really made lots of very impulsive statements online so we just don't know >> which you still have no idea where the money would come from and it's a lot. >> successary financial part of it the idea that the existings rolled their holdings into a private sector, 50 million shares traded and people sold in the 370s and 50 million shares in the last two days >> that will do it for "the closing bell." "fast money" begins right now. "fast money" begins right now overlooking times square i'm scott wapner our traders are pete najarian, tim seymour, karen finerman and guy adami. the sec reportedly now looking into the tweets from elon musk yesterday about taking his company private. could twitter be tesla's downfall we'll explain. plus, it's a crypto crush. bitcoin sinking after the sec delayed its decision on another proposed etf is this the final nail in bitcoin's coffin or will it rise

from the dead? dan moorhead, a top crypto hedge fund manager with us we start with a group of stocks that just can't stay down. tech making a rockiesque comeback it's the best performing sector of the past week while fang is leading the charge sales force, nvidia and paypal all joining in on the party. guy? >> yes, sir. >> tech's back >> when did it leave there was a bit of a lull. >> facebook. >> netflix >> should we go on >> i don't think netflix is a tech stock, but that's an entirely different conversation and that stock should have gotten obliterated it did not adobe is another name, huge valuation and it didn't sell off that much and the tech we lock at every day sort of hung in there. >> a lot of the glamour name, in

fairness, a lot of the glamour name his a bit of an upset facebook. >> intel has had issues and facebook is its own animal so i would push back and say yeah, there have been names that have had issues, but tech has done well. >> the lead singer, and it might be one of the worst ever i think there's rotation we've seen him fall out of favor and i don't think that the semi story is over, and i think the high multiple, high-momentum stocks are in a prove-me period and say what you want, but this market has been led by transports and industrials so, no, i don't think you chase tech at all costs and i don't think you ever did valuations seem to matter more in the market than they did a month ago. karen? >> i think the earnings were very good. >> alphabet, very good >> facebook and microsoft, very

good i don't know i don't know why they sold off the way they did and even with the market up very close to its all-time highs, there's the tech names. >> there are places you can go if you're a techie looking for value and there's an area where we kind of go here and there, but they have a higher valuation and i bring up something like amazon and nvidia where you look at the valuation levels and you go, that's pretty expensive and the growth is still there. people are willing to look past the fact and many of the multiples are extremely high the sell-off in facebook did pull down the market for a day or two that that ended. if nothing else it caused a somewhat deeper conversation on whether value was going to finally take the place of growth for a while and now we're looking at the tech stocks, as we said. facebook, 8%, amazon five, n video, 5, paypal, 4.

i could go on, but those are the names i have in front of me indicative of how these stocks have come back >> it's a peace point. the facebook absolutely rattled some chains without question you look at the stocks given the run they've had. microsoft at 28 times, maybe people look at it and say that's an expensive stock and maybe we should take profits. >> it didn't happen and sales force is another name at 60 times forward earnings and that didn't happen. so facebook not withstanding and i don't think my point originally is i don't think tech ever left. >> it's a forward-looking market and you look at the forward p-es and also you look at microsoft and it's not as expensive. you look at the various names and you look at the growth trajectory right now in many of these names. it's really there, scott those are actual growth and those that are focused on the crowd are crushing it right now and because of that, first of

all, i never buy anything because it's value >> i think more impressive that we're knocking on the move in new high is they got hit today discretionary closed at a new high today and financials are carrying their weight for the first time in a while again. those have to be viewed as more positive signs and we're not only getting to the new high >> we did a power pitch and that's something you do on the show >> fast pitch. >> fast money. >> let you in on a little secret we've done it for two years. >> we did the power pitch and we talked about right after the president went after pfizer, we actually had a conversation that said that will put in a low for pfizer for quite some time you have not seen a three or four-week pfizer drug like last couple of weeks in the last six years. something clearly is going on. i think the bull's-eye office their back i think it is now off their

back >> when i look at this market and i look at the move down and the market and how it rallied and the outperformance of transport which is is probable 7% of bank which is is probably 4% of the discretionary and not necessarily xrt and individual names of the retail space that have been on fire and most importantly, earnings gave credence to the argument that those cheap valuations, and look at what happened with the airlines and the banks this to me is the nice thing about earnings and fresh data points that are giving you and rea firing and in some cases beating. >> we have coming up in the near-term and discretionary is moving well. what are you watching? >> today in discretionary,% michael kors who isboth a trading and clothing company and it bodes well for others in the space and we saw dillard's with

