Skip to main content

tv   Fast Money  CNBC  February 27, 2012 5:00pm-6:00pm EST

5:00 pm
a special shoutout at the nyse. day one in the books. it's a historical day for us. as we leave you this evening, we bring in our production scenes who make it happen every day. i'll see you tomorrow. i'm melissa lee. here are tonight's top three trades. priceline surges above $600 a share. is a plit on the way? plus small cap stocks are having trouble keeping up with the rise in large caps. is a weakness cause for concern? and warren buffett says he's buying jpmorgan for his personal account. should you do the same? live from the nasdaq market site, this is "fast money." let's start trading. we've got to hit the markets overall. yes, looked like they were little change. but hitting new market highs.
5:01 pm
another one, in fact, today. dan, are you seeing people believe in this slow creep higher. >> that's a good point. they believed it on the opening today. the vix was up 10%. it spent the morning rallying the market rallying and the vix coming in. at the end of the day, it held firm. to me right now what you're seeing is there is demand for puts. especially in the index etfs. as far as single stock vols are concerned, still cheap. >> i'm a big believer. the market doesn't give you this much opportunity to buy the lows and sell the highs. with that in mind, my sense is there's a good chance you make one of these blowoff tops. i would wait a day or so for this level to be cemented in stone, let's say. there's a good chance given the price action and the fact the market refuses to hold the lower levels that we're going to push towards the may 2008 highs. again, i don't think -- i think
5:02 pm
if we made a high i don't think we'd be hanging around. which they're probably getting taken out back. >> the glass half full. thought would be sitting at these highs. today we didn't even crack a billion shares on the nyse which is light volume. >> right. but these stocks have been cheap for the last three years. you're not catching the big gust upwards in stocks. one thing people need to consider is if you look at earnings, only 44% of the companies this quarter have outperformed what the estimates were. yet the market is up 25% since october 3rd. now i'm getting a bit concerned. you've got oil sitting out there with potential gas prices going to $5 a share. you've got to be worried here about a near term correction. even though i like the market longer term for the 2012 year. >> then the elephant in the room is apple. apple was up today. without apple, i'm not sure if the s&p 500 would have closed in positive territory at this
5:03 pm
point. >> when we came in, the market was down. my thought was we needed a breather. i was surprised it wasn't down more. then slowly worked its way back past flat. i wouldn't be surprised if any of them take a breather including apple. i don't know what's continuing to make the market go up. i don't. i'd like to find new things to buy. i would like to find -- i'd like to put money to work if i find things that are attractively priced right here. but you can't help but feel like, wow. i could have bought this 20% cheaper not very long ago. it's hard to put new money to work. >> anthony made a good point. 44% of the companies in the s&p 500 have basically disappointed. think about the q4 period. got destroyed. so you're talking about only hitting that level of beats with numbers that were already lower for a good portion of the second half of last year. to me i think the earnings we've seen are disappointing in a lot
5:04 pm
of ways. i understand a lot of the pessimism we saw in the last half of the year was obviously discounting a heck of a lot of news. but at this point i think you have to ask what does it look like? >> price is truth. if it's one share or five billion shares today, the market is -- we're here for a reason. so believe me. i am -- i haven't been bullish for a long time, but i've always said follow what the market is telling you. i believe it's telling you we're about to put in one of these blowoff tops. which is not only good for the bulls. in the end, it's probably great for the bears if they have the temerity to step in. >> just to thread this back to apple. you've got to get a $9 billion revenue increase to get a 20% growth in revenues now for apple. so they are at some point going to get up against the behemoth numbers. i was wrong last year. i said they couldn't break through 300 billion in market cap. i'm not suggesting it's going
5:05 pm
lower, but you've got to think of these as an investor. >> what are you seeing today? >> we see no volatility in the market. i think that's amazing. market up just a tiny bit. given what oil did you would expect with all the concern about oil recently that what we saw would have been great news for equities. as you pointed out, there's no volume and follow through. as guy points out, whether it's one share or a million shares, that's the value. i think what's going on is people who believe in equities and have believed for 20 years are the buyers. people who are not real believers in equities are still on the sideline. that's good for stocks. finally they're coming in at some point and drive the market higher. >> let's get to afterhour action now. priceline hit a new high in today's session. if it hopes at these levels it will be another fresh 52-week high tomorrow. blowing through the quarter guidance. the stock is nearly $630
