thank you so much for joining me. mike is eking out the last couple of syllables you have there. that does it for us. "fast money" begins next. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight on "fast," to the big fracking names, if oil goes as low as 20 bucks a barrel, which stocks aur vooif and which fail? plus we're worried about dividends in -- that could bring you big money. we'll tell you what those are. and here's a question. would you eat a burrito from chipotle? we'll explain. but first we start off with the breaking news on yahoo. no longer moving forward with the alibaba spinoff. >> referee: we reported about a half hour ago the board of directors after a series of meetings last week has decided

not to pursue the spinoff of the shares, roughly 15% of alibaba that it owns into a separate company. that of course is is spinoff that's been planned for the last nine months. announced early last year. and expected to have taken place early next year. not going to happen. in fact, now sources familiar with the situation tell me the board has directed the company to examine a spinoff of its core business likely to also include its stake in yahoo japan. a so-called almost reverse spin which would have the effect of leaving the alibaba stake in place. and make sure that all of it would be -- well, that would be tax free. there would be tax on the spin of yahoo as core business. but it would not be near the potential tax bill that the company faced if its spinoff of the alibaba stake was not deemed to be tax free. and that was the key consideration here for a board here that had firmly adhered to moving ahead with that spin. in recent weeks the number of

shareholders had come forward and communicated with management, the board about their fears that the irs would challenge the tax free nature of that spin of alibaba shares and even if they were to prevail eventually, the spinoff would have actually traded at to the underlying value of the shares would have been so significant, such a large discount, that it wouldn't have been worth pursuing it anyway. the board eventually agreeing with that position and again deciding we are no longer going to pursue the spin of the alibaba shares into a separate company. instead we are now looking closely and will examine a spinoff of yahoo's core business. along most likely the stake in yahoo japan. a big reversal, of course, for the company. and one that also leaves it in something of a limbo, if you will, given how long it will take should they decide to move forward with the spin core of yahoo. could take as long as a year or more raising questions of the

viability of that business, ability to attract new talent to a company that is certainly in a great deal of transition, almost, if you will tumult. >> how does this make yahoo's board and marissa mayer look given they're basically back peddling on this? until shareholders said you should re-examine this given the tax implications. >> obviously it doesn't look particularly good. in their defense, i will say that there's been some communication from the irs, one of the key people who deals with this very issue. it seems to have heightened at least the view of risk, if you will, amongst some shareholders. and it's simply that view of risk that i think many eventually came to understand would give that big discount to the alibaba shares. perhaps something that was not appreciated by the board originally. their accountants or their lawyers fully believe that it

would be a tax-free spin and they, you know, have testified to such in their conversations and their advice to yahoo. but me lmelissa they eventually decided it's not worth it at this point. it doesn't look good when you're pursuing one course for quite some time then decide to pursue a different course. the same shareholders were saying do this, then do that. namely led by star board which is amongst its largest shareholders. >> david, it's karen. so that raises the question of star board and other activists. what do you think they do now? they give them time to pursue the chance of a sale of the core business? or do they do something aggressive in the shorter term? >> i think they probably for now stand pat. i think there was certainly the chance of a proxy fight come the spring, karen. you know, when they're up for that. and the chance that starboard

would nominate -- there's jeff smith there of course who leads that firm. probably now they're happier. this is what they wanted. i think the real hope is that you can create value in a shorter time frame by perhaps attracting a potential buyer of those assets and maybe even structure some sort of a deal quickly. even though it will take quite some time to close. perhaps that's the best outcome they can hope for. i'll leave it to you guys and the experts to figure out what all this is worth. or whether you get to a much higher stock price on terms of what the multiple would be. and whether that's going to eventually result in a far higher stock price. that's the hope of guys like jeff smith and other shareholders. for now i think they've got to be at least pleased that the board listened to them. >> okay. david, thank you. david faber breaking that story for us just a half an hour ago. what does this mean if you're a shareholder of yahoo -- >> i am. >> are you happy about this? >> again, it was about a pause here. it was about waiting to see

