tv Fast Money CNBC July 22, 2013 5:00pm-6:01pm EDT
on cnbc.com co-hosting by our julia boorstin and tomorrow two big numbers coming out. >> of course we turn our attention to apple and who else do we get tomorrow? >> at&t will be reporting on our watch here on "closing bell.." >> lots to watch. industrials, materials, all coming up. >> that's it for "closing bell." thanks for joining us. >> "fast money" begins right now. >> see you tomorrow. >> live from the nasdaq market site in new york city's times square. i'm melissa lee. we are with pete najarian, guy adami. the top talk. netflix calling after reported earnings. netflix beating on the top and bottom line but guidance and subgrowth from weak. how should you trade after an 180% run this year. pete? >> this is one of the reactions
you expect from the impact when you get exactly what was delivered which is the projections going forward aren't what everything expected. i still think you have to look at the international markets for their growth. that's where i continue to look. that's where they can expand in europe, canada and latin america but they have not done on outstanding job. as a matter of fact they have been a modest job so far. i don't think if you are long this stock you would want to sell it just yet. certainly there's pressure on the stock in the after hours based upon these numbers. all of these money they spent on content, they needed to deliver more than they did. that's why you're seeing the selloff. a lot less movement. similar to google. >> that's an interesting point. do you know how much this stock moved on average? 26%. it seems like a round is error for a stock up this much. a lot of pete's points are
important. these guys are going to have to demonstrate over time how they're going to grow into this valuation. when you look at this chart -- when i was staring at it todays, i was like that previous all time high is within shooting distance. to me, middle part of the range here, i think 200 to 300 for a while. >> is this really a surprise? they had to go in and top expectations in order to continue higher, right? >> it surprised me. last week -- i'll be on record. i thought it was going to be higher after earnings. clearly i was wrong. pete's point about google is very interesting. clearly two extraordinarily different companies. we are not comparing valuation. we're talking price earnings. we'll see if netflix does what google does and rally all the way back. i think it will. i understand the valuation is stretched. the gross margins and operating margins improving. i'm not trying to paint a silver
lining here but i think the story is still in play. we'll see if shorts lean out tomorrow. if they don't it's headed higher again. >> what are your thoughts? >> it's a classic situation where you have super positive momentum and a short interest. they squeezed the stock to where it is now. when it's price to perfection like that you have to expect high volatility. netflix is a great managerial story which is why most guys like it on the desk. this is a very difficult stock to own on these levels. >> he's been on the latest. in terms of disappointment, there are the obvious ones, but in terms of sort of beyond, behind these numbers, what are you are looking at? >> actually i'm not terrifically disappointed. they delivered a very good
improvement in their contribution margin. earnings came in a penny above us. the story with netflix over time is they're becoming a high margin tv network company. but there's a transition there. you transition from super volatility growth to earnings growth. i think that's what we're seeing right now. the expectations were incredibly high. not only has the stock been rallying but there is a web cast that a lot of people thought the quarter was a slam dunk. i think people were reading too much into the for mat and i would be a buyer. this is going to be a profitable company. look at revenue multiples. these guys are trading at about three and a half times ed to revenues. the average is low three, high six. this is going to be one of the best growth stories in that peer gro group. >> would you rather see
increasing margins or increasing subgrowth if you had to choose? the content calls and the ability to spread out the content calls versus a bigger and bigger group of subscribers? >> the stocks will go where the market opportunity is. i'm not sure if they are going to be a $16 million home opportunity or a $35 million opportunity. these guys are spending in content on hbos level. that's enough. i think you can level out content spent and grow revenues through subgrowth or pricing leverage. they can raise rates over time and have a margin like hbos or better which i think is a formula for the stock to work. >> how many quarters or how many years do you think netflix takes to become a mature company when this 70 times forward earnings is a thing of the past? do they grow into this multiple? i'm assuming you believe that they do? >> i absolutely believe. i think it's going to come
through margin expansion. first is top line growth and second is margins. we're transitioning to the second stage which i think will be a powerful one. >> in terms of the next quarter the guidance was very disappointing. what you are modelling? >> there is a contact coming out of the back half of the year. the july quarter had orange is the new black out in july. it had been here in the september ending quarter. their earnings guidance at the high end is basically where we are, we're above street. i'm not terribly disappointed with the guidance. the key is this transition from just beating everyone's expectations on subgrowth that has to slow at some point to delivering margins which is what we're seeing right now. >> thanks for your time. >> thank you. >> he mentioned the ability to raise price. michael pachter has a sell
rating. he did a price sensitivity analysis. he said that churn would increase, churn meaning subscribers would drop off if netflix would increase prices. >> they shot themselves in the foot trying to change their price and that is the big risk. this is a company that shot themselves in the foot two years ago. really they needed to do an above face quickly. over time will tell. your question to him is the really important one. what happens when this five, six episodes of arrested development roll off and you don't care to sit around until the next piece of content six months out. >> i'm encouraged by the potential of the international growth. europe is talking about 30 million out of europe alone. latin america, if you can get five percent of the brazilian population. you've got plenty of reasons to
