aren't necessarily indicative of what sales. you have to be careful about measuring snark versus predicting sales. >> they have to put their money where their snark is. >> yes. >> good to see you. we'll see you tomorrow. >> a good duo for such a big apple day, don't you think? >> yeah. >> jon is the true expert there. we've got "fast money" coming up in ah foo seconds here. melissa lee, what's on tap? >> hi, guys. i'll take it away. live from the nasdaq market site in new york city's times square, this is "fast money." i'm melissa lee. pete najarian, karen finerman and guy adami. the time for the apple watch is here. tim cook unveiling the details just a few hours ago. we'll take you live to the event and debate whether you should buy the stock before the watch is released. and breaking news after the closing bell. qualcomm announcing a $15 billion share buyback. we have the details and the trade. and another hit for tesla today. job cuts in china sending shares lower. the stock is now down 12% over the last month. we have someone who says this

sell-off is a buying opportunity. but let's start off with the apple event today. apple stock popping after it announced a new macbook. josh lipton was at the event in san francisco. he joins us with the details. josh? >> well, melissa, apple making a lot of news in a very short period of time here. watch, macbooks. let's take a look at the headlines. >> can you even see it? i can't even feel it. there it goes. now i'd like to turn to the newest addition to the apple family. and of course i'm talking about the apple watch. the apple watch is the most advanced time piece ever created. right from your wrist, you can receive messages with the built-in speaker and microphone, you can receive calls on your watch. i have been wanting to do this

since i was 5 years old. the day is finally here. >> now apple watch is also a comprehensive health and fitness companion. it's like having a coach on your wrist. now, the apple watch sport starts at only $349. we're taking preorders beginning on april 10th. >> so apple giving a lot more details about the pricing, the features, the battery life of the watch. of course, apple is also entering a competitive space here. you've got to go against rivals like motorola and lg there hasn't been that much excitement, melissa, about this product category. only about 720,000 android wear devices shipped in 2014, for example. but apple obviously confident it can compete and win in this space. i should also mention i just had a chance to sit down and speak with apple's eddie cue.

of course, more news today. apple tv getting cut down to $69. and the new partnership, hbo streaming now coming exclusively to apple devices that means you can watch "game of thrones" if you want on apple tv, iphone, and ipads. melissa, back to you. >> all right, thank you very much, josh lipton, outside of the apple event. pete najarian, was today the day to sell the stock? >> no, i don't believe so. i do agree with gene munster who you had on power lunch when he was talking about some of his information. i'm not saying either of us are right. i'm hoping we're wrong. i've been long this stock what seems forever. i'm hoping for this. he talked about 8 million in terms of the iwatch. that's somewhere closer to where i would be right now. anything above that i think would be fantastic. but i think what was most exciting today actually is macbook air they introduced, the ultra thin and all the different capabilities, the new processor. that was the exciting thing. that's when the stock popped. but the watch unfortunately, you could see it in the stock today. as they talked more and more there was less and less. >> it's loo a lot like having a

coach on your wrist. >> you can get phone calls on your wrist too. >> i've always wanted that. >> we're having four financial coaches on your tv set. how with that? nice segue. here is what i'll say about the watch. until someone comes into the play -- >> and coming from a man who sold apple on friday. >> right. i sold apple shares on friday. say what you want, they're again defining another product category, except for the fact that the watch isn't going to move it. the iphone is still 72% of net profit. fiscal quarter is going to be another very good number for the iphone. i think that's going to be a driver. i think you also have other drivers. it's the capital allocation programs. it's the dow jones. it's a lot of different things. but i sold the stock on friday, i reiterate because i think the valuation and the momentum are two different places. i think it's a very fine valuation. i think it's a phenomenal company. it is an investment, not a trade. but it got to a place where momentum was very, very profity and marketious have to be careful here. that's the call. >> if you are going to be an investor in am as opposed to a

trader in apple, i think you hang on to it. i don't think that the story to own apple is for the watch. i don't think expectations are that high. if anything, i think today they were maybe tampered down a little bit. the mac, however, which is a very profitable product, that looked outstanding, i thought. so that would be nice. i don't think there was a lot of expectations of a macbeat. but that would be good. who knows. you had so much excitement around this, so much -- so many bulls, so many bears, yet the stock was almost unchanged on the whole thing. i don't think people know what to make of it. but i don't think you need to feel that there is only the watch. if the watch doesn't work out, it's going to go down a lot. i don't think it's true. >> the medical aspect of the watch i think gives it upside. a lot of companies have tried varying degrees of success to get into similar. apple is typically the one that winds up doing it correctly. if i look at it, i think there is only upside for the watch. if the watch completely fails, they're not going to take the stock out to the woodshed. and if they do, it's probably another opportunity to buy it.

