tv Fast Money CNBC January 29, 2013 5:00pm-6:00pm EST
valuations that still are not excessive. the price to earnings ratio for the standard & poor's 500 right now is 14 on a forward looking basis. and with $3.6 trillion in cash on balance sheets, corporate america is poised to put money to work. including dividends, buy backs and deals. s&p capital's rich peterson telling me mergers and act kwi tigss as well as the ipo market is off to a better start than last year. in the next few weeks, we will hear from the federal reserve which will likely give the okay to several major banks to raise their dividends, that could push stocks further. the wild card is washington. and the upcoming debates on spending and the nation's debt. will the dysfunction create barriers for this market? i suspect not. even though earnings have been just okay, and revenue just okay, owning stocks in the united states seems to trump rock bottom yields in fixed income and few alternatives in still troubled europe. it should be another interesting year to cover the stock market. i hope you'll stale with me for this ride.
take a look at the day on wall street and it was, in fact, another winner. we are just shy of the all-time high of 14,100. 72 points higher on the day today at 13,954. volume picked up, as well. that's a positive. nasdaq was down a fraction. and the s&p 500 was higher. check out amazon. it is up 8.75% though the company's revenues were short. have a great night, everybody. see you tomorrow on "the closing bell." stay with us. "fast money" begins right now. have a good night. live from the nasdaq market site in new york still's times square, i'm melissa lee. here are tonight's top three trades. blackberry break through. will they make or break rim's recent rally? and jet blue headwinds. what lies ahead for the airline after a disappointing quarter? the ceo talks to fast exclusively. plus, facebook faceoff. two of our own square off in
this battleground stock in a street fight you will not want to miss. first, let's go straight to our top story. the dow, fewer than 50 points away from a 14,000 level not seen since october 2007. find out who is a buyer and who is a seller. hello, guy. >> nice blouse, good color. >> thank you. >> we talked about this and you have to continue to like what the market is doing. and i'll continue to say it, i think we're going to push up between 1535 and 1560. that's where we're going to top out for the year. we said it will coincide with ten-year rates going to 2%. guess what? they got magically close and said it will coincide to the vix trading down to 12, which i do believe we'll get to. this market has every reason to sell off, not least of which was the apple selloff. it's frustrated the shorts. i think it will continue to frustrate them. >> the rally has happened inspite of apple. >> yeah. tim? >> and if you listen to the lead in, we were playing great white, "once bitten, twice shy." >> nice. >> a lot of people feel that way
about this market. the s&p, its best start to the year in decades. we are in a place where people have actually been playing this a little too conservatively. volatility is nowhere. if you haven't reached out and grabbed this completely benign environment, you've really underperformed. if you look at the housing prices, the schiller index out here, we're at six-year highs, november to november. you have a place, as guy said, rates are telling you what's going on. you know what they called the two year note? >> the bunde-schad. this is telling you that even germany, which was the ultimate fight to quality, they were negative ten basis points. >> yeah, it is the regret rally, for anybody who missed last year, you got to chase it up at these levels. i can find 20 different reasons why the market should go down but it just doesn't. it keeps going up. a lot of it does appear to be cash coming into the market. the market isn't necessarily
reacting to good or bad news. it is just mechanical. scares me a little bit. >> to brian's point. it is institutional asset allocation. one of the things that came out of davos was an analysis of where earnings are and the earnings yield for the overall market, relative to german bonds, u.s. treasuries, et cetera. 7% are in the market, 2% yield on u.s. treasuries. that's just too big of a spread. and you're seeing a lot of tactical asset allocation into stocks for the beginning of the year. >> let's be helpful to our viewers at home. say you are not in and you have not participated in this rally that we've seen of late. where would you put new money at this point? >> see, if you are asking me that, probably the wrong person to ask because i believe we're in the late stages of this thing. i believe we're going to have the day where the s&p is up 15 to 20 handles and that will coincide with the top, potentially, for the rest of the
