tv Fast Money CNBC August 5, 2014 5:00pm-6:01pm EDT
key primaries happening today including one in kansas in which you have barak obama's 2nd cousin trying to present himself as the next ted cruz of the tea party. that's interesting to watch. >> wow, talk about both sides of the aisle. guys, topping this hour. so much to get through. fast money coming up in a few minutes, mellition sa lee with so much more. >> thank you so much, "fast money" starts right now. in new york city's time's square, dan nathan, karen finerman and guy adami are my panel. the dow and s&p dropping to its lowest level since may. remarks from polish officials warning about a russian invasion of ukraine winning on sentiment. the volatility index spikeing 10s%. what happened today, b. kchl? >> well, listen, if the bond market told you the whole story because we had good economic fuse in the morning, bond market
sold off, the instant we have any whiff of a problem with ukraine, it's all about geopolitics. look at what's happening in new york. those endis says have still not recovered. i am short of the dax this afternoon, i don't see any reason why puma is going to back off, in fact, they can't because if he does he completely loses all credible and power in the world. i think this will get a lot worse than it gets better. >> geopolitical is part of it. a lot of these things were telegraphed. we talked about the russell under performing for quite some time. dan brought that up last month technically the trance ports are rolling over. last month was a dicey month for the trance ports and s&p also. all these technic also lining do not paint a rosy picture. we're at levels now we can absolutely test that 1660 level i was wrong about a month ago.
>> what struck me in terms of the russell, it held up, i was expecting it to be down much more. >> that was a great point. i was going to say that to my friend guy over there. the nasdaq doubled it to the downside. i would say the iwm, the russell 2,000 has been underperforming for months. now, it's a divergence, here's the thing, if we are at a topping process, i don't think you have to keep a klees eye on the russell anymore. s the a broad index, the transports, some of these things are rolling. the up trends e trends has been in place one-to-years. that's what i think you want to keep an eye on, what the bill money is doing right now. >> i thought the fundamental data you decided was very good i thought. this i do think is noise. i think this will pass actually. i think it's going to be driven by earning, i don't know, halfway, maybe a little more through earnings season, i think if we see deals, that will be a
good thing. although we saw an anti-deal tonight with time warner. i don't know, i kind of think this is noise, i don't think anyone thought the ukraine situation was cleared up, already. so we didn't do, i didn't do a ton of trimming or buying actually. >> let's talk high yield market. we had a big sell-off there. high yield bonds or corporate bonds have been a big driver of buy backs of these deals. if that starts to get at least more expensive, if not the liquidity dries up, that takes a couple other legs out of the market. >> is it more expensive tan where it is now? yes. where it is now is crazy. the prices they have been able to get up to now is crazy. we look at the iwm, under performed, we had that long spider short on iwp, that trade wednesday nuts to the upside last year. crazy. so few step back a little bit further, i don't think the iwm underperforming for two weeks here is really so monument am. >> that's a good point there. all tow, bank of america, it had
a very poor first seven month of the year him when it under performs, it's usually followed by a 3.6% decline at the end of the year. >> so if april or may we had this sharp decline and small valuation stocks, let's look at what's going on, 3d printing stocks the russell 2,000s, the first sector. they act like death. they reported poor results. so when you talk about good economic data and good result, primarily in the large caps. a lost large caps are rolling over. the few high was made last week. >> i want to talk about the sectors that failed the most in today's session, energy is a standout, xle the lows of the session down by 2.6%. we got big losses, conoco philips, you name it. >> it's coming on the heels of the exxon report. i thought the price action was
sort of lousy. i think exxon is okay. you make a fair point. in getting back to dan's point. it has to be mentioned. this old school deep cyclical name as you can possibly find, not a small company. probably a 31, $32 billion dollar market cap company. look at the precipitous drop over the last week or so. that might be a value fame here. the move can't be discounted. that's a significant name in a move like that. >> that is a good one. the industrials, a name like eden is absolutely on our radar screen. i love that. it's getting cheaper. it's getting close. it's hard to buy industrials here. one data point i did not like recently was the crane earnings, that part of the business. that actually made me sell a little bit of the.united rental. >> all right. let's hit the turn of the day here, try to take a look at intel dropping around 3%, talking about the worst performer on the dow, it seen the biggest drop, today's move
