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tv   Fast Money  CNBC  September 10, 2018 5:00pm-6:00pm EDT

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didn't break the law they went bankrupt they did something stupid. in america you don't put people into jail for that people did go to jail. people lost their money, they lost their reputation, they lost their pride, they lost their future opportunities it's not like they didn't suffer there was no old testament justice. maybe the punishment should have been higher in certain circumstances so i do understand it but i think you have to be careful saying that they should go to jail. >> "crisis on wall street the week that shook the world" airs this wednesday at 10:00 p.m. eastern. >> one not to miss thank you, morgan, very much for joining us "fast money" begins now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee tonight on "fast" just say yes pot stocks ripping higher. the chart master says this is the beginning of the cannabis
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craze. he'll tell you the names to take your portfolio higher. nfl kicking off the opening weekend. the ratings weren't as bad as you might think. we will explain, but first we start off with breaking news tesla rebounding today but tech guru gene muenster coming out with a new note now slamming the board calling for a complete overhaul of the board to keep the electric vehicle maker afloat we should note gene has been a bull on this story and been a fan of elon musk what is behind this rather bold call we'll begin with the man himself who made the call, gene muenster thanks so much for joining us. >> hi, melissa. >> so you say elon musk should probably say musk is tesla, tesla is musk something has to change. it starts with the board what kind of overhaul are you talking about? >> a big overhaul, melissa we're thinking of the nine board members, probably seven of
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them -- six or seven of them needs to go. toby grassio, elon musk and maybe james murdoch can stay the rest have to go. as you've said, we've been long-time believers in the tesla story and continue to be believers in their wonderful mission of extending the globe's adoption to renewable energy i want to quickly say for investors or traders trading the stock, it's a great opportunity to own tesla because it's all about near term. the numbers and profitability of model 3 production which will probably be good for the september quarter, but what has changed? and the reason why we're coming out with this op ed is if you look underneath the hood, we've done that more aggressively in the past two days, we've been alarmed at not only the talent that they've lost. it's been well publicized, 13 executives have left many of those have gone to competitors. so giving some of tesla's knowledge over to the competition but what is more concerning is what's going on we believe on the recruiting front. is some of elon musk's tendencies that we see and we've
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been social media presence and his tweeting, some of that also comes out in interview processes. they're looking at recruiting top talent and their ability to bring in new talent we think is going to be foundational for the company over the next several years. so the issue that we have is not about this september or the december quarter but needs a wholesale change for the board to really movie lon into a visionary role and build some better directions and controls around him and allow the company to flourish. we have some suggestions about who a new executive chairman may be in a nutshell, melissa, that's what we're proposing. >> in a nutshell, gene, you say the numbers for the next couple of quarters could be good. there are many on wall street that believe that. let's say that happens they actually meet all the projections, et cetera, that they are able, if they so choose, to tap the capital markets for more capital in the future let's say all of that happens. do you think that the pressure
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abates i mean, does the problem go away at that point or do you think this is something that needs to happen no matter what the stock does from this point on, no matter what the company's ability is to raise capital. no matter how many earnings targets they actually hit? >> it needs to happen. the stock can rebound, call it back to the high 300s based on just what you described in the near term, but in order for this company to be multiple times bigger, to be a $500 billion company out there, to be one of the leaders aboutwhat's going to happen in tech over the next decade, in order for that to happen there needs to be a fundamental change in elon's role about a month ago we wrote an open letter to elon and we're optimistic that people don't change often but there could be some polishing around how he deals with the public and investors in the media in fact, i was wrong it is that he is not going to change while they may get through this tight spot in terms of profit
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bil -- profitability, i may be wrong. great talent is leaving. doug field leaving apple was a huge loss. we talked to people inside of tesla and heard that his loss was something that is very frustrating for the rank and file that can't happen and ultimately the board needs to take some responsibility and basically resign, 2/3 of them need to resign to right the ship elon, if, in fact, he really does, his goal is to prove the doubters wrong the best thing to do is resign the executive chair position and give it to al gore >> let's say, gene, elon is no longer ceo he takes some sort of chairman role or whatever you want to call it. you outlined a couple of key problems for tesla imimmediately in terms of talent and tweeting behavior separating him from the ceo will
