tv Fast Money Halftime Report CNBC January 27, 2022 12:00pm-1:00pm EST
marcela claure the former ceo of sprint that put the merger with t-mobile together. there has been the founder mass hassan overpay and claure were seen as top candidates to replace mass hassan and he has a 300-year vision and not close to retiring, carl, perhaps. >> we'll see what apple says tonight. let's get to the half. carl, thanks so much welcome to "the halftime report." i'm cot wapner front and center, the fed and what happens to your money now we'll get to the investment committee today. joining me for the hour, degas wright, bryn talkington, jim lebenthal, steve weiss, and john najarian co-founder of
marketrebellion.com. the dow is up 470, real interesting market activity since the fed chair made the decision, made his speech yesterday and certainly answered questions at the press conference there's the s&p, good for nearly 50 that's better than 1%. the ten-year note yield is at 180. so we've had a tick-up in yields since the meeting. rob sechin, i don't have you for all that long today, so i want your thoughts on what we should be doing in the market now that the fed has spoken >> i think any time you have a volatile day and when i mean volatile i mean to the down side you have to take advantage of that and it's something that we recommended to our clients on monday that said, i think you have to be mindful of the fact that his job is not complete and there's likely more volatility to come he's naturally going to be data dependent. that's what he talked about. my sense is that this -- that this is a man who is behind the
curve and he needs to make sure that markets desensitized to the fact that rates are headed higher and there's going to be a balance sheet runoff so as markets digest that, i suspect that we have not seen the lows now that said, i know i've been pretty different than farmer jim who said that was the low. we've seen the low i hope he's right because our forecast for year end is that the stocks can end higher and the path traveled to get there and we want to make sure that we're positioned in a way to really take advantage of the volatility that we think we're going to continue to see in the short term, and this is not an easy job for this man. i am telling you, you have to focus on inflation that's clearly there and not upset the global paradigm. by the way, the fed sets the tone for everywhere else they need to be more hawkish, scott, than some of the other countries around the world which is why we're pivoting in that
direction. the policy was never eased as much there and it doesn't have to come in as much and those areas are cheaper. sothose are some of the things we're thinking about and we think we have to be data dependent and reactive >> so jim lebenthal, since rob mentioned you and you're near the bottom in the day, the chief technician over there and mark newton says, and i'm quoting now, the reversal of stocks likely means a re-test has begun which should take spx back down to test and even breach monday's low by a small amount. key levels to mind carefully, mind your 4287 on the s&p which if breached should move down to 4222 and down to 4180 to 4200. are you comfortable still, jim, with that call >> yes i'm going to stick with the call mark newton is a very talented,
technical manager, but i'm looking more at the fundamentals and importantly, the market sentiment and we wake up this morning, scott and the market, in my opinion, there will be five sequential raises, which if they do it that means the fifth one will be some time in the fall, september, october and trying to predict what's going to happen? i think it's folly i'm comfortable saying that they're going to raise rates in march and they're going to be data dependent thereafter. i do think they'll raise more, but i think for the market to get worked up about five rate hikes is wildly premature. that's what knocks things down on monday. we may go lower from here, but monday is the low and more importantly, this is a time to buy, period. >> i want to make sure, you did listen to fed chair yesterday, right? we're not only talking about the
prospects of rate hikes, we're talking about simultaneous quantitative timing than the market was prepared to hear yesterday. jim, amid suggestions that the fed chair was going to throw a dovish bone to the market. not only didn't he do that he was arguably more hawkish than the market expected that he might be >> i see it differently, scott i see what he said yesterday to me, what he was saying is i don't know, and the market doesn't like to hear that, but that's the truth of the matter inflation got away from him. he and the committee are taking the steps they need to to rein in inflation and i heard him say the path is not knowable by anyone, him, the committee or market prognosticators and it will opinion data dependent on what will happen with inflation and i have to take him at his word and by the way, the indications that i have, whether it's goods or labor is that
inflation has topped out and is ready to sit lower >> i don't know. look at oil prices, owners' equivalent, rent suggests it may have topped out in certain area, but in the picture as a whole in terms of inflation that's not necessarily the case pete, you're a, you know, a nimble guy in the market and the market has been forcing people to be nimble because it's been volatile of late so 24 hours or a little bit less since the fed, 22 hours or so what are we to do today? >> and we've round tripped, right? this is below the levels of the fed and the fed got below the numbers and leaving it unchanged and obviously, about a half hour later that's when the market started to fall apart and we completely reversed and just again and again and again, this
