tentative at this point. it was kind of light volumes and things today, but i would say waiting to see if we need a bigger pull back is the way i'm focusing on it because it seemed like a lot of things heading into this year said that we wouldn't be surprised if we got something like that. >> and that does it for "closing bell." >> "fast money" begins right now. >> energy front and center as tensions rise in the middle east we're live on the ground at the goldman sachs energy conference. the biggest names in the industry are here. their take on the iran threat, crude prices and if energy can go there worst to first in your portfolio. a special he had decisiedition live from miami starts right now. >> and welcome from the goldman sachs energy conference live in miami beach. i'm brian sullivan a bit of a different look than nasdaq, but we're still hit being all the stocks that you

need and it is energy and tesla, paypal, square a lot to talk about. your traders are not here. but i still know who they are. and the top story has been energy following the killing of the iran general on friday and the last couple sessions, the loss has been wiped out because the world is still awash andoff supplied in the price of oil. we've been speaking to the biggest names about what is going on and why we did not see a bigger spike we've chatted with ceos of chevron, patterson gti, marathon oil, their first interview in more than five years and pioneer will be airing on "worldwide exchange" tomorrow. let's talk about oil and gas as well speaking of chevron, that stock fell along with oil.

not just because crude oil fell, but because bank of america and merrill lynch downgrading to an underperform so guy, are you surprised at like the question we asked every ceo here that the price of oil has not spiked higher given what happened on friday >> enjoy yourself down there, thanks for inviting us, number one. number two, i'm not surprised because we saw something a le months ago that was probably in permanents of percentage-wise 50% worse than what we're seeing now. sos crude oil market has showed its hands in terms of what could happen with risks gee he owe political or otherwise so it doesn't surprise me. i think that there are events in the future but the crude oil doesn't surprise me. >> and.

>> and the dollar continues to weaken and we've had oil companies that i think are starting to express that they have a very different long term approach to what was recently their short term approach in terms of how they are managing theibalance sheet. but when it gets back to what we've seen in geo preliminapoli instability, what it has meant for the oil market, yeah, been there done that. we haven't seen any supply disruption yet and i think that is the bigger issue. >> you can't hang your hat on what is going on with iran, but interestingly you saw this move in oil before the iran news even dropped. so i think for example if you look at the equally weighted energy index, it is now above the 200 day moving average for the first time in 15 months. the energy sector, more names are trading to term highs. i think a lot does have to do with the dollar. it peaked in october, oil bottomed oil moved out of that narrow

range before we heard about iran so i think there is a case to be made that you are seeing a mean die version trade and you could see follow-through >> and here is what i'd like do. a couple bearish scenarios which is the more compelling case number one, technicals look pretty good. opec is cutting protection there is slightly more die hand than supply. and of course the geopolitical risk iran is threatening to retaliate. we don't know if that means. direct attacks in iran or saudi arabia or both that is the bullish side of the story. global demand getting better the bearish case is that there are two to three billion barrels of oil in storage around the world. you've got to continued u.s. production and if we saw something knocked off line, we could and the saudis probably

ramp up another 1 billion or 2 billion warlsbarrels a day like. which do you think is most likely >> can i xwhoe somewhego somewh middle i think that lower price of stable oil is actually better than a price that spikes around a lot. so i think that instability isn't good is that the bull lirk caish cas bearish case i'm not sure is that right? instability? >> yeah, but there is a middle ground i said say. i mean, you don't have to necessarily say prices will go higher or lower. if opec accomplishes what it wants and if ceos get what they want, what they want is a stable price of oil you cannot run a company -- you probably don't want to invest in an equity or stock of an oil and gas company if you have a price that is $40 one year and $140 the next year. >> which is something that we

saw a few years ago. i think that you could make an argument that the price has been extraordinarily stable in the crude oil market for the last year or so to me the bull case is not necessarily in the big cap integrated names you mentioned chevron. multiples don't make a lot of sense. chevron has traded close to 18 times next year's numbers. i don't see a real compelling case there the case is for names like apache these names that are extraordinarily levered when they have just one hint of good news when they get some sort of tail wind, these stocks move significantly. apache by the way was a $19 stock a few months ago stock moved more than 50 and still probably up side so the bull case to me is the fact that these names have been under the radar, they are levered and again any hint of good news and they go higher >> and we added sl eaddedberger.

