Skip to main content

tv   Fast Money  CNBC  July 17, 2013 5:00pm-6:01pm EDT

5:00 pm
want to see money pour back into this group. >> down right to the wire. steven, you've only got ten seconds. no, you've got 30. go for it. >> unless he signs onto twitter and changes his facebook status i'm pretty sure we're not going to hear from ben bernanke tomorrow. intel numbers weren't good. we're going to see profit taking, anyone tied to computer or hardware, specifically, microsoft. >> thank you very much. bill, i believe that does it for us on the "closing bell." >> that's it. "fast money" starts right now from the alpha conference. stay tuned. >> welcome to a very special edition of "fast money" live from the pierre hotel in new york city at the biggest investor event of the year, delivering alpha. our traders are guy adami, pete najarian and karen finerman. we will bring you comments live.
5:01 pm
first we want to get to tech earnings movers in the after hours. john ford has the details on ibm and intel. john? >> ibm call going on right now. we're about 30 minutes in q and a just started. management making the case that they are running a type ship. we saw the outlook excluding work force balancing up 20%. we saw service coming in better than expected by nearly $2 billion making the case that between acquisitions and other things they're well positioned for the future. analysts questioning how they can be so sure that the second half is going to look as rosie as ibm is painting it in terms of profitability. that's going on right now. intel's call going to start any minute. >> let's trade this briefly. there's lot of skepticism about some of the higher margin areas. they performed in those specific areas.
5:02 pm
>> the skepticism was there because the last quarter was a disaster. this quarter was fine. people take away two things. margin is better. you mentioned that. revenue missed. given the eps beat we saw today, you would have hoped that the guidance going forward on the eps side would have been better. that's why you saw the knee jerk higher and the soft is sifting back. i think it's no man's land here. >> how about intel, what's the trade there? was the optioned market on the ball? >> they have already performed. when you look at the option over the last couple of weeks they continue to be bullish. you're seeing a little bit of a selloff in the after market. just like ibm it was strong coming out, a little bit of a perk and then that selloff. the fact that those margins absolutely went to the upside, backlog is still $141 billion. this is a company that is going things right. they talked about the second half being their half. >> after act ten tour, the bar
5:03 pm
was low. does this set the stage for tech earnings in general? >> i hope so. we'll see the summary through other names. ibm, if you want to be defensive why be there. if you want to be office sieve, it didn't fit. >> the big news out of alpha today. the best ideas, topics from the likes of nelson peltz and others. chain knows picking cat pillar, citing composure to china and you look at stock and it's not surprising perhaps that he's looking at this one. >> there are so many differing opinions right now about exactly how much exposure they've got. are they completely stuck in the mining or is there something more to the cat pillar story. i think there is more coming to the story when you look at the u.s. market as far as some of the construction. everyone is focusing on the mining but i look at this
5:04 pm
company as a construction company. i think that end can actually hold them somewhere near this 85 to 95. >> february 1 was a 52 week high. it's down 13% not including today's loss. >> this stock has underperformed. more more chain knows to be expect a couple things have to happen. to pete's point, i don't think cat is nearly a big a china story as people make it out to be. clearly this stock has underperformed. downside is 78 or so. he's clearly looking for more but i can't imagine unless we see a complete melt down the stock getting lower than 78 or 80. >> hewlett packard is down in the -- excuse me, up in the period in which he was short. >> he did trade around it. >> next up, the man who has gone ten for ten, lee cooperman. he came out swinging with another ten best ideas including qualcomm, san bridge and kkr
5:05 pm
financial, guy? >> qualcomm to me is the most interesting one. people have used them as a proxy short to be short apple. obviously apple has rallied over the last couple of weeks. people say i can't sell apple at 400. let's get short qualcomm instead. th hasn't worked. qualcomm has been sticking in the mud. i like the name but the stock option suggests otherwise. you have to wait for the report on july 24. >> you also have to keep track of the margins. they own that mobile chip market going into the smart phones but they have a real problem with intel coming into that field. >> finally here, nelson peltz says he's urging a merger between peps co and mondelez. pepsi trading at all time highs.
