and tried to explain exactly what that meant. >> he tried to respond as forcefully as he could to the suggestion by republican candidates, mitt romney who may take a step forward tonight towards the republican nomination that in essence to say to mitt romney, what exactly do you want me to do? mitt romney wrote an op ed today saying he would impose ever-tightening sanctions. the president's response is, i'm already doing that. the only thing i haven't done is launch a war. so he challenged romney and other critics, without using his name, saying, if you want to launch a war, say so and explain to the american people what it's going to cost us. >> eamonafters will join us in a short time. it is super tuesday. the president certainly took a number of questions about the race. i found his comments when nora o'donnell asked him what would he like to say to mr. romney -- the humor was injected there which i think was quit effective from the president's standpoint. >> exactly.

he was trying to both respond on an area of substantive policy that's in the news right now with the republicans hammering him on iran, trying to drive a wedge between the president and jewish voters, so he responded to that. but when it got to the charge by mitt romney that he's the most feckless president since jimmy carter, he wasn't going to go there. the question is, what would you say to mr. romney? he said, good luck tonight. and the reporter said, no, really? and he sid, no, really. >> on the issue of the middle east, do you think he satisfied those critics who say that he perhaps was not explicit enough in the united states' support of israel? >> no, i think the critics who believe that are going to believe that until this threat is defused. benjamin netanyahu in his meeting with the president yesterday said we retain the ultimate decision-making authority over events that we think involve our security. so until this threat is alleviated, until people see that the sanctions regime, the

president is pursuing with our international partners, is effective, you're going to have critics who say, you're not doing enough. >> john, thanks so much. see you throughout the day on this super tuesday. that's it for us on "power lunch." we'll see you tomorrow. have a great afternoon. "street signs" begins right now. welcome to "street signs," everybody. stocks taking a hit. and it is greece again. so why are greece's problems our problems again and how long will the fear trade rule the street? we will debate straight ahead. as the spring selling season for housing gets under way, a new flood of foreclosures and foreclosed homes hitting the market. but as diana olick tells us, this could actually be a good thing longer term for housing. and we'll head to houston, texas, where the world's energy executives are gathering to figure out how we can navigate

our own future. the president just wrapped up his news conference. the markets are really struggling today. the worst day in three months and also the worst drop of the year. possibly the first triple-digit drop for the dow this year. let's bring in bob pisani at the nyse. i'm going to sound like a broken record, bob. yesterday i said to you, what's changed? i'm going to ask you again, what's changed? >> well, two things. number one, we're getting more data on global growth, indicates a little slower than we thought. china yesterday lowering its growth estimates but also brazil today a 2.7% gdp. listen, we're a 3% gdp country. brazil did 10% in 2010. now 3% in 2011 and maybe the same in 2012. that's the issue. s&p 500, mandy, could i just say, by the way, we're only 2.5% off the recent highs. i wouldn't put up any particular panic. we're back to levels where we were 15 days ago. what they're going to do is they're going to sit and wait for a little while and see what happens. if you go to 1,325, what

happens? do you get buyers? greece is playing in here, too. what happens on that debt exchange on thursday night is going to matter. one other quick thought, i got a lot of questions about gold today. why isn't gold going up if there are concerns about global growth? it hit $1,677. that's the 200-day moving average. technicals matter. it broke the 200-day. china slowing growth there, the number one gold buyer in the world, that would put some pressure on gold in terms of the fundamentals as well. i think that's what's going on in gold today. >> absolutely. we watch china every single day. big driver of the markets. >> we've got news on greece right now, having to do with that private debt swap. michelle caruso-cabrera is opt tone from athens. >> reporter: all the major greek banks have agreed to some in on this pss. they're going to tender their bonds, take a big haircut, only