there are better options, a spinout of the core business one with enough time to develop and incubate this concept. people think there are not only private equity firms but strategics. verizon, disney, you name it, at&t. these people are at least trying to attach to a strategic interest in this. that could also bring more value. the discount is something that not very interesting. and finally if baba themselves want to take yahoo out, they'd prefer a cleaner vehicle and a cleaner company to do it. so spin out the core. this is positive news. >> two ways you can go as most stocks are. it's always binary. you've not been paid to weigh in on this. so you can say that this is ask more questions than answered. that's the negative side of it. to me the positive side of it is it makes it a cleaner takeout target as tim said. maybe it is a verizon takeout target. now that aol is there, there was

always that speculation that maybe an aol/yahoo deal was there as well. it may be more likely for me. could be a cleaner deal. down 31%. i don't own it but i could see the risks and the upside from here. >> you look in the after-hours, this was up significantly higher than it is right now. looking at the core assets, we were talking about that today on the hal half-time report. he sounded very interested. but what is this worth? i mean, we're all saying -- i saw the graphic up there. 6 to 8 billion. how do we know that? >> especially because people weren't giving it that 6 to 8 billion valuation before all this. >> that's right. because they didn't know if there was any interest. now after today i don't know what the level is. i can't tell you $6 billion to $8 billion, that sounds high to me quite frankly. the ceo of verizon sounded big.

he talked about the fact this is a tech company on top of it. >> i think the bigger issue as david pointed out is the company may be worth $6 billion to $8 billion now, but how long it takes to reposition the company to do this, we don't know what's going to happen to their core users. how much that's going to deteriorate. we don't know how much of that valuation is going to still be there when the company is structured properly in order for it to be sold. >> and is that taxed? >> yeah, it's fully taxed. i just think it's laughable that people are now willing to attach serious value to a stub that people were not giving any value to. that's for someone who's been long the stock and trying to defend why some of the parts at least made me feel comfortable. some of the parts, this wasn't something anybody was given any value to. now we're talking about 6 to $8 billion. a lot of people sniffing around, where were you yesterday when we were having this conversation. >> let's bring in bob on the fast line. bob, i'm going to pick up on what we were talking about.

why all of a sudden is this thing worth the $6 billion to $8 billion when folks like you on the street assigned no value to this company? >> first of all, thanks for having me. i think this is a positive and defining moment for the company, first of all. it's showing they can adapt to new information. and that new information or material adverse change was the irs changing its opinion or not giving the blessing on the deal. seeing them adapt to that is great. also the responsibility and duty here. and they want to optimize structure and maximize value. the way the stock trades right now, it's giving zero value for the course. they actually look to sell off this asset. this has over 800 million of ebida. also some ppe as well. they also have some that aren't in the ebida. like tumblr. that's worth something. when you put all those pieces together and that's the way i think you need to look ate pipt this is a sum of parts for the core. you get to the $6 billion, $8

billion range we've put out there. >> so you're basically assigning the core business zero. and now you're -- when you actually break it down, you're saying it's worth $6 billion to $8 billion. so magically overnight people will say it is worth that much even though it wasn't valued at $6 billion no $8 billion. >> the difference there is it appeared there because there was this implied tax risk on the alibaba shares or abaco spin. you could say the core is worth this $6 billion to $8 billion, what was the line it was going to trade at? i think david talked about that and said there is going to be a discount there for so long, a good three or four years, that it would hamper what you're tried to do. so it shows you what the street was thinking on taxes. >> what happens to marissa mayer at this point? >> that's a great question. ultimately it depends who the buyer is of the core if they

sell it. if they sold it to someone like a verizon. they already have a tim armstrong there. they probably would have their own turnaround management team. really more of a function if they sell the core and ultimately who that buyer is. >> how much time do they have in order to do this, bob? given the deterioration in the core user base? >> i think they need to move relatively quickly. since she's been running the company, revenues are down 15% or so. ebida is down north of 60% or so. it is tough to hire and maintain talent there when you're having this turnaround problem. you want to run a smooth, quick process here. even if it's something as simple as the core at set. maybe the most tax efficient way forward. >> thanks for phoning in. >> thank you. >> pete, what do you do now? >> well, i think to tim's point, obviously now everybody is going to start attaching some kind of a value. rather than that zero number that was there before. certainly they start to price something in.

