>> exactly the all country world index, if you bought that as a dollar-based investor, it's been a pretty consistent run. but you don't want to look at the best performers as a guide >> it's not consistent over time michael, we have to go that does it for "closing bell." "fast monefas"fast money" start. now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," the state of massachusetts issuing a major warning for bitcoin, telling investors the rally could end in disaster secretary of the commonwealth william galvin, the man behind the bitcoin warning, will be here plus it's been a record breaking year for the markets. if you're worried things could slow down come 2018, don't worry. one of the biggest bulls on wall street has his eye on one sector in particular. pete here has been

unstoppable with his pitches all year can he knock it out of the park once again we'll find out first, it's been a stellar year for the markets dow, s&p, and nasdaq on pace for their best performance since 2013 check out wynn, up nearly 100% boeing, d.r. horton, paypal, up 90%. caterpillar, best buy, facebook all surging. these are a few of the stocks that have been smashing record after record all year. the question is simple tonight do you stick with these high fliers heading into the new year >> there are specific names that stand out. wynn and best buy are two names i've loved for a long time i continue to like them. best buy is more appealing to me now that wynn. wynn has had an absolutely incredible run, 100% gains that's stock that steve wynn was in there and telling you, this is too cheap, i'm buying my own stock back now he's got 12 million shares of his own stock that's a guy who is committed

and showed us the way. but is the valuation a little high if there's any missteps in macau, that stock will tumble down i'm not in it right now and i'm not chafing sing it right now. i'm waiting for an opportunity for a pullback if they've got growth in the right areas, and in particular like a boeing where you have all that cash coming in every quarter, they remain very interesting to me. >> there's not a valuation on there. i agree on wynn. best buy, always cheap, is less cheap but has had a great run. you can make an argument on what we saw on christmas. this caterpillar valuation is really difficult the d.r. horton move is mostly about that four-star acquisition. it cycles high on new home sales. these guys have a lot of wind at their backs. boeing ultimately is the valuation that i have the easiest time biting into right now. that erj announced deal, whether they take down that regional jet business, it shows who's driving the global aircraft business

boeing is at the head of the game with enormous free cash flow >> given the synchronized global growth, copper at 3 1/2 year high, all signs pointing to growth around the world. >> you can look at the world in 2005 and '06, when we were building mines to nowhere and this was a real big call look, i think everything you just said is going on. but i think caterpillar got the benefit of the doubt of people not believing and i think a lot of that is in the price. >> you think the chart looks amazing, awesome >> let's be fair, all of these stocks are big winners all of the charts look amazing the trend is your friend until it ends, pete, you know that, being a trader in the pits there's nothing that says those trends are exhausted the themes supporting these big trades, you're talking about the consumer in best buy in d.h. horton, you're talking

about the homebuilders the big cyclicals, caterpillar, boeing synchronized growth, low interest rates, low volatility these stocks are a great place to start >> they've had a great run, but that doesn't do anybody any good tomorrow >> at what point -- >> when did you see the chart breaking down. that's the big thing with charts >> take paypal, a stock that hasn't been below its 50-day moving average until the past months these stocks haven't even stopped going up, let alone start to go down before we talk about exhaustion, let's go sideways. these are strong trending stocks, not on a stuck-specific basis but on a macro level as well, which are the drivers that keep these trends going. >> you would recommend almost every stock we've talked about tonight, dan >> all these have fundamental

stories, they're did i nefferen stories. think whole desk is convinced this is a secular shift going on in payments, not just mobile payments and peer to peer but also online sales. e-commerce exploding that was a trend in 2016 paypal is up 90%, okay it has stalled it did have a 10% pullback here. at what point do you get back in that's a trend that's going to continue to go forward here is a company that's going to grow sales and earnings 20% a year, trading at 30 times. at some point we want to see it check back, more of a 10%. then you would say, okay, it's properly discounted. real quickly, on best buy, okay, so here's one where less than 10% of their $40 billion in sales this year are online so when you think about this stock, at an all-time high right now, it really doesn't matter. it's trading well below market multiple >> it always does. >> understood. but if you think they have a quarter of amazon's sales, and we were talking last night, who