and there is a bit of a cushion. we wouldn't buy it just because of the high difference denied yield, but you are talking about a 5% dividend in the name. >> and when we talk about the bull bear case for the investing across the sector, some of it is just a positioning story the fact that -- i don't know the last time where we opened and we were dedicated to energy. i think that it is good news because if you think about how left for dead the entire energy sector has been, we've talked about the overall weighting as a percentage of the s&p. it has not been relevant because fund managers haven't needed to invest in it at 4.5% of the overall s&p. it is getting to a place where i think that you've gotten to -- and everybody knows the numbers in terms of the three sigma

event. listen to the oil companies. you are doing that all day long. conocophillips has a ten year plan where they are talking about a different approach to investing in their business. ceos are being incentivized on free cash flow for oil and gas companies. so that is part of the argument. the argument on the bull side is that positioning just isn't there. so you don't need a lot in terms of the change to the approach. and the fundamentals here, forget the price of brent or crude or whatever you are following. fundamentals for the sector have been forced to change and that is good news for investors >> and conocophillips, we talked to their chief operating officer, and they said that they will give back 30% of the free cash flow for the next decade for investors. i tried to play a game, everybody but you failed karen tried as well, so i'm never coming back. and by the way, coming up, we'll get more stock picks two names on the conviction buy

list, that is it all right. this is a great transition we just talked about oil and gas. now let's talk about electric cars and tesla because not only do we have mean dance moves from elon musk, but we also have big news from tesla in china and for that, let's get to phil lebeau >> big day for tesla in china because they have begun public deliveries and the event where they did it, at the gigafactory 3 plant and yeah, you've seen this a few times but you want to see it again. elon is feeling the groove, decides to take off the jacket because i'm going here for quite a bit. this is part of the day that they had in china where they celebrated the beginning of public deliveries. he said that they expect to open

up a design center in shanghai remember, it is the world's largest auto market. meanwhile when you take a look at shares of tesla, over the last three months, as they have moved higher, so have price targets that have been put out there by the analyst community in september, they were at about $270 and now it is up to $344 that is the average price target that is out there. and in terms of market cap, this is the story that is catching a lot of attention right now tesla is about $2 billion away from being worth gm and ford, their market caps combined and that is not enterprise value. but in terms of purely market cap, tesla is almost worth gm and ford combined. finally, the latest to come out with a new note today raising its price target for tesla, this target $556. >> and those numbers on market

cap are staggering, but i think that you know this and i know this and our audience probably knows this, but bears repeating, the reason that exists is even though gm sales are, what, six or seven times that of tesla, so is their debt load the debt ways down the market cap. so not a pure reflection of tesla's value. you have to subtract all the debt that ford and gm has. >> and if you look at the enterprise value, ford is more valuable than gm and tesla all the way down at like 88 billion, 89 billion but that has been a point all day. nonetheless, i think that we're getting to the point where $500 a share is not only a possibility, but could happen relatively soon. and remember, remember when elon musk's contract was redone and his compensation package people

said, you know, if he ever gets to a market cap of $100 billion i can't remember what his compensation is, but it is a big pay day. that is not too farfetched only $15 million away from that. >> and you can take just a tiny sliver of that money and go to dancing school a little fred astaire action phil, thank you very much. are and speaking of debt and tesla, i know karen you've been doing a bit of digging tesla has some debt. you found some interesting things >> yeah, so one of the these cease for the bears is the balance heet but when you look more closely, they have three tranches of convertible debt that have started to really trade up very sharply since the stock has moved so much. the reason is because these bonds convert into equity. and so you have $4 billion of three different tranches of convertible bonds. one next year, $1.4 billion, then $1.8 billion, then another

