tv Fast Money Halftime Report CNBC May 31, 2012 12:00pm-1:00pm EDT
is down 16%, heating oil down 14%, with the dow down 55 this morning, the dow has closed lower on the final day of the month? six of the last eight months. that does it for us today. let's get to headquarters and the "fast money halftime report." >> thanks so much. with four hours to go until the close, here's where we stand on the final trading day of a pretty dismal month for the market. right across the board, the industrials off by about a half percent, s&p by 3/4 of 1%, disappointing adp report. let's go commodities today. gold and crude oil are both down all full month for commodities, the crb index down 11% in the month of may. we're keeping a close eye on what the euro dollar is doing. the euro today is at 123.6 versus the u.s. dollar. let's get to the top stories.
facebook, face plant. the stock dipping below $27 today. we're talking to the man who called that plunge and see what he's thinking. henry blodget joins us on the damage that stock is doing to the overall ipo market. walmart working. it keeps getting money but is the chart overextended. and sell walls fargo. it's a contrarian called and we're talking to the analyst who says you shouldn't be betting on the steady eddie bank. we can get straight to the traders and find out what not only they're thinking about the facebook slide which continues but the overall market in general. pete, you know, pmi weak today, adp weaker than expected, energy, materials down yet again today. >> and not getting any help at all from the likes of a joy global, for instance. but when you're looking across right now, looking for any green signs, it's very, very difficult to find very much of anything right now. although early in the session you did see some positive moves
out of apple, out of jpmorgan. i think the biggest level of concern is the fact we got in the volatility index that got up and over at that 25 level, pushed over that 200-day moving average. it's below there again now. that's something i'd be watching for the rest of the trading day. >> there's a lot of focus on what treasuries are doing. if there's one bright spot in the market today, i guess it's utilities. >> whoo-hoo! >> pull out the flag for that. >> i think the world is close to coming to an end, i think the market's going lower. they can't break it today, through 1,300 in the s&p, you're setting up in a huge, in my opinion, snap-back rally tomorrow. all data wasn't catastrophic and the bears could be getting ahead of themselves today. >> doc, give me the read on facebook, the slide continuing there, breaking below $27. that's where it sits right here.
>> this is more or less the range they first told to us expect for facebook more or less, judge, 26, 28. that was before they ratcheted up the price and those other 85 million shares. today it seems like we did see a bit of a flushing again but the company has gone radio silent. we're hearing nothing at all from the company. we're go to hear from people an admission over at nyu school of business and most people don't follow that as far as where they're going to put their investment dollars for the main reason if academics could pick stock direction, they wouldn't be academics, they'd be trading, yet that's what people are focusing on today. >> isn't at some point facebook attractive enough to take a flyer on under $27 or thereabout s s? >> i think 27 to 30 is interesting but you have to let
the dust settle, scott. there are so many factors as to why this stock is selling off. number one is there's too many shares out there. now it's starting to feed on itself, retail is beyond itself in terms of what's happened and you've got to let the dust settle. >> you bring up 27 in the context of a $38 ipo price, if it's 27 in the con 27 in the context of 30, we'd be having the same conversation. given a selloff, in my opinion it's still rich. >> the psychological slide along with what we're seeing is pretty dramatic on a daily basis. >> yeah. it is dramatic. pete made a great point last night. it's not like people didn't know this going into facebook where the valuation was so i'm surprised that people are surprised that it's here. >> the hits keep coming for facebook.