is going to be buying target or this or that or whatever, what guys will go for this barbell approach, amazon and whole foods, you say to yourself, my goodness, here is best buy with $40 billion in electronics sales, that would be a fabulous partner for some sort of online e-tailor this stock needs to come back, you can't just buy it at all time highs >> are you saying it could be a target of amazon >> not amazon. >> but anyone online >> we talked about this last night, i think amazon will have a hard time buying another bricks and mortar retail within a year of whole foods. >> how about the fact that amazon is finally starting to see more competition in the online space i know they own the space right now. they're the big behemoth but everybody is sort of chipping away at it, whether you talk about walmart, you want to talk about target, you want to talk about best buy. they're all competing. one of the things best buy did, the new ceo made all kinds of different changes, one of which was, look, we're going to

continue to compete online they put off a lot of cash they do a store within a store model. a lot of people scoffed at that earlier on >> it's better for the consumer. >> you're not going to buy a tv without having seen it you're going to go in there. what these guys have worked on with samsung and big manufacturers, they have best buy lines. you can find a cheaper line but it may not be there. i agree with pete, these guys, they decided what the game was, they went to war, and these guys are competing on price you're not going to go and order this stuff online. you'll go to best buy if you really want electronics. >> the list that we put up at the top of the show, are there winners this year that you would favor? >> we talked about semiconductors >> and micron is the top performer. >> i think the fever has broken at micron. the fact that they actually -- i know you disagree. >> he's laughing at me >> the stock is up 5%, gave it all back, now it's lower than where it was i think you're seeing a lot of

charts like that in semiconductors >> in the short term, we have seen this very aggressive rotation vis-à-vis buying energy stocks, buying beaten down retail names and selling to a degree you're outperforming semis, they're down 6% over the last month in contrast to energy up almost 8% fair point but that's just one month. think about what we've done over the course of a year let's talk once again about the macro. it's hard to see gdp picking up. these are very cyclical companies. how is the economy going to pick up cyclical names like semiconductors, it doesn't make sense. the charts are there buy them on the pullback this is a pause, not a breakdown. >> i agree if you think of nvidia and gaming stocks, people believe these guys created the new wheel, whatever you want to say, they've found magic in a bottle that no one else can touch i think a lot of that is priced in >> our next guest says now that the tax plan is done, expect wall street to get bulk up,

jonathan golub joins us live from florida, lucky you, jonathan >> hi there, how's the weather in new york? >> frigid, trust me. we have been having this debate on whether tax has been priced in for so long, then companies will come out, the stock goes higher obviously not everything is priced in. you actually think there's more of that to come? >> i do. you don't yet have the details from the companies and you're not going to begin to get that until the upcoming earnings season which doesn't hit until the end of january or early february the estimates are all going to rise across the board, mostly because the details aren't yet being put forth by companies, and the analysts who cover them. when we see that, the stocks will go higher broadly >> 3,000 is your target. does that incorporate what you think will be the impact from tax or no? >> it does about a week ago, we moved both

our market target up, but also our expectations for eps and if i'm right, we're going to have a double digit increase in earnings and about half of that is going to come from underlying organic growth and half of it will be due to one-time tax-related issues. >> where do you see the biggest discrepancy in terms of where stocks are trading and the lack of tax impact that's being priced in? in other words, where could we see the most upside surprise sector-wise from revisions higher for tax >> if you're just looking at taxes alone, and i don't think that's the right way to look at it, but it's going to be businesses that are more domestically oriented. we've talked about this in the past it could be retailers or banks or utilities >> i guess the question implied in my question, jonathan, in a lot of these sectors that you're naming, we've seen a huge run in the past month retail, for instance, is the

