that influencing the market. >> yeah. well, we'll see. market's still waiting. >> waiting. waiting. waiting. >> like waiting for your dinner at a greek restaurant. >> that will do it for "power lunch." "street signs" begins right now. no doubt tyler tapping into the ooze tonight, but while he does that, welcome to "street signs." i'm brian sullivan. here come the bulls. a strong triple digit rally on the street. data out of china. this talk out of europe. and in america talking about manufacturing not running out of gas. bill gross is on tap with what he is finding value right now. consumers complaining in the confidence surveys, but that's not stopping them from dining out. restaurants are on a roll. is the weather to blame in a good way? and we face the facebook facts from "street signs." the numbers that you need to know before you think about friending the fb when it goes public. mandy. >> okay.

i'm mandy drury. hello everybody. this is what else we're watching at this hour. bankrupt american airlines is aiming to save more than a quarter billion a year in current employee costs. chrysler meantime reporting a 44% jump in january over sales a year ago. ford sales up 7.4%. gm with a 6.1% drop. and eu regulators officially blocked the plan, nyse and deutsche bank merger. nyse will focus on stand alone strategy. brian. >> before we get to facebook, let's find out what one of the world's most well-known investors likes in this market. sorry. pimco out with latest investment outlook hitting on everything from fear to the fed to philosophy. let's bring in bill gross, co-chief investment officer and co-founder of pimco who by the way you are more philosophical, bill, than normal. virginia wolf and es so teric references. >> well, i was.

i'm a grandfather for the first time, so we're bringing someone into the world. >> congratulations on that. >> my beloved brother-in-law a few weeks ago to pan krk rattic cancer. you still have a job to do. >> thank you. >> you have a lot of money sitting out there. investors want return. where do you find it then? get as philosophical as you were. >> it's hard these days, brian, because the fed has told us they'll keep policy rates at 25 basis points until the end of 2014. and that's produced 2-year treasury rates at 50 basis points. becomes difficult to get any type of return at all. it's what we call zero bound interest rates. and it produces a lot of interesting effects in terms of the economy. it slows the economy down and produces lots of interesting effects in terms of asset prices

themselves. to your question, you know, what do you find that's attractive? we would suggest that mortgages, agency mortgages, they yield 2% to 3%. is that a great deal? well, it's safe. it's not such a great return. and that's the point as we approach the zero-bound in terms of interest rates. we'd also suggest that munis and tips, inflation protected securities, perhaps we can talk about that, are among our list of favorite asset classes. >> indeed. i believe you said zero bound money may kill as opposed to create credit. essentially ruling out the very goal designed to have. >> yeah. i think so, mandy. and this is a new type of theory. you know, the fed and central banks basically have always operated under the assumption that the lower interest rates grow the more that asset prices are stimulated. when you get down to the zero-bound, certainly in the bond market, it's obvious bond prices can't go much higher and that ultimately reflects in terms of equity prices and other

assets in our opinion. so, yeah, it becomes a very difficult proposition. and it destroys that certain business model such as money market funds and banks and retail branching and those types of business networks. >> yeah. do you think ben bernanke has ever heard of an island nation known as japan? >> well, yes. ben bernanke certainly has studied japan. and i think he knows, you know, certainly from what has happened over the past decade and what happened during the deflationary years here in the united states in the 1930s, you know, that when you approach the zero-bound in terms of interest rates that strange things happen. i think he's trying to do as best he can in terms of fighting that, but nonetheless when you get down close to zero, there's not much further to go. not just in terms of yield on the downside, but prices on the upside. >> when you say the best he can, what kind of score would you give him ten out of ten? >> oh, i'd give him a nine, mandy. i mean, he's gone through the qs. he's done the twist.

he's communicated that policy rates are going to stay stable for the next two or three years. and, you know, perhaps there's a quantitative easing down the road as well over the next few months. you know, he's elevated stock prices from very low levels. he's produced an economy that's 2% to 3% in terms of real growth. but you can't really go much further than that. i think he's being frustrated from this point because he simply can't drop interest rates any lower than zero. >> to your point about further quantitative easing, yesterday we had scott from guggenheim on the show saying there's a possibility in q-3 this year for qe-3. do you agree with that? >> i think so. the treasury is issuing 1.25 trillion to $1.5 trillion in debt. and at some point retail investors and pimcos of the world will be up to here. treasuries we have about 30% right now. at some point it's up to the fed. it's up to the ecb basically to