47.5 cents based on the original 100 cents they thought they were going to get. the key question is, are they going to have enough? 3:00 p.m. on thursday, new york time, the deal closes, the offer closes. that's 10:00 p.m. in athens, 9:00 p.m. in central european time. that's when we're going to know if they have enough votes at this point. at that moment, if they don't have enough, they're going to announce an extension of the offer. if not, the next day, they're going to go to brussels, see if they have permission to impose a clause. that would impose the deal on bondholders expected to trigger cds. a couple of days away from finding out what's going to happen here. it's crucial this deal get done. if not, we have this big bond repayment for athens due on march 20th. and as far as i can tell, there's no plan "b" at this point. >> i think, michelle, it merits repeating the headlines here. a greek official telling cnbc

that the private sector deal will be done on time. michelle, the markets here have been down all day as people express concern that the deal will not get done. if the markets believe this headline, we should see stocks turn around, if not recover. we haven't seen that yet. do you feel like there is a distuscaloodi distrust of these types of comments coming out of the greek government because the markets should turn around on this? >> reporter: i don't think it's a distrust of the greek government. having covered several debt exchanges, these are all the things you have to say at this point. you have to say nasty things like, you're not going to get paid if you don't do it. you have to say all kinds of things to try to bring in as many bondholders as possible. this rhetoric is what you would expect at this time. i don't think it necessarily has anything to do with greece even though historically there's a lot of distrust issues out there with greece. >> we're going to bring in keith

wuertz and richard weiss. if the psi deal does finish on time as the headlines are suggesting here, keith, to what extent do you think this is going to help the markets? >> i think if you look at the greek matter, it's been something that's been brewing for almost a year now. it's not really in my mind then are for the selloff. i think it's more coming out of the middle east. if we at least get some relief out of europe, this market wants to go higher. this market might have dynamics or momentum all the way through the quarter into the next month of april. >> richard, to what extent could any real progress on greece actually help the markets at this point? considering i feel like a lot of the scenarios have already been built in. >> yeah, it's not all about greece. the problems, the issues are quite a bit broader than that. we saw confirmation that euroland was in recession last quarter of 2011. it's likely to get worse before

it gets better and it's bragg dragging in the larger economies in europe. possibly even france and germany next year, maybe not in recession but certainly representing a drag on their growth. i agree with keith as well that its middle east tensions are hurting. and you add to cha china ratcheting down their growth expectation. this is not your typical risk-on, risk-off trade because gold is falling as well. this is a global growth slowdown to a large extent. greece is one very small part of it. but china, which is essentially the baby of the global economy is large but very immature and arguably slowing. >> richard, i want to go back to keith in a second but i want to follow up on greece. i'm getting a little bit of heat, people saying, trying to cheerlead the market higher because you say if this headline we just did with michelle should turn markets around -- if i'm reading -- every news organization, the markets are down on fear about a greek bond deal.

now we have a headline, saying finance minister confident we're going to get a greek bond deal, should that not turn markets around or no? >> yes, i think it's a positive but a small one. and the markets may or may not be discounting it at this point. a slowdown in china which is an economy 100 times the size of greece, give or take, and a slowdown in some of the major european economies is much more important to the markets than the evolution of what's going on financially, monetarily in greece right now. >> if we look a little bit closer to home then, keith, i get a feeling the rally was going swimmingly, then we hit a wall and start to go into pullback mode when bernanke started being less dovish last week. if we continue to see a pullback in the markets, are people going to start talking a lot more about the potential for q.e. 3 again? >> you may get some of that rhetoric dissipating a bit. i think there are a lot of investors that have been on the sidelines for most of this rally. it feels to us as if there's an

impetus to buy into this marketplace on lower price points. the only thing that would really create a real disruption in the marketplace would be something out of the middle east, something with iran and israel. we think that might be the one obvious thing that would lead to a big bear market kind of correction moment. >> what do we do, then, keith? you said the middle east was a bigger concern. that's not going to get resolved anytime soon. we've been dealing with middle eastern issues for forever. >> that would be the trigger event that might cause a big, major pullback in stock prices. absent that, we think the momentum actually is for higher levels. we think we're going to move into the second quarter with better-than-average stock price momentum. we think investors are missing this rally and they're going to come back on lower prices. >> keith, when you talk about a big event out of the middle east, are you talking about the potential for a spike in oil prices which might bring us all undone? >> anytime you see diagrams on

