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tv   Fast Money  CNBC  May 30, 2017 5:00pm-6:01pm EDT

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and the. >> mel b: conductor that you mentioned earlier is up 8%. >> it's a tremendously bino tech market. they seemed uninvestible. >> that biotech is fascinating. usually that goes along with tech. they go the opposite direction. >> retail is a secular, biotech has more pricing. >> more tomorrow. thank you very much. >> that does it for "closing bell." "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq markets overlooking new york city's time's square, i'm mellissa lee t. traders are pete najerian, tim seymour, dan nathan and guy adami. tonight on "fast" something they haven't done since the dark days of the financial crisis a. top technician says look out below. he'll explain why he's so bearish. plus get this, shake shacks are usually the best burger. now wall street's most hated stock. could that signal a buying opportunity?
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gartman's says bitcoin investors will face the one thing has them beefing. first, you start with the nasdaq near record highs, the fang stocks leading the pack higher. but caution, this is the no fang zone, like the no school zone, but even better, because outside of fang, there are some other, scare we say even more lucrative opportunities. other tech names are soaring. square is up a whopping 67%. tesla and ali baba up 40%, invidia is up 36%. is it time to start betting on some non-fang tech zone? no fang zone? >> a food job with all these great, great for a tuesday, mel, well done. yes, there are names you can invest in, in the no fang zone. i will give you a quick three. red hat has been a name they just signed, another strategic line with amazon web services a. big valuation. doesn't patz.
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they have a meat. who you know who else has a meat? adobe. they're reporting june 20th. the pattern has been, they report. stock sells off, buy the sell-off. it's worked for almost two.5 years. i like adobe. the last i think will be purchased too imthis year. xylinx and i think they set up for a name that could be purchased and the premium could be anywhere from 30 to think%. >> we talk about a lot of these names. i this i what we are trying to do is identify with there is gloet and valuations. sometimes you don't have it all the time. you think about the fang stock, i know it's no fang, i will intentionally. i think there is more growth. i would argue chinese tech outperformed u.s. tech. i would make an architect if you own ali baba and ten cent you have the two best tech plays in the world that give you the same bit as google and facebook all wrapped up into these two plays. you are getting 66% growth in
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ali baba. they have clouds that rivals google. they are internationally up 300%. they're doing this at a value eight 230 18th. this is essentially ebay and amazon of latin america. these are places to go. >> we want to go into the no fang zone tonight. there is this notion that tech is very crowded right now. banc of america and merrill lynch have a survey out saying the number of overweight technology is the highest on record sense they tracked this back in 2008 a. lot is being driven by a 71% overweight in fang specifically. so you go into the no fang zone, pete. >> right. >> because they theoretically. >> it's a track. >> just to add a few more of these names. >> yes. >> we talk all the ability tech names. all of a sudden you throw out a visa. look at the production out of that one. how about western digital? how about skyworks solution? any chip that's related to apple and apple is not a part of the fang, throw apple in there as
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well. throw in something like sales force. you look at these names, they have an incredible p.e.. that's a dangerous stock. it's trading near the 52-week shy. there are tradeable areas i think. >> are you talking ability a valuation? >> i'm not scared of it at all. i think they own a lot of the cloud space, microsoft is another one. we talk about it all the time. they took over, that stock has gone from virtually 30 to today over 70. so there are names out there that i think are investible. they don't get as much attention, because it's all about the fact. >> it doesn't mean they're not very quiet trades. we taked about it over the last couple weeks, we seen a lot of crowded trades come undone over the last six months or so or after that initial spike after the election. i want to say, we we heard names like adobe, red hat, oracle, all four companies report earnings this monthment all nature of these companies are up substantially between 18th and 50%. so when you think about what a crowded krad id i trade is, it means there is a lot of money
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flown to them. there is actually a lot of money moving into these things. if we do have disappointing earnings and/or guidance, given the valuation and the sentiment, i think it sets up as a dangerous situation. i'm not so certain. >> no fang zone is no touch zone? >> we spend a lot of time focused on these five names na make up 35% of the nasdaq 100. there is a lot of performance i think is going on in another concentrated group the next level done. >> so to me the money is stickier in the fang zone? >> this is really important. to me the stickier in all of these names that we talked about, they're in the forefront of secular technological shifts. that's what's going on here. i think money is very comfortable. being in them, they sea a long runway for this stuff. it doesn't mean they can't correct or they're expensive. >> it sounds like the fang stocks are safer than the none fang? >> i will put words in dan's mouth. you get to this place wherewithal some of the fang stocks, it's a self virtual or a