has been happening to us i think jim bold to think that we've seen the lows and that's it i don't know about that, jimmy i would love to agree with you and i don't see it i see a volatile market. each and every day i'm seeing more and more volatility in the indexes themselves in terms of buyers of being looking for even more volatility to come. usually with more volatility, a lot of the time that does oftentimes happen when we're on the shots to the down side so i don't know that we have i think we can easily test it again. maybe we've reached through that level where we were just earlier in the week, but the reality is we do have inflation and we all know that. we all are looking at the prices of oil and that's the easiest one to measure day in and day out as we go through things and that doesn't mean there aren't opportunities out there, scott and you can't find names on there that on the dips have come down significantly and not all of them because we talk about the high multiples and i do think there are quality names
that now have gotten themselves into a position where now we can feel more comfortable about buying some of those names it doesn't mean we're buying the low, but you're at least buying quality names at a huge discount from where they were a month ago, six months ago, whatever the case may be and that's where the opportunities are in the market and with that implied volatility being that much higher you're able to sell options against long stock positions with huge premiums far what you were able to do somewhere between 16 and under 20 somewhere in that sort of a range. you're you in seeing double that, and double the implied volatilities to sell positions >> i just wonder, bryn, if the field of play, so to speak, has narrowed considerably in term of where you're able to find stocks that are attractive in this new fed regime if you want to refer to it that way i was thinking about a tweet
that cramer had last night where he suggested in taking a look at 3,000 some-odd stocks that were a dozen or so that seemed to be attractive there's the tweet there. powell killed the fed put. i have to be very exacting now and as i showed you tonight out of 3,000 companies i could only find about a dozen i liked in this new world i heard from a notable hedge fund manage suggesting fed put is dead. what about what cramer is tweeting about >> yeah. i think it's definite ly a narro market when energy sold off and it was really quick when it came back and sectors like energy which we've been early on and overweight for two years continue to go into that narrative you're talking about a narrow market, but in our portfolios, i've spent a lot of time over the past couple of years talking about covered
calls and the strategy we have about a third of our equity exposure covered call strategy because not only are the volatilities going to give you more on that premium and you get high-quality names as well, so i agree with you. i've been thinking about the marty zweig adage of don't fight the fed and that's where we've been the last two years, but the fed is clearly being more hawkish, absolutely and the market is struggling with, well, if we didn't fight the fed the last two years and the market went up, aren't we fighting the fed right now? gdp will be aligned and gdp will grow and it's going to be a choppy year 100% i like covered calls and i do agree with the narrow lane we like energy and we have to pick your spots. >> i ask you this all of the time, and i'm going to again, and i hope you'll forgive me for it, but you have that exposure to the ark funds, right? and they've been hit e special
leigh hard and cramer again this morning was suggesting if you have exposure to those kinds of stocks that you should have the opportunity that the market is providing you on days like today and get out and just sell them altogether because they're never going come back, certainly not to the degree at which they were before they had this upset period what do you make of that are you still inclined >> i know it's a small position in what is a much larger sea in which you swim, but are you inclined to get out of the water altogether as it relates to that >> first of all, no. i think this is a classic case study in sentiment because just two years ago certain people were saying energy is uninvestable and now everyone is falling all over themselves to invest in energy investors need to understand how quickly things change, and i've talked about this. over the next few months and it could be over the next year, those type of high beta, high-growth names and small-cap
growth names will struggle, but just like when the tech bubble burst which was carnage for a few years, there are a basket of companies that will continue to innovate we originally allocated to arkk which we thought was the best ideas portfolio because we wanted venture capital exposure, but with the rigor of the public markets, and we felt that was the best mechanism to do that, so i think sizing is important as you know, it's a smaller position, and we're just going to let it sit, but i do think the end of the year looks very different than where we are right now. gdp printed, what? for q42021 at 6.9% i'm going to guess q4 2022 is more than that so i agree with jim as a trade, i wouldn't be stepping in there and taking big positions in these high growth names, but to say they're never going come back is just like saying energy
was uninvestable in 2020 >> sure, but there's a difference between something not being investable a couple of years ago and the fundamental environment has changed. it's different when you're talking about stocks that were already trading unlike energy was back then at astronomical valuations based on the bigger picture you can ever imagine in terms of growth and where earnings were going to be and now to such a large degree, there is a bit of a difference in the way that you could have looked at energy and two years ago, for example, and the fact that a lot of these stocks have come dunn so significantly they may never get back to some of the levels of which they were they were a moment in time name we're investable at these more depressed levels and to think they were investable in getting back to the levels they once were, i'm not so sure.
