tv Fast Money CNBC March 27, 2019 5:00pm-6:00pm EDT
capped we've only had a 2% pullback in the stock market it's not as if they have fallen apart. >> always keeping it in perspective. tomorrow don't miss an exclusive interview with margaret vestager, she just fined google for the third time, going after big tech again. >> we look forward to that we also look forward to "fast money" which starts right now. "fast money" begins now. live from the nasdaq market site in times square, i'm scott wapner for in melissa lee. ahead on "fast," the s&p on track for its best quarter in years and a handful of stocks have gone parabolic. we'll tell you which ones have more room to run. check out lululemon soaring after its earnings report tonight. that stock up more than 100% over the past year we've got those details coming up we start with a big reversal for stocks today the dow swinging more than 300 points as the bond market continues to wreak havoc on wall
street the 10-year yield sinking to its lowest level in 14 months as the yield curve continues to flatten. even utilities falling today should you shake off the growth fears? and what is safe to buy? guy. >> again, welcome back day two of this week i know you're playing hurt, so kudos to you. >> thank you thanks for looking out. >> so are the growth fears overblown? well, we talk about them a lot but are they overblown no, not at a vix of 15 and not when the s&p 500 is within 4% of the all-time high this fall. the market doesn't seem all that concerned yet. what i will say is this. the fact that we continue to seem it roll over the 2800 level is concerning. the vix is too cheap given this environment and i think stocks come under some pressure with that said to answer your original question -- >> it's about time. >> what was that >> it's about time >> he's playing hurt but he's waiting for an answer. >> he's still got it. >> i'm not that hurt.
>> obviously not that hurt. >> i still think energy could be bought and specific areas, big cap energy, exxonmobil i think some of the names tim mentioned, devin and cabot oil is a buy and i think health care goes higher from here. >> i would agree with that i would just take my glass full to the half empty. what's going on with the 10-year also may some of this, today's news not the only move in the 10-year. obviously we've been wrestling with growth fears. stephen moore, do we have a loose cannon the fed wants to cut rates. >> it's not a rumor, he had it. >> but the rumor that the fed would go through and do this, you're right people are contemplating whether the fed cuts once or twice the fact we're doing that is very different than a month ago. the things i'm encouraged about. today's trade data indicated exports were up significantly to europe for everybody looking for a rebound and some response to, hey, i think we're through the worst of the growth fears, i think that's something some of the risk indicators you could be looking at, u.s.
leverage index acts fine the places where you really get concerned, emerging markets and semis have been battered over the last five days caution there. >> dan, as long as rates, though, remain low and at the top of the conversation, doesn't it put somewhat of a cap on the rally? >> it might, but i think at this stage of the game with rates going where they are from the 10-year yield at 3.75 to where it is, it looks like it's going to be to 2%. that's not particularly bullish. so he asked me, not you. can i make my next point so the last time we had this situation was late 2015, early 2016 we really did have a serious global growth fear about deflation, about rates just going there. this is when we started to see a lot of sovereign debt go negative what outperformed here in the u.s. it was the maga trade, you call
it faang it was also a lot of these cloud names. i think it's a different period right now. i'm looking at adobe, i'm looking at salesforce. so i guess my point is one thing to say high growth, secular trends >> i think what you're doing is you're always looking for quality. that's where everybody starts. when you look at the interest rates and look where we were thr3% now we're at 2.4%. what does that mean? i think you look for quality the first ones you look for, you look for quality, free cash flows and dividend yields. >> give me some of them, then. >> i looked through my list right now of what i own stockwise, scott almost all of those fell in the category of they have growth, they have a dividend yield, they have quality target, home depot, lowe's
kinder morgan. so you're still exposed somewhat to energy. >> but home depot and lowe's are exposed to a slower economy, the housing market that's been -- >> if you believe that i mean we are weakening a little bit in the economy, but are we slowing to a stop? no do i think the spring season will be strong yes. i think we'll see home depots and lowe's outperform. >> i think in an environment where people are less optimistic about what's going on in the economy, people are going to be fixing up their homes. they have jobs i think they'll spending money on their houses. i think home depot has counter cyclic cal cyclicality to it. nike great free cash flow yields apple, great free cash flow yields those are high quality companies here the world is not falling apart overnight. and i think as much as we want to believe that could be the
case based upon a bond market move that's dramatic and scary, it's not what's happening. >> it's not like the data overseas x the bond market here is robust. these economies, whether it's germany and other places around the world are undoubtedly slowing. >> they are undoubtedly slowing. we can make an actor germany is the first of the european economies to go into recession look at cpis out of europe i am encouraging by, if we think the trade war was essentially a supply side issue, you should get a v-shape recovery if we think that the trade war is gone do you guys believe if we didn't have the trade war the economy would be in the same place it is right now? >> no. >> the question is how much better, if it was better, would it really be you're saying you get a v? >> i don't know. maybe the v starts up but then it stalls. >> the best case scenario, we have an s&p 500 up 12% on the
