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tv   Fast Money  CNBC  April 3, 2019 5:00pm-6:00pm EDT

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and that is they weigh multiple factors and how would you ever be able to turn that into some completely transparent formula that people can look at and know in advance yes or no that would be hard >> governor, thank you for joining us we appreciate it >> thank you thank you. >> that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now live from the nasdaq marketsite overlooking times square your traders are pete najarian, karen finerman, and guy adami. the man who moves markets, marco kolanovic and chips gone wild and hitting a 52-week high as they soar this year. we'll tell you which has more room to run and we start with the rally heard round the world literally.
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emerging markets trying out the china, u.s., brazil, germany japan as hopes for a trade cool loom does this rally have legs? what should you be buying? is there an emerging market specialist in the house? >> i'm in a different seat tonight and therefore i get this assignment i think, look, if you think of the dow that we have there's reason to be excited and not a reason to do cart wheels and the services data which is the best in 14 months and the bottom line is the pboc is throwing deleveraging out the window and they're throwing as much credit for the problem as possible and what it means for the regional markets and the regional economy is good and as we're getting closer to yet again another trade deal and it seems like we get a boost from this every single time and the technical guys will look at the em and the semis, and pick something global and cyclical and we've extended the move and we're at fresh levels for a lot of things that we're running into the same areas and look at the dax and if anything europe has been the most beleaguered market across the world on the back of not great data over there and pmis
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that aren't showing you anything great, but yes, global data for the short run has bottomed and i think this is what we're seeing. >> if you believe there is a turn in china that means all sorts of good things for the other markets in that region as well as in europe particularly germany. >> so, just to play devil's advocate. >> sure. >> because why not there's clearly a turn in china. they're clearly throwing money at it, but does that embolden them not to do a trade deal? the china market is down 30% at one point and they'll be forced to the table and those markets have come screaming back are the chinese in a better position not to do a trade deal with the united states i don't know what that means for the markets, but i would say it's emboldened them to string this thing out longer, quite frankly. >> can i take the other side of that >> sure! >> you were down a lot, too, at that same time, right? so you could if you wanted to make that argument and i don't
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agree with it. >> you tuesday twice, by the way. >> we could have a stronger hand and they would have a stronger hand i think we're better off because we perceive there to be some progress and some real progress and we do seem to be getting to what i hope are more granular issues so that we are closer to the end which i think would be better for all of us. >> and i don't know necessarily if the rally back either in china or in the united states is entirely on hopes of a trade deal at that same time we are also getting a fed that pivoted in a major way and we have china throwing a whole lot more stimulus on the economy. so even without a trade deal and whatever it is we've got stimulus here and we have a fed that seems to be much more cooperative for the markets right now and the reality is strong hand, i think to karen's point, i think the reason that we're seeing china move to the upside is the hopes of a trade deal and that's what's really pushing it and when you look at names like j.d. and if you want
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to go to shar you look at these things they're from 21 to 31 this year alone and they're running and screaming to the upside and we're seeing derivatives and those are things that we've seen for a while, hsar, never saw it before. it's hit 14 different times since the start of this year with unusual option activity looking for more upside and we even had some today in both names. so i think this is signaling not necessarily the strength, necessarily of china it's signaling more, hey, look, there might be a deal here that would be good for both sides, actually >> i also just think that this deal is -- you may think this may embolden the chinese >> i don't think china has given up anything. i think this is a deal that if anything, it means it gives them the ability to buy stuff they would buy and they've paid lip service to technology transfer, but in the scheme of where they're going with china 25, i
