Skip to main content

tv   Fast Money  CNBC  May 17, 2018 5:00pm-6:00pm EDT

5:00 pm
that carl icahn took a 9% share. applied materials also down nearly 5% on weak guidance michael? >> ten seconds i don't want to give my 2 cents. >> we'll see plenty of you tomorrow thank you, everybody, for tuning in to the "closing bell. "fast money" will pick it up for us right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," bitcoin week rolls on friend of "fast money" and the crypto trader ran neu ner, he made a call six weeks ago. he's back with a crazy call that will shock the crypto universe plus, the cbs civil war is on. the board meeting happening up the street on new york city. you are looking at a live shot we'll get to the ground to get the latest first, we start out with, wait, what's that?
5:01 pm
it's a bird, it's a plane, no, it's $80 oil. >> oh, my god. >> and an interpretation of superman, loose interpretation faster than a speeding bullet, brent crude rallying now up more than 18% taking energy stocks along for the ride as oil stocks climb signaling a broader, stronger market in other words, is $80 oil a sfrend friend or a foe. >> guy, wheredid you get the halloween costume? >> we'll address the friend or foe. >> i thought you meant your shirt tie. >> no, he meant that did somebody draw that are we on some budget? >> we can't use superman it would be trademark infringement. >> our viewers have imagination. >> the blond hair is disturbing. >> i don't picture blonds as super heroes personally it's just me i think it's a friend. >> a friend? >> if it was a foe i would think
5:02 pm
these retailers that have been trading well would be trading poorly the airlines haven't gotten smacked. at a certain point i think it becomes a detriment. the current levels we find ourselves at, no energy stocks have been doing well tim has been talking about it for the better part of 15 months in the aggregate, higher oil means economies are doing better which should be good for earnings and the markets. >> let's stop and think about why oil is at $80 but also talk about the two sides of that super hero the evil oil guy hates too much supply, right? the nice oil guy likes demand. that's for the price of oil. what dictates the price of oil we had evil oil guy, not guy but an evil oil -- >> person. >> -- person for the better part of two years in fact, what's interesting is u.s. exports hit record highs over the last couple of days if you look at where we are our shale and our oil and gas industries are booming again yet the difference is oil companies are running better and the
5:03 pm
shares that are outperforming are the ones that are getting capital back and not pursuing growth at all costs. >> it's a tax on the consumer if the consumer feels it. if the consumer is in a good spot, the consumer is employed the consumer is seeing some wage increases, maybe it's not so bad. >> maybe it's not so bad i think a spike in anything whether it's rates, oil, whatever it is, that's really bad. it's been a quick move but not a huge spike one thing though worth noting, brent is far below in the spread between brent and wti has gotten bigger as we've had the glut of brent. so maybe that's a little bit of a dammening effect to guy's point, if the ee kochb my c -- economy is moving along, there's no surprise the economy is moving up and we have unrest in the middle east but i feel like the economy is humming along. i would hate to see a big spike in oil that would be problematic. of all of the things i own, i'm most worried about the airlines.
5:04 pm
it's a really, big, important cost to them i'd hate to see it get out of control. >> are we not worried about the impact of corporate profits? we've been hearing companies talk about rising costs particularly when it comes to transportation costs. >> right right. >> trucking shortages are impacted energy prices are impacting them at what point do we say, you know what, we just booked 26, 24% profit growth year on year in the s&p 500 so far throughout earnings season? >> right. >> we're setting up for very difficult comparisons and here we are in an environment where energy prices and other things are going higher. >> i started off the show accurately what he said as long as it doesn't stay here for that long. i think along with the fed when the fed looks at oil prices and says it could be right now it's not. i think it helps on jobs
5:05 pm
now when we're exporting energy it helps that we are energy independent at this point. shale, timmy touched on it i don't know if you could buy the exxon mobils you bias we talked about on the desk, the e&p and the refined is going up as much as the input. >> quickly $70 crude oil is not the same today as it was ten years ago. companies are far more efficient. airplanes run more efficiently companies run their businesses better although it seems like a tremendous head wind, i don't think it necessarily is. we'll get into the ramifications of the fed and all of that stuff which is very interesting. just on the margins i don't think this is going to derail the rally. >> here are the numbers. oil is up 11% since the dollar went from its lows to being up 5% that would have been a death nell or a major, major win when i look at the oil or energy sector which we've said you don't need to own it, during the bad days you didn't have to own
5:06 pm
it even for fear of a spike, you weren't missing much on a price to book basis, relative basis to s&p where it historically trades it's massively cheap. minus 1.2 times relative to its meeting to the s&p what does all of that mean it means the sector is still very, very cheap if you've got analysts on board, stable prices, guy brings up the obx. think about how stable volatility has been in the oil sector to overall market. >> when you say cheap, the price of oil and the dollar moving in the same direction, do you get nervous at a certain point with the price of oil per barrel, when people go to the pump at what price do you get nervous? >> i don't think the consumer was getting a major tailwind we weren't talking about the windfall for consumers why are we worried about it now? we're not at 140 it's a sticking point.