tv showing how israel is going to attack iran, that's going to unnerve people in the capital markets. that's going to lead to things like oil disruptions and things. one of the stocks we like is national oil. those plays are going to give you a hedge if there is a middle east event. >> thank you both. coming up next, the double-down stock that could be worth a gamble. and a new wave of foreclosures set to hit the market. but wait until you hear why it could be a good thing for everybody. plus, big trouble in small cap land. over the last two weeks, the russell fell as many days as the s&p 500 rose. so is it time to get out of the little guys and into the big leagues? be sure to catch cnbc's live coverage of super tuesday results. we'll kick it off tonight at 8:00 p.m. eastern time. it's a big day for the gop. we've got full coverage. maria, john. "street signs" returns right after this.

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check out shuffle master. they make automatic card shufflers, slot machines and gambling tables. they beat its estimates, earnings up 59%. and they're adding to their online gaming portfolio buying the ongame network in a deal that could be worth as much as $39 million. the stock is up by 8.6%. a new wave of foreclosures hitting america's housing market. there may be something here to help the overall housing market

recover longer term. diana olick is here now with us to explain. >> that's right, brian. thousands of foreclosures that were stuck in process due to delays over the so-called robo-signing paper scandal are working their way through a revamped banking system and heading toward final bank repossession. foreclosure starts surged 28% in january from december. more than 230,000 loans began the foreclosure process. that's still down from a year ago but it shows you what an impact delays are still having. even more indicative of this new surge in processing is that repeat foreclosures hit an all-time high in january, representing 47% of all foreclosure starts. again, according to lps. repeat foreclosures are either failed loan modifications or loans that banks were trying to modify but couldn't. now, this is going to cause some short-term pain in the housing market because as foreclosure starts increase, so do foreclosure sales. that is the bank repossessions where they take the house back.

they're up 29% month to month. so consequently, that means we're going to see a rise in the number of these foreclosed properties going up for sale on the open market. as we all know, that pushes home prices down. >> when we say that this overall, in the long term, might help the market, diana, how much pain is there going to be short term and how long would that short term be? >> well, actually, we're looking at a very long time, mandy. >> okay. >> we've got 60 months, believe it or not, 60 months of inventory to get through in judicial states. judicial states are the ones where you do need a judge to get through. there's longer than for nonjudicial foreclosures. >> that assumes the sale rate doesn't pick up -- >> that's correct. >> if it accelerates, it could come down much more rapidly. >> that's the key point. investors are trying to get in on this market and take advantage of the foreclosures and not to mention, bulk deals we're looking at. if demand ramps up for these

properties, that could come down fast. >> "fast money" tonight has a guest on from a company that's purchased about 1,000 properties out of foreclosure in phoenix, arizona, basically big bulk purchases and in the majority of cases, they're renting them back to the people who were foreclosed upon so they have a place to live. >> we're seeing this more and more. >> there are some programs where they have rent to buy where you get the person back in renting and get them into a position where they could potentially buy the home a couple of years down the road. >> what about some of the programs the president is trying to push through to help people struggling in the housing market? >> he announced the changes to the fha. and the premiums are going to come down, the upfront premium and the annual premiums for people who already have fha loans but want to refi. what that is is more of an economic incentive. that gives people more money in their pockets. it doesn't really do anything for the housing market. so this is economic -- >> none of these programs has

