tv Fast Money CNBC September 7, 2017 5:00pm-6:00pm EDT
5:00 pm
welcome back equifax just rooted a massive breach potentially affecti inin4 of the u.s. population >> gets to the core of what equifax is, which is a data company. not like target, which is selling stuff. >> down 5.5% that will be a big story we'll continue cover as "fast money" starts now >> "fast money" starts now live from the nasdaq market side overlooking times square i'm melissa lee. your traders are -- tonight on fast, irma is barrelling toward florida with jose right behind it we'll bring you the latest details on the stocks move iingh most plus, the dollar and rates are in a race to the bottom. it could be good news for one sector in the market and the man who sounded the alarm on media stocks in may. craig moffett will join us
5:01 pm
that's where we want to start with media mayhem that took wall street by surprise today it began with what we are calling disney's tragic kingdom. ceo bob iger saying something sent down the stock midday and sent the stock into a frenzy julia has the details. >> well, melissa, it was xhe comments bob as well as comcast executives first, disney shares took a hit. >> i think you have to look at the year as being roughly in line with eps basis, what we delivered in fiscal '16. >> now, last year, disney's earnings were $5.72 per share. 16 cents lower than consensus for this year according to tomp
5:02 pm
reuters. he attributed this year's shortfall to a number of reasons including growth in nba rights cost lack of a big "star wars" film as well as cost relating to buying more bam tech he also noted impact from hurricane irma there have been cancellations in orlando and the cancellation of three cruise sz and shortening of some other cruises. then comments from a comcast executive sent shares of cnbc's parent company down even more. you see shares were down more than 6%. he warned about competition as well as harvey impacting the third quarter. the company expects to lose between 100,000 and 150,000 video subscribers in q3 though it does still expect to hit financial targets. why the losses comcast says it's the most competitive quarter in recent history. both traditional players have slashed prices and new digital bundles have launch frd the
5:03 pm
likes of hulu and youtube, so a hot area to watch over the course f f the rest of this year >> sure is thank you. in los angeles drill down on comcast in just a moment with craig, but starting with disney. some of you have owned it. they are struggling in the new media world. if they are, who can thrive? tim? >> certainly, they are going to be the most diversified and comcast has made big investments and can make that claim. as we've just heard from studio perspective, the comps are to h tough. on the b cable side, it's getting worse and worse and it really just gets to me what's the multiple on the x company? if you're old school, it's a $120 stock if you're new school, 15, 6, it's a $105 stock. >> what would the comps be for disney it seems it's a business model in transition. so how do you value it >> exactly
5:04 pm
i don't know these stories have been out there. for him to say roughly in line, it's overdone. to the downside. to the downside, i think it's overdone this level of $90 has been support going back to 2015 in 2016, down 86 tim points out the parks they're 17 17 billion against 24 billion. this is this is undervaluing it's parks, too. i think you've got to wi the stock. t trz. >> the multiples ratcheted down. why should they not be part of that that was my argument i'll continue to make that argument my pushback to bob iger, who we all sort of love, where was he a month ago? they just reported third quarter
5:05 pm
on august 9th. to me, the same comments could have been 25 days ago. be that as it may, i think the right mull principle was probably closer to 14. which will now include marvel and "star wars" franchises which could make it really an attractive bundle? premium bundle of exact. >> i own it lower than these levels and have been riding it i like what he's done. i like his company all of the aspects of it where were they when it came to streaming that it took this long for them to get to this point. iger a year or two ago should have been one of those companies look iing at somebody like netfx
5:06 pm
or why did this bam tech take that long to make this acquisition? that puts the time frame that much further for disney to be b in that direct to the consumer >> netflix has stolen a lot of people's lunch to say disney was asleep at the switch, not saying that's fair look what they're doing in studio a lot of their competition in other parts of the business model. i'm surprised netflix just to change a little bit. netflix was flat today on a day we learned that "star wars" was going to be part of this bundle. isn't this really telling the story of where netflix is going to have to work harder i'm surprised netflix -- >> my flash back would be disney has content. with this, are they going to stream right away? where he, they have the espn espn app, all the other stuff. this time frame wouldn't be as bad. >> it wasn't too long ago that
