Footwear sales and incredible numbers out of china, and our question is, is under armour still underappreciated, and pete najarian, you are told us ten days ago not the buy it. I told you that they needed to execute on what they do, and you have to continue to have the growth with the stock that trades with this multiple. The multiple is scary, and in the nosebleed e territory, and you go back to look, and say, that the name i prefer over under armour which is lululemon which is going the trade at a lower valuation, scott, but in the numbers of this quarter, and predicting 11 billion in sales on the women side on top of everything else. That is a big point. And they were gaining market share, and then lulu started to get it from somewhere, and they are getting it back from under armour, and the most critical part, steph curry, and the shoes. That is the area to see the accelerated growth, and not the biggest portion, because apparel is, but it is tlr 264 million of the 1. Whatever billion. That is where the growth is so far. And doc, when does the hy hyperspeed growth trump valuations. So you are going to be paying up for growth, and this is where you have do it. This is is one of those companies that you do it with. Yes, and they manage the inventory, and nike had 4. 6 billion buildup in inventory, and these guys, they get rid of it. And when plank sees something that is not selling well superbut it is just that the inventory to the sales ratio is not as concerting to other people as it has in the past. Yes. But the point of inventory is a concern for some. And yes, anybody who has a inventory build, because it is a question of how much of a hit do you take, but these number, it does not take a significant hit, even though you see the stuff at the Discount Stores for last seasons stuff, and the kids want this seasons stuff, and the 64 growth in the shoe market, and that is huge as pete said. And the slight slip in the gross margins, judge, basically right down now to where nike is, 49. 9 . And just ahead of their own expectation expectations. You want a stat . Yes. In the q1 china sales were more than 2014 in total. In one quarter in 2016 in china, they did more sales than in all of 204. Look, here is what i would say. How you like them apples . I love them apples, but any stock selling at this multiple by definition is not underappreciated, because it is a premium to the market, and in fact, to other companies in the same sector, it is not underappreciated, so it comes down to what type of investor are you . I am more on the value side. And you are willing to pay up for growth though . If you are a growth investor, this is the perfect kapd date, and the metamorphosis is amazing, and they have gone from product to product, and they have stake theed a claim in shoes, and build on it, because lot of people never thought they would get there in shoes, but they are there. And if you are growth meyer, yes, and value player, no, you cant go there so you are willing to buy a stock like netflix with big valuation, and people are playing up for for the growth, and why not under armour . I have been in it, and not right now, and they were buying the 45 calls monday of this week, but it is not big enough, and chunky enough, and volume wise to follow them in, but the steph curry side of it, and we knew that when nike went into china, judge, the draw of yao ming and others in eterms of getting the shoes moving there, and of course, people like Michael Jordan and the rest. Steph curry is all of that rolled into one for china and the exe ppoe sure globally for s is immense. I have not been in the stock, and i wish i were earlier. And so you bring up china are you a buyer of the stock today . I like ut a lot, and if you put a gun to my head, im a buyer y im a buyer, but i prefer lululemon. It is difficult to look away. And lulus traffic is unbelievable surging, off of the charts, and the best in the industry. Yes, near the 52week highs now. Lets bring in analyst camilla kanajui, and you say that this is a once in a generation company, and are we at the point where the concerns are of the past and we should look beyond . Well, it is good to be here, and thank you for having me. Yes, you are right, the concerns that manifested in the fourth and the First Quarter are laid to rest as far as we are concerned. The growth and the management of all aspect s of ts of the top l apparel, footwear and accessories and the management of the gross margin are pointing to the right direction of the company that is distinctly in charge of its own future and we think that the future is very robust, and there is a lot of talk on the panel about the valuation and i dont think that ever in my history of covering the company has there been a point in time that people are comfortable with the valuation, and there is a company that is growing as fast as it has, and consistently year in, year out the justify the valuation, and you have to look at the context tof val rel thetive to the growth, and to encapsulate why it is a buy today, and even more of the bearish views and they are few and far between and yes, we expect them to be great now, and this great quarter, and not a surprise and sit down the road that you need to to be concerned about. Are the womens sales picking up to the level that you are paying up for now . Are they going to be able to manage through the inventory issues which you in your note say remain elevated as you expect they would, and what about down the road . Sure. On the womens side, one thing that came out on the call is that the womens growth in their own Online Business outpaced the growth of the mens business, and that is reflective of the preemization of the womens l e line, and that is gaining momentum, and Going Forward and accelerating, and we see it continuing, and as far as inventory what is lost here is that there was an intentional strategic move the bring on the invento inventory, and hold it longer to meet the better delivery times with the wholesale partners and in prior years, the issue is that the demand is so high they were not able to meet the ontime delivery and consequently they would