Skip to main content

tv   Street Signs  CNBC  March 19, 2012 2:00pm-3:00pm EDT

2:00 pm
about herr's potato chips tonight at 9:00 p.m. eastern time on ty's "how i made my millions". >> best assignment ever. that will do it for "power lunch." >> "street signs" begins right now. we'll see you tomorrow. welcome to "street signs." stocks just keep on rocking. the s&p 500 near a four-year high. two big-name stocks in focus. apple announcing a dividend and a buyback. and bank of america back to more than $10 earlier today. but as great as apple has been, there are stocks that have done even better. we're going to kick off our series out of this world stocks with an energy name that is up, get this, 4,000% in the last three years. plus, making millions by breaking the age old rule of no playing ball in the house, mandy. >> and welcome back, brian. checking the markets the dow is closing in on its sixth straight positive month. the s&p 500 hitting another
2:01 pm
multi-year high. it has come within less than 10% of its all-time high with today's gains. and the nasdaq closing in on its best quarterly percentage gains since q-2 of 2009. did you know that at&t pays out the most money in dividends than any s&p 500 member? $10.4 billion. and, yes, that is more than apple will be paying behind apple is exxon mobil, ge and then pfizer. let's get down to bob at the nyse. bob, last week we broke some milestones out there in the markets. we saw yields spike over in the bond market. and of course the big kahuna was the parabolic move in apple. what do you think will be the big themes for this week? >> we're ending the quarter. boy, a lot of people are underinvested. there's a little bit of panic out there. have you seen the numbers? put up the numbers for the quarter we've had. nasdaq up 18%. you think a lot of people are that heavily vested in technology stocks? there are nay sayers think this economic news is a lot of nonsense. look at these numbers. some of the best quarters we've
2:02 pm
seen in a long time. cyclical up 20%. mandy, bottom line is worry about europe is gone away and worried now about rising interest rates. did you see today? the interest rates are going up again. the 10-year has been moving up. look at this. this is intraday here. 2.3%. and the stock market is going up in the middle of the day. >> is that going to be a short-term move? i mean, surely over the medium to longer term rising yields it's going to be something that's eventually going to hold equities back. >> listen. interest rates are rising for the right reason because they think slowly but surely the u.s. economy is improving. not fast enough, but it's improving. a steeper yield curve is not necessarily bad for the u.s. economy. it's great news for banks overall here. there's the s&p. look at this intraday as interest rates and, brian, i don't know if you're there, but as interest rates have been moving up, the s&p moves up. >> i am here. we're going to talk with kate kelly about it. they're finally getting a little
2:03 pm
return there. and let's not forget in 1999 when the s&p 500 hit 1,400, the 10-year treasury yield was around 5.7%. >> that's right. now, that was the year, remember, when tech stocks had their biggest influence on the market. right now financials have an even bigger influence on the market. that's going to help push the s&p up further here. so far i've been encouraged by what i see. >> sockpuppet.com is bigger than wells fargo back in those days. a big stock story of today is bank of america. it went back above $10 earlier. the stock has more than doubled from its lows of just three months ago. it got a boost from morgan stanley today. they increased their price target on the name. bac is up 80%. if you made the bold call, if you had the guts to buy at the beginning of the year, you are being rewarded big-time. is it time to take the money and run or buy more? let's ask paul miller, managing
2:04 pm
director at fbr and and kate kelly is back. welcome, kate. she's going to tell us how things are looking inside the bank. first, paul, i want to get back to bank of america. you heard our comments i'm sure with bob about the yield curve steepening. is that going to fall directly to the benefit of bac's bottom line? >> it's going to help every bank including bank of america. yes, it is going to help it out. also helps them coming out so well in the stress test a week ago. that's giving a buy signal to a lot of guys. one reason we're still on the sidelines is you have that private label lawsuit. but people have kind of forgotten about that right now and running with the bulls as you've gotten some good news and the yield curve is steeper which helps everybody in the financial world. >> todd, you have a hold and target of $6 on bac and you're saying avoid this baby, why? >> it's a couple things, quite frankly. you know, we've had a monster run as you mentioned. but you can't discount really
2:05 pm
the challenges of the company going forward. you have bryan moynihan, for example, acknowledging the slowdown in growth both here domestically as well as globally. you've got a cost structure that remains out of line relative to peers. you've got a low rate environment. and certainly you've still got a runoff in terms of their big toxic loan portfolio. and then as paul mentioned, you continue to have concerns in risk both reliability expose yur as well as the mortgage putback risk, if you will. put that all together, they're certainly not out of the woods. the stock and the performance today clearly in terms of optimism related to the economy, but to say the at least there are still challenges to be had with bank of america. >> it certainly sounds, kate, as if both paul and todd have some caution on this stock and maybe some of the runup we've seen this year is unwarranted. you've been doing some digging in terms of the animal spirits,