i'll tell you somebody who is not, that's our next guest. he called the drop in the stock and think it has lower to go. sir, it's great to have you on the show. as we watch, as i said, the slow motion fall here from facebook almost daily, it surprises a lot of people you're not one of them. correct? >> not really. i think in a sense this could have been called early on in the process. i think there's a lot of talk of pricing here and very little talk about value. and that's i think common in this sector, a lot of people buying the stock because other people are buying and selling when they think other people are selling and too little talk about value underlying these prices and i think the value's caught up. >> how do you even value a company like this when maybe it's fair to say now that so much of the valuation talk was based on hype rather than fundamentals, now we're all worried about the fundamentals so the valuation perhaps is coming down and what the
prospects are for it going forward. >> i think you value a company like this just like you value any other company. a lot of uncertainty about the future but that doesn't mean you cannot make your best estimates given the information you have at the point in time. i think the pieces for doing a fundamental valuation have always been there. most investors don't want to val utility company. they'd rather price the company than value it. >> what's the biggest issue you see going forward for facebook in having a $70 billion valuation, a $29 stock price? is it revenue growth slowing, margins slowing, more fundamentals behind the business, inability to monetize mobile? >> i'll tell you what worries me the most in this company, i think they will deliver revenue growth and sustain margins. it's what they're going to pay to grow the revenue growth is
what worries me the most. having watched them over the last couple of month, it's quite clear this company will be very aggressive about buying revenue growth, buying companies. i think they're going to go on an acquisition binge directly primarily at delivers the revenue growth that analysts expect them to deliver but i think in the process they're going to pay too much for that growth. >> given that you came in with a negative skew on what you thought facebook was going to do from an ipo standpoint, are you even surprised at how dramatic the turn has been from a couple fridays ago? >> it's the nature of momentum, right? when the momentum is going in your favor, everything is fun, a good story. when the momentum moves against you, everything spun is a bad story. i wouldn't be surprised to see facebook keep dropping for a while. all those investors who bought it because they expected it to go up are disappointed, they're getting out. i'm not surprised in the shift at the momentum.
i'm just surprised it happened so quickly after the ipo. >> aswath, thank you for being here. >> what kind of acquisition? we're looking for any kind of momentum to shift from the the selling. the weekly options are out now. when you're looking at facebook and he brings up the idea of acquisition, i don't disagree but they have to find acquisitions to give them money for the bottom line to get them excited about facebook. >> we're going to be visited by henry blodget a little later in the show to talk more about facebook, what it means for the overall ipo market. there's news overnight about the kayak ipo and how it all fits together. we'll talk to bloj bet that and where he would rate that stock, facebook, if he was still an d analyst on wall street.
>> energy weak, financials some of the worst performers. is now the time to prepare your shopping list or should you stay cautious? guy? >> you have a list. >> yeah. i think it's a great day. a couple names sort of to me appear out of nowhere and the first one is caterpillar here, after a $30 selloff, if you look at cat and you believe that the joy global news sort of put the capitulation bottom in caterpillar, caterpillar here at 86.5, wherever it's trading now is extraordinarily interesting. a bit of a double bottom, if you think the tape will hold and people are getting ahead of themselves on the short side, cat sets up for me the best since january. >> stephanie, what's on your list? >> i like disney a lot. i also like some of the domestic banks or financials have gotten hammered, we talked about a usb, a sun trust. i think both of them are really great long-term holdings and i
think still housing is on the mend. i know data points this week were mixed but i believe that theme works throughout this years and i like wirehouser. >> doc? >> i'm more or less waiting for that flush and i was actually hoping that guy was right but that he was not right yet. in other words, we were down a hundred points early on. we've cut that loss in half. that was a pretty quick comeback and it was led by financials primarily, at least from what i saw. i saw jpmorgan turn, deutsche bank turn to the up side. i had hoped we'd see that later in the day rather than just before halftime. but those stocks in particular in are on my radar space. >> global hunt are came out today and put a buy rating on the walter energy in the coal sector. that's have add 79 price target and it's trading at $48, $49.
you're talking about a $30 price target. what about joy global? it has been absolutely smacked but it got all the way down towards 53.30. and here it is at 5d 5 a share. >> deservedly so, right? they cut their outlook. >> it's more modest outlook. i'm looking at the joy global. there's an overreaction. i'm not in there now but i might be by the end of the day. >> economic data adding to market headwinds today. how does this set us up for tomorrow's jobs report? what should we expect from the fed? steve liesman joins us with what you should be focusing on. i'm just wondering what today's data will mean for what the fed is -- the -- some of the underliving data, even though it's weakened, still supports
that idea. the trouble is momentum. when you yous guys start drawing your charts, the concern is we're weakens the way we have after coming through a relatively strong first quarter. i think this brings the federal reserve back into play but i want to get to that in just a second. let's talk about tomorrow's number, which the estimate was 155. i'm seeing economists coming in and lowering their estimates because of the adp report. i'm thinking 125, 130. >> the lowest i saw was 95 maybe. >> under 100, that's a number that brings the fed right back in. i think it's not that simple. but it could bring the for back in. i wrote you a checklist. that's the non-farm say roles number. i don't know if you have my checklist back there but it begins with weakens if we get
into a zero handle, 0.8, 0.9, that brings the fed back in. if thein employment shoots the other way, if we start ticking up. but we need a couple of months of that to tick up. all of this pointing me towards an august decision. when i go to jackson hole, it's always a consequential meeting for reasons that are never expected. let's go on and take a look. inflation, i think we have some inflation working through the system right now. on the other side of that it's going to start ticking down. >> exactly. look for a zero handle. if i get there, it's going to blow up, if the fiscal cliff is going to happen, i think you need to check one or more of tease things. i don't think any one by themselves brings the fed in except the shocks themselves. >> the two things that jump out most to me, labor market, an important metric, if not the most important. and europe.
