tv Fast Money CNBC February 12, 2015 5:00pm-6:01pm EST
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more than they're worth and expect them to deliver. that's a much better way to do it. >> be worth every single penny. thank you guys and gals. that does it for us on closing bell. "fast money" is coming up in a few moments. melissa lee, what's it. >> 50 trades and pay. >> trade over to you guys. >> "fast money" starts right now live from the nasdaq market site overlooking "new york times" city scare. anthem, sony, target all victims of cyber security. the cyber security firm fireeye. we'll talk to the ceo about what he thinks could be the biggest threat out there. we've got the biotech name that could be in for a big shakeup next week. a new segment called stock therapy and it's coming up. first, to our top story, oil's big rally. crude up. comments from the ceo of royal dutch shell. the ceo saying rapid recovery
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and oil prices could occur if projects are postponed or canceled. combined with economic growth, the market could tighten quickly in this scenario. this on a day when wti soared, tim. >> the day after we got inventory numbers were terrible. the divergence between oil analysts and people that know the space and the gran knew late of the space versus more market generals, people who are not oil analysts like me feel there are some elements of this trade that i think the guys that are too close to the action are making a call here. we know there's too much supply. if you look at what's happening the oil majors are telling a story. they spent money on renewing an oil license in abu dhabi. it puts pressure on the other oil majors to spend money. oil prices have bottomed. i don't know that they spike but i look at the rest of the oil commodity. i see iron ore which is basing around $65,000. i think this is an interesting time to play. >> we had oil equities having a
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nice time today along with technology, along with financials helping the s&p climb. grasso? >> i think oil will turn around and head back down again. you have to realize that production is probably not going to plateau until the second half of 2015. i don't think that's in the numbers. i think this is still a short covering move to a large extent. >> you think they have to move higher in oil equities? >> i would fade both. fade the move in oil equities. they're not moving together obviously. the commodity's trading like a stock right now. a lot of guys are day trading this. i would be very careful. i wouldn't be a short seller here. definitely i would take some profits. i think the move lower is coming. >> a lot of things tim was talking about is starting to come to fruition in oil. well done there. what concerns me about it, i'm sort of in steve's camp, look at the ovx, oil volatility index, it's 58 and change. this had a 30 handle on it back in november. it historically trades in the teens. that reason for me means i think
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have another leg down. i'll say this. goldman sachs downgraded rig two days ago at a $12 price on it. they're due to report next week. i've said it for a while. that's going to be a fascinating earnings report. whatever they say could set up karen who's been talking about sea drill. you might get a relief rally in cdrl. >> sdrl. >> what did i say? >> c. >> i meant s. >> they drill out at sea. >> they drill out at sea but sea is sea. >> thank you, georgetown boys. karen, where else in the oil space could you see some value at this point? >> you know, to me when i look at the plan i don't think i'm ever going to be able to pick the bottom. what i try to do, take the emotion out of it and just put money to work rate bli over time hoechg that the average entry point is okay. if i stay with it long enough, it usually is. a name like sdrl is one that we
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have. i would look to add for that. the oih didn't trade so well today. we talked about this a number of times. the equities and the commodity itself almost never bottom together so if you think you can pick the bottom of both, i mean, i don't know. it seems too hard for me. >> the time horizon is five years, two years, whatever that is for somebody watching at home, you could pretty much throw it at a dart board and buy anything that's going to be higher from this point. we're talking about threading a needle in the next six to eight months in energy. >> i don't think you have to do that. look at what karen said. the oil equity has bottomed for now in mid december when markets bottomed. the oil had the big spike down. they've been grinding and had some runs in the underlying commodity. since when did the fundamentals change. six months ago didn't they know about the same disparate between supply and demand. they were trading 20, 30, 40% higher. either way i think people
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overreacted. >> brant ran up more today. that spread actually, i don't know, i don't know where that spread could go. >> that runs. >> i know. >> when the underlying commodity gets cut in half it demands the whole space is volatile. we watched this get cut in half. how does anyone have a good clue where oil is going if they thought it was going higher at 110. >> where do you think the dollar is going? >> i don't know. >> yeah, i do, too. i don't know necessarily that means oil's going lower. historically obviously that's been the case. everything to me is a lot of decoupling going on. i still -- i think the elevator volatility in the index leads me to believe there's another leg down. that's just my view. >> in which index? >> the oil volatility, ovx. >> how about equities? >> again, go back to tim. tim made a great point. exxon oil traded either the
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equities has to catch up to the commodity or the commodity catches up to the equities. i think it's the former. >> tell me you get the currency tail wind from the euro. i'm not going to make a call on the euro. for these guys it's a much better volume. it's paying you 6% dividend. tesla has been trading along with oil for the past six months. that could be coming to an end. today tesla fell 5% and oil spiked 5%. here's what they said last night. >> it has some effect but i wouldn't say it's -- it's not a dramatic effect. i call it a moderate effect. and i'm not changing any of my projections. >> that doesn't exactly change the narrative or the belief out there that it does, that there is some sort of relationship.