and if they do hit on the watch, it's going to give them the next leg higher. i've been in the wrong camp. but the right camp has been don't trade it, own it. pete's been in that, tim, karen, jim cramer. i think that's probably the right way to play it right here. >> let's bring in an analyst who was at the event, brian blair. great to see you. >> thank you. >> is it a case where this is no harm, no foul for an to believe watch, and there is really only upside because expectations are sort of low or they're not baked into financial models at this point? >> i'm not so sure. i've seen a lot of estimates that suggest an kohl sell 20 to 30 million watches this year. and i think that those are too high. so i think you actually have some analysts you mentioned earlier, there are some who think they could do less than 10, which i think is more reasonable. at rosenblatt, we think they're going to make 13 to 15 million units this calendar year. and that number could go up or down based on consumer demand there is a big variable here, though, on consumer demand. we don't really know what the killer application is that is

going to make people buy this. apple doesn't know. and we really didn't get a lot of color on that today. i think apple has a sense they can sell globally, but we really don't know what the consumer is going to do yet. >> in terms of the killer app that would be on that watch, brian, than an app that is not currently developed that will come in the next year or so or however long it takes for the app communities to sort of catch up with the uptake of the watch? >> i think that that is really -- i think we have yet to see what is going to really make people buy this. we're seeing fitness there are some messaging. using it as a -- to make phone calls on it is certainly nice. but i think much like we saw with the original iphone, the applications that made it sell hundreds of millions of units are not what we saw out of the gate. there were a lot of these applications that came after the fact. we didn't really get much of a glimpse into that today. so i think out of the gate, there is enough to sell ten plus million units. but whether there is a long tail after that is going to be based on what i think third parties do with it. >> so let's say your estimate is correct, 13 to 14 million units in the first year.

walk us through the impact in terms of the balance sheet and gross margins in particular. >> sure, sure. >> if it is that number. >> based on the pricing today, i think 70s% of this is going to be the aluminum version, which is 350, $400. if you multiply that by about 15 million units, you get to about $9 billion for the calendar year. in terms of gross margins, because that number is relatively small, it doesn't add a lot to margins. but what is critical is that the accessories for this will be much higher than the apple average for sure. apple's average gross margins have been 39-ish percent give or take for the last several years. the margins for the accessories could be 50, 60% or even 70% for some of the accessories. we don't know yet what the pricing is like for the bands. but if you look at what apple currently charges for their accessories, you see a much higher 50, 60% margin. if volume does grow it will be nicely additive over time.

>> it's karen. if volumes grow we will see more absorption of the overhead that you don't get in the first 9 million that maybe you get in the the second 9 million. >> sure. >> you're nor bearish than you think some of the street is, what is your expectation for stock here? >> so i still have $130 price target on the stock, and i have a buy. but i do think that what i have to pay attention to right now, and it was mentioned in the earlier comments is the idea of things of expectations being a little frothy. so what i'm watching very closely right now is where expectations are for march iphone units. that's the next bellwether of the stock. it's nothing that we saw today. right now the street has been coming up. it seems like estimates are around the mid 50 million units for march. i currently think they can do something with the 6 handle, more like 60, 61 million units. that's going to be next benchmark. after that it's what do we see in you know. those are the next two things that determine where apple stock goes. for right now i still think there is an opportunity for apple to be a bit higher for march. i'm still on the bullish side. it's going to be really

important to pay attention to where the street goes not just for watch, but for iphone for the next two quarters. >> brian, great to have you with us, thank you. >> thank you. >> brian blair. rosenblatt. news alert here. cnbc's david faber back at headquarters with the details. david? >> thanks, melissa. very large return of capital announced by qualcomm inquire to the beginning of its annual meeting which now has gotten under way in california. the company is saying it has authorized the repurchase of $15 billion worth of its stock and in fact expects to complete $10 billion worth of purchases by the end of this year, some of which will be repurchased in an accelerate fashion, meaning they may buy some percentage of that $10 billion very near term that you can see is contributing to a nice move up in qualcomm shares after a pretty good trading day overall. qualcomm for its part has been under pressure from some shareholders to return capital, and there had been an expectation that it would authorize a very fairly large

