out it they own a little bit of costco, berkshire hathaway >> it seems like a good berkshire fit. it's a subscription fundamental serge ri. >> munger is on the board. >> that helps. >> michael, thank you as always. that does it for "closing bell" today. thanks for joining us. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking "new york times" market square, i'm melissa lee tonight on "fast" the billionaires bash bitcoin. the oracle of omaha calling bitcoin rat poison squared he'll explain what buffet is getting wrong. plus, turns out tesla might need more cash. we'll explain why the electric car company could be raising more funds sooner than you think and what it could mean to the stock. first, we start off with a tweet that turned the market today president's looming decision on the iran deal. let's get to eamon javers.

>> reporter: hi, melissa officials are remaining mum about what the president's decision actually is we saw that feet this afternoon. the president putting out that he's going to make an announcement here at the white house at 2:00 p.m. tomorrow on the fate of the iran deal. he had set himself a may 12th deadline to make a decision whether to stay in or out. over the past couple of weeks we have seen a range of allied leaders coming here to the white house to lobby the president to stay in the deal we saw emmanuel macron of france, angela merkel. theresa may has been on this front as well. emmanuel mack crone rairon rais possibility of the framework they were talking about the influence in the region, the actions in syria as well that seems like it might have been appealing to some in washington the expectation going into tomorrow is a pessimistic one

among those who support this iran deal. the president has called it one of the worst deals in history. his staff by and large are opposed to it very strenuously it seems like we are heading for a pullout at least if all of those indicators can be believed the official decision remains behind closed doorgs we won't know until 2:00 tomorrow unless it leaks out earlier in the day which it can happen sometimes. >> eamon, thank you so much. we saw the market's reverse. what does this mean for the energy trade as well as the markets at large this puts geopolitical concerns in the back burner. >> it's been there for a while crude's been going higher long before the president was talking about the iran deal. it brings with it concerns this trade has been working now for a while. i think the trade that still works in my opinion are refiners and names that are levered to

the price of crude oil i go to anadarco petroleum if you want to go downstream i would stay away from integrated names. halliburton looks pretty interesting to me. >> we're 72% north of the june lows of last year on crude or brent, whatever you're calling it brent's a little stronger. i don't think you invest in the energy sector based on iran supply stoppage. 5 to $6 a barrel in oil prices based on this. you're buying oil sector because you think the supply/demand balance in terms of capacity when it's cap ex, op ex, that they're running the business for shareholders eric dicker son's pick on the "power lunch." >> i saw that.

>> bottom line is i think you stay in the energy trade based on that. guy brought up refiners. outperformed the s&p and the energy sector by 5%. >> here's a question it will be impossible to see what can or may happen it's a myriad of things. in what way do we end sanction relief does it take six months, et cetera there are various permutations do you still stay from the oil trade if it goes down to 60? >> absolutely. >> sustainable trade >> absolutely. i agree with tim i don't know 23 iif it's $5, $3 oil has been going up. i will say i am in oil, i am in u.s.o., i'm in some of the integrated names i will say what concerns me is it's a fairly crowded trade. if you look at futures trades, we have extreme highs. you're not the first person

examining it if you're initiating a new position, i'd use a tight stock. >> doesn't it seem strange talking about geo trade. there's no doubt about it. you've heard it all. why should north korea believe that we will, you know, stick with a deal that we signed if we're just ripping one up after a few years with iran. when you think about some of the data that we've seen in europe, even here, some weakness, it seems that there's a little bit of trepidation among some in the sea level suite about how they're spending where we're seeing input costs go higher. >> are you connecting pulling out of the iran deal to ceos thinking that the other stuff that this administration has not done >> i think there's no doubt about it this is not a political statement. >> it is a political statement. >> really? >> it's a statement that if you're thinking about work, we know we're going to have a mid june situation we know some of the tape -- we

saw the s&p turn -- it was off 50 bits. >> it's easy to have many different sides of the debate on the iran deal. i think you could pull out of the iran deal for lack of compliance >> political aspects of it, it's about rising commodity costs, levels of uncertainty, weakening economic data. it's not a bonus it's not a good thing. >> i don't disagree with that. i think if you're trying to draw the connection between we're going to pull out of any deal and this administration is going to break down things -- >> thank you for trying to put words in my mouth. that's not what i'm saying i've tried to explain that. >> i'm working on it. >> it adds a level of uncertainty that we don't have when we have a deal in iran. it adds a level of uncertainty of our ability to get a deal with north korea that's just a fact >> i think we've got a lot of uncertainty. i don't disagree with you there. i think the market's failure at

