preserved and rare the second one is my favorite. it's called the blue hawaiian missionary and this is also from the 180 ohs. between 500 and $750,000 guys. we have the results tomorrow back to you. >> we look forward to those -- you'd be annoyed to use one upon a letter robert frank that's does it to be "closing bell." >> "fast money" starts now "fast money" starpts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. the traders are pete tharjen tim seymour on guy adami and karen finerman tilray getting smoked after hours. convertible note offering raising capital. we tell you what it meansfare the kbz craze backup but the general electric sharmds in the dark as the company grapples with saving the dividend while executing a turn around. bob nardelli speaking out for the first time you won't believe

what he has to say we start off with the market showdown of the decade a chicken fight. yes. chicken fight rage and stock flies high the dow closing at a new high. 7-year high as the 10-year hit highs of the dat of the day stocks began to fall closing near the lows of the session does something have to guf if they continue to rise together what to buy now. >> the chick be -- you have to be particularly good at it obviously. >> yb, years of practice. >> that's his dance. >> when i got married they said no one in the electric slide and none of the chicken dance staff. you play that you are out. when i got to other weddings the first thing i say put my hand up can i do the chicken dance what was the question? does something have to give. >> stocks or -- >> six months ago the concern was 10-year yields above 3% derailing the market now we are not talking about enemy north of 3.1%.

something has to give. but it doesn't have to happen in the next couple woks the market can grind higher. what do you buy? kudos to tim but leverage energy place still works. phillips 66. psx, fair valuation, apache apa, refiners worked a long time. and health care is under everybody's radar. valuations are reasonable. stay there as well. >> what do you think, karen? >> well, i think i agree something has to give. but i think it's a little sooner than guy thinks of starting with earnings we have the elevated levels of equities, have having to have better earnings. the bar is medium high already that makes me a little bit nervous. starting to looking at the vix buy additional prosecution in probably but i didn't sell anything today. >> when the earnings calls come around they're looking out to 2019 you think a ceo is going out there with the unknown of the tariffs, unknown of the rising rates, unknown of oil prices

where they are high compared do last year pb they are going out saying we know we are earning that 2019. or do they give themselves a little leeway. >> we know which management are conservative and which are not process. you think of the comments in the context of that. when you think about the uncertainty around trade we are getting the comments seeing in the fed regional surveys see going from companies on the calls the dollar quietly moved 2% in the last four or five days as well pl at least on the recent lower. higher rates mean a lot. even if this is just the mechanical element of doing a valuation on a company, the discount rate, i mean if we're at 3.25 that's different than 2.75 i don't think it means a lot i would say as much rising rate environment, spread -- multiple compression for the s&p is what you get. it's not going to expand in this environment. sorry. >> it's a lot -- a lot is riding on the earnings season. >> absolutely. and unfortunately for all of us we get to go past the trade tack

and back to the earnings and fundamentals what's going on in the companies. but you know you talk about energy how about the fact we talked about oil. if it can grind between. 3, 75 there is a lot of promise for different stocks lack lagging. i put exon in there you go back a month exon trading 78 now 86 chevron is up as well. you can still be in the big names with great balance sheets with i mean credible dividend yield and all exposure here in the u.s. and internationally you look at permean, the areas we know there is great finds already already there nowious pull it out. i think the energy spot is interesting. guy brings up the pharmaceuticaling still sheep. making the great run still clean. you go back to may when it started and kicked off the moves to the up side this has been a move that's been slow and steady to the upside. i'll say it again. it's why i own financials be with jp morgan city citi bank of

america. they had the big run a year ago. have been pausing since. but you look at the fundamental story. if we get earnings season sooner other later when when you see the rates up at 3.20ish. when you see that i think we finally see the acceleration out of the financials at some point. but i'm willing to wait. i've been patient and i continue to be patient. >> the banks -- certain banks concern me goldman sachs now concerns me i was a goldman bull for a long time they seemed to have changed with new management they have to prove themselve now. morgan stanley at a 52-week low. there is clearly something going on there the bigger banks i think do make sense. >> the true banks. >> the true banks make sense i think citi at one time book, close to one-time book, probably makes sense. maybe they have more exposure in europe and that's whiary they're not getting rewarded one of the most bet an is citi bank at this will level. >> italy has a bad headline and the banks trade roar the space compresses here and banks trade lower.