2:06 pm
if you like, the internals of this company, what have you found? >> you know, it sounds like spirits are looking a bit up, mandy. which is something i wouldn't have been able to say really until today or quite recently. as you pointed out, the stock is above $10 today. it's basically doubled since where it was last fall. with every bit of progress towards mortgage settlements, spirits improve. i know for a fact that they were thinking about doing a reverse one for ten stock split, something citi group did almost a year ago exactly. i think it was march 21st of last year. and now that was sort of something they had conviction around a few months ago. now it's kind offernal debate and they're leading away from it lately, i understand. the other thing is to remember it's still tough. they're making layoffs today in the equities division. brian moynihan has an aggressive set in the mix. >> brought up countrywide. can you tell us what your lack of worries are? bearish on bank of america what they say is we don't know what the ultimate reliability is
2:07 pm
going to be with regard to countrywide and the crappy mortgages they hold. what's your concern? >> if they didn't buy countrywide, this would be a $15 stock. countrywide let the devil into this company. that's where most of the losses, most of the stuff in the private label lawsuits, that's where they're coming from. if they can block off from countrywide, this stock would move rapidly. there's a lot of news or discussion out there with ally trying or might bankrupt res cap. that could be a road map for bank of america to try to bankrupt countrywide. if that happens, despite of all the negatives that we can talk about with bank of america -- >> you said, paul, i want to make sure our viewers heard you right, you said try to bankrupt countrywide. they want to jam it into bankruptcy. >> if they could put it into bankruptcy today, they would. if they could legally do it. i don't think they know how to quite do it yet. and i think with allied there's a lot of discussion going on in the market right now trying to do that with rez cap and probably very close to doing
2:08 pm
that. if that happens, people will look at bank of america and believe that they can do it with countrywide. it's unclear if they can do it. there's a lot of legal challenges in the way there. >> you know, just to tag that thought, paul, i think the next couple of months are going to be interesting to watch. first of all we'll have their annual meeting in early may. this is a company that still faces a lot of rest of shareholders and rest of public, they're the type of company that occupy wall street had in their cross hairs. so with more mortgage developments on the table, with a lot of background noise, you know, we saw the headlines, the results last week of the goldman internal guy who went public with his beeves against the company. b of a will have a lot of heat around it. >> okay. we have to leave it there, paul and todd. kate, welcome back. your first day back to cnbc. >> it is, after maternity leave. thank you. >> s&p now within 10% of all-time high. the dow just 6% from its record highs. can we break those records this year? let's ask peter anderson, senior
2:09 pm
portfolio manager of congress asset management. peter, i'm sure you just heard us talking about bank of america's huge run so far this year. is this the type of thing that's going to get the average joe fired up to put their money to work in the market, do you think? >> well, i think it is. but it's probably for the wrong reason. i mean, the stock has run up and i think investors are looking at that as an undervalued situation. there's plenty of easier undervalued situations to tackle before you take on bank of america. i was listening to the prior comments. and one of the things that struck me is we never even really got to talk about the business model at all. we're spending a lot of time talking about the legal maneuverings, what the black box is. bank of america is known for its black box balance sheet. >> what would you do with them at these levels? >> well, on the other hand i also want to tell you that the only good thing i heard was a rising yield curve, a steepening yield curve will help all banks. so if you are really in the
2:10 pm
speculative mood and you want to get exposed to banking, bank of america in my opinion is one of the most aggressive names you could play with steepening yield curve. >> but to mandy's point, there is a big downside to a steepening yield curve as well. it may be good for the financials. >> uh-huh. >> but it also takes attention away from equity investors because retirees and people like our own herb greenberg get a little interest on their money and say equities are less attractive. so there's a downside to higher yield curve. >> well, there is. but remember, herb greenberg might also always be owning fixed income right now if he's got any kind of foresight he would already have bonds in a portfolio anticipating that. and as you know, when interest rates rise, the value of those bonds are going to decrease. so i would still argue with you that you would look elsewhere to supplement even though you're going to get increasing incomes you still want capital gains. so fit's going to make you look at equities in a new manner.
