Skip to main content

tv   Fast Money  CNBC  May 30, 2018 5:00pm-6:00pm EDT

5:00 pm
out there what the high watermark were some of these things i don't know what that would have gotten him. but you're right it must have been recently if these were talks. >> becky, thank you so much. becky quick there touching base with warren buffett who did confirm he looked at that investment in uber that does it for us mike, thank you, as always and for "closing bell. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. your trader are pete najarian, tim seymour, steve grasso, and guy adami. tonight on "fast," one hot foreign market is up 57% in the past month, but one fund manager who oversees $70 billion in assets says it's a, quote, hot mess she'll be here to tell us why. plus, the ceo of ripple sitting down with us on power lunch today. there is one thing he said that's got the crypto universe in a frenzy. today stocks soaring back after yesterday's losses the dow up more than 300 points as the fears of a full-on euro
5:01 pm
crisis subside and it was small caps leading the charge and the stocks soar a group of economically sensitive stocks could be telling the true story of the consumer shares of retailers raging back. check out some of the huge moves, and it's across the board. footlocker, low loews, macy. should you keep betting on the fact consumer and what does this say about this rally guy? >> well, yes is the short answer and it's interesting you smenmeo small cap. >> rome on fire, nero, yes >> and that whole thing. >> of course i do. >> one of the thing we said the top of the show is the russell closed unchanged on the day. very interesting tim said nobody is panicking here i think we're pretty uniform across the desk. in terms of the consumer,don't ever bet against the u.s. consumer and pete did a -- >> power pitch. >> power pitch, right? a couple of months ago and he hit it on target.
5:02 pm
it was a powerful power pitch. but if you like walmart at 17 times forward earnings, you have got to love target and today america merrill lynch put them on the u.s. list with an $86 price target. whether or not the consumer is strapped doesn't matter. they will spend, especially if they feel optimistic about this. >> this weaves in nicely in the whole tapestry the u.s. is the best place to invest if you think that there could be or there is turmoil overseas, and you want to be domestically oriented, these retailers are really the place to be. >> probably the sweet spot it's a double tailwind, if you will, with retail because you are trying to avoid the european risk you're trying to avoid the italian banks. but across the desk, i thought we thought it could have had maybe two more days of a sell-off i think today bounceback really shocked a lot of people, including myself the retail is a mixed bag. i don't think you can lump in everything if you're looking at walmart, the chart on walmart looks
5:03 pm
horrendous tiffany's was a merchandising thing. costco we'll see tomorrow. it's a total mixed bag you can't glean anything substantial from it. >> well, i think the most important things we saw over the last couple of days were that small caps hung in there so when you think about where the u.s. economy is chugging along, where tax cuts are really going to help, where a sense of optimism, of less regulation that's helping the small business, that should be feeding through to consumer discretionary aims if you look at things that have outperformed the s&p since the markets peaked on that jan 26 blowoff friday, the xrt has outperformed slightly. some of the other names in the space have massively outperformed we left a lot of these companies for dead we assumed they were going to be amazoned to death, and that's not true a lot of these companies don't have the same business model but they remade themselves macy's is a big name there and walmart. i think walmart is expensive in this market regardless of what's going on with the consumer and i would avoid that >> retail? >> retail. i do love target
5:04 pm
guy points that one out. i love home depot as well. they ran into that tough weather, and that was the last part of their quarter. >> they are domestically oriented. >> domestically oriented company. they had a nice bounceback today. i think the names across the board, how about tgx, another all-time high, i believe when you look at some of these names, can they compete in an amazon world that's what we always bring up and many names can i think costco can i think home depot does. i think target is going right at them the same way best buy did long ago thing are names out there that can absolutely compete and it's not just amazon's world. we say it all the time. >> home depot and lowe's trade with the builders. how much to everyone's point is the effective tax rate when you look at a lot over the retail names. the forward facing u.s. centric businesses >> i think lowe's was in the market perception and the been fit they get in from the tax deal, i think they were hurt by
5:05 pm
this meanwhile, lowe's is investing in their business. of the two, as much as home depot has been the outperformer, i think lowe's is the relative value trade. the luxury space has been on fire consumer discretionary we talked about tiffany and ralph lauren look at lvmh, you can see this global affluence trade is alive and well, and that these names outperform and are trading at peak multiples. >> i would push back a little on the lowe's/home depot thing. i think they're the better company. better run lowe's has had an absolute tear to the upside. thing is a lot of different reasons why. their numbers were nice. but i still think. this is one of the names i'll give you an example thofnlt pop, i decided i own this stock i don't think it's going to sustain this game at this pace it's been on i think it's going to pull back. >> how about a really interesting one. tim's been in it i've been in and out of it macy's up 40% year to date