there is no benefit of the dow given banks when it comes to fundamentals. >> at the moment right, but we see periods where they are out of favor and in favor. i would not want to try to time that i like the valuation here. i'm okay -- i'm with pete who i think of as a much more of a trader oriented portfolio manager. but i will wait it out here. i'm okay with it. >> you know i went back and looked at pharmaceutical and pfizer frinz for instance. i bought that a year and a half ago. i'm still waiting there. i think there is plenty of upside. >> you owned a stock 4.5 years. >> way back when >> wow. >> i'm building more and more. i'm getting older. as i get older you see if you look at my disclosures right now you actually see more stocks than you do options right now which is highly unusual. and i think a lot of that is opportunity and who do i think -- when i look at fundamental story of most everything and why i own them as stocks, the fundamentals are there. it's not just about growth but it's the fundamental side where i think they are inexpensive with growth and that combination is something that i usually will

own the stock under those circumstances. i want to trade. i'm going to definitely go back to the options i still have a lot of option positions. >> see that question on pete's rates are higher now it's under my head. >> funny how that works. >> amazing they switched the shot goes to the other person. see look under all of us now. >> that's why i brought it up. >> bottom line rates are higher. the only thing that's obvious to me is that you buy assets. you buy assets we have an asset reflation look at commodities look at ag trades most aicp they are breaking above multiyear rages this is assets inflation and levels. we talked about why it's negative for the consumer. knows are the trades, energy as pete said. it's totally lagged. osx relative to the s&p down 10% last month. >> one thing important, that number out this morning was so strong, right, that's obviously what set off the rate move >> right. >> that was so strong, that does

bode very, very well for earnings when you look at components of that number. that hopefully will see a good earnings season. >> as stocks hit a report highs one of the hottest sectors has been health care but let chart master says there could be trouble. carter werths it plasma to break it down. >> for a low beta area of the market it's too far too fast from my seat i thought we'd examine that judgment first of all, in terms of performance just what you said it's been hot. what i have here is of course comparing health care and in each slide it's going to be the top three sectors over the period above for the past two months you see health care versus media with versus industrials and the market you have almost a double versus the market a lower beta area of the market that much more impressive. thee month performance health care, tech 10. s&p 8. let's go further here is five months health care, more than tech. more than consumer of course the amazon home depot.

at this point being up that much 7 oh oh basis points over the s&p, what has happened in the past when this has happened? i want to look at this statistics here the kpartive chart. first, look at how the spread is starting to widen. there was an opportunity in may and june, a lot of the opportunity has been exploited and in fact you see that here. at this point i'm taking the contrarien view and make the bet this is a little too heit and right to fade it talk about statistics. there have been only been five instances can consider that since 1989 when gig data begins when in sector up 16 months in a row check. up 15 more in that period of time five times this is the forfeiting the probability of that is that. it's basically zero. now, what has happened after that, one week later, three weeks later, six weeks later is it a crash? no does it meanmaker is a disaster? no but there is something too

far too fast it's a little steep. fade it. i want to pause not just hang around another way to look at the concept is where you are in relation to trend. this is the seconder it has big names like am again j. and j and here it is related to the 150 day moving average how far above the line final chart. the two-panel chart tells us where we are now every time that we have gotten basically 10% above the 150 moving average this has hooked down the stocks argue for it the sheer angle of the chart, last one, this is just unnatural. this is almost as though it's on autopilot. i want to make the bet that this is going to fade and back to the highs of january. a normal check back. take profits, write calls do something. that's the judgment. >> come on over, carter. >> come on over. >> what is the change did you just say uni lateral decisions. >> it's always been a uni

lateral decisions. >> the alternative i could say more than one thing. >> oh that's the possibility i never entered. >> i like that. >> all right i have a question for you. health care is a broad sector. are there subsectors that defy the broader health care chart? >> right well there are two circumstances within the sector laggards started to come back to life some of the bombed out biotech names come off the bottom. and then the bullet proof names you know it's united health care, isrg. things with the steady upfriends impervious but the net of it at all is relative to the market for sector lower bet 'thain the market the sector has gone a little too popular. >> are there other sectors you see when in rice lake to the s&p 50 oh you see the divergeens where they should go up to meet the s&p performance or go down and check back like health care. >> if you think about the big -- the big decision everyone has to make is the sort of tech and/or