5:06 pm
after-hours. high oes level, by the way, since the internet boom. >> the obvious thing to say here is sell the rally. but i'm not going to say that. i'm going to say even with the move you've seen, this stock at 20 times forward earnings is not that expensive. fourth quarter bookings were up almost 52%. they gave first quarter revenue forecast between 22 and 27%. they blew out the numbers on eps side. so this unlike crm, sales force.com, the valuations on that one don't make sense. the valuations on this given what they're going to do so actually does make sense. >> hotel strength was cited for the reason they're vying higher. 55% of revenues total bookings is from european hotels which would concern me going forward. >> that's a great point. analysts -- investors had an opportunity to look at expedia's
5:07 pm
earnings a couple weeks ago. as far as priceline's concerned, they get an amount from overseas. you also have foreign exchange worries. this is one of the reasons analysts thought they were going to beat in q4 but cautious or guide down for q 1. that didn't happen. that's why you see the stock up here. this stock has 6.5% short interest. trading 20 times next. this is a cheap stock. this is not netflix here. don't let the handle fool you. at the end of the day you're going to have shorts climbing all over to cover it. but i don't think new longs should be initiating here. >> let's bring in aaron kessler. he's got a $685 price target on priceline which he just raced last week by about 10%. aaron, when you first raised that price target a lot of people were scratching their heads. looks like tafs good move ahead of earnings. at these lofty levels, i want to
5:08 pm
go through the bear case on priceline. i think that would be helpful to a lot of people out there. which the company did site. a large percentage of total bookings come from european hotels. how are they offsetting the weakness? >> i think the key point is that penetration in europe. we estimate about 25% of european hotels are online today. we think over time that goes to over 50%. we think the hyper gross over the last few years continue. they grew 70% roughly in earnings in 2011. we're still modeling an proximate growth in 2012. a lot of coming from online penetration. not necessarily the overall markets growth. >> where can this stock go? obviously it's up huge in the aftermarket. where can it go from here? i think there are people out there with 750 price targets on it. do we test those levels? >> i don't think it's unreasonable. at about 16 sometimes our 2013
5:09 pm
estimate. none for a company growing 30% over the next couple years. no reason it can't trade at 20 times on a number. as you look out to 2013, it could go higher than 700. >> one of the negatives you had pointed out to us prior to this is airline tickets declined versus 7.7% in the third quarter. is that -- i'm assuming that's sales? that's revenues? >> that's actually number of tickets sold. international is about 80% of priceline's growth process. and internationally they don't have much oex poe sure to the segment. you get a lot of discount air traffic. >> it's karen. let me ask you something. at whose expense is priceline's success? >> we think they are taking a lot of share from the offline
5:10 pm
tour operators. as people do more independent travel booking they're getting share from the package tour operators. >> at what point does high gas prices and fuel costs as well as for drivers, at what 30i7b9 is that a headwind for the story? >> it's been a bit of a headwind over the last few quarters. more of a penetration story just gaining share from offline players. which we think until they get to 50% of the market, we're not too concerned in the near term. >> the one question you want to ask management at this point, the one question you still have about the stock? >> how can they continue to grow at 50% plus? it's amazing what they've done in the past few years. there's room to grow, but i would be surprised if they continue to put up these rates for the next two years. >> we appreciate it. aaron kessler. scott nations, in terms of the
5:11 pm
options activity, have you seen any jockeying ahead of the priceline earnings? >> some options traders were listening to aaron. volume was about four times normal. but you would expect that the day earnings come out. put call ratio what you expect. the amazing thing is in the weekly options that expire this friday, by far the most active call strike was the $650 strike there are people who expected a block buster number. and amazing that a strike that far out of the money is going to be in play after that much volume. >> do you remember when they got rid of the negotiator? >> yeah. the fake one. that cat, he watched "fast money" a few years ago. who? i mean, he was on star trek. >> the negotiator, he's been the negotiator longer than you have been. >> come on. really? i don't know. maybe i'll go to my google machine and see.