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don't think china is giving up anything at all and they would call this a deal right here now, whatever the details are. >> say there is a term in china, do you go one step further in the trade in that you also are bullish on europe and other parts of the world that are so dependent on china whether it be because of the trade deal? >> i think it would be reason to have some bullishness about that, but there is much more going on within those economies that is within those economies and less about china i think all of europe right now has all kinds of different issues and it's not just china relatid and think it's within themselves and for that reason i would rather be in the u.s i would love to be in the china names and i'm in those two names that i mentioned i still see too many holes and too many debts and too many issues in those countries that i would rather stay away >> it's interesting you heard the sirens >> it was well timed, right? >> fascinating >> we'll talk about chips. the people at home are probably wondering -- we'll talk about the chips later because that's
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its own animal. >> huge. >> without question, but what you have to bring up is i think deutsche bank is paying attention to what's going on with the trade deals and they're not living in some vacuum. today they downgraded caterpillar which we would agree to some level is the poster child for the global growth and potential deal with china. they lowered to 128 in the midst of all this and they're clearly seeing something i would agree there's no question the hopes of a deal has buoyed this market and you can't deny the fact that the chinese have thrown liquidity -- >> so this is a headfake >> the recent turn in china. >> i'm just saying i'm just saying. >> the recent turn -- >> i don't think it has to be necessarily sustainable economic move higher. be clear, the chinese economy has been one-third of global growth for the last decade so it's important that we see something here, and i think we're getting that and back to what's working the cyclical trade has not just been semiys and it's not just,
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merging markets and it's been materials and energy and anything that has been almost seemingly not happening with reinflation because when we look at yields and you are getting reflation and you look at copper prices and energy prices and energy has been the best trade this year. if you look at crude it's been the best chart in terms of volatility and consistency and these are trades that you stay with. >> to tim's point, energy has been the biggest of all of the biggest derivative categories so far in the first quarter it was energy, in my opinion. if you look at the different disclosures it is energy and energy a week or so ago i think i have 13 different positions in different energy sources and it's because of the unusual activity and this move in oil, we're watching in front of our eyes and pushing on 60 and pulling backs, getting over 60 i think energy is still is the play and this quarter energy will have another good quarter. >> so just emerging markets with brazil, as ugly as brazil is, i think you have to have exposure
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there, as well. >> let me connect the dots >> when i was a kid they didn't let me into nursery school. >> why is that not surprising? >> i had trouble connecting. 1967. >> you couldn't count? >> tim, i told you before the show to turn off the phone. >> nobody heard that except you and now everybody else. >> if you think the turn in chinaa is a headfake, can you believe in the global cyclical trade? >> i think so because energy is going higher for different represents and i don't think energy is going higher because you have some global reflation and re-acceleration of -- of economic strength. i think it's all a function of the fact that you have central banks around the world torching currencies and the commodities are going higher i just believe they're going higher for a different reason. >> let's settle the score on the chart at least our next guest says the rally is getting started in china chris is at the plasma what are you looking at? >> i think this rally is just
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getting started in china let's start with the fxi and let's put this into some context. 54 all of the way down to 38 and that's a 30% decline in the china etf, but what i think is important is this really started to bottom in the fourth quarter. we've consolidated here over the last couple of weeks between the 42 and 45 range and start to poke our head, right above the 45 level and we think ultimately back to the new highs is the story, but what i think is really interesting, when we look at the long-term china picture, you can argue that this rally is getting started impeach here's the being in, off 27 off the lows and if you look at the last three major china rallies up 400%, up 97 and up 157 when china goes it really goes we think this movement is just getting started and maybe what's interesting out of all these moves volume expanded