5:07 pm
we said people who own the content, people who produce the content, those have the upper hand does this hold true? >> i believe that -- >> doesn't feel like it right now. >> you're right. but i think when it all shakes out, i think content providers will come out on top here. tim makes a good point on netflix. it should have been a better day. >> worse day >> because i think news here is that disney saying you know what, we're going give you more detail if you had any chance of getting "star wars," you're not marvel, you're not >> is it tomorrow or the detail of what disney is going to do. right. so, it's 2019. i think that's why you saw the reaction >> netflix has been cure ating its own entertainment. disney thought they were going to be supplying all these different players. they didn't realize they were going start with their own content library. that was the problem, where they were asleep at the switch, but they still, people are going to the movies, not as much anymore,
5:08 pm
but they're still going to disney films >> and your point about the content was king, content's less king it's worth less when advertisers are playing less, so you're at a place here where people are starting to value it differently. of course everybody got taken down on this look at viacom, it's a content play and that is telling you where they are and disney is the king and the high quality content. >> you stick with it >> i'm in it >> as julie mentioned, check out shares of the distributors, com katrin cast feeling the pain. back in june, craig moffett downgraded com he joins us here for ore great to see you >> good to be back so, so many questions, but first of all, blaming in part the hurricanes, does that make sense
5:09 pm
at all to you? >> well, look. the hurricane is a real thing. >> sure. >> you can't dismiss, it's not just that some homes were literally wiped off the map, right? this is a very real and tangible impact on subscribers. but it's also, you haven't been able to do installs for some time you haven't been able to get your texts evacuated, so sure, that affects the numbers that's not what people were alarmed by today what they were alarmed by was this is the first real acknowledgment that the business model itself is under real stress that the video business model is starting to respond to the youtube tv launched 14 new markets this quarter that they're back to giving away free apple tvs for a subscription that sells it 2 above program costs and fund menially, the program is changing and the piece isn't
5:10 pm
going to be a robust part of the story anymore. >> one of the things that emerged is that a new internet streaming entrance are offering packages giving them often negative margins >> it's a terrible thing who wins that race at the bottom in terms of cost >> arguably, i guess there's always, you can always lose more money, but they've already raced to zero margins. they started at zero, so when directv now introduced it or at&t introduced its first directv now package, our u calculation at the time was that the gross margin on that product was about a dollar and the net margin was about a negative three. that compare to a satellite tv customer that made $65 margins this is the old comment that goes way, way back to digital pennies trying to replace analog dollars. the math don't work, right
5:11 pm
>> does this force comcast's hand to do a deal? >> no. so step back for a second. comcast is primarily on the video side of the business, on the distribution on the pipe side broad band company, not a media compan company. i've been saying on your show for 15 years, cable companies are not media companies, they're infrastructure providers when we downgraded, it wasn't because we said look, video subs are going to go negative i'm not entirely sure the market is going to care we found out today the market really does care so, in some way, i'm surprised people were surprise d, but you needed to find out does the market care but -- >> if the market does care or doesn't care, i look at this as zero sum game. broad band how much are they going to compensate everything is streaming. that has to grow >> the answer is they're going to be fine because they can charge more.
5:12 pm
and they've got pricing power in brond band when we downgraded the stocks, it wasn't because they were going to make their numbers. therefore, they'll have to raise prices faster and are expectation is the market will ultimately put a lower multiple on stocks that are exercising pricing power than stocks that are growing units. it's not a calamity. they're i still going to make their numbers. you're likely to see some revaluation at a lower multiple. >> so, down 6 and a quarter. how much have we seen? >> it's not going to happen in one day. it's going to take time for the noorkt digest this but in fact, when we downgraded the stocks, what we said at the time was it will be ak tracktive to get back in once the market has fully digested and expectation that video isn't going to grow and it's going to shrink once that's in the stocks, and you know that the market has appropriately priced it, i think you want to own comcast again.
