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tv   Fast Money Halftime Report  CNBC  April 6, 2021 12:00pm-1:00pm EDT

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scrutiny they continue to use these platforms. investors continue to buy the stocks >> yes, definitely something we will be grappling with for quarters or years to come perhaps, depending on how regulation fills out finally, the narrowest trading range for the s&p for 2021 so far, barely .4 of a percent. let's get to the judge carl, thanks so much welcome to the halftime report why a star analyst caught apple's price target what it means if you own the stock and some of the other faangs joining me, stephanie link, is a iraq seteh the s&p hitting a new record high today, dow a little negative the nasdaq is up 70. rates are a bit lower. 166 is the yield on the ten-year note i'm focused on the note because it is from the new number one
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apple analyst. katie huberte, her first target price cut from her in a year it is about service analysts, about multiples being compressed, and why this stock even though she is optimistic is going to come in, or at least she sees upside but she has brought the price target down. what do you think? >> i read it i don't really think she is saying anything. i think from time to time analysts have to fine tune their estimates, and maybe take into account some of the stuff they're seeing in the macro economy or the rest of the market and how it might effect their existing price target on a stock, which is what happened here but her bull case is still, like, $217 a share, which is almost double from its current levels so her, like, base case i guess is like mildly not quite the same but there's nothing in here. they're generating trading activity on the desk when you look at what she is really saying, judge, she is
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basically saying some of the comps for apple's services business -- >> right. >> -- have seen multiple compression. that's not an apple issue. it has nothing -- she is just saying, like, all of the great news on how well the company is performing fundamentally might get somewhat offset by some multiple compression for other companies and services there's nothing in there the big picture is that 80% of their products are in a refresh cycle from within the last 12 months they are absolutely crushing it across the board, no matter what line of business you want to look at. i think if you are an investor and you make sales on a call like this, you really should give the money to somebody else to manage for you. >> but this really, steph, is, as josh said -- and we've had this conversation a lot, about multiples being compressed across, you know, a fair amount of the tech space. now taking a look at the comps, as josh was saying -- by the way, we went to morgan stanley
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and said, well, which comps are we talking about really when it comes to the services business because it wasn't in the note and it wasn't exactly clear as to which stocks you should be comparing, whether it was apples to apples or apples to oranges it is netflix, it is tencent, it is spot fight, it is snapchat and it is twitter. so those are the ones we are talking about. >> none of those are comps, by the way. >> from a services side. >> yeah. >> she says they are, right? i thought she was talking about the faangs, they say no. from a services standpoint, steph, these are the ones we're talking about. >> yeah, i thought it was a pretty confusing note, quite frankly. we always like it when an analyst raises numbers, but multiples are coming down but technology in general has been coming down because the economic growth has been actually going up, right? and rates are going up, and we're starting to see a little bit of inflation so you had a correction in tech. apple trades absolutely in line with the rest of tech. i would just say it is actually now 6% of my benchmark, which is huge, and everybody is there doesn't take much for this thing
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to pull back that being said, as josh mentioned, the fundamentals are still strong she is still bullish in fact, i am thinking, i'm market weight, right, just because i'm trying to be bull yush. >> you're probably the least bullish apple person on the show today. >> i'm not as bullish because it has had a nice run everybody knows about the iphone cycle, we know about services. i am encouraged that services actually continues to grow, and that's where she is raising the numbers. that's important because it is an important part of the story, but i'm not going to put more than 6% in my portfolio when i only have 44 names, number one that being said, the fact the stock is down 13% and the s&p is up 7% since the last quarter has sort of -- it is sort of interesting to me. we know the services numbers are really good. they will have four quarters in a row norgtd of 20% growth for a company this size.
