tv Fast Money CNBC November 25, 2015 5:00pm-6:01pm EST
disease into them. there are a lot of disease risk. >> we wish you luck with all of that going forward. for these guys an the rest were spared. gary, thank you for bringing them and making the trip for us today. gary cooper of cooper farms. here with some birds from the flock that were pardoned. kayla and mike, thank you as well. >> that does it for us. happy thanksgiving and thank you for gathering around here. we are done on "closing bell." it is time for "fast money." over tomill and the bang. >> name the turke kelly and bill. that is what i say. "fast money" starts right now. on this thanksgiving eve. i'm melissa lee. your traders are tim, david, karen and steve grasso. tonight on "fast," looking or sale. we have several hot stocks there that are super cheap and performing well. the names and whether you should get in. and the holiday travel season has begun and more americans are taking to the skies since 2007 but will increased security make traveling a nightmare. we'll hear from the ceo of spirit airlines. and later take a look at this.
it is the top of hollywood. that is designating health care rights, coming to light in explosive new court documents as the battle for the media empire heats up. we have a special report on this intriguing new stories and why shares of viacom rallied today. but first a handful of stocks. nike, home depot and lowe's, hitting a two-week high into the make or break time for the consumer. grasso, the xrt, 50 day moving average, i know you like levels, is that good news for retailers. >> it is. it is a problem because when you look at names that are isolated that are a handful doing well. we know the names, home depot and nike. amazon. the ultimate consumer discretionary name up 117% year-to-date. home depot is over bought on rsi, relative strength index. it works it off nicely. when it does work it off, it makes another new all-time high.
when you look at nike, does the same type of thing. so you see these people, investors of which i'm one, exit the trades an then rush right back into the same names. >> so what is working will keep working. karen you're in both of the haves and have-notes in retail. so how do you decide whether to stick with either camp. >> it all comes to fundamentals for us. it is a terrible lead into the holiday season. but the bar -- i went to -- i think it was a morgan stanley conference ten days ago. the sentiment in the retail space could not have been worse. which sets up nicely when you have the bar so low and you have so many retailers that are in good shape. their inventories are in good shape and the balance sheets are in extraordinarily good shape. so i'll stick with the names that i like. footlocker, trades with nike it. was down a ton. it has come back a ton. but i still like it here. i'll stick with it. >> and you're sticking with macy's. >> no.
not since -- when they announced the real estate sale and i was very concerned. however, i don't recall lundgren talking about his stock in more -- he's not usually a stock cheerleader, he is a business cheerleader. that is unusual how he's doing that. >> there is nowhere to hide in this space. i look at the mall-based stores, the inventory is plaguing these guys. there is nowhere to hide. nike and under armour, the sports an the athletic wear is selling. footlocker benefits from nike. they have a few arrangements to help the finish line gone, macy's, they will struggle. and all of the companies have inventory blow and there is nobody walking through the mall shopping. >> and i get why we talk about -- the retail is different than the apparel. but to me under armour has problems with designation. i think they have grown too fast and in a place where the valuation can't be supported.
i look at home improvement, home depot, lowe's and sherman williams, you have household formation growing. homes selling in 2015. 3.7 million available. you are at a place where they are not growing stores. lowe's, home depot, they are not building. they are getting more space out of the retail. the valuations will stay high because they could be more profitable than they've ever been. >> i'm glad you mentioned under armour, it is night versus day. and they have a dividend as well. >> nike is much, much better -- >> but under armour outperformed nike until the last stretch in retail. under armour was up and outperformed by 5%. in nike we had the headline about the split and now we see money rush back into nike. >> but look at the short interest in the xrt. the highest it has been all year
right now. so we saw a sector that was pressed down. completely oversold. it has rallied quite a bit over the last week or so. it is up 8% over the last week. is that a long-lived rally. i think you could get a more short squeeze to the upside. but the pricing discounting that we're seeing, i know there is 30% sales going on across the board, that has been priced in. that was priced in nine months ago. they predicted this and prepared for it. it is part of the marketing game. >> are you telling me you think the retailers look interesting because we know about promotions? >> absolutely not. we see the discounting and people get concerned -- >> you don't think that is priced in. >> i'm not talking about the stocks. i'm talking about this is the retailers mantra. they go out and discount. and they know they are going to discount. it is part of the whole marketing exercise. the fact that the inventory glut is there, that is a completely different story. the discount would happen with or without the inventory glut is my point. you would see the 30% --
