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tv   Fast Money  CNBC  October 22, 2018 5:00pm-6:00pm EDT

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translate here. >> neither did the 20% decline in china. >> exactly. it works in both directions potentially. >> mcdonald's is going to be -- >> that's when it really starts to get noisy with earnings in a good way, probably. >> okay. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market side overlooking new york city time's square. tonight on fast, a top strategist on wall street says we're enduring post traumatic volatility disorder but he says that's what makes it the perfect time to buy. he'll be here to explain why. plus is the potpocalypse here. we have stocks getting crushed today. our own cannabis king is here to tell us what is calling this stock to cool off. the nasdaq jumping today. it all comes down to a matter of
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crush. the biggest players are in the spotlight, microsoft, amazon, eight, intel and visa. investors will be hanging on every word as many of these names have started rolling over this month. despite the action, can you trust in tech to get the rally back on track? >> that's one of the worst billy joel songs. >> i agree. >> you hear the ding. >> putting that aside -- >> we needed a matter of trust songs. >> i'm not necessarily sure we can trust in tech. if you're banking that the market's gieng to renew -- going to renew this rally, i think you're swimming in the deep end of the pool. the one that sets up most interesting for me is intel. it went from 45 basically to 58 round trip. here we are at 45 again. valuation is interesting. they report in a couple days. the most important one in my opinion is facebook on october 30th and we know that story. microsoft is the wild card.
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why? because the quarter's going to be great. is valuation going to be a concern? because 22 times forward earnings in this environment, microsoft giving their eps growth might be rich. >> you think intel will do well because it went down into earnings. >> intel sets up well into earnings because of the move with the precipitous drop -- by the way, for the right reasons from 58 down to 45. i think as a trade, to me, intel sets up the most -- the best out of all of them. >> you're watching facebook very careful. >> yes. alphabet is my biggest position. facebook, though, there's a lot of elements to facebook, probably more even than the business in general. so i disagree that's the most important one. intel i think very important. we've seen the semi-conductor space is awful. >> the producers were a lazy with the choice of the song. >> why ♪ >> dan's coming out.
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>> its microsoft, its apple, google and amazon. those four are the only ones that matter. when you think about all the sectors that act so poorly even the ones that have all reported even though the bank stocks had good results, the xl is down on the year. it had its lowest close. those four stocks are going to dictate how the market trades in the next couple of months in my opinion. >> did tech soar today we barely broke last week's range. there's no signal in this move today whatsoever. >> relative outperformance needs to be discounted in this space >> yes, absolutely. just look at a chart. we didn't even break last week's range on the high or the low at the end of the day, these things faded. i would not be looking -- maybe earnings sparks the rally, but i don't think you have to get into them ahead of time and what we've seen from every other company is warning about the future or disappointments about guidance. >> coming off what dan said
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about the banks they traded terribly today, pretty much closed at session lows, we saw netflix, what do they have they had a good quarter. what happened to them? they're below their levels. >> yeah. >> so isn't that going to be the playbook going into this what makes these stocks different? >> nothing makes them necessarily different. what makes them different in my opinion, intel its not part of magga there's no i in magga. >> i like it. >> i did mention microsoft and i think microsoft would be a concern because although i think the quarter's fine, think people are now going to be focused on valuation. why i think facebook is the most important is because of the huge drop that we've seen from that 204 level a few months ago to where we're currently trading. the stock hasn't bounced until recently off that 150 level.