perfect example. >> correct >> are we actually going to see that move higher once revisions come in? are we price that ing that in a? could the revisions have an even bigger impact on those stocks? >> yeah, i mean, i think one area that's gotten beaten up because of this tax issue is the tax sector, and rightfully so. but it's trading to inexpensive right now, its pe multiples are only a tad higher than the broad market yet they respepresent much, much faster growth. the tax effects, which is more negative for the tax sector, represents a buying opportunity for a lot of investors to get in who perhaps have been scared off by their higher valuations i think it's more complicated. if you're just looking at the earnings, the earnings are really simple. dough me the domestic companies are the big winners. from a stock price perspective, you have to look at the underlying fundamentals. i agree with some of the comments we heard before

financials are going to be an area that i know it's a reasonable consensus view, but i think financials are going to have a terrific year that's an area that is a big winner tech should be a big winner, again. but taxes will be a headwind i think it's beyond just the simplicity of just plain taxes alone. >> jonathan, it's tim. mind the sunscreen down there, by the way cynics might say strategists can play around with the multiple. i can do the math on yours, you're somewhere south of a 20-times multiple on the s&p where would you have been if this tax deal hadn't come through? >> let's look at multiples the way that most investors do, which is on a forward basis. we were looking at, before any tax plan, we had about an 18 1/4 multiple on stocks for every dollar you earned, you're willing to pay $18 or so to buy the company if earnings go up as much as i expect, the multiple gets cheaper. so i think that you're probably,

on the actually earnings, you're probably paying something like 17 forward this tax plan makes the market less expensive than it would have been otherwise. >> jonathan, great to see you, thank you. >> good to see you >> jonathan golub. let's delve deeper into what jonathan was talking about with technology faang stocks, apple will go to 12.3% from 25.5% this is on top of the ability to repatriate overseas profits at a lower rate so why is tech being punished? >> doesn't feel like a heck of a tailwind coming. i think it's getting punished, frankly, because of the rotation we see in the marketplace. they had a nice run, suddenly we got a different rotation in the marketplace. i continue to think part of the health of the market, why we've seen the market go where it's gone, is it's not just faang it's broader, and every sector

other than energy for the most part has participated in this. jonathan said financials, but he didn't necessarily say big cap banks or regionals if you look at the year to date, the regionals have definitely trailed big ime. they should be, because of the tax, they should be the winner, you would think. and this is there could be m&a with banks what do we do today, dan >> can i say one thing, mel, before that? >> yes, you may. >> sentiment is the biggest issue as it relates to faang when you look at all those stocks, when you look at where analysts are, there's 45 buys, five holds, and no sells when you look at their out performance relative to the market, up 30, 40, 50% year to date to me it may not have much to do with how people feel about taxes or this or that or whatever. i think it has a lot to do with the fact that we can't get any more bullish the fact that the stock market hasn't had more than 3% selloff peak to trough in over a year, is setting up for a correction that will be bought most likely unless there's some sort of external event

>> contain now ask my question and get an answer? >> yes >> what did you do today >> i'm trimming stuff going into year end, trimming some retail, trimming some energy, trimming stuff. i think sentiment is too ran-away here. i think while the world is a very good place, we're not pricing in any risk, i believe all the stuff i can buy back cheaper. taking 10 to 20% off the table is a good thing. >> do you think we're setting up for a correction soon? >> in the broader market, this is somebody who's actually wearing a jacket to defend himself. >> true. >> you look great. >> look, i'm all fired up. i think volatility tends to pick up in the new year as people reposition their portfolios on the margin, new money comes in all of that being said, i keep coming back to technology. you talk about what happened last year. we saw a very similar type of rotation where tech had mid-teens declines that could have been the worst sale this year, turns into the best sector this year. they're lying in the weeds here, facebook flat over the last five

months, now you're entering the strongest period of seasonality, you have to buy these stocks while you can, not when you have to coming up, the state of massachusetts warns the bitcoin boom could end in disaster william galvin will be here to tell us what has him so nervous plus which stocks are worth your money and tesla shares tanking again today, the stock falling back into bear market territory on concerns over model reproduction are the fears overblown? we've got the details. much more "fast money" after this

