We will reveal. A developing story captivating both wall street and Silicon Valley today. Will sales force make a bid for twitter . Mark benioff is speaking right now. Sales force ceo mark benioff on a bit of a shopping spree, buying Companies Left and right to build out his business. In fact, sales force has closed 11 acquisitions this fiscal year. Among the biggest ones really making headlines, there was crux for 700 million. Which should strengthen the companys marketing cloud. Collaboration Software Developer kwip for 582 million and ecommerce providing demand ware for 2. 8 billion. All buys would take a back seat if benioff didnt make a bid for twitter. Today on cnbc, the ceo addressed those reports. We look at everything, you know that, jim. Linkedin. We look at everything. You name it, we look at it. Its in our interest. We have to go deep on everything. We have to understand what is possible for our shareholders, what isnt. But in the scheme of things, if you look back at my track record as a ceo, i think youll find that while i look at a lot of things, i actually pass on most things. There are reaches to believe benioff to make a bid for jack dorseys company. We know hes open to the idea of buying an internet asset, given his interest in linked in. There is some overlap between the two companies. Remember quips founder is on the board. And the strategic fit. Crm customers could potentially use twitters data to create targeted marketing campaigns. Still many analysts and investors seem skeptical. You can see that in the stock, which is in the red this year. Down more than 10 over the last three months. Ki ki kirkmaturn tells me he countries that deal would be too costly. He thinks the stock does remain under pressure, unless benioff comes out and flatley rejects these reports. He also says ultimately sales force is going to do what benioff thinks is in the long term interest of his company. Melissa, back to you. All right. Josh lipton, thanks so much. So we get to that question. Should salesforce buy twitter and just to put in perspective, salesforce market cap is approximately 49 billion. A twitter deal could be 20 billion. This is going to be one of its biggest, if not the biggest acquisition chm makes. Crm makes. Quip was less than a 750 million deal. If they move, its not going to move the needle necessarily. The company is not going to get lamb basted if theyre wrong. If salesforce buys twitter and get it wrong, thats not catastrophic, but its certainly not good. So i dont even know how this Company Lines up to buy twitter, frankly. Benioff said, he would have paid more for linkedin. Its not like hes hes not adverse to making deals. But this i dont understand why this deal would make sense for them at all. I dont understand why he would be as open as he was. Hes driving up the price himself. Seems hes not making the best call here. Weve all read the quotes. He now says the data is the new currency of the software world. What i find interesting, why is twitters data suddenly so valuable when, in fact standalone, it wasnt valuable. Why is it so valuable as a takeout . And, again, if twitter has any issue, its people questioning the validity. We dont know the age or sex or a lot of things related to the core parts of what youre getting for people. What are the Options Market saying . I think the most interesting part, people yesterday, signalling to us they were not going to be bidding. And thats why the stock moved late in the day towards 72. But to guys point, when you look at what the acquisitions have been, youre talking about a 2. 3 billion, 2 billion. Those are the the biggest, by the way, of the acquisitions. He has done 44 of them since they became a publicly traded company so its really interesting to see the direction. He looks at a lot of things as he mentioned, benioff. But does he actually act on a lot of them . Of course not. Hes done 44. That is a lot. But when you look at the numbers, it just doesnt make sense. And im not so sure to these guys point that the data that twitter can provide right now is something thats really somehow going to be worth 20 billion to a 50 billion firm that have to leverage themselves to make this deal. Tim brought up a good point. Why is he this honest, why is he this forthcoming with maybe he wants someone else to buy it. Hes playing poker here. I think he wants the excuse that someone else takes at the cost of his own market cap . The stock is down 10 . Thats i think it will bounce back, especially if someone else buys twitter. It will bounce back and bounce back dramatically more so than it has fallen off the table right now. If you look at it, hes trailed sap, oracle. This is the ultimate conspiracy theory. This is where were at our best, the truth lies somewhere in the militant. I dont think hell buy twitter. Were learning hes pouting for not getting linkedin. Linkedin was 26 billion acquisition, as well. Bigger than twitter. Was he really going to do that . How much of this is grandstanding and gamesmanship . I dont know. Crm didnt just fall off a cliff today. This is a stock that actually has fallen off a cliff since the middle of august on either some of these purchases. I think its the twitter news. I dont think i know. It missed last quarter. They missed earnings estimates, they missed 81 a share. Back in june the quarter is okay. I think the guidance hurt the stock and the stock was 83 or so in june, sold off since. This is a company i still think its a great company. But valuation doesnt matter until it matters. And now its starting to matter. To petes point, though. If they dont do this deal, the stock gets back everything they lost and probably more so. I think he likes that he likes to put himself out there. This is getting the name of his company back out there. The deal goes kaboom, it doesnt have goes away, yeah. Goes away. Twitter has a vested interest in keeping all of these rumors or hearsay, circulating. Thats the bigger im still long twitter. Thats the bigger