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tv   Fast Money Halftime Report  CNBC  November 3, 2021 12:00pm-1:00pm EDT

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ads, no, games, stores product, yes. so deerdidre, you have to wonder now much these games will boost the overall value of that subscription they've got to be crunching a lot of numbers here. >> roku, fox, etsy, take-two, qualcomm and the fed in a couple of hours let's get to the half. carl, thanks so much welcome to "the halftime report." i'm scott wapner front and center, what happens to stocks in the weeks to come is a reckoning for the techtrade now the biggest risk to your money? we'll debate that with the investment committee joining me for the hour today, brenda vinjello, joe terra nova, jon najarian co -founder of closely watching that, and it's very much wait and see the dow's down 70. s&p is a fractional loser and ten-year note yield 156.
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all right, joe it's all about today, if we get to taper and if rate expectations are pulled forward, we'll see what happens this afternoon and we're going to watch rates closely and we're looking at that techtrade because i'm wondering whether the reckoning that some had talked about happens >> think it does happen, but i think it happens in a very bifurcated way, scott. so large cap, mega-cap technology where the cash flow generation is in the present it's the here and now and it's a short duration asset that would be okay, but more long duration assets where the questioning on when the cash flow is going to be delivered and when i talk about those names i'm talking a lot about the hypergrowth technology names and those are the names that will clearly be challenged in an environment where they're pulling forward with rate expectation. i think viewers of the show should be prepared for that. i'm speaking specifically toward
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a lot of the higher valuation names that performed incredibly well in 2020. >> i know what you're talking about. >> let me list some names because you're on the chris harvey train today from wells fargo and he's been calling for a reckoning from as far back as the summer from tech he has a new note today and particularly on re-opening plays and momentum and our calling on tech may be at risk especially across quote, unquote, high octane names you guys are speaking about the same types of stocks when he says high octane i go down the list and say do i need to worry about a snowflake 127 times sales? the stock's had a nice run salesforce, 121 times trailing and 76 times forward we have ownership, fortnet, docusign, not to be so specific to just call out those names,
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but brenda, you own sales force. do we need to worry about those kinds of stocks in a rising rate environment which could -- could start today based on what the fed says brenda i think she's frozen jon najarian, why don't you take that same question >> all right, scott. i think powell is sort of in this really tough spot today of course, i mean, chairman jay powell if he dismisses inflation fears and inflation that is clearly out there, everything from gasoline to baguettes in france which he doesn't have anything to do with, because wheat has gone up so dramatically that this is filtering its way into all kinds of things americans
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eat and to that extent drink because of some of the rye products and so forth. i would say, scott, if he dismisses that big pop in volatility, then he's going to get the bond vigilantes all jazzed up and on the other hand, if he doesn't -- if he basically does address that, rather then i think he risks being re-appointed because obviously seeing the debt that we've piled on through prior administration and not just this administration, but that debt being piled on that is going to be something that president to not reappoint mp. >> let's get to my specific question we think the taper is happening today, right they'll announce it. >> yep they'll announce it and it will happen in december. >> rate hike expectations move forward and you do begin to have a meaningful, more meaningful
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rise in interest rates from today forward, can you own the names that i just mentioned on my list because you own salesforce calls and crowdstrike calls and there's a lot of ownership around that spectrum of the zscalers and the cloud flairs and you know what i'm getting at i want to address that specifically >> your question directly, scott, if we see rates rise more dramatically i don't think that's what we're going to see i think we'll see a very gradual rise in interest rates i think that this taper has been basically shown to the markets for months and months. i don't think we'll be surprised and i don't think we'll see a rapid jump in those rates and if we do see that, scott, then you're right and then i'll take pain in all of my techtrades and i've got a lot of them beyond the ones you named everything from apple and amazon