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solve the talent, retention and recruiting problem because it will sort of insulate those people from elon, but in terms of the tweeting behavior, it still opens the company up to the same liability, doesn't it, as they would face as elon now, today, as ceo. >> we'll still see some of the same nonsense. i don't think it can get worse than what we've already experienced, but at least you can kind of say that's elon and that's a visionary and that's part of being an eccentric part of the value i think that piece about recruiting, retaining and recruiting is critical for the success of any company and that's a game that tesla's losing today that's why this is really a moment of action for tesla i also need to emphasize something, is that tesla still needs elon and the reason is that he is -- what is a visionary? if you really break it down, a visionary is somebody who thinks of big ideas but also sets the pace
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he just defines a pace of hard work inside that company we know that that's true we know that there are a lot of people we describe as disciples around his work ethic. i want to be clear i think elon needs to be a part. we do not need another scully situation at apple like steve jobs left. what we're proposing is elon is in a comfortable visionary role that can leave some structure for recruiting and retention. >> gene, do you have any insight if they're actually thinking about this prior to your op ed or thinking about it now in the wake of? >> i suspect that they've been not thinking about resigning from the board i think that the board doesn't have a backbone. i think that as hard as it is for me to say that as a believer, it's true. so i don't know if they have the self-reflection to go through with this plan they need to do that i think that they're probably thinking more in the context of how can we reel in elon and not
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have him behave on social media. that's missing the point there's a much bigger story here going on and i hope that -- >> who forces this change, gene. the board doesn't have a backbone, i would imagine seven of the board members, six of the board members aren't going to resign on their own for the best interests of the company how does this change actually happen will it have to be a large shareholder that takes the charge here? and who might that be? is there anybody who has that in them, that fight in them >> i think there are investors out there, i've talked to them more recently. their tone has been increasingly more concern, not surprising, but the math of it, melissa, is a little bit more difficult. you need a super majority. essentially what happens is you need 70% of the stock to vote in favor. there was a motion to remove elon this summer that failed this was before all of this stuff over the last couple of months, but the mechanics are a simple shareholder vote and it's
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unlikely to happen really for this to happen, and this is a tall order, but would really take a mature point of elon to say i love this company. the best thing for this company is to have an outside executive chairperson run this and for me to do what i love. >> gene, thanks so much for sharing this with us we appreciate it gene munster for an overhaul of the board at tesla head over to cnbc.com to check out the entire vote. you saw the reaction of the stock today. could this be the start of a turn around? if what gene outlines, would that make you more bullish on the stock, grasso? >> i think you would feel that there are things that are going to get better. i think longer term you still have major issues that plague tesla, but when you look at tesla's performance year to date, it's only down 8%. you have to look at this and say is the top capped and the bottom capped i would say your bottom is not capped >> the problem is they're going
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to need money at some point in time the tesla bonds still continue to be down they haven't rebounded that much if you have a crisis of confidence at the top, then it will be harder to invest bond investors going forward. part of the reason why this company needs elon musk is because he is that visionary people give him that benefit of the doubt. they need to bring in some kind of an adult in the room, so to speak, very typical in silicon valley elon can be elon he can be the visionary. i agree with gene 100%. >> brian is talking about the debt that's due between now and 2019 by 2025 i think it's close to 9 billion, but that's not the issue. the bottom line is return to fundamentals we're a few weeks away from getting preliminary third quarter delivery numbers and that to me is what it's all about here i would underline a couple of things gene said gene referred to this as a wonderful mission and that's great except for the fact that when investors are investing in
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a company, they would rather invest in a b plus plan with an a plus team and the bottom line is operationally they have not been able to produce i don't care what you say. what we're investing in is the a plus idea without a plus execution. >> imagine if there were an a plus idea with an a plus management team. that's what gene was saying, that can change if they so choose it. >> look at the little rally we had today because they promoted their so-called fixer within the company, right that was a tiny little company imagine if you brought in al gore, foreign auto executive, that could be massively game changing >> just from a trading perspective, this is the game of how it traded over the last couple of months broke 280. we said it will probably revisit the april low. that's exactly what happened it held basically at the 250 level, it traded down 2 in april and has bounced.