buyback. but this does seem to exceed at least for the most part many expectations that were out there in terms of its size. the company also increasing its dividend by 14%. meeting the targets of returning at least 75% of cash flow to its shareholders in the form of dividend or repurchases. qualcomm does have $31.6 billion in cash on hand, although most of that is overseas, and the company does say that it actually plans to finance the capital return program primarily by accessing the public debt markets in 2015. that is something we've seen a great deal of. one would expect that qualcomm will have great success in getting a very cheap cost of capital to help fund this very large buyback. as for the overall company, it's looking at what was a weak year in terms of revenue. under its new ceo steve mullencoff, we'll see what the next year holds. it recently did settle with the antitrust regulators in china over some patent problems that it was dealing with, about a

$975 million settlement, if you will, or fine that qualcomm agreed to pay. and of course, as you guys well know, the loss of the samsung business has also hurt that company. but today at least shareholders happy it would seem in the early going with that very significant return of capital by the company. melissa, back to you. >> all right, thank you very much, david faber for that story. i mean, qualcomm in the past month has had a stellar month, primarily because it did settle some of the china concerns, paying the almost billion fine helped it go up almost 8% in the past month. >> although there are some levels on the stock that we talked about technically that didn't hold we thought 70, 71 was going to hold, it traded below that. you might have gotten a glimpse on this. they announced a credit facility there are different ways these guys can basically swap offshore assets for onshore borrowing. and that's very good news for a stock that i think there is incredible bad news priced into. i would own it at these levels.

>> $2.5 billion per quarter. they can redistribute it out. $10 billion in the year, 15 billion over the next year itself. and the dividends, when you look at the financials of this company, you wonder, and you look at revenue growth, earnings growth, all of that, you wonder why it's trading here. it's just been a massive underperformer. i think at these levels, i'm with you, tim. this is a buy. >> this is actually a very big capital allocation back to shareholders. half of their $31 billion -- it would be almost 13% of their float. that is a lot. aggressive. >> significant impact. tesla's china trouble. job cuts overseas causing concern for some tesla investors. we have someone who says the dip is a big buying opportunity. that's next. and a big win for hedge funds as general motors announced a $5 billion buyback today. is it too late to get in on this automaker? that's coming up on "fast."

♪ ♪ slow ride tesla shares falling today after announcing plans to scale back its workforce in china amid slowing sales. one analyst thinks the sell-off is actually a buying opportunity. let's bring in robert w. baird senior research analyst ben callow who joins us on the fast line. thanks for being was.

>> thanks for having me. >> this is the latest speed bump in china. who executives left over the past year. a low revamp of the network and tesla didn't seem to be communicating properly how to charge electric vehicles in china. shouldn't we be concern since this is part of the tesla growth story? >> to clear it up, this is all part of the restructuring that elon talked about earlier in the year at the detroit auto show. so this is just a news headline that is a continuation of that. tesla has actually changed operations in china. they're actually having tesla employees go out to customer homes and help them install charging stations to actually make the whole process easier. so it's probably one of the easiest places to buy a tesla and have it charged. we have seen sales pick up slightly there. there is still work to do. but things are getting better. >> what kind of pickup are you talk somebody because elon musk, i mean, in the past, and granted this is in the past, he has talked about china as possibly

rivalling the u.s. in terms of auto sales. this is a guy who really set the bar high in china a long time ago, and now has to dial back a lot. >> yeah, i would point to other markets where he did the same thing. in germany, for example, he went into germany and said he is going to take on bmw, audi and mercedes head-on. and we saw the first couple of quarters very flat there. so he made a big splash, and then they're going have to catch up to that. this is supposed to be a market that is the same size as the u.s. some time this year. i think it's going to be push that out to 2016. one thing that is important to note, though, they can hit their guidance they've talked about without sales to china. so that's going to be gravy on top if they can get this working. >> this is not a stock, though, ben, that is priced for heating numbers. this quarter or next quarter or year end. this is a stock that is priced for massive growth in the future. >> yeah. one of the things, the reasons we like to set up here is because it's become very bearish. we had news reports out on