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i was sort of confused by the note overall today. >> what about you, sirat, you own apple as well. what do you make of the call any time the number one rated analyst in any space makes a call, it is news worthy, especially when it comes related to apple, the most valuable company out there and the fact it is a price target reduction from 164 to 156, albeit the rating remains overweight? >> you know, i'm with josh and steph. i was quite confused as to the purpose of the note, but then sometimes you realize on the south side you have to get some material out i think she is hitting all of the right points there i think services are going to do really well. i think we're coming out of a quarter where consumers are starting to spend more money again. you know, the other side of the case is, hey, there are other opportunities out there. as more money comes into our system through stimulus and a lot was spent on apple products, how much is the real growth rate going forward? it is not that it is not growing, it is just a question
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of, again, do i look at and say are there other opportunities in the growth sectors that could be more compelling than the apple even though you still want to hold the apple. >> jon najarian, you sold apple calls at 125 and 130 you noted when berkshire trimmed their apple position too that day, i remember we were having that conversation. so what do you make of huberty's note here? this is the gospel according to your brother so are you dismissive of the note, like virtually everybody else on the show is today, because that's the vibe i get? >> well, i just heard all three, but in particular sarat say that there needs to be communication between the analyst and the community that follows him or her. in this case her, katie keeb
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ea huberty. judge, i don't think she is wrong at all i think it will me ander a bit i think warren buffett was wise, as he usually is, cutting some losses i think in this case he was just trimming some profits. the position just came so big for him. i think right now, judge, i'm getting 3% for selling a one-month-out call, those may calls. i did it when warren buffett got out and i chased 'em down from 135 on down to 125, and now with the stock at 126, 127, i like again staying in these calls, laddering in these calls and collecting 3% for letting the stock sit there, if that's what it does for a month. because, judge, when you put a calculator to it, i'm double digit returns i'm creating through those call sales as well as a decent dividend i would say is extremely safe. i agree with everybody about services being huge.
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i think tim cook is likely too say more about how apple is going to integrate with automobiles and whether or not they're making their own or making them with mercedes-benz or hyundai or whomever it might be i think that's all, you know, upside from here and not priced in at all. but i think services and the rest will drive this story going forward. >> well, josh, multiples need to be justified now more than they have been in the last 12 months, right? 18 months. that's a fair statement, right i mean we had all of this multiple expansion on apple and all of these other names, especially out of the nasdaq and the nasdaq 100, and now they need to be justified and if multiples have compressed across the spectrum, why wouldn't multiples compress for a stock like apple, though jim cramer suggests this morning, you know, he said he wouldn't be surprised if apple has an upside surprise when it reports earnings that's what it may take, earnings will have to put up or shut up, right earnings have to meet the expectations of where the
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multiples have expanded to. >> it is a funny way of putting that, and i guess my answer to that would be can you think of another company that exists on the planet right now that's done more to justify its multiple than apple like, honestly, can you think of any company worthy of a premium to its sector or to the overall s&p? i can't think of a company with a franchise as enduring as this one. consumer lock-in as iron clad as this one they really have no competitors for most of what they do they have customers for life they have a monopoly on arguably the most valuable marketplace since ancient rome, which is the app store. literally, a third of all revenue consistently holds up in court battles with video game companies and social networks. they've taken a third of the revenue of everyone who wants to have an app on that marketplace, and if you don't have an app on that marketplace you basically don't exist.