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what does that mean? in my opinion you have a very definitive risk/reward i don't think it will retest those levels i think there's a chance it trends higher in the wake of all of the news we're hearing. at least you know what you're trading against for the first time in a long time. >> the problem is with that down side is if we break that level, you know the same chart. we go down to $180 if this thick breaks now, if we break the most recent low. >> 244. >> we go to 244. >> after that. >> below that it's 2016. >> we haven't touched 244 since the first time it hit 244 even with all of this stuff thrown at it. >> 252. >> yeah. >> now you get these little baby pops that we're talking about, you make a series of lower highs, then the real story is broken and that fear mongering of everybody talking about tesla below 200, that's a potential. coming up, check out shares of one of the highest ipos sonos tanking.
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we'll tell you what wall street is saying about the stock. plus, it's been ten years since the wall street drop later, pot stocks are blazing. even the chart master can't say no to these names. he will explain why he thinks they're heading higher and the name in particular he likes. we're live from times square in chneyo cy. mu more "fast money" after this who would have guessed? an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up!
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welcome back to "fast
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money. sonos getting fresh in the after hours. seema modi is in the newsroom. >> some wall street analysts are forecasting a drop in sonos. brent hill says given the stock has had a great run up, up today 13%, he expects a small pull back jeffries still thinks it can carry to japan which is currently the second largest streaming market and while sonos has focused exclusively on the home, analysts say moving into untapped categories like commercial and portable would be favorable for the stock. sonos will have to move fast as amazon, apple and google are working on theirs. sonos has been on a tear and it's currently down 15% in extended trade. >> seema, thank you. despite the move in sonos,
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recent tech ipos have been on fire roku up 10%. stitch fix up, spotify, drop box up 30% since they went public. we should note that spotify went public via direct listening. the percent change might be thrown into question in terms of how we calculated this is this move in sonos a warning sign for the rest of the high flying stocks? >> what it's a sign of, we're talking about market caps that are nowhere near the size of the big boys sonos is 1.8 million there's a lot of stock compensation that comes out. and the expectations in growth these guys have ebida down 40% year over year there are some reasons why investors get caught up in the name being pushed out in the peak of it and the nasdaq is pulled back. >> i agree, there's no way look at what sonos did
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it was already up 13%. we're giving back a little bit this is all sonos specific in my view and it's all about the expectations the expectations were just too high for this particular company so now you're getting that pull back i think around $18 it starts to get a little interesting. >> do any of these look interesting to you >> roku does roku ipo'd in the final. stock went from basically 30 to 50 almost gave the entire thing back $70 a share. a lot of these companies are going to have tough sledding until they find their way. there are a lot of wasys to be bearish. they're in 25% spotify, you're a music lover. >> i don't know about sonos.
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to me, i love the product. i don't have the speaker, i have it throughout my house i don't know how much penetration you're going to get. it's more of an alexa dominated world or google. >> people love the alexa with the smart life i'm told. >> i don't want anything to do with it. >> i'm told. >> it's a listening device. >> people have gotten in trouble. >> be careful. >> mathematics maybe. >> sonos. >> b.k.'s never going to have one of those. >> apparently tim either >> it works reverse though you could have an alexa with the sonos enabled. >> you don't have a spotify. >> it's not a play list guy. still ahead. it's been a decade since the financial crisis she says she knows how to avoid the next one i'm melissa lee. cnbc first in business in the meantime, here's what else is coming up on fast. >> this is your portfolio and
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this is your portfolio on pot stocks and the chart master says the group is still looking hot and he'll give you the name on his radar. the nfl ratings continue to get oue r and it could spell trblfoa couple of stocks we'll give you the names when "fast money" returns
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welcome back to "fast money. pot stocks are lit and they're not showing any signs of cooling off. dom chu is back in the newsroom with the details hey, dom. >> reporter: melissa, some investors have been cooking. over the last month the returns
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have been pretty astronomical. that's the performance taking place. many of the u.s. traded shares of canadian cannabis companies have seen their values soar like the depository receipts for aurora growth which is a medicinal marijuana company. shares are up roughly around 35%. one of the more familiar names in cannabis is north of the border this company made a lot of waves when it got a massive investment from constellation brands. shares of it up around 85% during that span cronos group is a canadian group that specializes in, you guessed it, marijuana. then a recent ipo, tilray is up around 230%. back on july 19th it was $17 a share. it had highs over $97 a week no doubt cannabis companies are hot right now, but those big gains it's a short amount of time have stoked some skepticism
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and there are some worries without a new round of catalysts, melissa, there could be a deeper pull back that keeps that shorter and medium turn up trend back in place. back to you. >> dom, thanks our next guest says the hot pot stocks are going to heat up more chart master carter is breaking it all down. hey, carter. >> i think that's right. we'll look at one or two names conceptually it's still early goings in what should be a global growth phenomenon you talk about that. let's zero in. i wanted to pick sort of a small one, nice name, organagram this is the etf or, excuse me, ticker in the u.s. it's a canadian stock. i wanted to focus on the price volume correlation the important thing is this, is that when you have a heavy volume up thrust, you're basically getting signs of accumulation that's what this is all about so that essentially, right, when the volume spikes, you get a big move in price.