have growth. it's about penetration. >> you're obviously a netflix bull. in the green room you said by the time we are on at show time the stock will be trading at flat or higher? >> right. i actually would not be surprised what guy was talking about earlier, if tomorrow morning we see this closer to flat and higher than we close today. >> that would be great because that means the shorts can't push us. >> quick programming note. julia boorstin will be co moderati moderating. be sure to catch the action on our live stream on cnbc.com. names like micron, tesla, best buy up triple digits. hold or peel away and lock in profits at this point? >> i like to talk about
celegene. you had a couple of negative headlines last week. the stock initially sold off and another all time high today. this is not your typical biotech. pete can speak to an unbelievable balance sheet, great cash flow. they have a series of drugs. i think in the farm aspace it's as good a company that's out there. >> on a regis favorite, micron you would sell, dan? >> this doesn't make a lot of sense to me. when you think about what's going on in the pc supply chain, it's not one that i like. i know pete is going to jump in here quickly. i shorted it a few weeks ago when it was at these levels. it came down hard after they reported earnings. insiders were selling stock hand over fist. i covered the short i'm looking to get back in around 15. >> i look at best buy and this has absolutely defied gravity.
it moved to the upside, was given up for dead. they have done a great job of the price match and the mini store within a store. they are doing an outstanding job of finally getting after their competition. >> you would hold onto best buy? >> the problem was they never did anything about it. they remained the -- people could walk in and then they would go and order on amazon. they no longer do that. they walk in and actually get help from people inside the store. >> i challenge that a little bit. to me after the stock has had a massive run there was a a lolt of excitement about the samsung store. there's saturation, margins are coming down. we're going to talk about apple. samsung is down 16% in the year in korea. if you can't discount a lot at the retail level, you would
rather get the rock bottom place. >> they have done a great job with e commerce and getting people into their store. >> it's not necessarily this is a great business for the future but it's where it has been in the year past. >> it's rocking to the upside and still trades at these levels at ten times earning and they have cash. >> this is like a warmup for the street fight. all right, anthony, hugh lewlet packard ard? >> i like them. i spoke about them when we talked about the hedge fund trade of the week. this was a broken stock with too many acquisitions. the killer thing is management and they're turning it around and i would stay long. >> last week we talked about maybe for the first time in a while tesla reversed and went to the short side.
i thought that july 15, 16, 17 when we saw 60, 70 million shares trade, i'll stick to it. it's painful, i get it. you don't have to be in it but i favor the downside. >> let's check another name moving in the after hours session. texas instrument. results are out. beat on the bottom line. revenue in line with expectations. third quarter guidance was a bit light. coming up next dan lowe cuts a stake and quits yahoo!'s board. the s&p hitting another all time high. is there resistance ahead. we're talking the charts when fast comes right back. ♪ this is the pursuit of perfection. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades.
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television. >> today's time trades, billionaire hedge fund manager sold the majority of his stake in yahoo! and resigning from the board. yahoo! was the worst performer in the s&p today. dan? >> you got to give him a lot of credit there. he got in and build an outside position when nobody else wanted it. it's come full circle. to me i think there's a lot of risk near term in the story as they get closer to this alibaba monization. hopefully it's going to go public some time in the fall. once again investors are going to have to focus on their core business. to me i think there is risk of the 30 level. i was inclined to take a shot on this thing. with loeb getting out you want to wait. >> would you play the bounce
lower in net anticipation of the alibaba ipo? >> i think it's a great opportunity. i like any time they sell off on yahoo!. any time there's a pull back like we're seeing it's a great opportunity. >> mcdonald's missed on earnings. fell two and a half percent today. >> u.s. comps lousy. that is as bad as i've seen in along time. we said get out. you've seen this before. you've had a series of lower highs now since may in the stock. i love the name. i don't love the stock right now. trade down in the low 90s and pick it up there. >> do you love the stock? >> long time it's going to be fine. the big issue right now is our country is underemployed. the average consumer is cash strapped and this is affecting shares. >> gas prices aren't going to help either. >> right. >> finally from the golden a
arches to home builders, it fell 1.2% in june. >> the existing home sales, the big numbers are going to be coming up wednesday with the new home sales. i think the name might get a boost from this. yes, 30 year rate is higher but if you look at the home builders and look at what's going on through the earnings season so far we have plenty more on tap but it's been very, very strong. i think the pull backs are on opportunity. >> as earning season kicks into high gear stocks trade at new all time highs. let's go to chris barone. let's get the view on the markets first, s&p 500. >> what's been one of the most compelling features of this rally is still how broad based it is at this point. we've seen that with the 52 week high data, we've seen that with the advanced decline lines.