5:06 pm
pepsi said essentially it is confident in its existing strategy going forward. >> i can't see them saying we have a giant hole in our portfolio and we need to divo e diversify. we understands the food business. we've seen him push and push for change. he has a good track record between cad bury, wendy's was a mixed one i guess but he's really worth listening to here. we've looked briefly in terms of mondelez in terms of takeover protection. he only owns 2.3% but he carries a big stick for shareholders. >> pepsi has not traded the same as coca-cola because it's got these separate parts of the business which trade all together as one. could this be the same thing? >> pepsi is interesting here.
5:07 pm
if you are comparing it to coke, i think they'll play catch up. >> i have been in this name for over two years. it's a long hold for me. pepsi can go higher. >> did you see anything in mondelez? >> no. >> carl icahn getting set to speak to the crowd rights here. we'll bring you those comments live from the pierre hotel right after this break. clients are always learning more
5:08 pm
to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
5:09 pm
5:10 pm
>> we are waiting for carl icahn to take the stage. in the meantime we want to talk about some of these latest moves. the 77-year-old billionaire investor has had quite a year. take a look at one of the holdings yesterday, netflix, another new 52 week high in today's session, one of the many winners he has. >> he has made more money in netflix than he probably made in his first 30 years in his career. the other thing interesting about carl at this stage where he has so many winners, he's so rich now that he can force things to happen. he can just say, look, i'm making a bid. either you sell yourself or i'm
5:11 pm
buying you. that is a very, very compelling -- >> advantageous position. >> not bad. >> he's been on the netflix story. i know we've talked about it for quite some time now. at 267 what now? well, i think it's still a long. i think it's a long in earnings which i think is july 22nd. so next week. i know it's painful. people will shoot against it on valuation. the short interesting 17% or so. the stock still has momentum. clearly a much more difficult trade now than it was six months ago, still the right trade. >> sorry guys. carl icahn is taking the stage. we want to go straight to it. >> well, well, well. we meet again and we meet face to face. we're thrilled to have you here. the timing could not be better. given that tomorrow is the scheduled shareholder vote about dell. >> right. >> what's going to happen? >> i'm not allowed to tell you.
5:12 pm
let's go onto the next one. >> yeah, right. >> i think we're feeling pretty -- we obviously have some insights about it and we feel pretty good. the sec doesn't want you to comment. >> tell me this, there are serious questions at this point as to whether this vote is even go to happen because the dell side, the board pay postpone the vote if it looks as though he may not win. a lot of people have come out, whether it's tee row, van guard, reports of black rock that say they won't support the dell byout. is the vote even going to happen? >> i got to tell you, scott, i've been through a lot of these fights, you know, i'm a cynic about corporate democracy and boards and i don't think these, most of these boards are completely dysfunctional, but i've never seen one as bad as
5:13 pm
this. i really mean it. i've never seen anything where they actually go out and they scare their own shareholders. one guy wrote a headline that was perfect. what did he say? they scared the dell out of shareholders. there was one guy who wrote it. i didn't write it. i wish i had thought of that. these guys, i will tell you -- if -- i know you shouldn't with in it for that kind of emotional thing but i really think -- and i believe in the problem that we have in america, that you have boards like this and they said anybody can bid. i said anybody that happens to have $5 billion sitting in their checking account can bid because they made it impossible to make a bid. the whole situation was, in my mind, a complete travesty. they set this up so dell could buy it cheaply.
5:14 pm
if they wanted to be fair, they could have simply said south eastern came along, their biggest stockholder and said let's do a leverage recap which they should have at least put up to the shareholders to vote on and they never called south eastern back. i'm sure he's not a bad guy. i spoke to him once in my life, alex malcolm. he made a travesty of it. i see him in the "wall street journal," his chest puffed up, how great he's doing. then they come up and say, well, you know, the company is too leveraged in your deal. i said in dell's deal they're's putting $18 billion on and we're putting $5 billion on. they said, well, it's friday. i said do you think any customer or tradesman are not going to want to see your numbers? anyway, we can spend an hour on it. >> let me ask you this -- >> now they may put the darn thing off again.
