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tv   Street Signs  CNBC  March 24, 2010 2:00pm-3:00pm EDT

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they've kind of gotten out of the trade show business. that's an interesting spot to be in. >> absolutely. tyler and sue, what do you think? >> i'm just jealous that you're there. great to see you. we'll see you again tomorrow, guys. >> tomorrow i get to interview james cameron and vince stone. >> look forward to that. pretty cool. that will do it for "power lunch." "street signs," you can't miss it. it's next. it is 2:00 p.m. on wall street. the market going to the green. adding to the nearly 1,000-point rally over the past couple of months. down about 48 right now. bill gross joins us along with a very special and unusual guest today. meantime, 11:00 a.m. at google headquarters where people are on the ticker tape. what if your name scrolled by in that reception office? because your doctor was researching you and putting that information in your medical file.
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hello and welcome to "street signs." we've quot a great show for you today. as always, we appreciate your spending a little bit of your day with us. i'm erin burnett. we begin with a peek at a guest during the hour. it's an unusual fellow. sort of a guest host. we proudly present the "street signs" mystery market maven. meet lightning, a living, breathing market metaphor. we are down just a bit today. but he's here to navigate the dow's slow crawl to 11,000. oh, he got detoured off his greased lightning launch with lunch. he's not going anywhere fast. maybe we should just leave that shot up for the whole hour. he's a little bit better looking
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than the next guy you're going to see. steve liesman is on the trading floor at jeffreys. >> reporter: and the entire trading floor has turned to watch the tortoise, i want you to know. everybody here at the jeffreys wants to know what that is. one guy said if you put the lettuce by 10,000, that's where the tortoise would go. what i'm here to tell you about is the route in the bond market today. some guys called that five-year auction just an hour ago sloppy. others say ugly. others used more proper language and said very poorly subscribed. the bottom line was that it came out well above the issue it was trading. the ten-year is now having its one biggest day sell-off with the yield rising 13 basis points. we were high as 85 on this. we've come down to 81. so a little bit better than it was. there's the five-year. we've been on the ten-year, as high as $3.85. some guys, erin, saying this is the first shot of the bond market across the bow of the government when it comes to the
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deficits. that's been one reason put out here. sort of like the health care hangover, where the bond market just isn't believing this idea that the health care bill will actually reduce the deficit. erin? >> steve, thank you very much. we appreciate it. and no, we have the lettuce on 11,000 for a reason. because we understand the link between the lettuce and the stock market prognostication. now we've got a song playing, and lightning, that means you need to start moving up past 11,000. look for that next hunk of lettuce. but don't get off-track, lightning. oh, he's looking around. he hears the music. let's bring in the bond king, pimco founder and co-cio bill gross. you know, bill, we will -- we will stoop to anything. >> you know, erin, that lightning must be a bond market turtle, because slow but steady always wins the race.