5:07 pm
look at commodities. 18-month high on the crb inflation trade is well. that's ag. ag is lacking. this is a trade that's working across the complex. >> we seem to be saying that this is a sign of a stronger economy economic growth can handle a rise in crude oil prices and some other costs in the economy, does that make you bullish of the stock market? >> it held a couple of weeks, talked about it on the thursday before the jobs report the day the s&p traded down, $25.80 it's taken a shot three times the level. hasn't been able to get over it. we're above 2700 so i do think the stock market defended those lows well. now we probably test, retest to 2800 >> i don't think we can handle higher dollar, higher oil, higher interest rates. and a higher market. i don't think all of those things can play nicely in the sand box. >> so what gives >> for much longer i would think that the dollar has to give. i think that the dollar and
5:08 pm
actually crude gives as well i think that crude is a setup trade here where i think crude does go lower. >> i think if you listen to fund managers and if you read a lot of people do great work on it, the guy who's about to talk, merrill lynch does great work, if you look at equity investors, those guys, it's probably 3 1/2. i don't think $85 oil is a big deal i go back to the dollar. the dixie at 94 is where it was in december. were we talking about a strong dollar in december >> no. >>. >> that's why the iwms are outperforming. you need the large cap industries, you need corporations to move the s&p higher you can't do it with the iwms, that's it. for more on rising oil and what it means for inflation, let's bring in chris harvey, wells fargo security, head of equity strategy. chris, to get you back. >> the guy. >> the afore mentioned expert. does something have to give as grasso said?
5:09 pm
>> i don't know if something has to give. i agree with the thought process. if you look at oil, oil is usually a proxy of global growth years ago we used to talk about it, being the canary in the coal mine '03, '04, '05, '06 '14, '15, '16, when it was trading off, don't be afraid of the curve and an inverted curve. 3% on the ten year i used to get that in my checking account. we're cognizant of it, we're not fearful of it. >> at what point do bonds become alternative of stocks? what percent >> the way i think about it. the way i think investors should think about it, it kind of puts a top on things. it's not so much it is going to draw some market share but it's not a death nell it's not -- it's not going to kill off the stock market. it's just going to keep the levels somewhat muted from there. >> it's going to keep the levels on the stock market muted?
5:10 pm
>> don't think about big double digit returns. think about single digit returns from here. >> at what percent does that happen in your view? >> so it's not so much at what percent, it's how you get there. one of the things i fear, one of the things i worry about, do inflation expectations move first or are we moving up because growth is so much better than inflation expectations? as long as growth is starting to fill in, rates, as long as they stay managed, equities can go higher if you see a dislocation or a shock, then i start to worry about the equity market. >> when does this yield curve worry you or is it worrying you now? >> it's not worrying me now. typically what you see in a fed tightening cycle is a flattening yield cycle. if the curve goes inverted, then we start to worry but not until that point in time. >> how about the multiple compression for the s&p. we hear we trade at 21 times last year, earnings are better we don't deserve the same multiple than we did two years ago. >> we don't and we have seen
5:11 pm
multiple contractions. you see the curve flatten, multiple compression and code selloff. >> on the heels of this, you're not concerned about the second quarter, third quarter earnings being strong relative to the first quarter earnings >> right so usually on a fed tightening cycle you see a peeking of growth, ism and it starts to come down. it's staying healthy the fed is raising rates because things are not good and not bad. later if we're right, we want to derisk the portfolio right now we're worried about the up side, not the down side i agree with the earlier thoughts you tested that low several times. now you're starting to get to a different range. i think equities can work higher. >> this environment, what sector would you be in? >> we're kind of boring with regards to that. if you like the market, we like technology, we like banks and we feel like industrials.