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so it is just hard for me to understand somebody who would come along and say apple's multiple is not -- it is highly justified. the real question, judge, i think you raised later in your statement, which is that earnings have to still come through. because you could be just as bullish on apple with a 24 times versus a 34 times earnings multiple, but that would be a huge difference in the stock price to this. >> let me ask you, i do think they have to keep delivering but when have they not i can't think of the time. >> the stock right now is a forward pe of 29 i'm going to call it 29. what is that 28.4. throws back up, if you don't mind where does it get a higher multiple from? it gets a higher multiple, doesn't it, josh, from the outlook and expectations from the services business, the one we are talking about the iphone is the iphone if it is going to be a higher growth company in the future, it is coming from the services
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side, isn't it >> it is and services are a lot more profitable historically than selling things like i pads, although apple maintained margins for consumer electronics for a length of time that is absolutely mind blowing relative to the history of this space but let's not kid ourselves. for all of the talk about a tech bubble and a blow-up in tech valuations and a blow-up in tech multiples, look what is happening today with the highest multiple technology stocks they're ripping. they're all up between 5% and 10% as the ascent of treasury yields slowed down the xlk is within spitting distance of another record high. so all ofthat talk about a tec blow-up, it is just not what is apparent on my screen. facebook, google, all of these stocks made new highs last week. you even have oracle breaking out, which is not a high multiple tech stock, but it is a stock that's been left for dead for the last ten years that stock is on fire right now. so tech is fine and among
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technology names, if apple continues to put up the numbers it does with the consistency with which it puts those numbers up, the stock price is going to take care of itself. one other thing on berkshire trimming 38% of berkshire's invested assets are in apple. >> i know. >> they have no choice. >> it is all with an asterisk, i get it. >> they have no choice when apple does buy-backs berkshire ends up with an even greater proportion of ownership of the company, which i don't think it wants i don't think they want to own 50% of appleby virtue of buy backs. so that trimming should be expected so i think the story is still pristine i'm not saying it is the cheapest stock on earth. i am just saying you asked me do they have to justify their multiple, i say who else has like this company. >> yes your point is well-taken too on where tech is. steph, software has had a nice little bounce back the semis have had a nice bounce
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back nasdaq and nasdaq 100 are up about 5% over the past week. so then i bring you this question then, steph, and it picks up where mike santoli left off yesterday with whether stocks are in this sweet spot right now, in part because you've now had tech get a little pick-up and you've got other parts of the market doing well, small caps, et cetera, or if this is as good as it gets what do you think? >> i don't think it is as good as it gets by the way, let's keep in mind the xlk is still up 6% but energy is still up 30% year-to-date, right, and financials are up more double digits and materials as well as industries so the cyclical parts of the economy in the first quarter outperformed growth, no question about it now you are having little mean reversion and that's fine. i like a broad market in general, i prefer a stock picker's market in general, but i'm supportive of that i don't think this is as good as it gets. i think the debate is, because the economic data is clearly
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getting better, and we saw that with ism manufacturing at a 38-year high, ism services was the best on record, the jolts number today, 5% growth year over year. think where we were last year at this time. so really good stuff coming out of the economy, and the stimulus is working we have talked about that. the big question though now, and i saw it on friday, there's this pivot of a discussion that if because we have such good economic data, when does the fed pull away from accommodation i think we're a mile away, i really do. i think they're going to let inflation run hot. i think they're hoping for a little bit more inflation. i'm hoping for a little bit more inflation. >> i think you're right. >> i don't think it is as good as it gets because i think earnings go up i have been saying for a long time earnings will be better than expected, 30% growth this year we will not get multiple expansion for the entire market, we're not going to do it it is not the name of the game in this part of the cycle. if earnings are going higher, stocks will go higher. we may have some bumpy, choppy
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times, but stocks go higher, especially with liquidity on our side. >> you have to admit if you do 10% gdp in the current quarter, you may not do it again. we just did the ism services print, the best on record. you have may not do that again, right? so in some senses the economy may be as good as it gets. that doesn't mean it is going to fall off a cliff it may not just feel as fabulous as those numbers would suggest so then you ask your question, well, how much is the market anticipated that already. >> yeah. well, we're up 82% from the marlow march low, scott, so we're anticipating better growth i'm not rooting for 10% growth every quarter, for are you probably because that will lead to much, much higher inflation the question is, is this as good as it gets and when does the fed pull away. oh, by the way, taxes are now top of mine, at least with some of my colleagues and myself as well, i think we will be able to handle that. but now they're at the question