year it's where it was seven months ago so we did have a v recovery in the stock market, but we're still well below those prior highs. i'd say the best case scenario is the idea of thinking about how does the second half if we do have some sort of trade deal in the early summer, because that's the trade that you really want to get on here. you'd like to see the stock market actually pull back. you'd like to see sentiment get a bit worse. you'd like to see when q2 guidance comes out, you'd like to see it downbeat because that's the market you want to buy for what is most certainly going to be some sort of deal for the second half of the year. >> i know we all pay attention to the s&p 500 that's up 12%, whatever it might be right now don't we look at the whole rotation of what's going on in the market we're looking for the sectors and the segments in which we want to be semi conductors you just mentioned have had a dramatic pullback from where they were. they were screaming up and now there's a pullback does that mean it's over for the semis? i don't think so
i think you've got to go through each and every one of these and figure out where the rotations are and be very nimble again, it's a trading market this continues to be very much a trading market even the big boys are trading this market. i think that's why we're seeing these moves where we're seeing swings once again, up 200, down 200 in the same day. >> if you're worried about the breakdown in yields, our next guest has three high dividend-paying stocks for a breakout, chris verrone is at the plasma to break it down for us. >> today you had yields lower but utilities, even gold didn't act that well so maybe there's a change afoot here in the bond market i want to look at 10-year yields just to start. this is over the last several years. 10s bottomed at 1.30 in the summer of '16 and peaked at 3.30 in the summer of 2018. that's a two basis point move.
so a 50% retracement of this entire move is basically where yields trade right now that's an area of support. we would not be surprised to see yields bounce from here, particularly with sentiment and momentum oversold. if we want to own yield stocks, they have to be more than just yield payers this is mcdonald's, mcd. good story, good picture it has spent the better part of the last six months in a pretty tight range. we think it breaks up on its way to 190 mcd outperforming the s&p as well, so good relative trend there. i think lowe's is another example here the yield on lowe's is about 180 so you're getting a pretty competitive yield. the trend has been intact for the better part of the last couple of years. every single time it finds support, it rallies. finds support, it rallies.
what we really like is in relative terms about to make relative highs versus the s&p. i think intel is another story yield here about 250 coming out of this big base for what's been a pretty good day for the semis. and then on the other side what do you want to avoid the stocks that are only yield plays. that's altria for us it's rallied right into resistance at the downward sloping 200-day moving average it's failed several times in the past this still looks like a bear market chart to us this one goes lower. we suspect yields probably bounce here. if you're going to own yield stocks, focus on microsoft or intel or lowe's. that's where the value is. >> chris, come on over to the desk. >> sometimes what we like to do is vote. >> i don't think scott needs to be coached on how things go down here >> i'm just asking a question. don't give me the dagger eyes. chris is here, by the way. >> the producers were talking to
me in my earpiece not from over here. >> i got a little ahead of myself i'm sorry. i'll be quiet. >> bottom line, just looking for yield is not enough. >> i don't think so. i think we're in an environment where it took it from 260 to 230. they're probably oversold here i thought the last couple days or telling that you didn't have the yield groups act that well utilities were a laggard today gold was down. so what does the market already know i think maybe starting to price in our growth expectations actually maybe starting to bottom here. are we at the point where we want to start thinking what's the next trade pete, we talked about this is a very trading environment i think that speaks to what we've seen. >> two of your stocks as well, intel and lowe's are ones that you like. >> yes. >> plays right into what chris said. >> i'm curious, are some of the other names i mentioned fall into the category as well. >> if you think about the home housing space, home building
space, these are stocks that have been getting better for six months the home builders did not bottom on december 26th with th market, they bottomed way earlier in the fourth quarter. so the housing market has already been showing you that something may be getting better in that space. look at how lennar acted today lowe's, again with a 180 yield is an attractive way to play it. >> chris, how do you deal with a name like intel. intel was very defensive going into december and has been kind of less than spectacular on the way up here. >> i do want to keep in mind intel was down 25% from high to low in the fourth quarter of last year so it got shaken out with the rest of them. some of the semis were down 40s. but the stock that started to outperform in september, october, it's continued to outperform in a risk-on market the last few months. that just sounds like a leader to me. you get this back from 52 to 50 and it's pretty good area.