another way we like to look at it is what the equally weighted s&p 500 is doing. that's the chart we have here which is also making 52 week highs. that's reflective of small caps, mid caps and a broad based rally. >> in terms of sectors, you actually like the energy sector? >> we think energy may be starting to improve right here. it's not a leader just yet but there are a number of names starting to come out. we've seen it with oil and gas names over the last several weeks. this is halle burton. we think it's a buy in that 44 range. we would like to see a close of 46. slumber jay block out. hp looks okay as well. >> obviously it's a huge sector, oil services versus oil stocks.
the osx versus oxy for instance? >> some of the stronger names are integrated stocks. con cos. chevrons. we still want to avoid refiners. they're weak and don't have a lot of momentum. they haven't participated to the expect some of the other names in their sector have. >> what about gold? >> 1300 to 1400 is going to be difficult. the most relevant thing is the president down trend. 50 still below 200. >> chris, in terms of gold though, at what price point are you incorrect? where does it break out to the upside? north of 1400? >> yeah. i would say watch silver. silver has not participated in this recent bounce to the west to the same extent that gold has. historically we've found that
when silver is lagging on the downside it's not good for either metal. >> chris, we're going to leave it there. thanks. >> my pleasure. >> oil services, pete? >> we have had some paper in slumber jay recently. more paper coming in there today. i do like that space. the entire energy space though we have seen nothing but activity across there. i continue to think that just about anywhere in energy you can make money. refiners are a little bit difficult right now but they're about to turn. we have to see oil prices coming down. >> a slew of earnings on deck this week. we'll separate the winners and losers. next is apple ripe for picking. shares down 20% this year. is now the time to buy ahead of the numbers. we have a good old fashioned street fight between pete najarian and dan nathan. that's next. what do you drive?
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>> apple reportedly testing larger screens for iphones and ipads. no word on whether designs will come to market. with apple down nearly 20% this year, will a product or design be enough to rouse a tech giant. time for a street fight. pete and dan. 90 seconds total to make the case. >> when you are looking at apple everybody talks about how cheap it is. why? because when you look at their cash position we know how big of a market cap it is right now. they've got a $60 billion market where they're going to buy back the share, that gives you a put to the downside.
i think there's protection somewhere between 425 and 430. that's where app tl can actually step up and buy a lot of their own shares back. that adds to the potential that you have got yourself put protection to the downside. on the upside when you look at the devices i have talked about this being a second half story. the reason, i think they need the larger screens whether it's the iphone or the ipad. they're going to add to apple when they go into the christmas season. i think that's going to be huge. if they can get a deal with china mobile, look out. the stock is back up around 500. >> all great points. the valuation is the biggest one. to me the way i think about this story is i'm very much in your camp. near term though i think you have to be careful. some of these headlines that came out about them testing a 4.3 inch screen, they are flat footed here on the product front. they get 70% of sales from ios devices.