follows a strong run for intel, of course, it topped 25% in the past three months or so, the under performance was concernening when the market were at its lows, intel was under performing by almost a percent. >> this has been a darling where you get a good dividend yield everyone talked about the capex that's coming. companies will upgrade because of windows xp. that's all happened. we are probably in inning 7 or 8 and add on to that, intel is trying to get into the possibly space. we seen the ipad and tablet sales going down the question now becomes where is the growth prospect? has it gotten ahead of itself? i'm not sure i'm ready to buy it quite kwet. i'd much rather see it flop. >> i was wrong when it gapped up after the earnings. here is a company expected to grow earnings in sales mid-single digits. it is expensive relative to its historical back grourngsdz it
has a great balance sheet and yield, you don't buy it up 30% in three months. >> to dan's point, this stock is back to where it was 30 cents or so. they had the initial pop. with intel, peak mar jens lead to peak stock price, somewhere we might be seeing right now. now to groupon, revenue coming in lighter than expected. follows groupon and forester research. great to have with you us. you along with people on the street were expecting groupon was going to pull it off this quarter. what happened? >> well, i this i the issue, melissa, lab the whole groupon bids,itative extended for the areas like fashion. they bought ideally last year. that's been a total drag on the entire business. the core voucher business is actually doing pretty well at least financially from an earnings standpoint. it is the driver of earnings to the degree that they have any and then unfortunately the goods
business just sucks it all away. it's expensive. they're buying inventory. that's a challenge. >> i think a lot of investors are skeptical of the good side of the business since they announced they are going into the good side of the business. how can it compete to amazon or a multitude of other retailer us out there. do you have any indication amazon would abandon that business? >> i actually think the goods business is a promising business, they're not competing with amazon, they're competing in the off price sector him it's closer to companies like tj max. what you have to get the biggest key success factor in that industry is access to inventory. they've been pretty successful. they've had good buyers who have been able that actually came from amazon. they were able to have those manufacturing relationships to source inventory. so that wasn't the problem. the problem is that sales are numberally not that lucrative in
the united states because you're competing with tj max. unless you have, you know, tjx's scale and you can boy that much inventory, you will always be competing an it's not financial to be as lucrative. that said, what groupon does have going for it, they have a strong consumer brand, if they were to actually compete more with amazon wage with the amazon business, i actually think they'd have a shot because there are so many mark place sellers on amazon who are sec of amazon, they want an all ternive to, ali baba and rocket ten are not unfortunately viable alternatives for them. >> thank you. >> tanks, melissa. groupon declining int after hour session, flash sales are a dime a dozen but you name it. >> it's a complete departure from their original business. it takes an awful lot of capital to run. they're not executing it well. so why would you buy the stock? >> to me, though the quarter is
i don't think down 16% quarter. it wasn't a great quarter, valuations, we've seen a lot worse. so i'm surprised it's getting whacked as much as it is. i'm not saying to go race and buy it tomorrow a. 16% move to the downside off this quarter to pe doesn't add up. >> it's the first web 2.0 stock trading as cash. to your point, they are competing with costco and amazon and not just tj max. they basically said tear business model they were put in business for the defuvenlth it doesn't make sense. to me i think you go way down here and have to look at the assets and their cash. i don't see any reason to boy it. >> coming up next, could a hydrogen fuel cell car be coming to a place near you? tobacco is placing bets for tes louisiana we will hear from tobacco's senior vice president in an exclusive interview next. later, 21st century fox pulling out its bid for time warner.