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>> it certainly seems to be that way these days. you know, it's actually interesting looking at some of the bond returns this year. compared to stocks, they've both been rather tor kois-like. but the stock market, 900 points over the past several weeks. i know you do -- most known for bonds. but do you think equities are going to keep going or overvalued? >> i don't think they're overvalued. i think all assets are related to the same conditions, that being economic growth, the potential for inflation and central bank policies. so to the extent that stocks are now basking, i suppose, in a growth revival, more than green shoots, you know, there's a chance that the stocks keep going. but if the ten-year treasury, as steve mentioned, 3.8%, if that moves higher to 4% or more than that, then that begins to provide competition. and so we have this yin and yang
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and back and forth between asset classes. >> so your investment outlook today was about horses, not tortoises. animals everywhere. rocking horses in particular. what's your metaphor and what does it mean for where you're putting your money at peopleco right now? >> the rocking horse metaphor was really an explanation for the past 25 years. and which markets basically said the markets need more money. the markets need more money. we levered it too much. now we have the de-leferring downcycle in terms of economic growth and asset appreciation. so, you know, what we'd said going forward, not only private investors, but sovereign investors are being forced into a corner in terms of their ability to lever. that speaks to budget deficits such as countries as the united states, then we're going to have some difficulty going forward, and some volatility in markets
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on a daily basis. >> so you write about britain and the uk -- i mean, the u.s. and greece, and where you put your money. earlier when we had spoken, you were preferential to germany. if you had to put money -- i guess i would say, bill, right now what is your biggest location for new money? especially given what we're seeing in the mortgage market, which ostensibly would be the yen of purchases next week. >> well, i think, erin, in terms of a sovereign, that you want a country that can survive an inability to issue more debt. and that would be germany. they have a relatively strong economy. they aren't burdened with an excessive amount of debt. and so the prospects going forward -- >> unless you count greece's. >> yes. but german bonds aren't burdened down by greece, unless they get involved, unless, yes, the eu and through the eu, germany becomes involved in that particular crisis. it looks like they're going to stay away. but in any case, germany,
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canada, the u.s. and the uk are a little more problematic, and that brings up the health care situation, and the $40 trillion worth of present value in terms of entitlements that we have in the united states fl we've just added, in my opinion, another $500 billion in terms of health care. so the markets are beginning to look at that suspicionly. >> the tortoise rally has stopped talking about treasury auctions and appetite for american debt, do you think that's accurate and that appetite is not something to question, at least for now? >> no, i'm concerned. i think they have. i think that's a good observation. and to the extent that rick santelli and it's been true, over the past few weeks and past few months, all auctions have been b-plus or a-minus, with the exception of today. then yes, stock investors have begun to take it for granted that the treasury simply can finance at will. well, you know, we've seen an end now, or will see an end to
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quantitative easing in the next week or two, which means that the fed won't be writing checks, or buying those treasuries. so it will be up to us, it will be up to the market. and therefore, in terms of the stock market, to finance the ongoing deficit, we're just going to have to be a little more cautious than simply ascribing an a-minus or b-plus to a treasury auction. >> the final question then, stocks versus bonds over the next three months? >> oh, i think stocks -- let's suggest that the economy looks good, that risk assets, whether it's high yield bonds or whether it's stocks, have a decent return relative to the potential for declining bond prices. so i'll go with the stock market. how's that? >> you pick stocks. that means you pick lightning. i know paul macaulay may be upset, because he has a lot of hares. >> i haven't noticed if lightning has passed 11,000 yet. >> don't worry. when you go back to your desk, you'll see plenty of lightning. wow, he's plugging along.
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11,500, bill, at this moment. he's crossing over. >> goodness. that's a lot of volatility. >> a lot of people are loving lightning. lightning is chomping at the lettuce to find out what's happening down at the big board. bob pisani, he crossed 11,000. he lived up to his name. >> the tortoise ate my rally today. >> he's a bad omen. >> this is a fine day to have the tortoise on, for heaven's sakes. we're at an important inflection point today, because the data can go either way. let's just do the pluses and minuses for you real quick here. i've been more optimistic in the past month in small incremental things. retail sales better. overall earnings have been better than anticipated. corporate bond market picked up nicely. sendaries in the equity market picked up nicely. a lot of companies have been able to raise money. dividends and buybacks increasing. ipo markets showed a little
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signs of life. the negatives are also present. i agree with bill about sovereign debt. i would put that in the treasury weakness that we saw today. the dollar strength recently also putting pressure on select areas of the stock market. and new and existing home sales, i don't care what they say, expected or not, clearly a disappointment yesterday. in line yesterday, with the existing home sales, not saying much. we need to have a better number, and those jobs reports next week is going to be key. we talked about this earlier. 200,000 is the expectations for march. people go to 300,000. the street's long on the jobs report. we'll see what happens. i mentioned the strong dollar affecting key parts of the stock market. affecting a lot of the materials names, precious metals stocks. look at the gold stocks today. as we've seen dollars throughout the day. gold stocks are getting hit 3%, 4%, 5%. wig gold names. definitely we've got pluses and minuses in the market here. erin, back to you. >> thank you very much, bob.