whether that's $6 billion no $8 billion,time not sure it's quite that much. but there's some number they will say that's what these are worth. >> you sell here? >> no. you don't sell. the whole reason i was holding this stock was the fully taxed -- that's the baba stake, the core, still leaves me probably 2 bucks of upside or 6% or 7% at this level. if you get some efficiency and the spin of the core fully taxed with the structure and the ability to figure out how to get more value from the stub for baba i think is probably a $45 stock. >> sell the stock, buy the upside call. that way you've taken some risk off the table. >> too complicated for me. >> up next, morgan stanley slashing 1200 jobs. could it be the start of more pain for financials? we all know about the pain in oil, but there was another group of stocks that tanked today. that could be telling a much graver story for the rally. we'll tell you what they are. and later, yield of dreams.

we have the top dow stocks positive on the year. when "fast money" returns. and can you explain why you recommend synthetic over cedar? "super food?" is that a real thing? it's a great school, but is it the right one for her? is this really any better than the one you got last year? if we consolidate suppliers, what's the savings there? so should we go with the 467 horsepower? ...or is a 423 enough? good question. you ask a lot of good questions... i think we should move you into our new fund. sure... ok. but are you asking enough about how your wealth is managed?

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what we've seen over the

last couple of years is saudi arabia has increased their production. we have the miracle of hydraulic manufacturing has expanded in the u.s. we have iran growing production, iraq growing production. and we've -- as an industry, we're producing more than market is demanding. china has slowed down a little bit. we have got a slide in balance and demand and it's going to take time to work that off. >> that was the ceo of jechevro. so if the price of oil continues to dropping with companies could survive oil at 20 bucks a barrel. we kick it off with measuring acmaran. dead or alive? >> dead. the whole game we're playing is $20 oil. at $20 oil, you look at who's leveraged and who's not. originally i was assigned exxonmobil. you look at freeport right now, they've got 20-plus billion dollars in debt. little cost pl all of that debt

coming from when they made the huge acquisition to get themselves positioned in energy virtually at the top. >> but it's also a major copper company. >> it absolutely is. but look at their debt that they've got on the sheets. copper company or not, unless they decide to rip this whole thing apart which is a possibility, i look at this company and by the way, the option activity in there for the last six months, buying downside puts and they've rolled all the way to the february 6 puts now. huge. >> and if oil's going to $20, chance is copper is going lower. >> can't argue with that. >> up next, transocean. dead or alive at $20? >> at $20, begs the question of $20 for how long. forget going into that, i think it survives. i think they have a big backlog and the question isn't so much where it's oil. it's the credit worthiness of the backlog. and they've been buying back some of their debt. they do have some cash.

they do have maturities that aren't huge in the near term. >> next up, eog, dead or alive? >> alive. >> oil was trading around 19, 20 kbuks. eog was trading $6 to $9. it's going to take more money to keep up with what they're doing now. they'll figure out some ways to look a lot different. survives swn, crk, they die. >> in a role even at $50 oil, it's one of the healthier guys. no question about it. but at $20 oil, what are they figuring out? >> best acreage in the space. >> i think figuring it out is being able to roll their debt. >> they're going to figure it out. they could sell it.