if you are telling me a couple months before we're supposed to see an iphone launch that they may be changing the form and the size, that could be delayed. also if you are looking for china mobile, they're going to likely introduce a lower cost iphone. gross margins is the key you want to look for tomorrow. if they disappoint i think they're going to have an opportunity to buy the cheaper and i will be a buyer. >> anthony, apple used to be a hedge fund favorite. what is it now? >> value stock directionless on the innovation side. i think that the adds they're using now aren't that good either. so this stock is going to go languishing for a little while. i have to side with danielle on this. i will mention one quick thing about apple. if they can get this thing right, the new tag line won't be think different. it will be look different. the problem with apple is it looks the same now. samsung is distinctive. that is going to be trouble for
apple. >> i'm going with petey on this one. back in june it traded around 388. we talked about it and we played what would you -- >> would you rather. >> it basically traded where it traded in april. you have this nice double bottom. we talked about the stock rallying from there. i think it's outperformed the broader market since then. i think there's upside here. i'm with pete. >> even split here on the desk. scott, out to you for the options actions in this name. >> there's at least one option trader that agrees with pete. big buyer of the weekly 460 call spreads. it's a pure play on earnings but because they're a buyer of these call spreads they see apple headed higher, break even as 460. they think that because it's going to get to 470 they think it's going to revisit march
highs. average move into earnings is about five percent. options are implying a little less than that. this would require, this call spread purchase would require a huge move. so they're much more bullish than even pete is. >> all right. thanks for that, scott. we want to know who you thought won our street fight. tweet us at cnbc "fast money" using hashtag bull or bear. we'll give you the results at the end of the show. pops and drops. drop for saks. >> credit rating companies out there talking about the concerns they have. when i look at saks off five or six percent, the possibility that somebody may be interested in this company, i get excited. >> amd. >> the biggest volume day iners i don't. you see a continuation to me on a technical basis. it broke the $4 level.
our friend dan niles, this is one of his top picks. he likes the move into gaming con suls. >> pop for pitny bows, pete. >> short interest in this name. no real news to speak of. i think this stock could potentially continue to rally in earnings. i believe their report on the 30th of july. i don't love the buzz l business they're in but the stock is sort of interesting. >> pop on new mont. >> it has room to go here and it's down 35% on the year but it's only 15% up from its low. >> a pop for the panda cow. one innovator saying move over to the conventional cow. after 7 years of trying he
created the miniature bovine that bears resemblance with the giant panda. he says he'll put the cow up for sale when the right price comes along. >> when you said it took 7 years of trying what do you mean by that? >> i guess it didn't come out looking like the panda. >> what did it require farmer john to do? >> i don't want to know. >> good luck, fella. >> we're going to leave it at that. coming up next, gold soaring above 1300, its best day in a year
but can momentum continue. dennis gartman of the gartman letter joins us next. ♪ [ indistinct shouting ] [ male announcer ] time and sales data.
billion. industrial and automated markets were important. looking ahead txn finished in line. with analyst expectations up about 23% so far this year. melissa, back to you. >> thank you, josh. it's meaningful. >> it's meaningful. the stock sold off four or five percent then. if you want to think smart phones and pcs, this is not the one to think of. they're talking about growth and automotive and industrials. i'm actually long puts here. i think the valuation is expensive compared to qualcomm. >> we've seen the companies that have exposure in chips to pcs and mobile none of them are doing very well. >> true. it gets interesting above 40 bucks.
above 40 this stock breaks out and you're at levels we last saw in 99. the valuation is stretched. the stock is chucking on the upside. so we'll see. >> gold climbing above the 13 30 level. the precious metal has fallen more than 20% in 2013. dennis gartman called this move earlier this month right here on fast. take a listen. >> i use the term watershed very rarely. where do i think gold goes from here? higher, probably a great good deal higher, probably several hundred dollars higher. >> dennis joins us. always good to see you. >> good to be seen. >> what do you do with gold now? >> buy more. i thought to the was a very impressive day. you walked in it went higher. never looked back. i'm not a gold bug. everybody should know that by now.
i think of gold as nothing more than another currency but it was a very impressive performance. i thought it was all the more impressive given the fact that crude oil prices fell sharply this afternoon and gold still went up in the face of that. you have to like it. gold wants to go higher, predicated on a continued expectation that the fed will continue to expand reverse and so, too, shall other banks. >> backward nation mean anything to you in gold? >> it means quite a good deal to me, guy. it's rare that you see gold -- in fact, it's uncommonly rare to see gold backward date but it has in the front months. the go fo, the gold forward rate has gone to a premium. it's hard to find spot, cash gold. that backwardation is an unusual circumstance. you don't sell them in any market and specifically don't sell them in the gold market.