done much. >> how many trillions of dollars of programs have been thrown at the housing market and we're still -- >> she's not going to touch my question. >> a lot of people have stayed in their homes. and that big a.g. settlement, that will keep some people in their homes, no doubt. the big question is can you save everyone? the 4 million people delinquent on their homes right now -- >> i'm waiting for my principal writedown? did you get yours? >> i did not. >> because you pay on time? >> because i pay on time. >> it's a case of moral hazard then. thank you so much. >> you go first and let me know how it works out for you. talking of going under, lehman brothers holdings emerging from its $639 billion bankruptcy and it can soon start paying out about $65 billion to creditors. but did you know the bank's collapse triggered one of the biggest paydays for lawyers? they're always the wons who run

laughing to the bank. nearly $1.6 billion will be paid out to lawyers who handled the bankruptcy. one firm has already collected more than $500 million in fees. just ahead on "street signs," why janet jackson -- yeah, rhythm nation, is sending shares of nutrisystem on an out-of-control downward spiral today? the nasty details when we return. and a first look at a new look for an iconic american brand. can you guess which big chain you're looking at right now? the answer is on the other side of the break. carfirmation.

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are now powering some of america's biggest cities. siemens. answers. do check out shares of nutrisystem. it is getting hammered today. down over 10% after a wider-than-expected fourth-quarter lost, trading at lows not seen since february of 2009. and here's the story, janet jackson is a marketing representative. in other words, she appears on television for nutrisystem and apparently she costs a lot of money. nutrisystem basically saying that janet jackson cost them a lot of money in the quarter and therefore they didn't make their number.

that's the way love goes, folks. >> you need a lot of money to use that much hair gel. earlier on "fast money," herb raised a red flag over herbalife because he thinks they overhype their research, right? you're back now. great to see you again. the team is back. >> we're back. >> tell us what the issue is. >> the issue is -- i pointed out that the ceo told jim cramer, we work around the clock on research, go to their s.e.c. filings, they say, we send an immaterial amount on research. that to me is just the statement of that versus what they really do. and what they're doing is telling you in the s.e.c. filings that it ain't what it appears. >> let's bring in the senior analyst at d.a. davidson. tim, do you feel there's a contradiction going on here? they're saying on one side that it's immaterial. >> i don't think it's a big

issue as all. i've got in my hand their latest investor presentation as well as their most recent conference call. r & d was never mentioned once in either of those documents. it's just not a focus of the company. i think that michael johnson answered a question that was posed to him by jim cramer. and he specifically used the word in herb's column "development" not "research." that's a key distinction. >> when i look at -- there was another point here that was kind of interesting. i went back and forth with the company on this. this is the issue of what they are. are they a multilevel marketing company or are they something else? they say they're something else. and the street values them sort of as something else, not as an llm company. what do you think? >> well, i think it is a multilevel marketing company. i follow three of them and they are by far the premier example of multilevel marketing. but i think it's fair to comp

them to other high-quality growth companies, whether you're talking about lululemon. they're not in the same business but they're a high-quality growth company and they ought to be comped against that group tooshgs. >> i'm on their website and they have a big thing -- it's glossy. it says, 5 billion and we're just getting started. they can't be referring to revenue, right? because sales are not at $5 billion. they're about $1 billion off $5 billion. do you know what that is? >> yeah, that's volume points. years ago they set a goal of 5 billion volume points. they've achieved that. their new goal is 10 billion volume points around the world. >> the stock is up 71% over the past year. where do you see it going from here? >> we've got a price target of $90 on the stock. we see substantial appreciation ahead. this company is growing so dramatically fast around the world. every market they participate in is showing strong growth both in terms of volume and revenue

growth. no debt, strong free cash flow. the dividend's up 140% year over year. tell me another company that can tell you that. >> tim, thank you so much for that. thanks very much, herb, for doing your digging as well. >> on herbalife. going into the break, mandy showed you a picture of a cool new store and said, do you know who it is? who's that? that's starbucks, folks. it's in amsterdam. this coffee shop is an experimental concept store actually with coffee. looks nothing like your neighborhood starbucks, obviously. it's in the former vault of an historic bank. it will be showcasing what they call green design. it's not the first time starbucks has opened a concept store but it's still pretty cool. starbucks trading down with the rest of the market today. up, though, nearly 50% over the past year. >> that's a lot of coffee. what's the stuff on the roof, though? were they like bags of coffee