friday that the giga factory was delayed. a lot of erroneous reports like that out there. there is no delay in the giga factory. everyone is looking for a reason to sell the stock. we take a reason to buy it here ahead of the x and q1 which we think will be good numbers. >> you say sentiment is very bearish, and that that is true. the last time you were on the stock was trading poorly after hours. you said in the next session the stock would trade higher. since then the stock is actually down 12%. do you feel perhaps you're giving tesla too many free pass at this point? >> yeah, i think when they got two free passes there, and you're correct, it's down from there. one important thing to note, though, numbers have come down from that call 236 was consensus at this time. we're under a buck now. so the stock has hung in there despite all that bad news and eps revisions. and now i think tesla has numbers under better control and they're in the position to be going forward. >> all right, ben, great to have

you with us. >> thank you so much. >> ben kallo of baird. how do you trade tesla? >> has it hung in there since the fall? here is a stock that was 280 and now 190. it hasn't hung in there, number one. i thought it's sort of in the 180 to 225 camp. i also thought we gore to break out earlier this year where it had a couple of nice days in the row. it looked like it finally wanted to push through. it has disappointed again. 177 was the low back in may of 2014. effectively 180 is the line in the sand. it feels as if it wants to print that one more time. >> to take the other side of it, though, it was good point ben made about sentiment sort of coming down a little bit, at least on the street on the estimate side. the estimates have in fact come down. >> had to. >> we had an analyst -- they had to. they had to because the stock came down. maybe that helps the situation in terms of finding some stability in the stock. >> i don't know. i still think that the expectations are very high. i think the company has definitely going frn missing on short-term targets to moving

much longer term ones that seem almost absurd. bank of america's has done a great job with. this he has been one of the more bearish guys out there. i think the stock is going to break 180. if we're in an environment where i think we may be with volatility around the fed in the next six to eight weeks, this is not a stock you want to own where they're are not making their numbers there is huge multiple. >> and oil. oil. >> should or shouldn't, that has been one of the major issues. and when you look at this company, i mean ben, it's impressive that he is willing to give them so many passes that as you asked. i thought that was a great question. there seems to be bad news after bad news and oh, suddenly it doesn't matter about china. it does matter. they change their direction on you. >> the news hasn't been good. >> right. coming up next, one firm upgrading several home builders today, saying the texas oil risk to those names overstated. and later, will the apple watch take off as a fashion accessory? plus, what does that $10,000

version really look like? we have the details ahead. want more "fast money"? now you can catch full episodes any time. >> anywhere on your mobile device. any time. >> and i do mean everywhere. >> just go to cnbc.com/livetv to watch "fast money" on your smartphone, your tablet, or your laptop. watch live or get up to speed with the latest full episodes, all with one simple click. with market advice this good, you can't afford toe miss a single trade. get your ticket to "fast money" -- >> everywhere! >> at cnbc.com/live of tv.

welcome back to "fast money." i'm courtney reagan. a quick change to alert you about for the s&p 500, which will come after the close of trade on wednesday, march 11th. skywork solutions will be replacing pet smart. pet smart is set to go private on or around that date. skyworks solutions is a semiconductor stock. >> absolutely different from pets. or anything to do with pets. but these chip names. it shows you some of the strength. when you look at this name and how it's performed, this is another one of the little tentacles that goes out there

for apple. look at cirrus logic. skyworks is another one of the name. when you look at some that feed into the system right now, this is a beneficiary of that. levee this name. big day for gm. the automaker announced a $5 billion buyback, this a part of settlement with investor harry wilson who had promised to wang a proxy fight. he will withdraw his nomination and drop his proposal for a $8 billion repurchase. tim, what do you say? >> thing is a great day for the company and for investors. if you look at it from both sides, the company has more carefully articulated what their capital allocation strategy is going to be. if from cash positions, around $20 billion. as long as they're holding 20 billion, ept in the next couple of quarters, a lot of people think the profitability and the comps are going to get better. $5 billion and they raise the divs. i'm long. i think you stay it. 38 is a big level for the stock. >> karen? >> i agree with tim.