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meaningfully it happened in '04 and it happened in '06. it happened in 2013 and 2014 and what did we see recently volume is starting to pick up. in a retail-driven market volume is important that is shanghai we like that picture, and we like the global growth story i think the fact that copper here over the last number of weeks, this is copper versus gold, industrials versus precious metals. copper outperforming, i think, sends a positive message that growths is actually getting better here. how do we play it from a stock perspective? i think some of those chinese adrs are very timely and this is the 35 billion market cap is putting this nice, rounded base over the course of the last year, year and a half and this is coming after a 50% decline. so they took half of this stock down we think it bases here and we think it turns up and the last several days just accelerating out of this move, broke out through 250. we think that goes back to the old highs and if you want to play it domestically
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i think u.s. tech is a way to play china exposure. this is another big stock and a third of the revenue from china and it just broke out of the 18-month base and got above the 900 level ask nd we think again1 and you can get exposure here and we love the trade and they're just getting started. >> chris, come on over i'm glad chris mentioned amphenol, and it is as big as general mills and southwest airlines and now we rarely talk about it >> it's a great stock. >> and the revenue from china. we mentioned the chips today look at what happened in the chips today. the revenue from china, big turn there. it's not just hope of the deal and it's legitimate signs and at least expectations for global growth and the copper chart has held up great recently. >> so if you have to believe
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that there is a turn in china, and this is the discussion we're having, should you invest in the related trade like a germany, for instance or a brazil, something that is leveraged to china? >> you know what's interesting, and we wrote about this this morning. if you look at the deep cyclicals in europe, the tires and they're showing signs of life here. a lot of these thicks are down 30%, 40%, 50% from where they were a year ago and we welcome the improvement and at the very least, if this is a part of the world that you should start doing some homework here >> china has been having -- wait on the 3200 to me, that we broke that today it would be risk on another 5% based on the charts. >> you think he's moddet and
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when china goes, it goes i think the general consensus is that rallied the rally in '04 and these were 100% events and i don't know how much more this goes, but the rally has started here. >> is this rally predicated on the deal, though, and what if we don't have one >> i think the charts whether it's china, whether it's copper, whether it's european autos and whether it's european banks is suggestive of deal or no deal, something around the worldis getting better and that's what i want to play here. >> chris, thank you. good to see you. chris barron >> each though tensions with china are high, chris was drawing with his middle finger when he was doing the china charts >> it has nothing to do with that >> that's how he draws. >> that's the finger he chooses. >> he didn't have to point that out and most people at home didn't see it. >> thank you for pointing it out. >> we're a friendly show >> ethanol is an interesting company and that was power pitch
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anymore, and -- >> it's never been called power pitch, but go ahead. it's fine. >> 76 to 100 in basically a month and a half and it's not cheap. however, suntrust robby humphrey put a $12 price target and it broke through the top in naes 97 and maybe it gets to 112 and you're talk being about a valuation that's probably a wee bit extended. >> he brought up big-cap tech. i mean, what has been absolutely just scoring to the upside lately it's been big cap and i'm not just talking chips have you looked at ibm's move since that low i mean, we're talking about a stock that's gone from $100 to $145 a share >> i've owned it for a long time and i'm feeling better about it than i did quite a few months ago and i'm not just saying ibm, but microsoft today over 120 >> obviously, you look through the different sales force and you start to see some recovery there, and oracle, and cisco and
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big-cap tech and that's moving to the upside. >> the man who moves markets, markokolanovic. >> and karen has a name that's trading in a major discount and find out when she delivers her fast pchit we are in times square much more "fast money" straight ahead. dealing with today's expes ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.