the credit growth trade over and what we know is the tech sector relative performance to the s&p peaked on the 25th of june and it's still now here october 4th. below where it was the sector is ascending but there is no avila. because we get slippage in the key names semi conductor even apple relatively performance stalled a bit. from my poif what we have is a lot of exploitation of potential. the laggards of that were lagging have been played utilities were played. reits were played. even staples came up there isn't much in the way of lagging areas. for the market to go higher you need what you were talking about, financials to come to life. >> that was sort of my question. is there anything in the s&p 50 oh over the last couple weeks that indicates we start to maybe roll over or are putting in a potential short-top. >> this in terms of the reference point we had the spike, the friday january 26th the s&p is actually at that level. the s&p is above that. the s&p equal weight is below where it was on january 26th the mid-cap index is below where

it was january 26th. the transports are below meaning it's the clustering into a few names that have made the optics the headlines new highs the aggregate is not at new highs. the aggregate stock, the median stock is no where near where it was january 26th. >> it sounds like you say the risk is to the downside on the broader markets. >> a lot is priced in. then this, the way the consumer names are acting those were mried. losers like chipotle off the bottom, massies showing wear and tear as we contend with the january spike high it doesn't feel like the setup for something huge to the up side. >> carter thank you. carter werth of macro pete. >> i look at health care that was specifically what we were looking appear what he was talking about. i see this and i tell you i soot charts i understand they have ricin like they have but the fundamental story is there look at multiples and growth there, i think it's. >> to heck with carter and his charts. >> you know we put together our pieces of the puzzle right for me charts is towards the far

right for me it's one cht last i look at but still important. i look tftd ftds and fundamental are there. >> check out shares of tilray getting crushed after hours. the stock announcing new plans to raise capital we bring the details plus former general electric executive bob narldy with a road map to save flailing ge. he tells us what it is foments ago a top financial adviser in wall street on embracing bit skin joining bit wise to explain why. wereiv a le from new york city in times square. much more "fast money" right after this

welcome back to "fast money. we have a news alert on tilray getting smoked in the ar hours session. adidi roy has the details from san francisco. hi, adidi. >> that is right tilray shares down about 6% after hours. this after the company announced a $400 million private offering of convertible senior notes. the notes or debt that can be converted to stock due 2023 will be sold to qualified institutional investors under u.s. securities laws and accredited canadian investors. the company will give the initial buyers the option to purchase up to an additional $60 million of the notes tilray saying the notes will be convertible into cash, shares of the company's class 2 common stock or combination of cash and shares of tilray as class 2 common are common stock at tilrays election

the company say going plans on using the money for working capital, future acquisitions, general correspondent expenses and to repay a plorj last month the ceo talked to jim kramer about raising capital especially since the company has less cash than rival canopy growth. >> you have less cash than canopy they have 5 billion isn't this the time to raise capital, there would be nothing wrong if you said yes we need more capital. >> we obviously need more capital. >> yes. >> yes which we said in our prospectus the intent is to build a global company. we're in 12 countries today on five continents. it's very clear that we'll add additional countries in the coming years and so that requires us to increase our capacity substantially as we introduce products such as these and medical products around the world. >> price volume and terms have not been announced at this time. it's been a volatile time for

tilray shares which plunge as much as 20% yesterday after pepsico told investors it has no plans to invest in pot the stocked rebounded though in today's regular session. mels aifr, back to you. >> adidi, thank you. now our tim seymour is all in on this space he is long a number of names since on a advisory board. ashley for three for all of the disclosuring can you go to fast.cnbc.com. seems like a prudent thing to turn to you. >> i think everyone was expecting this they are going out to make acquisitions and agree they're in 13 countries. that's the business model. when what we see across the board, i have seen so many deals over the last two weeks. there's been u.s. companies. the trade right now has been for the u.s. guys going to canada and canada going to the u.s. the canadian market machine is using their opportunity to raise money illegal in canada to get u.s. companies to market a lot of the canadian guys with balance sheets, tilray wants a