2:11 pm
i mean, i'm looking forward to when interest rates start moving up because that to me signals that the fed is saying, okay, we have to start actually thinking about applying the brakes a bit because the economy is heating up. >> so bottom line here, what would you do right now? i was reading your call on isolationist investing. what exactly does that mean? and how do i do it? >> well, it means if you're a euro fold like the way i think of europe in terms of avoiding stock exposure of europe until that whole mess is cleared up, then stay in u.s. equities. equitys that have most of their revenue stream derived from isolationist areas such as the u.s. or asia, china specifically is a very, very attractive area to invest. >> and, peter, i think you're touching on something that at least in our view here on this show is very important because we've been highlighting this theme for the last few months, which has been the rest of the world's troubles. we had new data that shows home prices in many of the big cities
2:12 pm
in china are starting to rollover. we know what's happened in europe. and there is going to be a significant capital flight back to the united states. >> uh-huh. absolutely. but you also can't discount even though china is saying their growth is slowing, i mean, let's face it, 7%, 8% gdp growth rate is still a tremendously appealing growth rate. and i think a lot of investors are just looking at that headline saying it's slowing down. well, slowing down to say going from 80 miles an hour to 60 as a speed limit, you're still pretty fast. >> let's hope they can manage it in a smooth manner to engineer that soft landing that we all need. peter, thank you very much for joining us today. coming up on deck, we all know about apple's dividend and share buyback. so now what? what does it really mean for apple shareholders? we're going to talk to one invest r who has a lot of skin in that game. >> and stocks to infinity and beyond, perhaps. all this week we're looking at some out of this world stocks.
2:13 pm
and our first name is a name that's up nearly 4,000% since the 2009 bottom. [ male announcer ] any technology not moving forward is moving backward. [ engine turns over, tires squeal ] introducing the lexus enform app suite -- available now on the all-new 2013 lexus gs. there's no going back. see your lexus dealer.
2:14 pm
2:15 pm
well, you've all probably figured out by now brian is back from his vacation. i wonder if he booked his travel on priceline? check out this stock closer to $7 a share up 2% on the day
2:16 pm
nearly% and nearly 50% to the upside for the year. over the last three years priceline is up nearly 800%. brian. >> apple trying to again become a member of that $600-per-share-club. let's check out apple right now. i think it's oh, so close. that's not it. but the stock's around $597. shares of the company forest gump invested in after moving higher after announcing a stock buyback program. what does this mean to an investor? our next guest has skin in the game. manager of the five-star rated burnham fund. apple is the firm's top holding. jon, welcome. >> thank you. >> you got in. you made a lot of money. >> yes, we have. fortunately. >> are you selling some apple? >> no. not yet. actually sell some, but bought some back. >> what would make you sell apple? what would it get to before you sell? >> i would have to worry about the product line. what they have coming up next.
2:17 pm
and i'm not worried about that at the present time. in fact, i was kind of surprised to hear that the head of the company today announced that they have all kinds of new products coming. >> uh-huh. >> what they are, i don't know. but the next big one is going to be apple tv. >> that is going to be a big thing. do you feel a little stingy with the dividend considering i think the average dividend would be about 2% for s&p 500 companies. they went for about 1.8%? >> no. >> no? >> i'm not disappointed with it at all. they run their company very, very well. and i'm glad they're paying a dividend. i didn't know whether it should be 2% or 1.5%, but they're paying significant dividend. >> something we talked about this morning is that dividend going to bring in new buyers? >> yes. >> there's the benefit to apple stock. the income investing funds and maybe pension funds now say this is a nice annuity stock for us. >> and there are also some pension funds and other types of
2:18 pm
institutions who can't buy stocks that don't pay dividends. so that may be why the stock is strong today. but i think it's more than that. i think people wanted them to pay a dividend. $10.60 a year is not a bad dividend in the beginning. so i think people will be happy with it. >> and probably another thing that would bring in even more investors and particularly the retail investors, mom and pops splitting stock have no plans for that right now. is that something you think they should look at down the line? >> not really because i'm not convinced what good a split really does. the only thing it does is make people feel better if they owned the stock -- >> jon, come on. mandy's point is spot-on. looks cheaper on paper. i can't afford a $600 stock but i can afford two $300 stocks. >> why are you shaking your head? >> i don't agree with that. >> who are you, by the way? >> how do you do. i'm mandy drury. hi, herb. >> i couldn't sit here and look.