$26.80, i think i'll leave that for carter. >> my only point is this adds to it >> we saw that, right. markets aren't going to like any uncertainty. >> you said refiners, whatever, i'm saying that's a very narrow slolt. >> i don't think that's how we talked about it. i don't think that's a great impression for me. i feel like i'm different than that. >> before we go to carter, i'd like to play devil's advocate. the president's retort, that was a prior administration's deal, that was a lousy deal. that would be the response. >> this is not a political comment. >> let's strip away -- let's strip away the politics. even more narrowly when it comes just to iran, if the president decides to pull out of iran and end sanctions right away, we don't know how the iranians are going to react. >> we don't know how the israelis are going to ask. >> just within that region the geopolitical risk could go higher, forget about extrapolating to north korea.

>> that's not what you said. >> that's exactly what i was saying. >> anyway -- >> i happen to agree with everything so then you have to ask yourself the market obviously would acknowledge this and see this. meanwhile, you have a vix below 15 for the first time in quite some time. i don't know what it all means if the market was as concerned as it should be given this conversation, my sense is the vix should have traded higher, not lower. >> i hope the one thing we can all agree on is it does add to the uncertainty. you have to say why is it the european economy weak? if i'm in the c suite i'm concerned about the foreign currencies falling off the table. there are other sides besides the geopolitical that you have to look at as a ceo and say i wonder if i want to spend that extra dollar i'm not saying they're pulling back but i understand the market is going to try to discount that that i think is why we saw that today because in theory if your market is thinking we're going to pull out of the iran deal, oil should have gone up, not sold off. >> speaking of the dollar, the dollar is 5% off the lows.

i don't think that does anybody any good and that includes the price of oil which has done well performing well in the face of a dollar that is rallying. >> as oil prices continue to rise, a number of retail stocks took it on the chin today. the chart master says that could be a buying opportunity. what are the mack close over at the plaza to break it down. >> hi. earnings coming up for a lot of retail names which report late in the cycle i want to zero in on three big names that are at or near 52-week highs. it's up literally 1 point year to date so take a look this is the issue with consumer discretionary. the actual sector isnumber one on the board of the 11 sectors, but that number is an illusion because if you do an equal weight, so that eliminates the home depot and the netflix and amazon effect, it's one of the worst sectors year to date we know why probably because of

amazon and so forth. i want to look at a few names that i think are poised to do well here going forward. costco, no lines, here come the lines. what i think you have here, there is a lot of tension. a well recognized formation. an ascending triangle or wedge the presumption is at 52 week highs you have as good of a chance to break out to a new high it's no longer in that position. reading the lines. it's the same circumstance exactly the same that's what's so fascinating about the certain setups you work yourself into the apex and the presumption is a flat top that you break out when more -- macy's, all the same time frame and the lines conveniently fit the same story. in fact, macy's broke out and has now fallen back into the apex of the formation but, again, going to make the bet

by contradistinction, compare this this is the entire consumer discretionary sector if you put in the lines here, what we know is you're still a long way from being anywhere near the high and i just don't think that's the same opportunity. those are names that are poised to break out versus the sector and this is, again, the actual sector if i plotted the equal weight it would be way down here i don't like this space as an overweight, but there's certain securities, these three among others, think that i are quite good. >> you had me at contradistinction. >> and apex. >> brian over in the chair again. thank you, brian. >> contradistinction >> technical mumbo jumbo i understand the sector looks bad. does it look bad on the xrt? >> it's a similar circumstance to the equal weight.

the equal weight does look worse. they're taking market share and take being position from other stocks. >> here's a marquee name we're talking about discretionary. you can argue where it fits. when you think about walmart, it's down 20% from all time highs. made months ago here you think about names that look like they're about to break out. add up all the market caps and sales and tack amazon on there you don't even get to walmart. so what does that tell you about retail in general? >> retail in general is probably the most burden -- what's so interesting, with the employment where it is and with sort of the disposal income, finding a little bit of inflation, you'd expect it to be better it's all presumptively about the game changers, the innovators that are destroying the former players. >> we're talking about retail and we had just come off a conversation about higher oil