you could get a shock out of a a -- >> that's the one thing. it depends upon what it does. i think we have two pieces of european danger here. one is the direct sort of economic effects of a europe that's in recession. that's going to wash back son some of these u.s. corporate earnings. we talked yesterday about some of these companies that are pretty dialed into you were. the other is the contagion. i feel like we've made some progress in limiting that contagion. but it's still going to be in the money markets who are lending short-term. but even if i came on tv in the middle of a shot like that, who am i, kevin bacon? all is well? i think people are still heading for the exits. kwooef limited our exposure to europe, we haven't ended it. >> i agree with everything you
say, except the jobs. the fed, i don't think they can force people to hire. you can throw as much money, stimulus, whatever the term is but companies are not hiring. and balance sheets have never been better and productivity effectively has never been higher but there's no urgency, it seems, to hire. i don't know if the fed can force their hand that way. >> i think the fed looks at its dual mandate from congress very seriously and it knows it's missing on the employment manned day. it know it is can't affect the long run of inflation but it believes that its policy can nudge the economy back towards the long run inflation number. let's say that long run is 5.5 or 6%. it feels like if the numbers are going the other way, it needs to get easier to nudge it back down that way. >> rates are already so low. we talk about the ten-year every day now. historic 60-year lows. does that limit's the feds
ability to have any -- >> i think you pointed to the real frustration of the federal reserve now, which is policy has no traction. it's not affecting the housing market and sectors that it has in times of expanse and fed easing. the question becomes -- first of all, we're all being surprised here and our pryors are being taken out on what's happening at the ten-year yield at 1.5%. it's interesting that yields are falling with basic expectations of no expectation of fed action policy here. i don't think the fed wants to mess that up. so you have the health qe. >> steve, thanks. as always, coming up on halftime, one popular american retailer surging as the market
continues. we'll give you the numbers after the break. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity.
let's get you caught up with facebook yet again. we want to follow the stock throughout the day. it has dipped below $27. it's barely above that level. let me give you our chart of the day. that's walmart. is it cruising for a bruising here? we're looking at a pretty good gain here. >> now we're at december '99, january 2000 highs. unfortunately now for walmart it finds itself in a similar position caterpillar was back in february where it really needs to blow through this potential double top or you could get into a situation where you put in this high and then is sells off. i love the name and i do think the tape could reverse today and actually close higher but i think for the walmart camp if you've been in it, good time to
be taking profits today and maybe reenter the trade on a close before 68. still love the name but you got to respect the potential for a double top here. >> retailers recover from april slump delivering solid same-store sales for me. and chuck, it's good to you have. how are you? >> good. how are you? >> there have been some questions about the high end. why are you convinced it's going to hold up? >> there's a couple guys at the high end. sachs was plus 20 from a year ago. >> chuck, i apologize. we're having trouble with your audio. if the meantime, we'll have the conversation with our traders. costco was a miss, gap was a miss and chuck, we may or may not get him back, but his
winners in this space would be target, sachs, macy's -- >> how about the discounters, though. look at what ross stores is doing, tjx. they're looking for 3% higher and report 8% higher. look at dollar tree, for instance. are they overextended? i look at dollar tree up above $103 a share. you just wonder, they announced a stock split. this is a company doing everything right and they're stealing some of that away from walmart. walmart is getting some back but i don't think they're coming from the dollar staores. a lot of names are working well. >> costco's core number beat at 5.4% and accelerated from last month and traffic was up over 4%. i like that name. i'd love it to pull back a bit. we've been in tjx, we're taking some money off the table. i think the tailers
is where you want to be. >> i like sachs, pushing up against a 52-week high again. it's already approaching 4 million shares at noon. that's a very strong performance out thereof. it doesn't look like that one's stopping. i'm not calling for a top in tjx, though i don't blame stephanie for taking money off the table. >> how about kohl's? anybody like kohl's? >> look at tiffany's. if you believe in the high-end trade, clearly tiffany's is not participating. but the good news is finally again you might see a capitulation -- >> i wonder if the tiffany story is somewhat broken well tiff to the other higher end names. >> i the stock has clearly been broken. i think the story is in tact but