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marks. i think that's where there are some surveys out there like the rbc survey today that was a little more muted but it is still bullish. >> it is still bullish but, john, barclays is out today right before we came on the air with a note that says the biden taxes would shave 8% in eps in 2022 that has real ramifications for stocks now, the market in some respects is obviously voting and saying, well, we don't think that the biden tax cuts are going to happen anywhere near the degree that the president thinks they might or certainly wants them and wishes them to that's why the stock market is where it is. if it really thought you would have some transformational tax changes the stock market would be already anticipating that, right? >> right, scott. i think what the president has laid out is a prudent plan in terms of paying for some of this massive spending that we've got, even though the spending happens over seven years and the payments, if we were able to
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collect those taxes, would occ over 15 years. but you're right the market is saying right now, we don't really think that this would happen, certainly not this year could it happen next year? very unlikely also, scott, because we're going into midterms in 2022 so i don't think we're going to see it happening in either of these two years. the market being a forward-looking instrument, is saying that, you know, we do need to find ways to pay for it, we don't think it happens this year in the midst of us coming out of the pandemic. we don't want to just hit the brakes really hard, and the likelihood of that occurring during midterms is likewise not very good. >> yeah. >> so you're exactly right. >> it depends. >> yeah, the market is handy capping it, saying, don't think it is going to happen. >> biden is going to try to get done while he can get it done, right? >> yes, sir. >> he may not have the majority, even though it is a tie-breaker in the senate, he may not have that after the midterm
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elections. he will try to get done what he wants when he wants. he may not be thinking about what the other implications of that are. >> yes, sir. >> whether the stock market is going to like it, et cetera, or what have you. now, what do you take though, sarat, from the fact you have a pretty broad swath of stocks hitting new highs this week? facebook, alphabet, microsoft, talk about those ad nauseam, i totally get it but talk about these sectors, right? a lot of homebuilders, a lot of retailers, shippers, financials, health care, materials, a lot of big-name stocks that our viewers own, sarat, are hitting new highs this week. that has to be a bullish sign. >> it is a bullish sign, and i think the points that we have been talking about is what is the market believing going forward in terms of interest rates. are they going to be going up or is it a transient time of higher inflation? that's why you are seeing a broad-based rally, not just in financials and cyclicals and energy, but you are also seeic it in the technology side.
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i think the other side, consumer staples is another area that i think our viewers should also look at. what we're having is earnings are strong they're going to get stronger, and i think going forward where investors should look for is what are going to be some of the headwinds, but at the same time we've got an economy that is thriving and all sectors right now seem to be participating in it, too, which is a good thing even if multiples don't expand, i want to get back to the multiple idea, if your earnings are expanding your stocks are going to grow as fast as your earnings i think that's something we have to look forward to because right now the headwinds are not there, and the market could -- you know, will go forward. for those who are invested, they're going to partake in the growth. >> you sound pretty bullish. you sound pretty positive on the market, right? >> i am. >> answer this question. >> i am. >> answer me this question. >> okay. >> when was the last stock, what was the last stock you bought and when was it?
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>> well, i mean new accounts coming in, i'm buying kind of our portfolio. i'm buying, you know, whether it is qualcomm, it is alumina, i'm buying lowe's. so, you know, spreading it across i'm not really -- i'm buying financials, i have jp morgan, prudential. >> that's new money? i don't want you to go down the book of all of the stocks you own. on my sheet it says you have no new moves. >> no, well, for new money, yes. no new ideas but if people had capital, i'm putting the money to work. >> you are putting the money to work, okay at the current levels of the stocks you are talking about, you are not hesitant to buy more of the stocks you want >> no. i'm not hesitant to buy these stocks if i'm wrong for the next, you know, quarter and the market pulls back i will add more to them, but these are the companies i like. >> sorry i wanted to make sure i understood exactly where we're coming from.
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stephanie link, you bought best buy for the first time ever. tell me why. >> i have never owned it and i missed a lot of money along the way, but i still think this stock is very attractive it is a stay-at-home stock, tra trading -- as we reopen, it will become a tail wind dig digital and ecommerce went from 19% of total to 3% of total. buy on line, pick up at store is 48% of ecommerce and it is humming along. they've lowered their cost structure because they did have a lot of lay-offs, unfortunately, but they throwered their cost structures. inventories are lean if anything, i think the supply chain constraints might hurt them a little by, but i think investors will look through it i certainly will i think it is important to know that the vendors don't want just walmart and amazon to run the show, and so they do support best buy and are providing them with product so i like the store. i think it is reasonably priced.