>> let's talk about this for a second and i'm going to use a case study of one of the winners. there were so many losers in the tech bubble. amazon which was a small-cap company in 1998 was at $6. by the end of march of 2000, by the end of 1999 it was 113 by the end of 2001 it was 2006 and in jeff bezos annual report, the end of the word was ouch amazon was $60 and to your point, it took until 2007 for amazon to get back to a hundred. so when you are going to invest in the high-growth names you to size these right and have a long-term time horizon at the same time amazon was getting stronger and stronger. everyone thought it was a bookseller and taking back a dollar and giving back 95 cents. i want to have exposure there, and the active strategy is the only way to do it because i can't value between twilio and
tesla, and i'll hire someone else to do that so size the position right >> it's worth noting i'm not suggesting and nor is cramer by any stretch that every single stock fwhith that universe cannot come back and he's saying as much on twitter to be clear, i think some can come back, but it was very, very hard to find a chevron or a conoco type of stock among those companies that have fallen as jim was tweeting right now sure, is there an amazon in the bunch? is there five or 10 of them? >> sure. the problem is there may be 20 to 30 others that don't have the ability to come back to the degree of which they were. degas, how do you feel about the market post-fed? >> scott, i'm going back to bryn's comment it really comes down to what's your portfolio thesis and i'm sure brands' ark exposure is a percentage of the thesis and
what you have to do in these marks especially in down markets and if you notice that the portfolio is worse than the overall market, you probably have more portfolio risk than the benchmarks so what you want to do in this type of market is you want to evaluate your risk and break it down by your economic sector and also look at individual stocks and see how they perform against those benchmarks and by doing that it becomes a way of you managing through this process because that's what we're doing. we looked at every holding and we evaluated it against the benchmark. so with us we were able to preserve our investors' capital by having our portfolio position that way before we had had this downturn so i think you have to go back to your portfolio thesis and really understand that
>> steve weiss, your actions speak louder than words in that you bought more facebook and cleveland cliffs and on semi and xpo logistics. you're looking for opportunity within this market even though it's a more narrow field in which to play on >> so to me, listen to what everybody says just by showing up and investing, you're predicting the future so that's what you're doing, jim, like it or not, you're predicting the future. look, i'm 50% net long i was 30% net long, and now i'm 50% net long and this is about risk manage am, pure and simple and as long as people are surprised and still expressing surprise today that the fed put is gone i think the market is just not going go up why would you think it was powell's conference in it was lunacy they were tightening and he cares about, as i said earlier in the show, early before he
spoke that he cares more about the 70% of the people in this country that can't afford gash rows, they can't afford gas and they can't afford gas. he doesn't care about the 30% that maybe their market, what they had in the market that valuation goes down to what was a year ago could care less and that's the right way to look at it, frankly. now in terms of energy, it is uninvestable okay when you take a look at slob, slb, schlumberger, it's back to where it was in 1997 it's tradable and not investable and never has been investable and it won't be. no way can you compare that to the high-valued companies -- i don't mean value in terms of appreciative, i mean 100 times revenue and 50 times revenue it's not the same. so i'm staying away from those and in fact, the stocks i've picked i'm i've done a terrible job and i find it a very, very difficult market to navigate guess what
it's down today. facebook's up and i bought more last week at, what 300? okay so i'm making a little money i fwraut interest more cleveland clips down here. well, i bought more phenomenal company. i've met with almost the entire margs market, stocks are down today and i'm finding it difficult, until people realize they've not seen this cycle before when dwru have a $price increase and it is not unlimited, but more than we've seen in the last ten, 15 years and a lot of people in the market don't know how to deal with it and i'm having problems dealing with it and i'm bearish. keep your capital. i guarantee you that these games will have a lot of chance and
particularly in the ark names you'll get many is chances and each time you get a bite of that apple you'll get a tooth ache because you'll lower it. there's no way most companies are worth what they're trading at now just because they're down 50% doesn't mean anything. that's not valuation that's stock price so i'm staying on the sidelines as much as i can because every time i go in and do something, man, it's like the wrong move. so just be patient if the moved the first 10% upside, that's great, but there may be another 10% to 20% down side, and i hate losing money more than i like making money, so that's where i am >> well, leave it to you, weiss, to stir it up just as i try and declare that your actions speak louder than your words you were clearly throwing some shade bryn's way and i want to let her respond. >> because bryn can handle it.