prices and gas prices. in your charting work do you see higher oil prices and falloff in retail names >> sure. the retail names suffering it's because they have their own problem. the tightest correlation that we've ever found is casual dining and oil prices. that hasn't hit. a lot of the diners have come up whether it's cheesecake or what have you that ultimately is where you look for signs that there's stress due to higher oil prices. >> and do oil prices look right now like they will go higher >> my hunch is they're over done you know, energy, as good as it is, it's just played catchup you play into it you trim costs. >> do you have a question? >> not me. i love carter's work it's magnificent. >> thank you >> back to the s&p though. >> yeah. >> seems to me like we ran out of gas as you draw the trend line where it's supposed to. >> you have the circumstance of working closer and closer to a point of what likely is a big movement

my bias is the down side based on individual securities to your point, that upper descending line. we hit it and go lower and lower. >> carter, thank you carter braxtonworth loved by guy adami and millions. >> millions. >> you're long oil >> yes. >> would a pair trade in your view be short casual dining stocks >> i -- i don't know if that would be -- i don't know if it would be a pair trade. i'd be long casual dining stocks as i am long oil casual dining should go up i like the idea of writing calls against that there's a show on friday evening that you can learn more about that i do like the idea of being a little protective here, as much as i like oil, i don't think there's anything wrong with being a little protective. >> i'd like to point something out in the casual casual dining. shake shack. great run. what did jpmorgan do today they downgraded the stock. >> what did the stock do

went higher. in our world, that's what we call a tell. coming up, apple's amazing run continues. inches away from a trillion dollar market cap. plus, tesla ceo elon musk saying they do not need to raise new capital but something happened today that says otherwise. we've got the details. tim seymour stepping up to the plate. much more "fast money" right after this this is a story about mail and packages. and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish,

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welcome back to "fast money. tesla having a great day let's get to phil lebeau with the details. hi, phil. >> reporter: hi, melissa that capital raise hint which was part of an sec filing. it always evaluates its capital needs and may need to raise capital in order to meet those needs. that surprised nobody. nobody at all because almost every analyst on wall street and anybody who is actively following tesla has said for some time it's likely they're going to need to raise capital, probably this year here's the reason why. look at tesla's liquidity right now. they ended the first quarter with $2.7 billion in cash. they had a burn rate of about $785 million notice first quarter. most believe you don't want to go below a billion dollars if you take that burn rate and

you go out into the second or thirteenth third quarter, unless you hit that delivery target for the model 3 and you really start to ramp up deliveries in the third quarter, it's unlikely tesla will be able to avoid going close to the $1 billion mark and that's why as you take a look at shares of tesla, keep in mind that most on wall street were expecting the company at some point to say this, that, yes, we may need to raise capital. that's why the shares today, there was not the negative reaction that some might have expected maybe a week or two ago. i think now everybody has conditioned themselves to the fact that as they expand production, they are going to need to raise capital. melissa? >> we're back actually above preearnings levels still after that conference call we saw that dip. we've completely recovered in terms of elon musk's purchase of shares, do we have -- >> right >> -- well above and beyond what he normally purchases? >> i don't know how he makes his purchases. i'd have to go back and take a look at the records. keep in mind, i think he has 33

million shares, something like that, in terms of what he now holds. this is a drop in the bucket compared to, what, 33,000 shares, very small purchase relative to how many millions of shares or 3 million shares, i'm not exactly sure what he owns, but it's a small purchase relative. >> phil, thanks so much. phil lebeau joining us from texas today. >> reporter: you bet. >> what does this capital raise mean remember back to 2016. you can actually see here what has happened with capital raises nothing when it comes to the stock and even in 2016 elon musk had said that there would be no need to raise capital and then they did a multi-billion dollar capital raise in the face of that sounds kind of familiar, doesn't it >> it's actually almost a positive, right? now they can continue on with the production again, you have to look at who's in this stock. you're not going to shake out the holders, you're not going to shake out ron baylor because they missed production by one quarter.