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to facebook and microsoft. they will all get hurt if we see that rapid jump in rates i am not predicting that i think it will be a very slow rise in rates and if that's the case i think we're in a sweet spot right now, but again, that remains to be seen >> brenda, i think you're unfrozen, i hope, and i hope you can at least hear my question. you've got ownership in this area are you concerned? >> we do, and you know, it's an interesting conundrum, because if we did get rates that were raised much faster than anticipated and i agree with john this fed has been incredibly transparent and it's an unlikely scenario, there could be a potential growth scare that it's too much too soon. in that case i think you could see a r tagz back otation back growth names names like salesforce which we still continue to really like,
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you have to look at these companies and one, it's a huge barrier to entry and high switching costs. a lot of pricing power and tons of recurring revenue i think there's a reason why they'll trade at a high multiple and i think they'll maintain a premium even in the scenario where i do see interest rates rising although i agree with john that it's likely to be a slower rate rise and the fed is likely to see what happens with inflation in the early spring and late summer of last year people are tarting to raise rates, but again, if we did get a surprise, i do think that overall it could be a growth scare to come out of it. >> so, weiss, jon just said that all of tech will go down if rates start to go up he lumped apple -- >> go up dramatically. >> that we mentioned and there is a difference between growth at any price and growth at a reasonable price and that's how people break out the differences
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and joe said some of the mega-caps and the faang names and in the cloud arc-type names that might be more at risk, right? >> right look, all you have to do is go back to february and march of this year and see when the ten-year yield was traded at a 1.7 handle and what happened to all of tech. so everything went down and even the cheapest stocks, cuervo which hasn't recovered since then, so i don't think it should be an issue for all of growth stocks, but that will be the opportunity in the reasonably priced ones and i don't think it will be the opportunity in the crowd strikes, et cetera, because of the highly inflated valuation. i'm with jon and with the other, i don't expect powell to say if anything the fed has been very transparent. you have to be livering in the
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metaverse for the entire year not to know they're going to announce a tapering today. however -- >> the issue is not so much the taper, right >> i think -- >> i agree the rate hike expectations being pulled forward by a year people are already making those forecasts whether it's liesman's poll or goldman sachs, you know, we're talking june or july of 2022 that's a whole different ball game to where we were six months ago. >> right exactly, and that's where i bid. so i've been being looking for it, what i do think powell will do today is he will give that additional not that inflation is more perrsistent and i do think they'll have to go forward and the reason being he's not going to compound the go slow approach by going -- make it worse by doing both today however, a quarter-point increase is not going to do
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anything in terms of tamping down inflation because money will still be essentially free you need to see the supply chain loosened before that happens that's not in the fed's bailiwick, of course, we're seeing progress there and once you do start and once you start messaging like i think it will happen, you will start seeing after the beginning of the year where -- and that is in depression >> my point is the fed wants to be able to dictate to the market what the schedule, quote, unquote, is going to be. the fed cannot afford to have the market dictate to it what it's going have to do, and if you get into that environment you are obviously going to have a more dramatic impact on some of the same type of technology stocks, if rates start to get away from the fed. in the most perfect world the fed says okay, we're tapering and here's the expectations for rate hikes and it's trance fore
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and then the market behaves. the the nat scenario is that the fed has an even more dramatic rate and then you have a better impact on the market you own fortnet and docusign. >> i do. >> six times trailing 75 times forward. >> docusign, 143 times forward do you feel comfortable owning these stocks >> more comfortable owning fortunate and it's in the quality momentum index and the generation is the reason why they're able to see free cash flow generation above 20% not only in 2020, 2021 and the expectation is in '22 and '23 they'll be able to do the same i need cybersecurity exposure. i previously had crowd strike. i stayed with fortinet, and docusign, more concerned this is a more recent trade. i was into that trade on october