$4 billion so if the stock is about $350 or higher so wyou think about the balance sheet, that is $4 billion of debt that won't be there anymore. there will be $4 billion of -- we don't know exactly how much, equity, but as if that they are selling strong at the various strike prices of the converts. so if one of the balance sheet you issues isn't there anymore, it seems to me that the target value when you look at the up side and down side in the bear karks you have to thi case, you have to think that it is higher. at 460, the risk of the balance sheet being a problem has gone down significantly >> and i would jump in here too, karen is right, and i'm someone that has been negative on the company based on the balance sheet. and to continue at least in my somewhat cynical ways here, a

handful of deliveries in china doesn't validate china demand. we've gotten a lot of discussion about a new factory. we still don't know the details of that. the demand story for a company that has been slashing prices anywhere they can to seemingly front forward demand i think is still very much a question here. but elon musk should be dancing because he has an enormous amount of his personal net worth tied up into this company and loans up against it, so he has to be feeling great. and yes, he is a ceo who has an incentive. and effectively this company has never been profitable. so yes a turnaround in the name and i i think that it is about both balance sheet and demand you get the sense that there is some relief. >> so pretty clear that since october my lack of understanding

in the stock, it is palpable it is rouidiculous. so i just want to put that out there. however i'll say this, now if tesla is a car company, and we'll just play that game, it is now the most valuable car company in the history of the united states with in terms of market cap which phil alluded to, surpasses ford and number two, the euphoria around the stock was like back in may so you have two ends of that spectrum again, i've been lost in the name 100% but it feels as if in reverse what we're seeing today is basically what we saw in may on the down side. >> and guy, don't be so hard on yourself listen, we did this analysis on a different valuation perspective last year. and i don't know exactly what the market cap or number of cars sold for tesla is, but it has to

be above what we did last year, which is that tesla i believe is valut above $1 million a car. something like that on the car sold you look at toyota valued at, whatever, $35,000 per every car it sells any type of sort of warren buffett type analysis will render this balance sheet, you will look at it and sort of cross eyed, but at the same time, there are stocks that we have seen in our collective lifetimes that don't have to make sense to succeed, do they >> it is true. and listen, right now this has approach to be one of those stocks again, i'll say for the last month and a half, two months, completely lost. but be careful out there, you know, the euphoria now is rim mi reminiscent of what we were feeling back in may. >> good such, guy. good discussion there. all right. coming up, we'll come back here

live at the energy conference in miami beach. a couple of great guests goldman sachs has just two oil and gas stocks on their buy list we'll hear about that. and also lng, you talk about the world, nothing more global than lng. and the stock picker, jack fusco coming up as well. a lot more on square, paypal and erl rks. -to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

our retirement plan with voya gives us confidence. they help us with achievable steps along the way... so we can spend a bit today, knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so... what do you think, peanut? nope! honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement.

wthat's why xfinity hasu made taking your internetself. and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches... no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started.

welcome back to an eastern seaboard version of "fast money. i'm at the goldman sachs energy conference in miami beach. guy, jeff, tim and karen are all back at the nasdaq site. we're joined by brian singer is this in ma this is is many ways your conference and before we get into some of your picks, just two names on the conviction buy list, day one, key notes, we spoke to ceos, you've talked to them. what would you say are the one or two big themes/takeaways of today? >> i think this is the scenario

where right now oil prices are much higher today relative to where both the companies and investors thought they would be just a month ago so one of the big issues that we're facing at the conference is are we seeing producer discipline, will we see producers begin to increase activity or will they use the incremental free cash flow for free cash flow to return to shareholders and the message that we're hearing is that discipline is holding which i think will help improve energy equity sentiment. >> most seem to have 50 to 55 as sort of their benchmark. the most amazing thing that we heard today came from chevron. i asked michael wirth, for every one dollar that the price goes up, how far does that add to your cash flow $450 million a year. something like that. i mean, the numbers for just an incremental dollar are stagger