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now, bob eiger just speaking about the strength at disney's theme parks saying my magic fans will continue to boost earnings results. he announced in the next six months he will set the disney resort and are walking on a greater "star wars" presence for the theme parks. what tail be doing there in the next year him now, on the heels of record breaking openings for guardians of the galaxy, he says the investment is more than paying off as they see strength for the company. take a listen. >> we had great results at parks and resorts, profitability the interactive group. a tremendous story of consumer products and, of course the studio, whiched a great results from movies like "captain america," "maleeficent" and "frozen," the most highly grossing film of all animated film of all time. >> the world cup exceeded
disney's expectation. eiger says now that the world cup is over, the network is very well positioned for the long term with other sports rights. now as for "frozen," for the holiday season, eiger told me they expect huge things in terms of merchandise sales, they are prepared for big demand. >> thank you very much. julia boresen on the disney call. what's the trade, karen? >> the trade, that was a great quarter. it's a bad day to announce a great quarter. the stock was priced if. i love the name. we talked about out of the money calls against it for this earnings release, you couldn't ask more of them. they did a remarkable job. the stock is expensive to develop, itself. it's a high bar they set. >> it's seemingly continues to grow into its valuation. look at the stock performance. you can make an argument him we have been doing the show a long time. it might be the best run company in the united states for many
different reasons. >> all the acquisitions have paid off for disney, they have a lot of -- you are talking valuation, stray a lot of catalyst in the back half of the year. >> the quarters, there was a little hiccup maybe if cable if you want to nit pick, a little bit. the rest of the quarter was as solid as it gets. it continues to grind. the stock continues to grind hard, continues to grow into the valuation. >> big gains for blackberry kicking off our top trade, john chen saying the company has completed the structuring notification process and the reduction years ago is now officially behind the hand held device makers. no more layoffs. >> it will be positive for morale. what this comes down to is john ken was brought in to turn around this company. he had a plan, he is executing on the plan, groupon is not executing, he is. when we get into the back half of the year, that's when we see the rubber meet the road and the earnings and revenue come in. that at that point if time i
think you will see blackberry over 12. i actually bought more today. >> you think it will go that much higher, he, himself, said in that memo to his company there is no mar jen for error in terms of the turn around for blackberry, he is locking at strategic acquisitions, do you want to see this company buy anybody else? in there no, i do not. they have to continue to strip down. there is i.p. there they have a installed base. there is for the growth. the problem is, there were times when people thought there was room for multiple players in this space, it's becoming increasingly narrow. the longer you are out of it is really, they're done. put a fork in them. >> i'm in the bigs camp. >> oh, okay. >> because i think we talked about at this time other day, i think it was july 31st. he had a huge flush on the downside on big volume, stock bounce. i think it's a trading stock now. the downside is limited to nine. the upside might be 10-and-a-half, 11. >> whole foods rumors, carl
icahn has taken a long stake. sources familiar with the situation saying icahn has absolutely no interest in the stocks whatsoever. those are strong words, dan. >> this was a fabulous moment item stroke. they have a great high quality product t. growth started to act sell rate t. stock over the last year has gotten afile lated. here's the thing, will there be interest by activists? no doubt about it. i think you will see consolidation with the sprouts and higher end close e grocers. to me, tray twaid traded two teams the average daily buying. this week expiration and next week and so to me that just smack of people trying to play the rumor potential short squeeze, we know it happens if icahn does get involved. it doesn't speak to potential accuracy. >> the larger issue, tow, is this a kind of stock that could bring in an activist investor? >> i suppose it could when you think of his successful position i think it's trimmed some of. so maybe this is a space he
likes. i don't know, it's not cheap. he's talked about being nervous about the valuations of the market in general. this, i mean, over the years, he's done a great job. it's hard to fault this board up to now. >> shares of toyota driving higher after the world's largest auto maker reported record profits, with today's move the stock is up some 15% since 8 below. can toyota keep up the momentum with its pipe lean which incl a hydrogen fuel car. joining us for an exclusive interview is bob carter, senior vice president for operations of toyota america. bob, great to have you with us. >> thank you for the time. >> do you want to talk about the hydrogen fuel celled car. before that i want to talk about the combustible engine cars. what do you see in terms of consumer spending go him into the sec half of the year and louch of the growth of the autos demand has been driven by easy lending, subprime loans for autos? >> the variety for that,
melissa, if you want to see a snap shot of consumer optimism, just look at the car industry. last month the car industry totaled 1.4 million veevenlgs that's an annualized rate of i'm sorry 16.5 million vehicles. that was the sixth consecutive month we've had year over year growth. so we're seeing that optimism come back to the market. consumer confidence is up. interest rates are historic lows. the average car on the american roads today is nearly 11 first half-years-old. so the combination of those three are providing the entire industry very robust demand. >> but if somebody came in and said, you know what, lenders, tighten up your lending standards, would we see that be a head wind to these sales? when you take a look at the number, bob, one-third of all new car sales are subprime loans. >> well, there's a different situation for different manufacturers. we do a little of subprime. it's not in anyway a focused