the stock is telling a different story. i think today is the first time in a while you could take a being look at tif. >> pete, are you thinking about tiffany at all? >> not at all. >> when they talked about their flag stoship store -- >> it does have to be something that concerns you. when you look at some of the athletic wear, looking for opportunities, i like the way lulu's pulled back, i look at nike, underarmour. you didn't get enough out of nike butt athletic gear doing well. >> what about the nike news divesting cole haan and umbro? >> it seems to make some sense, they want to get into the jordan brand and away from the nike brand. everyone is trying to unlock what they think something that's going to drive the profit noose
the future. >> i'm told we have chuck grom back on the phone. i want to get one quick comment. best name in your coverage universe is and why? >> i think the name you want to own here might be target. the 4.4% is better than expected. the business dwreyear to date continues to be consistent and much better than what we saw. the stock is cheap and sentiment is still bearish. >> chuck, sorry for the bad connection. we'll have you back on again. >> david ritter has the contrarian bank trade of the summer next. and on june 7th, "fast money" is heading to chicago. you're invited to be part of the studio audience. we'll be right back.
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was in negative territory. here it is up about 25 points. it's a small move into positive territory. pretty stunning when you consider where we started the show. the dow has only had five up days for the month of may. the imf apparently is in talks about spain contingency plans. the imf talks took place at the fund's european department. according to dow jones you can see considerable moves high in the euro, breaking back into positive territory versus the u.s. dollar. that has helped the dow move positive. that's jpmorgan, one of the dow's worst performers for the month of may but here helping the market overall. at least the dow will get back into positive territory as this is the final trading day of a pretty weak month for the markets. gold is on track for its fourth straight losing month. pete, here's the chat here. a little up tick. >> if you look at the gdx, the
gold miner's index, it's had a phenomenal run over the last two weeks or so, up about 12%. the gdx yesterday led some of the most unusual activity we've seen. so this is about the price level they were buying yesterday. i would expect to see the gdx push toward 45. >> goldman is calling for a breakup of johnson & johnson. steph? >> it's outperformed. they have to do something. the new ceo indicated he wants to get bigger, not smaller. if you want to go with a pharma company, abbott is already announcing a split and trading at pretty good multiples. >> ubs upgrading jetblue to a buy. valuation is a bit of a call here, too, but lower fuel prizes
good for consumers and airlines. >> you have to be careful with price of fuel because i think there's no reason why this stock shouldn't be trading well north of fi of five bucks. >> wells fargo the favorite, take a listen. >> i've been wells fargo. if i didn't have a full position, i'd probably add to it. >> i like asset managers but if you're going to go to any banks, i think wells fargo is the place to go. >> something like jpmorgan, maybe you want to let the dust settle but wells fargo, you definitely have opportunity will. >> but our next guest doesn't agree. he has the only sell rating on the street. he's davis ritter of argus
research. welcome. >> thanks for having me. >> hard to find anybody on the show who does not like wells. what's up with your call here? >> for me it starts with revenue growth. it's always been a very sales oriented culture, focusses on the cross sale. at the analyst day last week they talked about the wallet opportunity going forward. but for me they didn't spend time talking about having the right products in place. it's harder to cross sell when you're talking about things like home equities, debit cards. at the same time late last year they shifted their focus called project toppias, which is really counter to their dna. at the same time just last week they said that they wanted to add more locations. so that concerns me that
shifting to an expense control is just not in their dna. they're a long way from their year end expense goal, about 1.75 billion away. so wrap it up, it comes back to you'll havation. they have a very deserved premium to the other big banks based on superior long-term performance. they raised their long-tefrm ira guidance so i think expectations are up. i think expectations are the trader because of the plethora of positive calls they've made. >> it seems one of the things that everybody points to is the fact they're a u.s.-centric. couldn't you see wells moving to