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it's interesting because when oil goes up you would think that tesla goes up. it seems to have decoupled on the up side but not the down side. exactly. >> their model 3, mass market car, isn't going to be relatively uncompetitive if fuel prices stay where they are. massive drop like this has to hurt the interest in that let alone the competition i think is there. >> but i think the question is do you think that oil prices and gas prices specifically will stay low all the way out to 2017 when the car's actually out? >> i think that's a big -- that's a big question but if you look at it, i don't think -- even the saudis said it, everyone has collectively said it oil prices are not going to be back at $100 a barrel. looking at much lower levels. 85 when you get the risk headlines. gasoline prices demand is really picking up at these levels. so i think gasoline has bottomed. i don't think oil has bottomed. >> how should we trade tesla. >> that's what it comes down to. >> a lot of the analysts notes were positive. >> a lot of guys lowered their estimates. jpmorgan -- >> they downgraded.
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>> it's a mixed bag. let's just say. we've been talking about it for a while the range the stock has been in. we said last night during the release, 185 sift down to 185 if it holds trade it from there. it didn't get that low. it got to 193. it did spend the rest of the day rallying. it traded four times normal volume. we traded and seemingly have held levels we've held over the last six months. again, the setup for the trade to me is sort of simple here. you either use today's low as a stop, make it a 185. at least your risk/reward is somewhat defined. more so than i believe it has been in a while. >> if production is really the question in this stock, china's not going to be their growth segment in the marketplace, i think you have to put the whole premise on the buy thesis. >> doesn't matter if there aren't enough cars for around the world anyway? even if there were more demand, they couldn't feed the demand. >> they can't scale. it's a production and a competition competitive market right now. before no one wanted to look at
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a bmw or a ford or a gm. no one would look there. now you're starting to see those prices be ultra competitive with tesla. >> it's not just oil tesla is being compared to. elon musk said tesla could grow as big as apple. take a listen. >> take this year's revenue, you know, around 6 billion or thereabouts and if we're able to maintain a 10% growth rate for ten years and achieve a 10% profitability number and have a 20 pe, our market cap would be basically the same as apple is today. >> that's quite a bold prediction from a guy who seems to talk -- >> i'm not sure that's a winning argument. seriously. how do you make that call. >> why would you want to make that call? >> that's a very good point. here's a guy that's done a lot of talking about his stock. >> i'm surprised. most people don't want to talk about their stock in that kind of way. that's some pretty gigantic
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numbers. the idea of 30% growth for ten years is, i mean, just very quickly it's doubling like 16 times whatever his revenue is now. more. more than that. that is -- i mean, could he be gm? could, but that's -- >> it would be -- >> that would be a long shot. >> it would be gm times something and it assumes in my world no competition. >> no one else plays the game. >> then at the end of that day after that decade of 30% growth, then put a 20 multiple on it. >> right. >> you talk about apple, extraordinary growth. maybe apple has had that kind of growth. there's no 20 multiple there. >> right. >> so, i mean, you could still make money from here to -- you could do this with any stock. if you wanted to project out. >> no ceo does that. >> i agree with you. it's irrelevant. it's stupid to do that. >> i also just think it's interesting because they've just reported a quarter where in the third quarter and fourth quarter, these are small numbers, in absolute terms
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production levels now are meaningless if the demand is what it is, but it's a company that's having trouble scaling. here's a guy talking about the ultimate scale job and they haven't even done it. >> it's a company that's going to have to raise a lot of money. talk about the giga factor, they need a lot of money for that. >> exactly. >> they don't generate a lot of cash flow. there's going to be some sort of capital raise. it won't be diluted. there will be a bond rate. >> not if you lose money. just math. >> i think the larger argument is why would he go out and say something seemingly as preposterous? what is the up side of making a comment like that? >> none. >> because he's got to mask the fact that he can't scale and that production levels aren't where they are. he has to give you some sort of bullish premise to stay in the stock. >> fireeye so i remembaring. the ceo talking to us about the ongoing cyber site.