point of our business. what we're seeing is just the general mane stream market is interested in replacing the current cars that they've held on longer than they typically do. >> i do want to talk about the hydrogen fuel cell car. you want to come out with that in 2015, come over to the united states. are you a little early to the game because the infrastructure isn't there? >> well, we're working with a number of government agencies as well as private industry to develop that infrastructure. you'll see it develop first in california, both in the san francisco bay area as well as los angeles and there are several open today, but as bemove into 2015, we're going to introduce the fuel cell, we expect around 30 stations to be available at launch and then within the first year about 60 stations strategically located through los angeles, san francisco, and then we expect it to migrate into the new york
metro as well as boston and up through new england. >> is it going to be a much tougher debut tan let's say you had for the prius? when the prius came out that was the first alternative energy vehicles out there. now there is a range on tesla or other alternative fuel cells in terms of vehicles. so is it going to be a much harder sort of landscape when it actually does come out? >> it feels very similar. we introduced the prius in the market on the 1990s. fuel prices were under a dollar a gallon. it took a long time of educating the consumers until the consumers understood what the benefits of hybrid was. 20 years later, prius proved to be a success. we anticipate this fuel cell to really where the power train for the next 100 years. certainly, it's going to take time to develop it. it's going to be gee grafblg as the infrastructure comes about. but water so exciting for fuel
cell is that while we do believe electric vehicles have a spot in the u.s. mark, it's going to be a very small spot because of three consumer disadvantages that consumers tell us about. we believe that the hydrogen fuel cell resolves all three of those consumer concerns. >> all right. bob. we have to leave it there. thank you so much for joining is. we appreciate it. >> bob carter of toyota. let's trade toyota, if you had to. >> i like this game. play the game. >> if you lad to. i guess that could be a game. choose an auto stock. what would that be? >> well, it would probably be toibl e tobacco. that's because of the yen tail wind. i think when you talk about this cargo, a lot of people say it's a tesla killer. >> i seen a lot of people. so this could be competition. >> the bpw is the tesla killer. not toyota. >> i think this toyota is probably more like a chevy volt killer. >> a prius killer.
>> it could be. >> that is the biggest cannibalization would be of themselves, i don't know. >> you want to play that game, if you had to? >> i leak games. >> i leak auto stock. >> not toyota. the toyota, well, i mean, it's had a nice move since the spring. it totally performed into the spring on the interesting backdrop for the japanese market in their currencies and bond. number two you have massive double tops, you go back ten years. which leads me to believe this is the bounce in the tm to sell. just real quick. >> i got a 12-year-old tahoe runs like a top. so don't give me this, hold on to your car, take changing oil. >> you might as well use that. coming up, 21st century fox pulling out its bid for time warner? what might it mean for the media space? that's next. later, the fears intensifying over the ebola outbreak and two stricken americans, bun biotech company is ready to provide its
let's go to the flor with dom chu on time warner falling hit hard in the after hours session. dom. >> the headlines is the bulk of the latter afternoon that 21st century fox has pulled, withdrawn its bid to buy time warner. so again time warner shares under pressure off tear after park lows, still down by about 9, 10%. 21st century fox shares are up 8 or 9%. there are a couple statements, both sides weighed in with
official statements. i will tell you what rupert murdock of 20th century fox said, he said they have compelling rationales. our approach had always been friendly, however, time management board refused to engage with us to explore an your highly compelling. these factors coupled with our commitment to be disciplined in our approach to the focus on delivering fox for shareholders led us to withdraw our offer. he added they're going to have a $6 billion share repurchase pr in lew of or perhaps in lew of this overall deal. now, time warner has also in the last few minutes released it's own statement regarding the falling out of this deal and the following through. time warner's board and management team are committed to enhancing long-term value. we look forward to continuing to deliver substantial and sustainable returns for all stockholders. time warner is well positioned for success with our iconic assets including the leading
premium television brand the strongest ad supported fourth quarter group and largest film and tv studio. we thank our stockholders for their continued support t. drama is playing out. rupert murdock saying they refused to engage us, time warner saying our shareholders are better off. we got continued support from them. we tank them. back over to you, guys. >> let's go to contributor jim stewart also the columnist at the fork times. tanks for calling in. we appreciate it. >> sure. >> it seems surprising rupert murdock said time warner i'm out of here, i am using that money. i will buy back my stock. >> i am shoblged him i thought it was good news for consumers. putting that aside, i agree, it made strategic sense for him. he's always been persistent and willing to pay up. if you look back at his dow jones acquisition, he made that bid if april. he, that deal didn't get agreed to until august.