5:12 pm
one of the things we've been looking at, haven't been able to get our hands around is energy. >> why >> it has all the hallmarks of chris harvey it was very -- >> very contrarian we love that, to be clear. >> contrarian, beat up the sentiment was terrible as tim said, the valuation was great, but we couldn't make the risk/reward work we stayed neutral. we got caught looking. the way we thought about it, on the industrial side we had exposure to energy that's the way we wanted to play our client said we don't care, it's 1%, 3%, 5%. we couldn't make it work. >> melissa, thanks chris harvey wells fargo securities would you agree with the market view >> sure, but i do -- i do -- >> you're being so polite? it's because he's sitting here still? >> yeah, and i want to pull him back in. i do believe something has to give i don't think this all can be nirvana at this point with everything moving in one direction. there has to be some
5:13 pm
correlation, some inverse correlations that happen again and we are off on the s&p. it's not going to happen in a vacuum the dollar is up if you believe in technology, you have to believe that maybe that dollar strength is probably going to weaken just a bit more to get the iwms, their outperformance. >> i think steve pointed out, we are off on the s&p something has given already. for me, my portfolio is very interest rate sensitive to the up side so heavy in banks as the leading guest suggested and heavy in technology, which has great balance sheets so no debt. those are places i want to be to ride out what i think is going to be an interest rate -- >> you know what i found to be fascinating about this chris harvey, brilliant, brilliant, really is he's more clark kent than our dopey blontd headed superman at the top of the show. you see him with the glasses and dark hair. >> doping. >> what are you chewing? >> it's tv show and you're
5:14 pm
chewing a tootsie roll. >> it's a gummy bear >> blond haired -- what is on his shirt, bo or -- >> 80. $80 oil, $80 brent, get it >> we couldn't use superman. >> best isn't good enough. i'm just saying. do better. >> i know. coming up, we've got two big after hours movers, nordstrom and applied materials. plus, you're looking at a live shot of cbs headquarters where a battle of the board is going on inside as we speak we'll bring you all those details as they happen later, the crypto crush. the blockchain conference in manhattan. with no rally in sight, we're playing the game of hodl or fodl much more "fast money" after this at&t provides edge-to-edge intelligence,
5:15 pm
covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item. [fbi agent] you're a brave man, your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.
5:16 pm
5:17 pm
♪ ♪ welcome back to "fast money. we've got two big after hours movers, nordstrom and applied materials. you hear the music it's time for earnings whip. we have aditi roy and josh lip ton. aditi, let's kick it off with you. >> reporter: hi, melissa shares of nordstrom down more than 6.5% after a big miss on comp store sales the q1 comp store sales were
5:18 pm
up .6% that's missing analyst expectations of plus 1.1%. the company's net sales increased 5.8% which they partly attributed to moving a loyalty rewards event into the first quarter this year. nordstrom also increased its digitally enabled sales by 18% the company's cfo ann braman talked about the strategic focus this year. >> as we shared in last quarter's call, we expect 2018 to be an inflection point based on the following drivers we've made generational investments in canada and manhattan and through our acquisitions of coke look and trump club we anticipate operating improvements as these businesses scale. we're also benefitting from productivity gains as a result of foundational investments in our capabilities >> reporter: some other notable points, the company just opened a flagship men's store in new
5:19 pm
york city and introduced the first nordstrom rack store in canada as you may remember, back in march nordstrom ended talks with the founding family over taking the company private after failing to agree on an acceptable price back to you guys. >> thank you, aditi roy in san francisco. karen, you've been plowing through the results. what did you make of it? >> i'm not sure what to make of it we've talked of other revenues coming in which made revenues overall greater. same store sales, that is disappointing. the stock is a little bit ahead of itself on the heels of macy's doing better not crazy expensive here i'd like to hear a little bit more about kind of what happened it is a premiere name though and i think they probably didn't get as much benefit from tourism turning around like a blooming dale bloomingdales would. they had the asian-american tourism. it's not bad here. i'd like to see it shake out a little bit. >> i think expectations can go