numbers. it is interesting, we're talking to kudos, retail, transports a lot of the times we hear the story of oh, all of the games are anything from a very, very sector of the market and that's not upon true anymore are anymore. i drnt realize they were -- outside of that, microsoft is doing will, there are a things outside of the fang, you still have six or seven stocks >> the names outside of that were also performing i think that's the part that gets lost in a lot of people and the great example would be merck and pfizer and a lot of the different drug names that are out there and there's been a real run, and in the biotech world. what about the notion in that particular space of it has a more defensive posture so the market has been a little more defensive lately.

morgan stanley was out with a new note talking about two of the three legos the stool being knocked out of the market wondering whether apple's $1 trillion market cap thing was a potential sign at the top and there was the lights flashing and that was okay. the market seems to be more defensive lately and apple hits and i don't remember exactly what i'll pull up the note. one of them was a more defensive posture. until then is had been side weis defense of, and there was a reason to r affirm andy it itd are see the markets that take old, and i think with piz will continue to do what they do and if we get the broader support that's what the ten-year need

period. >> look at the financials. >> overall, they've had a very good month and obviously started off with earnings, but you're talking about 6% in the last month or so. that's pretty impressive. >> to me, the biggest risk is we're all thinking oh, they'll work out trade and they'll work it out it won't be a problem and it doesn't mean that the rhetoric keeps getting ratcheted up and if they don't work it out, there's a lot of downside to a lot of different industries and there's some upside if they do work it out and we're assuming it's all going to be fine and i'm making that assumption, but with the vix here it's good to own puts in your portfolio. >> that makes a ton of sense this morning we get an announcement that china slapped another $16 billion in tear of as a group and the market yawned >> i think everyone has just accepted and the tariffs will lap and that will be the new trade works. >> i'm not sure, i agree that

the imply kay arecations of -- people are looking at the reality of consumer discretionaries and i don't think they're terribly concerned about tariffs and once they've truly done their work a lot of the sectors are more, you know, more impervious and are going to be defensive in the environment. >> coming up tesla's ceo elon musk reportedly under fire now from the sec as it looks into his surprising tweets about the company yesterday. could twitter end up being the kryptonite for mr. musk? plus, retail stocks staging a health rally ahead of their earnings reports next week and we were just talking about that. guy adami says he thinks thery is one winner there. we are live from times square and there is much more "fast money" after this.

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to free streaming entertainment, plus launching a roku channel for the web. d.a. davidson says world cup in june likely contributed to roku's strock performance and key bank says roku is an attractive asset given its engagement with upon on the rating system and data while roku is a good buyout target given the consolidation we're seeing in the media la landscape, analysts say it has plenty of room to grow on its own. earnings fueled by strength and advertising and matthew thornton of sdrh says yelp's results are raised into cautious sentiment he thinks the stock should rally despite ongoing competition from open table which is owned by booking holdings shares of yelp up 11%. >> seema modi, thank you so much seema covering the earnings reports. let's take yelp. that's where seema ended what do you think? >> can i go roku first i apologize because i just

saw -- >> let's do roku first >> it's alphabet cal order great idea a lot of analysts raise their prices in july for roku. all between sort of 50 and 54. after this quarter they'll have to raise their prices again and it's a ridiculous comment, i know their margins were ridiculously strong and it was much better than the street had expected and i don't think it will, there's interest in the name i think you will see people raise their numbers over the next couple of days. >> roku -- first of all, they've done 25% of the tvs that are coming out the digital advertising part of the business means that their metrics are better and this is the part that a lot of people don't understand companies just had a massive move, though and this is a $30 stock and i don't think we need to touch it here and we'll see upgrades. >> can we go to yelp now

i think we should go to yelp now. >> are you okay? >> i think we'll talk about roku >> see >> all right go ahead i think it's interesting the cord cutting angle, right? it's huge. this stock, i think -- i don't know, do you need to own it? do you have cord cutting exposure elsewhere the metrics -- >> the growth metrics are pretty phenomenal. >> and the user -- >> they're phenomenal. that short interest as guy mentioned and it's 22% that's interesting, as well. i'm intrigued not that i would buy it so much after earnings, but this is one i should look at harder because there's something here for sure that even up here. that kind of growth is surprising and they can keep going. >> time to talk about yelp. >> no, i can take a hint >> moving on coming up next -- yelp. >> is it okay now? >> the expectations into these numbers were incredibly low and the no-term advertising and the no-term commitment of the