so that went on for a long time. this is very fast to be caveing in. >> what does it say about the media space and potential targets if murdock is going to say, i'm going to turn around and use that capital. $6 billion, which is a nice chunk of change use that for stock buy backs saying we will continue to look for other acquisitions. >> i think it's gefl edefinitely going to cool over the sense that oh my god it will be huge and fast consolidation in the big media space. i think some new issues have come up here him it's also percolating over the comcast time warner deal, with i is there is clearly some political anxiety that these companies are getting too bigger, too big. the media is not like cement makers. there is an argument to be made for diversity and content ownership and multiplicity of ideas, so there are a lot of issues that began to cloud this pick. but i definitely think one of the part is things murdock was doing was moving on time warner when a lot of the big rivals
were out of the picture. at&t is tied up. comcast is tied up with its deal i have a com and cbs and red stone were likely bidders. those were probably the main rivals. i think down the road you will see the same pressures. i wouldn't be surprised to see other people make a move like this. you might even see time warner trying to move against one of these major media companies. >> let me ask you something, rupert murdock is as experienced as anyone if doing deals, so there is no chance he thought the first deal he put out there would be accepted. he knew he would probably meet some recibc tans, what else do you think would have happened to maikel throw in the towel so quickly? >> the only thing he said in his statement was the stock reaction. i have never in the past, is this a new rupert murdock suddenly getting all sensitive to shareholder feelings? i don't know, in the past i don't think he would have worried about a shareholder reaction. his stock did go down which i think disappointed him. sense i think he thought there
were strategic rationales for this. one of the reasons is his rep takes for overpaying. he did hugely overpay for dow jones. he bid a 67% prem premium on the shares this time. this time, tow, he seems to be pretty conservative. his initial offering which we all know would not have been the last was only roughly 15% of a share price. people were talking maybe getting to $100 a share, 30% above where it was trading. still not an eye popping football. so it may be that at this point in his life he suddenly decided to be more financially conservative. >> jim, thanks for calling in. great insights. >> sure. >> jim stewart of the new york times and also cnbc contributor. that's interesting being sensitive to the stock price. we have seen from this day and age the acquirer stocks go up sharply. it's not like oh, that's the typical reaction of the acquirer. >> he has beening will to stomach that for a while.
it is recommend fis sent of come cast's bid for disney, they quickly went away. >> is there a trade at this point do you think? >> i think twx might trade back down to that level that it broke down fromo or whatever it was. we talked about it before this twx was a buy. i think this whole thing is in play. maybe rupert did this to make it look bad? did you ever think of karen's point? >> you wonder if he was sincere, maybe he had alterier molaw ul motives. we sit down with the ceo of sur epta next. ...for the year. hi. sorry. just want to say, i bundled home and auto with state farm, saved 760 bucks. love this guy. so sorry. ulterior .