>> would you also be bullish the gold miners? >> it's the first time in a long while i think gold minors can outperform gold. for five years now the gold minors have underperformed badly. over the course of the last several months it's interesting to watch the gdx. it's actually begun to gain relative to gold futures. it's unusual. this is long overdo. if you are the public, rather than trading gold futures you're going to be better off trading the gold mining stocks. first time in five years i've said that but i think that's what's about to happen. >> you still think this rally for the s&p 500 is intact as you are entering the thick of earning season? >> absolutely. it's a bull market and will continue to be a bull market. even as talk of tapering, the fed is not going to be unaccommodative for a long
period of time. i think the economy is showing better signs of strength bit by piece. i understand that existing home sales today were disconcerting. i think things are getting better and even with gold going up, it will be interesting. the proper hedges own stocks, gold. normally they move in contravention. it might be good to own stocks and gold hedging one another. >> thank you, dennis. first time in a long time he has said that gold minors could outperform gold. pete, what do you say? >> the one thing you have there is they have been absolutely beaten and taken out back. i think the opportunity there is they have beaten so far down there is potentially upside there and you're getting decent premiums and getting some yields as far as dividends. if gold is going higher and dennis is right and it's going to go to the upside silver moves
faster so i like silver. >> i do like gold. i think that the fed is going to stay in accomodation mode. i think that price shocks of recent are recovering. i think there was a lot of short selling in the marketplace right here and i think there's opportunity now to get momentum buyers back. >> i got to ask because dennis said it and you just said that the fed is going to remain accommodative. how can stocks continue to go up if the fed remains accommodative because the economy is getting better and they're not going to taper. he made a bold call on owning gold but then he said hedge stocks. >> can i answer the question? you have lower than expected consumption from the lower middle class. the fed is very worried about that. you've had full balance sheet restoration by america's corporation since the crises. because housing prices have not gone up high enough, dan, you
can't get the restoration on the balance sheet for the consumer. we're going to grow one and a half to two percent and the fed stnt going to do anything until that gets higher. >> the s&p has doubled in earnings in the last six and a half years. >> the growth rates are pathetic. >> guys, if only i had a whistle. if i had a whistle i'd below it. it's a good discussion though. it's a good discussion. >> you want real data. you're in a statistical recession in the united states. you're growing below productivity and dem og fee. you're in a statistical recession. the fed knows this and my buddy dan here are going to pass on the fed. >> we love you but we got to move on. let's hit our top trades for tomorrow. the busiest week.
first up ups down 4% since july 12. with earnings out tomorrow, what's the best trade here, pete? >> initially the reaction after they lowered that are guidance was that it was off 7%. it's recovered from that point. as guy points out, if you look at fedex when they had concerned -- this is about a cycle behind. the potential for the stock to move to the upside is far greater. the warning is already out. the upside is intact. >> guy, you're intimately familiar with the ups story. >> i worked with them for a brief period of time. >> about an hour. can we clarify. you wore the uniform for a short amount of time. you didn't work for them. you weren't delivering any packages. >> look at the speed at which he's moving. >> i delivered packages. that's good stuff right there. >> anyway. >> that's how you work. >> he's not even sweating.
>> that's why they get it there the next day. >> he's coming to a home near you. be careful. >> i think he's coming to a stop. >> look at those legs. >> we're going home with that? >> editorial prerogative. at&t out with second quarter results tomorrow, first earnings report for them since the company's acquisition of leap wireless. >> investors were running after yield here. it's a five percent yield. i expect this one to be challenged in this environment. i think rates are going to continue to go up. what i'm looking for tomorrow is most importantly iphone action sagss. you want to see them activating a lot of 5 ss. >> switching gears, phillips 66
partners will begin trading on the new york stock exchange tuesday. >> i don't know this but they got to rue the day they spun off 66 in the first place. they haven't performed since. with that said i don't think you go rushing into this but this stock should trade pretty well tomorrow. they're looking for 21 bucks. psx has pulled back nicely for you enough where you can look at it with an 56, 57 stops. it's a name we like. still like it. >> coming up next on fast, overwhelmed with all the earnings this week. fear no more, the three stocks that must be on your watch list and more importantly how to trade them. we have your earnings play book when we come right back. . 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.