5:15 pm
i said alex, i want to ask you a question. okay, put that behind us. let's forget it and let the shareholders speak. there's going to be a meeting. if you win, you win, i walk away and say congratulations and you should do the same. there's a meeting and it should be over and then another meeting. you don't have enough people to run the company. i said when there's that meeting i will tell you 98% what do you i've been doing? business? it's a dying business. are you just trying to get dell to bump his offer? >> listen, my history if you look at it is not to buy businesses there are great. i go in when people say they're terrible. you go in when nobody likes it but it's still okay because i have to say and maybe these guys won't like it but a lot of analysts miss this stuff. they do and you can't blame them. you get inside these companies
5:16 pm
it's vastly different. most of them have an asset, not all of them, you know what the asset is? the board and the management. if you can get rid of the board it's a great asset to the company. you know what's interesting though is we go on boards as mi minorities. they weed their checks, they make $400,000 or $500,000. they go play golf. one or two of our guys get on, they have somewhat of a sense of fairness and we turn them. i've done that many times. the motor roll la board was with us. we got rid of xander there. we did it so many times and this is just another one. i'm really going to tell you of all of them this is i would say
5:17 pm
really the worst that i've seen and maybe the second to worst, i don't know. maybe there's another one i'm going to look up. >> you have a lot. >> i have a lot to look at. >> do you think that michael dell will raise his bid amid reports that he will not? >> you know something, i don't know. i will tell you honestly, i know you're not going to believe it. i don't care a hell of a lot. i would like to own the company. i own 150 million shares. i'm in to make money obviously, but i would like to own this company because the real money i've made -- i was a kid from queens, tough neighborhood, never had anything. i know it sounds corny. i'm really motivated to make money but the most money i have made is when we control these companies. we bought the oil wells for 200,
5:18 pm
$300 million. we sold them so sand ridge, $1.5 billion. we went to goldman sachs for $1.3 billion. i'd really love to own this. they keep hinting to me, what do you really want. i'm going to tell you, i'm thrilled to own this company. if dell raises -- my worry is if he does raise, some of the big institutions might go over to him. i'm really happy he didn't but we'll see what happens. >> you could lose. >> you could lose. look, i'm just surmising. i think, i believe this will go to a proxy fight and i think i can win that proxy fight. >> you really believe you can win a proxy fight? >> i'll tell you why. i really think a lot of these
5:19 pm
guys -- dell has done a really poor job. his board has done on awful job. i don't blame dell as much as the board. dell has something to gain. i can understand human nature. what the hell at board doing this for. they're giving it away. worse than that they should have made it a fair auction. we have all this money here. why don't we do a recap. now you hear the board is still going to protect the guy. here's what i think -- why i think i can win. because i honestly would say if you are an institution, why do you want this guy still running the company? he's brought the stock from 40 down to this number. so he mismanaged it. this board went and froze him out. you know there's an old saying that if you -- there's an sold saying that if i trust you, you fool my once, shame on you.
5:20 pm
fool me twice, shame on me. if they go for dell again, then shame on them. especially if i have a very good guy to run it or a good guy to run it. >> people raise the question, jim chanos was here today and he said i don't get it, i don't get what carl icahn and michael dell are doing. i guess they see a hewlett packard like hopeful turn around bu but i think it's a pipe dream. >> he's a smart guy but a lot of things he hasn't gotten. look at the stocks he shorted and went way up. i like anybody. i'm not going to criticize chanos -- >> you just did. >> well, i criticize him in saying i don't get it because with all modesty i think i have
5:21 pm
a much better record than he has. i like the guy and i do like going short at times. but i think the billions i have made are on companies that i really believe chanos might have been short. these companies could be turned around and here's what chanos misses. these companies could be turned around if you put the right management in and put the right board in. it's really amazing. you put the right ceo in these companies and you have accou accountability there's amazing turn arounds you can do. i don't win them all the time but so many of them. look at the motorolas that we have done. so many companies that once you got rid of the ceo they blossomed. >> your track record speaks for itself. you're in the midst of one of your most active activist stretches of your life.