>> we have much more on the market take a look at some of the stocks up double digits this year next. plus check out lululemon soaring. that stock has been on a tear. and lyft set to price between $70 and $72. we'll tell you what that means as the stock goes public this week more "fast money" in two minutes. (client's voice) remember that degree you got in taxation? (danny) of course you don't because you didn't! your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you.
it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back we have a news alert on lyft which is set to go public on friday deidre bosa is live for us in san francisco with those details. >> reporter: hey, scott, lyft upping its range from $70 to $72 from its original range at $62 to $68 we will get more exact pricing tomorrow evening guys, we know that this ipo was oversubscribed very early on in its road show. there has been a lot of interest for a few reasons. first, lyft will be the first ride-sharing company that public market investors really get to play in.
also it is one of the class of aging unicorns that have been private for a very long time it's set to go public at an even higher valuation its market cap could be $25 billion on a nondiluted basis. that would put it on value with united continental so lots of excitement but lots of questions as well this is a company that has lost nearly a billion dollars last year lots of questions about the business model the company can't guarantee that it will be profitable. this is the latest pricing the debut will have important implications for uber because it is planning to go public as early as april the better lyft does, the better uber does even though it's a much bigger platform and it's invested in a lot of other ride-sharing companies around the world so the fact that it is going to be pricing higher than its
expected range is interesting. it will be making its debut if all goes well on the nasdaq this friday. >> do you want to trade this >> yeah, so what i think is really interesting is all of a sudden now coming to the public markets we have a brand new sector, transportation as a service. deidre just said it, public investors will get to play in something vcs have been playing in it is a pure play on the ride-share market here in the u.s. very different than what's coming from uber in a couple months i suspect there's going to be tremendous demand for this thing. when you talk about the valuation, let's not forget that was something twitter was at when it became public. so to me i think the growth is here, they have very solid management it is a pure play on something that we know is going to be a transformative business. it's already been a very transformative business here in the u.s. >> i agree with everything you said other than -- no, i would just say that there's limited capacity to invest in the space. i think you have a case where
i'm not sure uber gets the same look i also think people are playing relative value already i think there are issues at uber that people are not willing to look past in a much bigger company. >> my concern is the idea they don't ever see profitability boy, does that sound like snap, right? when we saw some of the other ipos are big, everybody wants them they go for snap, for instance, if they're not going to be making money -- >> pete, here's the thing. snap is not an essential company. they're doing a couple billion dollars in sales next year, something like that. >> growing users versus not growing users. >> this is a business that is going to continue to grow. we just saw uber is paying $3 billion for a ride-sharing company in the middle east the growth is global >> growth, but profitability is always an issue for me when you look at fundamentals, we are talking about that at the top of the show. you look at fundamentals, right? at some point you have to look
at fundamentals. >> if people weren't bothered with the fact amazon wasn't making a profit for many years. >> people still are. >> but you have a risk on dynamic as far as investors are concerned, there's going to be demand for rwell run companies. >> if i was lucky enough to be on this -- >> which you are trying to do. >> going from a price of 60 to 72, yes, i think it could go higher i'd be out pretty quick. >> how about icahn, remember $100 billion in a $2 billion valuation. cha-ching. >> but there's some great shows on the cnbc network all day. i was watching "squawk box" this morning and they had a gentleman talking about ipos he rates them. in terms of their rating, this is one of the lowest rated ipos he's seen in quite some time. >> based on what >> on a lot of metrics, mostly the financials that he talked
about. it's interesting the metrics were somewhere between 0 and 8 and this came in below 5. i might be off with my numbers everybody knows lyft i was actually a lyft driver for a day. that doesn't seen it's a sustainable business model i think to pete's point. we do have some breaking news on the faa/boeing hearing. >> scott, that hearing has lasted two hours and counting so far. there have been some fireworks, including one particularly heated exchange between democratic senator ed markey and the acting head of the faa over what safety features should be mandatory on boeing 737 max 8s >> senator, safety critical pieces of equipment on an aircraft are mandatory that's what certification does if it's safety critical -- >> so you don't think they should have been manmandatory, that what you're saying? >> sir, i'm saying --
>> yes or no, should they have been mandatory, yes or no? >> sir, the distinction between what goes in a flight deck and what goes out is a discussion. >> reporter: so there they were talking specifically about the angle of attack indicator. markey and about 12, 13 other democrats sent a letter to boeing's ceo accusing the company of providing safety a la carte but boeing says they plan on offering that indicator at no cost to airlines in the future back over to you. >> all right, thank you very much for that report. despite all this, airlines were a bright spot in the market today. >> the max 737 issue is actually they might actually be a little more margin friendly on the back of this and might cut some capacity the bottom line is this is a bad situation. that doesn't necessarily mean it has to be good for airlines.