have to pay the wholesale partners which hurt the margin, and the strategies of that intentional inventory build reis sult manage the more gross margin benefits which continues to be the case, and we expect the inventory to sales spread to narrow in the back half of qthree in the initiatives of last year. Thank you, camilla, for coming on. And look, if you had somebody who called you up, and on the Halftime Report they say that it is a winner, and my friend pete says to buy it, what do you say . Well sh, my clients establis baseline equity position, and around that we have to determine if we like it or cautious and right now we are cautious for three reasons. Still are . Yes. The markets are melting up now, and that is going to be continuing, and three underlying reasons to be cautious for getting ag grgressive in the stocks, and first of all in the golden age of the scentral ban r bankers and gone from zero the negative Interest Rates and a penalty for that somewhere down the road. And secondly, the pes are not cheap right now, and so are we under the belief to have elevated pes and another term because we have a zero Interest Rate environment, and the stock is going to be selling at higher multiples and the tape is not telling it well, because you have telecom, and utilities with the highest performing sector, and market that does well when the oil prices will go higher so it is concern overall with the landscape. And you dance with who brung you. You play the landscape that you are given, and if people were buying stocks that are once out of favor before and going to be that way for a while, arent you still on the dance floor . Well, you are on the dance floor, but you are dancing closer to the door. So you want protection and expose sure for the market meltups like this, but ultimately in the next 6 to 18 months, we will have reconciliation, and primarily with the zero to negative Interest Rate environment that the we are seeing. So your view, and bringing it back to under armour in a way, if you felt differently about the market, you liked the internals of the market, the breadth of the market better than you do, and are you more apt to buy a stock like this, because it would ride with the overall tide . No, not really, it is 65 times the earnings, and the Free Cash Flow is 260 million tlrz which is 1 of the market cap, and we with would rather see the higher cash flow, and better return for the shareholders, but it is a tremendous growth story. It is a good conversation, the growth and value deal as you look tat the stocks like this, and looking at under armour and netflix, and tesla. And facebook. Right . I mean, you look at the multiple on facebook and it is in the nosebleed area as well, and looking forward, okay, but now, it is trading at a ip krncredib multiple and yet everybody seems to love it. H that is my point, at what point do you say, im willing to pay for the growth that these companies can actually achieve and im going to look away from the multiple. It is not that you are looking away from it, but they have to execute, and this is the thing that every one of us has to know every single quarter, have they been able to execute through the quarter. And hasnt under armour been able to do that . Since they started they have not disappointed. And the bearish notes have been a buy signal for the stock. Yes, you are right. And it is more appropriate to pay up for under armour than ib many where the revenues have gone from 100 billion to 82 billion, and the eebida is down and they have increased the debt by 40 so they are taking on omore debt, and buying back the stock, and versus under armour with sheer growth. And people are willing to buy it more . Well sh, it is a value trap. Trap. And in the market in terms of the central bankererser it is going to to be here for a while, and while there be a bill to pay down the road, that is so far down the road. In term of the extended valuations, yes, multiple expansion without growth. So that is an issue, and where are you putting the money now, but a it is not like the credit is going to bail them out. And there are parts of the market that have value, and the dividend plays, and the staples on the debt side where are there are certain sectors that we like. It is important not to get caught up in the value traps, but buy on the growth side. And now, find out what rising rates mean for the dividend stock, and plus the call of the day. Is a sell rating op one of pete and jons energy stocks. Lets do it. Get ready for the monster option smackdown. And gm, yum, american express, and the earnings reports are coming fast and furious, and we will tell you how the trade the numbers all coming up on the Halftime Report. Andrea sikon. Medical doctor from cleveland clinic, watson, lets review the Electronic Medical record of the next patient. No problem. Its a pretty huge file. Done. Sorry for the wait. That was quick. As part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. And i get the benefit of much more data, and a lot more time to plan the best treatments. I stay focused 24 7 and never sleep. You sound like a lot of medical students i know. Lacking at apple shares undepressure, and now, back into the bear ter toy, and are richie, you own it, and after swoon of the stock market comeback, do you like it . Yes, we hold it and it is a great long term hold, and separating out the cash, and the cash flow free from operations, Great Company to own. The ecosystem will grow, and we like the penetration. We like it all around. And james, once again, the cut of the iphones and what are you seeing . Well, we would think more this quarter, because everybody is talking about the 7, and it is like the talk, and a couple of years ago, this is a second half story, because everybody is waiting on the new release, and hopefully it is not going to be disappoint i disappointing, but because of bill campbell, and shoutout to that family, because a wonderful friend and good man and columbia football coach, and wonderful man in the silicon valley, and he is going to be missed. And you own the options . Well, i own it, and long on the calls, and i have overwritten calls, but like it, judge, the catalyst is the 7. 