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move over "fifty shades of gr " grey." we have our own take on the steamy series, fifty trades. that's coming up on "fast money." yes, i've got some special props involved. >> ohhhh. the most powerful app or managing your portfolio from the palm of your hand. only vectorvest mobile analyzes, ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started whiand repeat themselves..... we choose to carve our own path, in the pursuit of exhilaration. the 306 horsepower lexus gs.
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an earnings flash on two digital gain makers moving in the after hours session. we have the story. dom. >> it's all fun and games or maybe not so much for these two game makers here. they're in focus. zynga stock down by 10%. it reported a break-even quarter that matched estimates but revenues were less than expected and the number of monthly active users also came in below expectations as did its first quarter eps guidance. you can see that big move to the down side. the up side mover, you can see king digital up 18% over 1.3 million shares of volume. the maker of candy crush saga hit the investor exacta here. better earnings, better sales, better monthly active users than expected.
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it said it will buy back $150 million in shares and pay a 94% share special dividend. hence that wave of green. five of five on that exacta. >> so it's the bad first. eps this quarter last year was 64 cents. it's 57 cents. that's the worst thing i saw. revenue beat was unbelievable. obviously dom just mentioned special dividend and stuff. as crazy as it sounds, it's really not that ridiculously expensive of a stock. tim was talking about it before. a huge short interest. i know it's up big in the after hours. there might be more room to run on the up side. people are going to get smoked on the short side. >> shares of cyber security company fireeye getting a boost on the back of a better than expected quarterly report. they're helping on the cleanup report of sony and anthem. even after adding 1,000 customers in 2014 fireeye posted
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a loss in the fourth quarter. we have the chairman and ceo dave dewolfe. great to see you. >> good to see you, too beings melissa. how are you doing? >> great. it looked like a great quarter. a lot of analysts pointing to encouraging signs in the quarter. you've become the go-to company in breaches. you're managing to gain some traction with some of the managed services offerings that you've got. i'm wondering in this quarter how much of the quarter on the up side can be attributed to the high profile hacks or is that something that will pay dividends later on? >> well, first of all, melissa, you know, we did have a strong fourth quarter as you just suggested. it was kind of a journey in 2014 acquiring mandian at the beginning of the year, internationalizing the company, growing the business at the rate we were doing it. we got stronger every single quarter in 2014. it really culminated with a strong, you know, outcome of the
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year. but to your point, we did get some good benefit from that. more in the publicity and the voice side of things as customers really decided to, you know, put mandy and fireeye side by side as they announced the breaches. i think some of that is to come. obviously we'll continue to grow our business. we've really set ourselves up for the future. >> how should investors debut profitability on your trajectory. one analyst told us that you're spending like rock stars, those are his words, in that you're putting some pretty massive dollars to sales, research and development. can you comment on profitability? because i think investors in this environment are looking for that to move up in terms of a target as opposed to letting it be out there in the future. >> yeah, absolutely. i mean, first of all, we see a massive market opportunity in cyber opportunity. it's obvious the threat levels are changing nearly every day. we're starting to see sabotage, terrorism and acts of war in
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cyber space. cyber security has never been more important, the danger never more real. a lot of the growth we're seeing is reflective of the market opportunity. we're spendings appropriately to the growth. we're growing amazing. 10x 'd the company in the past three years. we have a specific path to profitability we outlined. as you probably saw we broke even on operating cash flow. 11% beat on eps. we are really confident about our path over the next three or four years and gaining profitability and ultimately three to five years to our target. 20 to 25% profit margin. we'll continue to try to earn that. >> dave, you come on our show when the stock was at all time highs, you've come on our show when the stock is at lows. since october the stock has done quite well after a period of just sort of a roller coaster and then a languishing. do you believe that the results going forward will support you
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not being in the penalty box anymore? >> well, i hope so, melissa. i think we're really at a reflection point and inflection point for the company. we worked really hard in 2014. we overcame those obstacles and just get mandian on, get the changeover from private investors to public company investors to getting a full year of mandian. i think we are. i think we're undervalued. i think we're going to continue to grow. as i said, the cyber security market is red hot and i think we're well positioned to take advantage of that. >> could the best way to see full value of your company is to sell it? they intimate that your business would fit in nicely with a larger company looking to beef up cyber security, cisco, ibm, that have better sales forces than what you have right now. you pair that with your track record ceo mcafee that sold to intel. this guy might be looking to
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sell fireeye. >> well, you never look to sell a company. i mean, what you look to do is do the right thing for shareholders. you really focus on fiduciary responsibility. right now i see a huge opportunity to grow the business organically, drive the model we set out to do. we put a lot of foundation in the last two or three years in place to leverage the growth globally with the business. so i'm really focused on that. but i'll always do what's right by shareholders. make sure we gain value for them. we've worked hard this year. hopefully the last few months they got a little bit of value back. we want more value. i think we're just getting started with what we built and i'm hoping to return that to the shareholders. >> dave, great to see you. thanks for your time. >> thank you, thanks for your time. >> dale dewalt. >> what's your trade? >> it was 26, $27 in the aftermarket. we talked about how that might have been it. that might have been the flush. turns out a few ups and downs since then. it was. as bad as it was then, it seems like it's that good now.