5:22 pm
in the past $14 months you've taken position in well more than a dozen companies. biojenn, transocean, cvr. are you having a mid life crises at 77? >> let me ask you, what else do i have to do? my wife watches me like a hawk. she doesn't let me go out. she's here somewhere. >> she is here. >> very tough, very tough woman. you know what she does? it's not funny. i have this hedge fund, it's independent and all that. the little error i made is my wife wanted to stay in it so she's the only partner. i think she has one tenth of one percent or something like that. at night she looks over the numbers and says how come you went down today? it's like i'm tired, it's 2:00 in the morning. i said you know, i'm going to give you a letter tomorrow, you're out of the fund. she starts mumbling about
5:23 pm
shareholders' rights and i say okay. she forces me to do it, she makes me do it. >> i think you're doing just fine. what's it like to be called the most disruptive individual in business? >> who called me that? i think it was you that called me that. >> you told me i was bullying you before? >> when? >> during our original little thing. >> i don't know who called me the most disruptive. i don't know if that's good or bad. >> is it a compliment? >> i don't know. i like the idea that what i do is shake these companies up. they're all so -- not all. there are some good boards and i want to say clearly when we get on these boards we turn all these companies around. we bought cit. we have -- the record is that i'm no genius in managing. i don't even like managing. i go in when there's a crises because i get tough.
5:24 pm
i know it's hard to believe but i get tough. >> i do. >> here's the thing. aside from that i really like finding the new ones. it's really exciting. >> what makes it a target? what makes a good target? what do you look for? >> i know it sounds a little silly but you almost look at companies that are badly managed. you meet these guys somewhere who run the company and i want to go after that company, you really do. >> you meet the guy, you don't like the guy and decide you want to go after the company? >> this really is a true story. i don't care. i don't know if the guy is even alive anymore. the ceo of twa, we were going after him and we are having this big fight. >> that was an ugly fight. >> i'll tell you what happened. 13 d, they still do it. it was like knee jerk. if you want i want to own the company they say you're lying. if you don't want to own it they
5:25 pm
say you're lying. 13 d they say icahn is lying. there's union old judge, pollack. he says i want to meet the ceo of twa and see him in my courtroom tomorrow at 8:00. i want to see him and i want to see icahn. this guy didn't like that but we bring him down. the ceo is a nice guy but somebody you wouldn't want running your company. he's there and he talks to him and he's, you know, typical kind of guy, what i call the head of the fraternity, looks you straight in the eye, talks, might not be too good here. i go up and the judge looks at me and the first question he asks is, he says do you see the ceo over there mr. icahn. i said yeah. he said if you take over the company what would you do with the ceo. usually the guy is staring at
5:26 pm
you and you want to be polite. i said the hell with it. the first thing i would do with him is i would fire him. the judge looks at me and said i find mr. icahn credible. no joke. bangs the gafle down, thank you. that's what you run into. you meet these guys who shouldn't be ceos. meet the board, if you have really wanted -- it's better an saturday night live. if you go to these board meetings and sit there and listen to what goes on there and these ideas they're talking about, these guys, they shouldn't be micromanaging the ceo. the ceo should do what he wants to do unless he does something stupid. then you come in and make him accountable, unless you're going to take over a big company, do a merger, some secular thing. these guys sit around with their
5:27 pm
crazy ytideas. they never look at the numbers because they're all buddies, until it's too late. i don't think we'll let this thing go through where this guy makes a bid and if you have read this contract which goes 400 pages. i honestly asked the lawyer who wrote the contract what does this mean. he didn't know. it's so complicated it's almost impossible. people say why don't you bid higher, i can't because i don't have $28 billion sitting around. how are you argue to get it back when they won't give the bank a breakup fee. they want you giving $50 million in commitment or get a breakup fee if it goes higher from their bid. they won't do that. it gets me so -- they didn't think i would get anybody. i put up my own $5 billion. the only guys that stood up for me was jeffries and a few other hedge funds. jeffries stood up with $1.6