it was sort of a win-win. they're actually more successful than i thought they were going to be. i thought -- >> you think they would force this? >> yes. >> absolutely. >> i do. >> but to the extent that the company had a lot of things that they had to communicate and i think was already out there in a prove me situation. i sense that this would have happened in some way or another. >> but probably accelerated. and the fact that they have made themselves morse transparent i think is huge to the public as well. >> guy? >> 2014 a year for the stock. it's getting its mojo back. the only difference from tim, 41ish, the level we tapped out is a critical level. i think the stock is going to print very soon. harry wilson will be on "squawk box" tomorrow at 8:00 a.m. eastern time. so that should be an interesting interview. next up, an upgrade in the home builder space. jmp is upgrading dr horton, ryland and kb home. jmp saying the texas risk is

overstated in these names and lower oil will be offset by employment growth and low rates. pete? >> and accelerating households there is a lot of different things. they also talked about valuations when they looked at a loft these names, and rates lower for longer. even if we get this rate hike, whether it's june or september, when is the next rate hike and how fast is that going to accelerate? when you look at the names, toll brothers is a great example. they crushed on the earnings. they crushed on the revenues. their projections going forward, their guidelines were strong. but it was for almost every one of the dealers. right now it seems that the momentum is pushing and he is jumping on board for a little more to the upside. >> i didn't realize that horton, that 17% of the business, ryland 25% of its business. i didn't realize the leverage to the texas area. >> you know what? i don't think the worst is over necessarily. >> right. >> it takes some time to see the effects of that i like the idea of the home builder play in that chart that steve showed last week about the formation is really interesting. but if you could diversify away from texas, i'd do that. >> guy? >> i think the way to play it

still is downstream with home depot and lowe's. pete mentions lowes all the time. but home depot has basically done everything right. through frank blake, new ceo, it doesn't matter. the stock son cruise control and i think it goes higher from here. all right. next up, just when you thought the shaking mall is dead, there comes a shake-up in the space. simon property group launching a hostile bid to combine two of the largest mall owners in the u.s. a 5% premium to the closing price on friday. but much bigger premium to win it initially. >> this has sort of been creaturing as they first took a stake and it wasn't surprising that ultimately this happened. it's interesting, though. this is a rare collection of properties. these are a malls. you don't get to buy this thing very often. to mae maine what is interesting, we talked a lot about the demise of malls and how online retailing is really going change that and yet these a malls in terms of valuation and cash flow not just sentiment, have been able to

really -- i mean, they're reaching all-time highs. >> does that mean -- the crappy malls? >> the crappy malls do worse. the crappier you are, the worse that you do. >> rather go online than go to a crappy mall. >> you get to the tipping point in a crappy mall where another store closes and nobody comes and other stores close. >> if you look at simon too, the move in this stock from 205 down to 180 which is a very key level has been almost like that. i think people have questioned whether some of these moves are really in the price or not. i don't know. >> i think rates, rates spiked the whole anything sold off. not surprisingly. still ahead, the semiconductor index gaining 80% since 2014. but our own it's boss, in one chip stock that could be on the verge of even bigger breakout. the name when we come back. and later, why dennis gartman says europe is a better bet than the u.s. back in two. of active management.believe inr

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♪ still ahead on "fast money," live from the nasdaq market site in times square.

>> apple releasing new details about the watch today. the most expensive model will cost $10,000. but will anyone buy it? we're bringing in the fashion experts. i'm not talking about guy adami. and why dennis gartman says europe has a bond problem that could be great news for european stocks. he'll explain. and a major bet in biotech. one trader making a bullish move in celgene. we'll break down that trade. let's start off with the apple watch. we know it will be able to do everything from receiving calls to tracking your heart rate. but will people actually want to wear on their wrist? let's bring in "vanity fair".com's news editor and senior fashion editor jennifer chan who joins us from l.a. guys, great to have you both with us. jennifer, i'll start off with you. as a woman, i think this thing looks giant. i don't know if i would want to strap this on my wrist. >> well, i think the apple watch is going to be the must-have accessory of the year there is completely different ways to customize it t watch suited for you. we have two different face there

is 38 millimeters or 42 millimeters. smaller or bigger. smaller obviously caters to the women audience, as well as 16 different strange, wait a minute, hold on, jennifer. would you buy it is what i'm getting at? >> yes! >> you're a woman. you want to put that thing on your wrist? it's giant. it's huge. >> it's going to be the accessory of the year. i definitely will buy it. and i think the question is who isn't going to buy this watch. >> i think many millions of americans are not going to buy. what do you make of this watch? >> i think it's -- i think a lot of people are going to buy it. but i'm just wondering, if there is three different price tears. it goes all the way up to 17,000. people spend that much money on watches at the luxury market. but the question is whether they want to give that money to apple. so i think that we'll see a lot of sort of demand for the lower end. and then they just have to sell a few of the high-end to sort of halo that price in for the demand. >> do you think it's a good strategy? apple has this big spread in vogue, and it's really going after the fashion crowd. that the right way to go? >> right.