5:06 pm
when you look at why they're making money, they're reorganizing square footage. they're renting out floors now used to be a reit. used to think about selling off the real estate. now they're keeping the real estate, but they're selling some floors they're doing a hybrid model it's up 40%. it's still a $10 billion market cap. it's probably worth double that. >> here is the question. are we taking a look at an assortment of retailers that have their own reasons why they're going higher, or are we looking at a group that is going higher because of tail winds provided by the u.s. economy >> i think for example macy's, specifically a macy's store. we rolled off the big box retailers. some for good reason jwn has had its issues sort of hanging in there jcpenney has been a disaster but macy's off the deck at $21, now 35.50. and getting upgrades susquehanna over the last week or so with a $43 price target. if you look at it on valuation, and maybe they have figured it out. i still think despite that move,
5:07 pm
macy's has room to the upside. >> i don't think the retail space is doing any better, frankly than the rest of the market you know, again, look at a lulu. look at footlocker look at these names that were left for dead. and i think the power that these companies have brands and established businesses that aren't going away is why the retail space feels like it's outperforming. but some of these names were so oversold and i think it was disproportionate to the underlying line. >> why are they making their money. but if it was nike, people were focusing on north america was going down well, the actual story there was the growth outside of america which was growing for nike everybody's got their own individual story lulu is a great example of that. male started getting after the men's side of things >> you're not afraid >> for myself, yeah. >> the undergarments >> retail ran, you hit it on the head everyone thought that amazon was going to crush retail. that didn't happen everyone thought we were going to have the border adjustment
5:08 pm
texas there are a number of headwinds that have died down and that's another reason why it's a tailwind for these companies. >> and good companies have figured out how to compete it doesn't mean necessarily they are beating amazon i think some of them are but the really efficient companies are going right after amazon online, and that's why they're winning. our next guest says there are three stocks to buy right now. todd gordon of trading >> hey, melissa. we're looking at the weekly chart. over here, this is a long scale. when you're doing your technicals at home, it's really important to switch over to that that's a $25 move here this is actually more like a $40 move here. but it's the same distance, okay so just keep that in mind. it stretches out the trend line. when you do draw trend line on the log scale, you're going to see that we have held support around the $80 level in walmart. technically with all the big selling we've seen in walmart, it's held. as we get off the weekly, head
5:09 pm
over to the daily, keep in mind that trend line, it's going to come in right at about this angle here and what you'll notice is we approach -- and if you really look at the characteristics of the bar, really strong selling here and walmart has kind of petered out. and that's evidenced by the relative strength index, which you're going see there is a low momentum reading here and a higher one here. we've made it a higher low where price continues to make a lower lower. just like when pete stands up here with the baseball you throw it up in the air, it's going to continue to go up but at a slower rate of change that's tsang thing here except upside down. so we've lost momentum on the way. i like walmart into the $80 level. next one up, ulta. we have earnings tomorrow. looks very solid this is a beautiful elliott wave pattern. one, consolidation in two. beautiful move up in three and it look likes this little consolidation happens to be wave four heading into earnings i think we're going to have a wave five
5:10 pm
push up. that's going to put you up to about 275 for earnings tomorrow if it's a strong number. next one finally, also you guys were just talking about it was costco also earnings tomorrow, same thing. a beautiful consolidation here, just around the $200 level showing really good relative strength as the overall market showed a lot of volatility again, earnings expecting a $5 move up here i put this earnings trade on here at the close for that $5 move up in costco. so i'm long tomorrow for earnings. >> obviously, you like these three individual stocks. but i'm going to ask you the question i asked the panel how does the sector look comp e compared to these individual stories? are we just pointing to various idiosyncratic stories that make the stocks look good, or is the sector as a whole doing well >> i feel it started out as a short recovering rally you were talking with amazon taking over the world with that short recovery momentum started to pick up,
5:11 pm
market psychology started to change the fundamental narrative, the thesis started to change and it looks like a sector as a whole which started on poor fundamentals has begun to improve, whether the fundamentals improve and can take amazon, i'll leave that for you guys to decide but this rally does look sustainable for now. >> all right, todd, thank you. >> thanks, guys. >> todd gordon of trading >> you look valuation why weiss, 11 times forward earnings. flushed down to 200 last summer. held jim cramer had the ceo on in march, $650 million buyback. another report tomorrow, i know you're going to see a big move i got to tell you something, valuation wise, i think they figured out is over done. >> financials did not recoup their losses >> let's not forget yesterday in the biggest move in the ten-year since brexit the algorithms are so connected to that.