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18th at 263. i will not allow that to become a losing trade they clearly will be vulnerable if chairman powell does not make the distinction, two separate events, tapering tightening and market expectation for when the rate hike will occur has now pulled forward and the hypergrowth names will be challenged in that environment and i'll tell you this, last friday we rebalanced the quality momentum index very happily. i'm out of peloton i'm out of zillow and i'm out of zoom communications because those type of equity names are squarely in the bull's-eye of an environment where rates get pulled forward >> it's down by another loud amount todd. i go back it what defrter in told us about the nasdaq needing
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to correct let's listen >> all i would say is that the probabilities are as the world normalizes, as rates normalize, multiples will likely revert closer to the mean i don't know when that is. we don't call tops or bottoms, but when that occurs we probable pull forward, six, 12, 18 months' worth of returns and it could mean that the independent counsel goes sideways for a period of time and it could mean that we have air pockets along the way. >> dr. j, those air pockets -- is the fed the thing that initiates the air pocket >> no. ultimately, yes, scott the reason i said no at first is that i don't think they will be, but they could because of their messaging and that messaging, he has to do a real tightrope today between those bond vigilantes and getting reappointed. if he goes too hard on either side of those, scott, we could
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see that air pocket that brad was talking about. i'm thinking jay powell is a smart enough politician and has been in this seat for long enough that he will not make that mistake, but you know, when you've got a live meeting like this where he's talking about what he's going to be doing, and he has told us for months that basically november is live, we are going to see taper begin and he's going to make it, you know, pretty clear today is my belief. 99.9% chance december we start and it will be somewhere between 15 billion and perhaps as high as 20 billion on the taper, scott again, if it's a lot more or a lot less than that, those kinds of messages to the market coul cause those air pockets. >> i go back to the most important thing is perhaps whether the market lets jay powell have his way and his word or if his hand is forced in some other way. i asked you guys to come up with
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some so-called taper picks nobody picks technology, by the way, as i look at this list that you all put together for me. brenda, cme group, j.p. morgan, coin base. you want to tell me why those three are the place to be in a new, tapering world? >> yeah. cme group is one people don't talk about very much and this company is highly levered to interest rates rising because there's a lot of activity and volume that they will see as a result not only with that, but also quantity futures as well as corporate trends j.p. morgan has had a really nice move here and i think we're on the cusp of seeing more growth in loan growth. the company really talked about that in the conference call recently, and seeing early signs of the credit card usage and balances may start to rise and savings come down, so that would be a positive and that whole group would be a beneficiary of rates rising a bit so they can collect higher spreads and that
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would rise coin base, for those looking for an alternative to stocks and bonds depending on the volatile they we see as a result of interest rates rising and not only for that reason, but the crypto ecosystem is more widely adopted and our traditional finance will catch up and recognize that if they want to be relevant to the next generation they're going to have to adopt some of you, of cryptocurrency and facilitate holding that and trading it in some way >> joe, why edward life sciences and s&p global well, i went back and studied the prior taper experience, and we don't have much evidence other than what we had from december of 2013 through october of 2014. the statistics are rather compelling i think people forget about the performance of health care the s&p during that 10-month period returned 9%
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health care actually gave you 21% during that period edwards life sciences was up a staggering 88% so it's a very qualitative company that has experienced a little bit of disappointment in its recent earnings related to its cardiovascular business. i'm kind of buying into that opportunity where you've had disappointment and earnings and going along with the statistics that point towards health care outperforming this environment financials return the% and the s&p speaks to what value intelligence it will be being looking forward it a tapering environment. whether it's understanding get issuance and whether it's understanding bank loans and either the franchise surrounding the commodity roles that s&p global has so you have to study that body of experience and one last point, scott not getting out of my microsoft or my apple.