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find your awesome, and change the way you wifi. welcome back to "fast money. tesla model 3 deliveries will disappoint again the firm slashing its model 3 predictions to 5,000 cars from 15,000, sending shares back into bear market territory, this a day after ceo elon musk said he was, quote, dying to make a pickup truck does tesla have an overpromise, underdeliver issue he used to do that and the stock would go up. he did it today and it didn't do anything >> it's down 20% from the highs in september again, i think that there was a lot of kind of news, a lot of

positive sentiment in the stock at that point. now people are digesting what it looks like for 2018. in a few weeks we'll know what model 3 deliveries were like in the past quarter at the end of the day, i suspect investors kind of take it in stride just like the end of last year, the 2017 story for the model 3, now 2018 story for the model 3 too. no matter what he tweets about this truck or that trailer or this or that or whatever, those are 19 a'19 and '20 stories. >> i'm at a point where i don't even think it matters on the deliveries if you want to price it for other stuff, i get that, i think it's a special company but how are we going to value it they say 25% gross margin on the model 3 when they don't have anywhere near the scale to amortize fixed costs that their competitors do and their competitors aren't even getting 25%. this is my big gripe if you're long tesla, you're long it for not the things i'm

talking about now. you're talking about a trillion dollar opportunity that you want to be on board for, i get it >> the margin target is pushed out by a couple of, three-quarters longer term, that doesn't really matter, does it >> what do we have for a pe for nvidia we're looking at for the growth and the categories they happen to be in one of the categories, autonomous tesla is a software company that also masquerades as an energy company that also has a hardware component. when you say what should we value this at, it's funny to me it gets valued just off the cars, because it's all car analysts, presently, other than maybe gene munster >> software companies that are up, you know, salesforce, they have 60, 70, 80% gross margins you're talking about all these fixed costs. it won't be a software company if they don't make cars. >> do you think they'll be a disrupter like amazon? >> they're an amazing company

with an amazing leader >> what's the other element? it's cloud a lot of us -- [ simultaneous speaking -- doing $100 billion in retail with no margin -- >> so -- >> and by the way, this analyst had an acela 250, a hold at 250, 250 seems to be the price target drop a decimal and the stock is down 60 cents. >> let's take a step back from the valuation, talk about market cap, talking about paying for the future, buying into a dream, this is basically nothing, you're buying nothing. tesla, we're talking about $50 billion. you're not only investing in something that is an actual product, a nice car, but the greatest showman on earth, elon musk >> we can't compare this to bitcoin and say everybody buying bitcoin should buy tesla >> you've got some of the smartest guys in silicon valley,

mark andriesen is one of them. he says ten years ago this will be the tech company ofville icon valley not that he's necessarily exact right, but he's calling it a tech company >> are you long tesla? >> i have certain positions in bonds in that. >> oh, you do now. got it ahead, rich ross says three stocks are trading at a discount and could be on the verge of of a major breakout i'm melissa lee. you're watching cnbc, first in business worldwide meantime here is what else is coming up on "fast." >> mom, dad, it's evil, don't touch it >> that's what the state of massachusetts said about apple in the early '80s. now they've got a similar warning for bitcoin. we've got the details. plus pete's had the hot hand going undefeated with his fast pitches. can his winning streak continue with one stock that's already up 50% this year? find out when "fast money" returns.