5:28 pm
billion. are we done? >> we may still be on live television. i'll throw that out there. one of the reasons that you are able to do what you do in the fashion in which you do it is because you have what you say is permanent capital. you don't really answer to anybody other than your wife gail you said. >> she's sitting over there. >> so that enables you to in a sense do whatever you want. you have staying power that others don't, right? >> that's correct. that's really correct. that's why i can do this. it's very hard to be an activist because these boards can tie up for years. you look at iep we're up 1200% since 200 doing what i'm doing. they don't tie up once they know they can. they only do it if they think
5:29 pm
it's going to work. this is what their advisers do. it's a vicious cycle. the whole system is dysfunctional. that's why i make so much money. so i'm not here to say -- i mean, it's not the best system in the world. corporate govern ans in other countries are better than this country. in this country they hire lawyers and then they say it's good. it's like the medieval kings would say it's good for the pez ants when we hang their kids, teaches them discipline or something. >> what do you think goes through a ceo's mind when the assistant goes into the office and says carl icahn is on line two. >> the first thing they do is cancel the golf game for the next three days because they're afraid i'll see them on the golf course. then -- i'm not being completely
5:30 pm
facetious, i think that's part of it. i used to say the only way to get the guy off the golf course is mr. icahn called and he filed a 13 d. i'm being facetious. there are a lot of guys that are good. >> what is the worst thing that i ceo can say to you on the phone? >> i never really thought about it. they never say anything bad, they really don't. they say, good to have you as a shareholder, mr. icahn. >> reed hastings of netflix -- do you still have a position in netflix? >> yes, i do. i haven't sold one share. i told you that. he doesn't believe me. >> but you guys change your mind a lot. i have to make sure we're current. >> the credit goes to two guys that run that fund, that run that account and they're both -- both have a huge success the last two years. one is my son and when i wanted
5:31 pm
to sell it at 100 points ago, i really wanted to sell it, my son threatened to leave. that's my son and i really helped that kid all my life. he just says i'm resigning. i said okay, relax. >> i bring it up because reed hastings said and he's the ceo of course, i was worried about him when we didn't know him but now i must say that i enjoy his company. >> i thank him for that. you know what i said to reed? you know, they came in -- this was after the stock went up, you know, 150 points. he goes, you know, dave, brad -- these are two guys who wanted to be on the board. he really was nervous. he said we decided not to put you on the board. i said what a surprise, the stock is up 150 points. and he's smiling and looks at me and he's got advisers telling
5:32 pm
him i'm going to fight. he said can i expect a proxy fight. i said when i guy makes me $100 million in a month and a half i don't punch him in the mouth. i thank him. he's a good guy. i like reed. smart. >> you've made like a billion dollars in netflix in a fairly short period of time. >> i got to split some with my son and his partner though. not a hell of a lot. >> let's move to herbal life. herbal life is in the news today. did you see the news today? >> i was told about it. >> i'm sure you were. are you still in herbal life? >> still in herbal life, haven't sold a share, in fact, we bought more since then. >> there was a report that the ftc called the company's practices disturbing. you've made a quarter billion
5:33 pm
dollars tlhus far in herbal lif, correct? >> that's correct. >> you said famously that it could be the mother of all short squeezes. is that where this thing is heading? >> i think it's the daughter of all short squeezes already. so it's coming up, it's going up, it's moving rapidly. but you know something, i want to tell you now you're not going to get me to say bad things about achman. i like achman. you know why i like him? i turned my thinking about him. anybody that makes me a quarter of a billion, i like. so i got nothing bad. hey, the guy -- to be honest with you, i never would have been looking at herbal life if ackman hadn't been coming out with that report. because i'm no great fan of his i decided to look at it.