>> oh, she definitely did. the question is can you handle what's about to come >> don't you still own moderna >> hold on, hold on. >> you had your chance, weiss. no, no, no, no you had your chance and this is bryn's turn. you attacked her thesis. go ahead, bryn, the choice is yours. >> i think steve is great and he's a narrative and he trades a lot more than we do. i'm an asset allocator i think that energy, we'll just see, right i feel highly confident that i'm right. it's very investable i think there's a structural shift and politicians screwed up across the globe saying we're all going live on wind mills and solar panels that's just not true, so there's been no capex in these companies for years and there's this thing in oil called a decline curve.
we should look it up, steve, because when you don't spend in energy you have less of it, and so i believe that energy is a structural trail wind and not just a trade i'm here in texas, so what do i know >> we have a 5% position in ark, right? we have a 5% position in ark we bought it originally in march 26th of 2020 at, like, 30 bucks. in december 2020 we cut that position in half and then in february of 2021 we cut it again in half. so we're being smart allocators of reducing a position that had outsized returns, but as i said before, we have zero vc exposure in the private markets and wanted to have exposure so we decided to affect that in the public markets, and so i don't think someone will go tell chamath or goldman sachs to shut down the firms and you had the rigor of the public markets
analyzing every bit of these companies. so i'm going to stick with it. we all have our different opinions, but energy is here to stay, though i'm telling you that >> which -- which frankly, is the beauty of this venue and the investment committee in and of itself, the vigor of the debate and that's what it's all about there can be a difference of opinion and strategies that work for each one of you and all you can do is share your best ideas with the viewer and ultimately it's up to the ledger, right you see what happens at the end of the day speaking of, we are going to see what happens in the market now that the fed has spoken and, you know, we've been here before, right? 2018 the market threw a fit, worried that the fed was going to make a mistake and we had a miserable year, it ended up to be for the stock market we'll see what happens over the balance of the year amid calls that we can still go higher and finish above 5,000 on the s&p. on that note, let's bring in our
senior economics reporter steve liesman with more. steve, as i said, it's good to have you back, as always, of course as i said at the outset, not only was the fed chair not dovish in any way, shape or form and you can make the case that he were more hawkish than some were anticipating? >> i think he did that by keeping things open ended. a bit of a nod and without total agreement with the lebenthal idea i look at it as we were entering a new regime here. we had a solid guidance for low interest rates and qe for the entire run of the pandemic year. i'm a bit wut a net here and maybe that gets the fed put idea and it is without a net in the sense that ultimately it will be meeting to meeting, data report to data report lebenthal could end up being right, but i want to recognize
that the fed has an inflation problem and the big change today, scott is you're right the market was fairly hawkishly positioned and now it's more hawkish in the sense that we're now looking at consecutive meetings and what's priced in the three consecutive rate hikes through may -- sorry, march, may and june and then a little break and i wonder if the market is pricing in a break, and on to september and a fifth one now in december powell didn't guarantee that, but he did say we'll be steady we now have guideline, not guidance >> yeah. it's interesting i'm wondering what you make of and i know you were on squawk this morning so you certainly heard those comments that stan druckenmiller was giving to kernen and listened to the bond market and maybe the bond market was going to be able to be listened to more than it has been in the last many years just
given the fact that the fed has taken the punch bowl away. there's liss distortion as a result ultimately within the bond market. so now as stock investors have looked to the bond market for generations to get guidance on where their equities may go. maybe now is the time to do that again. what do you make of that >> well, i mean, do respect the stand. i think we're a long way from the bond market not distorted. we have a $9 billion balance sheet and the expectation is that this thing starts to come off of it and $4 billion and maybe 900, and they won't be distorting it fair enough by buying in the secondary market, and by buying it anymore, but we're a long way from distorting it if you look at what's happening in the bond market right now they're reaching for worry and look at what happened in the 210 spread here and it's down in the low 60s and it had been at 75 yesterday. so clearly, you've had short rates go up more than long rates