5:12 pm
i'll arm wrestle him right now. >> he's like, how old is he? >> what's that got to do with it? he was captain kirk. he was fighting aliens. >> guy, i still have my communicator from 1974. go easy on him. >> let's move to the next trade here. pending home sales rose 2%. hit its highest level since april of 2010. 2% on the news helping to turn the markets around. is this is a clear indication it is off to the races. it helps we got data points from home depot and lowes. we've gotten these other points from the armstrong worldwides, the treks of the world. saying that things aren't that great and they fell short of expectations. what do you think? >> i think the bottom's in for the sfoks. whether or not -- which is a big difference. a lot of good news, i think, is
5:13 pm
already in the -- well, the xhp just as a conglomeration of names. whether it's the actual home builders or a name like whirlpool. a lot of good news is already in it. i do believe we will recover, but i can't jump in right here. >> whirlpool. you mentioned. whirlpool has had an unbelievable run. in today's session, up 6%. since the earnings which they did miss, they've been doing quite well surprisingly. >> this could be a situation of just picking up some lags in a market where you see so many stocks trading near 52-week highs. this stock just at the beginning of the month is maybe 15% off the 52-week high. so it could be a little bit of that. and i don't know what to make of it. but the volume you've seen on the two gap days this month are dramatic. >> i think it's also partially linked to sears.
5:14 pm
back on the housing, there's no question that the housing is bottoming and there has been a differential. i personally think these stocks are overvalued here. i take karen's side of this as it relates to valuation. there are many people out there who say the foreclosures are still high. yes. but you have to look at the differential and b the rate of change. the slope is biased upward for a housing recovery now. and even warren buffett said so this morning. >> the second biggest holding in the xh sprks not what you would think. it's t look at the interest in this stock. more than 25%. oppenheimer's analyst just raised the price target to 85. i think it's late in the game on this. there could be another 12% of upside in this name before shorts finally throw in the tile. i think it looks interesting.
5:15 pm
>> it is. it is surprising to see the home builders etf and see two mattress makers in the top. we do have a programming note. we will be speaking to the toll brothers ceo tomorrow. we can ask him what he is seeing. also benefitting from metropolitan developments. meantime, coming up. we've got all the winning strat yes. plus we're checking the charts of carter worth. stay tuned.
5:16 pm
5:17 pm
5:18 pm
welcome back to "fast money." we are live at the market site in times square. let's get the state of play in hedge funds. they continue to trail the equities despite the word the economy is rebounding.
5:19 pm
>> for viewers explain this is the classic situation where the hedge funds are going to lag a market move. typically do better in the kind of 5% to 8% move in markets or do better at defending capital. when a market is racing up 25% in four months or three months, it's very hard for these hedge fund guys. their net long exposure is less than the market is. what seems to be happening now is inflation trades. anything betting on the euro crisis is going to abate. we also see distressed equities doing well. and stressed high yield. but it's very interesting. i think the hedge funds are going to come under media fire because they've lagged the market and last year they were flat for the most part with the fund of funds index. in some cases down 6%.
5:20 pm
this is a difficult time for the hedge fund community. the ones that seem to be doing well are betting in the market. >> are we going to see a shift happen where some of the funds will do better in the second half of the year? or are we going to see the result of 2012 being a shakeout for the industry? >> i think this could be a year of consolidation. it's very hard for people to bust free from their strategies. i think at the end of the day, the volatility that we've experienced in the markets while for some hedge funds is quite good, for the majority of the hedge funds i think b they find this very difficult to trade. >> some of the big names out there, a couple come to mind. like a john paulson for instance. difficult in the advantage plus funds. will we even see people like that have redemptions? we think this is going to be a make or break for a lot of -- mr. paulson is not the only one out there not doing well or struggling. >> here's what i would say. i think people that redeemed on
5:21 pm
guys of that size probably did so in december. i think in john's case, i would say he was probably a little early on the trade. he's probably going to be very right about that over the next 18 months. it would be foolish to redeem from him now. if you haven't done so already. but i do think that this will be -- the industry's in transition and there will be solid this year. >> last year and think all right. there's an amount that's just too big? the funds are too big. they just can't put that much capital to use. >> there's criticism on both sides. some say the funds are too small. other people say the funds are too big. it's like an elephant taking a bath. they can't move around. you know, karen, i think that the too big theory really hasn't statistically bore itself out. i was part of the smaller is better hedge fund. now i think the evidence is more or less conclusive that you need reasonable scale to get the
5:22 pm