5:20 pm
from awful to okay and these numbers were okay. but there's two words that she used in that interview that i thought were interesting that normally would be powerful inflection point and generational they've made generational investments in long term digital. at least part of a shifting strategy and then they're getting profitable again those are things that people should be pretty excited about for a company people didn't think was going to make it. >> to underscore your point, the same store sales came up short the revenue looked okay and you wonder about the discrepancy. >> yeah, i'm not clear where that's coming from. let's send it now over to josh lip ton to give us the latest on chip maker amd. >> so applied materials, melissa, on this call executives talking about puts and takes in the quarter. let's start there. they talked about memory where they said they saw disciplined investment by memory customers they believe this bodes well nan bit demand expected to grow
5:21 pm
40% this year. they still see spending similar to last year's high levels outlook for d ram investment it has strengthened growing demand there. on the other hand, display, another important business for this company the products that are used to manufacture those lcd and oled screens. they say they were made on track in 2018 to grow by more than 30% but the ceo is saying their early review of 2019 is revenue is going to be lower than this year they pinned that on smartphone sales they say coming in below expectations, especially for those high end models. melissa, back to you. >> josh, thank you and i just want to mak clear, i said mistakenly amd amap. >> yes jwn on the new price which is now down 6% i think is sort of interesting. >> interesting okay now back to amat. >> the quarter was decent. semi sales were not great.
5:22 pm
11.5 times forward earnings which is relatively inexpensive. they don't have the eps growth that other companies do. it holds 50 bucks. you try to buy it again. it's a fine company. the fact that margins are improving is a good sign. >> it did run up 20% into the print. you have to take that with a bit of a grain of salt i would wait a couple of days before you rush back into it we had josh mention d ram prices another company relying on d ram prices in the same direction is micron micron is up and down recently dramatically i would look for that to sell off. it got a little bit ahead of itself d ram is rolling off as far as the commodity price. >> what we've heard, you have to go back to the mothership which is time on semi. it's been relatively positive. i think a lot of this is a stock that's been trapped in a range because they haven't been able to tell us things are getting better on pricing. it went from 20 to 57 over the course of two years before pulling back. >> i didn't realize -- did you know they were the mothership? >> i had no idea when he said we have to go to
5:23 pm
the mothership, i wasn't sure where he was going. >> beam us all there. >> you know what guys -- >> now we know. >> super hero issue. >> mine is right here. coming up, the ceo of one hot flying canadian pot stock just spoke to jim cramer i'm melissa lee. you're watching cnbc here's what else is coming up on "fast. while traditional media struggles, shares of wwe are slamming the competition one of our traders says it's just the start of a bigger run plus, the man who called the recent bitcoin rally is back, and he's got a stunning call that will trigger ypcrto world that call when "fast money" returns. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel
5:24 pm
and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.
5:25 pm
don't juggle your home life and work life without it. ♪ ♪ don't skip that office meeting for a board meeting without it. don't keep it real... keep it going... or simply keep it in the family without it. and don't turn that business trip, into an overdue family trip without it. ♪ ♪ the more you live between life and business, the more you need someone at your back. the powerful backing of american express. don't live life without it.