you look at it as a venture capital deal what i mean by that, over time they have to continue to raise money. that's what the holders understand and that's why when you raise capital -- >> this is different this time on the call last week they said they have 400,000 back logged for this model 3 that means 400 million zero interest loans that this company has taken from people that they have to produce these cars the burn is going hot. they're not producing the cars at some point they could have a lot of cancellations you add that into it the really important thing was the last raise was in anticipation of a model 3 rant they've throttled down the model x and model s production to get this lower cost model 3. this is what's different this time i think there's the potential that they're cannibalizing their upper end cars with this one that they really need to start hitting 5,000 a week or the street's going to get worried. >> i'm not worried about the

cannibalization. at the core of your tesla thesis is that the model works. i'm not sure it works. elon musk ran as far away from the questions as he could on the last call. if you look at the bond market, the investors are demanding more for that risk. you're down 12 points on the tesla 2025 bonds which is the benchmark issue. this capital raise has to be treated differently than others even though i think it's ultimately a positive. to say that core investors could never be shaken out of this name, that's ludicrous. >> just to be clear, i never said they couldn't be shaken out. you have -- >> the cost basis is more favorable. >> losing 5%, 10% on the stock won't be the reason. >> right >> of course there's going to be roon if they don't do it -- >> that's the problem. >> musk owns 20% he never sells he only adds that's a b, the second holder is

fidelity since 2010 since the ipo they've had a static amount of shares, 16 million they buy low and they sell high so they have sold but they've always been about 16 million over the last five years that's almost 30% hold. >> i get that, dan the story has changed. i'm just going by where sentiment is different. >> it has. it has yet we're still holding 300. >> $302 a share. >> the bear case is out there. you have made a great case for why the stock should be lower. i don't disagree here we are held 280, a couple of times higher today. what's left for the bears to shoot against in the short term? i don't know the answer to that. i do know it's held where it's needed to hold and i think there's room to the up side still. at some point this story could absolutely blow up, i agree. right now if you're bearish on the stock you let everything go your way and the stock is still above $300. we have a news alert on citigroup. let's get to leslie pick injury. >> reporter: value act has built a large stake in citigroup in a

statement to cnbc representative we have been having constructive conversations with value act and welcome them as investors. "the wall street journal" is reporting the size of the steak to be about $1.2 billion amounting to about a .7% stake much citigroup based on the report it doesn't appear that valueact is looking to push for major changes at the bank but simply looking to boost citi's buy back plan to $50 billion. we've reached out to valueact for comment and have not heard back this is the latest investment in the firm they took a similar size stake and that position has done very well in the after math of the discussion they also announced a stake in kkr. >> were they effectively passive investors? >> reporter: largely, yes. they didn't take the typical

avenue we'd expect to see. they have largely been passive, maybe having some discussions behind the scenes with executives no major changes at those two firms. so we can possibly expect the same thing from citi but of course it's still early to tell. >> leslie, thank you leslie picker in the newsroom. tim, you're a shareholder. >> i think there's a lot of leverage that citi bank can pull or has exposure. credit cards were very good in the first quarter. their core business is strong. if you want leverage in a growing economy, that's what we're arguing, i like citi bank. >> valueact, theranos of value fame, that's my only comment have at it >> i'd agree with that i would say citi is trading at a discount to book value they reported book on the

"closing bell" with kelly and mike book value is $71.5. even if you give them a 1.3, 1.4 multiple price to book, you're talking about a $90 stock. >> still ahead, disney shares stuck in the mud but will its earnings shares bring out the bulls? we've got those details. i'm melissa lee. you're watching "fast money" on business first in the world. here's what else is coming up. >> tim says one biotech stock that's been dead money for the past three months is about to break out and he'll pitch you the name plus, call it the billionaire beatdown >> cryptocurrencies will come to that. >> warren buffet and bill gates slamming bitcoin b.k. says the billionaire boys 'lbrmissing something big and hel eak down what that is when "fast money" return

welcome back to "fast money. rat poison, baby brains and terds, just a few of the adjectives used by billionaires at the berkshire hathaway meeting to describe bitcoin. b.k. is over at the plasma where he's going to rebuff buffet. we are going to play a sound bite of what was said and get your response. here's what buffet said about the speculative nature of bitcoin. >> when you buy nonproductive assets all you're counting on is whether the next person is going to pay you more because they're even more excited about another next person coming along but the asset itself is creating nothing. >> b.k., your response.