buy their own sovereign debt. and that's what they call quantitative easing. >> but, bill, a lot of people would have thought we've already been up to here, right? i mean, who would have thought we could have got to this level of treasury availability and still have the kind of bid-to-cover ratios in the auction. so where is that level? >> i think the fed basically has to buy it. and i think they know it. i think when the twist ends in june that basically they start writing checks again. i mean, one of the reasons, brian, for the twist was that they didn't have to expand the balance sheet there. the private sector basically do it. but at the end of june there's still going to be $1.25 trillion annually offering for sale. it's going to be the fed and central banks that do it perhaps for a long, long time. >> i mean, to follow-up on what brian was saying about when is it just too much, there would be other people saying we just don't need further stimulus when it does seem that the economy does seem to be at least according to recent data on a better footing all by itself. what is your prediction in terms

of economy? where do you see jobs going? what do you see the outcome being in an election year? >> well, i think, mandy, that the economy's doing all right. we've seen a decent growth rate i guess in the fourth quarter, but it was really weak in nominal terms and final demand. what the fed wants is a 4% to 5% nominal gdp growth. i think in order to do that they've got to continue to buy bonds, you know, for the next 12, 24, 36 months. >> you didn't answer mandy's last question, bill. who do you think's going to win the presidency? romney, obama or somebody else? >> we don't get involved in the politics. we'll stand aside and observe and then hopefully buy the right assets based upon the outcome. >> you bet it's one of those two, obama, romney. would you bet on the third person? >> i would say that's a decent bet. >> who would be the better outcome in terms of your strategy? >> i'm a little ron paulish there, mandy. you know, to take a political

slant. i think both parties basically have done the same thing. and they would complain relative to each other, but both parties basically, you know, have followed a policy that hasn't promoted long-term investment in the united states. and i think ultimately we need to produce things as opposed to paper and policies whether romney's or obama's have to be directed in that specific area. >> but he will say duke will win the ncaa playoffs. that's my guess. thanks. >> always good to have you on our show, bill. >> thank you very much. >> more now from ceo of op vest wolf management and our own rick santelli. andre, we heard a moment ago, bill gross says there's very likely to be further quantitative easing this year. you are looking at potential qe-3, 4 or maybe 5 surely to brian's point we have just had enough of all of this. >> we've had enough of it, but unfortunately that's the path we continue to go down. look at bernanke, he started on a certain path and trying to keep interest rates low for the

simple reason that if people can't get money in their savings and savers are punished, they have to go elsewhere to find it and they have to go into the stock market. they have to go into investing. what he's doing is pushing people into the stock market. and obviously you've seen that rise in the stock market. it's just troublesome because at what point does it end? how long are we going to keep these interest rates at zero? how are we going to get this p/e expansion that we really need to have a true bullish cycle? i think those are some of the important questions. >> they are important questions. people as you say being pushed into the stock market, how much will that push the stock market up this year? >> you know, i think that right now there's optimism in the stock market. you can see it's nearing those 2011 highs. we have a huge level of resistance here. i think this is a point where people will take money off the table or protecting that. remember, at the end of the day it's a popularity contest and you want to buy low and sell high. when the market gets a little overheated, maybe it's time to protect that. but i could see the market going up another 10% in this first

quarter. but then after that you're facing a lot of headwinds, a lot of issues out of europe obviously with their expanding yields. and if you look at the yields in the peripheral nations new debt exceeding what they can afford to pay, so we might be in trouble from europe. as these headwinds come in, i think you're going to have a pullback. >> you heard me ask bill about japan in a back handed way. if cheap money and easing and cheap credit aren't contributing to asset prices directly, the nikkei would be at $6 billion, right? what can we learn from the lessons of japan? it's not just going to inflate. >> plus, in certain ways you could say japan's better off and better off during the last 12 years because their unemployment rate is about half of what ours is. they're about 4.5%, well, we've come down supposedly. but, you know, the question in bill's piece and i really

enjoyed it, he's a heck of a writer, down here it's a ritual at the beginning of every month, but who's afraid of virginia wolf, i'll ask a better question after reading this, who's afraid of the al chemist, i am. i'll tell you what, to think central banks are playing al kamy trying to spin straw back into gold that was lost by society because that same central bank and all the regulator allowed things like no dock loans, all the things asleep at the switch, i don't know, maybe they have their leeches out, but i'm not confident in that. and after reading bill's piece, it doesn't sound like he's too confident when you're talking about experimentation or trying to relate life after death to what the central banks are doing, but i will leave you with one thought, i think pimco is better off in that world than many individuals on main street. there isn't a business that will thrive more with all of these easy money. >> rick santelli, always a man with something to say. and to andre, thank you very much as well. we have breaking news now. let's get to philip lebeau.