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xlk returned you 13% during that time and guess what? you have over 35% from microsoft, apple and facebook during the last taper experience in 2014. >> that's why i do that spragsz thing that we talked about before, growth at a reasonable price versus growth at any price and that made. a line in the sand, did you understand that question that's the bet you can come up with for a taper picks >> actually, scott, the best i can come up with was preceded that which is i don't see the taper doing anything to my portfolio it's been advertised and well advertised so your assumption and asking the question is that it will impact the market. >> i'm just trying to prepare if something happens. >> okay. well, and i'm telling you, the stocks that i have in my core portfolio are the stocks i have, they're long term and yes, i think they'll do extraordinarily
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well through tapering. so you question my response. i question your question >> that's fair i'm just playing with you. dr. j, financials, morgan stanley, cap one and square. >> and square, of course, you've heard me speak about it, how much i love that company, scott. it gives you what brenda is talking about with exposure to bitcoin because with their cash apps and so forth they do that they also give loans out, scott, up to $250,000 and those loans, i believe, will be paying higher interest rates in that taper and that's more money to them versus they drag the credit card through the square act morgan stanley, i like that they've got exposure to rising interest rates in terms of margin interest which, again, once you've got an account with
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margin available to you there's no additional paperwork. it's not like filing for a loan, but if i could just jump to that one real quick, scott. i've been seeing unusual activity in rocket today, rkt, and i suspect because in a rising rate environment, and in other words taper and rising rates i think people might be pushed to do more refinancing in that environment they've been lucky so far and the rates have been low to virtually nil and now if we start seeing that appreciation in rates, i think that drives more people to the loan officers at places like rocket rkt. >> powell has gone out of his way, too, to make this the most telegraphed taper of all time which is perhaps why tom lee is out today underscoring his year-end everything rally view saying that tapering will not be a killer and we know from the markets hitting new highs that
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risk is definitely back. the same names i mentioned at the top of the program with the high multiple and high price to sales, josh highlighted some of these yesterday in the nice come back that they've had. the question is what now mike santoli, our senior markets commentator is taking a look at that broader question of how investor sentiment has gravitated toward these refisky names. >> over the last 30 days s&p up 8% and s&p 500 up something like 11% and the small caps braking out and tesla added a quarter trillion in market cap in the last week and a half, so yes, there has been a lot of kind of aggressive, you know, risk-seeking moves i would call it out there now on the one hand, this is very much par for the course when you have a let of house money built up in this market and it's been a great year in
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s&p and in some of the more aggressive names like tesla. keep in mind, this thing trades 40, $50 billion a day and that's sellers on the way up. therefore it gets redeployed is it too much, and maybe and it's a repeating action than an overheating action late in the year, beta outperformed and the more volatile stocks tend to outperform and small caps tend to outperform and also nasdaq 100. so it seems as if it's going according to the script of what you might expect also it's not necessarily clear that all of those frothy areas are going to the prior heights like we saw in january or february and whether it be individual names like amc and bed, bath & beyond and they can't necessarily bail on them you've been able to drain the froth without the overall market and to me, bottom line is seasonality is tough to fight. the bullish pattern is hard to fight late in the year unless you have tightening and
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financial conditions and unless you have some kind of an adverse reaction to what the fed is doing and we're not seeing that right now as you've been saying. powell will do everything he can to separate the tapering process from an eventual rate hike and that's probably job one of this press conference >> do you feel like the whole thing is baked inasmuch as people say that it's just a yawn and the markets are cool with whatever happens today? the obvious activity in stocks and equities over the last few weeks would suggest the answer is yes unless everybody is simply too complacent about what a new environment is going to look like. in terms of the real world effect of what tapering mean, yes, it is a non-event and it's probably gone on longer than most people thought was needed, appropriate or is doing any good, but are we going into a meeting in an overbought condition and due for one of these shakeouts anyway and therefore that might be the excuse and that might be the tactical question, longer term
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the first rate hike is not the thing that kills the bull market ever you get scares along the way, but even if we're do with a rate hike in the second half of next year, whatever it might be, it's probably going to seem inkraedibly appropriate and maybe overdue based on what the economy is doing at that point >> appreciate it, mark santoli, let's get a few moves before we take a break >> weiss, xer, and you've talked about this position 650 times on the show it's down more than 1% that looks like the lows of the day to me. what are you doing >> 601 times, scott, to be precise. i added to it. the management, it was not a good quarter and it was a good overall quarter and in the ltl space they were unique in the industry in missing it their costs went up. they didn't get what was going on they have a plan to fix it i don't think it's done and i do think they'll recover and i do think they'll take a little bit
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of time and good thing they split off because they had a phenomenal quarter and to top off what is a core position and i'm not going to be patient. i will be patient with the core position >> you also sold your tesla calls which you've been in and out of over the last couple of weeks as we watched that stock just go pair berabe parabolic ot month or more. the momentum in the fundamentals was being matched with the stock price and it was just a trade. i saw three-are the kwaers of them, much lower and i saw the rest yesterday when the momentum started to really break. so i'm out there's momentum trade and you have to go when momentum stops >> i got you speaking of momentum and quality, joe, your etf you so generac, and the rsx. can you tell me quickly about growth >> the rsx was a way to get
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exposure to the gas crisis i said to myself why am i wasting my time here again, with the taper experience and the price of oil went from 107 in july of 2014 down to 52 by the end of tapering so i'm out of that one generac was below $400 unfortunately, you have ebitda margins that are contracting here and revenue miss and it's time to register what is a quality company and i would reload if you see further price deterioration. we'll take a quick break come back and chinese tech stocks have been battered in the last six months and now, the stocks are too important to be ignored. we'll debate that in our call of the day and before we do go to break, check out shares of allbird, soaring on the public debut today. there's the stock up near 70%. we're back on the half in two minutes.
