tv Fast Money CNBC February 14, 2020 5:00pm-5:30pm EST
it is mr. buffett as opposed to his portfolio managers he is playing with a lot of house money in the apple stake sprinkling it around. >> or you noted that he did not sell off more. >> it would have been big news if he backed off the apple stake which he has not apparently. >> all right have a happy valentine's day a three-day holiday weekend as well that does it for "closing bell." >> "fast money" begins right now. yes it does, happy friday. live from the nasdaq market site over looking times square. this is "fast money. i'm brian in for melissa lee traders are tim seymour. jeff mills welcome brian kelly and steve grasso tonight on fast. shares of canopy growth sparking a rally in the pot stocks. why bad news is not so bad news in this sector we'll dig in plus for your chart of the week we look at a name we all kind of left for dead not long ago well maybe not everyone around the table. is the current rally for real?
we get answers and love, exciting and new it's in the air this valentine's day. but wall street is sweet on a couple of stocks. >> nice. >> will they be lasting romances or are investors flirting with disaster we are doing a like or not, or hot or not like a would you rather. >> swipe. >> left or right, whatever it might be we don't care. all that ahead but we start with some big breaking news on the biggest name in investing. who else but warren buffett. the latest filing from berkshire hathaway showing outsize moves from omaha her here is the rundown to berkshire started new positions. kroger getting a pop 18 million new share stake over the quarter. biogen over the new stake. and berk shir bought the spy and the voop ber berkshire remember it it could be warren, todd combs, doesn't mean warren
himself. berk shir raised stakes in general motors, occidental petroleum. resortation hardware and sun core energy. by my math he sold a massive 60 some million share stake in wells fargo and trimming goldman sachs, tim seymour, there is more to dig into here. what if any of the moves sticks out to you. >> the move in kroger certainly is interesting because first of all kroger had a massive move in year end depending on again you get the information it's dated in hindsight. but you knowthe question for me -- profits in supermarkets are going one way. look at this going down and ultimately you have a dynamic where you have a very overstored competitive landscape where i think we know all the big box stores are involved. i would not be a major buyer of kroger here. but i think there's been a turn around there and a margin story. and you have to give the oracle of omaha the ability to say, across all of his different properties they must be seeing
something. i believe that that's part of the insight you have when you are berkshire hathaway is to see through other portfolio companies into others. >> the one thing about the 13 fs we have to remind the viewers. they are back-dated i want what they owned at the quarter. but the berkshire ones are different and maybe better because they are longer term >> that's right. >> these don't change quarter to quarter. there is a byrd in here. this is like animal week dogs and birds kroger, are you shocked by that? i'm not that shocked by kroger as i'm more shocked by the bird behind us than i am by kroger. >> by the way it's a love bird >> oh there you go. >> badump, peak tim there. >> so good continue with the more. >> kroger of all the names he is involved in doesn't surprise me that much because it's- this
seems like a classic buffett story, he bets on things that don't change that much you always go to the grocery store. things that pay a dividend yield. 2.7% prior to the big move that's better than treasury bonds. that's a classic buffett move in my opinion that doesn't surprise me i find the selling of wells fargo and goldman sachs kind of interesting because they finally juft got momentum here so he sells into that momentum and again to your point, brian, you can look at these and say all right, if berkshire is getting into it he is saying something. he said if the stock market closed five years i still want the positions. you can say these are long-term positions for him. >> for me, we're assuming it's warren i don't know if it's warren. it doesn't feel warrenesque to me wells fargo and goldman, feels like the changing of the guard. >> those are residual from the