the upside with the rest of the financials and maybe lead? >> i'm more a bear on housing. i think there's more down side coming from housing. but aside from that, you know, wells has come to real dominate the mortgage origination market. as b of a and others have -- i don't think that's a long-term sustainable trend and they made up a big share of their earnings in the first quarter. so going back to and in the long term we still don't know what shape the u.s. mortgage market is going to take. legislators and regulators have not really even taken up that issue yet. >> david, one, i think wells is like 1.25 times -- 1.25 price to book. i think u.s. bank corp is almost close to 2 at 1.85. is usb too expensive here as
well or do they deserve premium? >> i think you can't -- it's the exposure to capital markets that the big ufl banks have. at the same time, i think they're still facing long-term revenue precious, both on the fee side and also on the lending growth and lending margin side. you know, who'd have thought here we are with a 1.5% ten-year note? that's not going to help those banks over the nest year or so. >> let me get to your call on morgan stanley because it can be saids' kwully as contrarian. you're bullish on a name that many of our traders are negatives. there's ipo and whatever kind of reputational miss being.
and zpl probably my patience has been tested of late when it comes to morgan stanley. i guess the way i look at it is the stock is trading down where bank of america and city are. that's understandable when you look at some of their past miscueses over the past few years. but at the end of the day, i've never liked that mod, i think it's a growth business in the long term, it's just in a deep down cycle. we have get through volcker and some of these regulatory continuings but morgan stanley, even though facebook you could call a black eye, they're still a global leader, they've had improved results in recent quarters in their trading business and i think it's going to come down to catalysts for that stock. i mean, it could come down to increased capital return. i think they decided to do the
morgan stanley/smith barney acquisition in more of a piecemeal fashion. that could free of capital to return to shareholders. there's certainly room to increase on the brokerage side. i look at that at as a stock that trades at a depressed multiple. >> steph, a i'm sorry, i got to wrap it there. we really reerkt you. >> steph, my apologies. where did you want to go here? >> that's okay. i think morgan stanley doesn't have revenue growth. his point on wells -- there's a lot of banks that are cheap. the regionals are really cheap and they have a little bit less headline risk i think. >> let's not forget to remind all of you, jim gorman, the ceo of morgan stanley will be on with maria at 4:30 on "the closing bell."
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welcome back to "halftime," i want to show you this chart. erasing nearly all losses on reports the imf is considering contingency plans, they've met on that fact. can you certainly see a move on the euro today, which is below 124 versus the u.s. dollar but has moved positive versus the green back in the last several minutes. there's a look at facebook. we continue to follow that story, the stock's continued slide. it's off almost 4%, just above $27. is facebook's poor performance killing the overall ipo market? kayak announced last night it's postponing its debut. let's bring in henry blodget. welcome back.
>> thank you for having me. >> how much of this facebook situation you think directly is behind kayak delaying? they were perhaps going to start their road show the monday after the facebook ipo. >> i think it's hard to say. they're saying, look, we didn't commit to a time frame and i gather the cfo left the company recently. that's going to be a bigger reason than anything going on in the market. can't go public without a cfo. >> for ipos in general going forward, will there be any long lasting impact going forward? >> i think facebook will throw cold water, if you press buy on the ipo, you will be handed a pot of money that you can just flip. think think you'll have the jobs act, it will mabel companies to goic bl pick. and we have good, reason valuations for good companies in
the market. they're not silly. so if -- but the valuations are fine and the market should support ipos. >> but to your first point this is going to harm investor sentiment toward iposs going forward, isn't this a real possibility that this is just a one off, that the next big one hyped up down the pike will be widely acceptance, simply on the notion that greed wins out over here almost every time. >> we always go through these cycles. it really depends. i think it's going to take solid companies. sure, i think a lot of people even on the first day with facebook, though they were disappointed by the size of the pop that whole first day they could have flipped for a gain. so people will look at that and be positive. the market still should be open for good companies. if you want that, companies are going to have to stay away.