problem. If this all goes away, then twitter drops the same way that crm will rally. For sure. All of this talk comes as one analyst slams a potential deal for twitter, saying it could destroy yes, destroy, as much as 25 of salesforces value. Aba, great to have you with us. How do you calculate the up to 25 destruction in market value for crm if it buys twitter . Absolutely. We looked at Free Cash Flow from twitter and salesforce. Com and what they can do. Right now salesforce trading 25 times Free Cash Flow. Combined companies have a much higher risk and there is a lot for salesforce. Com and completely uncharted territory, because it does not have any exposure to supported market. So when we look at that, we use 22 to 24 times cash flow that gets us to a value about 25 below the combined dual market caps of the company as of yesterday. Today, salesforce has lost some value. But still, when we look at the combined companys value, thats 20 below what the two companies are trading at right now. You also go on to say, abheh, it could possibly regain the market value, except for the fact it would take two to three years to regain it, assuming everything goes well with the twitter integration. Does that mean you dont see the strategic fit at all with twitter . You know, theres a lot of uncertainty. We can see value in getting the access to the data. We can see what mark can do if he has access to that data and for the Customer Support functions. But at the same time, theres a lot of uncertainty. 90 of twitters revenues come from the supported model. There is going to be a lot of shift that mark will have to navigate through. So its not going to be an easy company to integrate. And salesforce. Com in competition with facebook and google, those are the two companies that dont compete right now. And its going to have competitors with much deeper pockets. Right. So its going to put sales force in a completely new area and we think it increases execution risk, which would weigh in on the multiple for the next few years until he proves there is value in combining the two assets. Lets say twitter excuse me, crm makes a bid for twitter. What do you think the shareholder reaction will be . As i understand it, benioff met with major shareholders today at the conference. We already know that one major shareholder has been very active. Actively open about opposing a deal of its competitor, crms competitor, oracle, with net suite, the biggest shareholder. Do you anticipate that these funds could some out and just oppose it . If you take a look at the market reaction, obviously, there are huge questions hanging over a potential deal. Absolutely. I think if the deal deal actually happens, there are a lot of salesforce. Com stockholders who are going to get out. Its a very widely held stock. Most of the Financial Institutions own large quantities of the stock and theyre going to trim down significantly until there is some clarity on how the combined company works. If the deal doesnt happen, the salesforce. Com stock is going to go up to where it was before this happened. And investors will be back to the fundamentals. The fundamentals are very strong for this company. Okay. Thanks for joining us. Appreciate it. We should note, just crossing moments ago, twitter telling its bidders to conclude in terms of deciding whether or not theyre going to make a bid, what the bid is, by october 27th. This, according to reuters. We do have some deadline of sorts. What year . Presumably, it is october 27th of this year. Although bids could come in sooner than that. One of the points bob makes, twitter is a depreciating asset. It should be tomorrow. And that there whether instagram or others are eating their lunch. I think for salesforce, the ultimate question, it comes down to valuation. This is a company the street expects to grow north of 20 , and they have to live up and meanwhile going faster now. The normalized growth at 20 . They need a pipeline that assures people. A biotech stock shrinking. We have the details. Meg. Were looking at al my lamb pharmaceuticals, the company saying it has discontinued development of its second most advanced drug. Its for a very rare disease affecting the heart. Now down about 40 on the news. The company saying the decision was made by the outside Data Monitoring Committee after a trial showed an imbalance of mortality on the drug. Meaning more patients in a Clinical Trial died than in the placebo. Clearly, this causing a lot of concern among investors. They have one ahead of this. People worried what this says about the rest of the portfolio. Meg, this is just i mean, i feel weve had a lot of the after hours biotech movers where a result is sort of binary and you see the stock fall off a cliff. The intracellular, one of those examples. Yeah, we have seen a lot of this lately. The overwhelming sentiment im hearing from folks, this is just more bad news for biotech, and this kind of news means the reaction is going to be Even Stronger than perhaps it should be. Talking with some people who say the company has a lot of other shots on goal and they are taking pains here in the release to say they have not seen any kinds of safety signals with the rest of their pipeline. And they are having a call right now, so ill hop on that and bring any headlines. Meg, thank you. Meg tirrell. Down 40 . Intracellular another one. Novavax. Im not going to pretend i can speak intelligently about the company. I cant. What i can say, the three reasons the reasons why if you want to be in biotech, you get into a company like amgen. Look at the products in market now. And look at the valuation and their Balance Sheet, and thats why if you want to play binary biotech, good luck. This happens. But if you want to play biotech with valuation, amgen is your play. And another if you are more conservative when you really look at the bigtime, the big phrma names these days, they have become a biotech play as well. You look at the acquisitions over the years and it really makes sense. I know bristolmyers has traded way off of where they were. When you look at Something Like that, they are really just a big biotech disguised right now as a phrma company. And i think youre seeing more and more out of the lilys and merck. A Surprising Group of under the radar stocks soaring this year. What they are and if there is still time to get in. Plus rates on the rise crushing highyielding stocks, but there are four names surviving the bloodbath. We have the names and the trades later this hour. And new reports of a whats supposed to be replacement Samsung Phone. Catching fire. Are samsungs problems even bigger than we think . Those details later on. Whats the value of capital . Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, nojust wealth, but things that matter. Morgan stanley welcome back to fast money. Get this. Kohls stocks are on an absolute tear this year and that kicks off our top trade. 170 , Consol Energy up 152 and Natural Resource 130 this year. So with cold weather approaching, will coal stocks keep heating up . Grasso . I think these stocks obviously we all know, we have talked about them for years, oversold, a political risk. They have been oversold. I get cnx. I get consol. They have a nat gas angle. The others are just a rebound trade. If youre still around and youre coal, youre still its up 13,000 , we saw. They all go bankrupt. And then if youre lucky enough to make it back, youll be here for a little bit longer. I dont totally agree. If you think about whats going on in the natt coal prices, youve had a place where its up 80 , supply down. Power demand, dirty fuel demand for power is still something out there. Still happening. Names like rio tin toe and glen core also trading on the back of this. Nat gas increasing in price too. So the competition is a little bit less. But there is going to be a lot less people working for these coal companies. They will be more efficient, but yes, i agree. Theres a place for coal. I think coal prices at least have bottomed and i think youre seeing this through a lot of the bul bulks. You have a trade sustainable. Are you going to buy a coal stock . Yes. Again, find a Balance Sheet and this is not easy to do, but find a company that actually has and generates Free Cash Flow. Thats how you make the play. You dont go all in. There was a time when we talked about coal stocks almost every single night. Peabody energy. Peabody, a lot of them have gone bankrupt. A lot of them just a couple Million Dollars market cap now. Would you i owned resources. I own at a much higher price. But im not selling it now. Do you remember the days when we talked about peabody being a takeover candidate. North of 100 a share. That you really the market cap back then, as well. So i am going to say it wrong so please correct me. But consol. No, you got it spoton. But they have a lot of debt. Thats a good thing sometimes. Looks like a good thing right now. Just in terms of where its trading, a 5 stock at the beginning of the year, 20 stock now. Bumping up against a down trend line from the missilitants mid of beginning 2014. If youve been long the stock for the ride, you have to take some money off the table. Unfortunately, im on the other side of that one. I actually own puts in there because ive seen aggressive activity. Consol makes the most sense to me because of the nat gas conso consol. Consolidated energy. I just slipped on that one. I like consol because of the nat gas portion of this play. All right. Still ahead, oil settling just below 50 bucks a barrel. So are any of our traders buying Energy Stocks . Im melissa lee, youre watching fast money on cnbc, first in business worldwide. In the meantime, heres what else is coming up on fast. A top technician says he has found the perfect chart. But that doesnt mean you should buy it. Hell explain. Plus, heres what higher rates are doing to dividendpaying stocks. But if youre looking for yield, fear not. Weve got the four stocks with big dividends that can sir survive the rate route. Well give you the names when fast money returns. Across new, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov welcome back to fast money. Time for the move of the day. Oil just short of 50 bucks, something the etf that tracks oil surging more than 2 today. Too late to get in. Grasso, what do you say . I think its if youre looking at oil, 49ish, 49. 50, the resistance for me is between 50 and 55. Is it too late to get in . I think youre going to have a run right into that opec meeting in november. They have staged it just perfectly. I think they pulled a yellen. They have walked on both sides of it. And i think you have a little bit more to the up side, but i think 55 is where you must exit. Which stocks would you like . Do you like . Nothing but paper for the last twoandahalf weeks, give or take, in energy. This huge move. Its interesting, the paper that came in just before opec news was the thursday before that. Suddenly monstrous buyers out there in chevron. Goes from 98 to 103 like that. There are names out there. I like some of the service names. Some are the very best right now. We have had paper at halliburton, im in there. Baker hughes paper, as well. Neighbors, some of the drillers, both on and offshore. I think those are the places to be. Macro oil dynamics. First of all, what the dollar does is going to be 70 of oils move from here, i think. Opec is crucial. But i think 52. 75 on brent. 62, 70ish. I think saudi and iran have a deal. And if you look at the api, you have conflicting api, crude, you know reductions, which is very, very bullish and yet the declining production rate of lessening. Long way of saying, u. S. Production is actually looks like maybe its bottomed. Thats a concern. Ultimately, to me, the dynamics going into that meeting are such that i think oil can trade higher. As much as we pulled forward the stabilization you were just talking about the importance of the dollar in the whole trade. I mean, with the environment here in which