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how do you trade it? trade it four, five times normal volume. i think you take profits into stock. do i think it gets sold to somebody at some point? probably yes. but i think there will be a lot more fluctuations in price before that. >> the thing about what they reported that's very interesting, it looks like they might have also hit in october or last year their peak free cash flow. this is the thing that i think has people believing the stock can go higher. the size of the projects are bigger. 35, 36 looks like a breakout. if you're long in the stock, you stay there. it's a company that's building a very good base. >> coming up next, trouble on the west coast. ports are in a shutdown mode. it could make companies looking to the airways. later, ropes, chains, trading. i got your attention there. move over christian grey. our traders right here on this desk tonight are laying out their 50 trades. back in two.
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a corporate breakup kicking off trades. costco will stop accepting american express cards next year. they're hitting a four month low after noting about the loss of its exclusivity deal with costco would hurt profits and sales this year and in 2015. karen. >> the stock was down 5 1/2 bucks and i think that might be an underreaction. >> really. >> i love american express. when you have a big chunk of business news like that that gets lost, you have to -- you have overhead, you have absorption, have you issues like that. they talked about spending that they're going to be doing. i don't see them getting back to the growth that they hoped for.
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i think they said 12 to 15% until the medium term. i don't know what that means exactly. and interestingly, the market cap loss in loss happened and we don't know who's going to get the deal. their big chunk of loans that they can either sell, but those are profitable loans. it's hard to build a book of loans like that. this is a big deal. it's a company i like. it should have been down this much. >> master card, visa wins this. they continue to -- the stocks continue to perform. i think they continue to win going forward. >> both of their charts look good going into this. >> roller coaster ride. the stock hitting its highest level since october 2012 before sliding nearly 5%. the air freight company delivered earnings missing on revenues. one analyst believes they wanted
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more meat. joining us for cnb exclusive atlas air worldwide. >> you had a strange move in today's session. >> you pointed out we were up 60% since october. trading volume was four times typical. i think some investors were taking profit. we pointed to growth in 2015. so i think it's perhaps more a group of investors taking profit than anything zwlels could there be growth in gaining business because of this west coast shutdown? it happens at an interesting time because it's not a seasonally strong time for retailers. they don't need to get goods to the stores for the holidays. at the same time if this is prolonged could you see an yup tick in which is? >> i think it will help air freight overall not just in the short term but in the long term. the issues have been under discussion since july of last year. we really didn't see any work
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interruptions or work slowdowns until november but that's taken on, you know, in earnest since the beginning of the year and now the ports are closed today by management for vessel operations and then going to be closed saturday/sunday, sunday/msunday sunday/monday. our company alone, we've been running quite a few charters for japanese auto manufacturers to populate inventory material into their supply chain for the u.s. assembly operations and out of korea as well. the retail, while it's not a big retail season, from a supply chain of view it is. we're coming into spring sales and up into mother's day, those are big selling periods and so the retailers have to be thinking about how are they going to populate the supply chain now for the sales that they're anticipating later in the year. when you combine that with lower fuel prices, you were talking about fuel earlier on the show. where that settles, we're not -- we don't know.