does this then at 68 on brent, 63 wti, just really add to a story that has been tough the last few years in. >> yeah, i think that there are a number of higher quality producers like an eog and chevron where we think that their incremental cash flows can be very significant. eog is one stock that we like. they have super levered to the higher oil prices. and one reason that we like them, you don't have to believe in oil prices of today we think that even in a 60 to 65 dollar type brent oil world, they can get mid teens production growth, double digit corporate returns and still have low to mid single digit free cash flow yields >> and so two names that you have on your conviction buy list and that is eog and pioneer natural resources. which is interesting because those are the two companies that i hear often people say thos e e

are the best management teams in the business and we spoke with scott sheffield thought that the escalations would increase and he is calling for 10 to 15 dollar higher prices for oil listen to this and then i'll have you respond >> we'll probably see a higher price. probably going to see another $10, $15 on top of where it is now. so i'm probably more optimistic, there is no have a supply in the world, the u.s. is no longer that supply like they have been the last several years and so we're going to see a higher price for the price of oil. >> all right so if scott sheffield is right and prices go up another 10 or 15, what happens to the equities >> if it is a sustainable increase in price, then you have a lot of equities that will move

hire because equity sentiment is not reflecting the prices of today let alone $10 to $15 higher on a sustainable basis. but our base case view is we don't think this is an all hands on deck moment for shale producers. we think that we don't need everyone compa every company's balance sheet to be restored. so it is those low on the cost curve doesn't need the higher oil prices, can grow 15%, can have mid double digit or teens type corporate returns and still havefree cash flow like eog. >> guy adami, mr. goldman, get in here. >> thanks for being here we'd rather be in florida, but my question to you is, eog got cut in half from october 2018 until this october and the stock has had a pretty significant move if crude were to go sideways for the next month and a half, is

this a stock that can still accelerate in your opinion >> we think that it can because we think that we're in a bottoming phase for energy equities and it is driven by two factors that we have not seen over the last year to two years number one, we think from a micro perspective free cash flow yields are improving and are more competitive as are corporate returns. and eog is a leader in both of those. second, we think that we are moving to a period post 2020 where we no longer need opec to need to lower production, we actually may need opec to need to raise production. so that has the potential without an increase in oil prices from here to improve energy equity sentiment for the high quality companies and we think that that can reverse some of the middling performance. >> and thanks for joining us i hear it has been great conference down there. eo xwch eog which you like, some of the criticism is that they are not

levering their balance sheet more they talked about some urgency or there has been some sense that they wanted to buy back shares that they actually wanted to do stuff to increase kind of the earnings leverage. that seems rather contrary to a sector that has been laden with debt and companies making poor allocations of capital >> and i would agree with the assessment as it relates to a lot of the other companies but we think that companies that can prove that they are low on the cost curve using 10 ks and 10 qs that have good corporate level returns, free cash flow and do not sacrifice their advantage in any of the above, should have the opportunity and right to grow. there aren't very many companies in that mix. but eog we think is one of them. this year particularly if prices hold at these levels or hire, there may be an opportunity for oeg to do more of that >> all right, we'll let you get back to your conference.

we talk about the pioneer and looking at numbers, everybody wants to know what is the break even cost. i think what is amazing about pioneer is their break even cost is $20 a barrel. maybe $21 a barrel they have the best acreage, the lowest cost and their net debt to ebitda 0.3% when half is trading more than two times net to ebitda. not all oil and gas balance sheets are created the same. >> and these are the kind of names that you want to play. thinking about eog as an example, they have a low cost structure. they source their own fracking material if you look at free cash flow yield, it is 4% to 5%. so those are the names that you want to be in. we don't know if it will go up or down from here, so i think being in those names that aren't levered to materially higher oil

prices and have the lower cost structure, i think that is where i'd want to be >> i agree, risk/reward is compelling with a low cost operator if the prices trade down but also as the whole space moves up, it will attract more money and where will they go he first, go to quality so you will do better on up side there too. all right. here is what else is coming up >> we're counting down to big banker names and analysts are keeping busy making calls on the financials we'll break down the winners and losers this season plus the chip wars are heating up, with amd taking a jab at intel in a big way. but which semi giant will come out on top all that and more when fast money returns.