5:34 pm
when i read that report, what he wrote, i said it makes no sense. i'm good at reading those reports over the years. i said it makes no sense. then it occurred to me to wonder who the lawyer is that was advising him. he's on the stage pontificatinp. if you just do a little homework on this, this is why these things are simplistic. on my twitter account i'm going to show people some of these no brainers. look at the simple thing here. so i go look at this report, read it for two hours. i said this sounds like bull but i can't tell you. i look at cromwell, his lawyer. the ftc has a division of anti-trust and a division of consumer protection. i look up cromwell on google. they got nobody, hardly anybody
5:35 pm
in the consumer protection division. the lawyers are all specializing in anti-trust which is vastly different. sullivan cromwell, his lawyer, wasn't any expert on this stuff, no expert. so i go call -- i say i don't much about the ftc but you got a business with 35,000 people working for it that's been making all this money that has been really, nothing really ever proven about it. are you going to close a firm like that down. so i called an expert lawyer, a top law firm that just does this. i said, listen, obviously, i want you to read the report. please read it for me. i guy on the phone 35 years dealing with the ftc. consumer protection. he reads it, calls me back and he's laughing. he says this is a pile of -- i'm on tv so i won't say it, a pile
5:36 pm
of ash surroundty, complete nonsense. i can't believe anybody is writing that the ftc would want to closes it. i got interested in it, bought a lot of stock and it went down. cromwell never wrote an opinion that this company has any problems. you know, ackman, i would just say to you what i said to you before, that the thing that is amazing to me and at the very at least you could say is not ju dishes is go short 20 million shares of anything and go talk about it. i mean, i've been short. i'm sure chanos would tell you, i don't think you see him getting up there and taking huge short positions like that. it's stupid to take that big of a short position anyway but if you do the dumbest thing in my mind that you can do is get a
5:37 pm
roomful of people and tell them that you are short and tell them how smart he is, how smart i am, wow, wow, and the stock is going to go down. i think the guy believed that people were going to follow him. he's not the best thought of man in wall street. i'm not the only guy. but i like him now. i'm not going to say anything bad about him. let me tell you, this whole thing with what's going on, you know, ackman is obviously busy talking to these groups and bad mouth herbal life i would think. after reading the report i was wondering, how does he spend his time? he couldn't spend a lot of time writing reports, not if they wrote that one. i was wondering what he does. now i know, he finds these groups and gets them to talk. every time he talks about the company, i like him for that too, every time he talks about the company it goes up. it's wonderful. i see my stock goes up. i hope he says more.
5:38 pm
what the hell does herbal life do? they give a great deal of money to minority groups. he says it's terrible they don't pay him enough and this is awful, they only got a few thousands for doing this. he has five homes, i don't if he has a jet plane. he's got a boat. i don't think he's in touch with reality. a few thousand dollars to somebody out of work is meaningful. the other thing you have to remember with herbal life, they don't pay anybody for recruitment. they give you a product and do you know they never get returns, minuscule. any product they give some poor underprivileged person, someone not working, achman says we have to feel sorry for them, those
5:39 pm
people make money on it but no one has ever returned the product. so the product is sold. it's used. by the way, you don't even see it on ebay, very little of it. nobody gets hosed. by the way, it does help with obesity which is a problem in this country. if you can motivate somebody to do something about it, it's nonsense in my opinion. i wish i bought more but i did okay. i made a quarter of a billion. i'm not crying and i like him for that. i do. i really mean it. >> i spoke to him and he said, i wanted to be here today, but i'm in a board meeting in canada. i have a railroad to run. speaking of cp, canadian pacific. >> if he runs the railroad, i wouldn't want to be on it. that's what i would say. but i mean, that's not talking bad about him. i would tell you you shouldn't micromanage a company.
5:40 pm
>> he taunted you in a sense on the air during the infamous brawl of january 25th to make a tender offer, make a tender offer, carl. make a tender offer. is that where this thing is going? >> i am not going to get goaded into saying stuff that the sec may look unkindly on so i'm not going to say where it's going. i will tell you that as far as i'm concerned the company is undervalued and i really do believe that the ceo would also agree with that, and i find him to be a good ceo. i think he works hard. i think he believes very strongly in the product. i really mean that. i'm not saying it because we own the stock. i think he believes strongly in the product. he obviously is not a great fan of ackman.
