit suisse was responsible for the movement in the stock today. faces recapitalization and they move their price target from 1 to 10. it's a tailwind for a.k. steel is a headwind for them. lower all iron prices. i wouldn't touch cliffs. going back to basics with the new phone launched today. we'll talk to collin gillis and why he says the stock is now a buy. stay tuned. people with type 2 diabetes

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blackberry shares are soaring after the company bet big on a new model. it launched a smartphone called the classic today. it came hours after one analyst slapped a buy rating on the stock. glad to have you with us. >> great to be here. >> that's it. that's it. >> that's it. >> it looks just like the old. just like the old one. it's a little bigger. >> if you like the keyboard and you like blackberry, this is a fantastic phone for you. here is the key to remember, right? this sold over 50 million hand sets in 2011. they sold 49 million in 2012. and even the last fiscal year which was a tough one, it was 13.7 million hand sets. if they just convert a fraction of those to the new classic, they have a nice business. >> right.

i miss my blackberry terribly, it was a difficult separation. but the internet, anything on the screen was so difficult to do. >> correct. >> and they're resolving that, right? so the web browsing is three times faster. you a 3 1/2 inch screen that is larger. battery life is 50% better. it's 22 hours. and then you've got the fiscal keyboard plus the navigation keys that everyone loves. if you like a blackberry, this is the classic model for you. >> all right, colin, none of us likes a blackberry. they've gone from selling 50 million down to 13 down to whatever it's going to be next year. >> sure. >> so hardware is this. it's going away. so what is some of the parts here? >> it's funny, because i lifted my price target with the rating. i had sell on it for a long time. and then we flipped right to buy. and we rode it back up to north of 10. went to the sideline. because last quarter was the tough quarter. last quarter was the one where they had no new products. >> you had a great call in

september you. downgraded the stock, stepped away. and then you step back. colin, you're right. >> it's the early stages for this name. john chen is doing a fantastic job. this management team is on point. i was nervous i was going get too cute and miss the longer run. this quarter that comes is the passport launch. the next quarter, the one that we're this right now is going to be the classic launch. and they're getting a lot of traction with best 12 on some of the parts. i really only had to lift my assumption for the amount of cash on their balance sheet that they're not going to burn because they've done such a good job cutting costs to get to my 1250 price target. i still have very little value in the hand set business. >> that's exactly the point there, party boy. if you believe as much as you clearly do, then 12 1/2 is too long. you can make a compelling argument. >> you could. but i'm not going to do it quite at this time. certainly it's the early stages of a turnaround. any time you is a turnaround story, there is going to be bumps in the road there is a lot of value that could be generated

out of this name. let's just get above 10. >> one thing at a time, do you think cash flow break even with their results on friday? >> if that happens, i think that would be a big catalyst. >> i'm asking you if it's going to happen. >> if we get a little upside it could easily happen. remember, they only had normalized use of cash loss of about 34 million last quarter, so the whole issue, the whole tone of conversation around this company has changed dramatically in over a year. it's no longer is this a going concern, right. it's now hey, how much traction can they get? and if they sell 10 million phones a year. >> but colin, how are they going to sell 10 million phones a year when it's a follow-up on karen's point. it's about apps now. it's about when you have your phone -- >> that's not always true. >> so what about giving up? what am i giving up if i go with blackberry. >> right. >> can you throw to it your kids when you're sitting at a dinner table. >> nope. >> and let them play an app. >> they can play brick breaker. good old brick breaker. i was playing that while i was waiting. of course it's a targeted

market. they need to survive as a niche company. they are giving up what you get, you know, from apple's app store. but you do get amazon's app store. so it's a second place. but it's better than nothing. >> amazon's what? >> app store. >> all right, right. >> it's growing. and from an app perspective, the whole point here is that it's targeted to the enterprise market. enterprise, security, physical keyboards, they have their eye on that's their core demograph. >> we play this game a lot on set. would you either. based on your ratings, would you rather apple or black berry today. >> sure. more upside in blackberry, woo-hoo! send us tweets, everybody. >> all right. we're going to leave it there. thank you. collin gillis, bgc. would you rather? >> would i rather? >> blackberry or app phone. >> the man is spot-on all the time. >> all the time? >> he knows he is right on his price target. bk is listening right now.