performance we're looking for. >> what about the crowded trades? we talked about it last year in gld. paulson's a good example. that closed down 20% from the highs in the summer to the last day of the year. and you get that price action. reminds me of what apple could be setting up with massive market cap. everybody owns it. at some point, i think something's got to give here. >> it's one of the largest positions alongside apple computers. guy says price is truth. he is right about that. but when you get heavy volume in crowded hedge fund trades, you can get massive volatility. you have to be wary. i agree with you. >> goldman sachs says out with the hedge fund monitor. saying hedge funds own 4% of apple's market cap. >> that's it? >> that was what was so shocking. >> they also own the xlk. there's a lot of things. when that turned two weeks ago
5:23 pm
it went straight to 47 in a straight line of massive volume. that's the thing i worry about in a more difficult market than we're in right now. when a few guys head for the door, you can see much lower. >> small caps have performed over the last week or so. does that mean investors should be concerned at this point? let's find out what the charts are saying. carter worth. a lot of people pointing out that the small caps seem to be stalling out and maybe that's bad news nor the market. what do you see? >> in principle, i wouldn't interpret it -- maybe the small performs. if you were to look here at the xhb, the move from 60 quite precisely did not break the low and has gone to basically 83, 84. that's a 40 move out. and now starting to pause. meaning we've gone sideways for 20 sessions. because the s&p's continued. what's important is the pause is happening at a level where you
5:24 pm
might expect it. which is to say there's a lot of dead bodies here. six months of buyers. and the principle is when you lose a lot of money and that is returned to you, these people become interested sellers. it's normal to stop and pause. i would interpret it as that than the foreshadowing of something worse. >> hey, you have the iwm chart up there. what do you make of this morning? down this morning. it was actually below its 20 day moving average. and that -- to me, that's one thing. it hasn't really been below that since december 19th. if you get a close below that, you could see a momentum shift. is that something you look at? >> it's a tight range. 81 and 50 on the downside. it's no different really in terms of the lack of variance on the s&p itself. the stats now, we've reached 39 consecutive days where the s&p
5:25 pm
hasn't gone down 1%. it's a very benign will be almost complacent kind of thing in the russ em but almost all indices. >> let's go to bank of america. does it look like a floor on the stock? >> we can move quickly through them. first is bank of america. the premise is when you have a down trend and bump up against it. when you finally do break above it, it represents the beginning of the end. by all accounts this is the early stages of longer term bearish to bullish reversal. if you look at goldman sachs it's the same circumstance. and all financials look this way. you'll see it on the next chart. fanls have bottomed and seeing it here in a goldman and bank of america. but you can pick your name. so forth. >> and we were also earlier
5:26 pm
talking about the home builder. what are you seeing there in terms of the momentum? >> could one make the following claim. could be a sale and a buy at the same time. on the surface it sounds the same. that's what this is. which is to say you have to figure out what one's time frame is. anything that moves from a 52-week low of 12 to a 52-week high to 20. two to five months. as an intermediate player, it's right to be selling xhp. however, for someone who's long-term, look at the longer term circumstance. same picture. this is the move from 12 to 20. this strength confirms for real and good and true the bottoming out process which is to say only now because of this strength is a longer term player. a big pension plan, a large
5:27 pm
super cap mutual fund complex. start doing the work to come to grips with the bottoming out and housing. can be an index. a buy and a sale. the exact same time depending who you are in the market. >> and we want to get a tradeup date on shipping. you actually recommended last time you were here. looked like it was going to do well. we haven't seen that play out. number of news items such as an offering getting in the way of that. >> what's interesting is this winner and loser at the same time. genco with all shipping stocks. then in this case they came out with a secondary. now we're back to where we started. so the issue is do you abandon it it have been falling back now. i would say no. stick with the trade. >> all right, carter. always good to see you. carter braxtonworth. >> we were seeing a big pickup.
5:28 pm
but it's people who disagree a bit with carter. they think this gap back down is the beginning of the end. they're taking advantage of this volatility in options. they think the move is down. and they're using both the gap down and implied volatility that is really high. collect a lot of premium at these levels. >> we've got to take a break here. we've been talking about trends here. carter outlined some so well. here's another trend we took note of here. that is angelina jolie's right leg. remember the actress turned heads with the versace gown that made her right leg an instant internet sensation. guy and dan were all over this. >> honestly? i tell you what. she does nothing for me. >> she does for a lot of other people. >> no doubt. >> a new twitter account @angie's right leg has
5:29 pm
more than 17,000 followers. if you didn't get enough last night, check out this which has her leg showing up at some of the most amazing settings. >> brad pitt's a right arm guy. >> we share the same birthday. december 18, 1963. rooney, that's going on. >> really? i thought she could have done better. anthony, you have a picture. >> they're showing it. a double leg version all over the internet right now. you know, i personally think she did that for a reason. and that's so we would be talking about it. so good job on her part. >> it's just like remember the casino, the guy -- right? we talked about the casino. seemd like bad pr. pr is good pr. >> brad could do better? i'm just saying. >> next on "fast," we've got
5:30 pm
your trade next.