or, i don't know, buns? coffee scrolls? we have to hit the markets. dow industrials down 211 points. we have not had a triple-digit loss for a long time. the last drop of 200 points or more was actually back in november. is america sitting on our own well of energy independence? we're going to speak with the ceo of apache energy about the future of shale. and if you're looking for proof of the biotech boom, check out this stock, this stock is up more than 1,000% over the past three years. we'll talk to the ceo to find out if there's still more room to run. an investment opportunity you didn't see before. fidelity's next generation ipad app lets you see what's trending around the world, as well as what over a million fidelity customers are trading throughout the day. and advanced charting lets you customize your views and set up your own comparisons. our ipad app can help refine your strategy or even find a new one. i'm velia carboni, and i helped create fidelity's next generation ipad app. it's one more innovative reason

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welcome back to "street signs." it was a really busy day on the street. let's get you caught up on what's happening in today's "street talk." it is shaping up to be the worst day of the year, at least so far, for stocks right now. the dow down about 220 points, the low of the day. and if we hold out these levels, it's going to be the first triple-digit decline in the dow since december of last year. it's not much better over at the nasdaq. tech stocks struggling for the fourth straight session. let's get the latest action from courtney reagan standing by at

the nasdaq and direct access partner, michael shea is, on the floor of the new york stock exchange. courtney? >> tech has been an outperformer for the market most of the year. today, tech right in line with the rest of the market. the nasdaq composite down about 1.6%. we're at 2,902. you mentioned nutrisystem, those shares trading lower by more than 10%. also getting two downgraded after disappointing earnings. janet jackson not doing it with that endorsement. moving over to lululemon, this one is a street darling. we talk about it a lot. getting a downgrade today from argus research. they're downgrading to hold from buy. they like what they see but they've hit the price target and want to stay where they are right now and not add to their positions as they look to see if they can gain market share here in the united states. i know you like sunshine.

so i want to take you all the way over to omnivision. this is a chapmaker. makes chips for image sensors. we're up 8.5%. there are some positives here, getting an upgrade today. and that's the reason why. mandy, back over to you. >> courtney, thank you for that. michael shea, back to you. i feel like no one should be particularly surprised here. for a long time, people have been saying we're due for a pullback. and guess what happens? we get a pullback. nonetheless, are you taking cover on a day like today? >> taking cover -- i don't know so much as maybe -- >> are you buying, then? >> no, absolutely not. i don't think this is a day for buying. i don't think you want to be reaching and trying to see whether or not you're at the bottom at all. our technical team at direct access partners puts this pullback back to maybe the 1,270 levels. the good thing for the market,

even though we're not going to see anything particularly good in terms of of green, most good markets have these moments. i think we probably come in more before we ended up firming up and then going higher, which i also think is going to happen eventually. >> but we have to technically get down to around the 1,270 level before we can have that move upwards. how do you invest in that kind of environment? >> if you're somebody who wants to actually play these shorter-term musee, you could buy etfs that actually are to the short side. you can go ahead and short stocks. you could buy puts. if you just are more of a long-only person, what you're doing -- honestly i think you're seeing a lot of this right now. you're seeing people who like this market, who like what's happening in the u.s. economy and they've been waiting for a moment to think about getting back in this market. if you're a long-only guy, what you're going to do is wait for this to wash out. this is your entry point.