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time for "street signs" pick and play today. we pick three headlines and a trader gives the play. joining us is craig peckham at jeffreys and company. good to have you with us, craig. we're going to zip through the three headlines. we begin with starbucks. in a vote of confidence for the american consumer for overpriced caffeine, they set their first dividend. what is the play? >> the play here is absolutely starbucks. a stock we like for a lot of reasons. frankly, the cash story at starbucks which facilitates the dividend announced today as well as the buyback is sort of a subheader to the story. what we thinks drives the story is driven not just by top line of the course of 2010, but a margin story which we think still has legs to it. if you look at the broader restaurant sector, starbucks is the single best improvement story. we think that story is going to carry out through the rest of 2010. the stock's a buy right here. >> what about con ohco phillips getting out of russia.
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number one or number two in size in russia. selling half of that stake. and they're going to use the proceeds to do a stock buyback. would this be a buy conocophillips, or they're getting out of a great market and no? >> i go a whole other direction entirely. what this points out to you is the increasingly flush balance sheets we see in corporate america. what we've seen in the recession is the typical s&p 500 company reduce its liabilities by about 8%. what that points up here is increasing opportunities to reallocate cash. what you see here from conoco is a good example of that. look at the energy sector in particular, what we'd expect to see happen here is not just increase buybacks and debt paydowns, but deployment of cash into some of the natural resources in north america. we like some of the shale focuses, like whiting petroleum, also names like newfield exploration. >> so buy whiting and newfield on conoco's move. and then general mills, 15% jump
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in profits and they are boosting their forecast. what's the trade? >> i go another direction there as well. you can't think about general mills. you can't think about cereal without thinking about the supermarket sector. a group that we think has attractive value here with two of the best names in the group, kroeger and safeway trading at about ten times earnings. we think they'll work well as the food manufacturing story and food at home story continues to play out. we see good results in that respect as consumers start to spend more, but spending more of it at home. i think the flip side of that as well is you look at the employment picture beginning to increase over the balance of 2010. we like the way the markets are situated. they've got good operating leverage. >> and there's the play on general mills. craig, thanks so much. we appreciate it. next on the show, a matter of principle. bank of america out with a major new program for borrowers underwater on their homes. it could be a game-changer for the housing market. the first interview with the head of bank of america's mortgage modification program.
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plus, the doctor will see you after he googles you. should your doctor be allowed to google you and use any information they find as part of your health record? is this a prescription for trouble, or a sign of the times? we'll be back along with lightning. natural gas is a cleaner burning fuel, yet a lot of natural gas has impurities like co2 in it. controlled freeze zone is a new technology... being developed by exxonmobil... to remove the co2 from the natural gas... so we can safely store it... where it won't get into the atmosphere. exxonmobil is spending more than 100 million dollars... to build a plant that will demonstrate this process. i'm very optimistic about it... because this technology could be used... to reduce greenhouse gas emissions significantly. ♪
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it is one of the most controversial issues in the troubled mortgage market. principal forgiveness. bank of america made a dramatic announcement. diana olick joins us from washington. diana? >> reporter: that's right, bank of america which you may recall took over 12 million loans from countrywide financial, and is announcing principal writedown program for its most troubled loans. the program is small and targeted for now. but it's a shift from interest rate reduction as a primary modification tool. the government's $75 billion modification program which does not require principal reduction is seeing very lackluster results. so joining us in a first on cnbc interview is chief of foreclosure mitigation at bank of america. first, thanks for joining us. let me ask you, we've been talking about principal reduction now for over a year in the foreclosure crisis. why now, and why only targeted