0 coming, and you dont get the lift out of it until probably july, time frame. So between here and july, i see it trading in the band, and to richs point, i would not exit the stock here, and it needs to break 100. Better and more exciting places to make money . In the short term, yes. Than say, apple . Between now and july, a lot better places. Such as . Today, i bought lvs on this big swoon, las vegas sand ash andly talk about it at length lateer, but the reason that you can buy a premier stock down like that, and i this they somewhat misinterpreted some of the things Going Forward for them, and Sheldon Adelson at lvs has more potential between now and ju high than apple does. . And now a special issue of the trading blitz. And now sh, the estimates of raising the guidance in yum . Well, some of it due to what is going onn china how to recognize the taxes over there, and so on and so forth and they said that 2 growth, and 2 to 3 growth out of china is pretty exciting. This stock i think that opco raised it from 83 to 90 a share. And what about gm . Well, they blew it. They are favorable mix with the sales, and more suvs, and so you have the stay with the stock. And barrons said that ford and gm have a big upside and the stocks are such dramatic underperformers for whatever reason in a incredibly strong auto environment, and why is that, ben . They are lagging unnecessarily, and it is a great way to play the consumer wo is employed and Free Cash Flow, and the gas prices are down, and go with the autos. And biogen with bert than expected earnings . Steve weiss . Well, part of it is if there was a fear that they could have had it worse, but it is a good quarter and positive quarter, but mixed numbers in terms of the sales of the ms drugs for example. And pete, why is United Airlines getting smoked today . Guidance. It is all about the guidance and when you look at the quarter, it is decent and nothing great, and it should be great, because over at southwest they put up the unbelievable numbers, and they have been the lagger, and we have talked about them being the lagger, and i thought that they would catch up quicker than they have, scott, and the guidance is going to be taking longer, and the new board and a lot of it are steps in the right direction, and the stock is way too cheap, but it is not meaning that it is too lower, and i am in the calls on the zero upside, and that is unfortunate for me, but ape not giving up on it. I believe it is going high e and rich, american, press . No. They beat by ten cents a share, but we believe that there is tremendous competition with the visa, mastercard on the branded cards through synchrony and we dont like the stock. And pete, you pulled the rip cord on this one a while ago . Yes, i did. The thing is that it is off of the lows, but it is still a stock trading over 100 a year ago and in the upper mid60s. When they lost the costco contract. It is the beginning of the end so to speak. And this is just one of them. United airlines. Yes, they lost all of the partnership teals, and potentially another one with marriott, so there are issues aed headwinds and when you look at the visa and the mastercard, and the pure plays, and discover the other day crushed it. So other places to be other than american express. Stay with service, pete, while you are at it, because the stock is blasting off up 15 . Well, it is up 17 to the upside and another on of the cloud plays. These guys, when you trade in this environment that ewe were talking about earlier, the huge growth, you have to continue to have huge growth, and the ceo talked about how we have to have the best quarter every single quarter, and so far, they are executing on it around and the revenues up 44 , but the valuations in the clouds as well, so be very, very careful. And steve weiss, verizon . Well, they have been a great stock this year, and spiking down today, but it has done well year to date, and the Top Performing for the yield so the quarter was mixed and the earnings good, but the revenue not, and the yield is still 4. 5, so i dont see a lot of downside. And coming up, one of the hottest trades this year, and speaking of what steve weiss just said, stocks with big dividends and the utilities and telec telecoms, and what do we do when they come up . And now, looking at jon najarian who is exercising at his desk and he is not alone. Its tricky we are back on the Halftime Report and wondering if the yield could hit the 3 . Well, the utilities and the telecoms have been the best performing sector and that is a problem, because it is based on the lower Interest Rates and the gravitational pull from the zero and negative rate Interest Rate globally and when and if that changes, these stocks are going to be impacted harmfully. You keep riding them until the landscape changes or what . No, no. I would rather own pure dividend pays like xig or xlp and not focus on the higher yielding utility telecomtype stocks. Well, we believe that at some point it is going to be hurt, because it was a bubble out of the zero rates and the low rates, and now mlps are the place to go and the yields are back down, and that is a reasonable place to go, but im not so worried about the exit of the yield trades yet, because you have a 10year that is trading nicely below 2, and when it is closer to 3, let me know, but one more rate increase or two more coming this year from the fed, there is a need for yield. Pete . Yeah, there is a need for yiel yield, and it has to be something over 2. 25 or Something Like that, scott, before you are going to be seeing the big shift, but to your point, is it is not the place to be. And you want to be ahead of it, right . Well, one of the names i bought in the last week or so, and a great example is cisco, and this is going to be a lo longterm hold for me, scott, because i like the newer management. That is going to be something that is going to be moving the stock in the right direction, and the transformation is going to be perrific, and 3. 5 yield, and if i can find that and the Management Team that understands the landscape