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if it gives up the ghost on earnings on october 30th, no pun intended, then that could be the next catalyst down for the broader market in my opinion. >> basically, all we're talking about is the set-up going in. what the valuation is going in. >> i would change my cautious view if over the next few days we had a big selloff, then these things are poised for a pop. since we haven't done anything in a couple days you have to wait. >> its a tradeable pop the lower they go into it the way they come out of it. its really important to see how the other sectors traded. they were a source of funds. i can go down the list. look at the way small caps closed today. materials? industrials closed today obviously we just mentioned the banksz. you can keep on going. the only thing that were green on my screen were stocks that were high valuation tech. you have low valuation on the other side that trades horrible. you have high valuation tech that's being rerated right now and they may have a short-term
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pop but i'm not certain without strong forward guidance that we'll see the sort of pick-up that you would see at the end of the year. the s&p's up 3% over the year. its down from its recent highs. the nasdaq massively outperforms. amazon's still up 50% of the year. microsoft's still up 27% of the year. apple's still up 30% of the year. if those stocks and i'm forgetting -- and google, which is not up a lot, if those four stocks -- whatever you want, if they go down together over the next couple weeks, the hold market's going much lower. >> and if they go up >> you know what today's a great example. the s&p 500 closed down on the day. all this talk about rotation, we're seeing too many economically sensitive groups act poorly. >> i mean, financials, industrials -- >> dan's been on the negative financial run and he's been spot on. at a certain point you have to see or at least i have to say, as much as i like to believe in
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it, as much as they might make sense in terms of the valuation they give, stocks trade awful. we're basically right there in terms of the -- specifically, goldman sachs and morgan stanley have been abominations. >> what concerns me is the narrative of the slowing economy that's going on out there. goldman sachs had one of their indicators out today that leads ism. we saw that turn down. we saw chicago fed index turn down over the last couple months. those tend to lead. what i'm concerned about is that market participants are starting to price in this slow economy and it really doesn't matter what earnings do. >> our next guest is out with a fresh note today. the markets are experiencing what he calls post traumatic volatility disorder. while that sounds scary it could be your best chance to buy. let's bring in jonathan gull. good to have you with us. >> good to be here. >> what exactly is this ptvd >> bottom line is, if you have a spike in volatility that you
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can't explain with a piece of news flow, you know, basically the market pops back unless you have something really broken. so we looked at in this report we had out this morning and we said is there a liquidity problem across market? no. is there a pop in the vix? no are we seeing earnings disappointments? and you talked about -- we're hearing chatter from ceos that there's a problem and yet the estimates aren't falling apart because they're not telling you they have a problem, they're telling you they're concerned about a million things. in light of that i think we'll get exactly what we got in february which is the vix spikes up toward 20 and over the next couple months you have huge outperformance and that's where i think we're setting up for. >> what is huge outperformance in your view, s&p 5,003,000? >> yeah. if you look between now and the end of the year we're probably looking at five, six, 7% returns on stocks and you get back on to
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a positive trend next year and i think -- the economic data's slowing? i think that's the big story for next year. its not slowing towards a recession. its just we're losing some of the stimulus that we've had and i think its going to be fine but while people are transitioning from this hyperspeed to something more normal its going to freak people out a little. >> when does that worry you that its something bigger >> when its a risk that its actually a recession. we're not a 3% economy any more. we don't have the underlining demographics. we're at 2% economy. we've been running hot. it'll slow down a little bit. by the time we get to the middle of the next year, no one will care we're running slower. >> are there particular industry that's you think will bounce back or different rotation coming out than how it went down >> there's a couple things. first, i love tech and i think that the issue with why these