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they have easy comparisons the next two months. it gets harder in the second half of the year but i think it is factored into the numbers. >> how are you thinking of some of the stocks i mentioned hit new all-time highs do you own united rentals and stanley, black and decker, one or either? >> i own stanley, black and decker i own cat and deere. for stay-at-home, 30% of the stools and storage business is home depot and lowe's, so i get that exposure. but they have an infrastructure business and energy business, so that's reopened and this company has positively surprised and preannounced in the past two quarters who is doing that? these guys are doing that and i don't think it gets all of the credit it is up about 14% on the year but it did nothing last year i think there's more to go there. i like that story quite a bit. >> jon, what about the homebuilder? the homebuilder etf was one of
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those at new highs yesterday a lot of the stocks in it like le lennar which you have calls in and lowe's which is a new all-time high as well, what are you doing with those now >> holding them, scott in particular i love that the interest rates have come back rather than running away to the upside so that's been good for both of those companies in particular. you know, i just keep waiting for the moment when i have to pull the trigger on home depot because it has been a sideways mover, scott if i saw some big institutional volume in there, i would love to get back into that name. but, like you say, lowe's, i'm willing to stick with that if we start to see some other homebuilders catching bids on the institutional side, i would be happy to chase into those, too, because rates are not running away from us and that's a good thing for both the homebuilders and for the people
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that supply the stuff like lowe's and home depot. >> masko, honeywell, sarat, you own those? >> i do. and i own lowe's as well and i like honeywell as well i think honeywell will be one of the stocks that earn into his multiple and multiple ran ahead of itself. i think it is a great area there. i agree with jon i think people will spend more money, and we've seen the real estate cycle keep extending. so if interest rates stay at bay, which it looks like they are, there are enough people out there putting money into their homes and buying new homes that i think we have an extended stay on some of these stocks. >> okay. we will take a big break still ahead, the big street calls of the day jon has unusual activity as well you can watch or listen to us live as ll owen the go on the cnbc app we are back right after this these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid.
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♪ ♪ i'm lesley picker and here is your cnbc news update at this hour a possible witness in the derek chauvin trial says he will invoke his fifth amendment right against self-incrimination if he is asked to testify. another witness testified that maurice hall sold drugs to
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george floyd and there are indications hall may have been the source of the counterfeit $20 bill floyd tried to pass the u.s. and iran are expected to hold indirect talks in vienna today as part of broader negotiations to revive the 2015 nuclear deal pubetween sfs tehrn and global pours benjamin netanyahu has been elected to form a new government dutch police say they've arrested a suspect in the theft of two valuable paintings, including one by van gogh. the works were stolen from two different museums last year which were both closed at the time due to pandemic lockdowns both paintings remain missing. scott, i will say amsterdam has some of the best van gogh work of art i have ever seen so i was very sad to see those go missing. >> yeah. they'll find them. leslie, thank you.