financial crisis 60 million shares of wells fargo. >> feels like a different environment. fweels like getting rid of the financials is not a warren thing to do. the -- i'd rather be a buyer of the ibb versus biogen. has he ever bought a biotech. >> that was a surprise. >> i don't know, jeff. that's interesting and we don't know if it's warren could be todd combs or somebody else but a new confiscate in biogen. >> i was surprised too you look at the name that volatile doesn't look like a stock they typically get involved process in. look at the ibb as an example. it struggled at the 122 level. i think the days and weeks coming are telling for the sector if you look at biogen ten times earnings, you can make a valuation argument there and the chart looks like it's hooking high are, 200-day moving up a bit i can understand a catch-up trade biogen versus the overall ibb we'll see. >> do you take any solace in the
macromarket anybody that he bought a number of shares of the spyo spi and voo. >> he is constantly long constantly long. you can't take any short or medium-term signal from what warren buffett is doing buying the market because he is buying that for 25 years. >> isn't this what we've been talking about. we talk about liquidity in the market warren buffett -- whoever is making the call on the portfolio they are in touch with the liquidity trends in the overall market we talk about with the federal reserve and how it's flowing into passively they're in the passive per se. they are long-term but i do think this is almost a balance sheet management, treasury function when you see them buying. >> he always tries to mimic the market i guess you stay in line with the benchmark. >> quickly notable talking about esg investing. he added to occidental and sun core. >> he didn't get the memo in omaha. >> it's valentine's day. >> it sure is. >> love is in the aaron "fast
money" along with a bird that got us thinking about the most loved stocks on wall street now these companies have the most amount of buy ratings in the s&p 500. many names on your list. amazon alphabet, facebook of course are the ones with the most analysts so the most ratings. but pioneer natural resources and diamondback energy, the original fang on the list. are these names two love for investors or heart break. >> we have debates. lets begin with amazon most loved in the s&p. 45 buy ratings, zero sell ratings, grasso true love or heart break. >> this is heart break "fast money. i've been wrong because i thought this was the investment cycle where that sells off. >> what's that. >> that's an excellent sound there. i believe it's getting contentious between the white house and bezos longer than it already has been i think ultimately this one will break your heart in the long
run. >> i think that's a fair point for second half of the year. but i love the breakout in amazon when you talk about the stock like this momentum matters. this is a true love for me 37 the bird tweets again. the traffic is the zblierd it's a sign. >> i agree on the technical side you have the double top in 18-19 looks to be breaking out to the upside. >> true love. >> true love i love it. but the thing about it from a fundamental perspective you got michigan consumer confidence same came out this morning good. retail sales solid overall the consumer in a good spot technically looks good and goes higher. >> lets switch to visa 33 buy ratings and one sell jeff, is the visa trade true love which is represented by a bird sound or a heart break. >> true love for me. i like the payment space look at global payments as an example, you're at 43% of global payments ex china digital.
up from from a year ago. i think the two names are positioned for it. yes you can argue they are expensive relative to history. but you have revenue as well as eps doubled the past five years. i think there is room here. >> and i think that at least jeff is where i have to find my heart break in visa. i think if you look at the -- right. that's awful everything about it is awful. >> it's awful. >> but if you look at visa's multiple it's not awful. but trading three-year premium to average there is no questions payments re-rated visa and master card have been heart -- not break what do we call them -- true love charts for every valentine's day the last five. but looking at the dahms right now at some pinpoint first of all incredibly competitive landscape competing on multiple fronts it's a valuation call. >> tim staying with you and look at energy names making the list. diamondback energy, the original
fang true love or a heart breaker >> well i think in the case of diamondback with the tick are fang this is definitely true love if you believe that -- can't talk over the bird you can't talk over the birds. what we see there is free cash flow generation. seeing capital discipline. it's what we talk about the better names in the space you have seen this chart begin to find a bottom. you found a place where management is running the company for equity investors if you look at the street actually there's been a number of turns for the sentiment in the stock from the analyst community. there is a bunch of overweights in the stock and i join that with true love. >> for me a heart break. timing makes a good point -- this is just a horrible sound. >> loo did that recording. >> somebody on the team. >> it's got to be. >> anyway, anyway on this it's more about oil here. right? oil the chart of oil looks terrible the fundamentalson oil look