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maga names are doing so well its all fundamental. its sales growth and the addressable markets are huge. i think that what could be sloppy as we get into next year on the theme of weaker economics, industrials, materials that need the economy to drive it, they're okay now but at some point they're going to take on water. >> two headwinds i see, midterm elections potentially, the president has said, if you don't vote for republicans, your beautiful 401(k)s are not going to look so beautiful. i'm paraphrasing and the fact that everybody seems to think a deal will get done with china, i think we're probably as wide as we've been since all the chatter started. >> let's take a look at these one at a time. as far as the midterms are concerned, the markets are already discounting the democrats take the house and that nothing happens in the senate, that this doesn't really threaten the presidency or the policies and it doesn't matter very much. on the other hand, if you had a democratic sweep, it would have
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to be a big sweep to threaten the presidency and that's where the chatter is. its probably more noise than anything else. with respect to china, maybe if we step back, this is probably a fight worth fighting. we have a raw deal on a whole variety of trade issues. no one's wanted to, you know, get their hands dirty -- >> its a fight worth fighting because you think the s&p 500 will go higher >> do i think -- if we end up in a full blown trade war, its a disaster. i just don't think that we will and i think at the end of the day will probably better off for having gone this way. >> are you concerned, though, back to the maga stocks that they represent a disproportionate amount of growth next year there's a lot of index, valuation is imbedded in a small group of stock that are up dramatically year over year. >> so if you look into three pieces, 30 plus -- if you look at tech broadly defined, 30% of
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the s&p overall. if you look at the earnings well over 20%, if you look at the revenues, 14%. these are companies -- they're growing, they're revenue lined like a weed and the margin is strong -- >> this is really important, jonathan. we saw facebook's estimates, earnings estimates for 2018, 20% chop. your analysts did it last week. when you think about that what's being taken out of the market, people forget that amazon, facebook, these are very cyclical advertising, business with google too, so i just think this foregone conclusion that they will continue to grow at 25% a year -- >> i'm not saying they'll grow 25% a year. i think they'll grow faster than the market and i think the addressable -- the size of their market, the amount of cloud computing -- >> my brother what is that saying the s&p is up 3% this year. those four stocks make up 50% of the s&p and they're up massively
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not to this extent. >> the issue is that its the fast growers happen to be very large companies. if you look at the breadth of the market behavior isn't such a problem. its a fact that the individual companies that are doing well are just huge. we've never seen the winners be such large names and that's -- >> what do you think's going to happen if they become losers >> i got to blow the whistle. you can answer quickly if you want to. >> if they're losers because the multiple comes down, because investors -- >> underlying earnings are a problem, you have a problem. >> okay. thank you, jonathan. he'll never come back. he's never going to come back. >> he will. what did you do today? it was, my brother. it was my brother. that's serious business when you do a my brother. >> it was interesting for me, i don't know if it means anything, 24 hours does not a day make but
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i'll say this, the fact that the market was down and the vix was lower today, we did -- the smart board a week or so ago and we said some of the things need to be in place for market bottom and the vix is down. you saw that today. so that is an encouraging sign for the market bulls out there. >> what did you do today >> the dollar is the new vix so you don't even need to look at the vix. heighter the dollar -- the higher the dollar goes the bigger the risk. >> karen >> today was day three post uri so i bought some uri calls today for january of '19. >> i was just going to give a psa to the viewer. just keep waiting on that one. >> go ahead, dan. >> one other point about the dollar. did you see crude oil sitting right -- i think -- when you talk about volatility and just focusing on the small group, there's a lot of things very
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volatile. global equity's volatile. we're seeing volatility in commodities. its not just stocks. coming up, china surging back after what has been months of selling pain and check out all the chinese tech stocks, they were rallying but can you trust this bounce? take a look at the cannabis cam. there's the king, tim seymour getting the buzz for the big pot conference happening right now in new york city as weed stocks seem to be burning out. he will join us live from the ground with the highlights. and later, its not just tech stocks reporting this week and guy here has one under the radar stock. we're live from times square in new york city. chor"ft ney" right after this.