5:12 pm
they're looking at the ten-year. algo starts selling the financials i bought a financial today i might tease that out. >> you just did. >> so i'm not going to mention that one i'll mention it later. how about that a.k. steel, i did buy a little bit of that. tim and i were talking about the steels beforehand. we saw some activity in there. i jumped on some of that i also bought nike and celgene in the biotech world. >> i dabbled in financials and looked at jpmorgan and said these are the best of breed, guys that haven't traded through the 200 to go all the way back to brexit. it's held that level yesterday's reaction was just that bonds came into the sell-off especially well, well -- sorry, into well oversold we even had an outside reverse until the dollar today and i think that the dollar is going to hold ground here. >> two names that were oversold, two names i bought snap, tesla held on to them. finally showing signs of life. >> all right still ahead, a global oil
5:13 pm
raging around the world. rebecca patterson says there is one market that is a hot mess and one that is a hot trade. she will reveal the trades plus, pete najarian stepping up to the plate. he mentioned he has one under the radar bank stock he thinks is about to take off he will tell us the name in the fast pitch tese live from new york city's inim square. much more "fast money" right after this this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades?
5:14 pm
great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... over 200 booking sites find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.
5:15 pm
hey, want thedone.est internet? and now, xfinity mobile is included. you can get up to five lines. you can save 400 bucks or more a year, which you can spend on a funk-tastic music video. ♪ dance party boom. ♪ simple. easy. awesome.
5:16 pm
come see how you can save $400 or more a year with xfinity mobile. plus, ask how to keep your current phone. visit your local xfinity store today. welcome back to "fast money. we have breaking news out of washington, d.c. let's get to john harwood with the latest john >> melissa, dow jones was reporting that the trump administration has decided to end the exemption for our allies at the european union for those steel and aluminum tariffs he announced some time ago. 25% on imported steel. 10% on imported aluminum now i've not been able to confirm this independently with the white house. i've not heard back from them, but this tracks what an ambassador from one of the eu countries told me just a few days ago, that they fully expected the administration not to extend that exemption for eu steel and aluminum so when you combine that with
5:17 pm
their announcement about china earlier today, you see that trade war which steven mnuchin, the treasury secretary said some days ago was on hold, it is no longer on hold it is fully engaged. we'll see what sort of response we get from the european union, barring some last-minute compromise between the united states, the trump administration and the eu . >> all right, thanks very much john harwood and take a look at the moves in the after-hours session. tim? >> think about the roller coaster u.s. steel has been on obviously rallied substantially into the announcement 232. got a boost that day and then traveled down 30% because people remember a couple of things. they remember the bush steel cuts on tariffs and what happened to steel companies. and the assumption is it's kind of like how they treat the airlines they assume give them an inch, or give them a mile, they'll hang themselves with that inch, however you want to say this these are guys that haven't been trusted with capacity. meanwhile, fundamentals in steel sector are fantastic right now and i actually think u.s. steel is a buy without that it's a buy
5:18 pm
with this news and i'm long the name. >> it sure does help we did see that paper. we were talking about a.k. st l steel. well talked about it a minute ago. but that, cleveland cliffs and u.s. steel option paper that means shorter term people are just looking for any kind of a bump maybe this is the kind of bump they're looking for. if they get it >> if you are in the trade works you take it off? >> time in the trade and cliffs. >> would you take it off on the 3% move? >> no, absolutely not. >> why not >> thing is more. >> to tim's point, every time they announce one of the headlines, they run 10 to 15% and come back. in i would say you probably have another 10%. >> a few things. give them a mile, they hang themselves wants inch. the mixed metaphors flying all over the place. >> that was the genius >> they're all over the map. good point by hash tag steel stocks were ripping into march. the announcement came out. u.s. steel was $44 traded down to 33. but the fundamentals of these companies did not change
5:19 pm