phil. >> mandy, we now have some greater details regarding the proposed job cuts from american airlines. remember we reported earlier today they're going to cut 10,000 to 15,000 jobs, at least that's the plan. it now totals 13,000. nbc news has learned from a source close to the airline that the breakdown goes like this. of that 13,000, 1,400 from management and staff, 400 on the pilot side, 2,300 flight attendants, maintenance and repair 4,600, a lot will be outsourcing. fleet service and other transportation workers 4,200. still making a decision regarding agents and representatives for the airline. again, guys, 13,000, brian, that's at least the initial proposal. understand this has to go through bankruptcy court. a lot can change over time but that's the proposal at this point. >> what percentage of the total work force would that be? >> you have about 87,000 there of that is union work force. so take the 87,000 and cut about 13,000, you're looking at about,

what, 17%, 18%, that's just rough math when i'm thinking about things. >> phil, thank you very much for bringing that to us. >> now to the latest obsession on the street. facebook, no doubt this will be a monster ipo even with expectations small percentage of the company sold to customers. earlier today i had sort of a tongue-in-cheek tweet. we went from sort of the coffee house pub hang out with the lads, have a pint now and then. then we kind of have aol prodigy on the bulletin board, friend ster, remember that? me either. myspace, remember that? now facebook, twitter, i kind of put them separate. is twitter the new facebook, can they exist together? i don't know. the point is we're evolving. is there another evolution? that got me thinking to what are the risks to facebook not just the company but to the stock if and when it does come out. i want to look at some valuation numbers.

we've heard $75 billion to $100 billion number for facebook. let's say facebook is at the low end. $75 billion once they go public and scale up for the stock. look at these valuation numbers, all right. google's doing about $38 billion in annual revenue, market cap $189 billion. i threw cbs in there for a reason, bear with me on this $14 billion in revenue $19 billion in market cap. aol doing more in revenue than its market cap suggests. $2.2 billion in revenue, in terms of market cap, facebook, reuters coming out with the story $1.2 billion. but look at the 32 to 75 to 100, does that match up with any other numbers? we'll talk about that. growth rate, 800 million active users around the world. 80% outside the u.s. you have about 160 million of those in the u.s. but here's the issue, how much growth is left there, right? there's 300 million americans, a lot are too young or too old to get on facebook or don't have

internet or whatever it is. 160 million, that's not a lot left outside the u.s. two and five people living in abject poverty or don't have internet acce access, you wonder where the growth rates will come from. and then competition. i know, herb, you have 75 million followers on google plus. i don't know what it is. twitter, right, is that a competitor, is it sort of the same, is it the new facebook? i don't know. is there something else? the point is, guys, you have valuations that seem out of whack potentially, we have to wait and see what happens, with the other internet companies you got this. where's the growth? it's already there. you're just paying for the growth that's existed. and i brought up tv for a reason. before we get to our street poll, i want to just share this. is that when you look at how much time we spend on anything, we spend 8.5 hours a day watching television. we spend eight hours a month on facebook. used by a lot of people for a long time, but tv's really the answer. street poll was this, would you buy shares of facebook?

go to facebook.com/cnbc to vote yes or no. you can like our facebook page while you're there. if you don't have facebook -- >> well. >> i had another website but i can't say it and i'm not losing the bet. >> the rumor has the mom and pops, the ones that get left out apparently as a mark of good will a thank you towards the people that made facebook a success. you're shaking your head. >> i want to say one thing. i know we're tight on time. brian, that was actually an exceptionally great analysis of some of the concerns out there. i will say that there are a lot of people out there wedbush's private share group just had a conference call on this. they're looking at it telling people they're looking at the opportunity here. >> we'll have more on facebook in just a second. in the meantime pol pore international on the rebound today. news one of its customers announced it will produce