underlying users and little not something that changes the game for these guys the valuation of 20 times is cheap for a reason and i wouldn't chase this number >> i'm not so sure about that. when they beat and they're raising at 20 times earnings, it's very inexpensive. i would never have guessed that that has an earnings level in terms of p-e i would never have thought it was that low this stock actually could continue until it gets somewhere toward a 25 multiple >> we played a game. >> would you rather? >> we don't have to play it anymore. we just did. >> would you rather? >> you would rather roku >> i would we played the game before we played the game. >> what would you rather talk about? >> roku. >> coming up -- >> coming up, some of the biggest retail stocks on debt for earnings next week and they one name guy adami says is about to break out it's not roku or yelp. fast pitch in the meantime, here's what else is coming up on fast.

that's what bitcoin. crypto hedge fund manager said hold on, dudes better days are ahead. plus regulators reportedly cracking down on musk and his crazy tweets ocll it finally catch up to the stk?we'll bring you the latest "fast money" returns rlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com welcome back to "fast money. we with have developing news on tesla. the sec is looking into musk's tweets about taking the company public let's go to leslie picker. >> musk's tweets about taking tesla public has attracted regulatory attention "the wall street journal" is reporting that the securities

and exchange commission has reached out to tesla and asked whether musk's plan to take the company private is factual the journal's story citing people familiar with the matter sent tesla's shares lower in late afternoon trading tesla closed down 2.4% pairing a little bit of yesterday's 11% gain the tweet in focus is the one that am considering taking tesla private. funding secured. where he described his plans in more detail. the journal's story said the sec also inquired yet disclosure was first made on twitter rather than a regulatory filing the story also said it wasn't immediately clear whether the sec has opened a formal enforcement investigation. the sec declined to comment to cnbc harvey pitts was on squawk box this morning and said there's enough for regulators to start asking questions the former president of the nyse tom farley recently tweeted to

the sec urging the regulator to ask tesla for their signed agreements from funding sources by 5:00 p.m. eastern time that would demonstrate that the funding is, quote, secured and certain in order to inspire market confidence. tesla's independent directors put out a statement this morning saying that musk initiated the discussion with the board about taking the company private they add the that board has met several times since then and said they are taking the appropriate next steps to evaluate a potential deal, scott. >> leslie, thank you very much leslie picker. all right. let's trade this this is not a big shock considering what we discussed one night ago. >> not a big shock that he's under -- >> yeah. you had to figure the sec was going to look into -- >> it's absurd the fact that he did not file, it's ridiculous. also, there will be shareholder litigation that you know, the company knew this was happening and never disclosed it to

shareholders all of that is noise, though even if they end up paying fines or whatever it's all noise the question is is there really a deal ahead and is there really financing and/or debt, equity or both to get this deal done and i'm shocked at the letter and the lack of disclosure and the letter to employees. that's nice, but a tweet like that, it's absurd that there's anything more and i'm shocked that they didn't file anything today. he should have filed it yesterday, but i don't know, who is the -- who is their counsel that is saying this is the way to do it >> the board put out the statement today, right apparently this idea came up more than a week ago >> who is the board, too it's a very, very affiliated board. >> where were they where was this statement, you know the whole thing, it's protocols don't really make a lot of sense. this is the guy who has been so outspoken against shorts and

this is a guy who takes particular glee in being out there. by the way, i don't know why one would take it so personally and this guy is laughing all of the way to the bank and all of the way to the ultimate throne of innovation no question that this guy is considered a hero and that this company is very well respected and why not just leave it alone? 420, a lot of people were wondering -- people thought the 420 number was -- >> i thought where was the board though this is a guy who has always operated outside of the board. he's a guy that just does what he wants to do when he wants to do it and he's got the stacked board and he's got a family member on the board. if you look at all of that, that part doesn't surprise me at all. the fact that harvey pitt would look into it, of course, they'll look into this, i think they have to, but the idea that they can't find strategic partners or maybe has found strategic partners out there, sovereign wealth and whatever it might be. >> what happens -- i know this sounds crazy, but what happens