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♪ ♪ welcome back, everybody. i'm sue herera here's your cnbc news update at this hour. kids aged 5 to 11 are getting their covid shots. 10-year-old mackenzie olson was the first to get vaccinated at this facility in decatur,
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georgia. the federal government is promising there will be enough vaccine for the 28 million additional children who can now get vaccinated on the news, who's rushing to get their kids vaccinated, but who's holding back that's tonight at 7:00 p.m. eastern time multiple reports say green bay packers quarterback aaron rodgers has tested positive for covid and will not play this week the nfl network says rodgers is not vaccinated and will have to quarantine for ten days. that puts him in danger of missing next week's game, as well neither the packers nor rodgers' agent has confirmed the positive test. conservative supreme court justices showing concern that a broad ruling in favor of gun rights could trigger restrictions on firearms especially where people gather the high court is hearing a case on whether new york's restrictive gun permit law violates second amendment rights you are up-to-date, scott. that's the news update back to you. >> sue appreciate it, very much. thank you. a bullish call on china's tech
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stocks today barclays has initiated a bunch of names and their top pick is alibaba. as you may have heard me say before the break, they say these stocks are simply too important to be ignored. you know, weiss, you've opened some of these names and you sold out, i think, of all of them and you shorted some what about this? too important to be ignored? is that true >> to important to who too important to his career because he follows them, but not too important for anyone else. [ laughter ] pretty much at the bottom and i think the risks still remain can the stocks go higher i did, i think that they're rentals, they're trades and that's it. you still have the major, major issues and there's no way to quantify those risks and it's insane to try and value these on a relative basis to u.s. tech companies or any other region where you actually have democracy and free capitalism. so own them at your own risk
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yeah, you can make a little dough, but you can lose a lot more than you can make at this point. >> brenda, too important to be ignored or simply too risky? >> we think, in our view the chinese government is still very committed to supporting the growth of private companies and sees that as a major growth of the economy going forward, so we don't think this is going to continue forever more even though it probably will ahead of the communist meeting next year. however, we still think in this world where valuations are extended for a lot of fast-growing tech companies in the united states that this is an area that does present some opportunity here, although i'll say size it appropriately given the risks so you don't eliminate it entirely, but having some exposure here makes a lot of sense. >> playing it through options is a way that pete has told us he wouldn't even own these stocks, but as weiss said for a trade or
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for trades and you're doing in at least one or two of these name, right? >> yeah. right now i've only got beke, scott, which is in the housing sector tech side of housing over in china it's the only way right now i would play it. i don't see people in here buying large blocks of stock i do see them speculating on calls and to that extent i've got just one of those many stocks that we can pick on, you know, from billy to pdd to alibaba and tencent. i've only got one of them in there, scott and that's just because china has just gone after these companies. education, they started there and then they just kept hitting them so i think it's -- it is the best way because you can define your risk on entry with an option spread and that's the
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only way i'd play it i would not own the stocks here. >> coming up, a fast-growing coffee company is going public via a spac deal. we have the latest with a man leading that effort and we'll ask him if past political headlines will help or hurt that business we'll do it next even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so...