year. if you haven't been in, hopefully you have been in. i think we've been telling you to be here. if you haven't been in, i don't think now's the time to get in, because i think you're only looking at another 25 to 30, maybe 40 s&p handles to the upside. >> if this is a risk rally, emerging markets are down small on the year, you buy them here. >> let's hit afterhours action. we are seeing a monstrous move higher for shares of amazon. gross margins carefully watched metric, in particular for amazon, coming in better than expected. cnbc's jon fortt has the latest. >> the conference call has just started. they are going over some of the basics of the quarter. lots of questions about xa exactly investors are looking for. analysts were saying it was a top line story. top line actually came in a little bit weak. margins are better than expected. better than expected meaning they made some money. so, really need to hear the color on this call about kindle fire, about some of the specific segments, it seems like americas and several regions did well,
though the pace of growth is a bit slower than it's been in the past. >> in terms of the guidance, a lot of analysts, piper in particular came out with a note, especially for the march quarter, amazon tends to sandbag. but the guidance they gave was between 1.5% and 10% what the street was expecting for the march quarter. that was a surprise. >> yeah, so, even based on their sandbagging, it did seem to be a bill low. given that, though, they also did turn a surprise profit well above the midpoint of the range that they gave for q-4. so, maybe there's some hope they will do that again, which, i suppose, you know, nick's possible. lots of surprise in the reaction that i'm hearing from investors, a little mom and pop individual investors about how the markets reacting to these earnings versus how they did vmware, bmc, apple, other companies that don't seem to get the consideration that amazon does. >> good point there. >> see on the call if that is warnlted. >> all right, jon, thank you.
in terms of the trade here this is one of these stocks that just does not want to go lower. >> no matter what the valuation is, no matter what happens, this stock continues to go higher. but here's the thing. yes, the other stocks that perhaps like a vmware do not get the type of recognition, but they are actually starting to earn a little money. if you look at a vmware, they are basically saturated their market. amazon may not have. if they have, now they're actually going to be able to expand the margins a little bit. one other thing, the tax rate was interesting on this. it looked a little higher than what they paid in the past. i think they paid 25%, 30% in the past. it was close to 45%, so, maybe on the call we'll get clarity on that. >> if amazon is doing better on the margins here, their cost of sales have gone up. but jeff has been investing in these fulfillment centers. their global story. people assume they are going to get their top line growth. if they are doing better on the margin, they are investing in their infrastructure.
they will take the next global in the global retail earl that's in the traditional format. this is why you reward amazon, though i don't reward them from a stock purchase, because i don't chase stocks like this. this stock has boomed because it was down 8.5% going into the numbers. >> is this a hedge fund favorite, anthony? >> i think so. i think it's a retail favorite because jeff is now the cult of steve jobs. he's the risk taker, he's the innovat innovator, the great p.r. person. two articles, literally, in the same month on this guy, and he's getting the halo effect. that's why you are seeing this p.e. expansion, as well. >> where do you stand on amazon? >> we said, you can't short this stock. as much as, the visceral response we get in apple, we get the same response from amazon. people can't wrap their arms around it. the improouvement in margins gin what the street was looking for is exactly why the stock was higher. if margins were just in line, the stock would be down 10%.
but they're improving their margins, they have done it for a few quarters. >> in the afterhours session, just about $3 away from a new record high for shares of amazon. meantime, research in motion shares have rallied 32% this year alone, as the company gets ready to launch its highly anticipated blackberry 10. and now its moment of truth for rim with the launch tomorrow, with rim's share lagging behind apple and android, will the blackberry 10 in fact be a game changer? our jon thnajarian is on the fa line. you say tomorrow's event is not make or break. why? >> it's already had its make or break moment, when the stock was $6.22. if you were going to break the stock and break it below $5 a share. you could have broken it back then. they started to get leaks out about how good the bb 10 might be. that's the operating system, as you guys know, or the z 10, the phone. and quite frankly, the stock has been off to the races since.