sometimes these things are in the case of airlines i would a delta at the front of the line are priced as if we're in a recessionary market i think they're trading stocks i love delta 9.5 times to me is the best of breed. >> you know what's funny you look at united, you look at delta, you look at american. you say they're priced for a recession. the charts say they're about to just flush they're really bad so today those bounces was the one bright spot are off of really cokey support levels delta looks like a massive head-and-shoulders top to me there's something else going on in this group that's kind of evil here. >> that's been for a while the interesting thing from the bo boeing perspective is 40% of the profits are coming from the 737. >> it's the work horse jet. >> and citi had that call today,
either a $500 stock -- 5% shot that it goes down to 220 so they're playing some of this, they're playing it both sides. so small to the downside in their opinion and obviously looking much more upside. >> quickly, southwest air to me probably has the most to lose. it was up 2.25%. i think they have 35 or 36 of those planes now on hold on sitting on runways getting inspected. what's the point valuations are interesting southwest is a little more expensive than delta but the fact that it did well today leads me to believe that it continues to rally on earnings. >> for more head to cnbc.com here's what else is coming up on "fast. >> trade it. >> fade it. >> fade it. >> trade it. >> a handful of stocks are breaking out as the s&p has its best quarter in a decade the traders will tell you which ones to trade or fade. plus, want to know how to
welcome back. the s&p on track for its best quarter since 2012 and a handful of stocks have gone parabolic. check out chipotle, ulta, xilinx and hess all up 40% or so this year we thought it was the perfect time to play -- >> trade it or fade it >> that's right, timmy's favorite game, trade it or fade it let's get right to it.
guy, ulta beauty, trade it or fade it? >> you're a sports fan so i know you're not feeling well. >> i'm feeling great. >> you're a washington capitals fan. if you would trade alex ovechkin it would be because you don't want him anymore i just want to bring that up because i know you're not familiar with this game. trade ulta boeauty. this stock has been parabolic. you look at the quarter. ridiculous quarter in terms of comps. sales growth was close to 20%. margins continue to hold in there. this program they have that keeps people in, everybody feels good about being in ulta is firing on all cylinders. quite frankly at 23 or so times forward earnings, it's not crazy expensive, so i say trade it. >> relative to themselves, this is a consumer products company, i'm not sure how much pricing
power they have. i think it's more expensive than that i would be fading this stock we don't need the sports metaphor i think the stock to me in an environment where it sounds like you guys think the consumer could be under some pressure, not sure why you want to be in cosmetics discretionary. >> i think you trade it because the free cash flow is there. we break down all these stocks and the fundamental story as well so it trades at 23 times and what's the growth? giddy up >> tremendous growth. >> okay. dan, you're up next, chipotle, 62% in 2019. trade it or fade it? >> i think you fade it here. >> what a game. >> i'll tell you why in 2015 this company printed $15.40 in earnings and saw that evaporate the next year with the e. coli stuff. the next year they're supposed to get back to peak earnings $12.50 this year the stock is almost there.