specialty chemicals in house. it was a viewer who brought this to our attention in a tweet. well, who and what is the company? it makes specialty chemicals for lithium and acid batteries. there you go. all right. the bull case and the bear case on ppo. let's bring in senior research analyst at da davidson who downgraded that stock to neutral yesterday. and senior analyst at needham who reiterated his strong buy on the company. a very diverse opinions there. i want to start with you first of all, you even had concerns before this lg chemical news. what were they? >> we were getting a little bit concerned about some of the business that is more on the legacy side of the polypore business, which is more net acid and we've been hearing concerns regarding slowdown in china primarily because of regulatory issues. and also an extremely mild winter. typically these things lead to some slowdown in the demand on

the led acid side of the company's business which happens to be 45% overall revenues. that was a concern we had prior to this lg keli mcgregchem anno >> going to build a factory to become a competitor at least in certain parts of the market. you upgraded the stock. why aren't you concerned about the news? >> i reit traerated the strong on this stock -- >> reiterated. my apologies. >> there was a lack of information out yesterday. lg announced manufacturing own separator from internal usage the concern would be making this for use for electric cars which is the big growth opportunity for polypore. since then we spoke to a representative and they said it's for the consumer electronics business. that's where they have maybe about 3% to 5% revenue exposure over the long-term. >> uh-huh.

in other words you see that drop in the stock as an opportunity to buy it? >> yeah. and it's come back today. >> let me point something out here, michael, you have a $79 price target on the stock. and you have a $45 price target on the stock. gordon johnson put a sell on the stock a day before you did has a $26 target on the stock. that's a huge disconnect. i talked to gordon today and he said why did management the private equity group took them public liquidate close to 100% of holdings over the month. what do you think of the disconnect? >> do you want me to answer that? >> go ahead. >> in fact, if you look at the numbers we put out after this announcement, our numbers for 2011 and '12 did not change at all. so we understand that if at all lg was trying to do something in this regard, it is going to take them some time, in fact, quite a bit of time to catch up in terms of technology and years to start competing with polypore's

products. the big concern we have is more on the valuation side. i was looking at the valuation over the first half of 2011. and what we observed given the growth profile this company has had they've enjoyed a 35 p/e multiple in the past. those multiples may be coming down, not just numbers. >> thank you very much for your thoughts. bull and bear debate. coming up on the show, remember this just one year ago? what a difference a year makes. wildly warm temperatures across the board, and it has investors warming up to one sector in particular. >> and be afraid, be very afraid, because monster worldwide mauled down 20% this week. herb's been warning you about this one for a while now. he says there's more pain to come. he'll tell you why straight ahead. at it put me at 5-times greater risk of a stroke. i was worried. i worried about my wife, and my family.

bill has the most common type of atrial fibrillation, or afib. it's not caused by a heart valve problem. he was taking warfarin, but i've put him on pradaxa instead. in a clinical trial, pradaxa 150 mgs reduced stroke risk 35% more than warfarin without the need for regular blood tests. i sure was glad to hear that. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding, and seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition like stomach ulcers, or take aspirin, nsaids, or bloodthinners, or if you have kidney problems, especially if you take certain medicines. tell your doctor about all medicines you take, any planned medical or dental procedures, and don't stop taking pradaxa without your doctor's approval, as stopping may increase your stroke risk. other side effects include indigestion, stomach pain, upset, or burning. pradaxa is progress. if you have afib not caused by a heart valve problem, ask your doctor if you can reduce your risk of stroke with pradaxa.

so -- tell me again what happened. i was downstairs making coffee, and we heard it. it just came crashing through the roof, out of nowhere. what is it? it's our ira.

any idea what coulda caused this? maybe. i just sorta threw a little money here, a little money there. and i loaded up on something my dentist told me was hot. yeah. ♪ let's dig into the market. internals good day. 2500 ten stocks advancing, decliners 457 unchanged, 99 on the nasdaq, a similar ratio there. let's move along. some of the highs and lows of the new york stock exchange, highs 272 to 10. and my prediction that will be the final score of the super bowl. new york giants 113, new england

patriots, 7. you can bank on that. or not. >> or not. herb has natural gas on his mind. >> we have to ram through these but i wanted to get to monster first. we've been telling you i always thought social media would do to monster what monster did to newspapers. monster had a terrible quarter a week or two ago. oppenheimer out today with a mea culpa and stepped to the sidelines. deutsche bank really effectively said going from bad to getting worse. they said to slow down at monster is worse than its peers, it's decelerating faster than its peers. guidance says there's no light at the end of the tunnel. we did hear from monster today, we reached out to them, they said they're confident with the successful execution of its strategies can it drive results for share how olders and customers alike. and this is just one of those things, navi star comes out this