>> well, my response is this here's the bullet point. buffet said the same thing about commodities. it's a difference in investment style. buffet doesn't think commodities have any value either. when you're talking about bitcoin, cryptocurrencies, my investments are on cryptocurrencies in general not just bitcoin they are the fuel for the blockchain combining a token or cryptocurrency with a blockchain is a powerful economic model that we haven't seen before. i don't think mr. buffet is seeing it either. >> also on "squawk box" this morning berkshire hathaway vice chairman charlie munger said this about the currency. >> bitcoin is worthless artificial gold which if it succeeded would have facilitated a lot of illicit activity. now that is not something i think the world needs. >> thoughts, b.k.? >> here are my thoughts. this is your classic cast city

gags before investigation. i fell in that hole in 2012 before i did a deep dive bitcoin is a ledger. gold is a rock that's not to disown gold but gold doesn't do anything what bitcoin does, it's a big electronic ledger that we can all see. it has the potential to disrupt a 600-year-old process essentially what we're doing is taking out of that double entry ask thing ae in accounting, putting it on the blockchain and making it software that's all they are, they are software with a token attached and it's a disruptive technology that's why i want to be invested in it and that's why i think charlie has to do a little more investigation. >> how about the notion that it is the fuel for illicit activity >> that's been the argument for a while but the $100 bill is used for more illicit activities

which i believe wells fargo deals in i think they have a pretty big stake in wells fargo. >> bill gates child in during the same interview here's what he said. >> there's some really good technology in terms of sharing databases, verifying transactions that is talked about as blockchain. that is a good thing bitcoin and icos i agree completely, it's one of the crazier speculative things >> here is a very important question can you like blockchain and not like bitcoin >> i am so glad that bill gates said this because it does come to the heart of it let's look at what we're talking about here this is a potential big tech disrupter. can you like blockchain? there are some applications for enterprise blockchain, i think they're going to be very useful. just like the intranet was how

companies tiptoed into the internet in the '90s, enterprise block chains are companies ways of tiptoeing that will be pushed to the public chain or the d net and that needs to have a token they have to be paired to have that model that's the powerful economic model that all three of these billionaires are missing >> well, buffet and munger's comments have them recoiling when will they return to 10,000? >> i don't think they had anything to do with the retreat. it added to the bitcoin people who would not want buffet and mung oh r to be in this. when are we going to get back too 10,000 predictions are very questionable but let's give it a shot we've had the tremendous rally

off the lows this was 6,000 easter weekend. that was a pretty tough weekend but we've rallied significantly. 10,000 coming in just about right there. that's resistance. i still think we head higher we have a couple of catalysts coming up. blockchain weekend in new york we have the consensus investment coming up. that's the biggest conference of the year that is typically very positive for cryptocurrencies. >> who is actually right here, the crypto baller or the oracle of omaha let's vote tim, what do you say >> first of all, it was b.k. against the world really good job, b.k. i give b.k. the win, 2-1 i think the almost hyper poll lick claims against bitcoin were easy to have a discussion. >> dan >> i'm with b.k. coin. >> these guys are legendary investors. what's going on with b.k. and his pals over at bushway is

going to be something that they'll probably be writing about for 50 years or in 50 years, that sort of thing. i don't know why you'd be a skeptic when the top four coins have a -- the total coin market cap is 440 billion let's be optimistic. >> gate, clean sweep >> when it comes to crypto, when it comes to crypto, b.k. is greatest that's greater than the oracle b.k. has spent the last five years of his life -- >> dedicating every moment. >> every moment. >> to learning about this. >> it is true. it is absolutely true. respectfully i'm not certain mr. buffet or mr. munger have put in that kind of time. i'm with b.k. on this. >> if you are out there curious to know what mr. buffet had to say or every shareholder meeting in the last 24 years, you can head over to the warren miller archive. we'll have more available for the first time ever. don't miss warren buffet, inv t

investor, teacher, icon. still ahead, buffet may hate bitcoin, but he loves him some apple. it sent it closer to the trillion dollar mark plus tim is all bowled up on one stock down 15% on one recent high find out the name and what has him so excited when "fast money" returns. i was in the stone ages as much as technology wise. and i would say i had nothing. you become a school teacher for one reason, you love kids. and so you don't have the same tools, you don't always believe you have the same... outcomes achievable for yourself. when we got the tablets, it changed everything. by giving them that technology and then marrying it with a curriculum that's designed to have technology

at the heart of it, we are really changing the way that students learn. and i can't wait for ten years from now when i get to talk to them again and see, like, who they are. ♪

welcome back to "fast money. shares of apple touching an all time high today and inching

