Skip to main content

tv   Fast Money  CNBC  March 7, 2017 5:00pm-6:01pm EST

2:00 pm
buffett. >> i have a feeling that story will live another day. >> to talk about margaritaville. okay. thank you. we'll have much more on this in a moment. the market told you it will be fewer people covered because hos went down and insurance companies might be okay. >> appreciate seeing you tomorrow. that does it for closing bell. "fast money" begins right now. this is "fast money." if you are investing in money, the second bester investment this year. it certainly didn't pact way today. >> i'm kind of confused. i think there's a lot that needs to be fleshed out. i own anthem. i think that anthem will probably be fine. i think that this stock has been helped by a lot of general things that helped stocks so far in this rally. corporate tax reform. i think for the cvss of the
2:01 pm
world, that is less clear. drug pricing and that chain is a little less clear. i wouldn't be buying it right now. and biotech, i'm afraid of that. i think he's tweeting a lot about that. i think there's more to come. even if it is just headline pressure on that. that it probably won't be addressed on granularity. >> the american health care act. >> so drug pricing, that's a separate issue at the very moment. although it is still getting assaulted on the tweet front by donald trump with no specificity. in materials of the actual american health care act, we've seen, it seeps to be more and poetsed to medicaid. there's a presumption they'll be hit hard her. >> look at the hospitals. if you get to the insurance companies, united health care is a name that i own and a name i like for a couple reasons.
2:02 pm
one, i think they are growing globally. i think they've carved out a nice moat around their business. i think they've outperformed at the expense of other things. noith with you so much uncertainty. this is a two or three phase process. i think that's part of problem. i think we're going through, at leaf until june. i think until this legislative process. bottom line, i think they have to get this through. some portion gets through. >> the biggest problem right now in the headlines is that conservative republicans are not backing it. when you think about it, assuming no democrats vote for the repeal and replace, then only lose two republican senators and 22 congress people. so they're getting it from both sides here. so he, paul ryan just said it. this will go on for a while and i would expect volatility. >> tim brought up, it did make the all time high. the day of the election i believe the stock was trading about 135, 140.
2:03 pm
here's a stock that's probably rallied 20% since the election. i would ask the following questions. is the news today, taking some money off the table with united health, by the roop, sell the news. 15 times forward earnings, i think unh is cheap. but you might have to take a powder here. >> it's been a relative victory. relative play to play. it has outtorperformed. >> let's unpack it. it is not and poetsed to medicaid. and they don't operate in these exchanges. >> the people that pay for health care are paying a lot of money to have unh of. >> and potentially, if there are insurance satisfies across state lines, that could open up markets across state lines. >> and they win. has the run up over the last two months been in anticipation of what we're talking about?
2:04 pm
>> no. i think it has been somewhat, maybe. but also, all the things helped other stocks have helped the health care stocks. they are big taxpayers. i think that's a reasonable part as well. i'm not sure how much of is it just their thinking. we'll have a better plan. >> so your position, you're-stick with anthem. >> i am. i don't like having new legislation. i don't really understand and being long. i would rather kind of, i don't like the sell it to pay taxes on it. they are at all time highs. that's a big tax hit. but i think about doing that. >> that could happen. they have to get this done first. >> that's the other part of this conversation. if as you mentioned already, republicans are expressing some concerns about this. what does this mean for the ability to pass tax reform in a
2:05 pm
timely fashion. >> they have to get this done first. >> they have to get something done. that's the thing. if they can't do that. and we've been talking about it for a while. the fiscal stimulus, the deregulation and then the tax reform. they'll be really hard things. it is my belief. that the market has run ahead of that. so the health care thing is very important. >> and that is why i think some form of this bill gets done. and there's no political statement in this for me. more importantly, i think this bill has to get done. the first stage to start with aca reform. and then ultimately, it is about getting to tax reform. they want to get it done soon. i don't know but i think that's what people are focused on. >> is it too early because, this is phase one for one. these are broad outlines. is it too early to sell the
2:06 pm
news? >> it is not the time to go in and buy it. there's plenty of under certainty here. his point was maybe this was an alternative that looked pretty good. now it is gone. i've got no problem with it. >> i was looking at the same thing. the xlv is potentially, and i say potential because you don't know until later. you talk about a potential for massive double top. >> you just got ahead of our next guest. >> i'm a little ahead of you. >> and if you didn't just run over it. >> another thing as well. >> the president was talking about we'll get fair drug pricing. so all the pharmaceuticals. look what it didn't hurt. a nail like johnson and squlaunls has diversified their business. almost as much consumer brands. if you're looking for a safe haven. >> and also in the camp of making the drug pricing more
2:07 pm
transparent. >> i can't disagree more. but i'm going to save it for after. >> after what? >> don't bottle it up. let it out. >> any time you have transparency, those who have benefited from the opacity, it has gotten to be bad for them. >> let's stick with health care here. as these guys, they basically gave the whole thing away. our next guest has to tune it out. he said you can buy no matter what happens on the hill. let's go off the charts. >> health care has been a revelation. the second best performing group. year to date, trailing technology. and that's in a reflationary world. now up 8.7% year to date.