bk is in the same camp. i'm in the colin gillis camp. >> i'm also in the colin gillis catch. >> he has had the call. it's 25% short interest. i do need to know what the ip is worth and all that other stuff. to me at some point, if they do go back to burning cash, then you're going to see a stock backing $8. still l still i head, how betters are trading ahead of that report, right after that break.

nike reports earnings tomorrow after the bell. some think it could move as much as 5%. in which direction? dan is at the smart board with the action. dan? >> that's a tough one, the implied move in either direction is about 5%. last quarter the stock had massive breakout, up 12% on better than expected results and forward guidance. but there was a trade that caught my eye today when the stock was $93. it was an opening seller of the jan 30th weekly 88 puts. they collected about 1 .50. they're basically putting in a limit order at 6 1/2. that's 88 strike less the $1.50 in premium that they sold. what is interesting to me is you have this event tomorrow. obviously there could be some movement here. but you're looking out at this level. this is where you would break even.

this is where you would be put to the stock if the stock was there with a january 30th expiration. why would a seller be selling options to create a bullish structure? look at this move in implied volatility. it's well higher than it has been over the last three quarters prior to earnings. taking advantage of the heightened options prices. >> thanks for that, dan. we got the breaking news in the last hour that sony will not release its film about north korea "the interview." for more on this we bring in the media reporter. thanks for joining us on this fast breaking story. julia boorstin was on earlier outlining the cost tosoni. that would be how much it cost the studio to make which is about $42 million luis the cost to market the film which is maybe in the 10s of millions of dollars. >> right. >> how do we look at the potential cost to sony if we move beyond that? >> this is a very, very serious liability going forward. the cost of making and marketing "the interview" film is de minimis. it was relatively a low budget

film. the average hollywood studio film these days is $85 million for production and another $20 million. so it's over $100 million to make and distribute. and this was not a serious investment or a serious loss for sony. what is serious is the class action litigation by sony employees and the loss of confidence that the market, which hasn't yet figured out whether there is any serious damage, the stock went up about 60 odd cents today despite all of the breaking news. what is really serious, though, is that sony is a technology company. and that is not the first time that they have been hit. they've had at least a half a dozen major hacks over the last three or four years. they've been warned by hackers. they've been warned by cybersecurity experts. in 2011, 77 million playstations subscribers lost all of their personal data through a hack

which included all of their credit card information. i mean, this makes target and some of the over victims of hacking look like small potatoes compared to what has happened with sony. and there is no guarantee that it can't keep on happening. they have yet to take one step to make sure that they are secure. what is really interesting is that michael linton, the head of sony enterprises took a week before he canceled the digital certificate that protects all of the sony's internal internet access. that was posted by the hackers on reddit and a poke in the eye for sony and its management. >> we're going to leave there it. porter, thank you so much for phoning in. do appreciate it. and we know of course activists had been involved in sony before dan low recently sold his stake. could this in your view, could

sony begin become activist bait? maybe dan loeb saying once again sony might be against the wall a lull bit. >> it's a good question. i don't know if dan would come back. in i would be a little bit afraid if i were an activist. we don't yet know the magnitude of the problem. >> exactly. so stay away. >> i would stay away. >> we have your first move story coming right back. stay tuned. how do you beat the number one seed?

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time now for the final trade. let's go around the horn. steve grasso? >> google. it's been under pressure, and i'm long it. 500 looks like support to me. if it trades down a 490, you exit the trade. >> dan nathan? >> you could exit at 490. but i think you see a couple of bucks to the downside. that's my play. a short-term trade. i'm long december 26 puts. >> karen? >> if we do have this gas situation that's good for the consumer, whole foods. i like it. i think they're getting their mojo back. i like it right here. >> guy? >> i tell you, now i want to see this interview, probably all of america wants to see it, do you think it's a conspiracy to drum up? >> you're dragging me into something. yes, i do. yes, i do.

fed ex said that a lousy quarter, it doesn't matter the market, it's going to go down. well, general mills was up on a lousy quarter. gis was higher. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 for more "fast money." 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." other people want to make friends i'm trying to make you money. my job is not just to entertain you but to educate you. it's not the direction of oil's decline, it's the ferocious and relentless velocity of the