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welcome back to "fast money. bitcoin just keeps surging but a number of regulators could be gathering up to crack down on the cryptocurrency bob pisani is at the nyse with more >> reporter: hi, melissa the list of those warning about the perils of cryptocurrency is long and getting longer. finra told investors to be wary of cryptocurrency stock purchases from aggressive cold callers, even if the claims sound plausible, particularly if the recommended stocks are very low placed

sec's chairman has said, the sec has not approved any initial coin offerings or etfs holding cryptocurrencies none and the cftc admits they don't regulate these spot or cash markets for cryptocurrencies and that some of these currency platforms may be missing critical systems safeguards and other customer protection systems and may be vulnerable to hacks and thefts of virtual currency and indeed have been. william galvin, secretary of the commonwealth of massachusetts, says because trading on the cboe gives bitcoin an air of legitimacy, investors must be aware of the inherent risks of investing in bitcoin and the fraudulent schemes associated with it. is bitcoin completely unregulated? you know, not entirely exchanges are licensed by states coinbase, for example, is licensed by the state of new york, and subject to state laws that govern financial

transactions there's also common law fraud statutes that exist out there. there's know-your-customer and anti-money-laundering laws that get applied here if this gets much bigger, you can expect regulators on the state and local level to get more involved. >> bob, thank you. interestingly enough, massachusetts gave a similar warning when apple went public in the '80s, citing the tech company as a danger to investors. you know how that story goes will they be right this time around let's bring in massachusetts secretary of the commonwealth, william galvin, mr. secretary, thank you so much for joining "fast money," we appreciate it >> happy to be with you. >> we highlighted the statement that your office made in the '80s about apple for one reason. >> i wasn't in office at that time >> of course, of course. but what makes your office qualified to give investors advice about a specific kind of security

>> because it doesn't pass the smell test there is no product. even the example you're providing of apple, there was at least a theory of a product. there is no product here, this is entirely speculation. that's already been proven by the wild gyrations of the value. it's also subject to manipulation, because no one can explain it, no one can control it no one can explain exactly where and from whence the profits are going or coming. this is clearly a bubble there's no question about that it is a bubble it is being fed by the frenzy that people believe they're going to make money by simply investing in this. we've seen bubbles for centuries. this certainly qualifies there is a very interesting piece today by a guy named matt o'brien, who i don't know. he makes the point that by simply adding the word "blockchain" to your name, a company completely unrelated can go up. >> aren't these two separate issues your warning about bitcoin, it sounds like fraud, when a

company whose main product may be a beverage, like an iced tea company adds blockchain to their name, the long island iced tea company saw their stocks surge when they added bitcoin to their name isn't that fraud separate from issuing a warning on bitcoin >> that could be we may look into it. i spoke to bitcoin because there is no "there" there with bitcoin. it is a concept. and what we said very clearl was if you didn't understand it, if you weren't susceptible or weren't able to accept the risk that it would inherently have, do not vest invest in it if you think you understand it, you're free to do that if you want but we've seen so many investors get sucked in and lose their money in the past. we've had plenty of bubbles in

the past we think this is a bubble. >> your office has been at the forefront of actions protecting the investor are you taking a look at bringing actions, whether against an exchange or any companies specifically >> the short answer is yes obviously there are some icos out there, so-called initial coin offerings, we believe they qualify as a security. we're also seeing the bundling of investments in bitcoin by various -- in various instruments. they could well constitute something our office would look at bitcoin itself allegedly is a currency, and so since it's a currency, we would not have direct jurisdiction over that currency although as the report that led into this interview provided, there are other regulators, i might add we don't always agree, but we all seem to agree this is a problem. >> are you working with other regulatory agencies, perhaps the cftc or the sec? >> not at this time. >> you are not >> we are not at this time but we have worked before with them and certainly if the opportunity presents itself, we

may. we're just interested in protecting our investors >> sure. it may not be under your jurisdiction because other regulatory agencies govern it at this point, but are there areas in this whole emerging industry that concern you when it comes to investor protection >> yes as you've already pointed out, we have several examples where people are trying to adopt the lingo of bitcoin and other cryptocurrencies to enhance the values of stocks that have nothing to do with it. we have various instruments being supposedly presented has having bitcoin investments which are a concern to us. we've had the so-called icos, initial coin offerings, not even bitcoin, other entities that are a concern to us. this is clearly an area that has -- that is rife with the potential for fraud and we're very concerned about that. we don't want to see investors make the mistake of getting into something fraudulent >> mr. galvin, thank you so much