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at maybe 45,000 of your borrowers? >> why now? we've been talking about principal reductions for a while. but we've been hearing from our customers in trying to find out why they won't accept more of our loan offers, why they won't complete more of the trial modifications we've started. the answer we keep getting back over and over again, although we're making an affordable payment, many customers are severely underwater and are looking for something besides an affordable payment, but they want a chance for home appreciation. this gives a chance to make that possible. >> the 45,000? >> the 45,000 customers, this is our group that is most troubled. our pay option customers, our subprime customers and 2-1 hybrids. the first customer segment to go after is the customers most in need. we're starting with this program. we're going to test it here and hope to expand it in the future. >> you talked with the treasury obviously a lot. you are the largest holder of home loans in america. is the treasury planning on something like this in addition, or as part of its home affordable modification program? >> there's no question the treasury is looking at ideas
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like this. we have been talking with treasury, other large services talking to treasury about services like this for quite some time. i think the treasury is close to deciding whether they want to go forward with a program like this. definitely, they have it on their radar screen. they know they need to do things to try to improve the acceptance rates also. and this is a way that most people believe it might do the most to improve the acceptance rate. >> erin burnett wants to jump in here. >> a couple quick questions for you, sir. diana mentioned the 45,000. is this something you would view as a test? and if it's successful, that you would roll it out to significantly larger number of borrowers? >> we view it as a test from the point of view of it is a roughly small segment, like you say, 45,000. but still a large enough segment to figure out how this will perform. and if we do have the performance we hope, we definitely will consider rolling out to a larger segment. >> i'm curious, is this a really acknowledgement that the housing market isn't getting better as quickly as you would have thought a few months ago, which would, frankly, be in line with
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some of the weak data we got today and yesterday on home sales? >> i think it's more of an acknowledgement that the making homes affordable program acceptance rates haven't been as well as people hoped. so it is going directly at the problem of getting customers both an affordable mortgage, and in a mortgage actually they have interest in staying in the home. >> thank you very much. we appreciate it. i know you're going to continue your conversation with diana. we appreciate it. >> thank you. >> and next on the show, the tortoise rally continuing at lightning speed. oh, my gosh, he's going to have diarrhea. starbucks is up nearly 4,000%. three companies that may be poised for a similar run. lightning will be back.
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getting ready for cramer to come out and meet lightning. a lot of e-mails about lightning already. one, lightning is about 8 to 10
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years old. two, he is a boy. this is, you know, still cable, so we're not ghg to show you. but he is. and three, he goes back every once or two weeks. he hasn't gone in a while. he might luck out. we'll be back with cramer. tdd# 1-800-345-2550 if i could change one thing... tdd# 1-800-345-2550 we'd all get a ton of great advice tdd# 1-800-345-2550 just for being a client. tdd# 1-800-345-2550 i mean, shouldn't i be able to talk about my money tdd# 1-800-345-2550 without it costing me a fortune? tdd# 1-800-345-2550 if i had my way, investment firms would be tdd# 1-800-345-2550 falling all over themselves to help me with my investments. tdd# 1-800-345-2550 (announcer) at schwab investors rule. tdd# 1-800-345-2550 are you ready to rule?
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never had the camera this low. >> no, we haven't. >> jim has a surprise today. come on. now you're scaring me. >> all right. i've got one of these, too. >> what do you mean you've got one of these? >> her name is cactus. she's a little bit bigger. and i will pick cactus against whatever the heck this name is. >> this is lightning. >> cactus is greased lightning compared to lightning. not only that, i will bring -- i've got this at home. i will bring cactus and she, if we put watermelon here, i will tell you, she will just -- she'll be like a hare to this tortoise. >> no. >> lightning has nothing on
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cactus. and i'm telling you, cactus, who, by the way, is a girl, could produce a shocking result in the 72-month gestation period that these things have. >> 72-month gestation period? >> not quite sure about the gestation. >> oh, not quite sure? >> i want to pick cactus against lightning, as long as cactus is allowed to fuel up with watermelon, i'm telling you, this thing doesn't have a chance. >> i don't think they're supposed to eat fruit. i think it causes some bad side effects from what i understand. >> when i pitted cactus against other tortoises -- >> lightning, don't take this. >> lightning would like stop and eat, while cactus will just be zooming to 11,500. this is a bear. this is a bear tortoise. mine is a bull tortoise. and i say look out. >> he just gave you a look. >> look at this. this thing is pathetic. i mean -- >> the gestation period is 63 months. so you've just lost -- 63 what?