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volume spikes associated with big moves in price and that setup, just get rid of all of this, right, is a textbook, well-defined tops. it looks like yet again to the highs. now onto the next. this is a big name and you all know it, but it's the same principle. essentially big bouts, heavy volume up thrusts and then it's a company with heavy volume, which is to say signs of accumulation in sensitivity of price. people buying up regardless of how much but the key to both of these, they're above their january highs. that's not the case for the general aggregate. so if you look at this etf and this is neither the opportunity nor the issue. basically as an aggregate pot stocks all peeked in january with the market and have yet to recover back to those levels but based on, again, this recent heavy volume accumulation as we
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approach the former high, my thinking here is that we are going to now exceed the high and that you've got quite a good setup for a big breakout i like the theme but, again, you could pick the wrong one one way to do it is to stick with an aggregate like this. >> carter, why don't you come over michelle will bring the chair in thank you, michelle. you know, last week, carter, we were making the comparison between crypto and pot stocks. >> that sounded absurd. >> let me just -- okay >> what do you really think? come on. >> but in terms of -- >> there is no comparison. >> but in terms of the chart, bitcoin prices in december rose exponentially and on heavy volume. >> right. >> is that similar to what we're seeing here? >> you compare an operating business that has ultimately a long-term future growth, analyzing fundamental way, decide what kind of cash flow, what you want to pay for it. at some point that's not what a crypto is, right a crypto is analogous to gold in
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the sense that it is something that one can spend it on you cannot assign any, quote -- there's not -- you know, there's no -- there's no management. there's no plant equipment. >> even if there are similarities on the surface. >> there are always similarities there were similarities between amazon the key here is these are ultimately businesses that whether this one survives or that one is not so much, it's just the beginning >> so, carter, let me ask you this so people bought bitcoin at 19,000 and were hurt because we had the parabolic rise what should people look for in these stocks technically maybe i shouldn't be buying at these new highs? >> sure. the rise is nowhere near the move in bitcoin. bitcoin was multiples in excess of this. it would be simply this. individual names not participating, but we have a little bit of that as of now you have this.
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let me put this into context we know that great manias happen and then you work out the excess this happened in the railroad in the 1840s. this happened in the south sea at some point do you know how many soft drink companies there were 200 and now there are six. is this as a theme enduring? for sure. >> is part of this a scarcity in the amount of shocks will the industry sell more out here and names like tillray that have been parabolic will get spread out >> i think there's that. then there's something that speaks to the enduring nature. figure out what happened with uber, then a big auto manufacturer said i'll have some of that. i'll invest 500. that's what we're seeing now we all know the constellation
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brands again, someone has a significant valuation and they're cheaper than the big boys. what carter talked about on the volume moves is the equity world. there's so much torque rate. it pushes around 3, 4, $500 million companies. we've seen some of the companies move around canopy a lot of this is getting more liquidity. the comparison is only about new asset classes and they're under invested asset classes. >> as an investor in the space, does it matter to you where it comes from does it matter if the trading volume is fielded by retail versus institutional money >> yes, it does. to be clear, it's a lot easier for institutional investors to invest and they are coming in faster i've seen this in emerging markets and developing markets that are less liquid