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let's get to phil la bow with a news alert on general motors >> scott, take a loot a shares of general motors moving higher. it is about ev optimism, stoked by a press conference that's actually taking place right now at the company's detroit plant that plant is where they will build a number of electric vehicles mark royce, the president of gm, announcing they will build the hummer suv at that plant we saw it revealed over the weekend. it is not terribly new what is interesting is this is the plant where they will build the chevy silverado all electric edition. no details in terms of when the pickup truck would come out. it's been expected they would build an electric silverado, so that announcement made the hummer suv deliveries start in 2023. for general motors we talked about this for sometime, they're ramping up their ev production and sinking a ton of money into
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evs. $27 billion through 2025, $7 billion alone this year, rolling out 30 models worldwide. two-thirds of them in north america, then the ultium battery plant coming on line in northeast ohio this is what it comes down to when you look at the electric vehicle market, who can bring down the battery pack costs as quickly as possible. i love this chart from karen research advisers. it shows what you have is a race between gm and tesla, and tesla is projected to have the lowest cost, but not by a lot over general motors by 2030 then you have the rest of the industry that's why people are moving into shares of general motors, scott, because they're looking at gm and saying, they've got the technology, they've got the deep pockets and they're making the investments, and we think that eventually it is going to pay off. so, again, that announcement taking place as we speak in detroit. scott. >> appreciate it, phil thank you. interesting news
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i mean, josh, at some point you have to figure that all of this ev good news is baked i mean, right? it is like every day there seemingly is a new positive announcement relative to general motors, yet the stocks doubled over the last six months. >> yes so i bought this in the high 30s. at first i bought it for technical reasons on the breakout like i understood all of the ev stuff but this stock was not moving on ev news at all it was really like tesla's ball game, and then all of those spacs, but then this kind of overnight became a stock that moves on ev. so you saw a huge rally on gm on tesla's deliveries news, which i found really interesting i think it is a new paradigm for this stock i do think that there is the chance for it to become untethered from the way it has historically been valued as a legacy internal combustion engine name. i think they will start to treat it more like a technology name
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i wouldn't go overboard with what it might mean for valuation, but my plan is to hold this stock for as long as it is in an up trend, and it looks fantastic right now. so i'm sticking with it. i don't think we've seen all of the benefits of from transformation that mary barra is trying to engineer here i think it is just getting started. >> jon, your long calls in gm? >> yes, i'm long calls in gm, scott, and loving it quite frankly. i also thought that what phil talked about, about factory zero they're calling it or whatever, the fact that they're talking about 1 million evs delivered by 2025, that's an ambitious number obviously it took musk a long time to get to 750,000 vehicles. so if these guys can actually do that, get to a million vehicles between that silverado and the hummer, there's huge demand. and then, like josh said, the other 28 models that they're
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going to be bringing out, i think it is great news for general motors, great news for america. i love it is an american company. >> yeah. >> hey, judge, one more thing on this. >> yeah. >> jon, i'm sorry to step on the end of that, but i just want to point out -- >> no, that's okay. >> -- the ev stuff is not really moving the needle yet fundamentally. the rest of their business, their legacy business is absolutely on fire you can't get a truck. everybody wants larger, more spacious trucks. me and terranova go to the same dealership, both were up for a new tahoe. you can't get them i just put down a deposit for a vehicle they're telling me they will probably deliver september or october when mylease is up. that's like a five-month lead time and it is the same for virtually all of their trucks. they really don't make calls anymore. it is like all they make so that is the fundamental dynamic underpinning this rally. if you think this stock has doubled just because of an
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electric hummer, you have no idea how strong everything they're doing is right now >> yeah. good points. i'm glad you made them sarat, you have anything to add to what either josh or jon said? >> just a couple of points you know i have owned this stock for five years, been dead money for four one thing to look at gm and why we love the shot is not just the management of the balance sheet, right, and if you look at what is happening here in the business, the business is throwing off a ton of cash flow, and that is funding the future growth that's the type of company you want to have they're not dependent on the capital markets. it is a company firing on all cylinders and it can really fuel their growth by the cash flow they currently have. it is a core holding, a top five holding. i add to this one. i think you want to own it for a while. >> it is at the highs of the day as general motors -- >> hey, scott. >> yes, steph? >> i would just say you could throw a dart at almost any auto company for the last six, eight months and have made money, pretty much so anyway.