big are balance sheet to consolidate especially in the u.s. the u.s. trade is red hot. you have ipos in the last couple weeks. a fewer fla in flan is a company doing well making money cash flow positive and people are going after the u.s. companies that have been in business a linc time making money. >> it's interesting, you know they just came public not long ago. >> july. >> beginning of the summer the five-year note looking what they are doing five year hap. you have to wonder if the move today, the five year at 3.05 with the extraordinary stock price performance, i mean god for them for doing this. they should and certainly makes you think tesla or anyone considering any kind of condition convert rates are moving you got to act now. >> act now. >> yes. >> all right general motors showing sients of life after teeming one honda karen finerman explains which now could be the best chance to buy the stock. i'm melissa lee. you're "fast money" on cnbc. in the meantimes time here is what else is coming up on fast

>> i don't think the worst is over. >> announcer: that's what former g.e. bob nardelli was said after the blue chip was booted from the dow. what does he think now find out. >> announcer: plus pete najarian stepping up to the plate an industrial size pitch. he explains why this stock sitting out the rally today is headed for a breakout. more "fast money" after this

welcome back to "fast money. it has been a rough year for g.e. as the stock tumbled about 50%. the company's dividend is in question now is the worst over or is there more downside. dom chu is in the newsroom with that. >> picking up bottom general electric stob has been a fool's errened for sometime. chart watchers are putting different levels on the stock that need to be checked off before a true bottom can even try to be called after getting kicked out of the dow and two

crowe depart yurs. and the experts looking at fundamentals from the wall street cell sellside analysts to the credit rating agencies have conditions as well the latest salvo came from s&p downgrading the company to a triple b plus rating from a prior single a rating meaning it's now three notches above the tread he hadded non-investment grade or junk status in looking at the downgrade from s&p, looking at key business units at g.e., specifically commenting that the aviation and the health care units have a substantial competitive advantage. even if they say g.e. were to spin off the health care biz hypothetically, the outlook for the company would be stable in their opinion. it even said the embattled powers system unit is solid despite the near term challenges it faces the bottom line for investors is that there is still a lot of skepticism about calling a bottom, even with newly minted ceo larry kulp coming in

and analysts are looking hard at whether g.e.'s dividend payment is actually safe with the new regime change. but that stuff we just mentioned will be part of the g.e. ultimate investment thesis in the coming months and years, something certainly to watch back to you guys. >> dom, thanks dom chu in the numerous. for more on the future let us bring in bob nardelli, a former g.e. ceo former chrysler chairman and ceo. former home depot but he is a friend of the show that's what he is. bob welcome back. >> good to be back. >> do you think the bottom is in. >> do i think the bottom is in well, listen, i have a lot of respect for larry kulp, a man of action if you look at what he did at dan a her, a breath of fresh air. he is from outside he respects the past but won't live in the past i think larry is going to move at blink speed that's one of the questions and

issues we talked on the show a while back about john. he had been there 30 years and the speed with which maybe the board felt he should be moving and wasn't. >> do you think that the path that john flannery laid out in -- and was approved by the way by the board including larry kulp at the time is the right path if kulp is operating at blink speed is it enough to move at that speed on the path already laid out by flannery and presented to the board. >> i think -- i think what larry did was concur with the plan but obviously the plan didn't develop the way it was laid out financially with speed and so forth. i think larry is looking at the dividend we talked about that earlier i think, you know, it probably needs a good hard look we talked about maybe not cutting it to zero because some investors are going to need to have a penny or two in dividend to stay, as you indicatesed. i think that, you know the baker hues thing that's been talked about is a way to get cash

the latest forecast where power systems is dragging on cash. they still have over $30 billion pension liability. over $120 billion in debt. if you look at, you know, the impairment charge it took on the biggest acquisition in g.e. history, to turn around with within a couple of years and have to take that kind of charge on g.e. power -- majority on g.e. power systems, france is still holding g.e. accountable for the labor they committed so i think, you know, larry has a number of challenges yet i know john inherited a bunch. larry is inheriting a bunch. and he has to move expeditiously, quickly and tri to right the ship. when you have that much change -- in 125 years we had five ceos. and now 2 in 14 months it's unsettling. to that point we have seen 16 officers, vice chairman leave the company in the last 14 mohns. john rice, beth comstock,