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♪ ♪ >> all right welcome back black rifle coffee company in a 1.7 billion spac deal. leslie picker has that for us today. hi, leslie. >> thank you so much i am joined by joe reese and the co-founder and spac founder of silver box capital thank you very much for being here interesting acquisition with black rifle. this is a company that is a recent new york times magazine article put it, they said black rifle became the unofficial cope of th coffee of the maga universe. it supported then president trump's muslim immigration ban and its had reputational
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scrutiny and headlines related to its merchandise which was captured in photos at the capitol on january 6th as well as kyle rittenhouse, he wore a black rifle t-shirt when released on bail why are you investing in this company despite all of these headlines. >> well, first, leslie and scott, good to see you always great to spend time together thanks for having me on. let's step back and talk about what black rifle company really is and what it isn't and to answer your question specifically why we decided to invest in it black rifle coffee company at its core is an extremely high growth, mission-driven coffee company serving premium coffee and merchandise to a very loyal set of customers what it is not is a company that has any political affiliation. it's not a company that sells or promotes firearms. it's literally a high-growth, high quality coffee company. when we think about why we
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invest in it, leslie, the question you asked, there are three things that often get lost in where we live and the urge to label. first, this is a rapidly growing, financially sound organization that we found quite compelling from the shareholder return perspective and second it's a digitally native omni channel with expansive growth opportunities and finally the mission to improve ask support the lives of veterans, first responders and the military, we just found that pretty compelling which is why my partners and i donated $4 million to their foundation. >> i understand, when you look at the financials and the prospects for growth here. however, i wonder when you say that they're not a promotional vehicle for firearms, i mean, they have coffee names like the ak-47 and the silencer smooth. they have been participants whether willingly or unwillingly in a variety of political issues and polarization in this
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country. you know, you're basically, are you worried that you're putting your money behind something that is more than that, that is a political statement? >> so let's talk about the name of the company because i think that's a good summation of how the company got started. i actually think when you think about evan, the founder of the company i think his story is an inspirational one for everyone it doesn't matter what side of the aisle that you sit on, a dixiecrat or rockefeller republican and here is a man that did multiple tours in iraq and afghanistan and said i'm going come home and create a coffee company and i'll serve my community and i want to hire veterans he stated he wants to hire 10,000 veterans. half of the employees are veterans or spouses and that's a community that's been historically very underserved and so black rifle, the name,
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that's the name that the founders, evan in particular, the tool that he carried in service to his country in afghanistan, in iraq and other spots was a black rifle. it doesn't mean we're selling firearms we're selling really good coffee and really fun merchandise >> i'm curious if this spac was negotiated before the digital world acquisition core spac that agreed to acquire trump's plan and media and technology company. that stock has seen a tremendous run although some volatility, as well was that a signal that this community and the more right-leaning political bend could find opportunity in the spac world >> well, so i'm not a market timer or a trigger i'm an investor, as you know, leslie we started diligencing this company in june. we spent over four months exhaustively looking at the financial statements and the business practices and the
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operations and the growth potential. the timing of that spac and our announcement is serendipitious and when you talk about a company that might take advantage of the right i think that's wrong because i think of my customer base. two of our largest snsas, our direct to consumer business. first is new york city and the two is los angeles those are two cities that you know i live in i wouldn't call those right leaning. i'd call those center left so this is america's coffee company. i saw an article yesterday that made me laugh that said oh, black rifle wants to be the right-wing coffee company. actually, we don't what evan and the team want they want to serve great coffee to every american it doesn't matter what side of the aisle they're on and the better that they can do for shareholders in sustainable a gran, they had veterans and
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first responsers >> i'm curious how you a right at the spac was trading 4.7 times and black rifle will bring in 23 million in sales and a very significant premium to starbucks. how did you get to that number >> good question we priced it off of 22 and 23 revenues and we look to comparables like dutch brothers, peloton, oakley and other high growth consumer subscription-type businesses and when we look at those businesses we're pricing it at five and a half times 2022 revenue and 20 times -- four times -- five and a half times 22 and four times 2023 marketedly below all of what we looked and the when we thought about the growth opportunity in the white space that black rifle has versus any other competitor, we felt it was a compelling