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i happen to own app div and the stock has been a home run. the reason is you went from 7.7 million north america sar to 17 million last month alone that inflection, that v-shaped recovery is really what is fuelling, to josh's point, is really fuelling this industry. we have talked about auto being a huge story in the economy, and it actually ties directly to housing, right if you buy a house, you most likely are going to buy a car. what do we know about housing? housing is also on fire. might be plateauing a little bit but it is still quite strong i would say that the auto theme is alive and well. i think you want to be a little bit more valuation centric and sensitive, but i like the theme for 2021. >> good stuff. good to hear from everybody. again, highs of the day for shares of gm up next, the bullish outlook for another consumer stock hitting all-time highs today it is our call of the day as a result reminder, april is financial literacy month cnbc committed to sharing messages from business leaders
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about the importance of financial education. here is ma mauded elle-erian. >> it is better to play offense. better offense, earn and protect your money better. better defense, avoid the debt trap, inflad trap and the liquidity trap when suddenly you have a payment and you can't find the payment to do it.
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take a look at shares of starbucks today. all-time high, now the top pick at atlantic equities the firm reiterating its overweight rating. they say starbucks is well positioned for the improving consumer economy which josh brown has been telling you for, i don't know, as long as i can remember, right, josh? >> yeah. well, i bought it during the panic about a year ago and i have been pounding my fist on the table ever since if anyone thought that americans were going to stop drinking coffee because there was a pandemic, they got things backwards. the question on starbucks was always how effective are their locations by a prolonged reopening. the answer is very, but i heard
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stephanie make this point earlier in the show about, you know, a headwind becoming a tail wind that's what you will see happen here as people run out, and starbucks is one of these companies that is also doing everything right in china, in addition to all of the transformation they've been doing here in the u.s. including closing stores or even shrinking them so it is a company where life gave them lemons, they made lemonade lemonade happens to cost $4.99, but if you are long you are very happy about that again, i'm up massively in this. i have no intention of getting out. i would trail it, if i'm a trader, i would trail it with a 200-day which is about 92 right now. so if like, you say, all right, i have a lot of gains, i don't want to give them all up, that's been a pretty reliable place where you made a good sale once the stock has broken below it historically look at the 200 day as where you
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want to manage risk. >> steph, i will go to you you like josh bought it last march but you sold it in the summer you made a lot of money. josh is going to keep going. he is going to keep drinking the coffee or the kool-aid, however you want to look at it. >> kool-aid! >> you think it is too expensive now, and i see -- what it is 37 times forward? >> that to me is expensive, right? so i was buying the stock when it fell 40% from its highs back in -- >> hold on steph, make the point and then i want josh's opinion on what you have to say anyway go ahead, steph. >> right, right. i wouldn't say this is exactly trough earnings but you are definitely on the trough side. so i completely respect that, but i bought the stock when it was down 40% back the march, april and may. i averaged in and i made a lot of money and it went up very far, very fast instead, i added to wynn and i
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added to marriott and i recently added to veil resorts and now best buy is my next reopen name. i have plenty of reopen. i have plenty of china i mean 70% of wynn's revenues are macau. i don't know if you saw the numbers but march macau ggr, gross gaming revenues, were up 58% in march year over year against very easy comparisons, but i like that kind of story, right. so i'm not saying starbucks is a bad story. i'm not saying it is a bad stock. it is expensive. i'm not sure how much operating leverage you have versus the other names that i own at this point. >> understood. wynn, by the way, was upgraded today and the price target was raised there to $160 i know you own wynn calls as well, doc, and i will give you a shot at that in a second josh, on what steph said about starbucks, right, it is an interesting, maybe difference of opinion in the way you all view a winning stock. maybe our viewers can learn something from that, so what is your rebuttal, if you want to call it that, to what steph had
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to say >> i don't know if it is so much of a rebuttal, we just have different strategies i wait for a stock to give me a reason to sell it, and just because it went up is not a sufficient reason. i'm not as focused on valuation as she is, i'm way more focused on trend it is one of the top 50 charts in the entire russell 3000 i promise you, you can scan the entire market, you won't find very many up trends as pristine as this one. so i almost feel like wait for them to give you a reason to not be in it, but that doesn't have to be everybody's strategy on earnings, i think they could earn $5 in 2022 or 2023, and i think the market will take the stock to 150 before they're able to do that keep in mind, they could raise the dividend keep in mind they've committed to keeping the buy backs going and shrinking the float. so i think it is reasonable, given how well they're
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operating. again, there have been chances to buy it cheaper, i concede stephanie and i both did that. the difference is i'm willing to hold it despite the fact it has gone up in valuation, because i think it has actually gone up in innovation and momentum up. >> got you doc, real quick, wynn, give me something on wynn. >> all right scott, it is up 78% since the election this one has been on fire. of course, the vaccinations are the biggest reason, but we're doing a conference out in vegas. 1,000 people coming. can't get enough rooms we could do double that. that's how big vegas is raging right now, and it is only going to be bigger as we go into the fall and more of us are vaccinated, scott. i think this one is one you hold for a long time. >> i appreciate that, doc. we will come back to you in a moment because jon has unusual activity coming upnde ll a wwi do it next on "the half.