closer to a $1 trillion milestone. let's get to bob pisani. >> big moves here. apple has added about $50 billion in market cap since tuesday's close when they reported earnings. now compare this, $50 billion is the entire market cap of general motors it's the entire market cap of illinois tool works and it's almost the entire market cap of colgate as well as northrop grummond it's an amazing number apple's market cap is comfortably over $900 billion. its nearest competitors to the race to the first ever $1 trillion market cap, amazon, microsoft, alphabet and facebook as you can see here, they're far away now this latest spurt started with apple's earnings release on tuesday and it continued in the last couple of days as warren buffet announced he was adding to his apple holdings. it sounds like he and partner charlie munger would like to add more >> what do you think about apple? do you have a thought on the stock? >> yes i wish we owned more of it

we talked about it i wish we owned more of it. >> why >> i think we've been a little too restrained. >> 43 billion is not enough? >> no. >> not enough. by the way, a big help to apple's latest push was that $100 billion buy back announcement let me show you why. since 2013 apple has gone from 6.5 billion shares outstanding to 4.9 straight down. that means that all other things being equal, apple's earnings are 25% higher just because of the buy backs. think of that. apple's earnings actually have doubled since then and earnings are up 50% though. there's a lot more than buy backs. remarkable they've been able to cut the amount of shares outstanding by 25% melissa, back to you. >> thank you very much, bob pisani here's another way of thinking of apple and buffet's purchases. they've repurchased 137 million shares buffet bought 75 million shares.

that equates to 212 million shares which is just about 9% of the shares outstanding if buffet and the company were not there, where would the stock be who is left to buy the stock where it is? >> you could probably make an argument had a it would be in the high 1.60s, 1.70s. you can't deny what they've done i'm not some huge apple believer i'm not going to pretend to be in terms of where they're moving their business from generating revenue and visible product lines, i think it's pretty everybody couraging. >> the fact that the services business, i think you have the best of both worlds. i think there's a lot of people that would want to own the stock and i think they do. >> it is one headline away that 31% services and the other

includes the watch and wearables, that was the big surprise and the negative sentiment about iphones is good news this is a cyclical business. i want to make one point about the services it looked like some of the payments from google was a huge boon to them for searches. it wasn't this low margin apple music that's growing really fast this business is going to have peaks and troughs. let me tell you one other thing. there is no super cycle. you better get comfortable with what i think is going to be more volatility around the services and others. >> right the bet that buffet is making is the company is going to come back in and buy the stocks basically what he's hoping is somebody, the company is going to be a little bit more excited about buying the stocks than him. >> wait a second i know what bk did he's going back to the by titcon thing. very subtle. >> i caught that >> switching gears here. one hot chip stock gearing up for earnings it could be a make or break

moment for the semiconductor space. >> smh, the three top holdings, intel, taiwan and nvidia on thursday this is a big one for smh. what are people selling out of short dated puts here. look at that right there look at that triangle here sitting on key support that is the smh right there and when you think about this, those two top holdings, intel and taiwan semi, they went two very different ways taiwan semi, apple is the biggest customer taiwan semihas not even rallied with apple one bit intel is going the other way this is why the nvidia report is bad for the generals only 5.5%. if nvidia why to do the impossible and guide down, i think the semiconductor sector could go a bit lower back towards the mid to low 90s

>> we're going to make a round here you had suggested taiwan semibe replaced by one of the fang names in fang. >> i did. >> what went awry? >> what went awry was -- >> tech. >> the apple part of it and the rest of the iphone ecosystem that's what went awry with this. it ends up going with the semis into one of dan's triangles of death. >> yeah. >> for "options action" 5:30 p.m. eastern time. still ahead, disney having a blockbuster year at the box office the stock is down 5% why the disconnect plus, tim is stepping up to the plate to pick a stock that's about to make a major turn around tus.asmoy"hen "ft ne rern ♪ ♪ so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long. ooh, so close. yes, but also all...

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welcome back to "fast money. time for fast pitch. this is where one of our traders pitches the next big idea. tim. >> we're talking biotech a sector that's underperformed amgen is my pick when this finally comes up, you'll see the bar on this company, extremely low. the product erosion is very clear. nulasta, some of the other core products were effectively 55% of the revenues are slowly, slowly grinding down. you have a tremendous valuation here and you have a dividend

which isn't enough this is certainly a stock like many in the sector where there's plenty of defensive characteristics. 32 billion in carbon the balance sheet. 2.6 billion in the cash flow there's a lot to buy here especially at a time when the sector has tailwinds behind it there's a lot of catalysts here. new products and mna it's not just the whole mna story. there are six or seven key therapeutic areas for amgen. they have a migraine product, repatha. they're starting to grow ultimately if you want to look at the stock and look at the chart, this is ultimately a place where you see largely dead money during this period i actually think it's been very defensive. if you look at the two-year trend on the stock, i think it's been a nice, gentle upswing. amgen is a company you can buy do not fear the flat growth. look at the new products. >> hold on, hold on.