cleveland cliffs is back above 8 bucks. an analyst put a $10 price target on it if you back all this noise, the fundamentals matter. and the valuations are ridiculous i think it could trade higher. >> because of the volatility that we're talking about here, and everybody mentioned that, that's why the options are the better way to go right now you could be facing yourself feeling like you absolutely bought the top we all of the sudden see a sell-off it's the option. you can actually swallow that. if it's in the stock. >> not with a.k. steel it's the same price. >> steel prices are $900 a ton, folks. this is such a great environment for steel companies. >> concerned about the flip side scenario and that is the people who use steel. well heard that in the beige book that they're seeing increase, right? price increases on commodity cost, steel and aluminum specifically and here we are talking about the great environment for the steel producers. not a good environment for the steel buyers >> i tell you what, it's still a fantastic environment when you think about the sprinkle production numbers
5:20 pm
the bottom line lined we heard from the beige book there is a lot of industrial work they're having trouble filling jobs in this country ultimately that is going the play into it buyers are very concerned about all the trade talks. bottom line here, this is a great environment for these guys second half for u.s. steel will be unbelievable. >> all right coming up, italy roiling stocks around the world and there is one global market that a top strategist is calling a hot mess it might not be what you think rebecca patterson joins us right after the break. i'm melissa lee. you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here is what else is coming up on "fast." >> the bank stocks have been getting crushed, but pete najarian says one of them could rally 20% over the next year he'll give you the name. plus it was the question every crypto fan wants to know >> is xrp a security or is it a commodity? >> we'll tell you what the ceo of ripple said when "fast money" returns. benjamin franklin captured lightening in a bottle. over 260 years later, with a little resourcefulness,
5:21 pm
ingenuity, and grit, we're not only capturing energy from the sun and wind, we're storing it. as the nation's leader in energy storage, we're ensuring americans have the energy they need, whenever they need it. this is our era. this is america's energy era. nextera energy. when you buy a house, it is easy to imagine what you will need... how you will use it... ...and how you will make it feel like home. when you get a mortgage, it is harder to know what to look for and how to get it. changed that. we made our mortgages transparent, affordable, and fair. spend your time imagining, not stressing. find out how much house you can actually afford, in just three minutes, at
5:22 pm
5:23 pm
welcome back to "fast money. we all know the saying there is no place like home well, if you've been looking at how markets around the world have performed this year, those words may not be too far from the truth. breaking it down someone who is truly an international man of mystery, don chu, headquarters back at details. hi, dom. >> i may or may not be an international man of mystery, melissa, but there is a mystery around whether the u.s. is the market of choice when it comes to times of stress sure, we know that our stock markets fell yesterday but on a relative basis that >> did better than some other developed and developing markets out there. and while the broader sp 500, that pullback hasn't been as bad as some other parts. the nikkei 225 in japan has fallen by 9% since its most recent high back on january
5:24 pm
23rd brazil on the emerging side is down around 13% since its high and the ftse mib in italy, the stock market perhaps closely tied to all that political turmoil is lower that was on may 7th. that's the large cap side of things should we even mention that the russell 2000 small caps hid another record high in trading today. and by the way, it lost only 2% from its previous record high given all the turmoil in markets the past week. the s&p 400 mid cap index is less than 2% on recovering its own record high. now there is little doubt that in the event of a market crisis, stocks in the u.s. would take a hit. there is a debate about whether or not this the end, melissa, the u.s. stock market is the risk asset market of risk should things hypothetically go haywire. back over to you guy, thank you, dom. dom chu.
5:25 pm
let's bring in rebecca patterson. rebecca says the u.s. is the best place to be right now rebecca, was this also prior to what was going on in italy >> yeah. so we've been overweight at the u.s. for two reasons right now it's because of the tidal wave of stimulus coming at u.s. companies and the economy which we think is largely but not necessarily fully priced and then there is the defensive element, which is what dom was getting at what we found over the last few decades, is when you have market panic, even if the u.s. causes the panic, the u.s. tends to outperform some of that is americans bringing money home in times of stress and we bring a lot of money. and it's the capital repatriation lifts the dollar. if you look at currency in total return, that stronger dollar plus liquidity of the u.s. market tends to make it a better performer. even if it's '08 where it was the u.s. that led the charge >> in terms of the tax reform not being fully priced are, there specific sectors that you're looking at that you think really are not reflecting? when do you expect that? is that a third quarter story?