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self fulfilling prophecy in the global indices, if people alocate the triple qs or s&ps they will be essentially allocating to these stocks, invidia and tesla are very crowded and very expensive. i know guy likes them. you can again make an argument. but what dan is saying, just because here in the no fang zone doesn't mean there isn't danger out there. >> they set the record closing high on tesla as well. >> an all time high, we won't mention it. we aren't allowed. i didn't do it. invidia, i still, we talked about this for a while. it's a very buy there. either they will get it right or they're not. if they get it right in the whole you know this whole space this alternate reality ai stuff, artificial intelligence. >> on stock. >> are you making stuff up? >> you know what it is, if they do get it right, that stock doubles. it's a technology company. like it or not, it's a
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technology company. >> they trade ten times now. for the stock to double. >> that just one name. sky works trades it 21 times microsoft, it's 21 times. why is it they aren't investi e investible? >> let me ask you this, pete's no fang basket, which includes invidia, western digital, microsoft. you put a there are into that basket right now or a dollar into facebook? >> that's a good question. >> facebook is a little bit different. when you look at the fang name, facebook trades at a valuation that's easier for us to look a. amazon is tough. netflix, some of the names are a lot more difficult. >> fang basket versus your no frank basket. >> i think it can absolutely
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outperform. >> listen, we are kind of skirting a point here, work day, reported ten times sales. >> they have a ton of money $share. my question is, where the heck is it going to go? right? valuation can only be taken sofaer to justify a stock that's upright for results. when sales growth, it decelerated massively. >> it gets back into themeattic. a name like square. this is an umm poeering business. it gets them into their quote business. that's why it's working. >> all right. we will stay in the no fang zone. the financials, they just did something that has the chart master sounding the alarm. carter, what are you looking at? >> you know, it's sort of this huge give back as you put a trump trade that's now no longer. but something happened and it's happening right now. i don't want to start out this
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conversation with it this s&p 500 financials on top. we have relative performance to the other important sector in the market. the two biggest by weight and most important. we are flirting right at the financial crisis low. so i will draw this as best we can. you will see, we were here, banks two tech. we were here with u.s. debt downgrade in 2011. we were here again on the plunge low of the market. we're very close and we are now flirting with it once again in pre-election, we were here, too. banks very bad today. energy very bad today. all this data stuff is coming apart. it looks like there is more to go. let's move forward. if we were to draw some lines on some varies charts on some varies indices. i got the bank indents here the regional banks the s&p 500
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financials. what you will see, i'll draw it, actually. so you have the other seed here. what we have is the following. most aggregates in financials. look about like this. then they've stalled and got bettered and then they look a bit like that. now, if you were to look at where the moving average is. it's about like this, and what's happened if you were to draw a line is that we have something on a head and shoulders top down. it's happening in the kre and the s&p 500 financial sector and the bkx. so at risk here now is not only the very notions that are in uptrends, but they're going to at this point possibly go to hoe oh, here you go, the computer is cooperating. there is the lines drawn in. there's the stop. i think we go to break. we will come and break this trend line so that's untils. the next one is the bank index
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quickly. the head and shoulders top. i think you will get this break. same thing. let's go one more. we bought the kre. same one i was trying to draw with my hand. now we go forward, same prospects. so this is all pretty bad stuff. not only is it this break. but we are on the cusp of breaking these trend lines. it's a head and shoulders formation, a break in trend. this is an interesting setup here. this is all financials. we know after this initial bump from trump, yes, you have done this relative. so up absolute, down relative. it peaked on december 9th. here we are about to be middle of the year and finally i think you will like this. this is all 517 financial stocks in the russell 3,000. essentially every one in the market t. blue line has a basket. juxtaposed against the russell 2,000. the day before the election. let's fast forward.