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and it's simple, easy, awesome. boeing ticking after involving the ethiopian airlines crash and phil lebeau is live with the latest hi, phil. >> melissa, we'll talk about the details regarding the initial report and details that we have confirmed independently and i want to start off by showing you a couple of pictures we just received within the last half hour from boeing look at this this is the cockpit and it's a little hard to see and toward the bottom of the picture is the ceo, dennis mullenberg, getting out of the 737 max plane and dennis mullenberg went on a test flight with the pilots and they test the out the new 737 max mcas software solutions that they want certified hopefully
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within the coming weeks and they say the test flight went well. in regard to the eating i don't know ethiopian test crash. there were reports that the pilots were struggling with the mcas software and they followed boeing's procedures to disengage and turn it off after takeoff and they struggled manually to regain control of the flight before they inexplicably turned it back on and that was shortly before the plane crashed we will be getting the initial report on that crash investigation including a lot of details from the black boxes that comes out 3:30 a.m. tomorrow morning eastern time. you take a look at shares of boeing and we should point out that boeing is adamant that it expects to file its application with the faa for its fix, the 737 max software in the coming weeks. that's not a change from what they said last week, but this is what's been weighing on shares, guys, as you take a look at shares of boeing over the last month. remember, it's all about how
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long it will take for the faa to not only approve that fix, but then clear the 737 max which is a separate question, clear it to fly again. >> so, phil, if the pilots did everything that boeing was telling them initially to do. >> correct >> and the plane didn't respond accordingly, does the software fix address the problem which boeing didn't think was a problem before >> well, a couple of things. first of all, remember that the 737 max that crashed in ethiopia was getting data from only one angle of attack sensor and it's the understanding of a lot of people who have looked at the data that we've talked with that that angle of attack indicator that it may have been damaged, if not ripped off of the plane by a bird strike at takeoff. so if that's the case, if that's what happened and that's what's giving you data to the plane that answers a lot of questions. the software fix, melissa, will take data from two angle of attack sensors in addition to
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other changes that will be made to the software. so it's not just one, it's two sensors that would then be feeding into the plane and it would also enhance the training for pilots to disengage the system so that they could correct any issues that might pop up if mcas was pushing the nose of the plane down. >> forgive me if i'm missing something, though, phil. if the pilot was trying to disengage the system and it kept re-engaging -- >> is that -- >> is that because it was missing the aoa sensor and it was re-engaging or was it a problem with the entire system where it could not be disengaged >> great question, melissa a lot of these we don't know until we actually see the black box data and that's the question for tomorrow morning how much do the ethiopians tell us about what they saw on the black boxes in terms of the data, the cockpit voice recorders, how much information can they give us so weigh can get a better picture of what happened look, this flight only lasted six minutes and the natural
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question is going to be did the pilots truly follow the procedures exactly as they were supposed to or did they, in the moment which is understandable, in a panic start doing other things which they shouldn't have done like turn the mcas system back on? these are questions that people are hoping to get a little more detail about when the initial report comes out early tomorrow morning. >> phil, thank you phil lebeau joining us from the new york stock exchange. with the latest report will the boeing software update be enough can investors start thinking about being in this stock at this point >> i think so, and i think we sort of said it when all of this happened nobody knew when the bottom would be and we talked about the ridiculous amount of bottom that boeing traded anywhere between 30 or 40 million share which is is seven or eight times normal volume and short of a class action suit which none of us saw coming and this would rectify itself in a month, month and a half and you may start to see analysts reconfigure their numbers and you know what? the worse is behind us and boeing has bounced off the low
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and i'll say it again, and there is a very good chance that we come back here in june and boeing is back up above 400 and remember, quickly, boeing went from 295 to 440 in a straight line so even the move that we saw -- you can make an argument for the fact that it only went down on the back of this to me is the most surprising thing. >> maybe that means there's more room to go to the -- we have been in situations before and for very different circumstances, granted where companies -- something horrible happens for the company. >> bp oil spill. >> whatever it is, and you think it's a bottom and then there are all these investigations and regulations and it's not the bottom i don't know what do you think? >> i think interestingly, the day the faa grounded them that was a huge gift to boeing and it calmed everything down a little bit and it gives them some time to come up with a fix while the planes aren't flying i don't know if they were to come out with the all clear and