if next week, you know what? i decided not to do it >> you mentioned the possibility of shareholder lawsuits and what about the people who bought it before it was altered? >> it was dangerous and again, the charge is that it could be manipulative >> here is the thing, though, that he has going for him. i highly doubt he's trading on this >> no way, right >> he's certainly -- he'd be dumber than the tweet. >> right so that maybe gives him some coverage and even if he were to say we're working towards a deal that doesn't make him do you understand to have to do a deal, but this kind of disclosure is so -- it is so cryptic >> if he would have simply said just to throw this out there thinking about taking tesla private, we wouldn't be having this conversation the way we are and others are talking about the possibility of taking companies private all of the time. i would probably ask carl icahn whether he would take herbalife

private at some point, but this is funding secured funding secured tells you that there's been definite conversations and that there have been formal conversations >> and board, if any of you watch this show, someone has approached your company to make a bid for it to take it private. it would happen to be your ceo and obviously you know all of that and it's your duty to the shareholders to tell them what the hell is going on. >> despite all of the drama, tesla has more room to run let's go out to san francisco with that angle. mike >> so tesla traded more than two times its average daily options volume and this is one of the stocks that trades a lot of volume to begin with that made it the busiest single-stock option by a long shot and well over apple which was the second place in terms of how much activity we saw and most of that activity by the end of the day was concentrated in the weekly 380 calls that we saw 11,000 of those trading for five and a half dollars and they're

options traders that the stock would be above 350 by the end of the week and i would make one other quick point here, too, and pete can speak to this when you think there will be a deal, the longer dated option premiums will drop because the volatility of a stock that's private is zero and we actually did see three month and extended volatility drop here so the options market is suggesting that there is some chance that elon musk is going to do something here i wassing to go to guy what have you got? >> the that shows you that there is something to this, something to that tweet. if you see volatility collapse in the distance. you're buyingying time when you're going three months in, four months out and now you're paying for the time on the volatile options and it will cost a lot of money and it's nice to see it come back in and that says a lot of what people's

perception is. >> would the stock be down 370 if the market thought this was a high likelihood of happening >> where was it before the tweet? >> yeah. what was the saudi thing that came out just a little bit before, what was it? i don't know >> which was fairly -- >> if you're saying it was a high likelihood. >> it didn't trade particularly well today we traded up to levels we last saw june 2016 or '17, i forget seemingly, it failed and now there is a potential for double top. i think the saudi investment fund is too tesla, the way that the fed is to the s&p 500. i believe there is a floor on this >> i need to say what i said sovereign wealth funds and that's yesterday's news and it doesn't tell me what they're doing tomorrow and of course, they made an investment and it's saudi arabia 350 is where the stock was before any of this news came

out. >> big deal. >> i don't -- >> all right our thanks to mike ko. more options action, you can check out the show at 5:30 p.m. time >> guess who is here for that. >> you are >> guy adami, who else says the rally can get even hotter when one name in space will give us the name. he'll give us his fast pitch plus, that's the way the crypto crumbles the space getting it today and the bitcoin etf and one crypto dge e fund manager says th hee fund is the perfect buying opportunity and he'll tell us when "fast money" returns. ow. 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.

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the most personal technology, is technology with the power to change your life. life. to the fullest. >> welcome back to "fast money," bitcoin bulls had been dashed and with the cryptocurrency dropping to 6,000 could this be the nail in the coffin for bitcoin? bob pisani is breaking it down from the new york stock exchange. >> hello there, scotty another painful day for bitcoin dropping 10% or $10 billion in the last 24 hours out again. the problem here is we're no closer it to a bitcoin etf despite an issue that bothers the sec. they were delaying a decision on the solid bitcoin etf with marketing assistance from van

eck securities i decision was put off until september 30th, but don't kid yourself the sec is likely not considering anything other than a lengthy brief on why they will deny the etf at that time just as they denied the winklevoss bitcoin etf. it doesn't fully address the issues that worry the sec. they denied that most bitcoin trading occurs outside the united states on unregulated exchanges that are subject to fraud and manipulation that's a big barrier overcome. to its credit, the van eck application tries to address these issues by putting a hefty $200,000 price tag on the initial entry to join the club thus scaring oil out of retail investors and they also add a layer of insurance to protect investors in the event that the coins are hacked or stolen, but this is not likely to satisfy the sec. now does it really matter if we get a bitcoin etf or not