5:26 pm
a fourth quarter story >> i should be clear and i probably misspoke. it's not just the tax reform it's also the february spending package. so the $300 billion that is going into the economy over the next two years, a lot of that goes into government agencies. and so you think about it. if department of defense or department of labor gets a check saying here you go, go spend it, it's not going to go in the ground on day one. it's going to take months, maybe even quarters before they start getting that money to work we've seen that historically as well thing is a good chance q 3, q 4, even into early next year, you're going to continue to see some of that feeding into the economy. >> and as one more layer within the u.s., do you like more domestically oriented companies or multinationals, which could actually be -- i don't want -- well, affected by whatever is going on abroad. >> i still think that the global economic backdrop is pretty solid, broadly speaking. growth might have slowed a little bit this year versus the end of last year, and certainly this quarter versus the first quarter. but still, if you look at purchasing manager indices,
5:27 pm
business confidence survey, leading indicators, we're still looking pretty good globally so i don't mind having global exposure for the stimulus and the defensive reasons, i like having some of the domestic names. >> well, rabie kraeb rk, rebecf "fast money. rebecca likes to play games. well will play hot mess or hot trade. tell us if it's worth a buy. >> do i get to spin a wheel? >> not at this time. you got to work yourself up to that. >> all right >> hot trade or hot mess first up, italy. it is down 10% this month. hot trade or hot mess? >> we're going to know over the next couple of months, but i think it's messy enough that i would prefer to put my money somewhere else right now ooh! >> the rules hot mess, hot trade. >> that was me >> don't go there. don't go there >> lighten up. >> moving on
5:28 pm
give her another chance. >> it's a mess because if there is a decent probability you get a populist government. if you get a fop list government, it's going to be very hard for the ecb, the central bank to continue buying italian bonds as part of its quantitative easing program. if you don't have the ecb keeping yields low in italy, italian banks are going to have a hard time. >> wow, she show you'd hot mess. she show you'd. >> she can play the game >> china hot trade or hot mess? >> hot trade, and this is why i think that i know we're facing a lot of trade anxiety right now. but i look at china with two angles here. one is that the government understands its stability, relies on growth that keeps the people happy you'll see the government taking fine-tuning actions to make sure gross slows only in a moderate way. there is always risks. we know that overall i think you get moderate slowdown in growth that's good for the consumer but on the technology side, made in china 2025, we know america, some americans are very nervous about this
5:29 pm
there is a lot of angst around it but when you have the chinese government pushing these tech companies and saying you play nice in the sandbox with me, president xi, and i will let you thrive and prosper to me having the government at your back instead of in your face is a good thing >> yep this one is interesting. >> okay. >> venezuela >> oh. >> up 57% this month of course the currency is collapsing maybe the government is a mess but is the trade hot is in is it a hot trade or a hot mess? >> i think it's a sad mess, no pun intended here. it's gone beyond -- >> awful sound. >> i know it is. we need new sound effects. >> i got no control. >> moving on you have hyperinflation. you have a currency spiraling out of control there are opportunities to buy some of these opportunities like italy 2012 you had a catalyst it was easy with the president
5:30 pm
saying i'm going to do whatever it takes brazil, 2016, you had a weak currency, a weak statemenock ma but there were catalysts what's the catalyst in venezuela that is going to make you confident you've turned a corner i don't see one any time soon. >> remember car, thank you >> you're welcome. >> for playing with game with us. >> i'll learn. i'll get the rules down next time. >> she did a great job >> you took her down on the first one. >> come on. >> it's all good it's all good. >> rebecca patterson of bessemer trust. >> it's fun to agree with rebecca, especially when she i think is dead-on first of all, italy is not cheap enough she talked about 2012. it will i got to seven times it's not cheap enough for me i think this noise hangs over us, and 50% of that market cap is energy and banks. i don't think so i think china, look, look how reville sillient allibaba have been while markets are down 10%. emerging market tactically, if
5:31 pm
the dollar holds here, there is a short-term trade at a minimum, and you'd probably be right to hire >> my concern and rebecca is gone, so i won't bring her back into the conversation, but my concern is the problem with european banks, specifically deutsche bank, but others, barclays, is it systemic or just those banks specifically i tend to think there are bigger problems and the stocks tend to believe me as well deutsch bounced on what was a pretty good tape i still think there is pain in european banks. >> the only thing i buy off u.s. territory is asia, and i play that through alli baba a bunch of price targets much higher than $200 stay in ali baba >> i totally agree with steve. some of the names in the asian markets. but i don't see any reason why we go the other places that everybody brings up. why would i want to? >> how many strategies have we had on cnbc? we like europe europe is cheaper than the u.s. in valuation base circumstances right? blah, blah, blah that seems like it was a
5:32 pm
consensus that didn't work thought 2018 >> it did not work out and has not worked out so far. they're all trying to find the bottom, right? i think that's the problem they're literally fishing. >> it was cheap for a reason, and now they're finding out the reason. >> it's about the fundamentals. >> one trader made a big bet that the emerging markets are about to heat up our very own dan nathan joined us from the code conference in rancho palos verdes. >> that was interesting the tracks of emerging markets you're backing about baba a lot. baba shows great relative strength but the etm is down from the 52-week highs made in january. put volume today was pretty hot. two times that of calls. and like you said, mel, there was a bullish trade that caught my eye when the etf was trading 4560 there was a fire of 13,000, the june 29th quarterly. paying about 32 cents for those. those break up even about 7% on june 29th close.