i think the question is when you have something that is a fashion item and you're going to spend $17,000 on it, you want to be able to wear it season after season, year after year. but we replace our phones so quickly, this is a piece of technology. so the question will be whether it has that sort of obsolescence we see in the phone market, or whether it's something you can have like a nice bag or a nice pair of heels that will keep forever. >> jennifer, when i was talking to a retail analyst earlier today, she made the point that it's not just a watch for a watch. if you're spending on watches, you might not be spending on that extra purse or that extra belt. and it's really going to come out of your sort of fashion accessory budget overall. >> i agree with that. but there is, you know, it's a status symbol. it's just like when you buy a rolex or a breitling watch. it's a conversation starter at a party. apple has announced it's going to be selling at self ridges in the uk, max field's in los angeles there is going to be a lot of different people wearing wearing technology in an

entirely different way. so it's going to be the thing to buy this year. i really stand by that. >> karen, let me ask you. it doesn't have the enduring multigenerational quality. what do you do if you spend the highest end amount is, $10,000, two years later it feels like, you know, yesterday's watch? >> jennifer? >> do you think that should be a concern for them? >> well, no. if you are in that -- they've marketed to it mid market to a high market. so if you want to spend a little less you go to the watch sport. you want higher end, you go for the watch edition. but it's going to be snag is talked about. and if you have that accessory on your wrist everyone is going to know what you paid for it and the features that come with it. >> kia, the last question to you. do you think fashion editors will be putting this watch in spreads without apple paying for it? >> i think so. i mean, i think at least in the near future it's going to be sort of a conversation starter, like we said. it's going to be something that

you have to work into i think. you can't just slap it on someone's wrist at the end. but apple has a lot of good relationships. and they don't always have to end up paying people to sort of get their products in front. >> all right, guys, thank you. jennifer chan and kia maker. ici. this is ten pounds here. >> i will say this. the problem i have with the new apple watch is you got expense, but your expense is based upon something that is a depreciating asset just based on the technology, right? >> that was my concern. >> if you buy this watch or some other watch that you value as a piece of art. >> it will hold its value. >> as it should. >> that's why i'm concerned on these higher priced watches to be honest with you. >> i kind of agree with that but i'll say this about apple. it's an aspirational product. globally i think a lot of people grog want this. it is a status symbol. and it is a trade up. and that has value for at least a half a decade or so. so i think it's going to work

very well globally, less sure here. >> quick, guy. i know you're never going to buy one. not even use it. >> not even a shot. >> euro shy. >> but i'm not their target market, thankfully. it's completely lost on me. completely. there is nothing aspirational about it. >> guy still has a sundial in his backyard. [ laughter ] now to urban outfitters trading higher on earnings. courtney reagan has the details straight ahead. >> for what it's worth, i wouldn't buy one either, melissa. reporting 60 cents a share. they did beat the street by three scents. urban previousry reported their revenue at 0.10 billion. it's notable because it's the first billion sales quarter. quarterly comp sales improved by 6% in total led by an 18% increase at free people. but that is urban's smallest brand. what is likely encouraging investors here is the ceo suggestion that strong sales

have continued into the current quarter. melissa? >> thank you very much, courtney reagan. urban outfitters, it is up wildly since mid-january. it was up 18% prior to the after hours. >> i don't know what to make of it. it is a wild one for sure. i don't own a position in it. too hard. time for pops and drops. big movers of the day. netflix down 2%, guy. >> no real news. we've talked about it for a while. did it make a double top like it made a double bottom a couple of months ago. i think there is a chance that it does. through 440 which is really close. i think you have another potential 10% on the downside down to $400. >> drop for alcoa, down 5%. pete? >> that stock got smacked. it gets them more into aerospace. i like the acquisition. the stock swap. they bang the stock down over 5%. the stock was $17 just a month ago. here it is trading a much lower price. i actually like it down here. >> pop for twitter, up 2%, tim. >> a regular part of our would

