sandisk, and ca and xilinx.y they use is a great idea. >> yeah. okay, so xilinx. sandisk we know. users buy their stuff for flash memory, phones whatever it might be. talk to us more about xilinx. that's a name that ironically we used to talk about a lot. it's kind of been off the radar. why do you like it? >> well we like it because it has stumbled recently but it doesn't necessarily mean that the business model is broken. the people that they sell their products to they make something called a programmable gatorade chip. they're used in mobile networks so base stations things below the antenna of the tower. china mobile stopped buying in bulk for its . >> i understand that you own ca kim? >> i do own ca. fort pitt and our portfolios own and, and i own it as well. it has a huge component of mainframe software. the mainframe has not gone away. it's still an integral part of many businesses. >> the new ceo is bringing the company in from decades before past. they're trying to show people that they're relevant, an

. >> names like delta airlines, microsoft, sandisk.because that's a stock that got hammered off of its earnings. it's one of your top growth plays, why? >> well, first of all, they're the leader in nan flash technology and they have a big margin expansion opportunity as the world goes to enterprise drives and also to solid state drives. one of the reasons they missed the quarter last and also guided to a more subdued '15 is for a lack of supply which i think is a high-class problem. >> you think the market overdid it on the the market overdid it on the downside? >> i sure do. with the stock at this range i probably would buy it right here and now. >> let's switch to microsoft. nadel nadella, should he be on the hot seat or not? >> i think he's done a good job of pivoting the company toward cloud computing. a lot of people don't realize this is one of the biggest cloud computing software companies and growing the forecastest, even more so than salesforce.com. you've seen a slowdown in pc volumes. i don't expect it to rekindle that much.

people listening on sirius xm, urban outfitters, sandisk. sandisk had a nice run-up but isn't that a commoditized business and depending on prices, you could really get hit here? >> that is an extremely volatile name, and they have gotten hit. theya were well above 100 earlier, in 2014, they've had some challenges, and that's why i'm suggesting that people take a look at this. they do have one thing that troubles us, they have an outstanding patent issue with another company, and this has to do with making a solid state drive. those are the things you would find in laptops and tablets as opposed to spinning disk drives. this is a much longer term holding than most investors are looking for, but i think it's a great opportunity, and you're right, it is at some point, a capacity sort of game. but take a look at it. david: kim, dan and bob, thank you very much, we will see dan, by the way, when the s&p futures close in just a moment. liz: big news, the president met with german chancellor angela merkel at the white house. the two leaders discus

. >> micron in the same theme as sandisk. micron. >> beakers?t a typical one for b.k., but i like the catalyst coming out over the next couple of weeks. a good risk/reward. >> guy? >> i don't know if i'm allowed to see this, but brian kelly is going to make an oa appearance coming up. that is hot. >> it's going to be big. >> stay tuned. >> what's your final trade? >> gmcr. say something positive. they have. stock is off to the races. >>> that does it for us on "fast money." catch us back here monday at 5:00. don't move yet. "options action" is up with a $7 million bet that ge shares will rally 30% this year right after this break. stay tuned. about retirement. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro, you just don't know. find a certified fi

as for sandisk, this was big in 2000 but it's continued to outperform. the penetration in ipads and the like because they make the flash memory drives sandisk does. i think the stock is very cheap right here, sndk. i bought it because i thought it was so cheap. as far flash drives that you see in macbook airs as soon as you turn the computer on that's on. a lot of upside for this one and another one kind of related, guys would be qualcomm because they are both -- if it's not pcs and/or ipads it's cell phones and qualcomm cdma technology they have changed their mode to go from just going for that to some of these other markets. that hasn't panned out as well for them, quite frankly, it's just sticking to their knitting. i like qualcomm an awful lot. i think that is cheap relative to the market here. >> you're the second person who told me that viacom is also cheap. they generate a lot of cash but stock doesn't reflect that. why do you think that is? >> well i think this is one of those situations bill where you've got, quite frankly, some in the red stone