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oh, days. so you said 72 months. it's 63 days. this man's credibility on his tortoise race -- >> this is a short seller. mine is like a -- >> shot. >> growth cap guy. >> no, no. >> it took me three years to find out that she was a girl. >> they are amazing. >> i won't tell you how. >> i'm not going to tell you how we learned this was a boy either. >> we're pitting. get ready. you see already, already, backing out of the race. senses real competition. hey, listen -- >> you wanted me to watch my fingers. >> cactus is very sweet. so you don't have to worry about that. cactus has -- has oomph. >> jim -- here's jim -- how you get your tortoise to go to 11,000. >> this is like a real estate investment trust. look, he obviously doesn't know
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how to run. >> he's running. what are you talking about? >> wait until you see cactus in action. cactus is twice as big as this thing. >> there we go. >> a little good speed there. >> he is showing a little bit of good speed. >> we're going to have the race of the century. provided that i starve cactus for three days. >> oh, see? the cheating. the cheating. that's just -- >> i'm not going to use the whip. i'm not using the whip. >> you don't even know the gestation period for cactus. >> cactus is friendly. >> you know what will happen? lightning is a boy. cactus is a girl. 63 days later, you get stuck with the litter. >> "squawk on the street," anything can happen. all right. let's get to some trades here. >> hold it right there. >> bill gross said that he thought that stocks would be bonds for the next three months. >> look at this. not even going to get to the finish line. stocks could beat bonds in the next -- you know, i love bill. i would like to even see bill on vacation, so to speak.
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as much as i love bill, i think he's wrong. i think he's -- look, this is just what's going to happen. >> this isn't happening. is he going to take a bite by any chance? no? okay. >> he's out of bounds. he's finished. >> oh, no! >> i have taught cactus to go straight and narrow. i'm telling you, cactus is like a hot ipo. this thing is like a baltic freight. >> you know, i don't like this. this is a sweet-mannered turtle. cactus is probably a nasty -- >> i bred her like a winner. mine's been bred by nfl quarterbacks. >> i can't believe the strange things we've learned about jim in the years, you have a female cactus that lives in your house, a turtle. >> i race it. but i don't fight it, you know, so to speak. >> because it would get crushed by lightning. give us a couple trades.