trading about 56 times this year's expected earnings, which is expensive in its history, especially when it's getting back up to this earnings ramp. to me i just think if you have not been in this trade, you're not getting in it now for what could be an epic double top. so i'm fading this one, i think you would say. >> i agree with dan nathan why do you have to be that way seriously, everything has to be confrontational. i agree with you i think you're making cogent points the double top is 7.50 july or so of 2015 45 times forward earnings is ridiculous but the valuation has been ridiculous the last $100 so you have to ask at a certain point you've been wrong. i've been trying to fade this stock but i agree with dan, you could have the mother of all double tops and it comes into form -- >> oh. >> what's oh
>> you said mother it's been a burrito blowout for sure. >> thank you. >> tim, ge up 37% this year. trade it or fade it? >> i'm going to trade it ge is up 37% after a plastering in 2018. what's going on? between the sales and the ones we outlined, $40 billion in spinouts and wow tech and biopharma, you need it it's really about balance sheet. nothing changes overnight but i think larry culp is making change faster. i don't think there's a lot to be excited about other than the sum of the parts still make sense to me in this business if you look at the earnings multiple, it's very debatable what they're going to earn but it doesn't matter. >> is it getting whittled down you say the sum of the parts i think last month we saw when they announced that deal, are investors start to lose
patience still it's a complicated story here. >> baker hughes to me in an environment where energy is slowly rerated, i think baker hughes might be valued at a discount they don't have to go sell it. look, getting that utility, that power book into a place where it's not a loss leader but even it's running at even keel is what i think larry culp is doing. that will help this company company slowly revitalize these assets. >> i think it's the titanic. i think they're moving the deck chairs around on the titanic right now. the problem is he's not getting the prices that he needs to get. he's doing what he has to do and what he needs to do. i look at the balance sheet. you still have $100 plus billion in debt. at some point in time i think people will get more and more concerned. it's made a great run from 6 up to here. >> do you want to do xilinx? it's up almost 50%. >> this is a name that actually
i traded all the way up to 100 and then gave up suddenly i look at the stock now and it's trading 1.25. this is showing incredible growth, they're doing everything right, they're in the right sector i think you're starting to see a little bit of a pullback i'd like to see a little bit more that's why i say trade it you fade this thing, you'll be looking at this stock trading 150. >> we do trade it or fade it on the show. >> would you rather. >> we do would you rather. >> there's a production call at 4:30 we don't need another one at 5:30 let's go >> and the folks at home -- >> conference call at 4:30 we're having another one. >> power pitch we did a power pitch when it was trading at $88 dan, you were so mean to me -- you're mean to me a lot but i think it continues to rally. coming up, check out shares of lululemon soaring after its
welcome back lulu soaring after its earnings report seema mody has more. >> strong growth in asia helped offset an operating loss in europe specifically china e-commerce continues to be particularly robust, generating an increase of over 140% in the fourth quarter. and ceo calvin mcdonald says demand is going to stay strong going forward. >> china is an area of focus and significant opportunity for us we are seeing strong success across this market and are pleased to see more and more people living the sweat life an ep ga engaging with our brand. we will accelerate new store openings >> lulu opened its first store in osaka and plans to unveil 25 to 30 stores internationally as
the retailer tries to extend its brand awareness outside of the u.s. in terms of new categories, management says men's pants has been one of the fastest-growing products for the company the company recently did sign nfl quarterback anybody folesnin ambassador it did launch a new line back in fall of 2018 as well as a new partnership with soul cycle. scott, the stock is up after hours, back to you. >> pete, this is one of your -- has been one of your top picks. >> they voted against me i don't know what stock has ever gone through one of the things we talk about is the men's category. that's a growth area you're also talking about they're not just athleisure anymore, they're actually clothing that's work appropriate, and they have got shoes and china is starting to take off e-commerce is something that's been growing, growing, growing so the combination of all of that, if they can continue that growth internationally, which that's the game plan, but if
men's can move from 20% up towards 25%, maybe 30% and get a little more of a mix with the women's wear along with the its girls wear they have as well, all of that together is why this stock i think goes much higher i think 200 is not ridiculous. >> i've asked you between nike and lulu -- >> lul u every time almost every category is almost double and this trades at 32 times and nike at 26 times which is the better buy? absolutely lulu. >> north america is fine and has picked up where people are somewhat concerned china, e-commerce growth up 140% asia, up 70% so these numbers are very impressive this is the kind of stuff nike was giving you they were up 28% in china. >> scott, on friday at 5:30 there's a show called "options
action." >> i've heard of it. >> you should tune in, it's really fantastic. >> you're really helpful today. >> mike khouw and i did a tag team on lululemon, a bullish play that's working out feverishly well, folks one of the reasons is that china growth we talked about and the men's division and the fact that now they're buying back $500 million worth of stock i would caution that 164 was the previous all-time high in september. in my opinion it's pair mounting -- >> do you have the pants, by the way? >> no. but i have the boxer briefs. they're fantastic. >> why did you go there? >> you asked me what i had. >> i do, i wear them for golf. they're good pants. >> they're great pants. >> i'm sorry, i started this. speaking of options action, shares of kbgap were up around today. one options trader saw something big ahead. >> today in gap stores call
volumes was two times that of puts one trade caught my attention. >> he's shuffling over. >> the stock was trading about $26, there was a buyer of 6,000 of the june 27 calls paying $1.27 for those. those break even at 28.27 on june expiration. one of the things i find interesting, a couple of weeks ago march 1st, we see this announcement, actually february 28th gap stores are trading up 25%. they're splitting up old navy and gap stores i think we went around the desk and sold to you. i think that was really interesting. look what happened here's the one-year chart of gap stores that's that gap. it gave it all back here so today we have this little up move as the stock is trading back near the 52-week lows if you look at the break-even on june expiration of those calls that were purchased, it's up here about 28.27 so a trader looking to play for a move back up to the prior highs.