borenstein it's a significant bryan drain while facing all the issues. having run power systems, let me just say that the ox ox i'dation the blades are the highest tech metal urgy inside the turban. >> morale at g.e. -- it's been a difficult place to be in a long time is larry kulp enough to help turn things around there. >> i think you are right i mean, the majority of the calls that i get are what do you think about my pension people that have worked there 25, 30 years are concerned about their pension and the viability. i think any organization needs stability, continuity of direction. so this change in 14 months doesn't help steady the ship hopefully larry will get in there, will be very direct, very candid, very deliberate in decisions, consistent in

decisions, not waffling back and forth and that helps it's not going to turn out overnight. it's going to be cmo me a be prove to me we have good direction and can turned around even with the challenges financially and relationally. >> you had the second most important job at the glory years. what at the timive advantages remains in the company investors want to know what's the jewel that we should be following. >> there is no question i was privileged to run power systems with a fabulous team and we went from worst to first while we were there. and we were doing about 300 turbines a year when i left g.e. power systems. one of the things you have to rook at for power systems is not just the issues but backlog. how many turbines do they have on the books for 2019? that will give you a tale of the tape and you got to look at the a number of of longtime service

contracts because that was the fuel that kept them alive through the downtourn. and both of those are running off. we have to be thoughtful at looking at the business. but aircraft engine is solid as long as boeing does what they are doing they are helping pull it through health care solid business as was reported i think if you look at, you know, john committed to sell $20 billion in assets. well he sold transportation. but no money until next year the lighting business, they are trying to sell still a question mark baker hughes got to make a decision you guys were talking about oil earlier, 75 or better. now is a good time to think about that i think larry is a smart enough guy he will figure it out and really deliver a message and a plan that's executable going forward. >> but what dan a her was requiring and integrating. they were great at that. i don't know if you can have the

same playbook now at gep given everything you just talked about. can he change playbooks i guess is the question. >> george sherman from g.e. was at dannaher previously larry took over from that. larry and i worked together at case construction equipment. solid guy. solid delivery the issue here is not acquisition integration. but this is a solid industrial manufacturing guy. he knows what it takes to be lean he knows about cycle times he knows about reducing you know from orders to delivery. so he is going to get in there and really understand these businesses that need some help that wasn't particularly the case of the last two gentlemen. >> you know, bob looking at your resume, you know about manufacturing. you know about the consumer and how to retail things through home depot you know about cars. with you kor being the chairman at tesla. >> at tesla well i know. >> there is a job opening. >> there is a job opening.

but not all jobs are for every person you know, i think -- i think they'll find somebody that can work with mr. musk appropriately. i'm good >> are you not a believer in the tesla vision in terms of electrifying vehicles or the company itself. >> i don't want to take my -- my little flippant answer that way. i think electric cars will happen i don't know that they're happening at the rate and spade that are projected there i think there is a transitional period where you're going with hybrid because there is still the range anxiety issues consumers are facing there is not enough recharging stations out there if you have short commute you are okay but when i get in a tesla, most of the times i say gee it's warm in here don't turn that on because it drains my energy. there are some issues to overcome it's a fine car. they got to be able to produce them they got to be able deliver them, maintain them. and those things are yet to be worked out >> okay. we'll leave it there

thank you. >> sure. >> bob nardelli what do you think of g.e. >> what do we do what do they call that the smart board. >> the ven diagram. >> we did a the more you know. >> the more you know. >> we knew more after karen was up there more so than when i did, without question. one of the things we said about g.e. they are a viable business, seemed to addressed all the issues or trying to address ep them but a huge capitulation in terms ofville. traited 140 million shares 2.5 times normal volume. at least from trading perspective you have something to shoot against on the downside. >> my issue mentioned pension liability. debt, and they still got to make some of the sales. everybody knows about what they need to sell does that mean they're in a position of power or not because of that i actually own puts in this stock because i ookd a at it the day they replaced the ceo and said this is not a fix -- a quick fix. >> larry kulp that day. >> that's something that's going