you rather on the desk. i think you would rather over a facebook. jpmorgan would rather. they add it into the focus list 67 rate. >> michael kors down, 52-week low. >> they had a cave-in of the roof of the distribution center in ohio, which is causing delays for some of their online shoppers. i'm getting a little annoyed of having so many great opportunities to buy kors at ever more attractive prices, but i did buy some more today. >> all right. and a pop for the mr. fur face contest. >> huh? >> men in alaska grow and decorate their birds as part of a festival which raises money for local charities. customers compete in categories including wolf, red fox and polar bear every year. every year we talk about this. >> pete's, what would you? thinking it is. it doesn't go any crazier than

this. >> probably red fox right there. if i'm making a call, red fox right now. >> the goat. the goat? >> let's go with it. unusual activity. >> unusual activity. >> it's an amd. this chip space has been on fire as you mentioned earlier in the tease. and amd. down to the 32 level in january, got up over 330 as we got into february. here it's been hovering around $3 ever since. today they were buying the march 3 calls. only 8 cents. they're going out to next friday. any kind of a move to the upside, large buyers came, in 5500 early. more traded later on. but it gives you little example that people are looking for just a willie bit of a bang back up towards those highs. these options really could move fast. >> and you're in? >> i love this trade. coming up next on "fast," the european central bank kick off its new trillion easing program today. but dennis gartman thinks europe could be facing a major bond problem. we have the details next. plus, shares of biotech celgene up more than 50% in the past year.

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european central bank officially kicking off its massive easing program today. the next guest says there is a bond shortage in europe, and the ecb may have to look elsewhere

to complete its purchases. joining us is dennis gartman, the editor of the gartman letter. dennis, always good to see you. >> always good to be seen. >> we've heard about the scarcity issue, that there may not be enough sovereign bonds out there for the ecb. what do you think is next on their list in terms of assets to buy? because that in my mind would be the next leg of this trade for investors. >> mel, they will deny it all the way through, but i don't think they have any choice. there simply are not enough sovereign bonds for them to buy to accomplish the task that is ahead of them. and like the bank of japan, who denied it to begin with, but ended up having no choice, the bank of japan ended up buying corporate debt. the bank of japan ended up buying exchange traded funds. i think before this is done, the ecb, although they will deny it all the way along will end up doing exactly the same thing. i think this is enormously supportive of the equities market in europe. i think it is enormously depressive of the euro over time. i think you want to continuously be short of the euro, selling

the euro on any rallies that you get and buying european equities on any breaks that you get. i think that's the way you want to be for the next six months, eight months, 12 months for the next year or two, until this process through 2016 is finished. and even then, i don't think they'll be done. i think they'll end up doing more. >> hey, dennis, it's tim. i'm actually i don't think european equities. and i think the euro in the short-term has a pretty good base at 108 and 106. i don't think we're going see parity this year. but that's not my question. if you look at what you just talked about with rates, since the time they announced this quantitative easing program and everyone looked at the rate differentials on the ten-year between the u.s. and germany that. >> said this is a no-brainer trade. people are going to be buying u.s. relative value treasuries and they've widened out by 50 bips. it's been one of the great pain trades this year. why is that going to reverse? >> i think it's going to -- excuse me. i think it's going to continue to widen over time, timmy. i can imagine u.s. rates at the ten-year getting to 250 basis points u.s. rates over german rates over european rates.

i can't see that coming in at all. yes going to err upon the side of tighter monetary policies here. they have no choice but to err on the side of more expansive monetary policies going forward. can there be a time when u.s. rates narrow? of course there can. but if you take the time span over the course of the next year, will you see that on balance every month be wider than previous month? i think you shall. >> dennis, i'm curious your thoughts on what european pension funds do. there is a lot of money out there or institutions in general in europe that are look for places to go. do they keep their assets in european stocks or does that money come to the u.s. because it seems like that money has been coming to the u.s.? >> mel, it has been coming to the u.s. it's probably going to continue to come to the u.s. that's one of the reason why's the dollar has been so strong. and i disagree with timmy. i think we're going past parity before this over. i think if you're a pension fund in europe, if you're an endowment in europe, if you're a government in europe, you have certain mandates but to keep x

