>> fast money is coming up in a few seconds. what's on tap? >> we'll talk about global but solar across the board was higher today. so we have a question for the traders. would you rather invest in solar stocks or coal stocks. both have been beaten down. >> or natural gas or oil -- >> no, it's just solar or coal. >> that's a tough one. straight over to you guys. >> fast money starts right now. i'm melissa lee. tim seymour, pete and guy adami. hedge funds are having a terrible year but good news for a hand full of stocks. we'll tell you what the names are and how you can make serious money. plus looking to beat the market, we have the three stocks that history says will outperform. and the names and how you can get in on the action and later mark zuckerberg announcing plans to give nearly all of his facebook stocks to shareholders.

>> but first, a market mystery today. the s&p closing near the highs of the day while we saw the worst economic data since the financial crisis. the ism manufacturing index dropping to its lowest level since 2009. bonds rallied hard on the news. we saw the reaction in the bond market. so the question here is which is telling the real story? stocks or the economy, what do you think? >> stocks are telling the story of the stock market 100%. the economy is weak and getting weaker. lowing reading in six years. the bond market is telling you that but the stock market says the fed will move in december and then they're going to say we'll see you in december 2016 which is exactly what they want to hear. one rate hike. see you in 12 months. rates continue to go lower and the s&p is headed to the may high which was 2135. >> so both are right in a sense. the economy is in fact weak but stocks can continue to rally. >> 100%. >> i'll push back. i don't agree that the economy

is weak. in fact, i would say we all know that manufacturing is 10, 11, 12% of the u.s. economy. if you look at the pmi services number. last month we were 58.9. record highs. a lot of the consumer consumption story is alive and well. if i look at bond yields they're telling us that the fed is in play. the curve has flattened a bit which means that the lower end has gone upright around near the high or as ten years are well off the high in yields. the economy is just fine. if you look around the world things are not as good as they are here. european stocks are more interesting because that's where you have central bank policy working for you. >> a lot of the depression comes from oil and mining and commodities. >> a agree. on the wrong side of 50 people look at that optically and they were questions the entire day.

why is it up? because of stimulus and what's going to happen in china and what's happening with the ecb at the end of the week. so they're going to continue to put stimulus in the market and equities are reflecting in a positive way off of it. so i do agree with him 100% t. bond market is telling you something about the economy and i think the equity market is reacting essentially to the potential of more stimulus. the potential in europe and the potential of also just kicking the can down the road. >> in the face of this sort of rally, what would you buy here? >> the equity markets today, i bought it because i talked about big cap financials unusual activity was in there and that triggered me to put a position on it. i'm already in bank of america and citi group. >> don't you need a steepening yield curve? >> i think that a lot of people are starting to make moves because of what they think is going to happen later on in the

month and they're starting to get ahead of it. let's be honest. a lot of people look at what's going to happen in december? santa claus rally. people want to be part of these type of moves so they're trying to ride the wave. >> i worry about the bank trade but i question how long is it going to last? >> they're not rallying on the expectations of a big move. the fed probably does want to come back a year from now. i don't think pete is saying that either. financials offer the most value in this marketplace if you look at citi bank and if you look at the charts. the consolidations we've seen in the bank after the expectations that it would go higher earlier, pulled all the way back to 50. that's the call. >> you believe in a strengthening economy here in the united states. you don't, guy. in terms of the bank trade, if you don't believe that the economy is getting better and you don't believe that the yield curve is flattening, where does that leave you? >> there's a couple of things

that have done well throughout the entire 7 or 8 year period. i mentioned it last night specifically. u.s. bank corp. which is about 2% off not a 52 week high. it's all time high. this is not a bank going 5% higher on any given day. nor is it going to go down 3 or 4% on any given day. this is a slow and steady wins the race with great management and premium devaluations. >> so you want to pay high valuation going to the end of the year. >> you want to buy value. >> i do believe and i look at it and say you're not getting growth anywhere. so i still love i think facebook is a phenomenal investment. amazon is still a phenomenal investment. those are companies you can look at now and say you're safe buying them for the short-term

and the long-term. >> safe buying them is kind of a weird thing to put with an amazon and a gook. >> but where do you stand on it right now. >> i agree with david that we have a narrow stock market rally that to me is running out of gas. you to pick stocks here. >> how about growth and value? >> let's move on to the other mystery of the day. surging in november. now on pace an all time high.