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it's easy and affordable to get started. get self protection for $10 a month. all right. jon, unusual what do you have for us today? >> charge point, judge you know, we were talking evs back and forth because of all of the great news out of general motors well, charge point, that's what they do, charging stations at the money calls, the stock is
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29.75. they're buying the april 30s that expire this friday. i bought those, judge, and i will probably be in them two to three days second one, walmart. take a look at the 150 strike out in may this stock is about 140, so in other words they see $10 of upside i bought the lower strike. i bought the 140s and sold the upside calls i'll probably be in those about a full month, scott. love both of these trades. >> all right good stuff, doc. thank you very much. we are ready to answer your questions now, or next, e-mail us askhalftime@cnbc.com and we'll do it next , askhalftime@cd we'll do it next
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emerson. consider it solved. all right, let's answer your questions now. first up, what are your thoughts on visa? >> i like visa here. i like all the payments. these are secular growth companies that are going to grow for the next few years, not just quarter. i would hold it and buy it on dips >> josh brown, a question from twitter. let's keep talk about inflation running hot. 18 month price target of 35 to 4 40 what do you say? sounds like he has a pretty good idea, josh >> if gold miners didn't work in the last year, i don't
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understand in what environment they would ever work you literally just had the biggest growth in the money supply in the history of the galaxy and these stocks sucked they always suck it's almost 15 full years. it's down 7% the s&p 500 in that time has tripled. you could have made more money in savings account i'm not a fan. any time i buy a gold miner, i always regret it and my god have merty cy on yor soul i'm sure it's fine >> doc, a video question for you. >> hi. this is steve from san diego i like to know what's up with rocket mortgage. it's an industry leader and appears to be unvalued
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thank you. >> thank you for the question. what's the answer, doc >> i think it is undervalued it had a tremendous short interest that helped carry it o over $40 a share at the beginning of march now it's back down here at 22. they pushed a block of 20 million shares out last week at about 25 now would be a great time, i think, to accumulate this one down here at 22 to $23 a share >> okay. nice little move for that one as well we'll take a break and come back and do final trades next this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito]
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♪♪ it's that time again for final trades stephanie, start us off please >> a new cname i don't own, ana yn plan. they had a great quarter where billing grew over 300 basis points it's on my radar screen especially down 20%. >> all right maybe a little more expensive now that you mentioned it on your radar screen. that's neither here nor there. jon, what's your final trade and why? >> lumen lumen. they've got a deal with vm ware. this is centurylink for those familiar with that brand i love the technology side of their business
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bought it during the show. >> during the show interesting. josh brown >> staying low on gm, judge. >> thank you for that. nice life jacket >> morgan stanley. the head winds of last year will be tail winds with the asset management business. >> good stuff. good to see everybody. the exchange starts now. indeed it does, scott. thanks very much here is what's ahead for this hour used to be the reopening trade or stay at home trade. these days both are getting love we'll look at where you should put your money right now americans flock to the great out doors. looks like that trend isn't going anywhere we're calling it the fresh air trade. from yjurassic world, we'll spea with the producer behind all of these films about the success of

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