terrible i don't want to be anywhere near that we had a war in the middle east and oil couldn't get out of its own way. for me a heart break not a heart throb. >> we'll see this. china could be down by three or four million barrels a day finally microsoft. jeff it's been a true love. still a true love. >> or heart breaker. >> for me a heart break. but lets be clear. a near-term heart break. break up and get back together sort of story. you can't argue with what management has done. the business is great. i think long-term it's going to be a goodbye but at 30% above the 200-day moving average it's more vulnerable than other names if there is a problem via coronavirus or other catalyst. >> this has to be true love. when you look at the stock the it's unbelievable on the chart broken out about more cloud than the old legacy business. this thing -- i thought it was get fog 185. the way it ripped through 185 the other day. i think it gets to 200
they are the other side of the jedi contract but the near-term headlines or headwind but i think ultimately it's higher. >> this says a lot about me. but i'm not playing the game because i hate commitments i wouldn't want to be a heart break or true love on this because this stock to me has been representative of a turn fundamental call, a services revenue, a cloud revenue that's very exciting. but it's been a market proxy and again i think getting married to that right now is something. >> maybe just a crush for you. >> i have trouble committing sometimes. doesn't make me bad. >> by the way, i think i figured it out the bird noise has to be the agapornis. >> better known as the love bird, a small parrot. >> how about john paul young. >> that has been to. >> that's what it is or the bird flying around. we've been talking about wall street's most loved stocks but the chart master has two names that could use some
serious love corner stone macrocarter worth. >> and unloved. >> two duds. lets see if we can find love and two circumstances. hal burton, a well established downtrend. once in a while it starts to end. whether you call it head and shoulders bottom or put in the trend lynn, a break above the trend line and then put your head and shoulders in. the point being that one way to act act onsomething unloved is someone started to love it and we can jump onboard. another, look at dupont, these stocks are the same in percentage of decline. not only had a breakup but in full depression on the breakup i'm making the bet you throw back towards the level from which you broke. now, again a second chart exact time frame and watch where the -- it's right to the bottom of literally the channel. and we have consistently and reliably moved towards the top i think that's the bet
so two duds, one bottoming, the first one making new lows. but look at the one-carrier performance, of course they are identical. there is the s&p up 23% dupont and hal i burton both down 28. totally different patterns one bottoming one making lows. they need a little love and right to love them. >> carter worth on dupont and hal i burton carter on "options action" in a couple of minutes. >> we love carter. >> i like the sweater today too exactly. the gap called jeff mills do you like either name. >> i'm with bk on the energy story every time i start to fall in love with energy i get heart broken it failed again in the beginning of the year. oil is structurally in the band where the commodity doesn't move higher on dupont i like more from a technical perspective because it looks oversold opinion and i could get behind the snap back up to 200-day moving
average. >> good stuff, jeff. pot stocks surging thanks to canopy growth. is this a sign the worse worst might be over for the this sector and the energy sector, could it fuel a major rally we are breaking down what's going on in the long struggling space and whether or not it turns around watch us live anywhere on the go on the cnbc app. download it today. download it today. and we're back after this. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. nature's bounty. you leave it to me. i'll get your taxes in an ok place. just as soon as my audit is over, this gets my undivided attention. you take a lot of trips to the islands, phil? pretty great, right? oh phil's legally dead. fell off a boat. going by denis now. celery. long story. what do we got here. oh. not going to want to see this. i don't think this is going to work.