5:13 pm
it's a little too early to think that after four hours of market digestion it's fully done. but eventually, it will be >> what's your view of what that should be? >> modest. it's a little complicated. but a number of things happen as you shift from video to broad band margins go up that were entire multiples. capital intensity goes down that were entire multiples, growth rates come down and that warrants lower multip principles and the net net, you probably warrant about a quarter of a term lower it's not dramatic. it's a modest impact on the business but again, the reason these are such good businesses is because they have good pricing power businesses that have latent pricing power tend to trade at higher multiples than people using their pricing power. you'd rather have it in your hip
5:14 pm
pocket and not have to use it. >> craig, great to see you thanks for coming by how would you trade comcast h e here >> interesting craig and iger on the same day both guys have been very important to pricing on the way down iger spoke a couple of times there have been big days for the sector interest iing same day i think craig's point is that comcast probably, the multiple is what it comes down to, but you have less growth and higher margins. i think the other dynamic is you are seeing broad band become the immediamedium of choice you see these satellite guys who can't make it through traditional ways i think that pricing power for the consumer may be as good as it's going to get now. >> comcast stopped on a dime lower the day today. 38.21. i agree, you don't want to rush in, but it might be a good spo >> viacom, we've been faighting
5:15 pm
this for a big week. goldman sachs' conference. viacom, listen, i think if you like disney at close to 15 times, you got to like viacom here at less than seven. it's trading like it's going out of business. i get that turn around isn't as well conceived as it should be, but it's turning around. >> i own both. disney and come cast not a great day for me but come cast, that was great. also, short-term, huge option paper. massive. came in on the lows. buying upside, the 40 strike calls. i like what i'm sighing there. i think maybe for now, at least a basing area for comcast >> last five years, this stock has not kis pointed. coming up, irma reeking havoc and heading straight for florida. we'll get the latest plus, one of the hottest stocks of the year, ferrari getting crushed today and one trader on
5:16 pm
this desk says it has further to fall and later, the dollar hitting its lowest level since january of 2015. top strategist tells us how he's cashing in on this move. much more right after this ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.
5:19 pm
welcome back as hurricane irma looms closer and with jose just behind it, massive evacuations are getting underway causing a demand on car rentals. phil >> some are complaining look, if i go to the rental car counter, whether at miami international or somewhere else in southern florida, there are no vehicles to rent. that happens in a situation like this and for hertz and avis, well, for their investors, this is good news. nobody wants to see a hurricane go through, but that surge in demand, that he haavy demand, wt they saw last week in the houston area after harvey, that's creating an improvement in terms of the dynamics for the business at least in the short-term also today, goldman sachs out with a note going slightly more positive on the rental car companies. in fact, improving rating from
5:20 pm
neutral cautious saying overall, we see a sustained improvement in pricing for tighter fleets, amid recovery related demand and improvement in used vehicle prices we believe the positive impacts will likely carry over into the first quarter of 2018. remember, after hurricane harvey, the estimates coming in for how many vehicles might be totalled in that area are as high as a half million vehicles. that doesn't mean that a half million people are going to go out and rent a vehicle, but as vehicles are are being worked on, as companies are bringing in contractors or others to do work in that area, they're going to need replacement vehicle, some will be turning to the rental car companies and with regards to used car pricing, remember this used car prices have been moving higher you're going to see a tighter supply that's going to drive it even higher and the rental car companies typically start to turn over their fleets in the fall, which means higher
5:21 pm
residual values as they're se selling these into the used market >> good timing thank you. just last week, we were talking about avis and steve grasso made a bold call he said that it was a double and then the next he said it was at least a double. >> i think the whole -- >> on top of it. no, eventually, a double on a double then a triple but if you have to look at this, the head wind for these car companies has been used car pricing. so, rental numbers are going to increase trz and used car prices are going to go higher from here >> so you're going to see massive upgrades in the space. goldman flirted with it today. you start to see real bears that have been out here on this show start to move their price targets up, 45% short interest >> why is demand going to pick up when it's been falling apart? hurricanes aside, i get what's going on everybody gets that. but i'm looking at two or three
5:22 pm
months past hurricane season back to the same secular trends against these cars they firm up why do they go higher? >> how about used car prices >> how about them? >> higher or lowlower? >> even in the face of fact, you think they're going lower? because they're going higher >> what's the trend, steve >> higher right now. >> why >> because the supply, first of all, the lee tsunami, people had bad match. they were going did it off of 3.5 going to 5 million not 47 million used cars so they were calling for 20 to 50% slide in used car prices rental car fleets have stabilized from a snam tsunami on the way down >> during the great recession, used car prices came in 120% the recession before that, they
5:23 pm
came in 5% they're not coming -- >> 17 million u u autos a year >> we thought we went well past that >> i factored in 17 million. >> ford is giving away cars to anyone walking into their showrooms now and that's a problem. >> factor it in. these car prices, the hertz and car were priced off of a 20 to 50% sell off >> steve, this is -- >> does a hurricane meet 40% short interest >> it's not about the hurricane. >> we already had a pop. my question is hertz in the same category right now as i vis or not? >> yes you have icahn rumors there not nund mentally soundest car trz. >> tim >> hurricane >> yes >> went from from 20 to 36 without a hurricane. this is not about a hurricane, my friend. it's not about a hurricane >> this was about these guys showing better >> i couldn't help >> seriously
5:24 pm
the bottom line is i'd love to know why we're at a place where rental car demand is increasing. it's not about used car prices >> all right >> so, i don't know what analysts are allowed to do these days goldman was cautious on the space. i don't know if you can go to the triple dog dare and just raise it to a buy. maybe they go incrementals of one. steve makes a good point analysts have to start ratcheting up numbers. it's not like they have some crazy high price targets, so i get what steve is saying i understand what tim is saying. i still think there are tremendous secular head wipds. one story quickly. because i like stories >> is it person? >> it's about what's going on. out of the the blue, i get a call over the weekend from who wig der chevrolet. i took my tahoe there 15 years ago. they want to buy more car.