highest since 2000 but the big numbers haven't translated into big gains for the stocks. 4% on the year. shares are down 6%. are we seeing peak autos. phil lebeau joins us in chicago. i'm sure you hear this time and time again. theoretically can't get any better for the auto makers now. financing terms can't get any better. gas prices can't get any better. so why aren't these stocks hitting their stride. >> well, i think they're not hitting their stride because they do believe that this is the top. a couple of things to keep in mind. financing can't get any better and gas likely can't get much low frer here. you do have a couple of things working in favor of the auto makers that the market is overlooking. first of all, the pent up demand shows strong sales through the end of next year if not well into 2017. will we be at 17.5 million next year or a little bit higher? most are thinking it will be over 17 million which is still

an incredibly strong pace. the thieng to keep in mind is the transaction prices continue moving higher. this is overlooked by the market. look at general motors. the average transaction price last month, that's the amount paid at the dealership $35,800. up almost $600 year over year. up almost $800 compared to october. now people will look at that and they'll say yeah but they're raising incentives. no, they aren't. the percentage of incentives compared to transaction price actually went down. people aren't looking at that right now so they do have the ability to increase prices from here at least to the north american market but that's not being looked at right now by investors. >> are we seeing that translate into higher margins. >> yes they're well over 11%. they're at record high margins. they hit their rate of margins, profit margins in north america earlier than expected. you could not pick a more bullish call than the gm call

last quarter if you listen to mary bara, all of them. >> i hear you and i agree. ford is more impressive because they're getting $3,800 more per car or truck this year than a year ago. people look at the auto sector like the airlines. they'll be victims of their past and they're either going to expand too quickly or incentivize the consumers and their profits i think there's something secular or structural going on. uber, look around the world and people are saying suddenly demand for cars could be going down. >> are you saying that's impacting how they view the stocks? >> talking about peak autos or are we not going to get any better than that? with everything at our back. so yes, i think this is part of how people are considering it but i'm long ford, i'm long gm and these are great dividend plays in addition to companies growing their margins. >> stocks might be growing. >> i disagree on the ride share.

i think that is going to be an impact 5, 10, 15 years down the road. and it's not born out by the research that people say i'm going to put out buying a vehicle. in urban areas it is happening but you go to kansas city or places in middle america, and people are ride sharing every once in awhile but they're not doing it like they're doing it in new york city or san francisco. >> real quick to tim's point i get that they're selling a lot of cars but both arguably the best three year period in the last 25 to 30 years. from 18 to 14, not in a straight line but in a flat line and gm has had a similar move. the place to be still is a name like moe and curly in auto zone.

>> i'm kidding around but that's not a reasonable valuation. nobody believes the story. >> i have a real quick question for you though. do you feel at all like they have pulled this forward? what i mean is 0 down, 0%, and then suddenly you look all the way out, phil, they're going out 5 and 6 years. sometimes even further out in the future. >> on the laess. >> right. >> so are they going out right now? that's a version of an incentive without actually cutting prices but with 0 down on all the rest of it isn't that pulling it forward and isn't that going to slow down next year? >> one i think it was charlie evans out today saying they're pulling forward sales. we're not seeing that in term of the people that i talked with in the industry. almost everybody says the same thing. there's no indication here that they are pulling forward sales. what we are seeing are a couple of factors that are troubling and i'm going to say people are taking out loans that long.