and then you're going to see that upswing. >> michael, thank you so much for that. in the meantime, president obama talking oil prices at a news conference last hour, saying the recent spike in pump prices could hurt our recovery. >> i want gas prices lower because they hurt families, because i meet folks every day who have to drive a long way to get to work, and them filling up this gas tank gets more and more painful. and it's a tax out of their pocketbooks, out of their paychecks. >> the president went on to say there's no silver bullets when it comes to fixing our energy needs, calling for a mix of increased production, conservation and also clean energy technology. while oil prices are moving lower today on news that the u.s. and five other world powers have agreed on new talks with iran over its nuclear program, oil falling about 1.5%, backing off recent highs that brought prices past 109 bucks a barrel late last month. the world's leading energy

executives are gathering today in houston, texas. that's where we find our own sharon epperson. sharon? >> reporter: brian, a lot of the executives here at this energy conference have a lot to say about how we could lower the high prices we're seeing for energy. one of them is to use natural gas more. i'm here with the ceo of apache, steve ferris, to talk a lib about his outlook for natural gas and in fact what strong production we're seeing from apache in light of the fact that we're looking at costs that are so low. how is that attainable? >> well, today, in 2011, we grew our production about 14%. we're projecting our production to grow to 7% to 13% higher. we average about 750,000 barrels of liquids in natural gas in 2011. >> reporter: do you see natural gas with all of that production as a key to solving some of these high energy costs, $3.77 a gallon for gasoline right now? >> if you think about it, the

united states uses 356 million gallons of gasoline a day. and the amount of natural gas that we have in this country certainly wouldn't reduce that to zero. but it certainly would go a long way in reducing our dependence on foreign oil. >> reporter: one of the things with natural gas right now, $2.35 per million btus, we are looking at prices that are at historic lows for natural gas. but it's created an opportunity, you say, in terms of assessing what drilling you want to do -- drilling more wells and also perhaps acquiring more assets. >> and i will tell you what's good for one side is bad for the other and vice versa. and what we're seeing is a resurgence of ammonia plants coming back into this country. you have iron ore plant willing built in louisiana. it's all based on the fact that we have a long-term supply of natural gas in this country. in terms of what's going to happen to price, i will tell you, if you look at the maturity curve of oil in the world and the maturity curve of natural

gas, we are just in the infancy of really discovering all the natural gas in this country. >> reporter: and so where do you see in terms of how low gas prices could go what we may see ahead? are we going to see sub-2 levels here for natural gas, approaching zero, perhaps? >> i think what you're seeing is the dichotomy of drilling horizontal hydraulic fractured wells, you can do that in gas and you can do it in oil. what happens is the costs haven't come down nearly as much as you would have expected them to on the gas side because of not drilling horizontal wells. that causes the price to stay high. >> mr. farris, i spent some time in egypt a few years ago and spoke with some of your executives. you're still the largest western investor in egypt. obviously we know what has been happening there. any impact on your production, any impact on your important egyptian operations? >> well, in fact i just got back

from cairo, egypt. and i spent about five days there. we've never dropped a rig. we've never shut in a barrel of oil or an mcf of gas. actually we have 27 rigs running today. and on january 25th of 2011, we had 25 rigs running. we just got nine new development leases from the -- approved by the government. i think the real bottom line for egypt is we're good for egypt. we generate about $10 million a day for the egyptian economy. and it's good for our shareholders. so i'm very positive about egypt in the long term. >> reporter: one more quick question about your oil shale potential. you have that in argentina where you're making inroads there. what do you see as the growth potential there is? >> well, we have 3 million acres there. we have about 1.5 million net, we have 30 rigs running. all of it is associated with oil. if you look at the bakken or the eagleford, all of those plays

have the potential to increase production significantly on the oil side. >> reporter: thank you very much, steve farris joining us from apache. we'll continue with live coverage throughout today and on wednesday as well. back to you, brian. >> sharon, thank you very much. i was trying to jump in, but my mike fell off. so you might have heard us talking. sorry about that, sharon. thank you, steve. >> just to preview it is live tv and apologies about that. >> we call it "pulling a herb". >> poor herb. >> as of right now, we call it that. still ahead, earlier this year, bioteches were booming. of late, investors seem to be bailing. >> we'll speak with the ceo of ariad pharmaceuticals. they're a leader in therapies for difficult-to-treat cancers. their stock's more than doubled the past year. [ male announcer ] the draw of the past is a powerful thing.