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this is what happened, a huge surge and to where we are now. we've given the whole thing back. we are exactly undone and now growing with the financials. >> as a procedural matter. should we invite carter over? >> oh my goodness. done! >> that's when i do a theme song. >> a lot of break here. >> i was trying, no comburt? >> it was a work of art. >> we had something to do with that guy. >> are you freezing? >> i didn't freeze anything, don't come after me. it will change your whole intro. don't go there. >> all right. these guys over here are invested in financials, correct? are there any individual stocks that look like they could buck the overall trend that you drew? >> sewer, there are individual names, if you consider some of the kicking, black rock, these are stocks acting much different than the aggregate. well, chubb. certain insurance stocks, but
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the broad thrust of these inter-sensitive names, they are acting poorly. rates are stuck here. it's every possibility they will not do anything. >> you don't own any of those names? >> i tell you what, i owned blackstone for a long time. i got out of there six months ago it looks good the businesses are ready for exits. i come back on j.p. morgan. i know you make your living on the technical side. on the fundamental side, their ordered nailed it. unless you have a view. i'm not sure how much you have a macro in any of this. j.p. morgan's numbers were record numbers. >> altered. so the macrois a big part out of it. we are looking at rates and what they're operating in a low rate environment but the most important thing is not my view or yours. it's market reaction. so those earnings were very poor. if it was so good, why did it go
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up? there was free will. long head short to only managers. the general consensus was, i'm selling. >> they are probably long into those numbers. so i hear you. if i look at j.p. morgan on a year over basis, that stock is up, amazon is up 40. still that stock gapped up after those everyoneings. it's since going down. >> to carter. >> if people are long, it's down 11%. it gapped up. to me, that is the market reactio reaction. >> we know the market's reaction was some kind of euphoria and very, very misplaced on what was going on in washington. i think they got a boost on expectations and they have been oversold. that will raise rates in three weeks. the economy is better. look at ppi around the world.
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banks are set up. >> they have never been better. >> they don't start coming to life literally. what if the feds didn't do anything? i would say this. the burden of proof is on the gold. they were under performing two, three years. had this space mottic move or -- spasmottic move. >> i think the financials have something to prove in the business models. they look great. >> i would agree, when you trade under book value. >> the city looks altogether different. >> you like citi? >> oh, nice. >> it's interesting. >> where do you fall on there? >> you have to be true to your word. we talk about 83 dollars for j.p. morgan the first time it closed 83.90, that's something as to watch. goldman sax, despite everything we say on the bullish front. obviously that whole venezuela
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thing did not help. they have not been good, 215 is a critical level to hold as well. for those playing at home, tim and dan what do they call those things? >> the charts. >> we established 23 the xlf being a critical level. carter sort of showed that in the kre. >> let the chart be known. >> i think goldman has its own set of problems. nothing to do with charts or anything else or venezuela, you think about the political capital of those in walk. they're building to deregulate. i think a lot of this stuff is not going to happen. i think goldman was the biggest out performer. it will give a lot back. >> carter, coming up, shake shack is now one of the most hated stocks on wall street. should you be betting against the trend? what has them suddenly emboldened. energy stocks, oil falls below $50 bucks a barrel the top strategist tom lee says they flashed the ultimate five sign.
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>> welcome back too "fast money". traders love the money not the stock. >> that kicks a off our top trades, check out this chart courtesy of the spoke as the stock falls sort interest in the stock as it continues to climb. now about 9 million shares are nearly half the float. a short squeeze shall i say comes with this name. dan, what do you think? >> it's been the situation for years since the ipoment fall all intents and purposes, these companies had 60 stores when they came online. it ipoed. the growth is still there. to me, have you the tight shortages, holders were not sellers. the stock has not broken 30 in a couple years to me you have a situation where it's a no touch. if you believe in the growth story, i think this brand will get bought. to me you can buy it up.
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>> this some is down 50 percent over the past two years. do you press this short? >> i'm going to continue to sfreez e squeeze this thing? >> or left in this burger. in shake shack's case, when they opened they were the highest growth markets they could actually put on the map. to say that across their entire brand t. stock has done nothing in a year. it's flat year over year despite its pressures. if you look at valuation, it's still expensive. mcdonald's is competing on their turf, they've got the brand and i think they got the noble reach. >> that is where you go in this space. >> i agree, mcdonald's. i tell you what, i know they got near revenue growth. this is a company they have attacked the areas they need to. they've done that. they've had some success. not enough success. they aren't making the kind of money they need to be making at this point in time. because of that, i understand those that want to press the shorts at this point in time and really start to push on this thing. but you always have to be worried, just like at tesla,
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there are people who will not ever want to sell this stock. >> i'll seat you and raise them to the beginning of 2016. it topped out in the middle of 2015. it's 60 times forward earnings with sales growth going the wrong way danathon. i understand it's a touch. >> sometimes the shorts are right by the way. this might be one of those times. >> dan is not happy with me. >> 350 million in sales. you talk about. just so you know, mcdonald's had sales four years ago. they stuck it up 20 billion next year. are you not playing on shake shack's terms, they're causing them to do this stuff. to me. long shack, short mcdonald's. >> the wrong side of history. >> 36 against 150.