5:26 pm
welcome back to "fast money. well, we all know the sec has been urging caution over cryptocurrencies it just did something to make sure that message hit home for investors. bob pisani is at the nyse. bob, this is a crazy tory, i think. >> reporter: i love the sec. they're getting kind of freaky here the sec really, really wants you to be aware about potential fraud around initial coin offerings, icos. so much so, they have launched their own mock ico site to show you what to look for this is called how we coin it looks like an actual offering site you can click on it and get a white paper which describes the coin and how they claim they're going to democratize travel and leisure for everyone in the crypto community, but if you click on the buy coins button, you get this page. it says, if you responded to an investment offer like this, you
5:27 pm
could have been scammed. these coins are completely fake. it's the sec's website for individual investors investors.gov. they point out a number of red flags in the report commonly used by ico scammers howie coins, for example, makes claims of high guaranteed returns. this one claims over 1% daily returns which the sec says, don't believe it it also has celebrity endorsement page from imaginary famous boxer and that means nothing, of course, the sec says so is it possible to get an ico that is compliant with regulations? and that's the problem, it's not really clear right now republicans in congress are working on a bill that would provide a safe harbor. this is a legal safety zone for at least some icos, but it's not clear how far that can advance this year given the lack of time if the democrats win the house in november it's likely they'll be even more critical of icos than the republicans can first the sec clearly views
5:28 pm
almost all icos as securities and wants them to register with the sec. second, the sec views ico fraud as major threat to investors another major threat is security fed governor lael brainard got a lot of attention at the crypto conference saying there were too many breaches of exchanges and wallet providers for digital currencies to ever gain broad adoption that's a real serious swipe at the community to get their act together back to you, melissa. >> bob pisani, thank you so much i love the cheekiness of the sec in launching the fake ico. they use a couple of words, democratized, which appeals to the millennials, anti-establishment lovers of crypto they want to democratize, decentral advertise, et cetera democratize travel and leisure. >> i'm surprised they didn't have a picture of a guy wearing -- >> a tight gingham shirt
5:29 pm
what steve wears on the weekend. let's bring in ran neu ner great to have you back. >> nice to be here. >> obviously this was a major topic at consensus this is a major topic in the crypto world in general. how does the sec sort of divvy up the world and ether got all the attention earlier this week, right, in terms of is ether a security or is ether a commodity? that's going to make a big difference in terms of how it's traded. >> well, i think the initiative by the sec was a great one but the joke is on the sec they need to come up with regulation if they don't come up with regulation, they may staff an entire industry. if you look to places like japan and singapore, they have thriving icos and thriving new industry my fear having traveled extensively to the region and spoken to the founders and legislators, the u.s.a. may be falling behind and that we may not get a silicon valley here in
5:30 pm
the u.s.a. because it may all fall into the legislations that are favorable towards these icos and have got some kind of regulation in place. >> does the innovation have to come from where the icos are or can there be the innovation without the icos >> you can get the innovation without the icos that's what people are doing they're establishing companies in places like malta, gibraltar and places where there are regulations that are speaking well towards icos. the u.s. may get a brain strain towards those areas. if you go to singapore and japan, you're speaking to americans. they're there because they want to launch their icos i think the sec did adopt a responsible approach by taking their time to see what's happening with the industry. now we know that crypto is real. we know that the blockchain and crypto isn't going away any time soon now they come to the party and give us some kind of regulation so we know where we stand. >> so we've got you here you've been an investor in crypto for many, many years.
5:31 pm
we want to play a game. >> what game >> we're going to -- >> nice games. >> i'm worried i'm worried. >> called hodl or fodl we'll give you a few cryptocurrencies you'll tell us if you would hold on or if you would fold, sell it got it >> win the game. >> the first one here is bitcoin. hodl or fodl >> i like bitcoin a lot but i'm going to fodl. >> really? >> i'm going to fodl i'll tell you why. i'll justify that. i think bitcoin at 8200, i think the price is low i think it will continue to go up slowly and in a stable way. more exciting cryptocurrencies out there. if you're going to ask me whether i'll put my money into bitcoin or something more exciting, i'm going with something more exciting. >> is part of that because there are bitcoin futures because it is going into bitcoin and that dampens volatility >> a little bit of that, but a lot of the money is going from bitcoin and even aethereum into
5:32 pm
the ico frenzy there's a frenzy that's not happening on the markets, which is happening on the outside of the markets where hundreds of millions of dollars are going into icos. where's that money coming from it's not coming from fear. they're cashing in the bitcoin and aethereum. that said i do think the institutions are coming in towards the end of this year they're coming into bitcoin and aethereum themselves i am calling bitcoin out i do love the technology, but there are better coins out there. i'm fodling on that one. >> bitcoin cash? >> now i'm going to get murdered on twitter but i'm going to hodl i think there's alot of potential for bitcoin cash i like the team behind it that are driving it all the old bitcoin people my money, as much as it's going to hurt me on twitter -- >> why will it hurt you on twitter? >> because there are the trolls. >> roger veer on -- >> the powerhouse like this gentleman is actually fearful of the noise.