5:33 pm
when you look at the eem, we're talking about hot mess or is it a buy. i don't know this chart is pretty interesting. look at the one-year look at the downtrend that it has been in since late january look at where it held yesterday at the exact bottom back in february and then if you took a look at the five-year chart, look at that downtrend where that $45 support intersections with the uptrend from the 2016 lows this is a pretty critical bounce that it had today. and so if you're playing this for a hot trade, i think it makes sense to define your risk and play with calls. >> i don't think it's cool when they ask for the stamp when they're not a part of the game and they want the play the game. he brings himself in >> hot mess. he is ready to go hot trade. good for him >> you'll get your stamp there it is. >> he got stamped. >> you got stamped >> wait a minute i want to play one more, one more guy's shirt-tie combination. [ laughter ] >> are we going to get the stamp? >> he can't even see guy
5:34 pm
>> pretty good shot. >> that was great call >> thanks, dan dan nathan from the code conference for more "options action" check out the full show friday at 5:30 p.m. i think that sound effect was a dying cow. coming up, is ripple better than bitcoin ceo making the case for his coin on power lunch earlier today plus, pete is bringing the heat. getting ready to pitch the one bank stock he says about to rally 20%. what it is the name when "fast money" returns. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy.
5:35 pm
what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
5:36 pm
5:37 pm
welcome back to "fast money. time for an instant replay back in april 2017, pete said jpmorgan was going the break out. >> i like the strategy i like companies that are buying back their own stock this is not financial engineering. they find their stock to be one of the best places to put their money, and it's worked pretty well >> pete was right. it was a good place to put your money. jpmorgan shares up 24% since then. >> boom. >> pete, you're still in this. >> i love this name, but i'm not in it. i think there is better opportunities other places >> for a year and a half
5:38 pm
>> in and out, in and out, in and out. >> there are certain stocks that are years now in my portfolio. jpmorgan is not one of them. i love it. i think jamie dimon is unbelievable i love the fact that he bought his own stock. but after that rise, i said see you later. there is other places. >> you hit it out of the park. so let's hear your next pitch, pete. >> well, i got another one of these places that i think there is a better opportunity than jpmorgan back then i'm going pitch you guys amer prize. it doesn't come up a loss, but what it like about this company, we always start with the management when you look what they have done, that's the same ceo since 2001 by the i welcome back, guy, this is a company based in minnesota. >> sure it is. what a surprise. >> yes, i know that shocks all of you guys. but the ceo has been there since 2001 he has been directing this company. in 2005 it was $35 stock when they were spun off from american express. then it went up to 180 here today it's trading around 140. had a very good day today. but i like what the management actually offers as the company
5:39 pm
i'm going to come back to them in a second. the other thing is the fundamental story. this is a company that has bought back 31% of their outstanding shares in the last decade that tells me a lot what they're doing with their money they have incredible cash flows. look at this trades at 10 times p/e this is a company that i think when you look at the dividend stream as well, everything seems to add up to why don't i own this name. so today i decided to buy this name strong earnings growth strong revenue growth. and one of the metrics they didn't bring up, but i was talking about the c-suite that i'd like to point out. the ceo on may 10th bought a million dollars worth of stock the cfo on may 2nd bought $500,000 worth of stock. so these are commitments at $134 and $136 if we can pull up the chart real quick, i'll show you where the stock has been all over the place. you can see this high level. now the financials obviously, we've seen some this pullback. this is a stock that was trading just over $180 a share got down here. i think there is still opportunity.
5:40 pm
it just started to move once again. and i think because of that, this is a stock that can go to $170 a share. >> pete, it's down you just nailed what my concern is it looks like a descending trend line there, if you look right behind you and it's downtown 70% year to date it's below all the moving averages it just bounced off its 50 day it's still below the 50. so why should i feel bullish about it when it can't get positive and it looks like it's rolling over on momentum >> i think it's like the rest of the officials quite honestly, steve. we talk about the other financials this is primarily asset management 70% of what the business the other 30% is life insurance. i think from the asset management side with a little more volatility in the marketplace that we're starting to see now, i think they're going to be able to deploy this in a different way and start to move back up if you look at the earnings growth projections going forward, they are stair stepping higher, higher, higher and i think because of that, this stock is way too cheap right now. >> time to vote. are you buying petes a pitch on
5:41 pm
amerrrise? tim? >> i put a pitch because he likes to move notes around like i do the point is amerprise i'm going to buy, pete. >> i'm going to say sell, although it minutes a me to say sell but if it jumps about its moving average 142 and holds that level, then turn buyer. >> i mean, american gothic not withstanding with tim. see what i put there, mel? i am that's much more clever than his pitchfork. and i'll tell you why. although their assets under management have not really grown all that much, look at the eps growth to pete's point, the last four quarters have been exceptional and i do think this stock should trade mere towards 190 >> two buys, one sell. are you out there buying pete's pitch? you can vote at cnbc fast money. we'll reveal the results later on in the show plus, we're heading back out to the code conference in
5:42 pm
california carl quintanilla is there. he has an interview with restaurant mogul david chang coming up. >> code is all about tech and media. you mix in media, aimdimeate fod you have a recipe when we're back in a couple of minutes.