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welcome back to "fast money." china stocks surging back with the shanghai composite having its best day in more than two years and chinese internet names topping the tape today. take a look at the bat stocks. can you trust the bounce in these beaten down names? can you trust it in general? >> you have the government behind them. last week we did that thing where what are your lottery
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ticket stocks. by view is mine. these are your lottery ticket stocks. there's a lot of risk here. you have the chinese government sitting there saying, we're no longer going to let these things go lower. when we had our crisis in 2008, i'm not saying that china's anything near what we had in 2008, but the government stepped in and said, no more short selling. we're going to give out loans and do all these things. that's the point we're at in china. the risk/reward lines up really well for these. >> does the chinese government have enough in their arsenal to offset the impact of a trade war? >> i can't wax poetic about the chinese arsenal. the chinese, they've absolutely said, put everything behind it. we're buying the stocks. to me that says they're in this trade war thing for the long haul. now is the time, get behind us, all for one, one for all. if they were ready to make a deal, i'm not certain you'd hear this rhetoric -- >> why wouldn't they say that? >> if you're ready to make a deal, why do you have to say it? >> i don't need to make a deal.
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>> i guess my point is, if they were ready to make a deal they wouldn't have to have this rhetoric out there because the market would take care of itself. i think they're saying they're in this thing. now they're banding the troops together and circle the wagons. i could be 100% off. i typically am. >> which one of the stocks do you like >> i know the commentary was not its not just the state owned enterprises that are behind. it seems like, you know, the chinese have actually been putting their foot down with these exacttencent. some people think -- >> regulatory -- >> yeah. ten cecent was down 40% from its highs in march and it were with issues that had nothing to do with trade. there are maybe some consumption issues possibly in china. >> a bigger something brewing over china. >> possibly. >> i'm talking about for a trade, right if we have a continued trade war and china says, yeah, we're hunkered in then these are not
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any good. if we have a trade in the next two or three weeks or, so the risk/reward is fine. i'm melissa lee, you're watching "fast money" on cnbc first in business worldwide. here's whaels is coming up on "fast." the winter is coming. >> yes, and winter might be here for pot stocks. the biggest players getting crushed today as they cool off after their epic rallies and there could be one simple reason why. we'll explaining. plus, its the busiest week of earning seasons and guy adami is stepping up to the plate to pitch one under the radar name he thinks is going to hit it out of thear pk. there's much more "fast money" right after this quick break.
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welcome back to "fast money." its been a rough ride for the transport with the group down nearly 10% and coming off its longest weekly losing streak since the financial crisis. let's get to our own bob pisani at the new york stock exchange. >> reporter: transforms outperformed several months in the year until about a month ago when they began to underperform. here's what's important. take a look here. down almost 10% in the last month compared to a 5% drop in the s&p 500, put there's big differences among the subsectors. first off railroads had been great performers this year with csx and union pacific all up double digits going into the month, but now they're selling off. they're down double digits in just the last month. and the truckers have generally underperformed but have slipped further in the last month with big names like schneider, knight swift and ryder and westerner.
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what exactly is going on here? higher fuel costs are affecting the airlines. outside of that the fundamentals have been strong. there's also been very tight conditions in trucking supply and there's been tight labor market conditions, so supply doesn't seem to be a big issue, the concern seems to be the demand might, might be slowing down. that's what morgan stanley thinks today. they downgraded the freight transportation stocks based on concerns over slowing demand. they emphasize they don't see a recession but some of their proprietary data points a modest slowdown in demand. but the broad economy really remains very strong. no matter who wins the election, there is going to be attempts to pass an infrastructure bill and that will certainly help transportation stocks. for the moment let's call this a
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flutter that's not morphed into a full blown panic at least not yet. back to you. >> thank you. airlines got liftoff for earnings. >> no pun intended. >> oh. >> they did. the airlines -- i think american reported. good numbers from delta, united and oils come in a little bit. jet fuel a huge part of their business. the business traveler is there and spending money. >> at some point, though, what you mentioned, oil that's going to hurt, right its already hurting now. >> these guys all have pretty active hedging programs. i would say, again, a name like fedex is more interesting to me down 13% on the year had results of stock initially popped. that's one of the largest components within the transportation industry. those are more trouble to go me. those are the things where warning bells are screaming in silence on a lot of different names and one of the reasons why i got animated before is we have
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strategist after strategist that comes on and everything's rosy but there's a lot of stuff going on and all the components that make it up other than a handful of stocks that are really troubling. >> silently screaming warning bells. sounds like a halloween movie. >> what we need at this point in the show is somebody that can look at charts and break it down. >> like a chartist. >> you want me to go over to the plasma >> maybe we should bring in carter worth. he says the trouble in transports could be far from over. look who's here, carter. >> poof, here i am. so i thought we'd actually expand a little bit. the transports of course is a 20 stock index and its price weighted dominated by ups, fedex and the rails. i wanted to show you the
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correlation is almost 95%. this is the xli versus the dow jones transportation. i thought we'd look at the transportation average at the end but first talk about the sector overall. literally, the same percentage change over the past five years. let's draw some lines on the xli itself. now, one way surely at the bottom one could say that's something of a head and shoulders bottom and quite a move it was. a topping formation is this, a double top. so just as that was a bottoming formation, you could've called it a double bottom, this is a double top. it has all the reciprocal implicati implications. you have a very well defined trend and break in trend and this recovery importantly got simply right back to the under belly of the line which puts our double top back in play and right there, right there exactly fails dramatically. moving on.