meanwhile, it could be a lot. they'll be more demanding. unless you move it out. >> you need to see major bankruptcies. >> i think they are better positioned if you're going to dabble in that space. if we see oil stay where it's at right now, they're all in trouble anyway. we don't need $20 oil. >> next up, a little something different here. eem, the emerging markets etf. >> it makes sense to answer that question. >> okay, people. >> 70% of emerging markets are net importers of oil. and this is a good time for all of them. out today watching for the perfect storm in emerging markets. and what they're talking about is the commodity collapse. so this isn't about brazil and venezuela and parts of the middle east. but if you think about what's

going on in asia, there's a lot of places. so they're going to live. >> alive. >> sorry, alive. trying to play the game. coming up, check out shares -- i was wondering if you were going to -- >> i needed that. >> shares of kinder morgan falling. we'll explain. i'm melissa lee. you're watching "fast money" here on cnbc. meantime, here's what else is coming up on "fast." >> shhh. be very very quiet. i'm hunting -- >> for yield. and we found the best sympttock on the year. how to get in the cash stream. plus, would you eat a burrito from chipotle? we ask that to the people of times square. the answer might just surprise you. all that and more ahead on "fast." milies share data. some way to say happy holidays. switch to t-mobile now and get up to 4 lines with up to 6gb each.

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welcome back to "fast money." check out what's happening here with shares of hertz, the car rental giant. up by about 2.5% on 81,000 shares worth of volume. this on headlines and a regulatory filing that says activist carl icahn has boosted his stake in hertz to a little over 14%. prior to that this stake was a

little over 11%. again boosting his stake in hertz. and the shares reacting in kind. those shares down by about 45% year to date going into today. also this comes on the heels of another disclosure from activist hedge fund jana partners saying they had sold off a good chunk of their position, nearly around half of it since probably the middle of the summer. down to around a 4.8% position. as jana partners has been pairing their positions in hertz, icahn now says he's boosted his. icahn now the top shareholder in the car rental giant. back over to you guys. >> thank you, dom chu. karen, who would you follow? barry or carl? >> right. because they have actually been selling one directly and one to the other. >> exactly. >> i guess at this level, carl. i mean, the stock's really been hurt a lot. if you believe in the consolidation of the car rental business and the ability for car margin improvement, i would

follow carl. >> but the industry's dead. we talked about this before. >> why? >> i think the rental car business is largely dead. i think there's major disruption in it. i don't think people need to rent cars in the same way they used to. >> what's the disruption? uber? doesn't it own zip car? >> i don't know. but ultimately we're at a place you don't need to rent a car in the way you used to. but the conversation we had is whether someone's lost some of the magic here. and chasing industries that may be just because a stock's down doesn't mean it's a great time to increase the stake and try to activate change. >> yeah. i think the car space to piggyback on tim, the car space is challenged. obviously the whole sector, the whole space is -- has its own battles. but when you see these activists jump zboo into a stock in after-hours prints, it's better to be selling that pop than actually buying that. and the margins are going to get crushed as the business changes. even if they have chair own, it's not as good on --

>> avis owns zip car. it doesn't preclude the companies from trying to reinvent their business. >> and i've never been a huge advocate of let's follow the money the way it's coming in there right now. in particular as the big guy is getting out and another getting in, carl lately seems like he's been late to parties. >> or too early. >> or too early, rather. too early trying to jump in and trying to catch this falling knife. this feels like another one of those situations right now. i don't know that today's low is the lowest level we'll see this year. >> all right. morgan stanley kicks off top trades tonight. plans to cut 1200 jobs or 2% of the global workforce. taking a severance charge. they will reduce 450 positions in fixed commodities and currency businesses. >> so it's not all about the charge or the saving money. it's about the idea, all right, there's less business to do. and it's profitable business.