2:19 pm
>> this is what i get for trying to support your point. >> splits won't do anything more than -- we know they're smoke in mirrors and apple's too smart for that. i really believe that. >> the only thing that would have an effect on it perhaps is if they split 10 for one down to 50 and the stock went to 100, you wouldn't think that was anything great. but people ask me, you know, do you think the stock's going to go to 1,000? you asked me that when i was here before. >> i absolutely did. >> i said sure it can go $1,000. it's not that much. still only selling at 22, 23 times earnings. >> and trades at a less than 2% forward. one of those is misvalued. >> microsoft is probably undervalued at this price. but so is apple. i think they're both cheap. >> would you care to put a timeline on when you think it could hit $1,000? >> no. i don't think so. i don't think i want to put a time, but i don't think it will be too long. couple three years. >> okay. >> something like that. >> we'll have you back on then. thank you very much for joining us. >> hope you'll have me before that. >> and driving the icar.
2:20 pm
>> no. but you'll be watching an itv. >> that is true. herb, welcome to the show again. banging on about dun kin' brands. >> this has nothing to do with the product. nothing to do realistically with the company. has to do with the valuation. one of the great lessons i learned in the '90s when se kwoi ya capital did not sell a single share on the offering or for years. now take a look at dunkin' brands. donut company is bas kin robins. they cannot seem to get out fast enough. they sold a bunch on the ipo in july. a bunch more in november. and after the market closed on friday, dunkin' filed the trio would be selling another third of the remaining holdings leaving them with around 37%. and that's after dunkin' stock ran up over the past week on dividend news. now, i get it that the goal of private equity is to exit. but when they sell so much so
2:21 pm
soon, you can't help but ask if the growth potential is really that great, why sell at all? howard penny can think of a few possible reasons. i was talking to him today. and according to his analysis, announce new unit openings are lagging actual openings. and mcdonald's has new breakfast initiatives in the dunkin' stronghold in the northeast. the good news same store sales are strong and expected to be even stronger than expected in this first quarter based on what they said in the s1 they filed. bad news according to penny, a franchised-based system lieng dunkin' should be tied to new store openings rather than same store sales and new store backlog appears to be sliding. also, completely different subject but sort of related, last week bain backed kangaroo holdings which owns outback steakhouse said it's thinking of going public. selling out of dunkin', looks
2:22 pm
like bain is losing its appetite for restaurants. >> in your piece here's my beef with that. >> go ahead. >> number one, you said it's expected to be better than expected. you can't expect to be better than expected. >> my writing was off a little there. >> okay. number two, you said it yourself. private equities entire goal is the exit, is your beef then sort of the repeatty of which they're exiting? the stock has had a good run. what's wrong with that when you've had a nice run? what's your problem with people monetizing their investment? >> no problem whatsoever. but when i see a company being sold on a basis of great growth forward, there are private equity guys that stay in and go forward because they can get out at a higher price down the road. just something to pay attention to. >> they're not selling everything. so they can still get some -- >> they're selling pretty quickly. what i want to see in four months from now if they sell more. >> still ahead 173 locations in 53 countries. and the man who runs hard rock is here to talk recovery with us. >> but next, you're going to meet a man who is having a ball.
2:23 pm
and he's been having one for the past 40 years. he made his millions by turning this foam ball into a must-have toy for kids and grown ups around the world. "how i made my millions" look at the man who invented the nerf when "street signs" returns. ♪ why do you whisper, green grass? ♪ ♪ why tell the trees what ain't so? ♪ [ all ] shh! ♪ whispering grass ♪ the trees don't have to know ♪ no, no [ all ] shh! ♪ why tell them all your secrets ♪ ♪ who kissed there long ago? [ all ] shh! [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world.
2:24 pm
sometimes the best solutions are the ones you never hear about. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism.™ but not how we get there. because in this business, there are no straight lines. only the twists and turns of an unpredictable industry. so the eighty-thousand employees at delta... must anticipate the unexpected. and never let the rules overrule common sense. this is how we tame the unwieldiness of air travel, until it's not just lines you see... it's the world.