and the long rates did rise. scott, the only thing you can think about is meeting to meeting, i think there are two things happening and i like what paul mcculley told me. he said it's the beginning of alpha and the end of levered beta and i think what's happened here is the stock market was something like, and i'd get pushback from the panel here was something like a fifth-grade soccer game where everyone got a participation award just for playing. i don't think that's going to be the case anymore and it will be a macro story where the earnings report matters so i think everyone will earn their money now. >> i do also think part of druckenmiller's point, and i didn't speak to him so i don't have the clarity of it, it's exactly as you said, it's the flattening of the curve. pay close attention to that. listen to that message and now we'll have to see if there's an
inverted yield curve somewhere down the line that portends recession at some points and not every indication, obviously of, but we'll have to keep our eye on that. steve, i appreciate it as always and it's been great to have you on the program throughout the fed turbulence we'll take a quick break we have apple earnings after the bell i have so much on tape ackman and netflix pete's unusual activity and more trader moves to get through. we'll do it next out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. thinkorswim® by td ameritrade
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welcome back to "the halftime report. i'm rahel solomon and here is our cnbc news update at this hour oklahoma has executed a man for the brutal killing of two hotel workers during a robbery in 2001 daniel grant received a lethal injection after a supreme court denied a last-minute appeal and it's the first execution in the u.s. this year and the third in oklahoma since october authorities will pursue an insanity defense for 15-year-old ethan crumbley the michigan teenager charged with killing four students in a shooting at his school he will face murder chargesa as an adult president biden is set to speak with ukrainian president
zelensky in a little over an hour it will be a long talk about the threat from russia, military aid and cooperation. and pittsburgh steelers quarterback ben roethlisberger is retiring. he says it is time to hang up his cleats after 18 years and two super bowl wins and it comes after a lopsided loss to kansas city and the first round of the playoffs scott, i'll send it back to you. >> rahel, i appreciate that. thank you, rahel solomon all right. apple earnings on deck tonight, can they be any bigger than they are tonight? microsoft delivered, the pressure was on. degas, is apple going to live up to the expectations this time? $160 is where we currently trade and 161 before we find out the results. >> scott, i believe apple's going deliver. it has a very strong business model as we look at the valuation for the company, we like the price at these levels and we feel that is going to continue to do well. the expectations for growing
revenue and earnings is there and ultimately, profitability and the most of any of the technology companies and we are definitely positive and like apple. >> pete, i know everybody likes apple. no one will come on today and suggest they don't like it i don't need to know how much you do like it, but good do the results necessarily have to be and the kind of tape which we find ourselves in? >> well, i think that if they're able to do something even close what microsoft came off with, then i think things will be very good and they possibly can, scott. this is a free cash flow of absolute animal of a stock and what we are hearing from a lot of the analysts about some of the iphone sales and usually i'm not focused on that anymore, and i'm looking at all of the other areas of the market when you're looking at services and wearables and the margin, but from the looks of it whether you listen to morgan stanley and web
bush, you'll see some huge numbers being sent out there as far as what they're seeing in the channel check. so if those numbers are anywhere close then i'll see something similar to microsoft where you're talking a little over a $2 trillion company that had 20% growth across multiple, different areas. so i think that's something apple can come close to. if they can get something close then that will be a quarter that everyone will like if they miss it all, and on revenues back in september, then there's a bit of a problem and then i think you will see heavy selling coming to apple, as well >> you see it down 8%, weiss, year to date and it's about 11% or so off of its all-time high as well as we take a look at apple. do you think apple gets off its high this year >> i do. i am concerned about the quarter
because taiwan semi came out and demand for cell phones in china is really low and it's supposed to be high i think it will be a great year for apple. if they come out as the scuttlebutt is with more wearables, whether it's glasses with ai in them or something else they have up their sleeve and maybe they do the car which won't cost them any bucks. they'll just go ahead and oem it with someone else and use their name i think this year could be a very biggier for apple and the valuation is higher. that's okay. it's a new valuation paradigm here with this company so i've not sold any i continue to like it. i did buy puts to protect this quarter. so if it goes up a lot i would won't participate as much as i would and the 157.50 is expiring tomorrow, so if it goes down i have nice protection because i own more puts than i earn shares in the stock >> let me interrupt the conversation to touch on the