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so now -- and this is really the issue. this was the supposed narrative on the street because of regulatory reform, tax cuts, synchronized global growth and guess what on the top industrials, on the bottom relative performance. look at these two circles i've got here. what this is the day before the election and then, basically, a month ago. all of the alpha's undone and that's not adjusted for risk. its been nothing but a disaster, frankly, a risk embracing endeavor to keep pace with the market but with volatility. the dow jones transportation average, this is a 15 year chart. look at these draw downs. now this of course is the financial crisis. we dropped 61%, but this is so-called bull market over the past ten years. we dropped 20, we dropped 30 '3n '15/16 we dropped 31.
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you can drop 30% and still be, quote, in a bull market. let's pull it back to the final chart or two. this is the big drop. 61% in the financial crisis. this was the fixed '15/16 drop. the chart itself -- if we were to go to 25 that would leave us exactly at the trend line as we've done before and it quote wouldn't even be a bear market, it would just be another 10% from here. i think industrials have got problems. the price action is poor and the transports are effectively industrials. in fact, all of them are in the sector. >> come on over, carter. is it your thesis, your belief that we are still in an uptrend even if we do see a substantial
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pullback. >> we know the russell 2000 growth is down 14 15rks and we know certain stocks are down 30%, 40% square. so its case by case, but the big issue is this, we've had bifurcation tor a while which is industrials and financials were underperforming. as more and more money was clustering in to idiosyncratic growth. by-fur indication is hoped to be resolved by the strong continuing and the weak catching up. its never resolved that way. the weak have the final puke we're seeing that and the strong roll. and that's -- we're in the process of that now. we have great earnings from adobe and netflix. >> are we in a position where we could see the broader markets continue in uptrend without the participation of the industrials, without transports, with the lousy trading of financials. >> not really. there's not much precedent for the market to be advancing with marquee investment banks and
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brokers basically collapsing. black rock is down 40%. you see the action. that's not the set-up that suggests we're about to just take off to the upside. >> my childhood when the morguens and vanderbilts and the melons, transports were very important. does the dow theory still hold water in an environment where they're not nearly as important as they were 100 years ago >> confirmation concept, right, that things have to get hauled or trucked around if the goods and services are not confirming or vice versa that you have a dispersion or -- that will lead to trouble. what we had this time was this, that only two sectors made new highs in september and august. so the thought is the market made the new high, it never d. that's an illusion. the fact that we made new highs in august and september while only two sectors could or the new york stock exchange never could, basically that's the bull
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trap. that's the sort of dispersion that ends up setting the trouble we have now. >> just roughly, what do you see in the charts? you think we finish higher or lower? >> i would think lower. >> by the end of the year. >> if there's any trouble in the numbers, i can only think lower. >> carter, thank you. coming up, pot stocks getting smoked. we'll tell you what's behind this move. plus, it is the busiest week for earnings and guy has one name that he says can jolt higher following his report. yes, that's a hint at the name enfa meyreturns. that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose communications. without communications,
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welcome back. we have officially entered the busiest week for earnings with 30% of the s&p 500 reporting so which name should you watch out for? dom chu's in the newsroom breaking it all down. >> just about everyone who cares about market will care a lot more this week. we've got around 150 s&p 500 companies reporting their results making it the busy yest week of the season. ten of those stocks are components of the dow jones industrial average and buckle up for thursday, because that will be the single busiest day of reports with around 66 companies in the s&p 500 posting their results either before the open or after the closing bell. while the initial string of earnings reports over the past weekend or so have been focused on the big banks, this week will