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the dow is currently off by 226 points. at this stage, we are at session lows. why don't we take a look at the internals here. you have for another day caterpillar being one of the biggest losers on the dow. yesterday it was down on signs that china's growth is slowing. they cut their 2012 growth forecast. caterpillar depends on china for a lot of its revenue. you've also got on the dow, alcoa down sharply along with hp and bank of america. brian? 2012 may be a big year for ariad pharmaceuticals, the biotech has two commercial cancer drug that is may be on the market soon. they are pending fda review and approval. ariad shares are down 5% today but up more than -- this is not a misprint -- more than 1,000% over the past three years. let's learn more about the company and what is behind the boom and bring in dr. harvey

berger, founder and ceo of ariad pharmaceuticals. thank you very much for joining us, harvey. markets very optimistic about your plans and your drugs and your future in the market for these two drugs. are you? >> well, thank you, brian. you know, we just came off an extraordinary year with each of our products reaching very important clinical and regulatory milestones. as you pointed out, we're poised to take two of our lead products to the marketplace this year. and most importantly to make them available to patients with cancer and in the greatest need. >> you've had a couple of decades now of development, essentially, but no products on the market, harvey, which is really all the more incredible when you look at your stock price performance. you could have these two important cancer drugs on the market very soon. how are you ramping up going from an r & d company essentially to, i guess, a manufacturing company? >> well, it's even more than a

manufacturing company. we're building the commercial infrastructure in the u.s. as well as in europe. we're going to commercialize one of the drugs on our own without partners. the way to create value for our shareholders long term is to build a commercial presence in the u.s. and in europe and ultimately in asia. and we're hiring. we're building our infrastructure. we're creating a corporate headquarters in switzerland to complement our headquarters in cambridge. >> so you're doing all of this. what happens if you don't get fda approval? >> well, we have a very high confidence, certainly in our breakthrough cancer medicine for patients with chronic myeloid lee chemoya. we're on a path of a very high likelihood of that drug getting approved in the u.s. and europe quite soon. >> one of the analysts day

talked to today basically said he understands why you're going on your own and not seeking a commercialization partner. you obviously just said it as a positive. but there is some concern in the analyst community about maybe not having that big bankroll behind you for marketing. >> well, i don't think you really need a huge bankroll to successfully commercialize a drug that appears to be as effective and as strong as penatini bishgs. the medical community is behind us. patients are demanding the drug. the results of our pivotal trial have been very, very positive. and i think all of those bode well for the success of the drug. we have the capital we need to launch the drug, to launch penatinib in the europe and in the u.s. to be successful. >> thank you so much for joining us today. a rough day for stocks. don't really need to tell you. after a week of market milestones. >> the question now, one of the questions, is have small caps been flashing a warning sign for

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a rough day for the big caps and a down week for the dow. all the stocks on the dow, all 30 in the red right now. in fact, if the dow closes down today, it would be the first time in a very long time the dow has has not closed down 100 points in 45 straight trading sessions, which is the long ect streak since 2006. gold is off 2%. remember when gold used to act like a safe haven? now, gold trades way more like a risk asset. we're sitting there at 1670, off by 33. it's also a tough day for small caps, and even worse week, the russell 2000 down more than 4% in the last five sessions. the small caps telling us the bull run since october is running out of steam. mark, i'm going to begin with you. your job is to buy and profit off of buying small cap stocks. do you think the overall, the