also from jpmorgan about the markets that would affect morgan stanley as well. you got a brokerage firm that's going to be down as well. >> yeah. and down more in the broader market. >> i think the financials have really come under a lot of pressure at a time when they've gone sideways and the pgs kps that people were making this a one cell trade. it was all about rising interest rates. what i think is interesting about morgan stanley, there's a lot of information about cutting positions and cutting thick positions last week. and it was actually applauded by the market. ultimately i think what karen is saying that, look, morgan stanley has out-performed on some level because this turned itself into a wealth management business. if that's what you believe this is all about, you have to also believe that the wealth management business is going to be as great in the next six years as the last six. still ahead, how does apple's new battery case stack up to the competition?

and what about the rumor its lost its design mojo. plus would you eat at chipotle? the answer could have a big implication on stock free fall. all that when "fast money" returns.

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welcome back to "fast money." the dow and s&p saw red for the second straight day. the s&p 500 fell nearly 1%. meanwhile shares of yahoo spiking after-hours following word it will not spin off its alibaba stake. a burrito blowout. the fallout from fast food chain's e. coli outbreak continues to grow. we've got a special report. plus it's been a tough year for emerging markets. but some sense a turnaround in one sector. but first with dividends in doubt on many big oil names are there other names that are worth chasing if you're looking for income? dom chu is back at headquarters with more. >> melissa, we weeded out all of those big oil names and took a look at some of the large cap

blue chip stocks that have heavier dividend payments. have also been positive performers. here's what we came up with. among the stocks, pfizer has the highest yield. that's close to around 3.5%. it's gained about 4.5% on a year to date basis so far. there's coca-cola eking out a small gain in 2015. it carries a yield over 3%. the next two are interesting here. they're not only heftier dividend yielders but best performing stocks of the dow so far. it's mcdonald's and general electric. both yielding around the 3.1% mark. and both are up by about 20% so far just in 2015. so for the traders and investors out there who may be on the hunt on where to put some money to work, they may want to look at some of these stocks. they are dividend payers but high yielders despite the fact they've gone up in value. their yield isn't high just because they've been crushed in terms of their overall stock performance, guys.

back over to you. >> thank you, dom. so are any of these names a buy or where would you go for your yield of dreams, tim? >> i'm very much enjoying the yield of dreams at mcdonald's. i think there's a couple reasons for it. not just only are they going with a new menu, but they're catching on with the times. they are doing things to the menu. they're going to triple their buybacks. if you read a number of analysts on the street, they're anticipating this is a company that not only are you getting a yield benefit, but an implied boost. u.s. comps are going to be better. turn the business around. i like it. i think it is a great place to sit. great place within the value of the space. >> grasso, your pick? >> well, i'm going to talk about coke at this point. so coke for me a flat on year. it's up 2%. yields about 3%. but if you go to staples, it yields about 2.5%. that's up about 6% year to date. but if you drill down one more

deep in the xlp, you get altria. so for me i know it's about coke, but i'm going to play my own game and play would you rather. >> i've never seen this coming before. [ overlapping speakers ] >> yields 3.8%. >> that was like five pivots in one sentence. >> and i did it seamlessly. >> never seen that done. >> and you did a would you rather too. >> where am i? >> karen and pfizer, what do you think? >> yeah. i guess i'm going to go with pfizer in terms of valuation. it's the cheapest. and the offchance -- >> or maybe guy with an auto company now. why not go with ford? because you're steve grasso. sorry. >> all right. just two go into non sesecular.

i don't think it's cheap here. you have a nice dividend. maybe have a bunch of cash, you could see a return to investors. >> i'm going to ge. >> nice to go straight up. >> i'm going to tell you. don't ever pick anything just for the dividend yield nap is the last thing you'll ever look for when you're looking at companies. but it is an important one. but it's the very last thing. when you look at ge, the reason i like this stock and i've been in this stock for some time now, is they have finally decided what they are. that is morphing themselves back into what they should be, an industrial company. they shed a lot of assets. and now they're clicking and i think in the next couple of years we'll see the kind of growth that nelson peltz sees out there. they're talking about this being a $50 stock. i'm in for the ride with him and i'm getting 3%. how's that? >> giddy up. >> don't be jelly, grasso.