. >> sandisk? you like them a lot. >> sandisk is interesting.g thing about nan-flash which is typically a command over time is that demand in that space is healthy. one of the reasons for that is it's tougher to manufacture some of these chips. and what happens is that limits supply which makes a nice supply/demand balance. >> can we talk broader for a second? i look at nasdaq when it was at 5,000 the last time. i was here at cnbc when that happened. then watching for years, dead money at the nasdaq. right? if you bought the qqqs nothing. then a year two years ago, that market's finally started to turn and make a real comeback. what finally happened do you think? was it qe? was it simply apple? what was finally -- you know we can ask the same question about japan that finally moved after 15 20 years. what was it that made the nasdaq turn? >> i think the biggest part of the equation has been qe. not just the united states but abroad. and the tech sector which dominates the nasdaq is particularly high beta. so it has a particular boost when the wo

sandisk got clobbered because the consumer aspect, consumer part of their business was weak. >> they got clobbered also because two weeks prior to them making that announcement, they said basically everything is okay. qualcomm to me, nothing that you just said manifested itself from the quarter we saw from qualcomm. obviously a big bounce today. maybe you saw the flux at $62 on 48 million shares worth of volume a couple days ago. but it faked me out. now, it has to prove itself. get back above 70 before we even start talking about it. >> plus you have samsung flooding the market with these products, too. so that's the competition. that's what micron trades off of. and both those pricing charts looks horrendous. so if you're going to take a flier out on it, don't go all in on this. because what makes up micron right now is decreasing in price, the commodititized pricing is being hit extremely hard. >> at the same time, would you -- i mean, is intel still a buy here? >> i think it is here. i think it's going to be very defensive in this environment and i think they've shown that they'r

sandisk getting sold off. >> let's talk some hp.ompany is flat heading into its earnings report after the bell today. hewlett-packard also finalizing the split of two core business segments. should you buy into the hype, or is hp's run about to come to an end? let's debate it. tweet us@cnbc fast money. the hash hague bull or bear. josh is the bear. pete is the bull. >> i think actually pete has been right for a couple of years on this company's recovery. now the question is how much of it is already priced in. stock is down 5% year-to-date. up 45% in 2014 versus its comp peers which you were up 16%. i think although good news is in the name. i don't know what's going to happen after the earnings tonight, but as a general rule, stock now below the 50 day. think a lot of the the enthusiasm is over. i would just be looking elsewhere. although i don't hate the fundamental story here. >> right. all these points are valid. however, i think this is going to be the catalyst coming out, which is the earnings, and know wants to hear from meg

sandisk, do you like it? >> i do. >> you do? >> i do. >> do you own it? >> i do not. >> gilead.? >> it is. >> now we have a debate. >> ten times earnings. >> repurchase plans, incredible pipeline, and growth continues to be just absolutely staggering. even in the 2015. >> you know my one complaint, and it's a single complaint. it's just the price of the drugs, you know, worried about that for some time, and gilead has been scaling the cross hairs, worrying me about it. >> it might not be. >> if the drugs are knocked down in price, and they have -- >> they come under assault already on that. the stock was hit back down not that long ago trading at 92 or $93 a share, and now it's back over a hundred again because they look at the pipeline and hep c comie ining out in the fu. >> what about qualcomm? >> it's cheap, a 120 billion market cap, net cash, jen rating cash like crazy from non-capital intensive business. they are about patents, do little manufacturing themselves, and, yeah, they have misses here and there, but they are -- i like them. >> quickly before we go, western digita

sandisk, 36% gain. you see express scripts, the only loser was bonanza creek energy. down 45%. are you still holding on to bonanza creek? >> no, we sold it. 0% weighting. there's a glut. roughly if you look at the data, there's 93 million barrels a day of production depending upon seasonality in the united states, the overall demand between 91.5 and 92 million barrels a day, and the saudis aren't going to play ball, so i think the price of oil stays low for a while. liz: still hovering around $52 today. how do you pick them? how do you pick these stocks? i know you said you find investment opportunities by modeling relevant financial information, but what to you is relevant, scott? >> well, we look for companies that can earn over 15% on book, that have strong cash flows and balance sheets and that typically sell under a 13 multiple. so the market multiple today with the close is roughly 17 times expected earnings. by buying something with 13 or below, you build on what benjamin graham called the margin of safety. the idea is not to trade a piece of paper, it's to buy