amount of your money in european securities. but at the margin, where price is always made, at the margin, i think money is going to continue to find its way here. which is why the reason for the dollar continuously getting stronger, and the reason why the euro continuously gets weaker. a at the margin, that's what is going to end up happening. it has to. >> dennis, great to have you. thank you. >> good to be had. >> dennis gartman of the gartman letter. he thinks it goes beyond parity before this is all over. >> things do overshoot. i think tim would say it's overshot already. >> right. >> i'm more in the dennis camp that says it's going to overhoo shoot through parity of the downside. i have no idea what means to u.s. equities. >> if european equities go up that dramatically, i would think that that would be some rotation out of the u.s. too? >> it does mean rotation. think about the move we've already had in the euro. think about the tailwind. how about the tailwind for european multinationals? how about this already price in? how about we haven't seen the first quarter earnings and a dax trading about 20% cheaper to the

s&p. the euro stocks 50s show i would play this. you can play three etfs. they're easy to find. you would be diversified through the industrials and companies like danon, even some of the local tescos, these of the world across the european continent are doing very well right now. and i think they will. coming up, the bulls are chasing one biotech stock. we reveal the name and the trade, after the break. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated, responsive support. with centurylink as your trusted technology partner, you're free to focus on growing your business. centurylink. your link to what's next. a dentist appointment when my teeth are ready? ♪

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welcome back to "fast money." i'm courtney reagan. according to a riot irs report, alibaba has named jeff jeng. this appears to be an internal promotion. this is part of a new business unit that will combine three of alibaba's three previous retail websites. >> thank you very much, courtney reagan. quick report here on baba. >> 8250. i'm long position. i did cut that position. that was the piece i bought after earnings. everything i said about baba is they're spending a lot of money on investments that i think will pay off. they're also having seasonal issues. the valuation isn't terribly cheap. but i wouldn't be running from the stock. i'm happy to own it. drugs and money.

one trader sees big gains for one biotech. mike khouw with the option. what did you see? >> we saw below average volume in option for single stocks overall. celgene saw above average call volume. right around ten thank morning, someone bought 2600 of the march 1 24 calls for 50 cents and bought 2800 of the 125 calls that expire a week later for about 70 cents. this is a name that is going to be presenting at the barclays capital health conference on wednesday. and that might be the catalyst they're targeting as they approach a bullish trade on the stock, thinking the stock might be up over 6% in just over two weeks. >> all right. thanks for that, mike. for more "options action" check out the live show 5:30 eastern time on fridays. let's get to a tweet. >> oh, my gosh. >> we love getting them. we love answering them here is the first tweet. this is for guy. also in biotech. amgen, buy or hold? >> it's the same thing karen will told you. >> or sell. throw a sell in there. >> throw a buy in there. >> all right. >> 15 times forward earnings

makes the stock cheap when you compare to it major biotext and major pharma stocks. it has a tremendous pipeline, a tremendous amount of drugs out there already. for whatever reason it has not traded well the last several months. i think 150 is the base. you buy the stock. >> for pete. if oil rebounds where do you see c-drill going? >> it's really sliding. >> ha ha ha. >> yes, i would see that. and i would look for somebody out there to start eyeing up some of the names. i think we're going to see an acceleration of buying some of the beaten up names if we start to see oil move up in a meaningful way. >> you still long calls? >> i am. and some stock. >> okay. coming up on "mad money" tonight, cramer is kicking off his week long tenth anniversary celebration with three big executives exclusives. jim will talk to the ceos of starbucks, pepsico and enron. he was the first ceo to come on the show when the stock was under 5 bucks a share that and much more on a special week of "mad money." stay tuned.

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it is time now for the final trade. let's go around the horn. tim seymour? >> one of the by-products of the dollar strength has been the weakness in the emerging market currencies. a number are on the brink. the turk. >> lira is one of them. i think turkey in lower oil prices does very, very well. and i think a lot of this is overdone, even though we know there are issues politically. take a nibble here. >> pete najarian? pit boss. >> you know how i love these airlines. and it's obviously very correlated recently, especially with the price of oil. i think oil continues to maintain somewhere near the levels where it is now. might go up a little bit. might be able to go down a little bit. i think the airlines continue to go higher. a huge buyer today in delta airlines. delta is going higher. >> giddy. >> giddyup. >> karen? >> a lot of talk about apple. i do want to say i really think the health research kit they have, especially the one for parkinsons is great. thank you for making that open source. it will hopefully relieve the bottleneck of getting patients into studies. all that having been said,

footlocker. it's up a lot. i would take a little money off the table or make some calls against it. >> timmy mentioned it. 38 was his level. i think 41 is the level i think the stock trades there the buyback gives it the next oomph 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 right now. hey, i'm cramer. welcome to "mad money." welcome