we have a couple big calls on the big banks ubs the latest in a string of downgrades for the banks citigroup and wells fargo all taken down a notch and now, we are just one week from kicking off the big bank earning season as you look at it, who might be some of the winners and some of the losers with the big ffinancs going forward? >> it is refreshing to get back to the banks they are the rallying cry. and if you look at banks who vastly outperformed in 4 q in an environment where if anything you will see compression in net

interest margins, you have seen some of the euphoria of the refinancing bam come off tboom the top. so it is not a great environment to be going after banks. but again, these are banks who have pristine balance sheets on a relative balance sheet and these are banks that i think people are starting to look at as being more aggressive in an environment where the consumer is still what is driving this economy. i don't think that you have to run into bank earnings typically banks have underperformed on the announcements and then they have caught up into the rest of the earnings season. >> and this is a really important level for banks. they broke out of that 2018 or 2019 range, but now they are testing it on the down side. so i think holding the levels is important. i'm a bit more positive on the earnings front looking out further into 2020. i'm a believer in the steeper yield curve story. i think as we see better economic data abroad, europe

continues to make new highs. so i think as that happens, you will see the term premium increase here in the u.s and that releases the pressure valve a little bit on longer term rates and i think that you could see the curve steepening so it ends up a better environment for earnings for banks. and if you look at kb, 12 times earnings, i think that it is still okay so i think you have some room to play here. >> and i think that scenario you laid out, if you see around the world, i think citibank is the place that you want to be relative to the bank of america, jpmorgan and city of those three. because i think that they have the most exposed around the world and the cheapest multiple in price to earnings and price to book. and as much as i love jamie dimon, i can understand that call that jpmorgan is no longer the bargain basement that it was 30 points ago, 40 points ago so i still like it, i won't sell it, but it is hard to pound the table and say this is an incredibly compelling value.

i still like the name. it is a premiere franchise but i think that there is potentially more up side in citi >> and maybe citi. goldman had the $88 price target i think citi reports on the 14th but anytime the stock gets north of book value, it has been a sell just like when it got below tangible book. i think in october was the screaming buy. the name that we've talked about that continues to go higher and make all-time highs is blackstone which reports at the end of the month and i think that is a name that you want to stay with. >>good discussion there on the big banks and financials i know that it will be a very busy week for bank earnings next week coming up, gentler ceos? not really amd taking a bit of a jab at intel at the consumer electro c electronics show and it is about booze and cannabis earnings out tomorrow morning. what is the options market saying about what you can expect

from those industries? we'll find out i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant we believe in education built for all people., - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today.

- [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too. the famous meat lover's pizza from pizza hut. over a pound of meat and cheese for just 10 bucks. it's more pepperoni for your penny, more beef for your buck, more... you get the idea. get yours delivered now at pizza hut.com. no one out pizzas the hut

welcome back

here in miami we've been talking energy, but out west in las vegas at the consumer electronics show, 170,000 people are talking stick knowledtechnoe semiconductor chip are wars are heating up more on that with josh lipton. >> and so one analyst i spoke to called it the biggest news yet as ces, amd ceo taking the stage there at the conference introducing w high performance chips for laptops. taking aim squarely at intel and amd saying its chips outperform the competition, laptops with these president zelenskiers wiprocessors will sp in q1. and this comes as amd stock is on a remarkable run surge more than 131%. and question for investor, how much of the good news is priced in at these levels patrick moorhead says amd has

the edge but he adds does amd have the resources to market its advantages against a giant like intel that he says is an open question intel is a big company with vast resources and dominant market share. and she also unveiled new xwraf graphics cards they are meant to speed up pc gaming he saysvidia is the preferre option >> and let's trade this here because i mean these charts have been -- what do you call it, parabolic? do you like the call, do you see anymore gains ahead given how much money has been made in just the last couple of months? >> i still like the space. the 5g rollout has been well documented but then you have the video game console upgrades as well so i think that that might tighten supply even further. and if you are talking about amd, intel, i'd rather amd