5:31 pm
the the new spark cardnth from capital one. spark miles gives me the most rewards of any small business credit card. the spark card earns double miles... so we really had to up our game. with spark, the boss earns double miles on every purchase, every day. that's setting the bar pretty high. owning my own business has never been more rewarding. coming through! [ male announcer ] introducing spark the small business credit cards from capital one. get more by choosing unlimited double miles or 2% cash back on every purchase, every day. what's in your wallet?
5:32 pm
5:33 pm
welcome back to "fast." s&p downgrading greece's long-term rating to selective default because of clauses put in recent debt agreements. let's bring in chief market strategist at jpmorgan management. she's also a "money in motion" contributor. rebecca, does this mean anything at the end of the day? >> probably not to be quite frank. i think most people in the market knew this would happen. especially if we did have the collective action clauses which are a way to force the participation needed in the
5:34 pm
debt. >> does it not matter much at the end of the day because it's just one rating agency as opposed to two? >> that might be important at the margin. but i think what i'd keep in mind is markets always react to what's not priced in. that have helped support assets in this trade in recent months. greece is a problem for europe. it's still a risk we want to watch. at the same time every day that passes more is priced in. and i think this was something that was priced in. it might cause a little bit of euro selling overnight in asia. i think it'll probably be modest. >> let's talk about the big event this week. that's round two of the ltro. you mentioned what was priced and what seems to be priced at this point is $500 billion. so interpret what you're expecting. what could be the outliar situations that would move the markets. >> sure. you're right. there's a consensus view out there around 500 for this three
5:35 pm
year operation. the range on this is -- honestly i don't think people know what it means. i honestly don't know. the fact flooding with liquid i did. that's good news for cyclical assets. i notice it is not near this euro. >> well, it is and it isn't. we're looking at sweden. which is part of broader europe. although not the euro area. the idea behind this is for your viewers who are long equities and have gotten back in risk assets. if we do get disappointment
5:36 pm
about greece and the ecb's operation. we have important data coming by. there's lots of triggers out there. sweden's market is largely foreign owned. so when stocks globally fall, the swedish crown tends to fall with it. get long the u.s. dollar and long the swedish crown. >> what are your levels? >> get in this now. trading around 6.59 on dollar sweden. look for a move up to around 6.9. have a stop loss around 6.45. oil prices, ecb this rally you're going to make money on
5:37 pm
this trade. >> of course catch more money in motion every friday on cnbc. we're getting fine print on a battle that's brewing over ware. plus the trade on jpmorgan tonight. more "fast money" straight ahead. are you still sleeping? just wanted to check and make sure that we were on schedule.
5:38 pm
the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. "for starters, it didn't cost me anything." "and i got a one-hundred dollar cash bonus for rolling over by april 16th." "i like bonuses." "plus at scottrade, there are thousands of commission-free investments." "and if i need help, i can find it online, by phone or at one of over five-hundred scottrade locations." "it's why more investors with i.r.a.s are saying.." "i'm with scottrade." ♪ [music]
5:39 pm
5:40 pm
welcome back to "fast money." surfer retailer billlabong. the stock rallying on the move in thought of a sweetened offer. agreed to sell half its performing brand. karen's got the fine print. >> i like the situation. here's why you got to read the fine print. came out and said. do anything with their assets such as nixon. we thought it doesn't matter. tpg is just saying that. in fact, they said fine. we'll buy you whether or not you sell. i don't think it's over yet.
5:41 pm
i think that billlabong had some missteps in the last few years. they went on a spree that cost them a tremendous amount of money. there's still value there. i don't think we have seen the end of this yet. we're long billlabong. >> do you think that tpg is motivated enough to come in? >> i do. they want to put money to work. they want to do deals. this is an interesting one. there's still a tremendous upside. >> do you own the stock or using options for this? >> we own the stock. >> all right. let's move on here. berkshire hathaway's warren buffett said we own shares of jpmorgan. more than 16% higher year to date. could boost sentiment even more. with all that said, are shares still a buy?