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but lower fuel prices overall i think will bring more traffic back to international air freight because it reduces the cost. fuel being a very significant component. so i think a number of companies must be re-evaluating or will re-evaluate the mix of their global supply chain between sea and air as a result of this and lower fuel. i think it's all a catalyst. >> what is the sensitivity? because a lot of analysts pointed to the decline in oil prices, the decline in jet fuel prices down 30% in the fourth quarter. what is that sort of magic number at which somebody will say, you know what, it is worth it to charter that commercial plane to get my goods here? >> if we fell somewhere approximating $80 coming down from where we were. if we're somewhere between 60 and 80, i think that's going to power more air freight growth than secular growth would. i think that's a good number. >> bill, we're going to leave it there. thank you so much for coming by. >> thank you for having me.
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>> atlas air worldwide. >> what concerns me is the lack of revenue growth. the quarter was great. revenue was there. make a billion eight this year, about a billion eight next year in revenues. i'm looking for revenue growth. the stock is extraordinarily volatile. the last time we loved the story. the way it traded, four times normal volume. that concerns me. i think you get a chance to buy the stock cheaper. coming up next, one new segment called stock therapy. we'll lay out the biotherapist companies. later tomorrow, "fifty shades of grey" comes alive in movie theaters. everywhere. tonight our buyers lay out fifty shades that may give christian grey and his crew serious run for their money. stay tuned.
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apple stocks. we've got the details. "fifty shades of grey" mania grips the nation. we're doing our own notion, fifty trades that pay. guess which trader's the intimidating one. let's start off here with groupon earnings after the bell. julia has the latest. >> groupon is filing a shelf registration for a future mna. groupon shares moving lower after hours on some disappointing q1 outlook. its guidance was lower than expected despite the fact that the results earnings were better than expected. on earnings ceo eric lescoscy explained increased investments is creating a ticket monster which it says has been forced to sell all or part of. they're, working to add more inventory and give merchants as well as customers better, more targeted tools. on the phone with me earlier he
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told me he sees growing demand in direct search, growing 20% of sales up 19% from a year ago. he told me that is a very good sign. melissa. >> julia? >> tim? >> that's a company that's starting to find its way. first of all, look at the stock on the charts. it's ranging from 650 to 750. the guidance is something people are watching earnestly. you're starting to see the growth in the segment. the mon know tieization is there. >> wwe up 7%. >> talked about it a couple of weeks ago. pulled back but another move today. i still think this is the stock with the short issues it has a huge stand back in the day. >> i thought you are. >> still. >> still am. when she used to come on the show. >> big stock for cisco up 9%. grasso. >> over ten years, if you look at the stock, everyone is worried about margins going forward with their new product. the marge beginnings are actually expanding there.
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it's kind of hard not to buy it going forward but i can't buy it straight up like this. give it three days. >> a drop in baidu. >> disappointing numbers for these guys. i think it's an opportunity to buy. my firm is long the stock. if you look at the growth, you're getting 45, 46% growth. you're getting selling out marge beginnings. you have the china discounts factor which is hurting these guys. >> drop for kol log down 5% karen. >> yeah. as it turns out special k not so special anymore unfortunately for them. they revised their growth forecast down 1 to 3% from 2 to 4. that's actually a big move. i wouldn't buy it right here. >> all right. next up, tonight is the first night of a new segment. we're calling stock therapy. two stocks you should keep your eye on. this week it's hedge funds courting acorda therapeutics. meg has the story.
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>> we thought earlier this week it took a hit on acorda shares. this is part of a strategy that's outlined as being broader than one company. he might target 15 drug companies looking explicitly at their patents. this is the life blood of these companies. it really affects their share price if people think that they're under attack. so what he's using is a relatively new system known as interpartus review. it came about in 2012. it's an expedited way to attack the patents underneath these drugs. what he's targeting with acorda's drug is mpira. it's for walking. it makes up 90% of the company's revenue. are they going to be successful at acorda. the company says they have four other patents. they have to invalidate all of them in order to bring generic drugs to the market.