>> so the discounting should be even worse between now because the inventories are actually higher. >> these things could go even lower. because ultimately you have a place here. >> right. that is my point. >> and if consumer slumping is in 2016, i think it will get worse for these guys. >> from one of the busiest shopping weekends to traveling weeks. facing long lines and waits in the wake of recent global turmoil. today the president had to say about this about the threat of terror amid the busy travel season during the holidays. take a listen. >> right now we know of no specific and credible intelligence indicating a plot on the homeland. so as americans travel this weekend to be with their loved ones, i want them to know that our counter-terrorism, intelligence, homeland security and law enforcement professionals at every level are working overtime. they are continually monitoring threats at home and abroad. the ceo of spirit airlines
joins us in a exclusive interview. ben, great to see you. >> great to see you, melissa and happy thanksgiving. >> the state department issued a vague travel warning for u.s. citizens travel ago broad and around -- traveling abroad and around the country. i wonder if you are seeing any impact this holiday season and if we should look for the impact in the first quarter as we talked to helen becker yesterday and she said the impact, if there is one, will be seen in the first quarter, not now. >> well, you know, our view is that everybody is a little bit skittish right now of course. but our view if this affects anything, it will affect transatlantic and pacific and long haul travel more. if you look at that warning, i should say, it was specifically about americans traveling abroad, not so much traveling within the united states. so we don't really expect to see much of a change in booking and we certainly haven't seen anything to date yet in terms of domestic travel which is where spirit is mostly focused of course and nearing international
flying. >> i hate to put it this way, could you see a benefit with americans more interesting in staying stateside as opposed to going abroad. >> that could be true. more people decide, let me go to orlando or las vegas instead of frankfort or tokyo. >> all right. i want to shift gears an talk about the stock. it is near a two-year low, beb, ben, so investors are wondering what is going on. analysts on the street point to a couple of things. southwest vastly expanded operations in dallas lovefield. american had an aggressive price match in dallas as well as chicago. what have been the impacts and do you think that is the reason your stock is underperforming versus the airline sector? >> well, i think there is a couple of reasons. you know, we have a little bit of ourselves to blame we had to cut back guidance in 2015 because of a rapidly changing revenue environment. we're still guiding to 21 to 23 -- 21.5 to 23 margins which is better than most of the industry but we had to pull that
back a little bit. i think investors, broadly, sh clearly do, but they don't understand the resiliency of the spirit model. even with fare wars going on and rapid expansion by some carriers, our margins continue to be very, very ripe. and customers just really like low fares. our airline is built for low fares so in an environment with lots of low fares, we do just fine in that environment. we had a great third quarter. we're looking forward to another 20% growth year next year that should be positive for the airline over all. so there is a lot of resiliency in the model and i think over time investors will see that in our numbers through as we go through the fourth quarter and into next year. >> when i hear resilience, i think of ancillary fees. are you going to jack up the fees you are known for. low fares, but you charge for a lot of different things. >> yeah, we charge for a lot of different things. but only those that are truly optional. and we see customers react to
that model better almost every day. because they realize they could use that model to save money by changing their behavior in some ways. we have raised our baggage fees a little bit at christmas. about $2. that compared to $30 and $40 price ticket increases on other airlines but over all it is good because you could decide to pack a little lighter. but we look at ancillary to keep the fares low but mostly to put the pricing power into the consumer hands so they only pay for what they value. >> ben, great to hear from you. thank you. >> thank you, melissa, and have a safe holiday. >> the ceo of spirit airlines. save is the sicker. this is down this year. >> poor ben. this is one of the best airlines in a worst performing stock. they are hurt by their own success. growing capacity. 30%. the september quarter was down in terms of passenger revenue per available miles, mel, and it would be even lower than that.
if you look at the airlines, look at where the bad news is already priced in. and the paris attacks have temporarily put a lot of the shares like delta in a place where they are kind of attractive at these levels. >> we talked about this last night, sky west, a small airline that doesn't deal with the international travel exposure, up 57% year-to-date. jet blue up 57% year-to-date. both charts are in tact. sky west chart looks amazing. neern one is overbought. jet blue fighting to get above the 50 day. a bit of a rough year for warren buffett. the bright spot for the oracle of omaha and whether you could get in. and some are leaving the street behind and heading to silicon valley start-ups. and could this put pressure on others. and just in time for the holidays, obesity drugs. we've talking the fight against obesity, much more "fast money" straight ahead. and can you explain why you recommend synthetic over cedar?