5:42 pm
let's ask jamie cox. you expect it will. what do you think is going to be said tomorrow. >> i don't think he's going to follow angelina jolie's lead and show leg. >> i kind of wish he would. >> you never know. but i do think he will expound upon his comments on housing. i think with both jpmorgan and the banks, i'm going to see what he has to say about housing. that really tells us what the future holds for banks. over the past couple months, had a tremendous run. dependent upon what happens results of the stress test and what housing does generally. apart from that i do think that you could continue to own jpmorgan from the div dent. and a slow incremental increase.
5:43 pm
>> it's karen. let me ask you something. how do you value this? what do you think is normalized earnings if we get back to a housing market that's not continuing to fall. what kind of multiple do you put on it? what could they earn? >> they're under ten right now. over the past couple years. we try to figure it out. i think 11 multiple is probably fair price to book. they're still below one. there's a lot of room for this to expand. i don't think you can define with these. over the next couple months what you're going to see is slowly but surely an improvement in housing. a gravitation back to the banks. they were rv in the fourth quarter last year. i think most investors are waiting to see what the dividend impact is and whether they're going to have a follow on repurchase of shares. also there's a lot of talk about the breakup of jpmorgan. that's an interesting concept to me. look at the valuation of the
5:44 pm
constituent parts. i don't think the jp maher gan is one of these companies you want to breakup. i think together you can get to where the folks think the breakup value would be. i don't agree with the breakup opportunity or the theory. i like jpmorgan as one package. i would rather it be that way for a lot of different reasons. i don't agree with that sentiment at all. >> any other names in the financials sort of catch your fancy at these levels? >> well, i mean -- separated between trades and investments. jpmorgan, trades, bank of america. and i like the middle market banks. your pncs and others that will have a nice knock on effect during analyst day. one of the things jamie dimon does well is set up the statement for not only jpmorgan but the industry as a whole. what he says will lend itself forward as part of the industry as a whole. and all those. because i think they benefit greatly from any improvement in
5:45 pm
the housing market. maybe even more so than what jpmorgan does. >> jamie cox. do you think the comments about the housing market -- bullish comments will help lift sentiment? >> i hope so. last year did talk about the dividend. and i think that could be somewhat helpful. i think we'll see a buyback. that could be helpful as well. their earnings machine -- earning story is still in place. it's cheap. >> anything unusual in the markets with jpmorgan or financials at this point? >> not really. we saw a lot in december and january buying upside calls. even when vols were much higher. a lot of the easy money's been made. out to april, that's going to catch the q1 earnings report. it's realized that for the last 30 or 60 days. the options are reasonable if they want to mange a defined
5:46 pm
risk. >> one thing he didn't fully address is the potential for dividend increase that will clearly happen under jamie dimon's watch. and the second thing is relevant to today. i was with three of their private bankers for lunch. this is the best managed company. they went from the underwriting standards on the private banking side, commercial banks side, et cetera. this is the best managed company. i disagree with buffett on that. this is a better run company than wells fargo. next on "fast," if you were thinking of betting on microsoft, you may want to consider options. we've got the trade next on "fast." dave, i've downloaded a virus. yeah. ♪ dave, where are we on the new laptop? it's so slow! i'm calling dave. [ telephone rings ] [ sighs ] i need a new i.t. guy. [ male announcer ] in a small business, technology is all you. staples easy tech experts are here to help. you must be... ...dave. [ male announcer ] with everything from new computers,
5:47 pm
to set-ups, to tune-ups. stapes. that was easy. americans believe they should be in charge of their own future. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one.
5:48 pm
together for your future. ♪ i look at her, and i just want to give her everything. yeah, you -- you know, everything can cost upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude, those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man?
5:49 pm
i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. money,". coming up next on "mad money," cramer's looking at five stocks to help you fight pain at the pump. it's all coming up top of the hour on "mad money." black stone is -- don't roll your yies. i don't like it when you do that. >> how can you tell 1234. >> i saw it out the corner of my eye. peripheral vision right here. toward the construction of a plan to export natural gas. the companies are betting markets outside the u.s. will
5:50 pm
pay prices up to five times higher. so what is the trade here. this $2 billion investment is for a plant. to liquefy natural gas and export it. >> i think by 2016. it's sort of amazing and the history here. they have sort of reverse engineered their entire investment thesis. they will be exporting. that's the plan. for me, i don't love to get into long-term production bets because things always go wrong. they always cost more. they always take longer. transportation of lng. we see lng use grow around the world, on uptick from fukushima. i think it's a better way to play it. >> theoretically at the point of when chaniere will, golar export that same gas that comes out of that plant? >> yes.