5:33 pm
>> amazing. >> let me just say that i love both kids equally. i love bitcoin, bitcoin cash and i love them equally. if you ask me where i put my money right now, bitcoin cash has more oney. >> aethereum. >> hodl. they have the biggest community in the industry. thousands of people. the smartest people in the room. they've got use cases. they're solving the scaleability issues i'm hodling aethereum. >> ripple? >> ripple i'm throwing in the garbage. >> you can't even say fodl. >> in the garbage. >> need new animation. >> fodl. fodl. >> why in the garbage? >> because i've been researching the ripple xrp ripple the company, one of the best companies i know. xrp the token, i still can't work out where it's useful. >> wait. because a lot of people say you can't have the platform without the coin and the coin is, you know, a statement of how good the technology is, but you're saying that there's actually a
5:34 pm
difference >> so ripple the company does the banking systems. it replaces bank to bank money transfers, primarily national money transfers. you don't need the xrp token to do that. as far as i know, i can't find a use case for the token so i'm out. >> nobody uses it for anything >> right now, absolutely not and it's centralized that defeats the whole purpose of blockchain. >> is the utility of a token what you're betting on this is a speculative frenzy i don't mean to spin it negatively. >> there are a few categories. there's one that's a store of value which i look at as bitcoin. then you have cryptocurrency -- >> for transactions. >> for transactions. then you have utility tokens and you have this new class called security utility tokens, i have to buy them for the future utility. there is no clear valuation model that we've seen works but it is a new asset class and we are taking it. >> i'm going to give you a flyer
5:35 pm
question, a freebie question which is not a hodl or fodl. when you take a look at the world, there are thousands of coins out there, which is the one that you are most excited about right now? it could be one that we mentioned, it could be one that's off the board, something that we have not mentioned. >> i'm excited for a new protocols like aethereum these are all new blockchains which are coming up. when you think about blockchain you're thinking about decentralization, you're thinking about security, you're thinking about scaleability. aethereum has scaleability issues they're doing 15 transactions per second that's not real world stuff. you can't bring it to the real world. 15 transactions per second, but some of the other block chains are resolving this they're promising 10,000 transactions per second. eos, zilica, these are all tokens that are promising scaleability, security and decentralization but they don't have the developer community that
5:36 pm
aethereum does and that's why i said i'm going to hodl aethereum. i am placing other bets on the new side chains. >> ran, great to see you crypto trader. still ahead, one of canada's hottest pot stocks, canopy growth could be on its way to wall street. we'll hear from the ceo. plus, the cbs board meeting happening right now in new york city amid all of the redstone drama. leslie picker standing by with the latest >> reporter: hey, melissa. we're here outside of cbs's headquarters in new york where the board meeting got underway just 30 minutes ago. we'll ve me haoron the battle between cbs and its controlling shareholder right after this these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done.
5:37 pm
it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪ yourbut as you get older,thing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. (slow jazz music) ♪ fly me to the moon ♪ and let me play
5:38 pm
(bell ring)
5:39 pm
welcome back to "fast money. shares of cbs getting shellacked today as a judge denied its request for a temporary restraining order against sherry redstone's national amusements for more on this developing story let's get to leslie picker who's live outside of cbs headquarters where the board meeting is taking place. leslie >> reporter: that's right, melissa. the board meeting is underway behind me. we saw a slew of directors walk in 45 minutes ago including doug morris and joseph califano none of them would talk to us or speak on camera. they were supposed to vote on a special vote that was the plan cbs ceo less
5:40 pm
nunez was pushing for a vote a delaware judge ruled today that cbs's board blocked redstone from wagging her power at today's meeting the special dividend would dilute her power down from 80% to about 17% so what's next? well, there's bound to be plenty of courtroom drama in store. no one really expects things to end right here of course, cbs has their shareholder meeting in mid town manhattan tomorrow we'll be there to follow all of the details. >> leslie picker, thank you. all of this drama has given rise to a new hit show on cbs, redstone and the restless. it is the story of the never ending power struggle. its stars, sumner redstone, revered and feared 94-year-old media titan. there's also sherry redstone his once estranged daughter who
5:41 pm
removed the french sounding ceo has set her sites on leslie moonves. with today's court ruling investors had simple but at the same time very hard questions. will moonves survive and what is happening to my money? joining us now is former tivo and current executive chairman and a cnbc contributor and now "fast money" bff this is his second appearance in one week >> how do you like that? >> few people can do that. >> cbs traded down as low as 7% interday finished down 4% what is the worst case scenario for cbs? that it is -- that it loses les moonves? >> yes i think cbs is a buy i do not think redstone is going to be able to force this merger.