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all right. all right. all right. lets talk about the cannabis stocks all finding somebids today, thank you. canopy growth. canopy ending the day 13% higher lets be blunt. it's been a rough couple of weeks for cannabis investors is this a turn for the volatile sector. >> just to be clear canopy growth outperformed the s&p by 3% since the middle of october has the sector put in a bottom are valuations exciting? not really in terms of the addressable market for the whole sector i think the macrois better than expected canopy today told you growth gross margins are better
and beat on revenue side it's not just the core cannabis business but even ancillary and brands they build out. the bottom line is a senior management team coming from sconce slayings brands and at the helm of the company with 2.3 billion in cash and talking about discipline from an assets allocation and bringing things more in line great news for them. great for the sector i think this is a stock that to be clear it's the largest position in my mind. it's a stock i keep owning here. >> this is almost the same way you play the energy space. it has nothing to do with the space sector but looking at these every time they catch a bid you get hopeful and then they chop off your knees. but both canopy and the sector has been build agonize base. and i think that it's about liquidity and branding as tim said it's about brands you own not just grow. but getting attached to someone who has a bankroll for cash flow
so you can't go out of business. a lot of the little players will be gobbled up by the bigger play was jvs with bigger entities. >> the base formed is a little bit different as you mentioned because that tells me the sentiment is changing. these have been bombed out hit skid roe no turning if tim tells snee. >> inspecten >> exactly and the fundamentals, if you are telling me they look better i think can you trade these at this point in time. >> i agree the industry is a long-term growth story i think the momentum is there. we are going to full legalization at some point i think it has to happen this early on in the industry life stoik it can be difficult to pick the horses you see it the.com bubble. you see it now i like the path to profitability, rationalizing investments with the size of the market and growth any see. as the industry matures the company are understanding the economics better i think that's good for overall volatility i prefer to play it with
constellation with the big bet but strong business outside of that as well. >> tim, quickly, is this a mature segment or really just the youth gone wild. >> the balance sheet rationalization forced upon the sector because there is no new capital and a no institutions is good for the seccer. forget about assets valuations look at cash flow, profitability, we're seeing that we could talk a long time. i'll simply say the top down story is good for the secretary are. find goot operators do your work on the names. >> head to to the ebts website for more on the seccer here is what else we have coming up. >> it's friday you know what that means time for the chart of the week we'll look at one name that's turning into the unlikeliest of safe havens. later on "options action." coronavirus fears may be rocking the boat for the cruise industry but one name may be able to avoid e orthstm.
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welcome back and happy friday happy valentine's day you "fast money" friends it's time for the chart of the week check out that rally chewing along. >> what is that. >> well it's not a stock you know what it is, bk. >> i got a hunch. >> what is that. >> i think that's the bitcoins. >> oh. >> yeah the big yellow coin. >> 44% this year up. >> up over 70% last year best performing asset out there. here is what's going on with it. talked a lot about last year we are getting the havening the daifl supply cut in half in
may from 18 million to $9 million a day miners have stopped selling inventory because they want higher prices and expect that. you also see with the momentum a lot of institutional investors increased activity here. it's still a trickle, not a flow in but you are seeing a lot of people come in and say you know as asset class as digital gold this is where you want to be the address growth is running at 9%, 10% the last 30 days you can think that with twitter as daily active users. when you see the addresses growing, that means the fundamental are improving. those three things. >> are you buying others lie coin and xrp doing well. >> it's what they call an amount lt coin rally. you look at ethereum has done well smart contract like cosmos and
eos has done well and i think they continue. >> bill raggy. a lot of people made money in crypto if you time it right. time for the final trade of the week around the horn. tim kick it off. >> the energy discussion heart break in there i do love oil services at least hal i burton the leader in the u.s. on shore and dynamic year where free cash flow doubles from last year to next year look at this one >> okay. jeff mills. >> we talked about earlier but i like amazon here i think from a technical perspective it looks like it's breaking out to the upside the consumer continues to be in a good spot. amazon. >> that was one of the true loves. amazon, you don't feel it's overvalued or too hot. >> not at this point it's put in a two-year base. hasn't gone anywhere a long time i like it on the breakout. >> bk. >> look for me at at the macro copper predicting bond rates starting to say that 10-year rates should be higher here.
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it's 5:30 p.m. at the nasdaq on friday. that could only mean one thing it's time for "options action. here is what we have come up for you tonight. >> announcer: the energy market hitting a giant oil slick this year but the chart master says a crude comeback could be in the works. he drills down on the charts plus cruise stocks hitting rough waters but mike khouw sets sail on this name ahead