2:08 pm
it is that relative strength in the face of the tweets and the face of the politics. we look at the biotech. y i think we get a more decisive break out in biotech which is up year the date. why do we get amgen? 9% of the ibb. you've broken out from a multiyear trading range. amgen mehelps that breakout. merck. it continues. you don't have to go too far off the beaten path. and finally, another big boy here. humana. you talk about unh earlier. very nice performer. big multi-year breakout. three great large cap stocks
2:09 pm
that you can buy to play the strength in health care. >> i think we invite him over. come on over. >> one of the things we're talking about is a lot of uncertainty. not just from the democrats. when i look at the xlv, and i put a bearish trade on this. i think all of these things as they go up against those upper resistance levels, i think they fail here. we're not going on get any sort of clarity any time soon. so i don't think you want to buy breakouts. the other thing. you didn't show them the xlv. it has that down trend, the up trends. >> it's not all rain bows and unicorns. this is clearly, does it feel
2:10 pm
like a heavy market is the we've thrown everything we can at health care and it is still second best performing sector. i think the price speaks louder. this has not been a strong play. every single one of them. you talk about these nicely formed channels. >> i guess it depends on your definition. it is not a failure to me. >> that's very fair. if you look at the way it traded today on a day that was supposed to be one of the days we were waiting for. i thought it was okay. i think the biggeral gory, shark one of the few places where there's been eps growth. >> how does it look to you? it is only, what? six or seven from a two-week
2:11 pm
high? >> on that ibb, you're talking about the big multiyear base of sport. you've had a 35, 40% pull back already. you've been moving sideways. he have one has been moving off the scent. still plenty. you get a deice issive move. you're changing the narrative overnight. that's what you're going to get. the stock looks great. >> the dog that runs through water. >> maybe a haiku in the break. >> president trump is trying to do a lot of things. but appeal, repeal obamacare. number one on the list. this whole drug pricing thing, it makes for great headlines. i'm with you. >> you think it won't happen. until no. >> it is the easiest one to get
2:12 pm
done. >> if you think about the biggest lobby in washington, it's drugs. >> that's his thing. drain the swamp of will. >> repeal and replace was number one. i get drain the swamp. >> how many times would you talk to him? >> the lobby i get. let's rein in drug pricing. everyone in congress -- >> people who have disease that's these companies are on. >> it's not good. >> i think back to the ibb. this is ultimate market proxy. a beta multiple to the s&p. relative to what other stocks have done since the lows, the higher highs it's, the technicals going higher. i think it is pretty come petty. >> i see failures in august right above 300.
2:13 pm
i see one in september. i see an inability right after the next november. and then i see it 3% or 4% below that. >> where is the market going. >> i just don't think. >> does it influence how you look at it? >> let's look at large caps for instance. some of them have very similar balance sheets/dividends. >> wouldn't you much rather? >> you just made it up. >> who is kenny stabler? >> i have no idea the snake. >> the snake. oakland. >> thank you, rich ross.