it's nearly a triple. so, i say it's not a make or break, it's -- it is a show me time, though. i mean, have they indeed joined samsung and nokia. samsung, of course, getting all the buzz, deservedly so for the galaxy family and nokia with the lumia family. they have really hit it hard. and they have justifiably enhanced shareholders of both those companies by the sales that they put up. now we've got rim's turn and i think there's really three key points here, the first one, melissa, i think, is price point. does the z 10 come out at a price point that people want to see? we've seen people famously miss that price point. apple did it with the e-mini, i pad, that is. and you could see these guys miss if they shoot too high. i think that's a big mistake. and of course the operating system, i know you had the bold at one point, melissa, the first
touch screen that they came out with, that was not 100%. and obviously from what we've seen, that purports to be the z 10, it is, indeed, going to be pretty slick. in the operating system and the -- >> right. >> the pricepoint are right, then it's going to be good. if they're wrong, it's going to be bad. >> that berry, by the way, is now recycled. so, it wasn't that great and i've got an iphone. at this point, doc j, for people who have ridden the rim rally, tongue twister there, it just seems to make sense at this point to take off some of that position, no matter what. they come out with. >> yeah, and i think their most recent experience in apple would certainly encourage people to do that. we all know that it hit the high the day that the iphone 5 hit the stores. i think this one could have more ramp, depending, of course, again, about how great the phone really is. is it like those prototypes like
we've seen and the ones allegedly floating around at ces or is it something else? and i think it really is what we've been seeing, so, like i said, i think it's going to be a very slick phone. i think you can reload, pick it up more like 13 rather than chasing it up here to 16. >> got it. doc, thank you for phoning in. appreciate it. >> anthony, you've seen it. you were in davos and saw it. >> saw the phone, saw the full presentation. the key element of that phone, if you are a blackberry user, it does not crash. that hour glass or spinning clock that you've seen that you want to kill yourself over, that system is gone and this new system is actually working. >> right. you take a look at any stock going into a highly anticipated product, whether it be microsoft with windows 8 or apple with the iphone 5, and the stock sells off after the product is usually launched. >> this is sold off the last two days. real nice bounce off 15 which was resistance, now becomes support. the market is starting to tell you they've got a little confidence in here.
i mean, the problem with blackberry is, it's an execution problem. they have so much potential, they've been unable to execute. to have to actually have a product that works is not exactly, you know, every product is supposed to work. the question is, can they actually execute and will people buy this product and like it? >> it's about product positioning. in fact, they call the z 10, z 28, you were driving that growing up. >> what's wrong with that? >> you'd be a buyer of that. the price point is too high. this is the problem, though rim is actually a cool brand in emerging markets, i don't think they make it. they have to remain independent. they need to be an operating system independent, management company, so far, they are doing that, but -- >> timmy, if they call this product the z 28, the two of us would be out here -- guy and i would be buying the company. >> you'd have some lamb skin seats -- >> batman and robin. >> t-top. >> you want to stop? >> no more lamb skin, all right? let's move on here.
coming up -- >> tinted windows. >> green apple. shares trading higher today. a look at whether the iphone maker has finally hit a bottom. and cnbc exclusive. david barger breaks down the airlines latest earnings report. what the lower profit means for the outlook. and later, we reveal the super bowl commercial banned by cbs. that story and much more, when "fast" comes right back. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio.
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the first quarter is a bit below even their own guidance. however, they are increasing their dividend by 10% to 11 cents a share. melissa? >> thank you, bertha. this is one of those names that people said, you know what, i don't want to bet on apple, samsung, i'm going to belt on the company that get as little piece of both. >> and broadcom, i don't think it's really doing much now. i think if there's one knock on it, i think the margins are some what sequentially declined. i think the quarter was fine. >> all right. let's go to mary thompson, breaking news on chesapeake. >> that's right. the company's founder, president and ceo, aubrey mcclendon will be retiring from the firm on april 1st. the company saying its extensive view of alleged conflicts of interest and other matters involving mr. mcclendon has found to date no improper conduct. a final report will be issued in the middle of february. in a statement, the company's chairman of the board, archie d dunham said that chesapeake is in an important transition in