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>> we've predicted that max linear would have big moves at the opening. $8.50 target for clax. that one still has room to run. we have maxed out. we said $18.55, you do not want to pay over for that. i have to tell you, also, lenar, they actually raised prices for houses in california. juxtapose that with the bank of america plan, which i'm still trying to get my arms around. if you're one of these people, you really don't know whether the bank of america is going to take it or not. some have questions whether it's a publicity stunt. i think anything that lowers principal is of real value. this thing's going to find 11,500. >> all right. watch. >> if you're going to throw the -- >> sorry. you're going to throw the race by throwing food. >> cactus, cactus. i mean, lightning. >> cactus, don't worry, i'm
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putting a little tabasco on the lettuce. >> i don't care, jim. i found a way to win my turtle's heart. i'm going to get him to come right where he needs to come. >> well, let me just tell you something. >> stay inbounds there, turtle. or tortoise. >> you can't touch. that breaks all the rules. >> i'm not pushing. >> have you ever read the book on tortoise racing? i mean, i wrote it, for heaven's sake. me and a guy named sharm, who did financial engines. let me give you one other trade while you're trying to fix the rate here. >> picking up and moving the turtle? oh, look. he's on the lettuce at 11,500. let's play his music. >> ann darden, all preannounced better and announced even better. that's all consumer, a lot of it is a telegraph that march is going to be quite good. >> you're feeling good? >> the big turn in longhorn, and
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capital grow was kind of amazing for darden. olive garden on fire. they have the unlimited bowl of lettuce. i mean, this thing could -- >> unlimited bowl of lettuce, olive garden? >> keep this thing away from olive gaden for the next quarter. >> a testament to lightning's sweet personality that he has not chosen today as the day to go to the bathroom given what you said about him. >> all i can tell you is -- >> let's queue his music. cactus has no song. >> he won against nobody. wait until he's pitted against maybe -- you know, mine is like that danica. mine is danica. it's a female. >> more of jim on "mad money" at 6:00 and 11:00 eastern. >> cactus will be ready. i have to start cactus for ten days. >> is your doctor allowed to google you? >> he's googling me constantly.
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it's driving me crazy. >> we'll talk about that coming up in just a couple of moments. >> sore loser, look out.
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explosion in smart phones and wireless devices is sending a tidal wave through the air. perhaps the biggest topic at the wireless expo in las vegas. scott cohen is there with a special guest. take it away, scott. >> reporter: erin, it's a huge issue. an issue for all of us when we get calls dropped and everything else. and calls failing, whatever. all of this data, all of these
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new smart phones are increasing the stress on the system. but there is help on the way. we're delighted to have the warrior of the chief technology officer of cisco systems. and you've unveiled something at this show that may not be as flashy as a smart phone, but it's huge. it's a router that's pretty amazing. tell me about it. >> we announced a couple of weeks ago our latest router that's called the crs-3, basically it has targeted the problem that you are describing. if you look at the demand for high-bandwidth applications, big in the consumer space, with smart devices, in the public sector, with new opportunities to transform health care, education, even government, there is a big demand for mobile data. that's going to require for us to have the capacity to drive a lot of traffic through the network. and a new router, basically allows you to do that. it's a big capacity, the
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capacity something like 322 kill i watts per second. what that allows you to do is download every single motion picture ever made in about 12 minutes. >> i love this. another statistic that every man, woman and child in china could make a video call simultaneously with the same router. which is really something. i mean, how many of these -- how much demand do you see? clearly we know that there is this explosion of data, and you can process a lot of it with this router. how big of an area is this for cisco? >> the demand with respect to the amount of traffic that traverses the network, is -- if you think about all of the data that moves on an ip network on a monthly basis, in about a period of about six years, so from 2007 to 2013, we expect to see a nine-fold increase in the amount of traffic. and in the consumer internet space, if you look at the traffic there, 90% of the
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consumer internet traffic in 2013 is going to be video. so there is a big demand that we forecast. and that, by the way, just to address this, the consumer internet traffic and the total amount of data, if you add to it some of the emerging applications, with health care, perhaps, for a doctor to communicate via video to a remote location with a patient, education, universities using video, that's just going to make it that much more of a demand. >> who will buy this equipment? and how has the early response been? are you selling these already? >> sure. we are doing trials with at&t already. they're testing it. this router is targeted to the carrier class, to targeted to help service providers to gain additional bandwidth in their networks as they deploy services, and more revenue-generating services. so that's the sweet spot for this. >> so, what else has to happen? clearly cisco is not going to
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stop with one router. what else has to happen in this area? because there's so much talk about the various things that need to be done to open up bandwidth, open up spectrum. what else has to happen to meet all of this huge demand? >> i think one of the interesting drivers for this is the national broadband plan. i think i really commend what the fcc has done in promoting that. if you think about a lot of applications that i talked about, one of the key essential elements is to have that broadband accessibility. i think the second thing that i truly believe the internet is at a transition point from being just a super information highway, which is what we thought of it to this point, is becoming a platform to changing many things, government even, transportation. we just announced today joint partnership between cisco and the state of colorado to build smart connected cities, which will drive economic and environmental sustainability.