5:41 pm
now we have that in common. now i like him. >> what do you think the best deal you've ever done is of all of them? >> i can't. they are all sort of fascinating. i just enjoy -- i enjoy the thing. what i'd really like to do is really do something -- i know this sounds a little corny. i do a lot of charity kind of things. i don't put much time in but i put a lot of money into, education, i like to do things with education. but i thing i can make a difference with corporate govern ans. i think it's terrible. something should be done like what you see what is occurred with dell. i'm using that as an example. the system is rief with that and i think this twitter account,
5:42 pm
i'm going to give people insights about stocks that i'm allowed to talk about. and i'm going to try to get them -- i'm going to try to put -- if i get enough followers, they don't have to do anything but if you have followers it helps you a lot. >> you're trying to build a following. @carl under score c underscore icahn. >> make that clear. >> you're big on twitter. >> yeah. i think that things can be done. this is worse than where you had these dictatorships. dell reminds you of a dictatorship. they're scare you. they say things wrong about the company. they have all these lawyers protecting them. nobody would have gotten away with it if i hadn't had a spare
5:43 pm
$3.5 billion around and a friend that was willing to put up $1.6 billion. they would have gotten away with it. that is scary that these guys can do it. now if we win and i'm very optimistic, if we win they're still going to fool around. even those guys say we'll do what the shareholders want. the shareholders say don't do it, let's go to a proxy fight. i think i'll win it. i think i'll get a great guy to run it and i think i should win it. the shareholders don't like dell when i talked to them. they are teed off at them and they should be. they should be teed off at that board. dell is -- i hate to use the word steal something for himself but trying to get the board at a very, very, very, advantageous price. why now are they talking about postponing it?
5:44 pm
if you have an election, if you have an election, how would it be if the president is losing and he says let's put off the election. so this is where they're going now. nothing surprises me in these situations. they get these lawyers, it's business judgment. you can kill somebody on the street, that's business judgment. we didn't like him. he wasn't buying our product. >> in true icahn fashion, you winnow oh. >> carl icahn is just wrapping up. classic using forceful and colorful language discussing dell, herbal life and netflix. we will trade all of those stocks when "fast money" comes right back. stay tuned.
5:45 pm
5:46 pm
5:47 pm
>> we are listening to carl icahn here at the delivering alpha conference at the pierre hotel in new york city. he touched on many topics, a lot of positions that he holds. some of the highlights, netflix, i have not sold a single share which seems almost shocking considering where the stock has gone. >> he admitted himself he would have sold at $100.
5:48 pm
i think it's the trade is still alive. it's clearly a more difficult trade now. don't be surprised if when they release next week you see another crazy move to the upside stock. nothing wrong if you are long getting out a portion of it. nothing like ebay today ahead of that release but the story is still intact. >> classic carl as we mentioned before using some language for which we might actually get fined by the fcc. he talked about herbal life and when it comes to ackman he says i'm like anybody who makes me a quarter of a billion dollars. >> a lot of people for him to like. herbal life is one that i just cannot see playing from the short side even if you are convinced that the valuation just isn't there. the potential for some terrible event, terrible squeeze, the mother of all squeezes as he calls it, is just too expensive. >> when it comes to dell he actually said that he doesn't know if michael dell will raise the bid but he sort of hopes
5:49 pm
that he ends up owning the whole company. >> i'm not certain of that. dell to me, 13 and change is where it's trieding, it's sort of -- again i don't think it's worth a look right now. it's more of a trophy piece for him. i don't think he's that fully committed. >> kay kelly has been here all day. nelson peltz, john paulson, top hedge fund managers you rarely here from spoke today. headlines from them. >> john paulson this was his first television appearance. he was interviewed live during the luncheon. he had a bunch of interesting points but what i honed in on was he's very bullish residential housing. he himself has been a huge buyer of residential properties in the
5:50 pm
dessert states mostly through a private equity fund. i think we have sound on him talking about the current scenario. >> housing starts from 50 percent from the trou. that's creating a lot of excitement. however, the peek was 1.8 million. we estimate you need about 1.2 million new single family homes per year to meet population growth and replacement demand in the u.s. while we're up 50% for the lows, we're still only half, we believe, is the long term trade. >> in other words, that's a trade that other people can get in on because there's room to run. on dupont he acknowledged that he had a large stake in them. this was news as of today. it really sent the stock soaring. he released a 59 page white paper on his plan for pepsi co. he things they should buy the business mond lays and turn them