let's move to kinder morgan. they planned to slash dividend. this as kinder morgan has fallen more than 40% in the last month alone. could there be more pain to come? larry macdonald joins us with more. larry, good to have you with us. the dividend went from 51 cents to 12.5 cents paid quarterly. is this going to be enough given what you're sighing in kinder morgan bonds? >> i think so. this will give the bonds a nice bounce here. what's happening kbbehind the scenes is you've got the bondholders versus the stockholders. the bondholders have been lobbying the cfo, cut the dividend. the bondholders won this time. >> in terms of your thoughts on kinder morgan when you've taken apart debt to equity, what's your sense about this company? is it just buying itself a little bit of time. what happens ultimately in your

view? >> we don't cover kinder morgan, per se. but i look at it from a credit perspective. i look at it in the market in terms if it's a big name. and the equity components, think of a pie. a lot of investors right now at home have been chasing yield. so it's important. you look at the company as a pie. in other words, 40% to 42% of the company is equity and 60% is debt. if you're at home looking at finance, you're missing 60% of the story. but net net net, that's not a stress situation. so it's an investment credit that's crossing over potentially losing its investment grade name. but it's not stressed. >> let me ask you something. if you're a debt investor, would you rather see something cut the dividend like they did here? obviously you'd rather see them save as much money as you can. in this announcement, can you expect them to possibly have to

cut again? or do you think they've done enough? >> a lot of times, karen, companies that are in these situations bleed out the truth. they fight, fight, fight the different investors out there, the people behind the scenes lobbying the cfo and the ceo. so chances are in these cases a lot of times there's another dividend cut. we don't know what's going to happen here. but in these situations typically there's a bleedout of the truth. >> what happens with chesapeake? i mean, chesapeake and kinder morgan are in the same situation where the stock continues to go lower. the bonds are trading terribly at this point. whap are their options? what does your analysis lead you to? >> you know, credit has been leading equities. credit has been leading equities all year especially in the energy space. especially in the case of chesapeake, the bonds have been weak for a long period of time. but once again, in this case

you've got real stress. so if you think of the pie, 80% to 85% of the pie is debt. and the equity component is 10% to 15%. so it's a highly lempbled situation. the bondholders are driving the bust. they're going to tell -- they're going to have higher demands. that's going to put more issue on equity. it's a very stressed situation. the type of things that happen on the way to default. >> larry, thank you. >> thanks. >> larry mcdonald. would anybody buy these bonds? >> no. i mean, i don't think yet. you're in a place also -- in kmi's case, they announced a budget that was going to free up a lot of free cash flow. that was before they announced this dividend cut. basically to hold on. this is about holding onto an investment grade rating. that's what they have to do to be able to make these bonds -- you have probably seen them start to gap as larry said. that's what this comes down to.

but ultimately, where's the price of oil? back to our $20. and that's where you have to trade this. >> stock and the bond. how do you work that out? would you not touch either? >> if i had to do something it would be kinder morgan bonds. there is a lot of equity there. there is stuff they could do. they could issue equity at this price. right? it would be terrible. they wouldn't want to do it. but they could do it. and that would help the capital structure a lot. i don't think kinder morgan ends up going. the bonds -- you'll get part. coming up, apple releasing a new battery pack for the iphone but does the process stack up? plus is chipotle's brand in trouble as the health problems continue to build? we go to new york for a "fast money" report. right after this. pipes are.

