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tv   Sportfolio  Bloomberg  January 16, 2014 9:30pm-10:01pm EST

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>> this is "taking stock" on bloomberg. i'm pimm fox. for today's headlines, let's go
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to mark crumpton. >> actually, i'm in for mark. >> my radio cohost carol nassar! >> goldman sachs falling the most in two months creating nearly $16 billion and dropping 13% last year. the trading business representing 46% of the firm's total revenue, the lowest percentage since 2002. citigroup all but took a tumble suffering the biggest drop since june. net income more than doubled. chuck e. cheese has agreed to a takeover. the deal valued at $1.3 billion including debt and apollo will pay $54 per share with an all cash deal with the company's owner, cec entertainment.
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"bloomberg businessweek" with nba commissioner david stern. >> how to manage an enterprise that continues to grow. every successful corporation has to deal with that because they are going to have so many markets crawling out for so much development -- that -- so much development. we had that when we were 24 and now when we are 1200. >> we will see what happens on february 1. >> i feel like i have some chuck e. cheese all over me now. we are in different parts of the newsroom.
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best buy plunging nearly 30% as the giant faces intense competition from online retailers such as amazon.com. joining me now to discuss what happened down what's ahead is ronnie moas founder of standpoint research and craig johnson, president of customer growth partners. what happened at best buy? >> it's a company with a great history and a great future. the present is not so good. it's a very competitive industry. margins are tiny and it is not managing the business that well right now. it is suffering from what we call the tear any of the installed base. these giant behemoth stores that they need maybe half the square footage of but they are stuck with them.
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they've tried to dispose of some of them and they are operating on a profitability race to the bottom. they have to get out of that price competition. they call it investment. i call it cutting prices. they have to get out and figure what the value proposition is that we can bring to the customer that is as exciting as it used to be in the old days when you and i would go into best buy 20 to 25 years ago. it was great. chuck e. cheese was a great place to bring my kids 20, 25 years ago but now, not so much. they are not the voice of authority that they used to be. >> ronnie, talk about it as a buy in the stocks. it was the best performing stock in the s&p 500 and when it falls today, you have to go back to the spreadsheet and say the news is lousy, the stock
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cratered, is it worth something? >> i have a problem with best buy. i don't know what kind of damage amazon, apple, and the competitors will do to them. i missed the move up but i was not a victim today when it dropped 30%. >> these are electronics made by samsung, apple, all over the world. you recently came up with a report on which you focus not so much on the technology and the customer but on the people that construct of apple products. what was your conclusion? >> i blacklisted them on moral grounds. apple is sitting on $150 billion in cash and their employees in asia are making less than three dollars an hour and many have committed suicide. in this country you get profit sharing, health coverage.
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apple would never be able to get away treating employees the way they do in asia. >> as part of the press attention you have received because of this, it raises the issue of charity and philanthropy. it's very good at raising money for causes, fighting cancer and so on. do you feel the same way about that industry? they make products overseas in industries that are not conducive to american lifestyles.
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>> the reason i single them out is because apple is sitting on $150 billion in cash and an apparel company with razor thin margins. >> craig johnson, does it matter where the apparel is made? do the companies carry? >> they want to do what is right by the consumer. in a sense, consumers are agnostic where the product comes from. all things being equal, if the product is made in america, it is often more expensive than made elsewhere. you have an issue of creative attention but it is not in business to help solve everybody else's problems. they are solving their customers problems. they are giving the customer what the customer wants. whether it is best buy trying to do that, avalos and doing it, that's the reason they are in
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business. >> having said that, there are links. what are the responses of the industry? >> more european companies than the u.s. companies in that it's a very different situation if a company sources its products from third-party suppliers and they are under restriction to only do it in these certified good plants and the fire break that bond and dumps it into some fly-by-night outfit. should you hold the vendor responsible, the brand? should you hold the vendors that sell the brand? >> that's why we started with best buy selling apple products. just to close the loop here, you have been following an up or a company.