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so a lot of these will mean that industry verticals have to be prepared for new business models. citizens will consume services in a very different way. >> we always think about cisco as a router company, a computer router company. you talk about business models. is cisco's business model changing, adapting? how big of a part of the business is this likely to be? >> truly, i think the network is becoming a platform that has to enable a lot of this capability to become a reality. it used to be all about just data transport, moving small bits of data from point "a" to point "b." we focus the network on two metrics, so how fast and how much information you can move on the network. what is really happening now, is the network is becoming a foundation for many kinds of applications. and how we consume services. which in turn means we have to innovate in the network and the router we talked about is just one example of it. we're actually extending our network to be a borderless
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network platform. >> the chief technology officer of cisco systems. thank you for being with us. >> thanks so much to you, scott. and of course, to the cto of cisco. don't miss an encower presentation of the documentary for those of you interested in tech, who have any interaction with an iphone, planet of the apps tonight at 8:00 eastern here on cnbc. starbucks is now a multibillion dollar company. back in the early 1990s, it was a microcap, only a few analysts paid attention to just a few names out there. then, now they're huge companies and there are similar small guys now who could be the next big blue chip name in the next ten years. joining us is david gentry, of red chip. one of the first companies to actually cover starbucks and nike when they were the little guys. now, of course, they are the goliaths. let's find out the new davids. and david, thank you for being with us. a few names of companies that are small now that very few people know what they do.
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they could be the next starbucks or nike or apple type of company. so let's start with fund talk. >> a china company, $500 million in revenues. they 9,500 retail outlets for mobile phones and equipment. generate about $20 million in income. growing its top line in about 23% annually. and its bottom line, about the same. so companies new to the u.s. markets, we believe that this company's got a very bright future. we'll continue to see very strong top-end, bottom-line growth. >> who do they compete with? they actually make phones, so they compete with -- >> no, they're actually a retail outlet. >> oh, a store, okay. >> a retail store. about 9,500 retail outlets. they've got about 446 of their own stores operating in about 16 provinces and 80 cities in china. >> do you think the story is just that it's going to keep
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glowing in china or it could come to the united states and compete with, like i guess a radio shack? >> no, i think this is a china play. i think this company will leverage the growth in china in the growth -- consumer spending in china. obviously, you know, it's the largest market for cell phones in the world. and so i think you'll continue to see good strong growth from this company. >> interesting that you're saying the next nikes and starbucks, those kind of companies aren't going to come out of the u.s. but come out of china. not just fun talking another one of your names, llen energy, what would it be? >> well, l&l energy, this is a coal company, 60 million ounces of reserves, coal reserves. investors could have bought this stock at $1 about 15 months ago. today it's trading at about $9.50, with a high of $10.50.
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but they're a coal producer. and again, grew revenues last year of over 200%. and grew their net income up by 130%. so, you know, their competition would be in china, the large state-owned coal companies. >> all right. thank you very much, david gentry. we appreciate it. >> thank you. and next on the show, you google your doctor, so should your doctor be able to google you? that debate next. what's on the s of independent investors? let's ask. when you're trading a stock, every penny counts. i hate when the trade is done and you find out you paid more than the quote price. i want it at the price i expect... or better. td ameritrade's unique trading platform uses multiple market centers to help you find the best possible price.
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we have all heard stories about someone who was perhaps fired or didn't get hired because of a provocative facebook page or pictures of them doing something illegal per se. how would you feel if your doctor plugged into google to find out more about you. the harvard review of psychiatry says more and more doctors are doing that.