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they submit their fix and in two weeks or four weeks the faa says fine and then they start up again. i don't know if it completely gets rid of any taint or discount, and this is an enormous -- enormous part of their future, right? $600 billion plus of orders over the next few years so i don't think you have to jump in right here i think that at 22 times it's on sale for boeing, but relative to the market it's not completely on sale. >> okay. chip stocks catching fire today and amd up nearly 10% for instance and i'll tell you what is behind that move and you are watching cnbc. much more fast. >> the man that moves markets is back with a huge call on stocks. you won't want to miss what he has to say plus karen's stepping up to the plate, getting to rich one hot retail stock she says is trading in a major discount to the markets. find out the name when "fast money" returns
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>> welcome back to "fast money." we have a news alert on wynn contessa has more. >> ceo matt maddox was getting grilled. number one, we heard an admission that he knew of a settlement with a cocktail waitress in 2007 that involved, they said, the wynns wanting to keep a longtime employee who had fallen on hard times they wanted to keep her and they awarded her $700,000 he said he never elevated that up the chain of command in terms of getting more information of what was really behind it. the second revelation that we heard from matt maddox was an admission that the president of the then-president of wynn las
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vegas had come to him and said that the wynns as a couple and steve wynn and his wife andrea had asked for a sensual massage and was making employees feel uncomfortable. maddox said he told them to knock it off and to tell the wynns to knock it off and they came back and said hey, was there some confusion was it a swedish massage and a sensual massage and it was taken care of. did you elevate that to hr did you tell general counsel and did you talk to employees? he says no listen to what happened next. >> there were a lot of different people that i think were trying to protect steve wynn, and the last thing that they would want to do is tell me. >> why is that when they report to you >> i think i'm known as a very straight arrow i am the one -- >> but one they can go right
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around. >> that's -- you know, mr. wynn was the boss i wasn't >> the hearing continues tomorrow with more testimony from matt maddox tough day for the company today. some explosive revelations there, melissa. >> thank you contessa brewer. she said it. explosive revelations and a tough day for the company and yet for the week the stock is up 15%. so does this particular -- is this chapter behind it >> think it is i think the most chapter is china and by the way, macao's properties are down. i like wynn here. >> macao numbers are getting less worse the stock goes from 97 to 137. there is a very good chance to trades up to 150 which is a 50% retra retracement. i think it continues to grind higher >> let's switch gears and check out the semis on fire soaring to a brand-new 52-week high bob pisani is at the nyse with
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more on this monster move. hey, bob. >> and it's about china. the semiconductor etf just shy of a historic high and that was a year ago and the simple reason is china so the five s&p companies with the biggest exposure to china, hey, guess what? they're all semiconductors, qualcomm, micron, qorvo, broadcom, texas, 50% of it comes from china trade talks have risen and so have semiconductor prices and in fact, semiconductors are the leadership group among tech and cyclicals this year. amd is up 60%. lam research and applied materials and broadcom they're all up 20 to 40% not surprisingly, there has been a very close relationship between semiconductors and the china stock market itself. look at this chart the semiconductor etf is up 20%.
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shanghai is up 28% and the two have been moving in lockstep virtually for the entire year. the markets are pricing in a lot of optimism here and broadcom, for example, is a big apple supplier and we know all about the softness in china where apple gets 20% of its revenues and the whole play is based on stabilizing demand and not just in china, but also in europe back to you, melissa >> thank you bob pisani at the new york stock exchange i go to pete on this you've been pounding the drum on this yeah i have a fair amount of exposure and it's the fact that i've been encouraged more and more and i do think there will be some sort of a deal and if you look back some of the names were punished and each when they report decent numbers and they try to head a read and they hear something from apple and they'll read ahead and this will absolutely impact and the reality is whether it's micron or xilinx and amd and nvidia and they have categories and verticals where they get their money from and their revenue streams and i