5:51 pm
into a food maker. if not get rid of the troubled soft drink business and try to generate better returns and be more in line with customer tastes in a way more focused on food than sugary benverages. >> housing real quickly, he's as committed on the long side of housing now as he was on the short side. >> he said his conviction level is equal. >> but home depot has clearly been the way that i would play it. lumber liquidators, next week big short interest in that name. the stock has pulled back before. ll is an interesting trade here. >> he mentioned real gee and now the thing that i like about it is you can continue to play the housing recovery without having to work about the refi business going down. it's the number of houses sold times the commission. >> he also talked about gold
5:52 pm
obviously. john paulson said gold is a small point of his portfolio. >> he feels that his setbacks in gold have created a distraction from the other things that he's doing. his merger funds are doing terrifically. gold has been a good, bad story for him. he got in at 900. he has upside from where he started but perhaps should have sold out at the top at 1900 two years ago. >> easy to say now. gold is easy to get in when everybody is entering the trade but when everybody starts to get out it's a much different scenario not like trying to get out of city field last night when everybody is trying to get out. everybody is a gentleman going in, not so much going out. >> let's get a check on big after hours mover here on earnings. let's go to josh lipton.
5:53 pm
>> we're watching ebay reporting after the bell. eps of 63 cents which was in line. revenue comes in at $3.88 billion. guidance for the third quarter and the full year clocks in below estimates. the ceo warning saying macro economic headwinds in europe and korea will continue to be a challenge in the second half of the year. melissa back to you. >> it is those warnings about the macro economic headwinds in emerging markets that is really -- >> we said be careful about this 58 level, 2004 high, watch out. get out of your position. here it is low. >> first move tomorrow when we come back. stay tuned. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking,
5:54 pm
i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer
5:55 pm
or who have or might have prostate cancer, and women who are or may become pregnant or are breast-feeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel62%.
5:56 pm
>> welcome back to a special edition of "fast money" here from the delivering alpha conference from the pierre hotel in new york city. yahoo! shares soared ten percent, having its best day since october of 2008. pete, a lot of people made a lot of money, especially in the optioned market. >> they certainly did. when you look at the way the options have been trading the
5:57 pm
volumes have been unbelievable and they don't think it's over. much like when the financials were running we're seeing this out of yahoo! right now. a lot of bets played that the upside is not over. >> are you seeing people roll up, taking money off the table? >> roll up and absolutely going towards the next upper strikes, those 30 and on up. >> pete has been on it and i know we have's talked about yahoo! since it was the mid teens. here's a day where the stock trades 80 million shares, makes a 52 week high. i don't think tomorrow should be your first for ray into the name. you might get an opportunity to get this cheaper. it happened before. i'm with pete on this one though. i have liked it for a while. like the gentleman last night said i'm not sure it's a 40 handle but the low 30s wouldn't surprise me. >> select come farthfort is mov the after hours right now, mattress making but bad guidance. >> it's no longer about the
5:58 pm
earnings. it's obviously about the guidance. they couldn't follow up with temper pedic who had great numbers. this stock is getting punished for that right now. >> it's that time of the show to do the final trade. let's go around the horn. guy adami? >> we've talked about biotech on this show for quite some time. sell jean made another all time high i believe today. it feels like it stretched but it's a name that continues to work. i think they report next week. i'm not convinced it's an earnings story, doesn't matter. >> bank of america continues to trade. there are over a million contracts traded today. 800,000. folks are looking for more out of this name. i think it's going higher. >> karen? >> i took some money out of bank of america. i feel like we are in a different phase of the evolution of the bank of america story, that they are out of crises. now it's what can we do as a bank facing the same >> thanks so much for watching. we'll see you tomorrow at 5:00.
5:59 pm
"mad money" starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." want to make friends? just trying to save you a little money. my job is not just to entertain you, but to educate and teach you, so call me. sometimes, sometimes, even a grizzled veteran like me can get

93 Views

info Stream Only

Uploaded by TV Archive on