>> let's go facebook specific in terms of what the stock has done. how prooiz are you -- br would you rate the stock from where you sit today? >> this is a very big pull back for a very country -- it's great you're having james on from morgan stanley to ask about this -- i think the ipo was incredibly unfair and big institutions were told facebook is having a lousy quarter. a lot of individuals who bought the stock had no idea that was happening and i wouldn't be surprised if the reason that a lot of people realized whoa. in terms of where you buy it, it was just very expennive and when i ran the numbers and pencilled it out, this is a mature business, it's slowing down.
unless we see some good, db mash it should take out in the 20, to 25 earnings rang so if the market starts to feel really conservative about it, it can get there. >> do you think morgan is worried going forward? >> i think morgan stanley has taken a huge hit. in part unfairly. everyone views it as a huge disaster and they blew the ipo. i thif given the mark-- think g market, they got facebook a very good price for the stock and on the first day any of their clients who bought it could have sold it for a gain. that's what you want in an ipo. you don't want to give huge amounts of free money just to playing the ipo.
so they did well. the selective disclosure is a real problem. i'm not blaming morgan stanley up front for that because i think they'll say we followed the rules. but the fact the rules allow your analysts to talk to institutions and say the quarter's not going well, have i to cut my numbers and nobody in financial land finds out about that, that is screwed up and that has to change. >> i know you'll, watching later, so will we. >> thank you for having me. >> joy, global dropping of%. >> and wasth the bookings, down year over year were concerning. i think this is giving an opportunity to get long. caterpillar with a stop around 86. joy global is interesting, cat more so for a trade. >> pete? wynn resorts dropping today?
>> you're talking about the low end of the range, yesterday goldman sachs had a buy rating. i agree with them, i think this is a good opportunity, something i'll do after the show. >> stephanie, peabody down 3%. >> i thought it was they're close to selling an australia -- at six times ebb da, if you're going to be there you have to have a long-term time horizon. >> leap wireless is going to have a prepaid phone. they came under pressure and submitted to underneath where it was earlier in the day because of that pressure. >> all right, coming up on "halftime," we're trading what's on twitter. >> i'm brian sullivan.
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all right. welcome back. the euro low versus the u.s. dollar. how can you play the news out of europe? let's bring in willie williams of soc gen. i suppose you're going to tell me short the euro versus the u.s. dollar. and i'll throw it back at you and say this is exact the risk of the dow jones headline that caused the spike. >> that's correct. the key is reducing your stop loss level. selling at 123.50 with a stop at 125.50. with a target of 119. there is a risk that we see a short covering rally, but with two-year yields on the bund es at zero, i think now the euro is the best way to play the short european trade. >> so you think the slide just keeps ongoing. it's just a matter of maybe taking a day or two off. >> exactly.
>> yeah. what if you get something more concrete out of europe? >> i think there is a risk. last november we saw what happened when the s&p came in effect we saw spanish yields drop from 6% to 4%. but this third time around i think is going to take a lot more pushing. >> willie williams. let's look at the stocks being talked about most in the social stratosphere. seema mody is on that beat. >> scott, a lot of action on stocktwit today. risk-off rally seems to be pulling traders out of momentum stocks. one tweeter tweeting amazon app is big trouble for netflix. netflix down 80% over the past ten months. and just over the last month it's down 20%. we had b of a saying they expect another year of pain for the company cutting bottom line estimates. for investors who want in on
this stock, it's kind of like catching a falling knife. >> it is, pete, right? >> very, very dangerous. we've talked about netflix for a long time. difficult trade. as it's getting to 52-week lows, i'm not sure we're at the lows we're going to see. >> seema, thanks. we'll get to final trades when we come back. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus - i can custom build my own screens
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final trades. miss link, kick us off. >> i like the road strategy, franchise model and valuation pretty reasonable. >> the good doctor. >> i agree. i'm buying a lot of july 75 calls, judge. >> pete. >> well, i'm looking at intel because morgan stanley had a note out negative on intel. i actually go the other way. i'm very, very positive on the growth in the future. i like intel. >> guy. >> look at the reversal in lionsgate. basically 12 to 13. price is true. >> you still like groupon despite the fact they have the expiration. >> yeah. my timing was clearly hoib