2:14 pm
coming up, another brutal day for snap. and you won't believe which group investors are running for the exits. we've got those details. plus, one trader is taking a page from oracle's play book. making a big boat a warren buffett holding. and the one stock that steve says is the ultimate turn-around story. he'll give us the fast pitch after this. e*trade's powerful trading tools, give you access to in-depth analysis, and a team of experienced traders
2:15 pm
ready to help if you need it. it's like having the power of a trading floor, wherever you are. it's your trade. e*trade at bp's cooper river plant, employees take safety personally - down to each piece of equipment, so they can protect their teammates and the surrounding wetlands, too. because safety is never being satisfied. and always working to be better. dearthere's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced. our senses awake. our hearts racing as one. i know this is sudden, but they say...if you love something set it free. see you around, giulia
2:16 pm
2:17 pm
ceo caterpillar speaking out for the first time since the company has been under investigation. for more, let's go to the conference in las vegas. jane? >> reporter: hey, melissa, there's no player bigger here at this expo than caterpillar of but the main question was about this federal investigation, as investigators went into three caterpillar offices last week including the headquarters. involve a lawsuit alleging maybe u.s. revenues were filtered overcease to avoid taxes. >> we were surprised by the actions of last week. we have been cooperating with authorities and we are cooperating and we look forward
2:18 pm
to a resolution of these matters. we're caterpillar. we've been in business for almost 100 years. we're an honorable company. we live by a code of conduct is that a set of core values. if something appears to violate that codering with take appropriate actions. >> shares have bounced back and actually after hours, they started to take a dive. now they're up pass media briefing ended. now the shareholder lawsuits have started. nim company touting all kinds of new products. caterpillar makes a lot of equipment in the u.s. and is a net exporter. i asked about a border tax. he gave a diplomatic answer. >> we are in favor, of course, of pro growth policy that's would facilitate free trade but also growth and manufacture in the u.s. >> reporter: the ceo said there are some signs offer growth but the outlook looks uncertain.
2:19 pm
and i spoke to jpmorgan. the strong dollar is starting to have an effect, especially in brazil where they are finding themselves with less spending power in the u.s. >> thank you very much, at the con expo. i go to tim. >> if you look at where caterpillar has been deriving their strength, a lot from brazil, a lot from asia. this is not the value. there are a lot of shorts out there. a lot of people saying this stock well overdone. and frankly based upon where we are in the cycle, until we get fiscal policy, i would be in favor of it. >> so we had the feds last week. we have short sellers. we have a stronger u.s. dollar hurting sales. is there a reason to be in cat? >> i don't believe so. >> it is interesting that the stock -- >> any other company, the stock would be down 15, in my opinion
2:20 pm
of. >> or is it just market stupidity? >> fiscal stimulus trump, they better win in a may know way. or 22 times forward earnings. this stock is extraordinarily expensive. >> has the global company. deer gets more benefit. other point is, here's a company whose earnings are down 865 a share down the about $3 expected. the satisfies have been cut in half. so you're looking at 30 times. if there is ever this global reflationary. it will grow into it very quickly. >> but tim might be able to better answer. aren't there ways to play the exact same set of spraenlts have a better risk reward? >> infrastructure, commodity growth. worldwide growth. >> i've been very much in favor of a reflationary trade. i look at the rails. moving around these materials.