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they have already filed against the patents. when you look at the companies, they can be vulnerable. if he's shorting stocks, he's already made money on acorda. you want to look at companies that are dependent on one drug. the two names are biogen and selgene. bioden for one of its drugs. it accounts for 30% of their revenue. now for celgene, we're talking about revlimid. that's 38% of its revenues. the profile of these companies and these drugs potentially makes them vulnerable. >> i wonder why he would go after such a large company that could potentially fight off a patent charge really well unless he's going to be in short and get out as soon as the stock falls. >> i think it's an optical. you can't just prey on little guys that you can push around. i think you have to have some of the bigger guys out there to
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sort of protect yourself from people saying he's just taking shots against companies whose stocks he can miss. that would be my take on the whole thing. >> with this model though he's actually looking to be aggressive and actually make something happen in terms of the patent being invalidated. >> what he's doing -- >> that's not just hoping the stock trades down. that's trying to hurt the company. >> when they originally talked about this according to reports we found in the financial times and reuters, he said they're not going to settle. they're going through the patent office and trying to invalidate the patents. unlike a generic drug company, they're obviously not trying to introduce their own generic version of this drug. they're trying to attack the whole underlying revenue base. presumably they would take advantage of that. >> what stock should we be watching next week? >> this is an interesting one. this is another case of the hedge fund in biotech. we're looking at ariad pharmaceuticals. there is an activist on the board. they're the largest holder of the stock. run by two former carl ican
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guys. bioagain, they made a lot of money for icahn. they got on the board with one seat. i've learned that they could potentially be pursuing a proxy 2350i9. we could see something over the next few weeks. a person familiar with the hedge fund has told me that they're looking to potentially replace the ceo. now we know that there's a record date. they have to notify the company by february 25th if they want to nominate new directors to the board and the ceo, harvey burger is one of three directors up for re-election. we could see over the next three weeks some major activity. they've been pretty kwie zblet meg, thank you for coming by. meg tirell, our biotech reporter. >> if you look at ibb, grossly outperformed the s&p last year. if you look at the top two holdings, you have biogen and
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celgene. be careful. past performances is not indicative of future performance. >> as all of america anxiously awaits the debut of "fifty shades of grey" on the big screen, we decided to put the traders to the test. they give us their 50 trades that pay right after this break. . tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. holdings, you have biogen and they give us their 50 trades tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in tdd# 1-800-345-2550 or scale out you can make your move, tdd# 1-800-345-2550 wherever you are. tdd# 1-800-345-2550 and start working on your next big idea. 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 tdd# 1-800-345-2550 call 1-877-729-2379.
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excited about the release of fif"fifty shades of grey." in honor of the release the traders have to come up with their own fifty trades that pay. log on for a full list of the fifty trades. for now we'll give you a little taste of them. go around the horn. tim. >> my first is intel. this is a stock that you're selling somewhere around $40 which is in the top of the range. you're buying it at 34, 32. this is a stock that gives you 3% dividend yield. they continue to show that they're outpacing in pc. eem saw emerging markets, getting scared. i'm waiving something. >> oh, hello. >> that's not going to pay. >> eem, emerging markets have struggled. until the dollar shows it's giving up ground they're going to trade in the 39 to 41 range. this is a place where i'm buying at 39. need a very, very good recent support. i think the currencies have taken pain. i'm selling around 41, 41.5. >> grasso.
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>> whoa. no, i'm just -- t-mobile. there was a spectrum auction in the last couple of days, weeks let's call it that got the whole space going. i would wait. the stock has moved up over 30% all the way for a pull back to the $30 level. the other one is charles schwab. this is a rate rising play. this one stands to make a lot of money once we see rates rise. you play it. this one's up big, too. wait until it settles in. >> karen, i have a couple. >> intimidating. >> intimidating. that just cracks me up. should we be mortified of that clip or amused? >> i don't know, hybrid. >> steve spacey. >> amused. >> not the kind with the c, the s kind. if you want to have a little dip your toe into the energy space, here's one that has been absolutely annihilated. i think you can buy it right here. we have some common, some call. so you know exactly what your down side is. and we see oil flatten out or go
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up, i think you're going to make decent money here. the other one is sort of a roundabout way of playing. it's oak tree capital. they are masters of distress debt and we are seeing a massive amount of distress debt in the energy space. they are so good at capitalizing on situations just like this and it's sort of an easier way to play it if you can't do it yourself. they'll have great returns in an environment like this. oak is the ticker. >> guys. >> what do you have in your hand? >> a horse riding thing. >> what do you do with that when you're not -- >> a crop. >> a crop. >> did you bring that from home or is it a plop? -- prop. >> a prop. >> it's not mine for the record. >> we have a thing about the airlines. if you look at the derivatives in the airline, they've been on fire, rockwell and collins. $105 price target. a lot of people don't talk about the name. i think collins gets you done.