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valuation and look, valuation is a moment in time and we were pleased with how the stock performed, but if you ask evan, tom and the rest of the management team they're more focused on a company that will create longer term value for shareholders we think as a moment in time which valuation is today and we think it will value the public markets. >> joe reese, co-founder, thank you very much for being here discussing the recent deal to acquire black rifle. we appreciate it >> thank you, leslie >> scott, back offer to you. >> les, appreciate you and joe, appreciate you being on the program, as well coming up, don't miss jon najarian's latest trades in unusual activity and that'sing come up next and today at 3:30 eastern don't miss the pro talk with dan niles and cnbc's
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all right. doc, unusual activity. what do you see today? >> all right, scott. in addition to that rocket we also see iaa this is an auto auction company,
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and it's trading at about 55.50 dollars a share. we see big buying in the april 60 calls of 2022, scott. so this one's got plenty of time i bought a spread basically buying the 55s and selling an upside call against them i'll probably be in that trade for several months second trade, denim air scientific, dnmr, this is a shorter term trade, much shorter, in fact these options expire next friday they're buying the november 20 calls and that's with the stock at about 1890, scott like the upside here, it's an alternative to petroleum-based products for things like straws and cups and things like that. i like this one a lot. i'll be in that one about a week >> doc we appreciate that coming up, retail. many stocks trading at record highsand the index itself is a new high for the first time since all of the way back in january. you wouldn't believe some of the
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gains in the space we'll talk about it next ♪♪
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but we believed we could make they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement. i'm 53, but in my mind i'm still 35. that's why i take oste bi-flex to keep me moving the way i was made to, it nourishes and strengthens my joints for the long term. osteo bi-flex, plus vitamin d for immune support. the retail etf is on a big run. the xrt hitting a new all-time high today for the first same since back in january. steve weiss, up 134% year to date many stocks on my list in that space are hitting new 52-week highs. do you stay or take profit here? >> no, you stay.
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ten times earnings, they signed a agreement with nike where dick's can get preferential call on new product and basically designing their own product. and you can order nike from the dick's apps a. great joint venture here i love it. >> i know you also own target. doc, you do as well. obviously, pete has owned it for an awfully long time maybe you have owned it along the same time frame. up 46% macy's 171 dillard's 355. bj's, kohl's, you are ban outfitters do you stay with these moves or do you have take profits >> those names, most of them on that list, scott, you stick with we had a couple big ones that popped today, cpri, capri holdings as well as bed, bath, and beyond, both had monster pops just in the last 24 hours
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those i think you take some back you basically saying some off the table, maybe 50% or more but the rest of those, target, in particular, walmart, you hold them into the holiday on black friday at least. >> that dillard's move a new record high today for that one new 52-week for cignet, new 52-we can for macy's that's quite a move. back with more after this. actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.
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it hasn't done well over the last few months. up 2% obviously today. over the last 12 months, about a 36.5% winner what's your outlook here >> i am going to include sky works since i won't number the show tomorrow and they report tomorrow night it is the same thing i am skittish. i put back my position months ago but i am skittish because of the apple quarter. if one component misses out of many going into the phone it backs up the whole chain that includes qorvo and skyworks. if they get hit i am in gag back into a full position seasonally you want to own these from january on don't know this quarter, it could be squishy but the future looks bright >> give me a final trade name. just a name. >> nvidia. i bought the calls on monday doc? >> dollar tree, dltr. >> brenda?
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>> merck >> you could give me more than a game because you didn't take up all of the time previously earnings, lots of reasons to be excited. >> all right, joe, what have you got? >> c gen, break, out post earnings. >> big average coming up about an hour away from that in the meantime, "the exchange" starts right now. >> hi, everybody i'm kelly evans. an hour until the federal's latest decision on policy. it should be historic. they are widely expected to announce tapering as the pandemic winds down. but the real question is whether they have to move up their time line for hiking interest rates as demand overwhelms supply. first to the markets trading in a tight range ahead of the fed dom chu? >> it seems to be the m.o. of the markets on big fed days. they g


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