2:21 pm
i think some of the metals look very interesting. you don't have to play caterpillar. >> and you're short uri. a great company. just make sure i say that. it is. >> we have a lot of things to get done. >> are you on board with that? >> and may be she disagrees. if she is short for all the right reasons, almost by definition, you have to have sell off. >> it is entirely u.s. cent ric. going high he can to keep one the consumer landscape. could it back fire? first in business worldwide. in the meantime, here's what else is coming. >> here's what's happening with
2:22 pm
shares of snap. and we'll tell you why it could get a lot worse. plus, tim is serving up the pitch, telling us the story of the year. the name is when "fast money" returns. ♪ oh! the things you say ♪ ♪ oh♪
2:23 pm
♪ ♪ ♪ you're unbelievab♪e ♪ you're unbelievab♪e
2:24 pm
just imagine if all were constantly thinking. always on the lookout for patterns and connections to make everything work better. i call it the internet of everything, but it's really the internet of everyday life. ♪ the partnership between dell technologies and sap helps make the promise
2:25 pm
of the internet of things a reality for our customers. we know how powerful live data can be. we use sap at dell to run everything from finance to procurement to travel expenses. and that's the same kind of live insight we can now start offering to all of our customers. and as we get better information, better insights, it can improve virtually every aspect of society and the economy. that's the opportunity of our generation. the next industrial revolution. that's why dell technologies runs live with sap.
2:26 pm
your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™ liberty mutual insurance
2:27 pm
welcome back to "fast money." here's what's coming up in the second half of the show. one trader is wetti er ibetting million bucks. we'll tell if you you should get in on that buffett band wagon. and later, tim is stepping up to the plate. can he convince the other traders to buy? he'll deliver his fast pitch. first is the money moon already over for snap before it even got
2:28 pm
started? itly the bharkt plenty of fanfare. but now it has vanished. >> the stock took a nose dye over the last two days declining 20%. that's after gaining 59% during its first two days of trading. feeling whip lash? you're not alone. it is impossible to know who is selling and why and there's little in the way of news. but speaking with those familiar we found some clues. according to those with knowledge of snap's trading, retail and institutional investors both helped drive it higher. by day two it was largely the retail investors who brought it up to $21 a share. that signalled to a lot of professional fund managers that it was time to sell and then mom and pop investors followed. it has likely been led by retail investors based on certain
2:29 pm
brokers handling most of the trades and several hedge fund managers i spoke with say they have sold out their stakes. has the common phenomenon. by day four, recent ipos, such as facebook, twitter, and a alibaba all traded lower. all except facebook were still higher after they had their ipo price. the rule is that it takes a few quarters of earnings for investors to really understand a company's intrinsic value. this means we have a long way to go before it is over. >> today's short selling started with the market. there will be many ways to express scepticism about snap. >> yes. beyond just selling the stock. >> interesting that all the snap action happens on the same day that facebook hit its all time
2:30 pm
high going back in may of 2012. is that a coincidence? do you think that snap's woes underscores the value of facebook? >> i don't believe that. we've talked about facebook winning in this whole thing. it is for quite some time of i think facebook continuals higher. i think it is reasonable. the other stock on the verge of an all time high is alphabet. i think both those win and i think there's a very good chance that snap revisit that's $17 dollar level. >> if you're allocated shares, $17. and you're going to be buying in the aftermarket and your time is years. you weren't buying it probably above $dwi25.
2:31 pm
the first report that they have, that will be the big one. facebook declined 11% the day after the first report. twitter was down 24%. these are very immature companies. >> they're immature because of the data. a lot of this is really a very smooth or it needs to be an orchestrated process. i think the deal was executed perfectly as far as i can tell with the singled cat and the way they teed it up. if you're look for a social media company with the same access, it's google. you have the digital space. this is social media. this is everything else with a core business. i would stay with google. >> if you're still toemempted o buy, there is something you need to know. waving a red flag when it comes
2:32 pm
to snap. great to have you with us. a lot of people were outraged that snap can't give the shareholders any voting rights. this is first time this has ever happened with an ipo. why is it that much more egregious than other tech coils like a google or a facebook have structures that give sha shareholders a paltry .1 of a vote. >> a really good question. when companies go to, let's start with when companies come to the public markets to raise money for the public, public shareholders are entitled the certain basic rights and protections. and that includes the ability to vote that's this proportion to the size of their holdings. what snap is doing, giving public shareholders no vote no, say in the company. that's why we at the council of
2:33 pm
institutional investors, a lot of our members think that the index providers should say no to no vote shares. no vote share companies. >> let me ask you something. we've seen an adversarial relationship between management and shareholders, which i think this is a governance issue. a disaster. does it matter if the company is doing well? can't they get away with it for a while? >> they might get away with it for a while but no company is infallible. snap, its founders seem to be a dynamic leadership. but at some point, the business will go south. when that happens, shareholders will have no ability to hold management accountable. those directors will be hand picked by management. it is really shutting the
2:34 pm
shareholders out for the long term. other long term investors who are heavily indexed and they can't sell. they need to make sure that they have an ability to influence management five, ten, 15 years down road. >> so i understand on the index front it stands to reason that i should know i won't have a vote. it is not like they were hiding it. it doesn't seem like they're doing anything wrong in materials of the individual buying the stock of. >> no one is doing anything wrong. it is a high risk boat a very short term track record. >> all right. we'll leave it there. thank you. >> thank you very much for having me. karen, you're strong on governance in terms of looking for that in a copy of will.