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my kids and their friends live in this community. every time i go to a customer's house, their children could be friends with my children so it's important to me. one of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. together, we're building a better california. a big move for deer which kicks off the top trades. revenue missed estimates an the company said equipment sales
will slow. now it was a bright spot for warren buffett, several of the top other big holings have had a rough 2015. american express down 22%. ibm down 15%. and coke the least problematic, down only 3%. so are any of these names worth a look. tim, kick it off with deer. >> this is better than expected in a difficult environment. sales are down 13% year-over-year. you are talking about management talking about working off inventories and the back-up on what is going on in the farm equipment. the construction equipment for commercial is still actually a reasonable area for these guys. we know what is going on in china. so the story doesn't turn around quickly and this is a place where this is not a major position for warren. if you look at overall. but talking about his holdings, this is not a place where he is getting hurt. down 13% year-to-date. >> which one of these would you say to sell at this point. >> i'm not a buffet-like investor.
>> so you would dump all of these. >> no. i look at deer, and that may be a name i would stick by. coke i would stick by over deer. it is similar. topline growth. where the revenue growth. it is really absent. and money is flowing to names that are growing or have the opportunity to grow. names that we've talked about in this show. >> so i'll go to the value investor. he is as well and has a longer time horizon as you do. do any of the name as peel to you. >> something like a coke is not -- it is hard to have that be under the value umbrella. i think deer, there is some leverage there, operational leverage there. that would be closer for me. >> next up, pan dora, another stock seeing big gains and this time it has something to do with adele. the new hit" 25" is available for streaming on pandora but not on spotify. on the "today" show, matt lauer asked her about keeping the album off the streaming sites. take a listen.
>> you're one of the few people on the planet who can say, i may not stream some songs. >> oh, yeah. >> you've chosen to put "hello" out there and not the other music. might you make a decision in the near future to stream some of that music. >> yeah, probably. i'm not just spicing things up. and hello is on there because it is out on the radio. so probably. >> and she has a great accent. >> she does. >> it sounds great. >> it is actually fake. >> the register of copyrights helping to ease investor concerns about pandora paying higher webcast gains. that is driving here. karen. >> wall street one of the names i find a fantastic product. love it aas a stock. not so much. if the crb does rule in their favor. for me the music business has changed so much that the biggest beneficiary is live nation.
because to make money as an artist, you have to be on tour. and at dell tour will be -- the adele tour will be enormous and a platform for people to get hooked into live nation. >> i agree. i think the story for pandora has made. they bought a ticket company and made technology purchase. they bought a company -- >> radio. >> right. like spotify. so it goes to show you, the core business, they look at it and say it is not doing as well as they are interpreting it. i'm not a buyer here. i think that stock is a sell. >> i think that the core business is healthy. they are focusing on music and partners. i think they have proven they've been able to with stand the competiti competition. i think the stock is cheap. >> why are they making acquisitions. they don't know anything about the ticket business. why get involved. stay with your core business. >> because it is growing. >> it is an ancillary business they should be involved in and it has been proven for live nation. >> it is not about that though. the bottom line is you are on
pandora and you see a band and you want to buy a ticket, why not. they have an audience that is -- steve is working out in the gym, pumping some iron -- to cool and the gang. >> cool and the gang. he wants to buy tickets. >> here is the problem. when you look at pandora, for years now it feels like we're talking about apple killing them. and every time that happens -- it hasn't happened before. but if you look at chart, down 23% year-to-date, starting to get the bounce back, felt like it was oversold. so any pop in the stock has to be sold. i think it is over. >> all right. still ahead, president obama might have already pardoned the turkey today but our traders are doing some pardoning of their own. four turkey stocks that deserve a pass in your portfolio. i'm melissa lee and you're watching "fast money" on cnbc, firz in business worldwide. this is what else is coming up on "fast."