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the etfization of your underlying market. if you don't know how your stocks trade, you're dead. the bottom line is, the fundamentals are about strategics coming in i would say only 1/3 of this is about a marijuana market this is all about global cannabis. >> i hear you and i still believe october 17th that rec marijuana date is the cannabis what i also believe you're going to see a major player. i haven't heard este de lauder buy into this. >> in terms of the oils. >> wellness care. >> if you believe in the story you believe in global dynamics, wellness, pharma the rec story is great that's not a reason to have valuations where they are. canadian market is not always in the valuations
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>> i presume you bring us cannabis charts because they're interesting and people are asking you >> last week at a conference it was the subject matter barclays had the consumer staples conference and that was what they talked about it's new but it's not. >> carter, thank you still ahead, transports, trucking to a new high soaring to 2% signaling the all clear. the traders will weigh in. plus, it's been ten years since they took down the markets top bank of america strategist savita subramanian will help you avoid the crash. more "fast money" after this
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like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit welcome back to "fast money. transports hitting a record high look at some of the names trucking along united airlines, j.b. hunt, fed ex and we thought this would be a perfect time to play a little game truck it or check it. >> wait. careful. >> truck it or chuck it. let's use united airlines, for example. if you buy it you say truck it and you'll hear and see this or if you sell it you say chuck it and you'll hear and see that. get it >> that is not even a truck. >> all clear >> no, but it's -- >> it would seem if we're doing
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an airline it should be boarded -- >> you can't change it for every single -- >> i got it. truck it or chuck it >> okay. >> two cards ain't worth a dime if you don't lay them down. >> go ahead. >> i don't know what that means. >> united airlines, truck it or chuck it. >> now you know how we feel. >> truck it means i want to continue to hold this stock so i'm going to say truck it, mel you have to be very careful. diction is important in this game. >> particularly this game. >> extraordinarily important valuation compelling despite all the ills they had over the last year, valuation is a very compelling story. there are only three major airlines you have nowhere to go august traffic was up 7.8% these numbers continue to improve. 9 times forward earnings so despite the move higher i stay you have to be with it. board it >> even though it's a plane, truck it if you look at these airlines, the valuations are totally
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supportive i think the airlines people shoot first and ask questions later. i think united is well run they've had a terrible series of public relations but, guess what, the company is doing very well. >> i'm tired of your criticism so we're going to move to a stock which will fit truck it or chuck it j.b. hunt. grasso, truck it or chuck it >> this is a little complicated. i like the story but i'm going to say chuck it. >> chuck it. >> up 10% year to date rising volumes and rates i believe if you're bullish on the market you could be bullish on the trucking sector and transport sector i think they over reached. the whole space rallied on the storm and i think that could be sold short term. >> i think there's more to this story. instead of chucking it, i want to truck it. >> not shucking. >> there's no shuck. >> oh, shuck yeah, you shuck, you throw it away. >> i'd truck it anyway the bottom line is the u.s. economy is doing quite well.
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as long as we have a stable dollar, people want to invest in here if we get that year-end meltup, this could be a beneficiary. >> b.k., union pacific, truck it or chuck it? >> it's not a trucking company, but you still truck it you still truck it for the exact same reasons i just mentioned, right? this again is a domestic play here, just like the trucking companies. that's where you want to be at this point in time you don't have to worry about the international problems and connections on the international airlines it's u.s. >> that's a great point. they do have their effective tax rates coming in pretty large j.b. hunt came in from 37% to 26% domestically facing, you don't have to deal with the trade issues so i would truck it. >> truck it. >> truck it as well. >> all right last but not least, tim, this is for you. fedex, truck it or chuck it? >> yeah, i would truck that like the doodah man told me.