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medical records. big pe. >> digitize. >> what did i say? >> collins and cerner go higher. both of them go higher. >> it's scary, that thing. for a complete list of 50 trades of pay log on right now. >> or else. >> or else. >> meantime, earnings alert on cbs. let's get back to dom chu. >> dominant or submissive, i guess we know the dominant thing is going on. somebody in a dominant position, guys, cbs corp shares are higher in the after hours. they beat wall street estimates on earnings. better than expected. 3% gain in q4 sales. got a boost from thursday night football. the network won the rights to air eight regular network games on thursday night. i will say this on the conference call speaking of that
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dominant theme we were talking about, they were asked whether they want to merge or consolidate. les moon said we feel good about ourselves. the stock price will go up considerably over the next few years and the next few months. we don't need any partners. there it is. les moon saying they don't need to consolidate with anybody to do well in this business, melissa. >> dom chu. >> i think the stock is interesting. the revenue growth is good. there's a lot of guys that think the value of the long-time franchise shows are getting long and stale. if you look at content, they have a lot to offer. the valuation is very k450e7. >> coming up. how high will apple go. carl icahn thinks it will be $200 a share. we break down that trade next. ? ? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason.
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we saw 1 1/2 times the average daily call volume. four of the five most active options were all calls. what i think is interesting is we get some sense of what the pay of the increase in apple share might be. i think one of the trades we can look at was actually a sale of the may 135 calls. they got about 3 1/2 bucks for those. i think they did this against long stocks. what they're saying is that they believe the stock could get to 1.35 or thereabouts by may. and you'll notice that's pretty consistent with the longer turn trend. one other point, if you do this trade, your profit zones will basically be between down 3% and up 10%. so i think that's pretty much the pace of the increase that we're looking at over the course of the next 90 days. >> karen, how do you feel about apple hitting record after record? >> well, i feel a little badly because i sort of thought it was in no man's land and haven't added. i don't know, you've got icahn doing his best to move them along in their cash reallocation
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process. i'm hanging onto it here. if it goes higher. i'll sell. carl's against. >> everybody in the pool. it's an apple world. no, i mean, it wants to go higher. it's clear that there's a whole new round of people buying this stock. the performance over the last couple of weeks, i thought it was going to pull back. it has not. still have the upgrade cycle on the 6 and the iphone 6. if you get the watch and it gets any traction whatsoever, you can look at that $200 number that carl icahn is talking about. >> apple, i think, as a stock has an opportunity to run until you get into the fiscal third quarter numbers. i think we have a place where seasonally you'll start to see it tail off. it will be tough to do. i've been long in the stock for a long time. i might be more -- >> or you can switch to tesla and ride that up. >> cue the apple valuation. >> more "options action." check out the live show tomorrow 5:30 p.m. eastern time. let's get to a tweet. we love getting tweets from you
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guys. we read them all. here's the first one for guy. what do you think of facebook's poor price action? >> it's been terrible. all the metrics work maybe except valuation. that's the only thing i can think of because every time this stock wants to go north of 80 it fails. a lot of analysts have price points 58 to 95. i think it's going there. the price action is nothing great. >> coming up on "mad money", cramer has three hot exclusives in interviews with the ceo and c of sketchers. jim is talking to the ceos of dominion resources and martin marietta. all of that top of the hour on mad. we're coming right back. [ male announcer ] at northrop grumman,
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final trade, sam. >> adam small took a position on weakness. >> grasso. >> up 31% in a matter of 2 months or so. i still have a hard time figuring out why to sell it. >> karen. >> performance sports group. we had the ceo on last week. i like the growth story. >> guy. >> i played the role of the secretary in that little
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vignette. >> killed it. >> she was in that thing, too. >> her role. >> take home an emmy. >> her role in the series. >> honeywell best industrial play. i think it's one of the fifty trades of pay. >> i'm melissa lee. thankshey! >> the only time you're watching. see you tomorrow. "mad money" starts now. >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always work somewhere. i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to mad money. a lot of people make funds, i'm just trying to save you money. my job is to not only entertain but teach. some days just smack you right in the face and say look at me! this is what is working, chief! by the best
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