welcome back to "fast money." three goldman sachs bankers jumping ship to uber as the shift from wall street to sill von valley continues. josh lipton has the details on this growing trend. josh. >> the shift is easy to understand, especially when you join a start-up. that job could mean more flexible hours, stock options an potentially that big ipo pay day. uber specifically has raised nearly $8 million. it is now valued at $51 billion, according to cb insights. and that does make uber the most valuable vc-backed private company on the planet. in just five short years it has more than 1 million active drivers serving over 300 cities. reuters reports the company could generate net revenue of $2 billion this year. the three pankers are -- bankers are the latest to make the jump from wall street to tech. anthony noddo, the former
goldman executive, who became the twitter cfo. and ruth pull rad taking a similar position at google pair and alphabet. no surprise, if you are a young mba, tech looks attractive right now. and harvard business school, 20% of graduating students from the class of 2015 plan to take a job in tech. and that is up from just 11% in 2011. meanwhile, just 16% plan to work in investment banking and sales and trading. and that is down from 25% since 2011. of course, these young mba-ers are coming here to silicon valley at a time where there is question about the climate and the sustainability. so maybe then enthusiasm could be a contrary indicator so stay tuned. melissa, back to you. >> josh, i think that is a very good point there. by the way, is there any sense that these guys -- the goldman bankers are giving up salary and taking the options with the hope
of the big pay day. i'm trying to figure out if this is a growing trend. if silicon valley is going to increase pay and pressure expenses in order to get these people. >> i did not see that report, melissa. but certainly you could think of all kinds of incentives they could put out there. $8 billion, $51 billion valuation. and uber, i just talked to the head of operations. we talked about the potential of public debut. he didn't give a timeline. said he thought public investors would be happy with the results they see. no timeline. but if you are a vc, he want to see a cash return on your investment at some point, melissa, josh, thank you. josh lipton in san francisco. >> i think this is getting kind of to a place where it is getting absurd. you have cyclical and a pendulum to swing. and wall street was a place to run from. after 2008, the witch hunt. vc guys would look ate firm with a goldman two-year program and
had a foundation before going on and spending times at these places as a total plus. you can't tell me the experience of working for a goldman isn't very, very good. >> i was a warden two weeks ago and they spent more people to google than goldman. >> i totally understand. plus remember, they are millennials who have a different -- >> they are lazy. >> i don't think they are lazy. think they want a different type -- >> they know dorsey and zuckerburg and bezos. >> it is during the financial crisis. they saw banks implode. it is the mentality. >> if you look at the financial companies right now. there is no guys that they know. it is no guys they think is a stud. diamond is known to be a stud in the pharma industry. >> you have two women on this desk who thinks jamie diamond is a hume stud. >> i don't think, i know. >> the ceo of cowan, he is a
stud. >> that was a plug for -- >> it was a plug for you. >> the experience aspect of it, that is what is being lost with the millennials. they are missing the equation, the experience having them experience, spending five years working your tail off at goldman sachs gives you that flexibility and the ability to go out there and work for some of the stock ops. and score that massive payday. >> but the experience of a failed start-up is good too: seriously. >> you don't hear about that. >> a lot of experience out there. coming up, it is the one stock down 80% year-to-date but one of the traders said don't give up yet. the stock is worth another look. we'll tell you what that is. and what is cheap and could bring you big profits. several stocks trading at a discount to the market. we have the napes rig-- the nam after this. it's easy to buy insurance and forget about it.
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stocks just about flat for the week but managed to close higher on friday, that the fourth year in a row of green thanksgiving week. the second half of "fast money." some stocks have traded like turkeys but traders have stocks they think deserve a pardon. sex jealousy and the fate of a entertainment empire part of explosive new media scient saying that someone is a living ghost. it is the talk of hollywood and wall street. we have a special report. but as retailers roll out big discounts, we thought it fitting to take a look at stocks also on sale. seema mody is at headquarters with the details. >> that is right. we did bargain hunting of our own and took a look at stocks pe ratios relative to the sector they trade in. and here is what we came up. valero, sporting a ratio of 6.9. the energy trades at 19 times earnings.
it is the second best performer in the sector year-to-date. up 48%. turning to consumer discretionary, the best performing group this year and we found a company we rarely talk about, goodyear tire. the stock is trading at just above 3 times earnings. that is a huge discount relative to the sector which trades at 21 times. shares of goodyear are up more than 20% in thyear. and what about the cheapest company in technology. well a name in the news today, hp inc. the stom tumbling on earnings with a pe ratio of just above five. but cheap is in the eye of the beholder. the stock is down more than 30% this year. so a low earnings multiple doesn't always mean a stock is cheap. melissa. >> seema mody, thanks so much. are any of these names worth buying? what is the best discount buy here? >> valero discount is all relative to a sector that has been cranking. and it is a bit of a turn-around story. they have a lot of cash, free cash flow.