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think there is a great opportunity across the board there, whether it be an amd and you have these different aspects where it can go, big data. i think intel is still my favorite because it might not be the most sexy of all these names, but it still has a great, new ceo and the cfo that they just hired away from qualcomm will be huge from the company. >> bob pisani had a very interesting chart that he put up >> as he does. >> the composite with the semiconductor etf moving in lockstep if you don't believe in china, guy adami. >> no, no, no. they're throwing money at this sucker to our earlier guest, chris varron said this was the beginning and he might be right. if you look at a stock that seems to have its legs under it at 13 times earnings and qorvo is interesting and upgraded to goldman sachs and key bank upgraded it as well and that's the stock that valuation make sense and it hasn't run nearly as far as the rest of them. >> as we talked about this,
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remember, semis peaked last june and basically they're the leading indicator and they told you what was going on in the fall and the second half of 2019 is better and this is telling you what i think we're about to hear from marko and intel to me is right down the middle and you can have something like micron which could be a value trap. >> let's bring in marco and j.p. morgan's derivative strategy and he's making the case for the rally and he says new highs by next month and more specifically your year-end price target is 3,000 and we can hit the year-end price target by the end of next month. >> the price target is 3,000 for year end and the china trade deal and that means that we have this brexit and push it out or it's not too disruptive and the earnings season is not a complete disaster and i think
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the market could be higher and we could see the price target being achieved in may or june. >> part of the checklist is that hedge funds are in. >> that's correct. >> when we look at the positioning data beat our own data, and if you look at the exposure to equities, and it's actually at all-time lows. >> it's a large miss and they were playing long short and there were some good bets, and the growth exposure was higher and in terms of net exposure needing how much of a beta you carry and it was very, very low and the rally shortfall has been short covering in january and the continuation of buybacks and some of the systematic strategies are exposure and the systematic investors are we think about 30% to 40% of their historical percentile and
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basically hedge funds near all-time lows and below average and we think there is a more sort of fuel for this rally to go if again some of these things do happen like a trade deal and we don't, say, blow up on brexit >> in terms of your 3,000, where do you have, is the fed neutral? zero, what is your expectation to come up with that 3,000 >> they have no hikes this year and so that's where we're looking at a few corners out and we think the fed will definitely not do anything for the foreseeable future and signs of recovery in china. we think the fed will not enact for a little while which gives enough a runaway enough time for the market to reach all-time highs and go higher. >> marko, again, your dashboards and i think you've been pretty clear on this stuff and europe has broken through technical levels and that to me seems the price where most people are definitely offsides and not in this trade >> that's for sure europe was a little while ago
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the most shorter and underinvested in the area. i think europe will be derivative of china. we are seeing pmi starting in china and if that sort of continues and eventually europe will be lifted, as well. europe was waiting on a sort of global cycle it's still abandoned and china is moving and china probably has some more way to go at that point. i think you may want to turn to europe. >> clearly, you're on this whole inverted yield curve thing that people have been talking about and it's why now recently, but what do you make of it >> so persistent yield curve inversion and it lasts for a long time and historically is not good and everybody agrees with that, you know? we look at the first time when it happens and it happened friday about a week and a half ago and since the first inversion actually the market shows strong returns 12 months out and 20 to 30 months out it starts rolling over and i would say the first sign of inversion, the first instance of inversion
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is a positive sign and prolonged inversion say we have one month or two months or three months and i would be more concerned and we had friday for two or three days and we don't have it this week. so we will keep an eye on that, you know just in the short instance of it is positive and not negative. >> aside from your brexit, and aside from the opposite of those three thing, what is the biggest sort of risk to this thesis in your view? >> i mean, it's hard to say. so you have some of these terror risks. can we have something out of the white house out of the left field? some new trade war or some new scandal or those type of thing, but we don't have anything that we'd point our finger to at this point, wow can be surprised. the mueller investigation was cleared. that's also marginally a positive look, china might start turning relatively recently and i don't think we can be 100% sure that that's an inflexion point and