i think it does matter i think it matters or not. the whole summer rally going from 6300 to 8300 in a couple of weeks. that was the middle of july and that was largely based on speculation that a bitcoin etf might be approved. no surprise the recent top in bitcoin was july 25th and that was the day before the sec denied the winklevoss application and it was down eight of the last ten trading days and it's right back to where it was before all of this speculation started. scott, the reason i think this is worrisome is that obviously bitcoin doesn't have a lot of internal energy on its own and it's depending upon new buyers coming in to move the price up and that was the big hope behind the etf. i still think very doubtful right now. back to you. >> bob pisani down at the stock exchange >> for more, let's bring in dan moorhead, ceo of pan terra capital and despite the plunge he's still betting and you can see him from san francisco it's good to have you on fast

tonight. >> thank you for having me. >> i'm sure you heard pisani's report right now what do you think of the etf trouble and the decline in bitcoin that we've seen? >> oh, i think the main thing to remember is that bitcoin is an early stage venture and it has a realtime price fee and that's a unique thing and people get excited about the price and overreact, i think, to announcements and there have been a couple of big things coming out in the last week and the etf rejection is the same story we've had for five years and the sec has been very cautious with an etf. >> right how much do you think an etf matters to the success of bitcoin or at the very least to help right this what seemingly is a listing ship? >> oh, yeah. it's all perspective bitcoin is up 82% year on year so it's still doing very, very well and the perspective one should have is given that

bitcoin is such early stage venture type security or asset, it needs to be done as hedge funds first and pan terra launched the first cryptocurrency product in the u.s. five years ago. we looked at etfs and we picked hedge fund structure i still think it's the best way to go and i still think it will be quite a long time until an etf is approved and it's the last asset class to be approved for etf certification is copper and copper has been up for 10,000 years and it was approved after a very long, multi-year process and etfs and bitcoin have quite a bit to go >> welcome back. what does get you excited, then? what's the next catalyst here and why should it be about an etf and you weren't doing it for the etf. >> yeah. so that's what i love about markets is news comes out and some people take things really positively and make a big deal out of them and some people don't. in the last three or four

business days we've had three pieces of news and the etf being rejected for the fifth time and that doesn't seem like it will be interesting to me the parent company and the new york stock exchange which also owns $42 billion worth of other exchanges launched a cryptocurrency exchange. that is huge news. the other investors including pantera or bcg, microsoft, that is going to be a very profound impact over the next five or ten years for the markets and to my mind, that's what people should be focused on. >> karen >> there's been a few people who said 6,000 is sort of the cost to mine and that should be some sort of floor. i never quite fully bought that and if some people think 6,000 is the floor, then it's the floor. what's your thought on that? >> i think it's difficult to do the mining cost or mining calculations and people built these enormous, big data center of computer chips that are doing the mining

so i think it's unlikely to have any kind of fixed support there. the company might run at a loss for six months hoping that the price is coming back i think there really isn't a level like copper where you get the cost reduction and people stop their minds here there isn't some kind of fixed floor like that. bitcoin was half this price a year ago when it was all working great. so the price could go down, but i really do think a year from now it would be much, much higher than it is today. >> pete, to you. >> it is difficult to determine where to be, how to be and the volume's -- when we've seen the volumes come back, scott, it's moved bitcoin and amd is the way i've been playing it. >> our thanks to dan moorhead in san francisco. we'll see you soon, i'm sure can't get enough crypto? we've got you covered. go to cnbc.com right now for the bitcoin headlines and there's the article up there as we speak. guy adami has strutted his way over to the plasma >> what's he wearing

>> i don't know what that is >> that's uncomfortable. he's getting ready to pitch the one retail stock he says is looking good -- [ laughter ] >> the name and more guy adami is that a good thing when "fast money" returns. let's begin.

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t.j. maxx hitting an all-time high today, in fact. as earnings kick off last week what do we do? do we keep betting on retail what do you think? i think of some of the names you just mentioned they were favorites a couple of years ago at the expense of anybody else a couple of months and really even since black friday is the discretionary names that were left for dead have proven that not only are they running their businesses better, but that the valuations got so cheap that they were interesting and i think you stay in a lot of those names. >> i agree the valuations got really, really cheap, overdone for sure and even though they rallied a lot. so the valuations are relative to the rest of the market and they're still attractive and something like kors today is probably good for macy's and probably do for wholesale. i like it. >> stay long guy? >> i've got a power pitch coming on you saw it before. >> i'm almost afraid to see what's coming. >> do you want me to walk over there now?