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>> got to what >> fedex continues to execute. the one concern is you are seeing european softness very creative. domestic story continues to truck along fedex has been a stock to hold through volatile periods in this market so well run and if the economy is doing what it's doing, this is the stock to own. >> was he making reference to the grateful dead song >> oh. >> afficionados. >> i have 100 shows under my belt. >> still ahead, want to avoid the next market crash, top bank of america strategist says she's found a way of investing that could get down to the next big downturn plus, sunday night football bears/packers game disappointing in the ratings we'll tell you which stocks could get hit most in the declining ratings. more "fast money" next
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like ever. they reveal in extremes and defy limitations. these pursuits may seem unnecessary. but the scariest thing i can imagine is a world where this, doesn't exist. welcome back to "fast money. it's been ten years since the financial markets took down the world. let's get to bob pisani at the new york stock exchange. >> hello, melissa. i had a front row seat ten years after the lehman bankruptcy and the height of the financial crisis, the stock market is a very different creatu creature here's a few ways the crisis profoundly changed stock trading. first, the ipo market shrank
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dramatically the rules created under dodd frank made it tougher for companies to go public excessively low rates made it easy to raise capital and keep companies private. second, there are far fewer publicly traded companies now than there were ten years ago. fewer ipos, more mergers and acquisitions and more companies going out of business have led to a big drop in the number of public companies the number of publicly listed companies fell after the dotcom bust it dropped again after the financial crisis today the wilshire 5000, which is a basket of the 5,000 largest stocks in the u.s. has only about 3400 stocks in it. think about that that's less than half the number there were in 1998 third issue was the death of volatility i know i'm being a little dramatic go long equities and short
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volatility keeping rates excessively low and help create abnormally low punctuated by short bursts of panic. fourth was the crisis sped up the transition towards indexing and the rise of exchange traded funds. now the etf trend started pre2008 but it put the crisis well they believed by not taking stock risk and using exchange trader funds they might find a way to reduce their risk maybe, maybe not we know the etf trends started in 2008 but it accelerated after the crisis quick programming note, be sure to tune in for cnbc's programming note, "crisis on wall street. >> bob pisani at the new york stock exchange ten years after the crisis, we have a becoming economy. could another crash happen
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bob had mentioned the greatest trade that was ever put on and we're exiting that trade with the fed now raising interest rates. could we see another crisis? what do you think, grasso? >> another crisis fairly mimics or mirrors what you have we don't know way too much about it, was the leverage i don't think you're going to get back to 30 to 1. maybe not the same one, maybe an etf issue where you don't have the -- >> sorry but it went from the private to the public balance sheet so you can make an argument that we have more leverage granted, you have central banks that have more of an ability to under wind the trade. >> more leverage in terms of debt >> public debt to gdp has never been higher. we may be in place where we have those issues for now we try. >> our next guest looks like she wants to get in on the
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conversation this could have been avoided if corporate america focused on private issues let's bring in savida. always great to see you. you looked like you wanted to join in on the conversation. are you worried about the debt what do you see is the trouble brewing out there? >> well, i think the area of excess in today's market isn't sitting on corporate balance sheets not necessarily on personal balance sheets i think it's sitting on government balance sheets. fed balance sheets are at, what is it, $4.5 trillion they're planning to retire 1.5 trillion over the next four years. how does that end? melissa, we did a bunch of work looking atwhat happens when th fed allows debt to roll off of their balance sheets, quantitative tightening. it turns out that in that environment large caps outperform small caps.
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stocks outperform bonds and value outperforms growth so this is interesting because we're in an environment where for the most part of the last 30, 40 years now bonds have done great. growth stocks have done phenomenally well and anything with credit sensitivity has thrived because the cost of capital has gone down to zero. i think now we're going to pay the piper. so my playbook is stick with synthetic cash go for u.s. companies. lots of cash sitting on that balance sheet. i think that's going to be the rule of the game for the next 10, 20 -- lever. >> basically adjust your port 230e8 yes now on winding. >> exactly the anticipation of quan quantitatively tech companies that have thrived on access to free capital are in trouble.
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>> let's talk about es and g investing. it sounds like it makes sense. have you back tested this? what are the numbers >> we have done a lot of work on es and g it's not a feel good metric like you want to buy companies that are running themselves spons somebody bring, but we found that good corporate governance would have hemmed you avoid a lot of the stocks that went up it would have helped you avoid companies with major environmental trip ups i think it's one of these non-financial metrics that seems to forecast financial results. >> how would this have kept you out of the financial early we noticed that companies within the financial sector had this real market compensation
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from 2005 to 2007 there were signs that the sector was starting to see some trouble because they did that. we started to see these issues revealed board diversity. lots of different leaders thinking differently at the top of the company would have avoided a lot of the group think that took some of these companies over the edge so, you know, it's not just the sort of soft it's the tree huggers type of metric, it could have helped you avoid some of the real problem areas. >> it's very company specific. >> it's very, very company specific how they're thinking about it.