macrorun is done? >> i find it challenging to find disconnects between price and value. if you look prior to today, the annualized return for the russell 2000 approximately for small cap shares is at 34% for the last three years. so, you know, it's hard to find things that pem don't love. we've been able to find a few. >> like? >> well, like mantech. ticker mant. it has a 2.5% dividend, mandy. we can pie it for a little less three times cash flow. it's a consultant to the department of defense, which you'll probably have an a-ha moment. they're a consultant to the army, the armed forces, department of defense, and we think the shares are materially discounting the value at this

price. >> paul, let me bring you in, because you love looking at history. you love looking at time frames. so we've got the underperformance of the small caps. at what point does it need to continue for, how much longer does it need to continue before we start to get concerned here? >> you know, we'd like to see it several more weeks before we really got concerned about the overall market here. in the last 15 years, over the last month, small caps have underperformed by 5% relative to the s&p. that's happened about 15 other times since the mid-'90s. going forward the market usually rebounds. the longer that lasts, the more concerned we become. the market kept going higher for another year. you tend to -- you tend to drag it on more before the overall market gets hit. that being said, as long as it persists here, you know, you want to exercise a little bit of caution. >> i have a feeling, paul, you

guys have already started to do some work on this decline today. while this would be the biggest decline of this year, this would be the flea on the back of a dog this year. how important is it today? >> i don't think it's necessarily that important. like you were just saying, last year we had several days like this. one of the things we look at are all-or-nothing days, plus or minus 400. we had a record amount over 70 last year. so far this year we haven't had any. we may get there today. but the volatility light switch went off on january 1st for some reason. to think it would stay off for good is a little bit pie in the sky. you're going to have days like this. but when you haven't had one in such a long time, it becomes more alarming. >> we're also seeing quite a spike in the vix, up by 17%. both of you, mark and paul, thank you very much for joining us today. in the meantime --

>> there was the music. look, let me tell you something. >> the second time you corrected her today. you just corrected her on the music and pronunciation of herb al life. >> last year it was louisville instead of louisville. >> that's well known. >> i told you -- >> it's karens up in northern australia. >> are you through? the clock is ticking. i had an alert, a herb alert here, actually, about a few weeks ago on neurobradley. since has gone up since then. but today it's an interesting stock. it's off a bit. one of the big bulls downgraded the stock because of the inventory issues. some of the products showing up at costco now. it's one to continue to watch. >> as for today's sunshine stock, it is sears. sure, shld is the ticker, down over the last 12 months. but up 60% over the last month

alone. i know you've got a lot to say about this stock. what do you make of that? >> you've got people continuing to react to the real estate play they want to see in this company after the company came out and talked about selling five stores for $270 million, when it turned out most of that was one store in honolulu. but that's what the street wants to look at now. they're playing on this. of course, this is an ongoing story. >> i loved your point about that. i think it was called the wialaya mall, whatever it might be. that's why you say the deal wasn't as sweet as they wanted it to sound in the press release. >> thank you very much, herb. last friday's announcement, meantime, richard parsons is leaving citi in another series of disruptions at the beleaguered bank. today's installment of innovate or else.

starting in 2007, citi revealed huge losses, and by 2008, shares plunged more than 60% in one week. at the same time that the u.s. government announced a rescue plan, citi was one of the only financial giants to institutionalize innovation. >> it's front and center. our ceo saw that early on. and in fact, in the midst of the crisis, one he identified was desire to put a chief innovation officer in place. >> their approach? spark innovation by bringing in outsiders with new ideas, and launching citi ventures. >> last year our team looked at over 600 startups. and invested in eight. >> citi is counting on this strategy to breed a new culture. >> we are striving to teach creative destruction, to build creative confidence in our organization. >> and they're banking on new products and services to innovate their way out of trouble. >> incremental isn't good enough

anymore. we need a different way of working. >> that was today's installment of innovate or else. can't wait for tomorrow. big down day, but up next, why we're not giving up the hopium just yet. >> i like the innovator or else. a great new segment, by the way. a great new segment, by the way. new.