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welcome back to "fast money." wynn resorts up by about 10.5% on 200,000 shares of after-hours volume. the company announced that steve wynn had bought about 1 million-plus shares of wynn resorts between december 4th and december 8th. following these purchases, mr. wynn now directly or indirectly

owns over 11 million shares. at least steve wynn making a bet on his stock here. remember those shares down by close to around 60% here year to date. so a big downside move year to date. it looks like steve wynn may be trying to capitalize on that down trading. >> pete najarian, you buy along with steve wynn? >> i think you do. we've seen this in the past when he stepped up. there was march call buying a couple of weeks ago in this thing. we were all looking at exactly where it was. i think you're not late now even if you start to move -- >> up 10%? >> you're piggybacking on the guy already. >> different situation. this is a guy who's inside and buying his own stock. >> still averaging for himself. >> could be. but he also sold up in the 150s before too. >> 80 students are sick after eating at chipotle. will it ruin their brand? we sent our own tim seymour out on the streets of new york to

find out. >> i'm tim seymour for "fast money" here in times square trying to figure out just how many people are avoiding chipotle. do you eat at chipotle? >> i absolutely do. >> why is that? >> fresh ingredients. >> what do you know about their burritos? >> it's healthy. >> we're asking what you know about the recent health scare that may be affecting the company? >> i asked them is everything clear when i walked in there. she didn't know what i was talking about. >> what have you heard about chipotle lately? >> i've heard it's tainted in nine states. >> that's disturbing to me. >> based on this news, would you walk in there and buy a burrito? >> of course not. >> no. >> yes. >> i'm actually going to wait and watch so much headlines. >> not right now. >> i would. i would eat a chipotle burrito. >> so we're going to go eat one right now. would you do that? >> i would do that. i think it's safe. i hope it's safe.

>> it's amazing that there were still people out there who say it doesn't bother me. >> yeah. what's interesting, i thought that there was a lot of brand loyalty though. people said you know what, there were people that didn't know about the news and said i'm not going back. >> you've got small children. would you feed them chipotle? >> no. and what's shocking is how many people didn't know about the news. >> maybe that's why sales wouldn't be affected. >> that's more shocking to me. that's probably a bullish call on it. but i wouldn't buy the stock and i wouldn't buy the meal. i need some clarity. >> remember, steve -- >> he's a germaphobe. >> he is. a fairly normal person concerned about germs but not a germaphobe, karen? >> no, i actually wouldn't. i'm not die hard enough. >> they said they don't know where the source is yet. >> right. they have no idea. >> although it sounds to me the more i've read and followed this whole thing as time's gone on is

supplier issues. that's something and concerning. but when you hear the people talking and tim's talking to various people, people say i eat there because it's healthy. that fat content -- >> i just happen to have a burrito here. surprise. it's been sitting back here. >> who's going to eat that? >> so i put it out to you, who wants to eat this burrito? >> tim. >> you want to take a bite? >> give me that thing. i'm not afraid. give it to mikey, he likes everything. remember that life commercial? i'll eat this. where did this come from? didn't come from boston did it? >> my desk. >> came from your desk. >> it was before the whole scare. >> it's only been sitting there a couple days. but otherwise it's fresh. and we'll see if tim makes it to the show tomorrow. >> outstanding, huh? >> i like it. i'm going to finish this. >> all yours.

nobody else here wants it. >> john wants it. still ahead, apple out with a new product to beef up the battery life of its iphone. but did it miss the mark again? all the details after the break. plus we'll explain why traders are betting on a major boom in brazil. it's a special options action after this break. you're watching "fast money" on cnbc, first in business worldwide. it's hard to find time to keep up on my shows.

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there's no way to predict that. for all the confidence you need. td ameritrade. you got this. welcome back to "fast money." apple playing catch-up with the launch of a smart battery pack that doubles the life of the phone for $99. but the reviews are mixed. have they lost their design mojo? we're joined with the aforementioned case. >> it's that bump. >> what backlash have you been hearing about the bump? >> apple surprised us. they came out with a new product that hadn't leaked beforehand. although it leaked about an hour before. but it's a very straightforward product. it's a battery case. it adds another 100% charge to the phone. but it has this -- you may have