market i know everyone is so in tune on what the market's been doing on a tick by tick basis i showed you the nasdaq in negative territory the nasdaq's down by about one-half of 1% that's 61 points the doen bleeding a little bit and it's up still, but only by 133 points. so it's come fairly significantly off of its best levels of this early day, 34,304 and the-year-old on the 10-year note which i'll repeatedly point out is 178 jim lebenthal. among the stocks that you added to this week apple was one of them and as a matter of fact, hold your thought here we'll show you a shot of the white house here where the president is speaking, the gentleman to his right, to your left is supreme court justice stephen breyer officially announcing his retirement today after some three decades on the bench. justice breyer suggesting that he'll officially step down once
a successor or nominee is confirmed by the senate and the president, as you know by now, on the campaign trail has pledged to nominate an african-american woman to the bench and we'll see how that progresses, that whole process, which by the way, tent on "the news" with shepard smith they'll take you through the prospects of what's at stake now on the supreme court, what it means for the president as well and of course, that whole process so you'll tune in at 7:00 tonight and shep will have the details there. jimmy, wrap this up for me if you could with a comment from apple. you added to it with the numbers and a bit of a bold play >> thanks, scott apple should be the spine of a portfolio and the backbone, and at that same time you have to recognize that what you're going to get this year is the share price appreciation and equal to the earnings per share appreciation which will be 10% you can't reasonably expect the
multiple to expand after it doubled five years ago it's hard to imagine that it's 27 today and the multiple is not going higher you will get 10% from an them year and get back to the high, and sure, i'll add to that and that's the spine and i'm more excited about greenbriar and wynn resorts >> okay. we will take that break. i'm just glancing over at shares of intel which are at the lowest level in a year now despite its earnings, pete will weigh in on that as he's a holder on that. we'll talk about the semis, as well we have unusual activity coming up and netflix and amackn to discuss. we'll do it all when we come back
all right. let's talk intel now, the stock is at the lowest level in a year this follows earnings. all right, pete, what do you have to say about this one >> yeah. it's -- it's frustrate, scott, because we all know what exactly they're doing. they're in the process of some huge money that's being put into ohio as well as arizona and we all know these $20 billion factories and so forth is going to be something that will be chewing up a lot of what they've
doing with their cash and yet the company still did deliver this quarter to some degree. margins were not quite where we wanted them to be or where they wanted them to be. pat gelsinger did a great job earlier on cnbc when he talked about the different parts of what's going on there, but you look at data center chips and that was down 20%, so there are areas of growth, but it's still frustrating and i will say this. intel, believe it or not was leading this year. the smh by quite a bit of a percentage move. it's gotten closer and it's still ahead of the smh in terms of the move. it's held in there okay. that doesn't make me very happy that i'm having to use that as the expression, but better than the smh itself so from that perspective, it's done okay, but it is frustrating, scott i have been looking at this for a long, long time and whether or not they continue to hold on for right now, i am. it's on a little bit of thin ice right now for me
>>. >> sech, you recently bought it, what made you talk about intel to think it's on thin ice? >> it's actually more than frustrating. we like the semiconductor space right now. demand is outshipping supply and they're in nearly every part of it the stock is so cheap, and 10.6 times, 8% dividend grower and 8% free cash yield. i mean, we like to have a portfolio protected from asteroids and usually price does that it's kind of like when bryn was talking about some of the more expensive stocks, i think they do come back, but to quote a line from eminem, nobody listens to techno and they won't for a while in those stocks so we're trying to hide out in some of these less expensive stocks with positive demographic trends, and that's why intel is really more
than frustrating >> okay. i'm notgoing to get out of thi segment, weiss, before i give you a chance to -- i don't know what on teradyne speaking of aste aste asteroids which is getting absolutely destroyed today and you have a position there. so i need you to talk about it >> i guess a couple of months ago i sold half of it with a small position with a monstrous freakin' loss today. so thank you for bringing it up, and sometimes i need humility and it doesn't aufshoften happe scott. >> it's what i'm here for, steve. >> thank you you do that job well >> i don't know how they missed. this is not a start-up this is not a company where they don't have visibility into what they're doing and so i've never seen anything like this, frankly, when you take the numbers down on a company that
you have to show them that this is what you want to do with them months and month ahead of time, and it's bad management. a little bounce, all dogs bounce even though they're jumping off a couch. this will bounce and i'll get out. no patience for it >> when we come back, we will discuss the new netflix position and bill ackman. that stock -- there it is. a big winner today in the peta we'll talk about it when we come back the pursuit is on.