5:42 pm
she may have won today but you had an independent committee vote already on this, five board members unanimously saying this thing is not in the best interests of the public shareholders of cbs. against that back rop, i have very hard time thinking that her lawyers are going to say, you know what, okay, force this through anyway lawsuits would be flying cbs is already down 5.5 billion in market cap since this whole viacom story developed i think with no analyst out there really saying this is a good thing for cbs, maybe good for viacom -- >> right. >> -- but nobody is saying it's a good thing for cbs, doesn't think she can force this through. >> if there's no merger moonves will stay? what happens with cbs? it operates as an independent company or is it in play >> there are two scenarios maybe more certainly if it doesn't stay as an independent company, les
5:43 pm
wasn't going to stay i think it stays independent i think les has the practical issue of what's it going to be like going to work every day dealing with that tension? he doesn't need that you have the alternative, if les leaves, there are an awful lot of people who think unlike viacom, who may not have any buyers, which is why they are putting so much focus on trying to drive this merger together on the national amusement side, cbs probably has a lot of buyers there are a lot of bids for cbs. so shareholders either get les and an independent company and a number of analysts have it as a 67, $68 stock or you have a multiple bids for an independent company where mna in the media area couldn't be hotter. >> i happen to agree with you. i happen to think cbs is a buy if you look at it on any metrics, it is a buy when the smoke clears, are we just playing this for this smoke to clear longer term when we look at the
5:44 pm
linear business, we look at streaming, is cbs a survivor in that environment >> that's a great question because the traditional so-called linear channels, broadcast, cable channels are in decline. cbs is in a stronger position than most. get this, it has fewer channels and therefore stronger the toughest thing going, this is really hurting viacom, is when you have multiple channels that are not musts they aren't making it into these so-called skinny bundles, narrower groups gaining more and more subscribers in those narrower bundles cbs, show time, they make it in so they're not vulnerable. now they are declining from a ratings point of view, and as is everybody, but as they get smaller, the rest of the sector is declining even more so they are actually from a reach point of view, which is what advertisers pay a premium for,
5:45 pm
they're actually getting bigger in a declining sector. and so they've got some juice for a while, and i think the longer term issue in terms of network television is not a good scenario, but if you're going to think of who is going to do the best over the next few years, assuming they're not saddled with viacom, cbs is a pretty strong story. >> going to leave it there thanks for coming by again. >> thanks for having me. >> stud. >> yeah. >> stud. i'm with steve grasso and tom. >> you like cbs? >> look at the quarter they reported on may 2nd. the quarter was outstanding. they're seeing accelerating growth if you look at the quarter in and of itself, the quarter is higher i'm not saying all of this sherry redstone stuff is noise, it's obviously important, but on valuation alone i think cbs is pretty interesting. >> i think it's pretty interesting. the les moonves thing, shareholders would really, really hate that i'm wondering if they would try to get value some other way, by selling cbs.
5:46 pm
>> right. >> that would obviously be good for cbs shareholders. >> there would be an enormous value. this is what tom is also getting at the mna environment in the media sector is such that -- think of the gyrations or permutations going on, fox, disney, at&t, you name it. i think if you introduce cbs into that feeding frenzy and adding that scale to the guys that want to control over the top, good for them. >> quickly, because we haven't touched on it. what do we do with viacom? >> i've been wrong on that if you like cbs, viacom is even cheaper. >> on that outline >> play the game would you rather >> would you rather? yes. >> got myself out of that one. >> the ceo of one of the hottest stocks in an exclusive interview moments ago. we'll bring you those comments plus, shares of the wwe soaring today now up nearly 65% this ar we'll tell you what's behind this move. much more "fast" right after this
5:47 pm
5:48 pm
5:49 pm
welcome back to "fast money. pot stock canopy soaring cnbc's jim cramer sat down with the ceo about how cannabis can be a key disrupter. >> huge disrupter to the opioid guys it's a very big disrupter in terms of what people might even think about benzodiazepines,
5:50 pm