thing length is a concern. 0% doesn't bother me for the primary reason that we see it advertised everywhere. do you know how many people get a 0% loan that take it out at the dealership? it's 14 or 15%. it's the tease to get you in the store and once you're in there you say i can't really meet all the terms here and the average auto loan rate right now is 4.68%. think about how long that financing is right now. >> great to speak with you, thank you. >> you bet. >> so what is -- why do you stick with this trade if the stocks are flat? >> because i'm paid -- at a time when yields are nowhere, i don't think of these as bonds. the yields are worth sticking around for valuations. companies are well run. margins are getting better. >> this is a name i really like. something -- people can see the growth there and they're playing through it. >> it doesn't matter if they're

new cars or existing cars they need replacements and the market is much bigger. >> that's the place to replace right now. i do think they're a buy here because i believe that millennial -- both are guys but i'd rather own the suppliers. >> up next, the revenue tumbling once again in november but several are rallying despite the downturn in traffic. is the bottom finally in for this trade. could the big hedge fund spell more gains for several select stocks. the names and how you can make money. and later mark zuckerberg saying he plans to donate 99% of his stock to charity. we have the details and what it means for shareholders. much more fast right after this.

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even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. our congratulations to mark sukerberg and his wife who announced the arrival of their baby daughter max on what else but facebook. and he said during his lifetime he will gift or otherwise direct nearly all of his shares of facebook stock to charity.

a max of $1 billion in stock for the next three years although he will maintain control. >> incredibly generous. and they just took a page from bill gates. this is an incredible gift and they said about the lifetime. so not like they are suddenly overnight having to sell the stock and gifting it away. they're going to do this for a very methodical way of getting them -- >> but there's methodology on how they do it. >> and it's amazing though, right? this thing could stretch out for quite sometime. >> what is important is they're directing it. they're not selling it on the open market. that's a big difference. >> and obviously, if you think this man is going to lose control of this company, there's no sign that the helm and the leadership of facebook is any different than it was yesterday. and in fact, this is as pete said, first of all, when i heard the news i was really -- i'm an italian man so i'm naturally emotional but to me --

>> sorry. >> i teared up. because i think it's truly a show of social grace that a lot of people think is missing out there and this guy is leading by example. i think it's wonderful and i think his stock is something to the growth although it's in the price is something that people have underestimated how important this company is as a media company and that's going to get more important, not less. >> it's symbolic for him and his wife to announce it on the day their daughter is born. it indicates thought for the future, investment for the future. >> it's not lost on me. i had other thoughts in terms of how i can get myself some of that cash. with that said, facebook, valuation will matter at a certain point. i don't think 35 times forward earnings matters now. the last 12 quarters each one better than the next. the stock continues to grind higher. continue on facebook right here. >> moving on, more bad news out of macau. down 32.3% from the year earlier hovering near five year lows and take a look at this, several of

the big casinos rallying despite the dismal gaming numbers. does this mean that we're seeing a bottom here in the stock. >> if you look at december expectations that december is going to be in around minus 20 to 22 actually so maybe 1500 basis points tighter or 1200 basis points tighter. if you look at these stocks, remember, six months ago we were having the same conversation. now we have had enough to go by where you can look back and start to say at 11 times forward with now having gone through this cycle these things are starting to look cheap and i they you're getting to a place where people are taking a shot and i think if you look at policy initiatives in china and the heavy hand of the chinese government this was probably misinterpreted or heavy but people overreacted in some way. we know value is down but they're not going to kill the golden goose there. they're going to help it. >> i can't argue with him. i think that it's less bad. anything less bad in an

environment where it's been incredibly bad is good news. i think they're a buy here. >> what do you think? >> do you agree with that? >> oh, you're going to wait. >> i would wait and the reason i would wait is here it is hovering around the 50 day moving average. look at the technicals. way below the 200 day. that's exciting. if it makes a move you can still catch this move $10 higher. if it starts to break out it will actually break out and start to test that average. >> still ahead, a strange historical anomaly. we'll tell you what they are and how you can profit. i'm melissa lee and you're watching fast money on cnbc. first in business worldwide. in the meantime, here is what else is coming up on fast. >> that pretty much sums up the performance of the big hedge funds in 2015. but the smart money's terrible year could spell gains for a basket of stocks. we'll explain how the hedge fund pain could be your gain. plus -- ♪