i want to make one point why you might want to play with a name like that especially when the good news was rejected so aggressively this is the five-yore chart and you can see what's going on. it's been banging around the bottom here. there is a huge air pocket down to the high teens if we break at current levels here. >> okay. for more options action, check out the full show, as guy said, friday nights, 5:30 p.m. eastern time right here on cnbc. coming up, shares of cronos getting crushed. so what's going on with cannabis stick around and you'll find out. plus, here's a sneak peek at our cramer cam there it is. there's jim talking to the centene ceo ouabt their wellcare acquisition. there's more "fast" after this what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront.
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say? those four companies are all canadian companies so what's happening right now is certainly valuations in canada as a function of fully federally legal has allowed a lot of people to buy it because of that dynamic. every one of those companies trades on the new york stock exchange or the nasdaq that also gives you a liquidity premium that's in the price of these shares in cronos case, some fantastic deals with the other folks they have them at 91 times ebitda, which is absurd. i think the story is buying u.s. msos right now. >> thisis it a better way to pl- at least you have those other levers in the other consumer names. >> i don't think so. i think -- i actually own altria if you think about the percentage ofbusiness coming from cannabis, own cannabis. i think what we're soon going to
see, if we get this safe act banking deal done, the fact that you'll see them come to the nasdaq, come to the new york stock exchange, very important what you might also see is some of these big u.s. companies spinning out their hemp or cbd business so they can come public with those names here and now and get some of that valuation premium. that is happening. >> you got anything? >> i've got a lot of things. >> you got something on this topic? >> you know, this is the ncaa, we're right in the middle of this sucker, this tournament >> where are you going with this >> guys got mad hops, guys that jump out of the gym. you want to talk about a stock with mad hops, gw pharma is trading 165. some great fda data behind them. if you want to play in a space that has some medical stuff and medical juice behind it, it's gwph. >> thank you for that. great metaphor are we good? everybody good coming up -- >> how are you doing
>> i'm hanging in. >> do you want to invest like a ninja? well, stick around because the host of "american ninja warrior," akbar gbajabiamila is with us right there. and he'll explain exactly how to do that. back in two minutes. -so much of our future is ahead of us. ♪ -it's all about the big picture. with miguel, our certified financial planner™ professional, we looked at business insurance, our mortgage,
welcome back to "fast money. cnbc has a financial wellness and education initiative called invest in you. ready, set, grow in partnership with acorns. joining us is akbar gbajabiam a gbajabiamila, a form nfl star, current co-host of "american ninja warrior," the author of "everyone can be a ninja, find your inner warrior and achieve your dreams. it's great to have you here. >> thank you for having me this is cool i always watch this on tv. >> oh, you're lying! >> i didn't say i watch it every day. i watch it i work with a guy named matt "money" smith and he has it on. >> i love your back story. when did financial literacy become important to you? >> financial literacy became important to me really when i made it to the nfl
that was the first time that i was making solid money i still remember my first year, $225,000 in 2003 oh, my goodness, this is a lot of money, what am i going to do. i remember my quarterback at the time, rich gannon, telling me, akbar, don't listen to these guys making fun of your car. i was driving a 1998 pontiac sunfire. make sure you invest, go buy a home in alameda. man, i don't know a lot -- i'm having locker room conversations because i don't know enough about it but once i started to learn about investments, it then started to make me think where else do you learn about financial literacy you don't learn about it in elementary, junior high school, high school or college it's not until you get in the real world where everybody says, hey, you're supposed to be responsible with your money. hold on, we never learned about this. >> the most important things that you did learn once you decided this was something you -- i need to get a grip on >> well, i think for me was that money grows. it was kind of cool. you know in the age where