its history and aubrey and the broad of directors have agreed that the time is come for the company to select a new leader. the ten-year has been marked by tremendous successes and some concerns about the dealings with the company, on personal loans, exset that. melissa, back to you. >> any guesses as to why the stock is higher? >> well, if the no improper conduct comes through as, okay, he's clean, it at least implies that there was concerns while hall was at the helm about what was going on. he hasn't been named in anything, but this has been a corporate conflict of interest that gets cleaned up quite a bit. >> and basically what it does now is, if you want to invest in natural gas via this name, you can do it and not have to worry about a tape bomb coming out tomorrow morning. that's why it's up $1.50 now. >> apple announcing a juiced up ipad today that will include more memory. will its latest product be enough to put the stock back on track? shares trading higher for a second straight day, begging the
question, is the bottom in for real? for real this time? >> for real. >> because we had carter on yesterday -- >> love him. >> he published a note yesterday morning saying that it was time to buy apple, because it did a round trip to its one-year low, it filled that gap in and it was good to $525 or so. >> round trip. >> yeah. >> well, it would be disingenuous for me to say the bottom is in. i think thursday, couple weeks ago, traded down to $483, we said that, you know, for the period of time that was a great trading bottom. and it did trade higher the next day by some $30. obviously went through that pretty quickly. so, the way it look at it now, i would say, it's sort of, to me, a stay away, until well can get a close above $480. i'm not trying to be vague. i think you're flipping a coin. >> as much as i like the stock here, ten-times earnings, i do not think the bottom is in. the stock is overowned in the hedge fund community. >> still? >> i believe so, yes. >> it was one of david einhorn's
still biggest positions in the fourth quarter. >> when i look at holdings, apple is still sticking out as a sore thumb in our opinion. what will happen is, it will become a source of cash, as it trades higher. that will be a ceiling on the stock, in the short-term. love this name long-term. i still think they're going to have a huge innovation wave and be apart of the future for the teenage crowd. and they will always be that way relative toe samsung. but this stock has not hit its bottom. that's my opinion. >> what is interesting about today's announcement is, you have a higher priced ipad. by increasing the memory to 128 gigs, you have got a product line that goes from $395 with the i-min knees, all the way up to $1,000. they have a lot of price points in here when this is not what apple was doing. it looks a lot like samsung, a lot of phones priced at the low end all the way through to the high end. i'm not saying they're copying. too quick to run right after samsung. but starting to look like the same product line. >> maybe this is just a great way to not introduce a new
product, which would interfere with margins, put margin pressure on them. >> yeah, i ghesz theory that's been the big problem here, but i still think if you look at samsung's margins, 15%, ultimately, you have to think that apple is going somewhere near there. in the very short-term, for a trade, i think you can shoot against $435 on apple. you asked where to put new money to work, i think this is a place you can give it a shot. it is a trade. and use $435 as your top point. >> let's go to pops and drops. yahoo!, a pop and then a drop. >> north of $22 at one point yesterday in the aftermarket and then obviously dropped today. the conference call didn't go nearly as well. but i still think right here, i would say you buy it against. i think this stock moves higher. >> big pop for jcpenney, up 9%, anthony. >> what's happening, they are going back to that promotional strategy. ron johnson is trying to find the intersection of what's cutting edge and making it new, but also keeping the existing client base.
this could be good for the stock long-term. >> beeks? >> got downgraded this morning. vmware had a warning. if people haven't virtualizing their servers, they are not buying more hard drives. i would wait until $31 here before i started to take a look at it again. >> pop for valero, tim. >> 20-fold increase. all refiners are getting a new look here based upon this change in the u.s. >> a pot here for dr horton, up 11%. mike khouw? >> so, they beat on earnings almost six sents coming out of 20 cents a year. that's 66 million in net income for the fourth quarter. obviously very pleasant surprise for holders here, but the stock looks rich. if i owned it, i would sell it right now. >> and a pop for the whopper. some people think fast food is to die for. a pennsylvania man who recently passed away made one last stop during his funeral at his favorite restaurant, which was
burger king. >> wait a second. he made the stop? >> the driver made the stop on his behalf. anyway -- >> did he drop a whopper inside the coffin? >> the entire funeral procession lined up at the drive through and each person, including the deceased, was given a whopper jr. the king of burgers was buried with his sandwich. glad he got his last wish, i mean. >> tweet to us where guy could make his last stop. >> i wouldn't want to be at the -- i won't say -- afterwards, i mean, that place had to be a mess, the line for the men's room, like, you wouldn't believe. >> all right, ahead on "fast" -- >> just saying. >> everybody got a whopper jr.? >> anyway. >> putting it out there for you folks at home. >> coming up, the latest from the amazon conference call and a street fight goes anti-social. a look at what is really behind facebook's recent rally. we're going to talk about jet blue with ceo jeff barger. and later, the super bowl