2:35 pm
>> right. it is a disaster. >> even if you were to a paltry vote, it doesn't really give you any power anyway. so that's sort of a red herring. i'm curious with companies that have this issue, whether they trade, whether they perform at a discount. >> yes. >> you don't see it with any of the others. >> when google suddenly brought in the new cfo who is a wall street veteran. they break the pieces up them say this part will be really opaque but this will be very transparent. the valuation went higher. >> so you think for companies and don't, that have this. i think it is coincident with
2:36 pm
mark zuckerberg of. >> going back to him --? it expanded once they did it. >> that was the definition. not a vote. >> right. >> back to facebook. facebook, when it was much, much lower. they spent $22 billion to buy what's app and i'm not sure if they put to it a shareholder vote. it passed. >> i'm saying they had to put it out. >> expanding this, there are many quoims dual class structures where the common share holder does not have a strong voting presence or the others. viacom is a prime example. >> maybe they don't want to be bullied. say what you want. apple, i think they got bullied.
2:37 pm
maybe snap is saying, we set it up so we don't have to go with the activist investors. >> would you think twice about a dual structure company? >> that's more karen's bailey wick. >> i think a 26 years owed management team does deserve the bebl if it of doubt of listen. you're in control. >> they could use a smith or a sandberg, right? >> a publicly traded company. >>stead. one trader is betting more than a million. we'll give you the hint. it is one of buffett's top holdings. plus, the one stop that could be a home run for investors. will the other traders agree should it is tim's time to shine.
2:38 pm
with e*trade you see things your way. you have access to the right information at the right moment. and when you filter out the noise, it's easy to turn your vision into action. it's your trade. e*trade.
2:39 pm
companies across the state are york sgrowing the economy,otion. with the help of the lowest taxes in decades,
2:40 pm
a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en route. and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov time for the fast pitch. we have one of our traders pitch something they think is worth the buy. and the others will tell us whether they are buying or selling. what are you pitching? >> i'm pitching viacom. just because snooky and j wow are no long order mtv, there's a
2:41 pm
lot here. viacom has had a big move. back knows this company. if you talk to people in the company. the invigoration of the five or six major brands. it is comedy central, nickelodeon. you name it. people are fired up. letting brad gray go. that was controversial. this is the big change that's already happening. the expenses are coming down. we know how high the chief executives were being paid at this company. but it is down. comps are down across the boards. i think it makes a ton of sense for these guys. finally the valuation is very attractive to the peers even after the move. think about paramount probably valued around $4 billion. it has been losing a ton of dough over the last few years, this is just the media networks which probably puts it 40 to 50%
2:42 pm
from some of the cheapest guys in the sector. so again this is the stock in the 80s. i traveled all the way down to the low 30s. that means nothing except the rerngs there. the company is fired up. it is all about content. and they have some of the choicest brands in media. there you go. buy this thing. >> i think jersey shore here has a question. >> i'm not jersey shore. >> he said it, it makes it right? it is fake news. fake news. >> with that said, so recently, the headline of the new york post. apple potentially going in to get themselves into hollywood. do you think the recent run-up was on the back of that? and if so, are we linked to this dance? >> it is all about changes are so long in taking place that finally i think a lot of people don't appreciate how major they are. and look at this chart.