to -- he will probably get it done and it seems like we all have confidence he will but in what time frame so in the shorter term do you see the stock going higher or lower. i see it going lower bau because i don't like the cash flows. i love the business. obviously achgs is great that's fantastic but that's ben known healthcare pretty good that's great there are other pieces to the puzzle and the pieces, the rest like anchors pull the stock down i think. >> i think it trades cheap some of the parts and the big part of that is what is the energy business worth what is baker hues you can track it in terms of market company. and baker hughes has gone sideways down small. i actually think the negative volatility is out of the stock i realize there could be a balance sheet issue around the corner but i look at the ownership in line what guy was saying i don't see ownership or sponsorship of the stock i think the shorts are out which means they could pile in too. but i think that's good news for the stock. i think the stock has been obviousened by the people that could including the big

institutions. >> i think if if they cut the dividend that's good news for the stock as well. >> yeah. >> hopefully that happens. >> we'll see the options market speaking of dividend cuts is implying a g.e. dividend cut and implying it could happen sooner than you think. mike in san francisco. >> sure looking at the options one of the things we see is that there is at least a 50% probability that the dividend is going to be cut by september of 2019 and possibly earlier given the fact that we have kulp in there now. and i think that some people are looking at that optimistic cliically with you we saw that in the flows today the november calls they traded about 37 cents that's an way to make inexpensive bullish bets that maybe the worst of the story is over now. >> thanks for more action "options action" keck outs the full show on friday 5:30 p.m. eastern time still ahead wall street legend ric edelman made a bet on bitcoin. what has him bulled on the crypt

of specie. plus pete getting ready to pitch an industrial stock hitting the an industrial stock hitting the all-time hh, tighewhat do you lr when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. "fast money" returns yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide.

- she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

welcome back to "fast money. time for an instant replay back in august pete stepped up to pitch caterpillar. >> the interesting part about this company is from a fundamental perspective when you look at where they are right

now, the fact that they trade at basically call it at 11 or 12 pe on the forward side, i think that says a lot with about how how inexpensive theory versus the rest of the competition. >> that was a good call. cat is rallied up more than 10%. >> at a boy. >> amazing what to you do with the stock. >> i hold it adding to it i think it goes higher still very expensive. >> since cat was a home run give us another fast pitch. >> all righty. sticking in the same world but here we go with honeywell. david cody was there forever and everybody loved opheim he is no longer there but he was replaced by by an insider there over a decade. and really loves to work from the standpoint of organic growth that's something i think is going to be very important really impressive guy. he has done an incredible job already early. has done a lot of different things to try to reshape the company process i think good forward, very proactive ceo. i look at the buyback. you talk about the fundamentals, it trades at 20 pe present

sounds high but looking at the groekt it's not that high. and i think it's probably owe probably right where it should be might be a little bit of room to the upside for that to expand. the buy backs are strong and they've bought back almost 5% of the stock in the last six years or so. when you look at that combination plus the dividend yield this is a great fundamental story as well. the impressive growth. looking at the cash flows, the cash flows have jumped 29% year over year. that's impressive. i like seeing numbers like that. but also on top of growth how about the earnings looking for 12% gain they beat that. looking for revenue to grow 7% last quarter any beat that. they have growth i think there is strength there. this is a company with plenty of room to the upside how much is it a lot does it sprint no it moves like cat where it can move to the next levels and maybe you'll get about 10% might take a -- i think probably a couple of months. >> pete, are you worried at all about the recent

transacquisition, some people thought it was dlutive if nothing else may be distracting. >> i'm not worried about that. that's part of what we see we have a new sheriff in town. i think the new sheriff wants to show everybody what they want to do we are seeing some of the types of moves overtime in terms of how g.e. reacts, whether selling off or maybe the potential even some day of moving to other areas. you have to be proactive this is not a market right now where can you just sit there as the ceo and say you know, this company is running itself. i think you have to be very, very -- not reactive but proactive. >> no more questions time to vote are you buying pete's pitch on honeywell. >> guy adam. >>y. >> honeywell is like music to my ears i sayy terms of new sheriff you know his name, reggie hammond. >> yeah, i'll be cool. >> reggie hammond. >> karen. >> i'm not -- not surprising for me i love pete but pass the