5:51 pm
that would be more transportation mileage needed around the world. not that we'll see new ships come on. but i think we're still in the early stages. >> let's hit only "options action" here. scott nations is taking a look to trade microsoft. remember, it's long awaited windows 8 beta release will be online on the web wednesday morning. what's the trade? >> well, with that news, everybody that has owned microsoft for 15 years and seen it go nowhere is looking to juice the upside of that news a bit. the way to do that is to use a call spread. one by two. what is that doing b? it's buying in microsoft, one of the june 32 calls. pay $1.05. pay for that by selling two of the june 34 calls for about 40 cents each. the whole thing costs 25 cents. since we're net short a call, this is only appropriate if you're long the underlying stock. but the way this works out is we get leverage to the upside
5:52 pm
without adding leverage to the downside. if you're like me, you've owned microsoft forever and watched it go nowhere, this is a great way to get out of a stock you've owned for a long time but you hope is going to pop. >> catch more "options action" every friday at 5:00. next on "fast," the traders answer your tweets. stay tuned. [ leanne ] appliance park has been here since the early 50s.
5:53 pm
my dad and grandfather spent their whole careers here. [ charlie ] we're the heartbeat of this place, the people on the line. we take pride in what we do. when that refrigerator ships out the door, it's us that work out here. [ michael ] we're on the forefront of revitalizing manufacturing. we're proving that it can be done here, and it can be done well. [ ilona ] i came to ge after the plant i was working at closed after 33 years. ge's giving me the chance to start back over. [ cindy ] there's construction workers everywhere. so what does that mean? it means work. it means work for more people. [ brian ] there's a bright future here, and there's a chance to get on the ground floor of something big, something that will bring us back. not only this company, but this country. ♪
5:54 pm
5:55 pm
welcome back to "fast money." we're live at the nasdaq market site. let's get to viewer tweets. @trader greg asked does anthony think a new ceo will propel jnj higher? had a lot of recalls under husbahis belt lately. >> there's been miscommunication between the share and the board. vice chairman i think is a positive one. and i do think this will enable the stock to trade higher. on a relative basis, it's more expensive than a pfizer. this has a well established portfolio brands. and i like it a great deal. >> wants to know your thoughts
5:56 pm
on disney after the goldman sachs upgraded. went to 51 bucks. >> hopefully he was watching in early february when they were poured in. we said that's an opportunity to do this. that means buy, rob. now goldman sachs is month later, they're on giddy up with them. who's their analyst? drew boris? i don't know if it's going to 51, but i think it's definitely going to 45. espn is crushing. this is basically -- it's content. media content. and they're crushing it. >> all right. got your first move tomorrow when owe come back. tdd# 1-800-345-2550 i'm constantly working my screens. tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts,
5:57 pm
tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then to track the stocks i have my eye on, tdd# 1-800-345-2550 i turn to schwab's high/low ticker. tdd# 1-800-345-2550 so i can spot a potential breakout tdd# 1-800-345-2550 before it breaks out. tdd# 1-800-345-2550 and get this...i can even trade, tdd# 1-800-345-2550 change my orders or check out my positions tdd# 1-800-345-2550 right on my chart. tdd# 1-800-345-2550 my system works for me. tdd# 1-800-345-2550 does yours work for you? tdd# 1-800-345-2550 get streetsmart edge tdd# 1-800-345-2550 from charles schwab for $8.95 a trade. tdd# 1-800-345-2550 open an account and trade up tdd# 1-800-345-2550 to 6 months commission-free. tdd# 1-800-345-2550 call 1-800-790-3806 tdd# 1-800-345-2550 and get started today.
5:58 pm
but proven technologies allow natural gas producers to supply affordable, cleaner energy, while protecting our environment.
5:59 pm
across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems... ... and protect land - by reducing our footprint and respecting wildlife. america's natural gas... domestic, abundant, clean energy to power our lives... that's smarter power today. time for the final trade. scott nations. >> crude oil down 2%. no love for equities. buy put spreads. >> like microsoft. look for windows 8 to explode in the tablet market. >> is this michael jackson? wlk. >> cov. >> dan? >> consider stock replacement in the banks. >> you're so smart. i'm melissa lee. thanks for watching. >> you get him? >> that's rg something.

24 Views

info Stream Only

Uploaded by TV Archive on