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>> american apparel has 250 stores over 20 countries and they are trying to do the opposite of what their competitors are doing. they're trying to keep the jobs here, manufacture here, and not is the sweatshops in asia. the problem is they are having trouble turning a profit. but the problem when you have extreme forms of capitalism and the ceo has to choose between turning a profit and treating their workers in an ethical, moral, and fairway. that is the problem that it's a pressure to act in immoral and unethical ways. >> thank you very much, ronnie moas from standpoint and craig johnson, president at customer growth partners. sick of all of those subscription e-mails? a subscription start up it helps clean up those e-mails. creators of unroll.me coming up. ♪
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>> it's all about time. how much time do you spend cleaning out your e-mail inbox every day? how many unsubscribe links have clicked on only to still be on the mailing list? i talked to the founders of a startup called unroll.me. they want to clean out your inbox. i asked jojo hedaya and josh rosenwald how it began. >> we wanted to do a startup together and we kept shooting ideas back and forth. jojo, did you see the last idea i sent you? no, but i saw that groupon offer. he asked me if i saw the last idea. we quickly realized that we would have to take charge of cleaning out the end boxes. that was kind of the inspiration for building a web service that
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allows users to login with their existing e-mail account and with just a few seconds unsubscribe or manage all of their e-mail. >> jojo, how is this different than what google has now? they have sponsored e-mail, promotional e-mail, and social e-mail all seemingly categorized. >> there are a few major differences. when you sign up for our service, we show you a list of every subscription you have. i'm subscribed to groupon, facebook, livingsocial. you can unsubscribe for everything on once instead of doing it one by one. with the promotion and social tab, that only works with the google web client. if you have the gmail app, it does not matter which you have. you can use mac mail, gmail, iphone and it works cross- platform. >> is this just for individuals
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or companies? >> we will be adding some corporate companies that we feel like we have a big market ahead of us. unfortunately, many, many potential users in the consumer space. >> how many people are using at? >> we are in the high hundreds of thousands. people are trying to get those new year's resolutions out there. they are taming the inbox. >> as a new year's resolution. i have not heard that one before. have you found that what goes into the e-mail box, is it pernicious? does it leave a trace on your computer that makes it almost impossible to scrub? >> everyone is different and every company works differently. let's say groupon, it easy to unsubscribe. there are some companies that make you dance around. you have to collect unsubscribed and hit the third button on the
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left and put in your e-mail address. we just make it a little easier. >> there are these massive list marketers for what they may be see as a buying habit. >> there is definitely thousands of abusive centers. if you get a malicious e-mail and you clicked on that unsubscribe link, you will be leading a scammer no let's them know this is a real e-mail address and they will go and resell it. we stop that from happening. that would be that. it would be an advertising supported model and we have tested the waters and it seems to be pretty well.
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we are mainly focused on as many as possible. we have doubled the user base in the last 30 days. >> doubling in the last 30 days. what is the technological challenge of making this happen? >> one is the unsubscribe. there are so many different subscriptions and so many ways to unsubscribe. being able to detect and figure out the algorithm on how to unsubscribe, there are so many ways to unsubscribe from e- mails. the second challenge is the roll up where we can find them. one from e-mail, you get one e- mail with a summary of all of them.
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we block an e-mail client and we block them from hitting your inbox. >> in the single e-mail, do the links work? you don't want 50 ads from groupon but there is one that you want to select. >> we give you a thumbnail preview of what the e-mail looks like and if you like it, you can quickly open it. >> is there one big offender when it comes to e-mail lists? >> unroll.me/awards. we listed the five most unsubscribed from, and i think the top was 1-800-flowers. >> who else was in the top five? >> expedia. >> pro flowers. >> they definitely want you to send flowers. >> you only need it once a year so if they sent it 365 times and you only buy on valentines, it's pretty annoying.
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>> my thanks to jojo hedaya and josh rosenwald. coming up next, a bunker that is ready for the apocalypse. you just need a $11.5 million to live in it. ♪ >> a real estate listing
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recently appeared in the remote town of yellow jacket, colorado, for an $11.5 million super bunker. the selling point was that it could withstand biological, chemical, and nuclear attacks. bloomberg took a tour. >> we believe in being prepared. that is why the neighbors call me jacked-up jerry. >> he lives on a quiet road in colorado, population, 183. he bought a decommissioned relay
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tower from the cold war era and spent the last 12 years and $7 million building it out as the defense against just about everything. >> we have solid concrete throughout the entire facility with a 5-foot thick slab. the building will float and it will move. it will stay intact. it would take it a drone dropping a rocket to penetrate the facility. it will not be your local law enforcement. the law-enforcement guys say we know where we are going when things melt down.
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>> it is his history of working in risk assessment that taught him the first rule of safety. having a backup plan. that's why there is four leaders of redundant heating. six separate sources of power and the uv filtration system. >> it's burned with the lights but you don't want to stare because it will burn your eyes. >> he wants more than just his family in the ultra-secure home. he wants celebrities. his long-range goals for the facility, a five-star restaurant. >> there will be an all glass restaurant, fire in the sky, that has a benihana steam table. >> he seems positive about the future but there is one thing he still finds troubling. >> you are a long way away from a big mall. >> let's stay on the business of construction, architecture, and homes.
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ken calliger from titan atlas global building low-cost, high- quality homes. let's start off talking about the way people live now and what you would like to see in the future. >> we want to build the strongest and safest houses in the planet and we manage to do it with proprietary innovations as well as providing the best building practices in the world. we have created a strong home, very energy-efficient, a home that can be built and manufactured by us in charleston, south carolina, and large scale volume and it delivers social benefit, if you will, around the world. the quality equation has been altered by us at this point. >> what is the challenge at this point? >> it is really adoption.
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the u.s. continues to build with wood. we use the strictures of the international building code which has very strict requirements as to seismic rating, wind shear, thermal efficiency, and being fireproof. a lot of these cannot come close to passing this. you have incumbent technologies, timber, or in a post-sandy environment, splinters. if you have built with our technology, we are hurricane proof, tornado proof, fireproof. that's the way to go. >> we've got to go but i would love for you to spend more time with us in the future. thank you very much, ken calliger, president of titan atlas global, thinking new homes. thank you for "taking stock." i'm pimm fox. have a good evening. ♪
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