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want to check on shares of chesapeake energy. up about 10% on word that aubrey mcclendon is going to retire april 1st this year. no improper conduct after an extensive review. a cloud over the stock has been lifted. the stock is higher than 10% right now. shares of jet blue hitting turbulence right now. the air carrier dropped 95% in profit amid risingts diminished sales. joining us is dave barger, jet blue president and ceo. pleasure to see you. >> melissa, great to be in the studio. >> so, sandy was a reduction in revenues, about $45 million. >> oh, big deal. i mean, certainly was. superstorm sandy, 50% of our network right here in new york. by the way, the storm, we were up and running in four days, melissa, but the impact into december, just the demand environment, and we're going to see that in february, too, because schools are going to stay in as opposed to president's weekend break, so, we're going to still see some impact. >> let's talk about your growth
markets. latin america, the caribbean, your goal is to increase capacity in these regions by 10% year and year this year. where are you at right now on that? >> yeah, that's now 30% of our network is down in the caribbean and latin america. and it's just before en a very aspect of the network for us. we're going to be up 15% this year versus 2012 in terms of asms. we're going to grow boston and san juan. >> your capacity doubled between 2010 and 2012. who are you competing against right now and is there any pricing pressure between you and the domestics down there? >> as we started to move our flag into that part of the world, it's been -- we've seen some changes with u.s. flag carriers. american used to be very big in that part of the world. but some of the foreign flag carriers. by june of this year, we'll be in three markets in colombia, so, just as an example. that's unheardle of when we think about jet blue just a
couple of years ago. >> that's very exciting demand and certainly stuff we are looking at every day. where else are you seeing the demand? in terms of the earnings announcement, you seemed mum on kind of where you saw the overall global demand, at least, your global, which is outside of these growth markets. what's going on in the core? >> when we look at last year, 40 cents a share versus 28 in 2011 and the impact of superstorm sandy right in our backyard, so, we're really quite pleased with the performance of the company in 2012. boston has been off the charts. we're approaching 115 departures this summer, trying to take it to 150, plus in new york, plus in florida, plus the caribbean and latin america. all those areas, we are seeing solid demand. >> i know you don't traffic in, but the dreamliner has been in the news extensively over the last couple of months. how do you feel about your fleet, the fuel efficiency of your fleet, how you stack up to your rivals? >> guy, terrific airplane, the 787. when we think of boeing and the
faa, that's going to be a great airplane. our fleet, the a-320s, we have the youngest fleet of the major carriers in the united states. and we'll start to take, this year, 14 new aircraft and most importantly, sharklets on the aircraft. we think that is going to improve fuel efficiency -- >> the tips of the wings to make them more streamlined. >> we'll see them in the airbus fleet. we closed the year with 130 airbus aircraft. that's a lot, right? so, it's going to make a big difference for our company. >> in terms of the super bowl wit, is this going to be a positive for the quarter? you are adding flights between baltimore and new orleans, serving what, hot buffalo wing pretzels on the flight. >> it's just great to have the tvs on the airline. in fact, this show is on channel 15 right now and we're going to carry 80,000 customers today. we think about "fast money" at altitude, or the ability to really promote the super bowl, the battle of the harbaughs, if you will. >> only channel that works?
>> only cnbc on the flight. >> and melissa will keep inviting you back. >> i love it. the big events like super bowl, it does help us. we're not real large in new orleans but the ability to go in and add extra flying from baltimore, washington international to new orleans, that's a big deal to drive loyal till for us. and we can do that. we can move quickly. >> dave, great to see you. thank you for stopping by. >> great to be here. >> dave barger, president and ceo of jet blue. what do you make of the quarter, the stock? >> well, dave mentioned the quarter. disappointing for the reasons he talked about. the stock did not get blasted today, given that quarter and it's had a nice run over the last few months. we liked the stock before. it's starting to now. and i still think if you want to be in the airline space, if you are looking for beta, the stock can provide you with some. >> coming up next, speaking of the super bowl, a super bowl reject. we are have veechling the tv ad cbs did not want you to see during the big game. we have it. we'll show it to you. that's straight ahead. but first, anthony and guy spar over facebook.