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may what, 29? >> you got up put costs going higher. this whole burger craze that's spawned all these like spin-off crunching burgers. the bottom line is that's a trend. >> i like gauntlet. red robin. >> you think if they were head quartered in the mid-west? either here on the east coast? >> east coast, west coast, be every they are willing to look through and buy into the notion? shack is in their pack yard? >> i think they shun the heck out of mcdonald's. >> they're eating cale. >> cale bowels. >> cale bowls. >> you want to make a bet? >> they feed it through a straw.
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>> still ahead, a man who said buy the brexit and a trump dip is back with a major call to buy the energy dip. tom lee, fund strategist, we'll see why he is so bullish. you are watching "fast money" on cnbc, first in business world wide. meantime, here what else is councilwomening up on "fast. >> it's evil, don't touch it. >> that's what dennis gartman is saying about bitcoin. he sees tears and chaos ahead for the digital currency. plus, pete is bringing the heat, sebing up the pitch for a stock that is up 500% since 2008. he says there's even more room to run. the name when "fast money" returns. that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? minimums. schwab has lowered the cost of investing again.
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>> welcome back to "fast money". here's what's coming up in the second half of the show, dennis gartman says there is something people are missing and it could lead to chaos and tears on wall street. so tell us what it is. plus, pete over here, bringing in the heat, getting ready to pitch the one stock surging. the one stock company sed says could charge higher, it's up in 2017. he will deliver the fast pitch. we start off with oil hovering below $50 bucks a barrel. jackie deangelis is at the cnbc commodity desk. >> what a difference a day makes for in the case of oil, a few days. last thursday, when opec said it would extend the production cuts for nine months, we saw a 6% dip in wti future. the market wanted more. prices have rebounded, while lower today, they're still under $50 a barrel.
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precisely where opec wants them, there has been an extending debate over whether they lost control or the cartel is irrelevant. some say that's wishful thinking, opec knows how to play its hands every single time. global crude inventories, a little over 3 billion barrels, which is about 300 million higher than the five-year average. they will cut into that supply by about 540 million. getting to that five-year average and even perhaps a little lower from there. others arguing that u.s. production is skyrocketing. it is up, only by a little more than 300 million since january. not exactly skyrocketing there. most analysts and traders think prices will stay around 50 plus or minus five bucks. bottom line, if that is true that is a win for opec and the market. >> thank you very much, jackie deangelis. pete najerian, stableation, all the market wants. >> you would think so. i tell you what, we have seen a lot of beta names coming in,
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getting hit in the options recently. it's interesting to see where people got attacked. we had leon cooperman coming in, many in energy. many are lower end names, it's not exxon, it's not chevron. it's in some of the trafficking names as well -- fracking names as well. >> i look at opec's decision last week, i think it's great. i think they will manage the markets well until 2018th. think we are well ranked now. >> over the ipo? >> i find myself in the middle. in the short run, people are overdoing moves in in ohio you had moves greater, 11 than 10, '. it will setting at 47 pin 50 in my view. plus, conconventional is greater than opec thinks. i think the efficiency is there. it's not i never knew this. i think the efficiencies are getting almost unbelievable. i think opec can't fight it at some point. >> a few weeks ago, we said
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avoid slumberge. those names are under pressure t. one that sticks out like a sore thumb besides exxon is anna darkco pe -- ana darko petroleum. if you want to trade something, i think ana darko petroleum for $50. risk reward is here. >> our next guest says there is something in the chart that suggests crude could be on a move. he called at this time brexit rally the trump rally and told investors to double down on bank stocks earlier this year. so he's been right. tom lee, you brought along two charts. why don't you explain what you are looking for from these charts. >> yeah, jackie set this up pretty well. i think the first chart is a way to measure oil supply and demand and balance. what we did was we marked when oil, futures markets went into backwardation. what it means is that the stock surprise above the two-year
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contra contract. generally it's seen when the market is down. oil has been in demand a year. so the four times this flip occurred in the last 20 years, you can see oil ended up with a 20, 70% rally. if we look at back orderation, it's setting up for big rally in crude. >> the second chart is telling us whether or not credit in equities, how they're coming out on this equation. generally as we all know, credit and equities together, they're kind of joined at the hip t. credit marks, investment grade has been the single best performing cdx sector this year. it is reflecting oil, it's reflected oil back into supply/demand balance. yet you can see on this chart the energy stock versus collapsed. this is the only sector out of 11 seeing a divergence like this. the last time we saw something like this was 2011 was bank cds