intel has not been able to break out from the highs and if you look at their revenue high specifically, it is pcs, data centers and they have big mar ca market share, but they are losing to other companies. on so i'd rather be in amd than intel. >> and i think that amd certainly has the ability to take the fight to intel based upon what is going on and they are touting that their graphics chips are 18% faster when you think about the ultra thin laptop world that is out there, this is a place very good for amd. you get back to a valuation that i can sleep with and a company that is very well positioned across the entire space. if you really want to be conservative, i know it sounds crazy, but take a look at taiwan semi this is the leader in the white label chips and i think that these guys continue to see demand we're getting updates in terms of where they see their current

inventory status >> good discussion there coming up, 20 years ago the united states exported approximately zero liquified national gas and in three years, we are ad lly to be the global export leered by cheniere energy. and their ceo will join us next.

welcome back we've been talking about oil and gas. now let's talk about lng and also talk about the stock ticker of our mexico that is cheniere energy and the ceo is joining us now live. jack, we appreciate your time. >> thank you >> and we've been asking the ceos, most are oilish ceos, were they surprised at the lack of response in the crude market given the news in iran and iraq on friday with the killing of sole m soleimani. and we didn't see a move in gas prices are you surprised? >> i'm surprised in the worldwide lng market since 25%

give or take comes can from theky tarthe ga a qataris. >> and that is the most important thing, that little stretch of water where we've had ships get mined, they need escorted, 25% of the world's lng that powers lights is coming through there. why do you think the market didn't react >> you know, there seems to be a little bit of supply and demand dislocation right now and a lot of supply hit the market this year it is being absorbed but i think eventually when it gets a little bit tighter, when something like a geopolitical happens like that, trade tensions, war, we'll see a much bigger response. >> and do you anticipate those thin things i things happening >> i hope not. >> but you have to plan. >> well, as you know, our customers sign long term contracts with us, so we have to

provide lng for the next 20 to 25 years basically all around the world. >> we're seeing supply as you noted grow we're expected to see more supply growth. there is about 20 plants that are either in project phase or actively under construction. what does that mean for cheniere can the world absorb all the extra natural -- the price of lng dollars per thousands of metric ton has already come down and stayed low to flat >> yeah, so there is a structural shift from cleaner -- to cleaner burning fuels and natural gas is the fuel of choice and it will stay that way for a long time. and as you mentioned, the growth has been phenomenal. so we've seen per annum over 5% growth in lng demand and that is forecast to continue to be that way

so new gas fired power plants, regas terminal, a lot more shipping capacity. and i think that we'll see nat gas and lng around for a long time >> and wall street loves your stock. 23 analysts that cover your name, 21 have a buy, two have a hold there are zero sells your guidance was pretty good in november everyone is anticipating ebitda growth you have a tall task to please the street >> and we've guided the street in 2020 to another billion dollars of ebitda growth which is about 33% over where we were what we guided in 2019 so we have significant growth as our contracts become -- get sanctioned and we try to underpromise and overdeliver. and hopefully that is why they like us so much.

>> yajack, thanks for taking soe time karen, 33% expected year over year sounding like a technology company not a company that exports compressed natural gas >> they have done a phenomenal job and the capacity growth is incredible and i think that we'll continue to see lng demand groi arou grow around the world. i like the space longer term the past year, it hasn't been great. improved a little the last couple months. they have done an extraordinary job at cheniere. >> all right karen, thank you very much we have a market flash from what i understand with mr. trafrank holland. >> often thought of as the starbucks of china falling 5% after they nowed a seannounced r