honeywell pb too sweet, too expensive but i do -- yeah, too expensive. >> sorry pete. >> that's okay hey. >> tim. >> it's been tough to bet against these guys in the sector i'm a yes with the pete's alter ego. thank you very much. >> one sell on this desk but are you at home buying pete's pitch in you can vote on our twitter poll at cnbc "fast money" but the one time bitcoin bear ric edelman made a move into the cptryo space. what made had him flip the coin? he will be here when "fast money" returns

welcome back to "fast money. gm rallying today after it said it would team up with honda to make a self-driving car. phil lebeau has more on the story. >> melissa, this is a significant investment by honda as it tries to jump start efforts to develop autonomous drive vehicles here is the deal between honda and gm honda will invest 2.75 billion in the gm subsidiary cruise. including $750 million immediately in order to take a 5.7% stake in cruise and together honda and general motors and cruise will develop and build an autonomous vehicle. here is a teaser image they released today of what that vehicle might ultimately look like hard to make much out of that image there. by the way, it will be sold worldwide, though there hasn't been a taergt target date for the vehicle.

this is the start uts a race between a number of auto makers and tech companies, many of them partnering up to develop and put self-driving vehicles out on the road you remember waymo start having the public use of its waymo self-driving minivans in limited capacity in the phoenix area by the end of the year. general motors says its self-driving vehicles developed by cruise should be ready for use by the end of next year. then in 2021 you haverd bored ford, bmw, working with intel. you have a number of other firms, toyota and uber working together a all looking to have some type of a vehicle out on the road either being used by the public or being used by corporations but out on the road in every day use by 2021. for general motors, the importance of the deal is that it now gives a valuation for its cruise subsidiary at 14.6 billion

that's an increase from a couple of months ago when softbank made its investment in cruise, the valuation of cruise at that time was $11.5 billion. melissa, back to you. >> phil, thank you phil lebeau in chicago and karen has been bullish and gm this will have implications for gm's valuation if it has 75% of cruise and that's worth $15 billion or so. >> it should. >> it should. >> here is the thing it should we talk about being patient long-term investors i've held it round trip i've done all the waiting for you. this is a substantial amount of money for the cruise division. comes out to $9 a share. when shoft bank made the investment the stock shot up to $44 a share. cruise is valued higher. the stock is significantly lower. right? so one of the things that i always look for is, all right, what could change things up? could they take cruise for a spin >> ah-ha.

>> see that. on the call. >> yeah. >> you are all over it. >> yeah. >> ten second delay, i mean. >> that would be interesting i think that could -- that could unlock value i don't know if that happens in the near term. it won't happen near term. but the potential is out there it's something they should consider. >> watch she will start lasting. >> we all know this stock is cheap. how cheap. >> how scheep is it. >> how cheap >> apparently there are 505 stocks in the s&p 500. i always thought it was 500. third from the bottom. >> really. >> third from the bottom it's not in the top 500. it's 503. >> wow >> that's ridiculously cheap look, what's weighing on it is the trade war. that's part of the -- their sales were down. but the multiple reflects a peak already in autos it fully reflects that. >> meanwhile, gm -- it's global motors by the way. half the stuff is through jv

especially in china. the trade war doesn't hit them the sail way people price it in. this is supports the business of the av buzz business they may have the lead. >> this is almost like a tag team fast pitch for gm, how do you vote. >> i just got the joke about the cruise things number one number two third to last on the last is like my college transcript, number 2 i've been a bear today i'm a -- 32.5 was the low in may of 2017 traded there again you have something to trade against. >>fare more on autos we turn to trading nation .cnbc there is a great story ric edelman went fill crypto joining the advisory board of bitwise. he will be here to explain live athe sdt naaq in times square square fo and online equity trades are only $4.95...

i mean you can't have low cost and be full service. it's impossible. it's like having your cake and r fast right after thisr award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. the riskiest job. the consequences underwater can escalate quickly.