everybody loves video games. i grew up in the video game era. madden was popular i still never forget investing in janus funds and see $2500 turn into $2800. it just kept rolling this is cool i'm literally not doing anything i remember at one point checking in hold on, why did it go up? you know, the game part of it made it cool to see your money grow you always hear, at least me growing up in south central los angeles, you hear people say, oh, yeah, those guys got a lot of money they wake up and make money. i'm like this is happening, this is really happening. it was fun. >> it was an awakening when you left pro football and realized how much you had saved in your career and what your subsequent earning years were going to be, that you had to get more of a handle on how am i going to make aly for the rest of my life. >> that's the one thing. i had a dream of playing ten years in the nfl i didn't end up playing ten years in the nfl i ended up only having four years in the nfl here i am at 27, 28 years old
just thinking what am i going to do now with the rest of moi life i'm still in my 20s. i've got a long way to go. but i've been very fortunate now to be able to host a show, "american ninja warrior" and have a post career that's helped me out now getting into writing a book. "everyone can be a ninja" comes out a day after my 40th birthday so it's pretty cool. >> so a couple of things, you sort of live by. fear is our greatest enemy and how self doubt fueled the determination that you have. >> yeah. you know, for me, i just think about just the different points in my life where i was overcome with fear. i think about the fear of growing up in south central los angeles. am i ever going to make it out am i going to make it to a18 years old? am i good stuff. i had a superstar brother willing it in the league when i was in college man, would i be able to make it? but i take that into financials,
because finance i think so many of us are afraid of investing because what does that mean? what if it goes down if you're emotional about it, then it's hard to trust the investment process but i always say on the other side of fear and i talk about this in the book, on the other side of fear is something volati volatile when you're afraid because the stock market went down, all of a sudden if you look at it over the history of it, you go, wow, on the other side of this, this is great i'm glad i took the time to be patient and invest in this now, look, i'm reaping the benefits. >> have you had an opportunity to go and speak, guy and i have done this, but speak to some of the nfl teams and nba teams and some of these athletes so they have some better literacy than they have presently? >> yeah, we do i think the nfl has done a better job as far as getting these player as wear of it realizing there's a big gap because all of a sudden you're expecting these guys who are so young and coming into a lot of money, they're supposed to be
geniuses it's unfair to the modern athlete to think that you throw millions of dollars at them and they're supposed to be like geniuses it doesn't work that way so i think the most important thing is really surrounding yourself with people who are knowledgeable about this and who has your best interests. you also have to understand your why. and i think that's -- it comes down to investing. if you don't know why you're investing, what you want to invest in and what you want your financial future to be, then it's very easy to live in the now and to buy this car and look cool for the gram. >> instagram. >> that's the cool way of saying instagram. >> are you on the gram >> he's on the gram. >> quickly, alt-leethletes for education, spreading the knowledge. >> athletes for education was a nonprofit that i was involved in when i was in college, no longer around, but it was amazing i felt like it was a responsibility once i started --
like once i went through the shock process of making money out of college, i was like i've got to make sure that other kids who are going to come in -- whether it's as a lawyer, doctor, engineer, an athlete, i wanted to make sure that they knew coming into money, make sure you start learning and having the conversation about investment and how it works. >> great having you here. >> akbar is also a member of the cnbc financial wellness council, nbc unerivsal and comcast investors in acorns. final trades are next. cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem
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time for final trades. pete. >> j.d. >> tim. >> delta airlines. >> dan. >> intel. >> guy. >> southwest air, scott. >> that does it for us my mission is simple to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome into "mad money. welcome to cramerica my job is not just to entertain but to teach you so call me at 800-743-cnbc or tweet me at jim cramer the ipo cycle is playing out exactly, exactly as i feared hedge funds an