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provide a wider spectrum of industry and sectors. caterpillar reports on tuesday. ford motor reports on wednesday. communications and retail? amazon, alphabet, twitter, all on the docket thursday. this is also the week where some of the big health care names will report on wednesday and you got bristol-myers and merk reporting on thursday. according to data from the investment group, the average one day stock move for companies reporting results has been down by around .7%. that marks the first time in five quarters where the average has been negative. we'll get a much better sense of that sell the news mentally
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holds after this week is over. >> thank you, dom. let's trade some of these names. which ones are you watching, karen? >> alphabet for me, the biggest for sure. i don't know that its as alphabet goes so goes tech. i don't really know that's the case, but i'm just hoping that the bar has been set low enough -- i mean, if you knew nothing about the history of this -- where the stock has traded in, this company became public today, right, with this kind of model, with these kinds of margins, with this kind of growth it would be trading substantially higher than where it is now. >> which one for you? >> you look at the big industrial, your triple ms, that's what you want to find out if there is weakness in the global economy, weakness at the markets already telling you already trying to price in. you'll see it in these earnings. >> i agree on the cat. cat was 160 two weeks ago, 130 today. i think the staples are important especially after that huge move out of proctor last
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week. colgate is later in the week. what's most important is, you know, the news isn't going to be horrible in any one of these names but if its good it better react positively. mcdonald's is tomorrow before the bell. chipotle and dunkin' are out thursday. one of these names is about to break out. head over to the plasma -- >> i'm going to get out of my chair and head over to the smart board and i'm going to make a quick move towards -- >> so mean. >> you mentioned one of those names and america does run on dunkin'. no longer dunkin' donuts, just dunkin'. here's why. dave hoffman came in in uly, blueprint for growth, that blueprint is working, no doubt about it. take a look at the comps improving especially in the united states, comps are up 1.4% last quarter. something's working at dunkin'.
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outperforming competitors. dunkin' dnkn is up 30% this year, far outperforming starbucks and mcdonald's. one might say their biggest rivals. the stock is rallying for a reason. i can't sell you dounkin' on valuation because its expensive. the question is will they grow into it, they may. last one, name change. i know it sounds ridiculous but it was long overdo. we're a healthy society despite what dan nathan says we're eating better. we're not eating those crazy doughnuts any more. lose doughnuts. doughnuts loss is a good thing. they've simplified their menu. for all thosereasons i think you'll see an upside surprise. i think analysts are behind the curve. the stock goes higher, i think. let's throw up a chart real quick to show you the performance of which i was speaking. its not a bad little trend line to the upside, i think we'll stay in this little bit of a
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channel and i think we're going to test this level up here, which is -- i don't know -- 80 bucks give or take. questions? >> dan has a question. >> i do, guy. the kids today do love doughnuts still and its not a carb thing. here's the thing, there's been a lot of activist in these restaurant things. this name, interesting, as an activist $6 billion market cap and enterprise value. >> i don't know why activist would get around this one. its not like its underperformed. i'm not sure necessarily an activist would come in maybe if they miss terribly and i get fired two weeks from now and the stock is trading down here, maybe uncle carl or somebody will come in but i don't see that happening. >> compared to starbucks, that's come down a lot, how do you look at those two versus each other right now? >> the difference is dunkin' is made the user experience a lot easier and starbucks you walk in there you're overwhelmed by the