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choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? >> netflix down 6.7%. it was a beat on eps. inline revenues, disappointing subgrowth and the guidance for q 3 was disappointing. the conference call or the video call is set to begin at the top of the hour at 6:00 p.m. eastern time. julia boorstin is set to co moderate that with rich greenfield. you want to tune into that an
cnbc.com. this is the busiest week. let's drill down and take a look at what the options market is telling us about this week's potential earnings. winner loser and the biggest mover. these are things you want to write down. joining us is chief strategist at amayor trade. let's start off with the biggest winner. >> the crowd backs pete najarian. we're seeing from retail traders is a lot of the retail traders are out buying the 450 calls. what's interesting is a market maker move which prices on a one day move on apple showing $17. people are going beyond that which would be a $24 move. >> in terms of the biggest loser? >> facebook. this one is interesting. almost the exact opposite of apple in that apple has been up
8%. facebook has been down 8%. usually people are very bullish on facebook from a retail point of view. what we're seeing for the first time is people actually buying the july 24 weekly puts against a lot of long stock positions. this is a definite mind-set change we're seeing in facebook. >> which is one of the reasons i think the stock can actually go higher. we talked about it maybe trading on 22 and a half, 23. it got there. it feels like for the first time in a while there's momentum and the google report didn't scare people away. i think you can be long facebook here. >> guy, i don't think the market is necessarily disagreeing with you but people are being conservative. they're not going out and shooting on it as we've seen in the past. >> the biggest move or the most volatility coming from.
>> freeport mcmoren. the market maker move on this one you're seeing a stock that's only pricing about an 80 cent move. we're seeing people buying the 29 straddle. when you look at that you also look at the historical perspective and the implied volatility. right now on a 52 week range wear in a 12% percentile volatitity wise. that you are looking for a big move that's the kind of stock you're going to do it in. this i believe will be one that will follow. >> copper prices are down, inventories are up. the grass burg mine is still an issue for this one. >> no doubt about it. it's still below all the moving averages. when jj addresses this entire issue he's talking about july. july certainly a spike in volatility. when you go to the further out months though, it's very flat to actually down so the expectations are once the
earnings are out, the move is in, that's it and we're going to sit for a while. >> jj thanks so much. good to see you. coming up next you tweet it, we trade it. we're turning your requests into winning plays. ouch. over time it really adds up. then go to e-trade and find out how much our advice costs. spoiler alert: it's low. really? yes, really. e-trade offers investment advice and guidance from dedicated, professional financial consultants. it's guidance on your terms, not ours. that's how our system works. e-trade. less for us. more for you.
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>> you tweet it we trade it let's get to your tweets tonight. pete, where is rite aid going. >> when you look at the stock it was trading around a dollar. now it's $3. even though they're showing nothing but growth and strength. i see so much insider selling. a lot of sellers between $2.96 and $3 a chair. i think i'd pause and wait. >> dan, what are your thoughts on the vix? do you see volatility continuing to drop? >> i don't see it dropping too much lower than here. we're approaching 12 which is really the line in the sand it's been all year long. listen, if the market continues to go higher and we see a 1750 print on the s&p we're going to break that 12 level. i don't really see that. to me if you want to protect your portfolio there's lots of ways to do it. i like buying call flies or
vertical spreads when it is as cheap as it is right now when the market is making new highs. that's the best hedge out of there. >> i'd rather not be in the vix itself. oftentimes i'll go to the spiders, buy some protection in the spiders. if the market is going to spike on the upside i'd like to have put spreads on the spiders. buying out of the money call, selling out of the money call. it's a much more liquid instruments that's more understandable than the vix. >> guy, where is spirit airlines headed? >> the stock has been incredible. their traffic report, june better, may better. the only thing you don't like about this on a forward valuation trades twice delta airlines but the momentum in the stock is the upside. you're probably getting rich. i think they report on the 24th.
own it into the earnings. . hard for me to say. >> you said it. good job. is it buy time for real estate investment trusts? >> we're bullish -- neutral to bullish. they will do well in the near term because of the high yield but we're fearful of the ree po market. it will make it tough for mortgage rates in that environment. next six months, market, newly traditional to bullish. >> stay tuned. farmers presents: 15 seconds of smart. so you want to save on auto insurance? drive a hybrid. get good grades. lose the bling. go paperless. combine policies. make automatic payments. and of course, talk to farmers. hi ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪
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>> we had a down and dirty street fight on apple. who won? our bull, pete najarian takes home the crown. it's a victory tonight. let's go around the horn for the final trade. pete? >> i'm going to go with gen worth. it's going to break through and get up to the upside by another $2. >> daniel. >> i want to explain my apple position. >> wait. you said qualcomm. >> i don't think you have to pick a bottom in apple. >> anthony?
>> i think teva is poised for a big run here, cheap stock. >> guy? >> can dan nathan, psx rallies. >> i'm melissa lee. thanks so much for watching. we'll see you 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. other people want to make friends i'm just trying to make you a little money. call me at 1-800-743-cnbc. how many company versus to say that europe has bottomed or even started to rebound before people realize that ts