. >> let's get over to the cme group, rick santelli and the sandisk santelli exchange. >> good morningn. good morning, sir. >> good morning. >> all right. you know at a time where the budget was presented by the president, which is normal operating procedure that we did get away from that for a few years, there's been a lot of debate. now probably not going to pass in its current form but my area of contention is on the cbo and how they score various aspects, whether it's tax policy or the like. the notion of dynamic versus static maybe you can explain what each is and why the cbo seems to reticent to move towards a more dynamic modeling which of course takes into consideration the biggest issue, human behavior. doctor? >> the cbo and the jont committee on taxation score bills, try to figure out what happens to revenues spending and when they do that they attempt to put into it reactions to how much people work how they shift their portfolios a bunch of behavioral responses. what they don't do typically is incorporate impact on economic growth. does the economy get bigger does it get s

rick santelli and the sandisk exchange. rick?ednesday and we have homer homer jenkins jr. >> glad to do it. >> listen american recovery reinvestment act of 2009 roughly 7/8 of a trillion and promised shovel-ready projects but as americans looked around in the dust of that they didn't see hoover dams or a new power grid they lost trust in shovel ready and the multipliers that sold it never worked out well. what is the current state of u.s. infrastructure and are we ready for another stimulus. >> a lot of what every level of government does all day long state, local federal, identify investment projects and invest in infrastructure. it's not infrastructure has been ignored. i think the real problem, a better idea to have a big top-down project with congress and obama administration in control where dollars go or should local politicians respond to voters complaining about bad traffic, businesses complaining about bottleneck for transportation and energy? i think that democratic accountability is the good reason why we don't waste m

we've seen that from sandisk and that is the kiss of death. now, the conference call's going on now. the problem with u.s. is like seattle seahawks. you've got to wait a full year before you come back. u.p.s., not only did they throw a pick okay i mean it was a pick, but they intended to it's like they intended, we can't possibly give it to lynch that would be too good. like number 538 on eespn. no belichick was fedex, these guys are pete carroll and now you've got to wait another year. >> for the year 505 to 530. street 505 to 6. >> do a big buyback, boost the dividend, being more tough. i think that they lost credibility the second time or else we have a change at the top. now, remember my change at the top, mcdonald's, got it. okay? my change at the top, u.p.s. not yet. change at the top, twitter. they're digging their -- they're digging their heels in -- my take is that it maybe they know the quarter's good because a lot of people -- you have 110 million people watching, maybe tweeters. >> yes. >> you see monthly average user. everyone's t

we're not going to get into express scripps, checkpoint and sandisk i believe it was. scott black of boston. thanks for taking time on your frigid friday for us. we do appreciate it. have a great weekend, buddy. stay warm. stay safe. thank you. >> thank you very much. >> susan and ty we came up here. it's not just for the weather. we have a great line-up in the 2:00. a bunch of investors, including the co-on of the boston celtics. they made a lot of trades yesterday, but we'll talk about investing as well and maybe, maybe, a little bit about the weather. how can we not? back to you. >> i'm telling you brian, i know you're familiar with the upper peninsula and michigan but it is cold there today. go ahead. get some snow. there he goes. whoa! >> it's got to be cold literally when you can hold a snow ball like this together. it's ice everywhere. it's unblooechl. >> unreal. brian, we'll see you at the top of the hour if not sooner for more "power lunch" from boston. >>> in a much warmer client the 87th academy awards will take place this sunday. the impact of a win means b

the fifth stock that we did not name is sandisk. >> hedge fund invest issing usually expensive.ting 2% of assets and 20% of profits. that's like a diamond-studded fur coat someone left in a bentley. fear not because our own jeff cox thinks that he has cracked the code on how to invest like a hedge fund whale, but cheaper and without a staff of hundreds. jeff cox, welcome. what is the secret? >> brian, if you can't beat them and you can't join them clone them. >> that's what we're talking about. like a sheep. >> exactly. like a clone fund. it's an etf where managers follow these 13 f form ebbing closures. what they're doing. the thought that they're picking. they put them into a low cost fund. some are actually doing okay. let's talk about a couple. one is the alpha clone fund. that's $100 million fund started three years ago. up 12.5% last year that didn't beat the s&p 500 or did beat by a mile the total hedge fund returned in the industry. another one, global x gu are you. blockbuster, 2013. about 47% gain. also, the iq hedge multi-strategy tracker. that's a $1 billion fund. it