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whole thing. just speaking for myself, the user experience is so much easier at dunkin' as opposed to starbucks. does it deserve the valuation it has, i don't know, starbucks given their growth is more expensive than dunkin' given theirs. look at that. look at that. i didn't even bring that chart up. that's a fantastic looking chart. >> its like they read your mind. >> any way -- >> no more questions. time to vote. are you buying guy's pitch on dunkin'? >> that was a great presentation. i don't think you have to buy anything in this earnings cycle before earning. i like the consolidation and the valuation relative to growth makes sense and i love doughnuts. >> i'm going to go the opposite and i say you sell these things. all these restaurant companies get priced for this extraordinary growth and then all of a sudden they miss and they get destroyed and i feel like dunkin' could be there. i still like the doughnuts as
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well. >> karen >> i'm right in the middle. luke warm on dunkin' with the little guy running. i just -- i'm evaluation. you lost me at valuation expensive. >> two sells, one buy, guy, not too bad. >> yeah. >> don't just look at twitter right now. the poll is terrible. >> they're voting no just to vote no. >> there is still time to vote. we will reveal the results later on in the show. plus, weed stocks going up in smoke. is this the beginning of the potpocalypse hey, tim. >> reporter: hey, mel. amazing day here. look at the crowd here, very big event. some exciting developments in the sector thawel lkt 'lta about when we come back on "fast money" after the break.
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welcome back to "fast money." pot stocks getting absolutely smoked today with the biggest name plunging across the board but despite the hit, there's no doubt that the cannabis craze is still red hot. our very own cannabis king is on sight at the conference fresh off moderating a panel and we have to mention your
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disclosures, you can check out tim's disclosures on our website. in the meantime, give us a low down of the conference. >> reporter: so, mel, this is really an institutional profile. the crowd here is extremely constitutional, tells you the sophistication of thissector with some key bullet points. we talked about the political front but there are state catalysts and federal catalysts in the near term. there's just innovation that's going on. no different than any other sector. technology is running rampant in this sector whether its food processing or different parts of the pick your vertical. those people are here. we've seen this happening in other industries and other countries at other times. finally, the whole consolidation in the sector is alive and well. there will be deals. u.s. companies are doing deals with each other. canadian companies are buying u.s. companies. there's a will the to talk about in that sector. we had a very interesting interview. i want to you listen. it gives you an overview of the
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investor trends, take a listen. >> the canadian market is overheated right now. its not trading on fundamentals. the california $3 billion, they were at zero on january 1 and 3 billion dollars right now. colorado's $1.5 billion. we only have 5 million people in colorado, so this market is booming. where its going into the future is hard to predict. its going up. again, if you're not in now, you're going to be paying more later. >> reporter: paying more later. >> yep. >> it sounds like somebody is trying to justify the valuations now. >> reporter: i think in the private companies you're actually seeing a case where there is some discrimination in terms of good companies, good management, good balance sheets and what people will pay. >> in terms of products, tim, what sorts of products are these companies expanding in to? >> reporter: funny you say that, mel, there's all kinds of high
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end products. this is some kind of vape pen that is a puff pen that fits in your pocket. very high end and slick. this company is certainly one of the high end players in the sector. they're selling flower, not selling it here. its not in here. bottom line is, very advanced branding. guy adami, these are chocolates that get you in the mood just in case, you know, sometimes you need a little extra help. not that i would presume you do, but again, chocolates, edibles, all kinds of stuff. there's a product for every vertical the consumer could look for in the cannabis space. sorry, guy. >> tim, thanks. >> reporter: thank you. >> what does this feel like to you? does it feel like a bubble >> that guy sounded like a bitcoin guy from 2017. better get in now! >> its only going to go higher. >> i think what's really interesting, tim mentioned state