5:25 pm
>> your 15-year-old chevy tahoe? >> they said do you still have the car, i said, yes >> still have the fuzzy dice sheep skins? >> interesting >> the seat covers >> there you go. >> bio tech on fire. there is one big reason the run might not be over. we've got a special report you're watching "fast money" on cnbc here's what else is coming up on fast >> be very, very quiet i'm hundred dollting >> and stocks are sporting some of the highest dividends in 20 years. we have got the names. plus, the dollar is getting b imit t srtbeheta ofig move lower. we'll explain why and now to profit when "fast money" returns.
5:31 pm
welcome back we start off with a dollar sinking to its lowest level in more than two and a half years >> hey, the dollar is becoming the big market story of 2017 as a recovering european economy has traders durping dollars and buying euros the euro jumping above 120 today, the first time since january of 2015. earlier today, mario draghi trieded to jawbone it lower, but traders did not take the bait. still, up 7% this year against the greenback threatening exporters that rely on a weaker currency barclays writes it puts pressure on inflation the weaker dollar though is a boone for u.s. multinationals that do business overseas and to make their products more attractive the dollar is down over 10% this year but it's also a symbol of economic strength and stability. that's why recent weakness is rubbing some traders the wrong
5:32 pm
way. some of that ainanxiety is bein since the day after the u.s. election back to you. >> thank you very much we did see a tough day once again for the financials off the back of the yield curve going more inverted. i'm going to pose a question for you. i posed this you maybe two or three times over the past two weeks. why aren't financials now, why do they have to be so tied closely to the yield curve when you make a great case it doesn't trade on that. >> you're right. but the correlation right now obviously with the ten year is absolutely spot on they're buying bonds, utilities, going all these safe havens. ten years, two and a half percent. the interesting thing i did see
5:33 pm
happening today, bank of america, huge call buying. i also saw it in wells fargo people have the feeling that at some point, maybe in the correlation, but maybe the ten year starts to move back up. >> you have a case where the euro is rallying, it's rallying on the fact ha the ecb is coming away from its bond buying. these rates are going up in europe, period european banks are so much more tethered and have performed better you want to protect yourself, but european financials are the trade on draghi today and i think u.s. financials are people are not understanding those that benefit from lower rates and those that need them to go higher >> the same thing about a not so stealth rally. gdx was a $21 item, now, it's 25.5 and it feels like it's headed back to levels we saw in
5:34 pm
january, so i think gold is working here because of the weakness in the dollar a lot of other factors as well and i got to tell you, north korea, probably. a little bit when you see what's moving, it makes sense to me. gold, gld, safe haven, that's where people seem to want to go. >> on the yields real quick, you wonder if we're going to round trip the election. the night of the election, i don't remember exactly, but ten-year yields went down to 1.72% or so. obviously, we're light years away pr that, but you wonder if it's going to round trip from november >> let's bring in tony. >> right there how much farther do you think yields will go lower >> they're about there because i'm with him literally, nobody on the planet thought the dollar was going to
5:35 pm
be weak because our interest rates were going up. europe was engaged in quantitative easing. not about rating it's about global growth it's when you have global economic deacceleration. it's opposite day. we have a synchronized global recovery a weak dollar. we have reacceleration in the u.s. with a hurricane aside. that is the head winds have become tail winds, yet i've not seen many up their targets for earnings, margins or s&p so, once we get through a little corrective period here, i think that is, i think that is the investment >> so, which is a sector that will see the most revisions because of a weak dollar >> technology should be because they have most of their, it's the secretary of state tor with the most sales overseas. that i believe is reflected to some degree, so i'm neutral in technology and i continue to say i will give you a way overweight