the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org

welcome back to "fast money. we have a bitcoin alert. moments age bitwise announcing the legendary wall street adviser ric edelman joined as an investor and adviser we have the legend himself from san francisco joined by bob pisani bob, why don't you kick it off. >> hello, ric he hadland pnl, old friend very interested to hear about the bitcoin interest you told me every financial adviser needs to educate themselves about the sfas and consider allocation for clients. ric, why are you bullish on

bitcoin? and are you advising people to buy it right now >> well, i'm bullish on it because bitcoin is now ten years old. it's a $200 billion market and crypto total bitcoin is about 40% of that clearly it's here to stay. there is massive amount of investments in the blockchain and crypt of assets specifically and financial advisers i'm discovering really don't know much about it. no more than the clients do. which means advisers can't effectively give advise to clients that the clients need. should i buy bitcoin or other crypto assets? if so how much, how do i do it, et cetera? my goal is the help raise the bar of awareness, education, understanding, knowledge so advisers can be of great are value and help to clients. >> do you think this is a separate asset class like stocks, bonds, commodities, at five years from now you'll be talking a asset allocation of 5% in bitcoin or crypto along those lines. >> i'm not sure on the allocation, one to five.

but yes i do believe that crypto assets are an asset class bab, a store of value like gold and precious metals, oil and requests with, natural resources and energy yes it's an asset class, here to stay but most people today don't understand the blockchain. don't understand crypt off assets still call them cryptocurrency for example. we need people to be more aware of this. and the problem is, bob, that there is virtually no federal regulation at this point so it's the wild west. there is no easy way for investors to do it we are not encouraging our clients to buy it yet because of the wild west environment. there are a lot of frauds and scams. but the day will come when i'm convinced when the s.e.c. creates or allows a bitcoin etf that will change everything. >> you know as well as i do the s.e.c. put up a high barrier they made it clear they are not prufgt any bitcoin etf until you get around the custody issue and about the fraud issues that are around there.

>> right. >> are you confident that the issues will be overcome and we will get the bitcoin etf and do you haveny thoughts when this that might happen. >> i applaud the s.e.c. efforts. their job is to protect the american investor. they are raising the right issues and the bar is high as it ought to be. but i'm convinced that the industry will meet the s.e.c.'s requirements and resolve the s.e.c.'s concerns. when that happens you'll see a bitcoin etf. when is it happening in it could be two months, might be two years, we don't know but i'm confident that one day we're going to see it happen and that means you need to be prepared now raise your level of knowledge ar woo awareness. understand the marketplace it is an independent asset class that's not correlated to the stock or bond market and determine if it makes any sense to be an allocation in your portfolio. and work a financial adviser who knows what they're talking about. at edelman financial we were ranked the number one advisory firm in the nation by bairns

we recognize the importance of this and stepping up our became for for the benefit of our clients. >> just to be clear you are not telling any clients to have an allocation in bitcoin at this point. why wait -- if you are bullish bitcoin as you say why wait for the etf in why not own bitcoin or whatever other crypt of currency and hold it what's the difference? >> the -- and that's the frustrating element of it. because the s.e.c. says that bitcoin is not a security. and because we're registered with the s.e.c. and we only -- in our practice use 4 d act products registered by the s.e.c. under the act in 1940. we can't tell a client go to coin base or invest in a private fund such as bit wise i'm a fan of we content have the ability in our financial planning practice. therefore it's limitation. one of reasons we are frustrated we'd love to see the etf so weld have the opportunity to give our clients that investment advise.

an. ope you cope us posted, ric. thks >> ric edelman and our bob pisani still ahead, final trades.

welcome back to "fast money. what's sweeter than honey in tony braxton don't break my heart. a big one for pete's honeywell pitch the time trade looser pete najarian what do you say. >> i'm going to caterpillar. it's going higher.

too cheap. >> similar vain vein ag stocks. >> happy birthday to my husband. a little gm. >> happy birthday lawrence. >> lawrence apache comes out apa in the old days. >> see you back here my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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 -- my job is not just to entertain but to educate and teach you. call me or tweet me @jimcramer as we head into friday's incredibly important payroll report, you have to keep in mind that we have a real goldilocks