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we're watching this data next month we'll watch the data in europe, and we are kind of cautiously optimistic that china made this turn, and we could get surprised that it was maybe some seasonality and want a real turn >> marko, great to see you thanks for coming by marko kolanovic, j.p. morgan what do you think? >> if you look at the u.s. labor numbers, that could give a gut check. it doesn't match up and it was a terrible one last month, and we are at a place where a growth scare, and this market is gun shy on the global recovery i think the u.s. data is still paramount right now and i think it's been okay, but we need to see decent numbers on friday. >> the u.s. data, like you say, we have to keep watch nag and is this an inflexion point or we need to see more than what we've seen in one time, the reality is we're in a trading market. the derivatives market continues
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to tell me, hey, pete, the best way to play this is in the options world. >> through my computer. >> the options whisperer. >> not too many months ago we had high volatility and this is the time when the best opportunities are finding great quality stocks and selling options against them and now it's more of an option-buying environment and buying protection on some of those. so i think you just have to trade what the markets are giving you and 13 volatility gives you the chance to own it very cheap. >> i wish the options markets would talk to me >> you know who is talking to me right now? the producer saying we have to go. >> take a look at this stock we like to call it the millennial stock and we'll give you the name and tell you what's coming up, and karen is in the pitch and the one stock that she thinks is ready to race higher and that straight ahead tonight "fast. california phones offers free specialized phones... like cordless phones,
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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit >> take a look at this move of boeing in the after-hours session. we were just talking to phil lebeau and at that .25 minutes ago the stock was up less than a percent and now it's higher by
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3.6% as phil reported the company tested the fix and the ceo flew in the cockpit of the software fix test, but the stock hadn't been moving this much. he has, phil, that is, continuing to report on the story to see what is behind this big surge in the after-hours session kissing $400 a share at this point >> are we allowed to say that? >> i think she is. she said it. >> switching gears retail stocks having a run and check the etf up double digits and karen has a name she says is on sale and she's over at the plasma with the fast pitch take it away. >> here is a name that is definitely on sale and for a value girl like me i love a situation like this. this is the case for capri, and yes, it is pronounced capri. i don't know why, but it is. they added jimmy choo and versace. what they're doing is building a mini luxury conglomerate luxury conglomerates trade at very good p-e multiples and this one actually does not.
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it doesn't trade like a luxury doesn't trade like a great brand. it doesn't even trade like a great brand and it trades like a department store which i think is excessively low why is that? >> i come to versace, versace, versace. let's take a look at what happened to the stock? the next chart right here they announced they're acquiring versace and they're paying $2.1 billion or so and the stock is around 70 and if we come back to where we are now right here the market has taken off $2 billion give or take of market cap post the versace deal. it's like they bought nothing, but they didn't buy nothing. they bought a really interesting business and i believe they'll be able to grow it a lot let's just go to look at valuation of capri versus other companies that you might consider to be comps and here we look at the ones that are most frequently cited and ralph
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lauren trades at a multiple of mid-teens or so, mid to high teens a teens and tapestry which is kate spade and coach and stuart weitzman, and the middle to low teens and here we look at capri and it is trading at nine. so i really believe that they are going to be able to grow these businesses, jimmy choo and versace are both luxury businesses and one other thing that's very important and even though this one trades at the lowest it has the highest operating margin of all three. i'm long, and this is, in my opinion, one of the better value plays out there in the retail space. >> karen, i have a question for you. i love the valuation levels and do they have enough growth and you just brought up margins. where are the best margins >> the margins are they'll be building the accessories business for both. they believe they can grow next year double-digit earnings and i'm doing 10% next year and the year after that which gets them
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even cheaper so i believe in this management team and i think they can do it. >> all right time to vote no more questions. are you buying karen's pitch on capri holdings i go to our fashionista, guy adami. >> i thought you would say tim [ laughter ] >> i want it to be ironic. >> my italian friends will say the blue grotto is is in capri and not capri as karen said and 22% operating margins and that will get you done. >> i'm going to vote yes with karen, my very cute balloon-holding friend here. >> i'm buying. i've got to tell you when you have growth and seeing those margin, giddy up, sister. >> clean sweep are you at home buying capri we'll reveal the results later in the show. plus, it is the millennial stock that analysts are calling the trojan horse and digital spending and fight out the name and if a othnyf e traders are buying when "fast money" returns.