>> we'll do better than that. we have three stocks that history says could rally big this month. the names when fast money returns. (vo) me? i don't just wait for a moment. i watch for the perfect moment. the one nobody else sees. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus, powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

we have a news alert on bill ackman with the details. >> the rough ride continues for the marquee hedge fund. again this time around. according to kate kelly citing a source familiar, overall performance of holdings declined between 2 and 3% for the month of november. now that brings the year to date loss to close to 20% for the holding company overall. we know his very large stake in valiant pharmaceuticals is a big part of that story. so those numbers are continuing this trend. this comes on the heels of performance data yesterday from fellow hedge fund heavy weight, david einhorn. they reported a 5% decline for performance in november and that puts his funds year to date loss at a little over 20% as well.

so as of the end of the third quarter the fund cited some severe underperformance from console energy and sunedison and micro as well. this could be the second year of losses sustained by the fund in nearly two decades of existence. 2008 the last time he lost money. now they have taken on more high profile losses. they aren't the only ones feeling the pain in hedgefund land. according to hfr it's index of collective hedgefund performance is flat. 0% this year. the equity hedge funds are up just .7%. now if hedge fund performance stays as is, it won't be a negative year but it will be the worst year for the industry since 2011 when they were down just over 5%. so overall when it comes to hedge fund returns this is shaping up to be anything but a banner year for many strategies, equity included guys. back to you. >> does this mean there will be a performance as we enter the final month of the year?

>> there could be. there's also the question whether there's momentum to try to get the extra return for the end of the year but remember it's a very interesting dynamic for hedge funds this time of the year as well because for this particular year are they facing redemption requests. are they trying to raise cash. can they even have some of the latitude to trade around the positions and take on additional risk. we just heard other hedge funlds are trying to shut their doors and only manage their own money so an interesting dynamic for hedge funds. for a lot of them that we talked to they're happy if they're flat to positive for the year. we'll see if this trend continues as these guys start to report over the coming weeks here. >> thank you so much. that's an important point in term of the ability to deploy assets right now. david einhorn for instance, he may have some powder that's try but we don't know about bill ackman for instance, he was buying valiant still. >> and redemptions.

so you think about -- making phone calls to these funds, there's no question they're lining them up for redemptions from january. so if there is a chase, a move to the end of the year, it's a chase -- >> i disagree. a lot of the investors with these guys have been with them for a long time and they're not going to be running for the door based upon -- it's not been a bad year. probably a bad quarter and maybe a bad half year. let me say something else. as a hedge fund manager one of the biggest issues you run into is not when you're down a little bit. it's when you don't catch the rally on the way back up. so you're saying does that mean they'll put powder in december no but first quarter especially if people think the market has some legs that would be the time these guys have to be back in the market. >> you have to be careful in risk management and job security. if you have money at some funds you better make sure that you get at least a portion of the money out. i think they'll come in january. >> quickly, what are the culprits of this? the biggest is energy which i still think goes lower. pete can speak to the oil

volatility. trading around 50 for the first time in three months. also material names that everybody has been trying to find a bottom in incorrectly. i still think that trades lower so to me, if you're looking for why, those are the biggest ones right there. >> trying to catch the bottom. how many have we seen throughout the year? everybody trying to go into the energy trade. look at carl ican for instance, he is getting material and gold and he has all three and it's going lower. >> part of the problem is they're crowded trades and a lot of the guys are trading similar ideas and that's dangerous. >> valiant, allergan. sunedison. >> speaking of energy, crude prices down 23% year to date but could the energy trade be heading for more losses heading into 2016? we have your next stop for oil and how to play it. plus a tale of two media titans.

how they could learn a thing or two from rupert murdoch. we'll explain when fast money returns. conquer the weather.

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>> welcome back. the dow soaring near it's highs. the dow and s&p both have the biggest gains in two weeks with all ten sectors moving higher today. here's what's coming up in the second half of fast money. a tale of two media moguls. plus traders making a big bet that one group of stocks is going to cool off and could have broader implications for the rally. but first, prices down 23% year to date. analysts expecting for pain for the commodity heading into 2016. jackie is up at the new york

stock exchange with all the details. >> ahead of friday's opec meeting of course all eyes on oil prices at this point. what did we do? we did a survey to get the sense of what energy funds traders and analysts were thinking ahead of the meeting. the takeaway here, most people think that opec is going to stand firm. we're not going to see a production cut from the cartel and it could spur another leg down in oil prices that could take place within the first half of next year. what was remarkable about our survey was that 100%, every single respondent said they think opec will not cut production. the theory is that they have gotten themselves in a hole here. they have lost so much profit because of the low oil prices they have to produce more oil and also saudi arabia is worried that iranian oil will come back on the market next year and that will create a market share problem for that country. what will this all do the pricing? most of the respondents think that they'll stay in the 40 to $50 range but next year within the first half, we could see the