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so it is a violation of privacy or a logical next step in the digital revolution. angie is head of a website that helps service provides including doctors find something if you posted something bad to contact you. and you can't character assassina assassinate. and dr. peele is with us from the privacy foundation. dr. peele, why would having your doctor google you be wrong? >> that is not the way to establish trust in a relationship. you know, at the very least, if a physician is going to go do something like that, they ought to ask the patient's permission, because most people still think that social media are just for their friends and the people that they want to know them. i mean, the public is getting more sophisticated about this, but you know, if a doctor wants to establish a relationship with somebody, they should talk to them. they should ask them questions. they shouldn't cyber-snoop.
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>> angie hicks, what is your point of view on this? i hear dr. peel's point that people still think that the internet is private, but it isn't. everything you put on there, you have to realize that everybody can see. >> absolutely. it is a public relp. i believe in the relationship between the doctor and patient is built on trust, but also built on good information. if a doctor can get relevant information, i don't know if tl is any difference between that happening or before the internet existed when we were -- doctors learned about their patients outside of the office even before the internet, whether they had mutual friends or something like that, and this is nothing really new. it was happening, but now it is online. >> dr. peel -- >> no, no. >> let's throw something out here which is one situation that could happen and get your point of view. so, say you had a patient and you had not googled them before and they said something strange and they said i am curious to
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find something about them. and you find they put things on the facebook that is slitting their wrists or makes you think they are suicidal and you can help them more. am i making a situation that would justify using google? >> no. absolutely not. if the patient doesn't trust their mental health professional enough to talk to them about those things, snooping on them, you know, isn't going to improve their trust or your ability to help them. aim a m i am a mental health provider and i'm a board certified psychiatrist and freudian psychoanalyst. there is definitely something wrong with physicians are trying to find out about their patients in ways like that rather than sitting with them, talking to them and truly showing interest in go in getting to know them. >> angie, what is your response to that? >> well, the situation you outlined is similar to if you were overhearing a patient talk
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across the room who was suggesting they might commit suicide, i think that the doctor would step in, in that situation. >> it does not work like that. that is not how it goes. >> things like this happen, and the goal here is to get more information into the realm of the doctors and the patients to share more and find doctors they really do trust so they can get better and deeper conversations while they are actually in the office. >> dr. peel? >> that is not how you build trust snooping on people. it simply isn't. instead of disrespecting people and their autonomy, the way to get the best information is by working with that person and at least, if you are going to do that ask permission, but know that doctors typically never before the internet gathered information about people socially or through mutual friends. i mean, that is not how it works. it is really important to take the person where they are and with what they share with you and build the trust so that you
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hear these deeper things. >> dr. peel, what about if someone is a pathological liar and they could be hurting others. i understand you have to have rules and hippocratic rules and things that people understand the relationship of trust, but there always seems to be gray areas. >> that pathological liars frankly are very, very rare. that is just not a diagnosable or treatable condition. pathological liars are not likely to seek help from mental health professionals. people who come to seek our help want help and they are hurting, and if you will, they are ready to talk and want to talk. and so, these situations are simply not like reality that are being suggested. this is just not how effective treatment unfolds. people who want help and seek it come and if they trust you, they tell you far deeper things than they would ever post or ever even talk to their friends or closest loved ones about.
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>> quickly before we go, final word to you, angie, what about in a situation where someone has lived in one place for a long time and switching to a new doctor and we know that medical records don't switch over, so what is your view? >> well, obviously, the medical records would not switch over and that where you have to go to develop a new relationship with a new doctor and chance for you to share a lot more information, but also, looking online, a lot of you would find a doctor you will feel comfortable with, because the end-gel heoal is to a doctor that the patient is comfortable with so they are sharing really good information with one another. >> thank you both. we appreciate the thoughtful conversation. so let us know what you think at street signs@cnbc.com. and next, he is not so little, but we like him, and feel friendly with old lightning, and he will be back and we will leave you with trend tracker. national car rental? that's my choice.
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