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>> welcome back to "fast money." grub hub shares getting a boost after btig called it the trojan horse and the stock with a buy rating giving it a $95 price rating and it was cut in half
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since september and this comes as competition is with posthaste, and door dash keeps eating up market share and grab grub ahead of these ipos karen, what do you say >> it's very expensive, but i like it. i think they're really in a great spot when you have it seamless. they own seamless. it is so easy to do, they have me locked in, right? and there are hundreds of thousands of customers and it's a great business in some ways. i think it's interesting. >> the analysts make the point the more and more restaurants you sign into and that's where you go because all of the restaurants are on the one app and it makes it easier. >> they've been adding it right and left >> we are grub hubbers, i must admit. i agree with careen and the valuation. is the competition in the price and is that the stock getting its knees knocked out of it and i think that is, and i'm still not sure they're going to win. again, when i look at uber eats and the competitors in the
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space, i think it's crowded and the margins are slim >> i feel you don't order out much >> i do order out occasionally >> imf not a grub hub guy at all. >> you pick up the phone and actually call a restaurant >> i let them do whatever. this is another case and i think it's like a lyft where you have so much competition out there and can they make money and if the valuation is as high as you were intimating was as high, i don't want to have this stock. i think there are better opportunities. >> you are mocking >> i call the restaurant and say i'll be there in ten minutes. >> and you go, and you get in your car >> sometimes, i get a slice of pizza and wait that's what we do here the grub hub stuff -- so 20 years ago. for more ongrub hub and what i next for the company do not miss cramer's exclusive interview with the ceo, that is tomorrow night on "mad money. coming up on fast, airlines have been flying high and one fast money trader ibeing s ttthe surge will keep climbing
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we'll tell you what has him bullish. much more fast after this. insure prosperity. as investment management professionals, let's measure up. cfa institute.
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thwho hold themselveshe to a higher standard. they are called "cfa charterholders." demand the best. demand a cfa charterholder. cfa institute.
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the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. 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 to "fast money." take a look at shares of american airlines soaring 10% over the last week and some traders think the rally has the wings to fly higher. mike is in san francisco with
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all of the action. hi, mike. >> american airlines group did see about three times the average daily options volume today and by far and away the may 38 calls were the most active over 45,000 of those traded and all of that included a purchase of a block of 9,000. somebody paid 35 cents for that block, and those are bullish bets that will be above that $38 strike price by the may expiration six week away and that's suggesting another 13% from here. it looks like after having bottomed out as you pointed out relatively recently it looked like they may be poised for a rebound. you like the airlines. >> >> i thought it was a great opportunity and risk reward and the risk is 35 cents for an upside call and the stock doesn't have to get to 38 and it starts moving to the upside and these options start to move to the upside >> karen, we were talking about them yesterday. >> and i like the airlines you have to trade around them and i don't think this move in aal is enough to start fading it at all
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i would be a buyer if they were traded or faded. >> dell is up another 3% today up to 6% yesterday and 17% in five days and around 60 bucks i think you'd trade them hard. >> the valuation, by the way and his hair seems to be flying away mike ko. >> still handsome. >> mike ko in san francisco we'll see about that see you friday options action a5:t 30 p.m. eastern time. >> karen's fast pitch next i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job.
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>> you know what, karen? i'm shopping for shoes dirty dancing because karen is having the time of her life. america is buying her pitch for capri. actually it's 50/50 and it's the closest thing to a win that we've seen here for a very long time. >> have we had a tie ever? >> i don't know. exactly 50/50. >> all right time for the final trades. pete >> i don't think the semis are over intel's going higher giddy up. >> winner, chairwoman. >> if it's good enough for half the people watching then it's
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good enough for me i'm going to go with capri >> tim >> despite the bullishness and cyclicality and i like at&t gets it done. >> southwest. >> we'll see you tomorro 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 and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer welcome to "mad money" and welcome to cramerica and my job is to he had kalt and to teach you so call me at 800-743-cnbc or tweet me as we head into earning season, shouldn't i be more nervous, shouldn't i be more worried?


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