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it's not what we learned in business school. it seems like it has very forward looking implications for stocks >> savita, thank you always good to see you. >> from bank of america/merrill lynch. we take a look at some of the changes we've observed in the media. there's an example of cbs, wynn. esg would have kept you out of those companies for board diversity. >> i don't think there was board diversity. >> lack of board diversity it would have kept you out if you thought that it made me think as savida was talking, what about the tech companies? we have tech companies controlled by one shareholder. we had gene munster coming on talking about the board of tesla being a problem. if i look back and i say, what have we learned from esg, you have to worry about the tech companies. >> turn to the options market. let's get to mike co in san francisco to break down the trade for us
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mike >> yeah, so obviously we have an interesting situation here the market is at or very close to its all-time highs and the cost of options is actually although not as cheap as it has been, pretty close to it still at a very low level. vix just about trading below average. you want to make it as simple as you can. one way you can do that, you can look at spy, s-p-y the etf i was looking at this, you could buy 270. that represents about 1.6% of where the spy etf was trading f. it does drop, you can perhaps sell them. the the idea is keep it inexpensi
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inexpensive. >> thanks for that, mike mike ko in san francisco coming up, the bears/packers game disappointing in the ratings last night is this just the start of another tough year for nfl viewership 'r've got the details. wee back in new york city in a rainy new york city. much more "fast money" still ahead. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade who would have guessed? an energy company helping cars emit less.
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welcome back to "fast money. football season is back and ratings are back let's get to eric with the details. >> ratings on first glance appear to be turning in the right direction for the league according to latest reports, early indications on sunday viewership was generally up. the fox regional games are up 5% the fox national game was 1% the cbs single header game was up 23% only nbc sunday night football game was down 9% compared to last year. many analysts i spoke to suggest the first half injury to aaron rodgers and the big league the bears built may have caused people to tune out they would have missed rodgers dramatic second half turn and the three touchdown comeback down to a nine-year low. that's a fact president trump tweeted about over the weekend the national anthem controversy appears to be quieting down as only two players neiled with just a handful of players
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raising a fist or staying in the locker room. remember, it's important not to read too much detail into the first week ratings because so much of it is match-up dependent. after a few weeks we'll be better able to know where the trend line is going. let's watch this over the next few weeks. melissa, back to you. >> eric, thanks. eric chemi what company is watching the most of this who has the most on the line >> in my opinion, disney is watching it absolutely in terms of espn. the cbs numbers were up huge a lot of it had to do with the browns a lot of people tuned into that. whether ratings go up or down, i think the nfl has probably leveled off. with gambling coming into play, it's going to help the companies longer term. >> i think twitter is one to watch on this, right they already have the partnership. what is twitter good with, right? twitter is great with live sports they always do well. they do well during the world cup, they do well during the world series
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they do great in football. that could be positive for twitter. >> i think of the major sports, it does seem that the nfl right now is more front and center in terms of what's going on with the tv contracts, what are they worth. this is happening across sports. we talk about this all the time on this show, how sports are being consumed the interactivity we talked about with gaming and gambling the media companies have multi-levers to pull for the first time i think they're under valuing their sports relationship. >> i think it would have to be all the media companies and looking for the nfl to sort of guide them and lead them where the next shoe is going to drop if you start to see nfl ratings dicoans ulbeiae, a lot of these mea mpiecod bsed off of that. >> up next, final trade. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
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time for the final trade let's go around the horn timothy. >> nice to have savida on. mcdonald's is one of the big companies. you're at the bottom of the chain making things happen i like mcdonald's. >> brian >> well, for me it's less the multi-nationals, more the nationals. iwm buy the russell closer to the u.s. >> steven? >> last week the whole casino space was under pressure wynn was down 20% year to date. you're starting to see the street protect t. looking forward. i don't have a position yet but i am looking at it wynn. >> guy >> truck it or chuck it.
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>> if you don't enunciate, it could be a problem. >> remember, we talked about that it got me thinking, b.k., union pacific, in the rails, trinity industries comes out trn. >> you're trucking it? >> uh-huh. >> see you back rehe tomorrow ae "mad money" with jim cramer 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. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. or, of course, tweet me @jimcramer anybody who has a high school diploma has almost certainly taken a course in

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