2:43 pm
it test you what's going on. we kind of hit these levels. we are starting to run into, not only were they in a sense to make some changes but you got to where the consolidation of the sector. when some of that fell out was you saw the stocks bottom out. you've seen this big move higher. there could be sconsolidation. >> i have a question. we were talking about dual share stocks and this is one case. you said the valuation was attractive relative to peers should it trade at a discount relative to peers because of the structure. >> no question about it. i think we're still, the family is still dominating the story. we've cleaned out some legacy execs, they were too aligned with it. and i think that's part of where the upside is. they'll to have bring it
2:44 pm
forward. i think you should continue to watch that. it is to your benefit. i think it will close. >> all right. we vote now. what do you say? >> i did it in haiku form. tim seymour's fast pitch. via clom get you done. i'm a yes buyer. >> very good. >> let's do it in haiku. i would say that not only do you have the cost. i think you'll see some accommodations. so they're up there. >> wow! >> i agree. if you step back ask look how far down it came, that's more relevant to me. i like the story. i think they're trying to do the right things. >> what would they call this in baseball?
2:45 pm
>> a home run. >> hitting for the cycle, i think. >> a home run for sure. >> one of buffett's most beloved stocks is about to get a big boost. plus, mcdonald is about to have mobile orderingful will it help or hurt the stock?
2:46 pm
during the lexus command performance sales event, experience our most thrilling models ever. including the exhilarating is, gs and rc coupe. ♪ experience amazing.
2:47 pm
2:48 pm
look at the gold miners getting drilled this week. >> ahh! >> just pennies away from turning negative for the year. they had been struggling to make gains this year in the face of the stronger dollar in the increased march rate like. >> i've been wrong. i thought they would continue the rise. we saw the gold miners index went all the way to 26. i thought straight line would continue but it has not. here we are, 22. 22 is a 50% correction of that move. i'll say this as well. it is to a large extent.
2:49 pm
it makes comments about a strong dollar, is not in our best interests or it is killing us. i think he wants a bigger dollar policy. whether he realizes the ramifications or not and i think it will manifest itself in his language. and i think the gold will rally again. it is painful here after a pretty precipitous sell-off. i think you the want to buy it here. >> what do you do with goad? >> i look at gold and i think it is ultimate, what it's responding to is probably interest rates. i think if you look at the gold miners, they've never been run better. i think some of then are worth owning. people tend to buy. you don't want to do that. i don't think you have to buy gold here of. >> all right. let's talk about mcdonald's. jumping on the band wagon. are they going high-tech or ordering a pay system? back the very latest on this
2:50 pm
story. >> hi. are you hungry? i'm just wondering. so when the world's largest the restaurant chain, mcdonald's says they are going to roll out mobile order and pay to the masses while also testing the delivery, that says industry growth is about digital. online or on your phone. so how fast is this? they say digital orders grew 18% last year and now accounts for nearly $2 billion food service visits. with 50% of digital orders picking up the evening meal. consumers twice as likely to order on a deal when there's a cum honor discount involved. it is not without its problems. starbucks recently in their reeblt quarter, they said sales were hurt because of the success of mobile order and pay. the problem was on the back end. bottle necks in the kitchen.