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netflix today. they are rallying. bill ackman is now a major shareholder and leslie picker is following the money for us l.p., it sounds like the stock got cut in half by 50% bill ackman has been looking for a while and said okay, i'm in. >> that's exactly right, scott a little movie magic here. that staked $1 billion on recent levels news of ackman's involvement sending shares of netflix up more than 7% today, but prior to today's moves, shares had plummeted more than 41% this year alone as pandemic tailwinds seemed to subscribe
and subscriber growth slowed for much of its two decades, netflix has been seen as a growth stock, but amid the recent sell-off, value investors have gotten more into the mix. bill nygren said he decided to acquire his stake when an attractive valuation merged. it doesn't appear that ackman will be using his major stake to wield any change in the company any time soon. in a tweet he said i have long admired reed hastings and the company he has built we are delighted that the market has presented with us this opportunity. ackman was also complimentary. he hasn't run a proxy fight since he lost one with adp that was over four years ago and his quieter approach has paid off with performance with turns of at least 26% in each of the last three years, you can see in 2020, returns were 70%
scott? >> yeah. i would be surprised, right? i know you would, too, just based on the company if there was sort of a contentious nature down the road. i would be surprised if we saw something to that effect and it sounds like a good value play, right, liz >> a good value play. right? >> yeah. more of a value play at this point in time. interestingly, i was surprised to see they do have a single structure considering it, you don't typically see a lot of activists at the gate of founder-led companies. this one went public in 2002 before the structures were commonplace. >> yeah. before all that came en vogue. and pete is up next. what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.
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go ahead, pete. >> start with acme pushing up against 52-week highs. pushing there, scott a buyer today of 8100 of the march 140 call just out of the money. a lot of time break up to new highs you break through the new highs. paying about $4 for the calls. 8100 interesting. then health care trust of america. hda. different for us a reit health care facility a lot different than anything we normally talk about but i see a big role going on whether selling february 32.5.
going out and buying the march 37.5 calls about 5,000 of those for about 35 cents stock's going to make a significant vemo but can bought both of these, scott. >> good stuff. pete, thanks final trades other side of this break. ♪♪ at cdw we get your teams work in different places, in different ways and across countless different networks. so how do you get everyone on the same page? microsoft surface devices, orchestrated by cdw. they adapt to each user and deliver multi-layered security, so your workforce gets seamless experiences wherever they roam. for devices that fit your unique workforce, trust microsoft surface and it orchestration by cdw. people who get it. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire.
for share buybacks. >> okay. all right. great. brin >> viacom. taking the market share i think from netflix three deems on their hands. >> and diamondback energy. if you think oil and natural gas prices are headed higher, this is the one. >> got to go jim, go ahead and then weiss. >> alaska airlines. >> semiconductors. >> ceo coming up, of alaska, coming up in about 30 minutes. don't miss that on "the exchange," which starts now. yes, he is thank you, scott hi, everybody. i'm kelly evans. a roller coaster 24 hours since the fed's meeting yesterday. futures plunged last night and stocks surged and then the s&p went negative. back in the green a little bit nasdaq on pace for its fifth straight down week and my next guest warns tech is still not a good buy he's he
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