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laws. what happened in canada is a federal thing. i think we're a long way off from federal here in the u.s. its a very disjointed market. when you go to a conference like that and you actually can't pick up the product, you got a problem in my opinion. >> so therefore the valuations -- >> if i go to the conference in colorado, california, maybe up in toronto. >> uruguay, canada. still ahead. ha hasbro getting crushed today. we will bring you those comments. we're live at the nasdaq market site in times square. much more "fast money" still ahead. i'm tecky. i can do it all. go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that. schwabbb! calling schwab. we don't have a satisfaction guarantee, but we do have tecky! i'm tecky. i ca... are you getting low costs
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welcome back to "fast money." the broken toy story continues shares of hasbro falling. our very own jim cramer sat down with the ceo. take a listen. >> we're first launching a monopoly fortnite. and then for the spring we have nerf overwatch coming where you get to play the game for real, live, obviously making great blasters and roll play so you can play as your favorite character and that will follow with nerf fortnite which comes
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in the first half of 2019. its very exciting. you get to jump out of the game and play for real. >> nerf overwatch, can innovation like that save them or is there more pain ahead for these broken toy stocks and the toys 'r' us liquidation? >> yes, he said it's going to continue to be a problem for a couple quarters. problems with my little pony -- >> b.k. hasn't bought a pony in a long time. >> i have the whole collection so there's nothing left for me to buy. >> and how many b.k.'s are out there -- >> we have a club. its a boys club. any way, i would take a look at hasbro, jump out of the game and play. nobody wants to jump out of the game. everybody wants to stay in the game. i don't think these work. >> margins are getting crushed. they missed eps by 8%. revenues are down. you want to say all those
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things. valuation is still too rich. there's no compelling reason in my opinion to go fortnite not withstand and roll playing -- >> nerf overwatch. >> i'd stay away. for the whole interview and much more, be sure to check out jim cramer. mattel, break down the action. thursday after the close, the options market implying bay 10% move in either direction. hasbro closed down 8%. closed okay. there was a bullish trade today that caught my eye. 5,000 of the november 9th weekly calls were bought to open at 48 cents. that's up 10% in line with the implied move. its really interesting. take a look at this name. it is down 8% on the year. its down more than 20% from its 52 week highs. we have a one year chart.
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it looks like its consolidating a little bit. maybe you get pop on decent news. look at the ten year chart. its down 70% from the 2014 highs. that consolidation looks almost like, you know, you just got there for the death rattle a little bit. if you're looking to play the earnings, defining your risk through calls. when you were a kid, what did you guys play with rocks and sticks and stuff like that what do you know about fortnite? >> he reads about it. >> we go outside and have good old-fashioned fun, mel. >> more "options actions," check out the full show friday 5:30 eastern time. up next, final trades. oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie?
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let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.
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it's not what champions do. it's what champions don't do. they don't back down. they don't settle. and they don't quit... except for cable. cable? oh you can quit cable. because we are cougars and we don't quit!!
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unless what?!?!?! [team in unison] unless it's cable! quit cable and switch to directv and get the most live sports in4k more for your thing. that's our thing. 1-800-directv do you know how guy adami likes to spend his mornings? >> how mel >> sipping on coffee and listening to celine dion's "allpy about myself" because he got crushed on twitter. >> you sell the xop. a lot of the bond proxies
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have gotten killed, xlu has actually done all right. i think you sell that one. >> uri calls, they have december 11th investor day. i think they'll say some good things. >> dunkin' brands in your fa. >> that does i >> that's it for "fast money." "mad money" starts right now my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer welcome to the end of october. wow, the end of october we got a million reasons to sell. >> sell, sell, sell. >> and not a lot of reasons to buy.

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