>> should i sashay >> the fast pitch and now look >> why is he getting -- why are you -- >> they want me to walk like -- this is going to be crazy and i know people are, like, you're out of your mind and i'm going to pitch nordstrom's why is that? last quarter the stock got obliterated on earnings, but if you looked closely it wasn't an earnings thing the comps were miserable, but they beat on the top line and they beat on the bottom line valuation, okay. 14 times forward earnings and you can say it's ridiculous and it's not ridiculous when you look at the rest of the space. 12% short interest we've seen what happened to the short stock over the last six months and i would suggest 12% is significant and the last one, improving margins and how do i get there? i'll tell you how. last quarter inventories were down 1.9%, down 1.9% and you had sales growth of 5.8%, suggests

to me that you can see a much better margin number this quarter. with everything shaping up, if you look, this stock came back from last quarter. it's bumping up against these levels that we've seen over the last six months. i think like some of these retail names it sets out for break out to the upside and i'll say this, dana telsey, they just raised their price target and the name i think nordstrom has a chance to surprise people on the upside >> all right how about questions for guy. who has one? >> here's my question for you. t.j. maxx, scott was talking about the fact it hit 52-week highs or all-time highs. is this something you would ever compare it a nordstrom because they have nordstrom rack and that's where they see so much growth right now >> sales growth, digital sales last quarter were 29%. digital growth the same quarter the prior year was 25% so you're starting to see them do much better digitally

you talked about it as well, pete the nordstrom story has changed. they had their investor day a month ago and it didn't overwhelm people, but the stock was held in there. i think the setup is such that it could surprise and that's why i'm saying nordstrom's is my power pitch. >> yes, tim? >> quick question, was that blue steel and with the tie, and the wrap around the head and if so, do you think you have more blue steel than derek zoolander >> that's the easiest question you've ever asked me blue steel the movie with jamie lee curtis, must watch blue steel with sad sandler or stiller, they asked me to do it and i turned it down and they gave it to him my zoolander is better than his zoolander. vote >> what are we doing on the fast pitch? >> which way are we going? >> i'm really not an artist, but i'm vying with guy i like it.

love the shashay, too. >> i don't know why i was given a marker y i'm a buyer and it massively has lagged the department. >> that was painful. >> nice job. i think it is all about the rack and guy points that out when you're competing with t.j. maxx and burlington and the rest of them, ross, they're doing a great job with nordstrom's giddy up. >> hard to read. >> the whole thing i like it. >> thanks. >> nice pitch, guy >> all of the way around >> giddy up. >> what about you? did it make you want to buy the stock? you can vote in our twitter poll, cnbc fast money and we'll reveal the results later in the show, plus the california wildfires are blazing across that state and it could disrupt a growing industry as well hot. we have those details coming up in the nasdaq.

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this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. >> welcome back to "fast money," the raging wildfire in california now the largest in state history still growing, as well what could it mean for the cannabis industry? our aditi roy live in ukiah, california with that story

>> that's right. firefighters here at the command center for the mendocino complex fire are desperate to get ahead of these flames. right now more than 23,000 people have been evacuated and among them are some cannabis growers. the mendocino complex fire is now raging across more than 300,000 acres. mendocino is one of the three counties affected by this particular blaze and it's also part of the so-called emerald triangle the pot growing capital of california cannabis farmers are used to the threat of wildfires. last year some of the cannabis crop was destroyed by the wine country fires. we met up with a cannabis farmer who lost all of his crop and also a cannabis company called canacraft who lost inventory during the northern california wildfires that happened right before the harvest it's virtually impossible to track how many cannabis growers are affected by the current fire given not a lot of them are

licensed even some of the licensed ones are hesitant to come forward it seems these fires won't have a mass effect on the statewide supply of legal weed for those growers who may have lost crops, they face an additional challenge a lot of them don't have insurance, and because of that, when their crops do burn down they face the additional threat of going out of businessal together back to you guys. >> aditi, thank you so much for the very latest there. for more on this let's bring in a man who was born to work in this industry, smoke wallen with vertical company, a major pot player in california good to have you on. your reaction first and foremost when you see the kind of pictures that aditi is showing us. >> tragic. those fires are awful for everyone involved and our thoughts go out to the people that are in that area. it doesn't affect us very much andy woo have a massive indoor operation and our operations are