for your time. william galvin, secretary of the commonwealth of massachusetts. he said that is in his crosshairs this is the next sort of -- i don't want to say shoe to drop, this has always been a concern for bitcoin investors. what would that regulation look like >> for those on coinbase, they are regulated by states, like he said, that's fantastic he's talking about these other currencies trading on other exchanges. they should all be regulated you should feel good about that, the regulations are there to protect you. the one thing i will disagree about, bitcoin is not a fraud, it's the first permanent global decentralized ledger of records. that is the use case for blockchain that exists. there is -- he said there's no "there" there. that's the "there" there >> it exists because there's something that people can invest or you can call it speculate in. the reality is that they don't

have jurisdiction in the underlying but they do in securities based on the underlying that's what those guys are there to do, and i think they're having a difficult time watching the underlying do whatever it wants to do. >> the cftc does not have jurisdiction over the underlying commodity. >> that's my point >> they don't regulate the corn market, but they do for corn futures that trade >> we have seen volatility that's outrageous. i don't know that that was a great point. i loved when he said one specific line, people must understand the risks and he's trying to protect the folks that are out there >> that goes for any investment, though >> absolutely. i was about to say >> this is no different than pets.com there was a movement going on, this is a movement, this is a generational thing that people are behind it's not a surprise. still ahead, while everyone has been focused on bitcoin mining, quietly, real mining stocks have been breaking out. have any of these names gone too

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welcome back to "fast money. a little bargain hunting there are roughly 70 stocks on the s&p 500 trading at least 15% or more below their average analyst price targets. some of those include western digital, which is currently 44% below its target broadcomm, another name in the space, wall street is overshooting on. expedia, analysts expect that stock to rally 30% from current levels check out pharma company vertex, soaring more than 100% this year, but still trading 21% below wall street's average estimates. electronic arts and even netflix. are any of the stocks worth your monday or is wall street completely missing the mark? let's go off the charts with rich here, we'll send him off to the plasma rich >> we go from institutional sales to institutional sports bar here the guys are a little intimidated. we're going to play down to our level here and we're going to

make our way over. a little bit for guy we're like ray liotta in "goodfellas" here, the long shot with the steady cam, the sco scorsese signature move. 13% decline in netflix it's going down. 13% decline into a rally finally about a 13% decline here and importantly, just like facebook yesterday, okay, what's the stock done for the last five months, it's done absolutely nothing. now, the chart is getting a little messy but you get the picture here five months sideways trading rain you come. what happens each time boom to the upside. that's what's going to happen here so from the flix, we're going to go to the chips here it's called broadcomm but the ticker symbol, we like this

stock too. we bought the 13% pullback in netflix. you'll buy the 11% pullback in broadcomm every time there's one, there's two, there's three. and more importantly, prior resistance becomes support we've got our 100-day right here, all setting you up for success as you enter the month of january when an average return of 5% in the stocks over the last 20 years. from the flix and the chips, we write some scripts we're looking at vertex pharmaceuticals, a weekly is that right -- a weekly chart, what a setup what's happened over the last few months is this classic countertrend flag. you're breaking out of that flag you're testing and holding that prior resistance and boom, we double tap the screen and now we've got to do it again you get the picture here you're buying the flix, you're buying the chips, and you're writing scripts in vertex. these stocks will get even stronger in 2018 >> that was rich ross unleashed. he took the jacket off, i didn't even ask him to come on over,

he's presuming to come what is going on here? take the jacket off and all of a sudden he's -- all right >> can i ask a quick question? >> go for it >> western digital, 44% off, right, of the targets. so what do the charts look like -- that name wasn't up there. as an owner, i'm curious >> no, but i'm a professional, but i know what the chart of western digital looks like we've had a pullback, prior resistance becomes support we've tested and held this key level on several occasions that strong seasonality, you've seen the aggressive rotation into energy, out of semis. that will reverse in the new year in the short term, pull back on western digital. >> what do you think about broadcomm giving the qualcomm entanglements? >> i think that's an accretive deal to these guys i don't know what's going to happen but it indicates the intrinsic value in qualcomm.