30s. potentially even the 20s. remember goldman sachs had called for that. what's interesting about this is we're heading into the meeting on friday. we cou see a domino effect here. respondents said they don't think opec is going to act. 90% of them said if opec doesn't act russia won't cut production and most are only expecting to see u.s. production slightly lower next year. where does that leave us? with a supply glut. nlts we see a boost in demand, we still have the same problem that we started with and this could trigger the next leg down. back to you melissa. >> jackie, thank you. now interestingly enough the decline in oil prices pushed the high yield markets near levels not seen. the bottom of the chart shows the negative impact energies have on the overall credit market. now this is important. historically it moves lower in

the high yield market and lower in stocks. if analysts expect crude to keep going next year at what point should investors be concerned? will we see the ripple effect? >> i think so. it has bounced off the $80 level but they have been more and more meager over the last six months. i think the hyg pushes down toward 80 and reaches it. it's not meant for the s&p. at some point it will matter but i think the line-up is this. i think the s&p trades up to the may high 2135 as high yield trades lower and we'll see what gives at that point. >> the default rate in the month of november also increased up 2.7% as of the end of october compared to 2.5% from september. so we're seeing that also get worse. >> one third of the herd is wounded and will die and this will have some impact. to me this is contained. i'm not going to tell you that i

don't think there's bigger credit issues that could come on the back of liquidity. but this is leveraged balanced sheets. this does not even closely resemble 2008 and 9. people will stick to the low end of the curve and be buying spread product. that's going to happen. >> i don't think the equity can rally until we see a forced kind of go out of business effect with a lot of these really under leveraged companies or highly leveraged to the hills. once you start to see that. >> we need bankruptcies. >> that's when you start to see the equities move higher. >> you have to see a few guys start to fall off. we haven't seen much of that. sooner or later we will.

that will be a sign and the funds leveraged will specifically really feel the heat and that actually -- we might see that flush. >> accelerate. >> i promise you it's going to be the guys that have the best assets in the u.s. and bigger guys coming in and taking those assets out. that will happen end of next year. >> only 21 trading days left in 2015 and with the s&p 500 flat on the career, should you bet on the winners or the losers heading into year end. paul is breaking out the best performers for us. so you found a few stocks that do well. >> so groups are evenly split right now between first time in this bull market. it's set to be evenly split among groups so we found that the leading groups heading into december have typically outperformed in the month of december. there's only five of 24 industry groups that do better when they're underperforming heading into december and when they're outper fo outperfo outperforming. now we want to look at groups that should do well based on

this. so the first group is capital goods. these are the industrial compani companies. but one that outperformed year to date is stanley black and decker. it's a nice strong gain been up every year. 9 out of 9 times for a gain of 7% in september. every time the stock has been outperforming it's continued to do well with a positive return in december. an average gain of 7%. next group is banks outperformed year to date. that stock has averaged a gain of 4.7% in the month of december when outperformed year to date. it's been positive 77% of the time. 10 out of 13 times. and the last group was health services. this group is outperformed in a

rough august but it's starting to rebound here. and it's averaged a gain of 5%. 90% oppenheim the time. it's been strong that too. >> we'll give you a buyer. that's extension -- >> home depot and obviously we have been talking about retailers that have had success as well. it's the tjx's of the world with home goods. anything connected to the home has been the place to be in the retail world. >> home improvement is one of the few retail groups that does well in the holiday season post black friday into christmas. >> let me push back, i mean, to me we hear about the santa claus rally and ultimately, 75% of the time it works 100% of the time but we're in a place where the fed will be at the middle of december. we're at the end of a six year bull market and to have any me