2:51 pm
they were being overwhelmed by orders and had long lines and very frustrated customers. similar frustrating lines at chipotle as well. for mcdonald's, maybe they're a little late to the game. the ceo said they are only now rolling out their mobile ordering service because they had to make sure that everything on the service end was toward roll out end to end. he says they have a lot of catching up to do. for instance, panera and dominos are the big win where's it comes to the fast food digital revolution. the share prices on the year. >> all right. thank you. >> so can we say that mcdonald satisfies late to the game? >> yes. >> i guess my point would be that i think mcdonald's has been late to document things other fast food places have done. they've been less healthy. i think these changing and they are impressive. the breakfast stuff. i think it is broadening their
2:52 pm
bases. i eat mcdonald's for breakfast. >> how often? i feel like this is a confession. >> once every couple weeks. and their pricing power on breakfast is gas as the deli down road. >> could you make the argument that they're really not late. >> what does it matter? >> we think about how many stores they have in the u.s. relative to dominos. when you think about somebody says i want big mac or a $5 pizza. i don't think it is the same thing. i think they have opportunity on blow it out of the water. so i think they're in the first pitch of the first inning and i don't think it matters how far ahead dominos is. >> i think people don't say, forget it. i already have this other app. i'm not going to order mcdonald's. but getting it right on the service end. >> late to the party is good here. to be clear, i think the fact they've let other people evolve their platt snowstorms meanwhile
2:53 pm
mcdonald's has a brand loyalty that they can exploit. and they're growing. >> clearly i'm not the hippest person of. >> are you fixated on the $5 pizza? >> he is also out. look temperature shirt. >> it is the slim cut. >> there are a lot of problems with mcdonald's. but other than the mcdonald's, it is not like you go and wait. why is this essential in. >> if you go on mcdonald's for lunch, there's always a line. >> got to go to the gym. >> shifting gears -- >> you can do some push-ups. coca-cola is thinking 5% in the past year. the beverage schan about to make a big comeback. what did you see? >> so coca-cola is the big
2:54 pm
buffett name. >> so the volume was ten types that. it was largely in one trade where a trader appeared to be rolling out of some april calls. selling 13,000. they looked to be buying. of the june froorks cause. the stock was trading about $42 here. we're doing a lot of charts so let's keep doing it. look at these gaps. there's some stuff going on. down here at 42, it seems like good strike. but here's a name. up above 1%. we see some yielders acting much, much better than coca-cola here versus the s&p up 6.5%. that's kind of disappointing. what are the reasons you might to look defined your risk in a stock. it is bouncing off against it.
2:55 pm
you don't want to be long. they had a lot of, they have three or four months to go. they're only risking about a dollar. break even on the upside. maybe it gets its swerve back on. but it makes a lot of sense to define your risk because of that underperformance. >> given that this is coca-cola, you go back to 2012. this has big moves to the upside followed by a significant move to the down side. and it is over the last four or five years. i think we're at the tail end of one of those down side moves. $40 has been support for a number of months. and i think it makes the next climb through that $47 level. >> all right. thanks for that. for more, check out options action on friday. coming up, kramer is talking to
2:56 pm
the ceo to see if this could last. plus, the ceo of thor industries is here. you won't want to miss this. next on "mad money." up next, health care taking hit but there's one name that will get you done. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
2:57 pm
we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy.
2:58 pm
and you thought we just made the gas. ♪ energy lives here. ♪ oh! the things you say ♪ ♪ oh♪ ♪ ♪ ♪ you're unbelievab♪e ♪ you're unbelievab♪e
2:59 pm
a few minutes ago, tim was admiring guy's physique. he is an everyday iron man. that's why he's wearing the athletic fit shirt. that's the only shirt that he could fit into. >> there he goes. >> i thought he was photo shopped when i saw that the first time. for real. >> look at that. >> look at that. he wears that shirt so well. >> at a boy. >> he'll be watching squawk box with david tepper tomorrow. i'll see you on squawk tomorrow. >> final trade tip. >> viacom. >> you saw the fast pitch.
3:00 pm
>> i want to stay long but i'm afraid. >> dan. >> xlv. >> iron man. >> no. j and j will get it done. >> we'll see you tomorrow at 5:00. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you some money. my job not just to entertain but educate and teach you. call me at 1800-743-cnbc or tweet me @jimcramer. we came into today not expecting much from the session and we got

89 Views

info Stream Only

Uploaded by TV Archive on