back to western dig, this is a stock that's trading very steep to seagate this is the one, if you look at what's going on in the rest of the sector, this is totally unwarranted. i think they grow 35 or 25%. >> he did a nice job with the technicals but the fundamentals are interesting too. sandisk has had a couple of misses and guidance down there's gaps in this chart it's very relative, let's say, to a broadcomm, which has actually had a series of raises, it hasn't done a whole heck of a lot since that early move this year if they get qualcomm and nxp, that stock is going much higher next year. that trades at 13 1/2 times expected earnings and sales growth of 15%. so it's cheap. it's cheap with peers and cheap relative to its expected growth. >> are you going to keep the jacket off >> we'll let the viewers vote on that coming up, a group that's

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food has to be fresh. it's that simple. it wasn'taking ceasy at first. she learned how to better communicate her needs. and you learned how to not ignore yours. i discovered how to make healthier meals. and i discovered how much i enjoyed them. narrator: becoming a caregiver is a learning experience for everyone. find articles, tips and tools from experts and others who have been in your place. the caregiving resource center at aarp.org/caregiving. time for an instant replay back in may, pete said visa was headed for a breakout. >> i think this thing is going not only to a hundred, probably

105, maybe even as high as 110 i bought the stock today i was in a few weeks ago, i got out of it because of my position, it's where i wanted it to be. i saw options come back in i think the stock is going higher >> pete was on the money the stock is up more than 20% since that pitch pete, what are you doing now >> i took it off i always try and stick with the discipline the level that i want to take it off at, whether it's good or bad. the ones that go against me, i take them off as they go to the downside when it goes to the upside, i do the same thing i'm not in it now. i would love to get back in it >> you've been on fire, so why don't you head to the plasma and give us your latest fast pitch >> today we're looking at constellation brands this is a great company. i always start off with the three primary fundamentals the number one is, always start with management. this is a great management team. they've been around for a long, long time. the ceo has been there and he's worked all the way up over the last couple of decades

he's been in this position now for about a dozen years. very strong management team. i'll tell you why in just a second the growth when i look at this company and i look at double digit earnings growth, i look at market expansion. they really are growing in all the right areas. part of that reason is something they're doing in such an aggressive way with some of their acquisition strategy they bought the modelo franchise, a $5 billion buy. that was really interesting, i thought it added to them they're always looking out and trying to find other ways to continue to grow and continue to expand in the markets that they're in right now it's the ipas. most recently they bought into a marijuana company as well, almost 10% this is a company that's not scared to be aggressive, be innovativ innovative, and continue to work to the upside. by the way, this stock has hit five separate occasions in the month of december with unusual activity, all going out to january, all buying upside as a matter of fact we had some just today so i like this company i'm in it. i'm an actually in the stock,

not the options. i've seen the option activity, it attracted me enough to get into the stock >> questions for pete. tim? >> pete, i have to tell you, i totally agree with you on this i think it's a great company, it's diversified in the space. i'm very concerned about two things i'm concerned about mexico and i'm concerned about cannabis which of those are a bigger risk or do either of them bother you? >> neither of them bother me right now, tim they've done a great job of expanding themselves regionally as well as where they've bought brands the marijuana adds nothing but upside it's $200 million they've put into a $2 billion company. so i like what they're doing right now, i like the expansion, getting themselves more diversification in the space >> no more questions time to vote dan? buying or selling? >> that's a great power pitch by -- >> it's a fast pitch >> it's getting a little expensive. >> that's a sell

>> trading 25 times, expected to grow earnings and sales. high single digits >> rich? >> you're preaching to the choir, $235 upside, price target earnings out january 5th, we're looking for strong numbers this is a stock you want to buy and hold and buy more. >> timbo >> the valuation is deserved, double digit growth. these guys are best in class, it's a great global brand, that's up my alley pete, nice job >> two buys, one sell. did pete's pitch on constellation brands get you in the spirit to buy the stock? go to @cnbcfastmoney one stock has been on a screaming tear do not move a muscle much more "fast money" still ead. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you...