trick, it's very interesting and picking stocks is very important but it bothers me when people start pointing out that this year they start talking about december rallies and put them in the context of the past because we're in such a different place right now. >> seasonalities are to be taken as one step of a process. you have to look at other things and like you said we haven't had a period where the fed is going to be hiking rates and europe is going to be cutting rates since 1994. but i think the rate hike it's not even a forgone conclusion at this point but it's priced in and most investors are aware of it. >> great to see you, thank you. >> thanks for having me. >> big fan of paul. laboratory corp. lh it comes out. that's old wall street jargon. all time high earlier this year, traded at 120. here we are grinding higher.

if you want to get through 131 or tray that it breaks out. given their eps growth rate the stock is still going up at these levels. >> still ahead, a game of would you rather and our traders are draeding it. here's the question, could solar be a dirtier trade than coal? plus a media empire in chaos as the health of red zone is called into question. what is he doing wrong in we have a special fast money report straight ahead. yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab. i've got a nice long life ahead.

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the cost of solar has gone down much faster than any of us would have predicted even five years ago. so the key here is to set up the structure so that we're sending signals all around the world. this is happening. we're not turning back. >> that was president obama speaking today in paris about the importance of the world's commitment to battling climate change. now solar stocks rallied after the president's comments today and also after david tepper sent a letter to the board of terra form. both stocks are down 70% or more this year. sunedison is pushing it's low

grade projects on to terraform power. also said it would benefit parent company sunedison more than terraform. this is a real soap opera. if you just take a look at what has happened at these companies. in october, sunedison has an analyst meeting at which the ceo, he is under pressure because the stock is down terribly says we're no longer going to sell these projects to our yield co. then on november the 22nd they change management of terraform so they inherit the ceo that was the cfo of sunedison and four board members re-sign. that's the next day they announce terraform announces it will buy projects from sunedison all of a sudden and today we get this letter. the series, i mean, the series put together is fascinating. >> well, and in transparency within the structure is the problem and then ultimately you

get to a place how do i know what's the balance sheet and which assets belong to who and if you separated them out who can claim ownership of them. although i thought this was a game of would you rather -- >> we'll get to that. >> but we'll talk about this first. >> so we're in a case here where clearly there's probably value in sunedison. it's not a trade i want any part of. i owned the stock in the mid 20s. i owned it when i felt like i could see the financing and the spin off model and i think the world has changed at some level and i don't think they can get away with that anymore but i think there is an oversold condition in this. >> you know tepper is interesting because kelly talked to david tepper and asked him sun blank if he would buy sunedison to say that that's is a crazy trade. marijuana, pot, whatever you want to call it and then he discloses in his letter that he has a big stake in terraform. meantime, they are five notches below junk because of the

financial distress transmitted from their parent company sunedison on to them. >> maybe somebody planted an idea. i think sunedison if you want to play it just to play stock market, give it a shot. it's still going down but not all solar names are created equal. sunpower, you have him on to show a number of times today. it's a sustainable model with close to a 20% short interest and not a ridiculous evaluation in the space. >> so let's move on here because solar overall, it's partly this, it's partly lower oil prices. it's partly the investment tax credit coming off in 2017. it not been a good trade and that got us thinking about what's the dirtier trade. would it be coal or could it end up being solar. take a look at the solar etf down 35% in the last six months. a basket of stocks trading under the ticker coal is down 40%.

so would you rather, coal or solar? >> i'd rather solar. the politics in coal is a disaster and there's a massive movement behind solar. >> i'm going to go to solar. they talk at sunpower and i'll go to first solar. they never put themselves in the same leverage position as the sun edisons and i think sunpower is in the same boat. look at how they performed versus the rest of the guys in that space. they have done well and they bounce today as well. >> i'd rather listen to grand funk railroad on a loop but that's not part of the game so i'll say solar because i still think steel pricing has not bottomed out yet. >> i'm saying coal. look at the aussie dollar. i think supply is under control. >> still ahead in a battle of media kings, fox is doing something that viacom missed the

vote on, what went wrong with the titan's empire? we'll explain after this break. >> plus small cap stocks on a tear over the past month but could this hot trade be about to melt down? all the details next. you're watching fastmoney on cnbc. first in business worldwide. i'm here at the td ameritrade trader offices.