2:25 pm
2:26 pm
well, tonight on cnbc at 9:00 p.m. eastern and pacific, an all new edition of "how i made my millions." tyler mathisen is here on set to talk to a toy man who's hit not once but both and it's a pretty good bet you've played with both of these games. >> the first time he had it, he started with a game called twister. who can forget twister? >> oh, yeah. >> well, when it came out -- it actually began in the 1960s. when it came out in 1965, it was criticized widely by people who called it sex in a box. what's wrong with that? >> i think that was people who played naked twister, right? >> no. it was just a little too much, you know. it was just a little too much of that stuff. >> a little too much, you know. >> you can't have too much sex in a box. i don't know about that. but where it took off back in the '60s was it showed up on
2:27 pm
"the tonight show" starring johnny carson. and he played with eva gabor in a low-cut dress. and that was the evening where the game actually took off. one can imagine. those were more innocent days. >> well, i don't know. >> all i can think about now -- costco-size sex in a box. the value pack. can we move onto nerf. that's a big success. >> that was a huge success. it started with a game called caveman and came up with the idea of this nerf ball. that must be the original. >> that's it? >> that's the spongy ball. >> all spawned off that one. >> it was the game -- a ball that you could actually throw in the house without doing damage. he gets a percentage of the sales to this very day. the exact number is secret, but normally royalties are in the 5% to 7% range. $400 million in nerf products
2:28 pm
sold last year. you do the math on those balls. >> okay. so twister and balls. tonight 9:00 p.m. >> twister, sex in a box and balls. >> "how i made my millions." we will be tuning in. thank you. >> sorry. >> let's talk about the real thing. that was a great big football headline. peyton manning to the broncos, maybe. darren rovell, what say you? is it happening? >> looks like espn is reporting that they are commencing negotiations, that means he's picked over the 49ers and the titans, they're starting the whole process. they've given him a physical. this looks like this will be on track. now, the question for the broncos, obviously, from a business standpoint is are they making any more money off the deal? i can tell you since 1970 they've sold out every single game. they don't have many suites to sell. they're going to pay him -- >> what's the -- he's 36 years old which is like 82 in real life. >> they're going to pay him $18 million, $19 million a year, various levels of guarantees.
2:29 pm
the money might be tim tebow, his replacement. if he goes to jacksonville or miami, these are teams that have to sell 30,000 seats per game. he's from jacksonville. he played at university of florida. you know, the question is sustainability. >> in your view -- >> tell me these guys don't care about business. >> jacksonville is a city that's been mentioned as possibly losing its football team over time maybe to los angeles. >> have a new owner. >> they got 10,000 seats covered up by a tarp, right? they give away another 10,000. >> yeah. those are give away tickets. >> they need tebow. >> you would think. they did sign chad henny. >> they need tebow. >> they have blaine gab ert. >> i know. from a business perspective they need tebow. after missing out on peyton manning, i know j lo and marc anthony, williams as owners -- >> broncos? >> no. miami. they care about the glits and
2:30 pm
glamour. having tebow would make it a place to be. >> okay. thanks a lot. still ahead on "street signs," our out of this world stock. >> and how in the world did goldman sachs find itself in the middle of a gay marriage fight? "street signs" back in a moment. t. in america, we believe in a future that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪
2:31 pm
here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now.
2:32 pm
2:33 pm
welcome welcome back to "street signs," everybody. we have 90 minutes left in the trading day. let's get straight to today's trading talk. the dow not quite as high as friday's intraday milestone when it traded as high as 13,289. that was the highest level since december 31st back in '07. and what has been the best-performing stock since then? ibm. ibm up nearly 91% since the dow last hit liest level. in the meantime final oil trades coming in with oil prices climbing near $108 per barrel. let's bring in our very own sharon epperson from the nymex with the close. sharon. >> the sessions we've had recently, it's a rather quiet monday. pretty tight range for crude oil prices. the may contract is the one traders are following because that is the most active right now as we are going to see the april contract go off the board tomorrow. $108.50 seems to be where we close for that may contract. the key level to watch next traders say on the upside will
2:34 pm
be around $111. in terms of the brent crude contract, slight weakness there. we did have bank of america, merrill lynch, francisco blaunch coming out saying we could touch perhaps $140 this year in brent crude. he says because of tight supplies, improving demand, that would be the reason there. and keep your eye on gasoline. valero shutting down its aruba refinery. that's something traders have been watching. caused a lift later this afternoon. >> thank you, sharon. all week long we're going out of this world hitting on stocks with moves of 2,000% or more over the last three to five years in the russell 2000. among the names in that is kodiak oil and gas. this is up more than 3,900% since march of 2009. rumors of a takeover and therefore if a takeover offer does not materialize, how much
2:35 pm
will the stock drop? >> good afternoon, mandy. thanks for having me on the show. i do think that a part of the issue with the recent rise in the price of the stock above our $9.50 price target is there's a room for takeover in the company. the company has 150,000 net acres in the basin. it's a good size, a good target for a larger company to come in and do a nice offer for the stock. we do think that's one of the reasons why the stock has continued to go up and stay in the $10 plus range. you know, when you look at kodiak from a whole, the company has definitely taken advantage of the ability to make smart acquisitions throughout 2010 and 2011. since the late of 2010 through early 2012 the company has spent $1.1 billion plus just over $7 million of common stock shares to acquire 103,000 net acres in the basin plus just over 7,000 of production. the company has made itself into a position where it's definitely a takeover target.