morning and guides down on eps for the year. and the stock is up. why is that? the same time they came out with another press release saying they signed a deal with boone pickens for nav. this to me is just so classic. because the bad news is sort of missed out. they have an analyst day today. i would also just say keep an eye on ortiz. talked to people in the trucking industry, they've had a lot of repairs going on. when the company reports on february 22nd, be interesting to look at the warrantee costs. and just for the fun of it, keep an eye on lab corp and quest diagnostics. our own hampton pears reporting republicans don't want people getting unemployment benefits to submit to drug testing before they get their checks. we know that ain't going to happen. >> why not? you've got companies that make you get drug tested before they hire you. >> can you imagine the nightmare of the cost associated to that? [ overlapping speakers ]

>> by the way -- >> ziploc bag sales would soar. >> promoted by a guy been a promoter a long time -- >> he's back? this is like the 14-year-old kid caught goosing it. >> he's not 14 anymore. i reached out to him, they're back with the promote saying tying it to facebook somehow. stock is up. this is one of those classics. and you, brian sullivan, how many times did you call broad vision? >> i made a number of phone calls. the british woman on the voice mail system is very nice sounding. i sent a couple e-mails to them and never heard back. >> there you go. >> we are the worldwide leader in business news, broad vision, bad job. couple calls, couple e-mails. >> there you go. >> i couldn't even make it through the voice mail system. it was like this infinite loop, like apple's address, going around and around. >> coming up next on "street

signs," where is all the volume? we're going to head to the floor to find out. >> and americans are heading south to retire. we're not talking about florida. the surprising spots that they're picking. >> and also a quick reminder to vote in our facebook poll. you can go to facebook.com/cnbc. like the page if you haven't already, and you can vote, would you buy shares of facebook? yes or no. very simple. the results and your comments later in the show. also tomorrow i will be live from tdameri trade. i'm not going to be in a bikini. i'm going to be talking to the ceo and also wharton school. [ male announcer ] how do you trade?

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[ male announcer ] with stamps.com, you can print real u.s. postage for all your letters and packages. it gives you the exact amount of postage you need the instant you need it. can you print only stamps? no. first class. priority mail. certified. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. welcome back to "street signs." let's catch up on the big headlines we're talking about in our street talk. you've got the markets rallying and dow closing in on highs from may 2011. and also the nasdaq is already blowing through its 2011 highs. where is the volume? we're going to find out in just a minute's time. biotech is really booming. surging as much as 2 2% on positive data. helps men with that cancer live longer. and also restaurant stocks, they're booming thanks in part

to a super mild winter. it's like spring out there. the national restaurant association says december dining levels were the highest in six years. well, of course we're going to talk about fine dining in just a minute. first of all i want to go to the floor of the nyse because everyone's saying where is the volume? how much are people saying to you, bob, what's happening with my desk? it's just dead. >> it stinks. i went out with a big trading desk last night and they said our desk is dead. where is the volume? put up the numbers here. in january we had this year 3.7 billion shares averaged daily volume on the consolidated all trading on average on nyse stocks. in 2011 they did 4.6 billion in january. that's 18% lower in january 2012 compared to january 2011. and take a look here at the chart of what was going on. we saw weakness, we saw big spike in the middle of the year in august with a huge volume. but look at those numbers there. those two circles. january and january.

january's supposed to be a strong month for volume. and this one turned out to be lousy. you know the reasons, mandy. i'll put them up for you again here. uncertainty and fear is the number one i keep getting. less prop tradings out there and lower volatility. that means the high frequency traders trade less because low volatility gives them less opportunity to make money. it all makes sense, but it makes for a lot of misery on trading desks. >> i'm sure it does. thanks very much, bob. sometimes investing is about making bold calls. so let's highlight some stocks that are moving big time in 2012. you've got for example seagate technology up 57% year-to-date. mantowoc up. netflix 77%. can you believe that? whirlpool again another big mover today up 33% year-to-date. >> guys, before we hit the street talk, number three about the restaurants booming, we have to get back to philip lebeau with more news on american.