share. nearly 5 million will come from another shareholder that is not being disclosed. ipo lockup expired in november so again, shares of luckin falling more than 5% after the company announced a 12 million share secondary offering the company again very hot this year up about 96% over the last year. back over to you >> but falling a little there. frank holland, thank you very much tim, you can get upset about a 5% drop after a nearly double on the year >> no. and this is not only a china play, but a smart hedge fund play the folks that own the stock and riding the stock, again, this was a $17, $18 stock in deck 31, a high of 40 bucks. but if you think about morgan stanley asset management, you have had a number of the big stocks, tiger global being you have a major hedge fund force in here and it doesn't surprise me

that there would be a push for some kindly liquidity at those major levels and again, by the nature of people, they are actually shorting the stock the minute they come out or even in advance of so this entire movement based upon moving in the stock, players involved and how they tend to react, this is according to script. >> all right tim, thank you very much and we know that you like coffee and we also know that you like cannabis so coming unafter the break, we'll talk about constellation brands, what iths e options market saying about it we'll find out since my dvt blood clot

i wasn't sure... was another around the corner? or could things go a different way? i wanted to help protect myself. my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot. almost 98 percent of patients on eliquis didn't experience another, and eliquis has significantly less major bleeding than the standard treatment. eliquis is fda-approved and has both. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. if you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. while taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. what's around the corner could be worth waiting for.

ask your doctor about eliquis. and with the sxfinity stream app, screen is your big screen. which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly.

even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. welcome back to fast money tomorrow morning it is really all about booze and cannabis constellation numbers are out. what is the market expecting let's find out here is mike khouw >> so constellation brands, right now the options market is implying a move higher or lower of about $9.5, that is about 5% of the current stock price might seem like a lot, but relative to the average of 6.5

or so, that is actually low. however not everybody is betting on a muted move. we did see a buyer of the january 200/250 strike call spread and the buyer is bedding that the stock could rise above that 202 by at least the 60 cents that they paid and that would represent about 8.5 increase and you could see a move as much as 16% that this person would be betting on when they make that bullish bet. and just take a look at the last earnings quarter, a big disappointment, essentially making the bet that the stock could recover back to the prior levels and earnings has typically seen elevated levels of volatility. you can see that there are points here where we see elevated volatility, and almost every one was the result of earnings so a slow probability bet, but we have seen moves of this

magnitude in the past. >> mike khouw, thank you very much and tim seymour, constellation right up your wheelhouse a disappointing stock the last year >> certainly they have taken on a lot in their cannabis growth and this is a company that has been a pioneer growing in emerging markets so i think that it is right up their alley. and if you think about where the consensus is, around 186, some of that doesn't reflect where you actually had canopy growth reported january 22, about a $50 million loss their core beer business has never been healthier they have seen some pull off in their wine and spirits business. but i think 2020 it sets up very well and i think that they have endured a lot of pain in can that busine cannabis for being early i do believe in the management

team here. something you should look at >> and tomorrow morning is a big day for stz. tim, thank you very much just a reminder, you can catch the full "options action" show every friday 5:30 p.m. eastern walk you through all kinds of trades, learn about option and ways to make money comingp,our nathgh u yfil outs and final trades ♪ ♪ ♪ our retirement plan with voya gives us confidence. we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us.

i'm good at my condo well planned, well invested, well protected. voya. be confident to and through retirement.

now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. 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.

welcome back it is that time, final trades. let's go around the horn tim, kick it off. >> how about the company chain starbucks which has been a little bit rocky, but the valuation i don't think terrible somewhere around 28, 29 times. i think the management team is built to win starbucks. >> karen >> keeping on the energy theme, golar lng, i like what they are doing. i think that they will add capacity and we'll see additional ebitda there as well. >> and i think facebook looks interesting. looks like it is about to break out from a two year base and 33 times forward earnings,

certainly a lot better than the five year average at about 50 times. >> and macy's going to rocket it since the goldman downgrade in early december and thanksmuch appreciate it. see you tomorrow "mad money" begins 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 teach and put it in context, so call me at 1-800-743-cnbc. or tweet me @jimcramer. hope springs eternal at least for tech it does. every year for the last three years the market has come in hot in january the real strength is in th