seen the bump. there is a bump which is obviously the battery which is causing a lot of consternation online. some people are saying it looks like my iphone has swallowed my ipod. or maybe it's pregnant and going to give birth to an iphone mini. so it's a matter of personal preference. if you like this kind of design over, say, a mofi which is more sort of plastic and modular. but it does have this innovative way of getting in and out. it's rubblized. you bend it and you slide her out. it's a tight fit and comes right out. >> we were playing around with this. we thought maybe it has a bump so you can bend back that top more easily. >> exactly. the overall design doesn't work if it was thick up top as well. so you can kind of see what they were going for with this but it's really like a matter of do you prefer it to a sleeker design >> isn't it better? because you have the charging adapter. you don't need the second

charger for the mofi. >> and it's the only case that does that. it's the only case you can charge both the phone and the case at the same time through a lightning connector. so that is an advantage as well. there's one other design flaw that i haven't mentioned until now which is when you have the iphone in here, this case will extend the difference between your port and sort of where it comes out. so if you use certain brands of headphones that come in on an "l" connector, it won't work. and one of those is beats. it won't work. you'll need an adapter. >> so are you going to indict apple for its lack of design mojo these days given this and the apple watch? >> it's really a matter of personal preference whether you like this or not. i'd say this isn't a win. but if you're going to get a battery case for a phone, you're going to make some kind of compromise. whether you're thickening the whole thing.

what i see this more as is sort of a mission by apple that the battery on the iphone 6 and the 6s just isn't good enough. they haven't come out and said that, but think about it. they've come out with a case for the 6 but not the 6 plus. >> do we know if margins are related to this? >> in terms of the margins, i do know that the accessory market is roughly a $25 billion market worldwide. so there's certainly a market consideration here. apple can just, like, hey. this is an easy thing to build. pst a battery. let's get a piece of this market. i would say the mofis of the world is probably worried this is out now. >> thank you. and thanks for bringing that. as a shareholder are you concerned they're going into the accessory route before they had sort of said we're not going to do all these extraneous things? we'll let the other people deal with those accessories. >> no. i've got to think that's a decent margin product. i think. so it's all right. >> all right. let's move on here. emerging market stocks have been

steadily declining all year. but some are betting on a turn arno turnaround in one country. >> ewz one of the most active wefr seen. 300,000 contracts traded. where we are seeing all that activity is the calls. 200,000 call contracts traded in 150,000 of those were the result of a single trade. and that was basically this 23/25 ratio call spread. they were buying the 23 strike calls, selling the 25 strike calls. they were paying about 42 cents to do that trade. somebody who had already made some bullish bets decided to commit more capital was rolling down the higher strike. they're obviously betting that ewz is going to have a rebound here. they committed an additional 3 million bucks to the trade today betting the ewz will be up by this coming june, up 10%. >> you think so? >> i think a lot of bad news, ultimately we need to see change there. i'm not sure it's going to happen overnight. look what's happening in

argentina and venezuela. people are imputing that on brazil. >> for more on options action on friday. coming up next, the final trade. stay tuned.

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it is time for the final trade. let's go around the horn. tim seymour. >> yahoo. whether it's taxable, it's a tax free, whether it's with or without, there's some of the parts it works for you now or any situation. >> i was watching you on the afternoon show as i always do and one of the analysts on the show -- >> where are you going with this? >> pitches deckers. and deckers i still own the name. i still think it's an m&a candidate. >> so buy altria. >> but their line of sneakers, no one realized they own hoka. it's the full rollout this year. >> all right. karen? >> i still like anthem. it has nothing to do with an mlp, nothing to do with energy. not that those things can't be

great. they can. but i think it's a nice valuation. >> pete? >> amazon's taking over the world. amazon is going higher. $500 is spent more as a prime. giddy up. >> i'm back tomorrow. "mad money" with jim cramer starts now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. my job is 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 save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. sometimes you have to play the hand you've been dealt. you just can't throw it back. i can't give up. you have to look at the cards,