and margin flow is turning around an the -- and i'll take that all day and the refiners look good. phq, why would you want to go there and printing is in trouble now. not so much. >> i think hp inc. has to prove itself. it was oversold and then you have the overbought, it goes back and forth. so i think it has -- the smoke has to clear on this one. vale valero, they skew the p.e. so it still looks okay. if you believe that crude is going to stay right here. >> so let's go to each of your discount plays. stocks that are doing well and trading at a discount to its sector. tim. >> it is green mountain. in a world where -- if it was a year ago, it was trading at $155 and traded down to $40. and with had numbers much better. but again now trading at a discount in consumer discretionary and there are reasons for it. the coke brand is a disappointment, and the brew recalls and the pods are selling
less. it is at a price where this is trading at 20% cheap to the peer group which is mazing because this is a short peer. the stock is up 35% in the last five sessions. but it tells you how bad things were on sentiment and i think it is over done. >> and yours is interesting because grasso was just talking about how much he hates it. >> i hate buying stocks trading at a massive discount to the peer group. there is something obviously wrong in names like that. but hpq, or hp, the sentiment is so bad but at a 4% dividend yield. the stock position today puts it in a position of hopefully turning the corn fresh a price perspective given the fact that sentiment is so incredibly negative. so i say collect the 4% dividend yield and possibly have a trade to the upside just based on that alone. >> karen? >> a name we've talked about a bunch of times, korss. difficult retail environment and yet they beat.
it is a good com sector of ralph, coach, and kate. the average sector 17, and kors 10. the average ebidta, 8.2, kors under 6. it is ridiculous. that's it. >> grasso. >> i hate buying stocks that are cheap because i think they are cheap for a reason. but if i have to go with one, i'll go with apple. it trades at 12 times. it depends on who you compare it to. but no matter who you compare it to, it is always cheaper than peers. i would say apple. but it is a consensus thing but you never know. weight loss drug companies are dropping serious weight ahead of thanksgiving, are patients throwing in the towel or losing weight or is something else at play. it is time for much-needed stock therapy. meg, terrell, it is good to see you. what is going on. >> we were thinking of thanksgiving stock therapies but we are all eating tomorrow so why not look at weight loss stocks.
these are companies that the stocks are smaller than we normally might talk about because they have fallen in the last year. oebs is a big problem in the united states. the cdc said 35% of americans are obese and it links to heart disease and diabetes and a huge cost to the economy as well. and a huge problem. so expectations was very high. in the billions before they made it to market. they are made by arena, arexo jen and ven us. and if you call them the three obesity drug. and another one from novofordis. and the drugs essentially sell about $50 million a year each, according to rbc. this is a branded market of just about $150 million. the expectations of course were for billions and billions. that's because doctors don't think of prescription drugs. the line is exercise and eat
right. it is not prescribing drugs. and we have had problems in the past and so the doctors have been bush -- burned there. and there is concerns. and i was just talking about this and there is no real catalyst on the stocks. so they are languishing. and folks wonder when this market will turn around. and we are talking about zaf-gen. on the threshold of what we talk about. they have a big catalyst coming up in q1. they had a safety issue with their drug which they are testing not just in severe obesity but in a rare disease with uncontrollable eating. it is called prater willie syndrome. the stock has plummeted 50% in the last three months. but they have a study coming out in q1 which analysts say is a big moment. they are sorting through the data. we don't know if the safety issue is in the drug or. no and back to the obesity stocks, if you look at those
three companies versus weight watchers, that really illuminates the difference of the way we think about treating obesity through the united states. it is through diet and exercise and not drugs. if you compare the market caps. >> thank you, meg carol. the biotech reporter. and there is the difference of oprah with weight watchers. and biotech analysts are smart people and they got it wrong in this drug. that is interesting. they didn't anticipate the resistance to prescriptions. >> it is an issuech and reimbursement is an issue. it is much easier to go to the store and buy an over-the-counter product. or react through a weight watchers program and figure out a way to get healthy from that perspective. but efficacy, reimbursement, complete issue for these. they don't work as well as people anticipated so they no one is going to buy them or prescribe them. >> look at the weight watchers chart. >> it is up 60% in the last weeks. >> thank you, oprah.