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outperformed equities. we know that was marking the bottom for the bank sector. >> i'm just curious, tom this year has been tremendously disappointing for any energy, most energy investors i should say. did these charts change recently? did they signal this buy sign recently or could you have seen this everyday in the charts three months ago? >> it's a great question. on both charts the futures market was in tango at the start of the year. meaning the spot was still a substantial discount to the 4 months. now we've flipped into back areaation. the second is at the start of the year, energy equities and credit were essentially on top of each other. so the divergence took place since the beginning of the year. >> are you surprised? the dollar is down 5 morris from the january highs? you could think that would give oil a bit more of and up here. so where is the dollar factor into this? >> dan, it should be a huge tail wind. the dollars, oil should be
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priced as a currency. the dollar weakens, it should go up. what we've we heard is that some of the credit funds that are a long energy bonds are short the equities. so it could explain why you are seeing the stocks and the bonds diverge. >> do you have a pick? >> yes, so these picks are generated by our quantityive technical team. we have ron simon, who you guys had on last week. he ha a momentum modem. these are top rated on a momentum and our kwaunt guys, these are the four names that percolated to the top. >> on a fundamental am basis, do you like these stocks? >> you know, i don't think it matters if we like them. i think that this market is treating it like one trade. and it's a one-decision trade at the moment which is nobody wants to own them at any cost. i think the minute we put them backwardation we have to own them at any cost. interesting, the bank, facebook,
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apple, which is not really, amazon and netflix are up will him the same percentage year-to-date. it's been. >> sow made an excellent call at the beginning of this year. are you making a bullish call on the worst performance sector in the s&p 500 right now. few had to put fresh money to work right now, would you rather put that money into fang or energy stock? >> now, i think it makes sense to barbell. i think fang could have a 2015 year, which means they could add another 40% in the second half. >> you are not playing by the rules of the game. >> let me go by the rules. okay. >> that's a massive prediction. in and of itself. would you say it again? >> well, they were up the second half. ful they are saying yes. i do think energy is a lot more contrarian. i'd rather stay with that, say i'll buy energy. >> it's a pretty straight forward gain. >> would you rather?
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>> it's not going to be led around. >> all right. you like any of those names? >> throw it at me. >> you want to play, would you rather? >> back to you, mel. >> you don't believe in buying the lager and figuring the charts? >> something is amiss with the energy space. >> that has not traded well since january. something is going on now. all these high levered names are getting bludgeoned, they don't know what happened. >> i agree, also what tom is saying. we went into this long meeting spec long, longer than that meeting in thanksgiving. you think about what people are in the energy market. they are under weight, under allocated. despite what i said, worry about u.s. conventional. that's a 2018th mid-year event. right now oil is trading in a range. it's giving you that trade every single time. we're near the bottom or we will get there. i like the mlp space.
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frankly, if you think the yield, a lot of these mlps are out performing their peers. i agree we guy are the names to me in the integrated spa is. >> let me get this clear, tom the chart you showed us signalled that when it flip itself, everything in energy is going up. >> that sounds like what you are saying. i don't want to put records in your mouth. >> in a piece friday, we showed, if you looked at all the industries, they all have some substantial noticeable rally of that flip. >> first nine months. >> as much as 100%. there could be a rally there. >> woe hope to see you. tom lee. not everybody agree there is acomeback. they are betting against another rally for oil. dan. >> xop, oil and gas, etf. here's the thing, it was hot today two times on call and average bond news. but listen, i don't think you want to be out on the other side
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whatsoever, it looked to me when the sop was trading above the trader sold out of the june, 3226 put spread. about a million dollars in premium. bought to open the puts. >> that may be rolling out bearish positioning or possibly ahead. let's look at this chart. eighth contrarian thing. this is the sop. it's down about 27% okay from its 52-week highs last year. importantly here, it just closed at a ten-month low. i want to go to one chart. let's go over to crude here. if you look at this, crude oil is still up about 25% from it's 52-week lows made at the same time xlp made that low. so it's trading very well. it's telling you something about how investors feel about the stocks in general. i want to go to one more chart here.