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>> welcome back to fast money. it's a tail of two media moguls. you have what looks like the success story of rupert murdoch and on the other side we have what's shaping up to be a modern day tragedy as a family and former companion fight over it. and editor and chief has profiled both cases and yojoinss for more. is it as simple as that? >> one guy figure t out how to get old. the other guy totally botched it. there's huge governance issues here. when you have a succession plan and majority stake in a company, your escape planning effects not only your family but shareholders as well. look today mark zuckerberg giving away 99% of his stock in

facebook, that has huge implications for shareholders and here with cbs and viacom it's a mess and it's going to go to the courts. if you're a shareholder, what do you do? it's a huge problem. >> some might say he was almost forced to do this because he had so many children feuding over the stake where they weren't in the same position. >> they both had ugly divorces, right? they both kind of had problems with their families and rupert murdoch had the phone hacking scandal. a black mark on his career. but, you know, rupert figured out the succession plan and made peace with his kids. rupert's love life looks good. he's been dating. >> that's not relevant. >> jerry hall. >> he's been dating gerri hall. >> life is good. >> are you a buyer -- >> what? >> i think someone is a

little -- >> she wasn't returning your calls? is that what happens here? but look at the state of affairs of these two companies. well, they're four companies because each one of them controls two and murdoch's empire in much, much better shape than redstones. and the investor and buy stocks when they're cheap and not expensive. >> perspective, at some point, we're jumping. and assets and at some point in time there's a real trade here and are we getting close? >> i think we might be. you can dollar average in and of course the media stocks have all been hit this summer with the downgraded content. so they're a prisoner of that but they have been hurt the most and we have been talking about that and, you know, if you're looking for value here, where do you go?

at some point this thing is going to change over. it's going to be combined. there will be a deal at some point. it has to happen. >> great to see you. >> good to see you as well. >> small caps on a tear in the last month up 4%. one trader is betting the run is about to come to an end. mike has that big trade. >> it was a very big trade. somebody went out and bought 111,000 may 10790 put spreads. spending about $2 a contract. that's over $20 million ensuring over a billion dollars worth of stock. the interesting thing was that they would have to be down more than 12% for us to begin to see profits and we'll see the highest profits if the russell dropped 25% from here but of course if it did they would make nearly $200 million so a very big bearish bet. a disaster insurance trade. >> good to see you. thank you for that. for more options action check out the full show, more options action at 5:30 p.m. on friday. cramer is getting a read on

retail in an exclusive and tomorrow do not miss jim's exclusive with general electric ceo jeff immelt. two big shows coming up on "mad money." up next the traders will tell you what they're watching for tomorrow. final trade, right after this. other wireless carriers make families share data. some way to say happy holidays. switch to t-mobile now and get up to 4 lines with up to 6gb each. just $30 bucks a line, that's 6gb each plus unlimited video streaming with binge on™. stream netlfix, hbo now , hulu and more without using your data. and now unwrap the samsung galaxy s6 for $0 upfront and just $10 bucks a month. this year tear into the holidays with t-mobile.

time for the final trade. let's go around the horn. >> back to autos after a terrible third quarter. looks interesting. stock and share price consolidating here. >> david. >> yum. we actually upgraded the stock today. andrew charles upgraded the stock. he has a phenomenal feel for this name. 37% buy rating. this has turned into a highly franchise model. he paves the way for a 10% earnings growth story over the next four years. >> i love these financials. we talk about some of the regional financials but morgan stanley is another name. they're creating themselves into a health management group. this stock is going higher. >> sorry about her buddy.

>> i am. >> what are you sorry about? >> i'll tell you what though, laboratory corp., maybe she is watching right now having dinner. >> i'm sure she is. >> i'm sure she is. i'm melissa lee, thank you for watching. see 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. i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach. put it in context. call me at 1-800-743-cnbc or tweet me at jim cramer. every once in awhile, people stop obsessing about the federal