>> we have learned that american airlines does plan to drop all four of its employee pension plans, which means that those plans would then be thrown on to the shoulders of the pbgc. and what's interesting here is that the pbgc estimates that the american pension plan has assets of $8.3 billion and needs to cover $18.5 billion in benefits. so as you can imagine, this is yet another case where the pbgc, which is already under a lot of stress, guys, will be asked to cover more pensions for more employees. again, american planning to dump its four employee pensions. they will be replaced by 401k plans, again, if this is approved by bankruptcy court. >> pbgc will have to wait to see who's going to fund that one down the road. >> yeah. they're already underfunded. >> yeah. bailouts and bailouts. phil, thank you. i want to get back to the restaurant stocks. mandy hit on them. during this very warm winter -- what winter. >> it's not wint sgler parent

company of apple bees up 14%. gourmet burgers up as well. senior analyst at morgan keegan joining us now. is it just the weather? more people going to apple bee's because it's temperate. >> i think with dining specifically the stock was beat upcoming into the end of the year. so as people have gotten more comfortable with the sales visibility, that's given more confidence to the story. so you've seen it kind of normalize somewhat, plus, with the thought that maybe trends could be a little better than expected has helped add some fuel to the run. >> and of course as we move into real spring, they can't keep on saying it's due to the nice weather that people are dining out at our restaurants. so moving forward places like dine equity, red robin, et cetera, what do they have going for them in an environment where commodity costs are on the rise, inflation therefore something these companies will have to eat. >> sure. the stories are a little different. dine equity is primarily a

franchised business. they are more hedged or they don't see the direct impact of the higher commodities. and so from that standpoint a heavily franchised story is a little more attractive. and on the red robin side they also experienced some pretty high costs in 2011. so the year over year difference may not be as significant. they've got some menu initiate i i initiativ initiatives. >> you have an outperform. red robin market perform $27. thank you very much for joining us desin. >> thank you. >> just ahead on "street signs," forget florida. americans are moving way further south for retirement. we're going to have the top three destinations outside of america coming up. >> and we're not actually talking about australia, folks. now we have a rally. the dow pushing for its best close in ten months. and the nasdaq not far off its best close in ten years. "street signs" is all over this market. do not go away.

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it is time now for your retirement equation. and some of the headlines that could impact your plans. well, americans, they're

slashing debt faster than any other country. a new report shows that u.s. household debt has dropped by $584 billion since the start of the financial crisis. now, looking ahead to friday, we've got the labor department out with its monthly jobs report. the mother of all reports, economists are looking for an increase of 125,000 jobs. also, more americans are heading south of the border for retirement. international living reports a growing number of u.s. retirees are settling down in countries like panama, mexico and ecuador. what is driving our retirees south of the border? let's bring in executive editor of international living. what are your findings, jennifer, and why those countries? >> you know, so many people are feeling pinched in the states, but if you look beyond our borders in places like ecuador, panama, mexico, you find just amazing value. the quality of life that you might spend $20,000 on in the states you could get for $2,000 in those places. it's not just that they're

cheap, they're cheap and they're comfortable. and it gets a way to trade up in retirement, essentially. >> i think there was a very interesting thing that you're launching and that is that you're asking americans or canadians to actually go live in ecuador as a retiree for a month all expenses paid. that includes the round trip air fare as well. what kind of demand would you expect to see for that and why are you doing that? >> i think we're going to see hundreds if not thousands of people interested in doing this. the idea is that we think the best way for us to show our readers what life as a retiree in another country is really like is to bring them stories from people who are living there who are already doing it. we do that every month in "international living." we wanted this time to sort of offer somebody an opportunity to go take it for a test drive. we know that our readers are interested in trying it out. trying to see if this is going to be for them or not. of course it's not for everybody. >> i tell you what, if i was a retiree, i would do it. >> yeah. >> sounds like a great proposition.

>> i think so. it's going to be great. the idea isn't that it's a vacation, the idea is that they go and report back. you know, tell us what it's like. what do you like? what's frustrating? is it as cheap as we say it is? and so that's what we're hoping to do. i think we're going to find a lot of people -- you know, we have more than 500,000 readers of our -- on our e-letter. so we know there's a big demand out there for this information. we're hoping there's a good candidate out there. >> i'm sure there are plenty. and they might be even watching "street signs" right now. jennifer, thank you so much. >> my pleasure. >> still ahead, another reason why aussies rule, yes, we do. another reason. there are plenty of them out there. >> we'll give you the other reason. and we've been asking all of you if you'd buy shares of facebook. forget about you don't know the price or whatever, would you buy it because you love it that much? we have your answers and the take from the man behind the first ever social media etf. a lot more to do on f-book.