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this is the ten year of the xop. it's a bit of a train wreck here, obviously was in a massive down trend, it broke out, how it's failing here. you could see a push down lower. you might see this put activity, charting 32 bucks which is that breakdown level. >> for more office l "options action," check out the full show friday. still ahead, bitcoin surging more than 130%. it continues to captivate. dennis gartman says investors could be in for a huge disappointment. pete over here is sucking up to the plate. this one stock he says has more room to run. can he convince the other traders to get on board? you are watching "fast money" on cnbc, first in business worldwide. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform
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aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
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welcome back to "fast money". we got a news alert out of the uk. it sent the pound stumbling. >> reporter: a new uk poll showing the tweets are made at least 20 feet in the upcoming election, which essentially means that conservatives would
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lose the majority in the uk parliament. >> that raises a risk of a hung parliament. the pound is responding tumbling against the ussr as well as the euro. they hope this elect in the united kingdom would solidify teresa may's position and help her craft a stronger bridge e brexit deal this poll shows comparative losing the majority. >> that raises tensions or uncertainty of what is actually happening. >> thank you very much. we return to the ambassador. if teresa may doesn't have as strong a hand to negotiate because of this issue with parliament, what happens? >> well, two things, first of all, she called for elections because there has never been a more consolidated power base. if that's not the case, you can make the argument the conservatives or the other side the folks don't want to leave. you can make an argument for possibly in a brexit being a
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stickier issue for those that don't want to follow through on this. it's going to happen. i think this is noise. having said that, if you break 128. you go right down to 125. i would rather see the pound rallying. what does it mean for investors? that to me is a risk on currency. this is not great news. but i think this is largely noise. we we heard polls in the uk. brexit, nobody thought that was going to happen. there you go. >> let's move on, time for the fast pitch. they pitch a stock they think is worth a buy. when they're done, whether they are buying or selling the pimp. pete, he can't wait to get out there. do you have a credit you must buy right now? >> look at visa. this stock is trading virtually at a 52-week high. this is a really interesting company. we always talk about what makes us interested in companies? for me it starts with management. it's consistent. they have been strong, for years they continue to follow the exact same plan. what is that plan?
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shareholder friendly. they reduce the share count the last nine years by 21%. this is a company that's committed to what they're doing, which is buy back shares, it's not financial engineering. they're helping reduce it down. that's something i think everybody appreciates. they've got a great dividend yield. you know what, it's about growth as well. not just growth in europe. when you look at what this company is doing fundamentally, the revenue growth. the earnings growth, the dividend growth, all of which are 13 to 40%. that's growth you got to love. then you bought the the strength that you see in europe. it's still the united states based company. even though they have that global reach, 72% of the profits comes from the united states. we all know that credit cards, debit cards, thiepgs are moving away from cash. oh, by the way, speaking of cash. this is a cash machine $6 billion every single year. they're doing the right thing, buying back their shares, giving it back to the people that want
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to own this stock. i think it go es to 100, maybe 105 or 110. i bot this stock today. i was in a few weeks ago. i got out of it. i saw options come back in. i think the stock is going higher. >> i got a question. can i ask a question? i happen to love this name as well. i'll play devil's advocate. it's a great game. pete, at what point -- >> you knew that? >> yeah. >> wow. >> at what point does valuation concern you? i think it's currently traded 24 times forward earnings or thereabouts. >> it doesn't. because when you look, guy, at the growth the earnings growth the revenue growth, the growth across the board. forget the dividend. it's on absolutely incredible growing company. it grows into itself each and every move up. no, i'm not worried about that valuation right now. >> time to vote. >> tim, what say you? >> pizza baller. >> i'm a buyer. >> what is lgm. >> that says let's go mets, i
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believe in e-commerce growth. the valuation, they're delivering on growth. >> dan. >> i'm a seller. it's a bit nuance. i think he is 100% right. that stock is going to tip, probably sooner tan later. i think you want to buy paypal. >> e-commerce? >> i'm saying. these guys actually have expected better growth at a cheaper valuation. >> there we go. >> you guys familiar with kei$ha? >> yes, time does not permit me to do that. tim. wise guy. but i love visa, vi$a. >> what i to go, pete! >> all right. >> did pete pack enough heat so you can buy these? we want to hear what you have to
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say. hurry up. you have ten minutes left. also, bitcoin, the commodity, dennis gartman says the run could end in quote chaos and tears for investors. he will explain why when "fast money" returns.