in santa barbara you do the best you can to mitigate this kind of situation, but i came from the wine and spirits industry and there's been wine growing in california for a long time and they seem to work their way through it. >> you want to remind people who don't know what your business does as it relates to marijuana? >> vertical is a seed to sale and seed to shell company and we cultivate, manufacture edibles, vapes and all of the different product category, beverages have full distribution in sales we're one of the largest scale operators in the country and we are mainly california and we have operations in several other states, as well, and you're looking to go public at some point, correct >> we're focused on executing our plan and we're operators and they're buying up assets and portfolio plays and we're an execution company and we're focused on a scale business and this is the biggest growth opportunity of any company i can

remember in my life time and i can go back to prohibition and the repeal of the alcohol prohibition that happened in 1933 this is an industry that could be as big as the current alcohol business which in the u.s. is $260 billion at retail sales >> so smoke, that's what's fascinating here we tend to focus on production and this is an awful firestorm in terms of production, but to me this is a consumer products story and cpg as a sector and as a way to focus on investors, i mean, what's happening who is carving out brand, because i think brands matter in cannabis and people underestimate the impact in the same way the alcohol companies are investigating this >> you're exactly right. brands are the key to everything we have large-scale production so that we can fulfill the needs of our brands. you can't make a brand unless you can fulfill it and deliver the same brand experience each time for a consumer. we are building all of that back in infrastruck are so that we can build brands and some of

which are ours and partner brands that are different stages of launching in the california market and let's face it brands are built in a couple of places, the coast and southern california is as good a place as you can imagine to build brands and we'll take those brands and the recipes and the packaging and license them and put them out in all of the other markets that are available and we're up to 30 states that now have some form of legal cannabis >> a few weeks ago we awe say big raise for a company called acreage and gave them a certain valuation. why do you think that your story is more interesting at this point? >> those guys do a nice job and ours is an execution play. in 13 states those guys hit a certain number next year and we're of similar scale and we can hit it all in california and it's about a scale operation and look, the capital is chasing us, right? you see the valuations in the canadian market and it's because there's limited options for people to invest in this market and in the u.s. market which you

know, is arguably going to be $100 billion plus market in a few years' time. so we're seeing new capital inflows into the space my hat's off to kefin and the team for raising that kind of capital and they pave the way for us and we're doing similar things >> i appreciate you being here >> thanks for having us. >> timmy >> none of the cannabis names are cheap. so when we talk about the sector we want to give people some sense that you should be buying global production stories and the guys that have a first mover advantage and this is a biopharma story, and we've seen this with some of the other names that have been carved out and getting fda approval and that's what i would encourage investors to do. put a basket together and get your exposure to the entire sector because frankly, i think the valuations are aren't what's interesting. it's the prospect of the opportunity. >> anybody else? >> quickly, you saw

constellation brand made an investment and if you don't think big-cap farmal get in soon you're mistaken. tim mentioned this disrupts a number of different industries and whether you like it or not it's coming and the federal which a lot of people thought was a couple of years away is closer to 12 months away. >> that's the best way to play is to get it on the periphery. if you get constellation, you've got solid businesses that you know right now are going to be the backbone of what you're investing in, scott. but then you've got the kicker on the outside of that. >> we'll step away and on the other side we'll do final trades when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done. it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪

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okay forget about the vote on guy's pitch for nordstrom. that was a loser >> you said it with such glee. you came right out >> we'll vote on this, though. who does a better blue steel, ben stiller or guy adami >> look at that. >> what do you say >> similar >> it's uncanny. >> okay. time for the final trade we'll go around the horn pete >> i own stock i believe in this big time celgene. >> ben stiller has someone

chasing him down and it's guy adami. >> alibaba that's been chased down. >> yeah. >> karen >> footlocker. >> okay. guy. >> giddy up on that nordstrom, i don't care what the the twitter pulse says. >> thanks for watching "mad money" with cramer begins 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 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. you may think the stock market is built on a foundation of logic, but you'd be wrong. investing in stocks is by nature a leap of faith.