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welcome back to "fast money. everyone focuses on bitcoin mining, quietly real mining stocks have been surging mining etf is up 15% in the last month, although down today copper has been up for 15 of the last 15 trading sessions, having its best streak since 1989 is this rally overdone, tim? >> the best time to make money in these stocks is when things are the worst. i caution you on freeport, this is not your father's freeport. there's been a lot of changes in

this company in the last five years, this isn't the chart to chase as it was in 2007. copper prices can go higher. we're at 3 1/2, 4 year highs there are supply shortages out of chile i would go for other plays in the space. i think southern copper is an interest name. freeport, i'm long the stock, i've been slowly trading -- >> copper traded high today as well these things have been more to the upside december 1st, we're looking at freeport trading at 14, it's now over 18. i still think there's upside i don't think -- [ simultaneous speaking >> i think it goes to $20 a share. >> look, melissa, a lot of people spend seven years in college, they're called doctors. dr. copper, with that breakout, it's head and shoulders.

seven years ago, that was the last time freeport traded above its 200 week until this week you're buying copper on the multibase breakout and buying freeport on the return you have to love what you see in the resources. synchronized global growth, reflation without inflation produces elation >> wow aren't you glad we took that detour before going to "options action"? >> he's unleashed tonight. >> so one thing that's really interesting today, call volume was two times that of puts in stx, on a day that it made 15 consecutive, you know, high here it's trading at a 52-week high you talk about those 40% gains year to date, they all came in the last month with all that call activity, the largest print on the day was in january, 17 1/2 puts that was the most active strike, and one of the largest trades

was 5,000. the stock was trading at 1873, paying 26 cents to open those break gene at 1724 down 8% from the trading level when you think about it here is a stock that's really gone parabolic in a month and this i suspect is a trader putting on some short term protection into the new year, locking in protection. look at that line, that's the breakout >> this thing is going to 20 >> you may be right that it's -- >> don't shoot the messenger it's not my trade, i'm not suggesting it. >> -- that they were buying yesterday, they were paying real money, 85 cents. that tells me that this thing is ready to -- >> it takes two sides to -- >> no, no. [ simultaneous speaking >> they may be potentially about to do a big settlement in indonesia with the government. >> the grassberg mine. >> yes >> again, i think they're losing a lot of value by cut that go deal it's less profitable of a company. >> all right

for more "options action," check out the full show, friday 5:30 p.m. eastern time. up next, cheers to the new year are you buying constellation brands head to twitter and vote the resultafr e eas tethbrk. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. another day of work. why do you do it? it's not just a pay check, you actually like what you do. even love it. and today, you can do things you never could before. ♪ ♪

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welcome back here's the drum roll, because it's time to find out whether you at home bought pete's pitch for constellation brands nobody puts pete in the corner an undefeated title, you're having the time of your life >> i feel like i'm having the time of my life. >> give us the dance >> don't be afraid, you can put it out there, big oy i'm going pepsi for my final trade. >> there we go, now we start tim. >> nice job, pete. terrible dance buy wdc, discount to seagate >> we can't unsee that dance >> awful >> united rentals. uri. i rented my lease with an option to buy stock goes to 190. >> rich ross >> it costs you tonight.

>> i actually think from a technical perspective, i think broadcomm sets up really interesting here >> i'm melissa lee thanks so much for watching. see you back tomorrow at 5:00. meantime "mad money" with jim cramer starts right now. 5:00 for more "fast. meanwhile, "mad money" with jim cramer starts right 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 want to make friends. i'm just trying to make you some money. my job is not just to entertain you, but to educate you, call 8 hnld-743-cnbc or tweet me @jimcramer. close watchers of "mad money" know i play one on tv weekly, showing you technica