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million. ebitda at 59 mc. as for the outlook, they reduced ebitda as it plans to spend more on a marketing company it believes will help in the longer term. in the quarter it spent more than a year ago. estimated revenues. we're pence estimates, but the estimated eps and ebitda are low. one bright spot. let me get to a bright spot. mobile, 92 pm people have downloaded the app. listen. >> possibly remains half our business world wide. mobile's mix is measured by transactions, continued to increasing q2 reaching yet another all time high. as we said last quarter, we are no longer becoming a predominantly mobile business. we now are a predominantly possibly business. >> the ceo says they have yet to optimize mobile. so there are new initiatives to improve that. they're building something call pages for local merchants. they're providing a local
payment system already deployed in 75 cities. a couple other points. the company wants to retrain customers, if you will. so they don't have to push out to them with deals, but customers are pulled in to come in and search the percent annual of those pulled in grew to 10% of all transactions, back to you. >> retraining, does it require a class? it's kind of relick i dick l -- dan, would groupon be a short interview? >> it's got a quarter of its market cap now many cash there are some assets it's got a decent bravenltd i'm saying i don't think it's a buy. i don't know what you do with it here. i will make one point. about this whole possibly thing him we seen this movie before, yes, 15% of your customers are mobile. if it was any less than that, you'd have a much bigger problem. i don't think you can make a blanket statement and saying it's fabulous you are seeing
this mobile adoption. >> ebola is skooepg sweeping the globe. the world death toll the second u.s. citizen diagnosed with a highly contagious and deadly disease arrives back if atlanta. one by otech film says it is ready to go with a drug to treat ebola. joining us is the rep and ceo and the president. chris, great to see you again. >> tanks, peopmelissa, it's greo be here. >> you have a few dozen drugs to treat patients. have you gotten calls so far? >>. we wanted to peak it clear we have drug available if it was needed, if a government agency were to speak up. most of your viewers foe sar epa. our company pushes forward the muscular dystrophy program for sar epta. the department of defense prepares for times like this where we might need a medical countermeasure against ebola or
serious viruses. >> it's a 60 to 80% cure rate and you have not tested this in humans yet. what is your belief in terms of human survival with this drug? >> well, again, the priprimate s 60% survival. this agent has been tested in human subjects for safety at lower doses. however, the same chemistry has been developed for another hemorajjic diers i virvirus ovek time frame and a good safety. so we believe if we administered our ebola drug at that same dose we think twold confer a clinical benefit and be safe toed a pinster. >> i want to just point out to the viewers you are in a quiet period. we will not get too much
into the financials and while i did want to talk about you a little bit. i want to ask about some of the exits from your company of late. the high profile exits. your chairman resigned on the 21st of july after he placed littles on your tort in regulating, in regulatory medical affairs including a ban on your attendance at fda meetings. we had prior to that the chief scientific officer who had been fired, he brought up concerns to the board about your management skills. i'm wondering what is going on at your company? because i think investors pay be concerned about this string of high level level departures? >> we have for the problem. we put out a press release including the authorities for me operationally strategically including fda immediateings and clinical input. again, we have a new interim care who has great operational experience as we look ahead and we have a lot ahead of us on the dpd program.
we wanted that experience that our interim chair provides. regarding the departures, look, we're a very dynamic fast paced biotech company with high expectations. we have been hiring people, there are people lining up to come into the company. i got about 180 employees who are excited to be a part of this organization and to bring success to these dmd families. the recent cso departure was only the second person at a bp level over the last two years that's departed the company. if i look at the people who have departed this company this year from our headquarters, it's been about 8. we've, you know, we have 30 positions posted right now. so while there have been a handful of departures, i don't think it reflects what is really going on in the company and our path forward. >> so let's talk about the path forward and what happened in the past two years. you tillie have positive phase 2
b data for your dmd drug. if you can has gone on two years. you stripping together these departures, are they checked at all? what happened in those two years that has delayed dpd? is there not at all. really, there has been for the real delay. when we announced the 48-week data, actually on cnbc in okay of 2012, that started the process for us to scale up manufacturing so we could produce more drug to those patients in confirmatory studies. we were on track to do that beginning earlier this year. and we had some challenges with the fda and the path forward. that's been resolved now in april. we are moveling forward with multiple studies now with our drug. we expect the first of those studies to start dosing in the federal government month or two and then the other studies quickly behind that, to start dosing. all of this is going to