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facebook's reporting earnings tomorrow. they are up more than 20% over the past month. could tomorrow's results boost the stock even higher? time for a good old fashioned street fight. anthony is our bull, guy is up to bat for the bears. >> sure. >> so, anthony, kick it off. bull case. >> i think this is the amazon of social media, where amazon came public 15 years ago, it was picked on, didn't react well. and the reason for that is, they were taking a very long-term approach. and i think that's happening at facebook. three quick things. a billion users, they have a great installed base. the right management team to mind those users. you are also going to see the news feed ads double from the third quarter levels. and this stock is going to explode on the upside. this is a $50 stock. you guys know i don't like high multiple stocks. but this is at the right space at the right time. >> bear, speak. >> people say, how can you like amazon at their ridiculous valuation and not like facebook at 47 times. and i'll say, you know, revenues
expect to be a billion and a half dollars, up 34% year of year. given this stock, it doesn't justify that kind of valuation. coupled with the fact, again, it's all about mobile monetization. they said they did a good job last quarter. seemed to indicate they're doing a good job. i'm not convinced they can come through on this, and this whole f-commerce, you hear about that? i know you have to be careful with f-commerce, but a company, did you see these guys? they were supposed to be the retailers going to sell things on facebook and they closed up shop yesterday. so, a few things that make me bearish. i can see the stock being up 10% tomorrow and me coming on and getting fast fired. i can see them coming in disappointed, the stock trading down to $29, $30. >> i would call guy an ignorant -- >> you just did. >> his name is not jane. >> closing in on 50, i know he isn't one. but here is what i'm going to say to viewers. this stock is in the right place at the right time and look for
upside to $50 a share. >> yeah. tim, what do you say? >> as much as the first use, i think, ever of the s-word on "fast money." >> i'm pretty sure we used that before. >> it's a family show. i actually agree with anthony, but -- >> he's talking. >> $1.6 billion is the revenue expectation. a heightened expectation, i think the street is too high. they have gotten too high on this. i'm going bear. >> caveat. nice. >> yeah, yeah. beeks? where do you weak in? >> i have to go with my man anthony. if you are in facebook, you have to think that mark zuckerberg is the next stephen job steve jobs. buy it. put the shares in your drawer and wake up 20 years from now. >> tie then. mike khouw may weigh in. he's on the options desk and actually we're going to go to him, because mike, how are traders -- >> remember, you are a -- >> yes, i know, but unfortunately, i can't stay with my alma mater on this one. i'm in guy's camp. and so is the options market. they have been expressing bu
bullish sentiment, but today, it traded about 150% of its average put volume and about 93% of its average call volume. one of the places we saw activity was the march 28 puts. that's that the stock could decline maybe as much as 12% by march expiration. i don't see mark zuckerberg as steve jobs. hem has a lot of proving to do before we can throw that label on him. >> sounds like maybe guy won. >> for now. the market will be the ultimate juror judge, but for now, we'll see. >> tight on that. nice. >> what do you do when your company's first ever $4 million super bowl commercial gets reje rejected? that's what happened to our next guest, when the ad you're watching was banned by cbs. the network hosted this year's big game, of course. for more, let's bring in the president of soda stream. so, this is the actual commercial that had been rejected. and there are some reports by advertising age it was rejected because it was too provocative.
it took pot shots at coke and pepsi, which, by the way, are super bowl advertisers in major ways. what was that the reason? >> when we made the ad, we thought it wasn't going to be rejected. it is a play on prior ads that coke and pepsi have done with the delivery guys that play after obvious each other. we were pretty surprised that happened. >> did you feel you got big footed at all? pepsi has two 30-second spots, coke has one 60-second spot, which is prime real estate in the super bowl. >> we made a decision when we decided to do the ad on the super bowl. smart business for us to do it at this point. we are placing the ad towards the end of the game by design. you are going to see a lot of sew la cola ads. when you see it at the end, you don't have to buy anything. you can make it at home. >> you had to recut the ad. let's look at this ad. i believe this is the first time that viewers will see this ad prior to the super bowl.