>> cost management, plus oprah. >> still ahead, could shares of netflix finally be running out of steam. traders are betting the good times are behind the streaming giant. and take a look at this. this is the signature of sumner redstone on a dom that gives viacom chairman the right to make decisions about his health. that is one of many explosive revelations released in new court documents today as the battle for the media empire heats up. the incredible details ahead in a special "fast money" report. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.
welcome back to "fast money." viacom chairman sumner redstone's health has long been rumored to be in decline. now he is called a living government by his former lover in explosive court documents that emerged today. as battle for control of cbs and viacom heats up. julia has the details from l.a. >> sumner's ex girl friend her zer has filed a lawsuit alleging the 92-year-old is mentally impaired and unable to make decisions. demanding that he receive a
mental exam to determine whether he could make decisions and challenging the decision to kick her out from his home last month. now redstone controls both cbs and viacom. and is the executive chairman of the board at both companies. her zer describes red stone as a living ghost, saying that, quote, he cannot converse except for grief grunted responses to direct questions and even then he is nearly impossible to understand. she also said he is, quote, spontaneous crying spells for no discernible reason. redstone responding calling it a meritless action and riddled with lies and a despicable invasion of his privacy and saying in a 120 page response that last week she entered into a written agreement with mr. redstone himself, revealing he appointed the ceo to act in the event of hissin capacity. demand declaring that the two are in regular touch. saying that he found resstone, quote, engaged and atentive.
but redstone's signature, it is raising questions as it is circulated on twitter. still, of course, this all raises questions about redstone's control over viacom and cbs which will be taken over bia group of trustees in the event that redstone is unable to make decisions or when he passes away. melissa, back over to you. >> thanks, julia boorstin. or more of what this could mean, let's bring in david faber who knows the media spacer than anyone out there. he joins us on the "fast" line. if you look at viacom after the court documents, they finished close to the highs of the session. the stock was bid higher on the release of the documents. could you walk us through what investors are thinking. >> they are thinking that eventually mr. redstone is going to die. i should add, sumner, i've known for many years and i hope it is not true, that he's declined to this extent. but regardless, you know people
on wall street are simply speculating as to what will happen to the companies when he does pass away. he is 92 or perhaps even older than that, actually. and yet, that remains something that is unclear. because as julia said, there is a trust, and irrevocable trust of which the beneficiaries are the youngest of his, great grandkids i think. and the trustees of the trust are not in a position where they are forced in some way to force the sell of the con strolling stake in viacom and cbs owned by national amusement and it does not appear based on reporting for some time there is a tax bill or something along those lines that forces some sort of a sale. that said, it still remains unclear exactly what the dynamic is going to be amongst the trustees. which includes sherry and her son tyler. and what their decisions may be. but that is what you are seeing,
simply speculation. when he does pass away, however many years that may be in the future, because it is difficult to tell how much his health has declin decline, that there will be a sale. >> the controlling interest, is why the stock is trading at a discount. it has its own problems. deutsche bank downgrading the stock citing slower advertise. but is there a natural discount because of the structure? >> i think viacom has suffered largely because of self-inflicted wounds, having nothing to do with the ownership structure, as you well know. it is a difficult year for the company. in terms of advertise market in terms of programming and ratings and the leadership and demon, and i speak to investors about it. and what does come to the fore is the idea they are in a paralysis, if you will. that there is no -- nothing that will change until sumner is no longer with us.