i'm calling offsides, foul ball. whatever happens in baseball you picked amgen two weeks ago. >> what's the foul ball. >> i like to buy other people's problems my strategy is a little different. i'm very excited to say i'm going with a stock jimmy just talked about >> amgen. >> are we getting sloppy seconds here >> whoa! >> what is the deal here. >> i didn't hear the question. repeat it again. >> you don't want that repeated. >> should we allow this to happen >> yes >> fine. >> ask your question >> fine, fine, fine. >> tim, what do you think the potential 110 billion market cap here for two big guys just emerge rather than m&a and going out and using the balance sheet. is that a policy >> very interesting. i think the bottom line is there have to be enormous synergies. i think there could be it is really all about the core products if they believe they don't have overlapping products, i think you might see something there. >> time to vote on this amgen

pitch which tim pitched two weeks ago at the stock draft >> pitch it? i chose it very different i'm pitching this one. >> are you buying or selling tim's pitch on amgen bk >> tim must have used this pen to write things down because it's out of ink. if you could read this, i would say buy. i like the risk reward, 1.64 this is magic ink, buy. >> it does say buy. >> mine says buy it's a good level here obviously valuation, all of the other m&a. >> i put tim speaks the truth which means i'm a buyer. amgend. raise it, they're sandbagging. >> are you out there buying tim's pitch for amgen even though he chose it at the stock draft. vote on our twitter poll we'll reveal the results later on plus, disney's "avengers" top the box office willt ve t igihe earnings a boost? much more "fast money" still ahead.

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billion. now that will impact the results tomorrow we are sure to hear from coo bobo iger infinity war topped $1 billion in global ticket sales, faster than any other movie in just 11 days all the more impressive because it doesn't open in china until friday. so far this year, disney has sold 32% of all tickets in north america and disney is poised to continue dominating the box office with "solo" a "star wars" film pre-sales tickets are twice as strong as those for "black panther. analysts will hone in on disney's largest network, media network. we can expect probing about how disney's direct to consumer espn app has done in the first few weeks and of course disney's pending fox acquisition will be front and center, especially now that comcast has been offering a

higher price than what fox has offered. we're interested to hear if iger is going to get into a bidding war. >> thank you, julia boorstin in los angeles. why do we think disney's been trading at a discount to its peers at this point? >> i think first of all the value of content seemingly has been diminished in the last 12 months i think people don't believe that they're going to be able to compete with netflix i think that's wrong if netflix gets that multiple, disney should get that multiple. >> i'm asking that question because we're getting at can they say anything or do anything on this earnings call to allay any fears or address that discount >> if you watchthe last couple of quarters, bob iger absolutely can. what i've noticed is the stock sells off after the initial report he comes out and speaks an then you have the rachet to the up side he has the ability to speak to the street and you'll see that tomorrow

>> the content has been devalued they're in a bidding war incrementally you have to see the media networks do a little better you need to see progress on the over the top things. then they'll have the sort of content whether they win fox or not. that will make their vtc thing go >> there are two people you won't want to bet against. incentive in the stock drops, that's where you want to be in and bet on the guys. >> up next, final trades and the results fr t pl omheolon the fast pitch stay tuned let's begin.

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there are two polls tonight, one on tim's amgen pitch it is tim's favorite song, tony braxton's unbreak my heart they're not buying tim's recycled amgen pitch you know who's having the time of his life? brian. they're siding with the krystal baller over the oracle of omaha. we haven't heard this song in so long. >> it feels good. >> a winner and loser. >> time for the final trade. >> tim >> it was a winning trade. it should be the winning trade go with amgen, very cheap. >> i threw a little shade on gold earlier in the show as just being a rock i think it's a pretty important investment gld, i'd be a buyer. >> semis, we have one going this way. intel and semi

nvidia is going down. >> we're raising the ceiling with that song happy belated birthday, tim. halliburton in the energy space. >> happy belated birthday. >> i'm miselsa lee, thanks for 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 save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. what can we learn from warren buffett? let's start with the obvious the greatest