♪ >> make your own soda with soda stream and save 2,000 bottles a year. if you love the bubbles, set them free. soda stream. >> of course, that was a commercial you guys out there, will watch that when you are watching the super bowl. walk us through the decision, because obviously your pockets aren't as deep as coke or pepsi and according to some reports, this is a third of your advertising budget for 2012 spent on this one spot for the super bowl. in a way, is perhaps rejection by cbs the best thing you could have asked for, because there are so much more chatter about soda stream now that the ad has been rejected if it went ahead and just aired as a 30-second spot. >> genius. >> we had the situation in the uk recent it will where an ad
was banned. >> exactly. >> at the time, our youtube hits were 40,000, now, it's closer to 30 million. it is good to have buzz out there, but it wasn't what we wanted to do. we wanted to get the ad out there. what you just showed now is an ad that we're going to be refreshing a little bit for the super bowl. it's going to have a little bit of a different feel to it, but we're really excited about the opportunity to get our name and our brand in front of over 100 million viewers. the perfect time and the perfect venue. >> last question here, i know you are in a quiet period ahead of earnings coming out in february, but oppenheimer did come out with a note, saying that they believe that you guys had a very strong, in fact, this is the quote. excellent fourth quarter world wide and a very strong holiday season in the u.s. partially because of the rollout of the new source machine and that analyst cited conversations with you. so, is that true? is that quote accurate and can we expect a strong fourth quarter? >> it's accurate. joe did a nice job in his note. we met, i was on a road show recently and we did have good sellout in the fourth quarter. we also had recent pickup by
citi and barclays, both at pr s higher price targets. >> let's get the trade here. guy, what do you say? >> it's a huge short interest in the name and the valuation, 19 times forward earnings, people say -- that, to me, isn't ridiculous enough to have a north of 50% short interest in the stock. so, you could easily see on a risk-reward basis a huge short covering rally in this name. just on risk-reward, into earnings, i think you can be long the name. >> on valuation, people are really having a tough time gauging the growth. as jonas said, these gauys are going into a mass advertising blitz. and their penetration in the ums may be way underestimated. so i don't think people can gauge it at this point. coming up next on "fast," why we may be on the verge of a new housing bubble. but first, jane wells on the hunt for the best business stories in the golden state. jane? >> melissa, we're going to talk about gambling, we're going to talk about food and one man, 19 years later, still stirring up
controversy and people are still trying to cash in. only in california. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
from mobile devices to medical marijuana, we've got you covered in the west coast wrap. jane wells? hi, melissa. las vegas sands shares fell 3% ahead of earnings. some blame a deutsche bank downgrading. and on concerns that gambling in vegas may not be as flush in 2013 as investors hope. the nevada gaming control board says nevada casinos lost a combined $1.2 billion in 2012. better than the $4 billion loss the year before, but lazard is upbeat. melissa? >> what's the trade? >> hi, jane. how are you doing? >> hi. how are you? >> wait for them to report. hope it's a bad number. try to buy this thing. i think now, you're getting towards levels where it is worth owning the stock. and don't be downgrading las vegas. anthony and the sky bridge folks, they're going to be out there, salt conference. >> that's coming up. >> that's going to jack things
up. >> yeah. >> anthony does a great job out there. >> put it all on black. >> or that. >> all right, jane, let's talk wings. >> all right. wholesale chicken wing prices have been rising every week this month. now topping $2 a pound on the benchmark georgia dock. that is the highest price in six years. fallout from last summer's drought. americans will allegedly consume 1.25 billion wings -- we couldn't find wing video, so, we had to find chicken video. 1.25 billion wings. that's four wings for every man, woman and child. really? here's the secret i learned. restaurants have better profit margins on boneless wings because those aren't really wings. they are leftover breast meat. >> i thought they raised chickens without bones. >> that's sick. >> brian kelly, the expert in the meat space. >> slowly carving out an expertise in the meat space. >> get it? >> after that last graphic? >> i tell you, the trade on this, everybody knows about the grains, i love the grains, but i'm going to go archer daniels,
adm. watch out for them on earnings. you have problems in the mississippi, there's a shortage of corn. that product of theirs cannot get to the market, causing this chicken wing issue. watch out for adm. >> jane? >> okay. finally. all l.a. stories lead to o.j., at least in my career, they have his book, "if i did it" explaining how he would have killed his ex-wife and ron goldman if he done it was quickly recalled in 2006 and the books destroyed by news corp. now, it appeared a hard cover original has survived and is on ebay for a quarter million dollars. no bidding. you have to buy it now. no one has. the seller goes by the name starstruck and has a good feedback rating. melissa, i think it's kato kaelin. >> oh. >> kato. >> wonder if a.c. is going to be doing the shipping? a.c. going to be shipping that package, possibly? >> what? >> i saw him at the bagel store.