be happening in parallel with our mda submission later this year with the hopes that we can get approval of this drug next year and provide it to all the families that could benefit who are suffering with dpd. >> approval possibly federal government 84. chris, thanks so much for joining us. we do appreciate it. >> thanks very much. >> let's trade this. we seen this stock pop. the ceo made it very clear, this is small, ebola treatment would be small, yet, these stocks move big time based on this. >> the parra medic made a point, they should make a motion sick ness truck as well. if you try toy trade this stock, that's what you get. >> that's a good line. >> this is all over the place. >> but are you with me now? but this doctor 20 level has held before if you want to play that game, it's fine. because there is a huge short interest in this name. if it comes out any glimmer of good news, a game with that short interest stock is up 10 or 15%. coming up next, we will help you
invest like a shark. rebreak down some of the hottest venture capital investments the pros are betting on right now. that's next. . break down some of the hottest venture capital investments the pros are betting on right now. that's next. break down some of the hottest venture capital investments the pros are betting on right now. that's next. w break down some of the hottest venture capital investments the pros are betting on right now. that's next. e break down some of the hottest venture capital investments the pros are betting on right now. that's next. . cth
the price of up and coming companies a venture capitalist rick heisman is here to give us his a-game. he is an institutional investor. good to see you. >> good to see you. >> let's talk about bitcoin. as opposed to investing if bitcoin, itself, you are investing in a different market. >> if you look across what second markets do, they're really becoming the one place that made bitcoin successful to the masses. it's safe, it's secure. it's similar to how you buy a gld. >> i'm a huge fan of bitcoin and digital currencies. i'm curious, a lot of people talk about the prices of bitcoin. the price, if we're trading, let's talk about that. $600 roughly right now. a lot of people are say figure you have amazon come in or get 10% of the gold market you are
talking ten, $15,000. where do you come down on the price of bitcoin? in there bit skoin small. it's still a $7 billion toemt total mark. if you think of the supply-demand curves, it wouldn't be surprising to see them adopt either as trading desks or almost a hedge of a reserve currency they have in bitcoin. just to have them layer in just a $100 million each. you think about how that changes the fundamental supply-demand curves. i think that normalizes. it will be incredibly rocky the federal government seven years. everything that is bad can happen, russia outlong it, chosen outlong it. it's still kind of staying up there. so i think you will see probably a bitcoin over probably over a thousand or over 2,000 in the next 12 months. you will probably see it under 12,000 in the next five months. >> that's really helping the forecast. in terms, when we talk
to other venture capitalists who are also bitcoin enthusiasts, he talks about the application of the technology. at what point can they invest in that technology, he can use the bitcoin technology for property transfer let's say or stock transfer. >> you are starting to see it. there is coin based pay and they have processers as well as wallets. you are able to securely store it and bitcoin right now is a $16ple yacht. i forgot the name of the site. now it's just kind of almost a pr stunt. to try to sell your vote that way. to be able to say, okay, here's an alternative current sichlt i don't want to use dollars. i want to use euros and bitcoin. it's starting to catch up. i want to say ten times more bitcoin use it today than a year ago sample in terms of using it as a way to transfer property, itself, the bitcoin technology but not using bitcoins,
themselves. >> to use that same technology the lower cost infrastructure. >> right. >> it's a ways off. because you are again teaching people to think a whole different way. i think people are used to using euros and dollars for multiple currencies and will use bitcoin as an alternative currency. you have to convention people to do something incredibly different. the first use will be generally high cost transactions. you think of remittance payments, especially emerging parts of the world, places leak that. >> thanks for coming by. energy leading the sell-off today, why traders are banking on more pain in this sector. much more "fast kwats straight ahead. .o'"faststraight' ahead. and i tell them, if you can make gamers happy,
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when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. ahead. ahead. . traders are betting on even bigger declines here. dan is at the plaza with more on this. dan. >> a lot of weird action today. we will talk about the s&p oil and gas etf. there was a lot of put action in the xl e. really, i just got to talk about the s&p here. it traded four times the afrl
daily. most of -- average daily volume. a trader sold 15,000 o. august '79 puts after $5 in a quarter. they used the proceeds to buy 15,000 o. september 73 puts. that was when the stock was 7362. likely a protection trade. when you see that sort of roll out and down in put strikes, it's probably protecting maybe a basket of stocks or positioning. i want to look at the cart right here. when you look at the sop this is the one-year cart. this stock got down to that level where it broke out early in the year. i want to make one other point about applied volatility. near 52-week lows. you know, there was a good roll in extending the protection. >> all right. thanks, dan. we come right back. stay tuned.
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