sleep aids in canada, we have 3 or 400,000 medical patients in a federal program doing intellectual property, making different products. >> you must turn to our resident cannabis king, chief cannabis correspondent. >> i saw him today they have been leaders it's not just canada they did a great event today every company that is somebody in the cannabis space. i think the things they're saying about bruce linton and canopy, they are listing in new york people come to me all the time, what can i invest in what can i invest in a lot of the market cap has been in canada. that's changing. canadian companies have over priced stocks, therefore, over priced currencies makes a lot of sense for them to be buying cheap u.s. assets. the big boys are going to be shopping around. no matter what, more liquidity is coming to cannabis. the political football is very much in favor. >> even if they remain in canada, trudeau is pushing for the legalization of recreational
5:51 pm
use across the country in canada so that could open up a whole new -- >> the canadian valuation traded at a massive valuation the u.s. is a big market if canada is big, california is huge it's an $8 billion market by 2020 roughly all i'm pointing out is i think it's going to be a bid under the u.s. assets. some of them trade here. either way, it's an exciting time in the space. there's no question that what he's talking about in opioid and -- >> to tim's point, it opens up to retail. people that don't normally buy canadian stocks, retail investors and if they don't want to buy a toronto stock exchange stock, this can only help with liquidity. this is ground floor i don't care if they're already added in, i think it's up for here. >> catch a whole interview on "mad money" tonight starting at the top of the hour. first comes pot, then comes the munchies they're betting one burned out buying stock, let's get to mike
5:52 pm
co with the "options action." >> reporter: hi there. we saw it in a couple of the restaurant spaces. these are names that haven't been doing particularly well dri, darden restaurants, saw 15 times the average daily call volume and that included a buy of 2,000 of the july 85 calls for $3.50. a buyer of that believes the stock can make it above 85 by the $3.50 they spent by july expiration or above 88 1/2 we did see some similar sort of recovery plays in jack in the box. >> thanks for that, mike we'll see you tomorrow tomorrow is a full show of "options action. 5:30 p.m. eastern time. still ahead, wwe smackdown giving the stock a boost today on reports the popular wrestling franchise will be shopped ouarnd by different networks. we'll bring you the details of that right after this break. why are you so good at this? had a coach in high school.
5:53 pm
really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch.
5:54 pm
i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.
5:55 pm
welcome back to "fast money. check out shares of wwe topping the tape today the stocks ran more than 50% the stock is now up nearly 65% this year. this is our parent company universal. nbc universal isn't expected to renew the deal with the pro wrestling show "wwe smackdown" currently airs on the u.s.a. network. >> there's talk that it could be raw three times the current
5:56 pm
value. i don't know valuation wise this is in the deep end of the pool however, if you bet against this stock you're getting basically body slammed -- >> see -- >> body slammed by jimmy superfly. >> is that a real wrestler >> yes super fly. >> okay. >> i don't know who they are. >> look at that. >> this isn't hulkmania. you stay with the stock. they will shop this and get it picked up and it will be for three or four times its value. people love this. >> grasso watches it all the time. >> no accounting for taste. >> are you serious >> no, but my kids do. the younger generation still loves wrestling. you have to follow where the kids are looking the kids, they like the wrestling. >> 3-0 >> yeah. >> wwe, that's a very important point. e yswwsa it's entertainment. >> it's not real >> quick, go to break. >> up next, final trade. ou can ♪
5:57 pm
♪ that it will only get better ♪ you and me together ♪ through the days and nights. ♪ i don't worry 'cause ♪ everything's gonna be all right. ♪ ♪ no one, no one, no one ♪ can get in the way of what i'm feeling. ♪ ♪ no one, no one, no one ♪ can get in the way of what i feel for you. ♪ ♪ you, you ♪ get in the way of what i feel for you. ♪ at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes,
5:58 pm
& he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item.
5:59 pm
time for the final trade around the horn we go. tim seymour. >> they told me what my final trade was but i knew it was eog. >> put up my final trade. >> like guy does are you ready? >> karen >> yes in the mlp space i still like globe iron. it never should have been a glow. >> steve grasso. >> alibaba i've been in and out you will see it guy rate with every trade talk it's a buy, stay with it.
6:00 pm
>> let's not put up guy's final bid. >> wise guy? remember about march 20 something and in the hat club downgraded the stock guess what they just did upgraded t sckheto play the game. >> i'm upgraded the stock >> i'm melissa lee thanks for watching "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. my mom always said, if you keep playing this hard, someone's going to get hurt. on a day like today, where the dow dipped 55

36 Views

info Stream Only

Uploaded by TV Archive on