5:36 pm
technology, pare it back and i've been so wrong on the banks over the last month u and a half i was on the phone with a great portfolio manager today. we're trying to figure out why the bond yield is where it is and i'm going to break the cardinal rule of television and say i don't know like you have a bond market where the fundamentals are seeing the opposite to me. the hurricanes are an inflati inflationary move. try to buy materials to build a house. that's going to be interesting how about the labor without immigration to go and build the house, so you've got a real situation of economic stimulus dmically, international scene is better pmis are good. for the first time this cycle, i can find all the capital spending surveys are at cycle highs or historic highs. capital expenditure survey, the philly fed capitalists what if we have an okay consumer
5:37 pm
good consumer because nbincomes are are going up and you have capital spending and global growth that's why what tim said is perfect. >> have you been long these tech companies pear back. >> what about energy >> i want to be -- >> people -- >> i pick them up. that's been wrong. >> that inverse correlation seems to be on again, off again. the slow growth trade in technology, if you want growth, you have to go there the slow growth trade is bond surrogate. as guy said earlier, utilities, telecom, staples, anybody with a yield is jumping up. i'm not, if you look at the last six months or so, you've been bottoming out that relative ratio of the progrowth which is financials, industrials, materials, energy.
5:38 pm
why yield rs here, other than the perception of so much like we have already. >> you like financials here? >> i've been long. so, in order, it's been financials, industrials, materials, especially, i'd split materials and industrials. >> tony, great to see you. >> thank you >> how do you like what tony like sns sfwl i love tony. my reason has been valuation you've asked the question, what's the recent valuation. we had rich ross here yesterday. talked about exxon being a one day event. there's a good chance they might have bottomed out for a short period of time if you want to be somewhere, xom
5:39 pm
will get you done. >> and in carter's appearance, who's also on the top three of guests >> so the tony >> guilty. top three guests aside from that, he made a compelling case against industrials. you've got boeing or -- massive, massive runs slightly broken stories. the autos, some of the operators. think about what's going on. think about places you're getting growth and you have repolice station i talk u about emerging markets a lot. ems outperformed the s&p brazil cuts 100 a day. they've been blowing the cover off the ball a lot of this is a resource trade, a global trade. i think ushtd look at them both. >> still ahead, the dividend of the biggest names of the marke ,
5:40 pm
may be in trouble. plus, check out shares of equifax sinking as a hacking scandal is rocking the company much more right after this [car tires screech] [bell rings] there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor
5:41 pm
or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supplement plan that works for you. there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp. like any of these types of plans, they let you apply whenever you want. there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or
5:42 pm
hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. and her new mobile wedding business.tte at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and-ta-dah-paid twice as fast for free. visit quickbooks-dot-com.
5:43 pm
welcome back with stocks hovering near record highs, some of the most widely recognized names are sporting their highest dividends ins. dom? >> well, melissa, fans of dividend paying stocks got decent news today with verizon announcing a boost to its quarterly dividend payment now, it's not much, just over a penny per share per quarter. but it represents the 11th straight year that verizon has boosted its quarterly payment. so that hefty near 5% dividend hasn't made up for the price loss yet some big and well-known widely held companies those happen to be among the biggest stocks in the s&p 500 overall. fellow dow component general electric, yielding nearly 4% now, it's near its highest level since early 2010 as we emerge from the financial crisis.