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welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn.
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>> welcome back to "fast money". digital currency, bitcoin has been on a tear this year after going up a whopping 103 ', in january. he joins us to break it all down, dennis gartman, you had some stern warnings, it will end in chaos, tears, et cetera. what are bitcoin believers not seeing? >> well the whole precept owe bitcoin was it was supposed to be a new pricing mechanism where you could eventually go out to starbucks and buy it with bit cone, that you could buy a computer with bitcoin, you could buy an automobile or a house with bitcoin, and i understand that. maybe i'm in a sense to gin with. i do think the block chain mechanism behind it is eminently wise and will be a wonderful circumstance to prevail in the future.
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it will probably take stock exchanges and futures markets. everything will go into the block chain mechanism. to think that bitcoin's volatility so egregiously high. we had the eiffel tower move. where you have gone parabolic on the upside, makes the pricing methodology or the precept behind it absolutely nonsensic am. if you have a currency or a pricing mechanism that moves 50% and which bitcoin did last week in the course of 48 hours, how do you buy anything? how can the seller stand for what he sold it for? how can the buyer stand for what he or she bought it for in a mechanism of 50%. that's the problem bitcoin i think has. >> the more bitcoin is used in a mechanism in not just traded on an exchange for sport, the more stability it will find in a market m market. so it's a matter of time. just a week and a half ago, a japanese aerial announced that
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they were going to accept a coin with payment. so we are seeing more and more vendors accept bitcoin as payment. >> i hope that's what's happening. i hope there is stability that comes to bitcoin that you buy on an equilibrium price, whether it's a thousand dollars, 2,000, 6,000, 10,000, i don't care. what i'd like to see, however, a sense of stability and these sorts of market movements that we have seen where bitcoin has gone from pennys to what at pun u one point last week i bought the to 2700 for bitcoin. that's sort of nonsense. can we be two years from now when we settled prices down, probably at demonstrably lower levels than we are right enough to. when the millennials have been taken out of their precious trade and come to copper as it were, then there will be wisdom and rationale behind it.
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as i set, i think the lockchain makes sense. this volatility is senseless. >> what's the extrapolation to a risk asset that real people are trading in your words? what is it just based on this volatility, what do you do and what do you avoid? >> welling, i think you avoid trading bitcoin, unless are you a punter who likes to punt, for a speculator, it's been a wonderful mechanism. it's a joy to behold. if you have been wrong, there is snow way to get short of bitcoin at this point. it basically makes eight one-sided trade. this reminds me of soybeans in '74 and '74 and tulip bulb in the 20th century. it remind me of cotton. >> guy remembers that tulip fold mania very well. >> i was there for the tulip bulb mania. >> good to see you, dennis. thank you. much.
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>> thanks for having me on. >> all right. up next, we got the final trades. without touching our savings. yeah, our insurance won't do that. no. you can leave worry behind when liberty stands with you™. liberty mutual insurance. say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. ♪ ♪ welcome to holiday inn! ♪ ♪ thank you! ♪ ♪
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wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at
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you on a perfect car,rch then smash it into a tree. your insurance company raises your rates... maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. liberty mutual insurance. the results are in for pitch for visa, america has spoken and 55% of you voted yes. time for the final trade. pete. >> i'm going 65% visa. giddy up. >> 50% growth at 28 multiple.
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baba. >> carter xlf. >> what do you call dance something. >> micron. giddy up. >> my nimission is simple, to me you money. i'm here to level the playing field for all investors. there's alwayswork in summer and i promise to help you find it. mad money starts now. >> hey, i'm cramer, welcome to "mad money." people want to make friends, i'm just trying to make you some money. my job is not just to entertain but to educate and teach you. call me at 1-800-743-cnbc or tweet me@jimcramer. s&p down 1.2%. nasd


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