>> who is driving the bron>> i . not too long ago. >> really? >> did he say, hey, you're jane wells, right? >> no. we looked at each other, like, oh, yeah. >> i know who you are. yeah. >> all right, jane, thank you. coming up next, who is feeling the heat in our good, bad and ugly? be right back. ♪ [ male announcer ] don't just reject convention. drown it out.
fast or fiction? the fed is risking another housing bubble. home prices are on the rise for the tenth straight month according to the latest numbers. the index showing a 5.5% rise in home prices for the year before. while the fed continues to hold interest rates at historic lows. so, fast or fiction? the fed is setting up another bubble in housing? anthony? what do you say? >> i think it's fiction. ill think you had credit risk last time, you had very easy money in the housing market. that created this excess supply. i don't think you have that now. what you do have is easy money from the fed, but the underwriting standards have been incredibly tight and when things eventually do adjust upward in the housing market, you'll get -- i don't nope what that buzzer is, but i'm going to keep talking anyway. okay. but when you eventually get the
clearing prices, you'll see more sellers. >> i can see anthony saying that sitting in his z 28. >> let me get in front of the car and tell you that. fiction. >> fast or fiction? >> fast. i think if you get to a place where there's very little else -- we're in an environment of financial oppression. people cannot save. people cannot put their money to work anywhere else but the equity market. this is what the fed is forcing you to do and not everybody wants to do this. people are taking free money. they are putting it into real estate. i bet those numbers go higher in the next couple of months. >> by the way, the sound effects immril when somebody says fiction, it's a buzzer, when it's wrong, fast for fact, it rings like it is right but they're just making -- >> i thought the buzzer meant i couldn't talk anymore. >> it's sound effects, but it doesn't necessarily mean -- >> trade school. >> some people might be listening on sirius xm and not understand. >> i'm sure that buzzer wasn't going off when you are sitting in our z-28 back in the day. >> all right. that buzzer is for wrong. let's play the good, the bad and
the ugly with guy adami. first, the good. netflix, it's a trade that guy's been sticking with since november. ♪ i still think it has room to 84. i'm wrong below 84 and i understand that's a ways away from here but i think this stock could easily trade up to 105, 110. i'm in the bull camp. >> this is one of the best calls you have made. stock is up 110% since then. >> i'll be honest, i didn't think it was going to 170. we talked about it at -- >> blind squirrel? >> surprised to go to 150 and obviously got there. now, if you've missed -- if you've been away from this, you woke up tomorrow, flew down from planet mars, now is not the time. i think you get another opportunity, but it's not at 169. >> maybe if you drove down in your -- >> from mars? now onto the bad. back in december, guy weighed in on whirlpool. take a listen.
>> whirlpool was a -- at a 5046 handle in july, now that strong is trading either side of 100 bucks now. it's been a monster move. one has to wonder if it is in the name. >> shares of whirlpool are up about 11% since then. >> you know, pety liked that one. >> you are trying to reel him in? >> no, he's good. if he was bad, i wouldn't say word one. that's the way i roll. >> that's true. >> i was wrong. so, they report -- thursday they report, we're going to find out a lot more. i thought it topped out at 101, i was wrong. but i didn't like it -- >> street fight with that -- >> we never broadcast the street fight. >> yeah. >> good job. >> what is the essence of this, the good, the bad -- >> and the ugly. >> so, what's the ugly? slide it, earl. what's the ugly?
>> now, this is yesterday's -- mantyhose. >> mantyhose. >> or guy- -- >> am i either about to do a pole dance -- >> pole dance. >> or am i showering there? >> for a second, i thought you won the moasters. i was going to congratulate you. >> that is very ugly. very ugly. and i like the pole. nice touch, englewood cliffs. >> he's standing next to a pole. >> clean up the mirror above me, please. shine that up. >> we got your first move tomorrow when we come right back. stay tuned. (announcer) scottrade knows our clients trade and invest their own way.
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