5:44 pm
there's also department store operator macy's yielding nearly 7% now amidst that 40% drop year to date for them near the highest levels since the financial crisis, now, traders and investors are trying to handicap how safe some of those are relative to others and whether it's worth the risk to get that heftier paycheck or perhaps wait things out. back to you. >> thanks x dom chu. so, let's play dividend or dare. here we love games. macy's going to start with that one solid dif dend or a dare to buy the stock. guy. i don't think the dividend is solid. the real estate play for macy's makes the stock at 21.5 or $22 compelling if you're looking p for a stock in terms of risk reward, i think
5:45 pm
macy's will work here's another one general electric at a two-year low. jpmorgan saying it is worse than we thought reiterated its underweight >> i think the turn around, the problem for general electric is the dividends there is because the reason it's dropped so significantly. the problem i have with xwrks e is they don't seem to have a direction of how they need to go forward. that's what bothers me most. i expect the new ceo to say here's what we're going to do, e eliminate, they have not done that >> so, dividend or dare. >> out with it >> dare. >> dare. it might go. might be cut >> yes, absolutely i think it's more than mike. >> which name would you go >> i think mace issy's for me has been the real estate play. so it trades at 6.6 billion. the brand is probably worth 20 billion, so i think you take a stab, but i think the dividend is safe and a worthy entry point. these names have bounced
5:46 pm
already. they're up big from the lows, but i think it's worth the purchase >> i'm long macy's for two reasons. because i think the stock is cheap at these levels and you got drivers there. gm is the dividend off the board for 200. >> go for it what is, is it dividend or dare >> it's dividend gm to me is valuation. >> some are betting that some of these names are about to see their dividends drop mike is at the plasma to break it down. we look to the markets to see what they expect because stocks may dividends an options do not. if we look out one year, the options market is forecasting about 34% cut for verizon. as much as 25% for ge, although that poll implied dividend wide enough to drive a truck through and macy's 39%
5:47 pm
basically, the idea here is, they had negative cash flow. that's going to be a problem if you're paying big dividends. trz they might have to be engaged in asset sales to make their payments >> thanks for that, mike for more, check out the full show, tomorrow, 5:30 p.m still ahead, bio tech is on tear, but some big names may teth bs. bargainuy afr is stay tunes i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
5:48 pm
5:53 pm
today saying sentiment in bio tech is back to levels we haven't seen since the end of 2015 when the whole sector starting getting crushed on hillary clinton tweets, martin skrhkreli with price gouging. they're trading within 10 to 15% of the all time highs in 2015. at the same time, he points out that pe multiples for big bio techs are close do their all time trough. you can see that here going back to 2002. they have satarted to pick up since 2016 and they've crossed over to go below the pe multiples for pharma and medical devices. he points out that that should return earnings estimates for big biotechs have been rising, so even if the stocks are going up the multiples are staying low. so he points to sentiment. all coming together to indicate these have more room to run.
5:54 pm
beyond that, we've been having a lolt of good news in terms of regula tear data >> is there a sense of the tour investor that has been in the ivb and bio tech in general? >> that's the hope of all of the specialists. people are saying there needs to be pain being felt missing some of the gains and maybe then the generalists will come back there needs to be rotation out of other sector, probably in the early stages of the cycle if it's happening >> you've been in bio tech for a long time. >> matter of fact, the halftime day, we were talking about the massive option paper that was in there swrus today. i mean massive huge paper coming into gilead. so not only just the reaction of them finally getting off and making that acquisition, but i agree with you i think we expect to see more m
5:55 pm
a and a. the sentiment on the street is loving what they're seeing they did it. i think that catalyst alone will feed into celgene and biogen and amg amgen. >> i have acouple of questions then >> more than one >> more than one would you rathers and sort of the build upon each other. the first is would you rather ivb or xpi big cap bio tech >> seaburg thing >> more mid cap names. >> i think it's breakout to the upside i would understand why people would like the xpi probably more beta >> good answer answer the question, always a good absolutely. he's the next question >> it's building sx health care in general or big, big pharma or o big bio tech >> big pharma or bio tech.
5:56 pm
>> you're safer in big pharma. less volatile than ivb that would be my first blush answer to you. >> same question to you. >> ivb no question to me. some of the things meg is talking about. gilead pays 2.55 people thought they were -- it's not just them. absolutely, ivb. >> you know they're the same the reality is that big pharma has become bio tech companies. >> willie and merck as the same as celgene >> i tell you what, in many ways f you look at bristol meyer or merck, they have huge similars that are involved. so they're almost the same trade now in my opinion. >> okay. une, tnkou >>p xtfinal trades
5:57 pm
when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain
5:58 pm
and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. looking for a hotel that fits... whoooo. ...your budget? tripadvisor now searches over... ...200 sites to find you the... ...hotel you want at the lowest price. grazi, gino! find a price that fits. tripadvisor.
5:59 pm
6:00 pm
for ecb, you have bend >> steve >> square. it's up 90%. buy. >> one of our great producers, bryian price, leaving us. go to columbia university, congratulations. >> thanks for watching see you tomorrow at 5:00 "mad money" starts now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always 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 like to make friends, my goal is to make you money. so call me or, of course, tweet me at jim cramer anybody who has a high school diploma has almost certainly taken a course in
118 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on