one way or the other. and that includes management. not necessarily again to say there is going to be any sort of a for sale. because that does not appear to be the case. but nonetheless, perhaps some people would like to see some changes at the company, that simply won't take place until sumner is no longer on the scene. >> david, it is karen. do you have any idea for viacom particularly what the board is thinking? >> it is a great question. and you know, and a lot of us are trying to understand fully what they are thinking. and that goes back i think to the difficulty the company has had this year. it leaves questions in terms of the leadership and some decisions that have been made over the last few years and whether there is a -- what the board dynamic is right now, in terms of would you want a change in leadership. i can't say that specifically i have a great sense of that. other than i hear the rumors that many other people hear. and sherry obviously is an important component of the board
as well. but it is certainly something people are keeping a close eye on. again, more to the idea that management might, at the very top perhaps change, if there was to be a board decision there. but it is hard to imagine with sumner still -- still the chairman of the company and demand having his complete support. >> do you think that we'll get anything from viacom. i know it is the day before thanksgiving, but in the coming days, about mr. redstone's health? >> you know, i mean you know we've all read the good stories written well and done on his health and declining health. there is a debate. i haven't spoken to sumner frank frankly in a couple of years. i used to see him regularly and interview him of course. so i don't have a first-hand account of what his health is really like. i could rely on accounts i get from management at viacom. they say one thing, melissa. and then you hear others such as
in this court document today who say completely different thing. where the truth lies i'm afraid is a difficult thing to know specifically unless you are in the vicinity of mr. redstone himself. >> david, thanks for phoning in. appreciate it. happy thanksgiving to you. >> thanks, melissa. >> david faber on the "fast" line tonight. let's trade this. people are trading this like it is going to be a good event. a good event for investors. >> it is could be -- it could be. the stock is down 3%. cbs is down. if you look at media, i'm at disney. the runup going into the star wars release. as long as it holds the 116 level, i stay in disney. >> what is your take on this, karen? >> i hope that paramount, which is viacom property, owns the rights to this story. because this is just crazy. that signature is ridiculous. i do think that the macro events of cable and court cutting is -- cou
cord cutting is weighing on the stock right now. >> there is no question this man could be entering a stage where he is not making great decisions. i don't know that either. but to judge that on the signature is absurd. he signs all kinds of stuff. i don't -- i think that is the wrong reason to go hysterical on this one. and as you look at the company, the biggestish ooze are issues -- issues for the sector. and cbs which went from 38 to 52 in the last couple of days, the third quarter numbers weren't that bad so you are at a place where people don't know what the valuations were in the sector any more. that is the issue. >> there is the signature. there it is. >> and the fundamentals are terrible. you have a ad shift going to digital and mobile. no reason to own these names. setting off a flurry of options for today. >> the december 54 calls are what they were buying. only looking out a short distance, expecting more news.
spending about 80 cents for those. >> thanks for that, mike. coming up, one turkey got a pardon. we know that turkey. it is a famous one. mike is not a turkey. not at all. one turkey got a pardon today from the president. and after the break, the traders got four stocks they think deserve a pardon as well. we have those names up next. you're watching "fast money" on cnbc, first in business worldwide.
don't interrupt. you are hereby pardons. >> that was president obama today upholding the tradition of pardoning a turkey ahead of thanksgiving. so in the spirit of the season of kindness, we waned to give the traders a chance with a stock that had a rough run but deserves a pass. so let's start off with you, titi tim. >> i think it is twitter. they are in the stages of a proven platform. monetization was up 57%. i'm being knocked down by turkeys. and that is fair. and granted it was a disappointment in how they monetize and they are not
facebook. but they are growing faster than anybody. mau's is not what you should see here. >> and seaberg has a shocking one. >> it is sun edison. the stock has been annihilated. from $33 down to $3.5 today. but the problem is management completely discredited by the fact they were confusing inve investors and arrogant as the stock collapsed. so i look at it and say we saw what happened yesterday when they announced the sales of assets. there is a massive short here. >> and do they need the asset salement they have 150 up front and 80 later. and they have to give the 151 back. >> the changes at terp, this is something that basically rating the company that they spun out. they took $160 million from goldman on a one-year at a time they are trying to show their cash position. >> i took it easy on twitter.
>> we have to get to the other ones. >> i'm giving management a pass from the standpoint of this company actually could be bought up aggressively on any sense of positive news. they start selling assets, it is going to turn on a dime and go up fiercely. >> what is yours? >> mine is go-pro. >> fitbit. >> oh, fitbit. sorry, we have to go. up next, traders tell you what they are watching for friday right after the break. stay tuned. just wait for a moment. i watch for the perfect moment. the one nobody else sees. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus, powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. five years ago, on any given night, you know, almost 75,000 veterans experienced homelessness.
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time now for final trade. let's go around the horn. tim. >> happy thanksgiving. buying the weakness in brazil down 5%, i think it is worth buying. >> seaberg. >> a lot of speculation about lululemon, whether they will be bought by nike or under armour. somebody will. because they are completely mismanaging this company. i'm long. >> karen? >> yes. so we talked about it, i don't know if it was the turkey or the other thing. but kors, undervalued, i like it here. >> electronic arts. it got beat up because the demand for star wars was lackluster. i think going into the movie release you'll see the demand pick up.
electronic arts, ea. >> thank you for sharing your thanksgiving eve with us. we'll see you back here at 5:00 on monday. for more "fast money," everybody have a safe and happy thanksgiving. "mad money" 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. others want to make friends i'm trying to make money. call me at 1-800-74 3-cnbc or tweet me. in the face of declines, rallies and even just plain jane garden vare variety days in the market we just always guard against our own human emotions. but you often get the