5:43 pm
5:44 pm
♪ california dreaming welcome back to "fast money. you're looking at a live shot of
5:45 pm
the code conference in rancho palos verdes in california where some of the biggest names in tech and media are gathering carl quintanilla is there sitting down with netflix star david chang. carl, take it away. >> that's a good way to put it restaurant star and netflix mogul. or some variation of the two david change, it's great to see you. thanks for being with us today. >> thanks for having me. >> what an amazing day you've been at the intersection of food and media for a while now. and everything that this conference is about how competitive it all is. so how are you making decisions on who to dance with when the opportunity arises >> man, i think part of it is someone that's going to give us the freedom to express ourselves and n the best way possible. and when we talked to netflix, that was a no-brainer. they gave us carte blanche to create the best product possible that's the best way i can describe it. partners that want to be committed to excellence. >> ugly delicious is a huge hit.
5:46 pm
did they give you any metrics at all on performance >> i can't talk about it because i don't know that much about it. they're very tight-lipped. but they have been incredibly supportive and we're having ongoing conversation but i think hopefully there is going to be good news around the corner. >> every conversation about netflix is followed by the amount of money they're spending on original content, or even just the number of shows they're launching per year i think it averages out one every 12 hours in the course of the year so how much do you think about -- am i being placed in a good space by the algorithm? am i being cure rated the right way? are the right people seeing me >> you know, that's a question i have with my culinary team as well, with increasing competition in basically every part of life, right, i think quality content will win so we have to make the best product possible and worry about everything later if you build it, they will come. that's the cliche. but i do believe it's true. >> you've done some work lately with amazon. you a sauce you're distributing
5:47 pm
through them, through whole foods. eventually costco and walmart too. does that make you nervous >> yeah, i'm getting nervous just talking about it. you're right, i did! >> package goods are a challenge. distribution is hard >> yes you know, we were making the sauce ourselves for a few years. and again, when you find a partner that cannot only make it better than you, but has the distribution, that was a no brainer to team up with kraft heinz. and then have amazon as the exclusive partner to do the initial launch i can't write a script that is more favorable for us to get what we believe is a great product in som sauce >> different working with amazon than netflix how would you say that >> one, man does retail and the other makes content. i guess they're the same but i think i'm the wrong guest to give the answer >> really quick. the me too movement has wrapped up some celebrity chef. >> yes. >> what do she was say about that >> i think we're in a period of still listening and being
5:48 pm
patient because i think the chefs want to have a dialogue as a whole. the culinary industry needs to improve, right we need to get better. my own company, we can all strive to get better to create a more fair, diverse, inclusive workplace. and for a long time, the culinary arts was sort november the dark ages. and we're in 2018, and it's time everyone grows up. >> finally, a buddy of mine here was saying that reservations for the l.a. restaurant impossible to get it's like a ticket, buying a concert ticket you go on. they're wiped out for the month. how do you think about that? do you consider it lost business how do you manage that sort of tight capacity >> well, i mean, first of all we're thankful there is the demand and yes, there is always ways to monetize that. but i'm going to hold off on doing that >> you mean kitchens >> i think reservationsis a hot ticket in restaurants in tech right now. doing the prepaid stuff. there is many great companies
5:49 pm
that are doing it. but just trying to figure out what's the best contract with the guest. and we're just trying to collect as much data as possible before we make that decision. so, yeah, it's a long process. >> you got your hands in so many things we can't wait to hear what you're going to say on stage david, thanks. >> thanks, carl. >> david chang of momofuku >> carl quintanilla join uh us from the code con in california. brad garlinghouse calling ripple better than bitcoin today and answering the burning question on every crypto trader's mind. is it a commodity or a security? find out what he said when we come rhtacig bk. how do you know you made the right call... just do.