we have been asking you, the viewer or listener if you're on sirius xm satellite radio, to vote in our poll.

facebook.com/cnbc. our question, would you buy shares of facebook? yes or no? here are the results. >> 56% said yes. 44% said no. and here are a couple of comments on the poll as well. larry writes, yes, another google in the makings stockwise. ten years it will be up 500%. but jason disagrees. he writes they -- facebook, don't have the revenue stream to support the valuation. everyone loves and uses facebook because it's free. how are they going to make money? all good points. >> bingo. jason goes onto say, please don't say advertising because they can't generate enough ad revenue to support that market cap. ad revenue's a big deal, but ask yahoo! if people just looking at your websites translate into huge growth. >> yeah. >> just ask yahoo! >> we're going to ask some questions like that in just a second. in the mean do you want to invest in social media? there's an etf out there that tracks social media stocks.

and since the facebook ipo news on friday, socl, is up over 7%. joining us now is ceo of global x funds. the man behind the social media etf. it's great to have you on the show. i guess you're pretty pleased about this facebook news, but also very much expected as well. >> we certainly expected it. it's great news that it's confirmed it's coming to market. when you have a fund invest in the social media companies in the world, you want the company that has the most number of users to be included in the fund. >> what do you think it will do for your etf? >> well, it's already clearly created a pop in the valuation of social media companies. the companies up a little bit since the news was announced. what's doing is a couple things putting into focus. valuations of multiples of those companies and bringing attention -- >> when i look at the makeup of your etf, i see green. which is sort of a platform building company from japan.

you see chinese companies. how does a facebook ipo benefit the holdings which are largely international in your etf? >> well, there's a couple of ways in which they benefit. the main one, if you think about for instance facebook 800 million users -- over 800 million users, they don't have a presence in china, which is probably currently the largest presence -- >> nor do we know if they ever will. herb always says the facebook of china. >> if they do, it will be very watered down and censored. >> right. you have 50 million users most of them in china and you start to see a lot of cross pollination between companies that are not in china. so we can see that with facebook as well. >> as we've seen with all of these, we don't know if we're in a bubble of valuations so we see this pop because of something new to come. when do you get facebook shares where do they go in terms of the listings in the front? right now attention at the top chinese company. where does this one go? >> it depends on the ultimate

valuation, but at the $75 billion to $100 billion range about 5% float will probably be, you know, a top holding. certainly amongst the top holdings of the etf. >> back to what brian was saying a lot of your holdings being international, particularly chinese, right? >> uh-huh. >> last time we spoke back at the stock exchange a few months ago i addressed with you the whole accounting issue, right? >> right. >> you said you don't have any concerns these are well-regulated companies, do you still stick with that? >> i do. 650 million users, it's currently before this ipo currently it's the third largest internet company in the world. so, you know, a lot of them are crossed into the u.s. you have a lot of regulators in places like hong kong, china and the u.s. looking after these companies. >> thank you very much for joining us. >> thanks for having me. >> so if facebook goes public and gets that $75 billion to $100 billion valuation everybody talks about, are we valuing

facebook beyond where it deserves to be? joining us is managing part of ecovc partners. probably completely hosed your name. my apologies. thanks a lot, mandy, for laughing at my misfortune. i'm going to start off with you. he's a good sport, unlike my co-host here. i don't know if you priced at the top of the show, walk through some of the numbers look at 3.2 billion versus google, seems like this is going to be horrifically mispriced to the upside. >> i'll tell you right off the bat most folks don't really understand the upside for facebook. right now my estimate facebook comes into an s-1 either having just crossed a billion users or very close to doing that. what else we're looking at is you have the possibility of international growth. if i recall correctly, there should be about 2 billion or 3

billion people coming online for the first time between now and 2015. they're coming to meet facebook which is a representation of the social graph which happens both digital world. for them, that's going to be the most important way of getting information, of sharing content, syndicating content and interacting with friends, both near and far. >> we've been through many cycles here. why do you think facebook is going to have both growth and longevity? >> i think first of all, facebook is really scratching the surface of what's possible. what we've seen right now is facebook, everybody talks about advertising. advertising really bifurcates. it's the opportunity to drive cluster based market. transition from advertising to cluster based marketing. the ad transport and ad channel, you don't see that a lot in other platforms.