5:50 pm
the light beer you've been waiting for has arrived. lower carbs. lower calories. higher expectations. corona premier. you mighyour for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember.
5:51 pm
5:52 pm
we're seeing customers like western union, money gram, they're leaning in and using our tools to solve a payments problem. and this payments problem is measured truly in the trillions of dollars so while we're on mile marker one of a 26-mile marathon, we're definitely past the starting line >> that was ripple's ceo brad garlinghouse on power lunch earlier today when i asked him about the future of ripple and how xrp, the cryptocurrency could be used. according to bk, the biggest thing investors are missing about rip areal. bk is at the plaza to break it down >> hey, melissa, thanks for that brad had some interesting things to say and i thought it was really important to break down what he's talking about and what the opportunity at least that brad sees, and ultimately could be
5:53 pm
the bull case for ripple so let's break it down talking about the size of the payment markets. quoting the mckenzie it's about $155 trillion is the size of the market so your total addressable market is massive right now if you take a look at what it costs to move $155 trillion, it's about $31 billion. roughly around 20 basis points is what it's costing you so if using ripple, and this is from ripple's stats, you could save about 60% well, how do they do that? you use the ripple ledger plus the ripple currency. and that's the key to this 60% right here the reason why using the ripple currency, if people start doing this, is the way you save is because right now banks have to hold foreign currency everywhere in the world it's very cost intensive to have that inventory around the world. they can simply replace that foreign currency with xrp, and they can save a lot of money on
5:54 pm
that so let's take a look at what ripple has been doing. obviously, it's been down. i think we have a chart here yep. obviously down from the peaks up here, right? the whole crypto market has kind of gone sideways here. but what does louise lamotta say? the bigger the space, the higher in space in my view, you have to start having people using the xrp in substitute for foreign currency, but that's the utility that's the use case for rip typical currency if that's the case, then that's a pretty nice base right there >> shall we invite bk over >> oh, come on >> have to >> come on over, bk. >> the water is fine. >> ryan will bring the chair in. thank you, ryan. >> remove the sharps >> that's what i was trying to get at with brad on power lunch today. and why hasn't xrp done better they've been signing up a all these contracts. all these financial institutions are getting on board using the ripple ledger, and yet the currency itself is not reflecting any gain in value so can you actually the old
5:55 pm
saying i'm a believer in the blockchain but not in the cryptocurrency maybe it looks like that's true. in the case of ripple. >> the knock on ripple is that you can use -- the knock on ripple if you're a currency investor is you can use the ledger without the currency. that's why it has to have a currency the purest cryptocurrency will say something like the ripple ledger really isn't decentralized if it's only being used by the banks. adding that currency in makes it decentralized and the purest cryptocurrency would say you have to have the two to go in to together. >> how is it not decentralized if they sign up, it is only because it's being used within a company? >> it's only being used within 70 banks or one hundred banks or something like, that and they're all just verifying their transaction. ultimately it's just a big database the power where cryptocurrency comes is using that token because then you can really decentralized the software. >> are we waiting for ripple to be delisted on a coin base for
5:56 pm
the next big move? it's the regulation that is gumming up the works when it comes to ripple and some of the other coins out there right now. >> i mean, and to that matter even the ico space, right? >> right >> we've had this regulatory uncertainty. the sec is taking a very thoughtful approach but there is still uncertainty out there. a lot of have gone offshore. you don't see listings until there is some clarity around that hopefully we'll get that by the end of the year. >> and this goes security versus commodity here in xrp. all right, beaks, thank you. thanks for coming in and coming over to the desk can't get enough crypto? head to trading robert missiler just made a bold prediction about bitcoin's future and it ain't bright that's right now on up next, ameriprise is up. we'll find out if at home are buying pete's pitch when we come right back
5:57 pm
finally. hey ron! they're finally taking down 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. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.
5:58 pm
but as it grew bigger and bigger,ness. it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet?
5:59 pm
ameriprise might be an unfamiliar stock to you, but what is familiar toni braxton's break my heart. sorry. the pain and sorrow, because america ain't buying his pitch sorry, pete. >> that's okay >> time for the final trade. >> my final trade. >> tim >> tactical eem get it, don't stay long. >> snap. keep buying it. >> guy >> the senior girls from the academy of st. elizabeth's and
6:00 pm
convent station right here and the faculty. wave you're on the tv right now congratulations, ladies. freeport mclemoa freeport "d >>mamoney" with jim cramer starts right now 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. all right. what was that, what was that thing with italy again yesterday? a trade? euro mila


info Stream Only

Uploaded by TV Archive on