it's not like i don't believe there's any other platform that is allowed to do that. everyone wants to google. >> this is herb. you and i were talking offline. i was talking to jeff matthews, he says the facebook's target marketing is remarkable, the results from it. you tell me you have a marketing company in your vc portfolio that actually does this. you had fascinating figures in terms of this direct target marketing they have. explain it to me. >> absolutely. i am a director of a company called graph science. this company, the original thesis was, as i told to you, herb, i had tried to invest in facebook twice over the last four to five years. and my whole theme was that the social graph, all the graph in extension was going to be very interesting marketing opportunity. so after i left in the capital, i invested in graph science. what they've done fundamentally is they've been able to take the

facebook graph and drive very significant roi for advertisers. >> let me -- >> john, we've got to get jon fortt in here. >> six years ago a lot of people thought apple was ridiculously overvalued. how many ipods and macs do they have to sell to be worth that. what people weren't looking at is the core potential that they have. being good at software, and hardware, the smarts to put it together in an era that was moving toward mobile and clout. >> and sell products. >> facebook could -- they didn't sell phones. they didn't sell tablets. what could facebook do with the fact that it's really good at social, when nobody else is really good. they're really good at software development. >> how do you -- >> jon, sorry, i know more people leaving facebook than joining, because they're bored with it. they've done everything they can with it, and they're bored. i'm not saying it's not a great company. >> let me --

>> it's about a $75 billion valuation. not about whether or not facebook is good at looking at pictures of grandma. >> it doesn't matter if you know 1 million people who are leaving, if are there 2 million or 3 million people joining. >> where are they going to join? not in china. brazil perhaps. >> they're going really fast in argentina. >> but outside of the advertisers, back to what john was saying, what is the average ori for an advertiser on facebook. >> that is the question. somebody who was looking at microsoft years ago might not imagine they could do office and monetize their platform in that way. >> how well are they going to monetize it? answer the question. >> we're all crazy up here. >> oh, finally got a word in. i've got one basic question for you, please. no one's getting me, so i'm unclear as usual. he's not there?

that's not good for me. >> we apologize. >> what i'm trying to understand is this, how can google do ten-fold the revenue and have a market cap -- >> that's a great question. >> and be 75% more, that's it. >> the question is, look at facebook's revenue a year ago and look at google's and see who's growing faster. >> are they growing ten times faster? >> we'll see. >> we will see. good debate, guys. thank you very much. jon, thank you as always. and cnbc takes you inside the true story of facebook. not the false one, but the true one, with rare access at the man behind the obsession. yes, it's mark zuckerberg 8:00 eastern only on cnbc. head to australia, what am i doing here, reason why, coming up. [ male announcer ] to the 5:00 a.m. scholar. the two trains and a bus rider. the "i'll sleep when it's done" academic.

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it is that time again. disas tr du jour. >> that was a great segment. get over yourself. here is the reality. carbonite. >> ah! >> carbonite getting whacked today. it's unclear why. they do backup in the cloud. the company is one to watch. >> let's get back on track. today's sunshine stock is on track, hitting a 52-week high.

2011 they said was their most profitable year ever. unp is up 10% year-to-date. continuing to do very well. in the final sign of the signs, this australian businessman could be dubbed the world's most generous boss. he sold his bus company for $420 million and decided to share $16 million of those 420 with his co-workers, with doling out bonuses to every single employee. they averaged around $9,000. there were some that got as much as $100,000. of course, those who had been with the company for a long time. all employees will reportedly keep their jobs under the new management. back in 2010 there was an australian mining giant who was named best boss after handing out money, vacations and mercedes. >> two years out of 224 years of tortured history, created by the

malcontents -- >> don't rain on my australian parade. >> speaking of, what were you going to say? >> aol undervalued. >> $2.2 billion in revenue. facebook 4 some billion in revenue. $100 billion market cap. i'm just saying. >> i also want to point out, green mountain coffee, after the bell today, and i want to also mention that walmart has actually confirmed to cnbc something that we talked about last week, and they're going to carry a competing single-serve product called the seo machine. they'll have it out in the stores later this year. >> sounds fancy. >> i think it's possible selling today od'd on coffee before the show. >> passionate about the facebook thing, right? everyone's slathering all over facebook. i've been hanging around with this guy too long. it's like the final scene of "there will be blood." i'm sitting in the bowling alley here. i'm not sure which of the