2:36 pm
>> gail, if they're not taking over, right, let's just talk organic strategy going forward. last year crude oil was 96% of their sales. we know where natural gas prices have gone. should a company like kodiak divest its natural gas business and focus solely on oil, assuming they can find a buyer for the nat gas business? >> well, they really don't have a lot of natural gas business. most is aptly associated gas with the basin production. so they're getting $6 to $9 per mcf on their natural gas. that's extra profit to their bottom line. about 96% for them oil in 2012 but all is high btu nat gas. that's good for them. there's no need to divest because they would be divesting the basin assets which is the reason why the company is doing so well. you know, the bottom line i think the company does have some strong growth ahead of them. they're modeling between 19,000
2:37 pm
and 22,000 barrels per day of production in 2012. we're just above 20,000. we do think it's going to be tight to hit that from an execution standpoint. they need to execute in 2012. 2011 was the building year. now it's time to get off the drill bit and get the job done. >> gail, thank you very much for joining us. >> thank you. >> now let's go back to the front lines of the economy and the american consumer. there's some concern about rising gas prices hurting the overall economy and more importantly, tourism. let's ask someone who knows, the ceo of hard rock international joining us from orlando, florida. any indication that $4 gas which we've got in a lot of parts of the united states, is hurting your ticket for your sales at hard rock? >> well, i think from a business perspective, we're seeing a mixed situation here. it really depends which part of the country and which part of the economy you're exposed to. we're quite fortunate because we're in casinos, hotels and restaurants. so consumers can, you know, really take a different stance
2:38 pm
depending upon the county, state or what part of those businesses they're actually looking to go into. >> indeed. you're diversifying quite a lot. which of those businesses that you just identified are growing the best? which ones do you feel are lagging? >> well, i think in the u.s. i feel this is really on gaming and hotels and we're seeing consumers are quite steady in terms of their spending habits there. internationally we're looking at all of those different products. and from our perspective, it really talks to a portfolio of diversify kags. asia performing well, southern europe portfolioing badly. caribbean's exciting, mexico less so. portfolio diversify kags really is pretty important. >> okay. so then you heard our previous interview about divestitures. you're saying certain areas are not doing well, what are your strategies then? is it wise to get rid of the underperforming assets and grow in others? if it's smart to grow in other places, where would you look to gro in the world right now,
2:39 pm
hammish? >> i think asia's always the answer. but we're trying to attract consumers from the americas to sample our products. from one perspective we have a big project coming up in the caribbean. and the government of jamaica. we're quite excited about that. we're looking in northern europe in markets like acetone ya, which i think are developing. and we're also looking at south america. and in the u.s. really focused on three gaming markets. we're looking at ohio. we're looking at new jersey. and we're looking at massachusetts. each of those markets we think has potential for our brand. >> just talking of new jersey, i understand you have a six-month delay that you wanted to get the permit all in order for a couple of casinos, smaller more boutique-style casinos. why do you feel this is going to be successful considering the struggling atlantic city market already has a lot of casinos? >> well, i think there are two key things. one is atlantic city today is still the second largest gaming
2:40 pm
market in the united states. it still has tremendous critical mass. and we believe that bringing in our brand new product to that market, we can still provide great return for our investors and for our shareholders. i think atlantic city will always be important. i think we're a bit encouraged by some of the initiatives that the city are taking to try and modernize and to try and upgrade the product. but it is competitive environment. we are seeing competition from massachusetts, even new york state now is looking at it. and obviously next door in pennsylvania there's, you know, huge gaming activity. so it's not going to be easy, but i think atlantic city does have a great history. and we're hoping that our brand and that history will still curl us to something profitable. >> best of luck. thanks for joining us on "street signs." >> my pleasure. >> coming up next, why groups fighting for gay marriage say thanks but no thanks to support from one wall street titan. >> and later on, big changes coming to the makeup of the nasdaq's internet index. we're going to tell you the names that are in and the names
2:41 pm
that are out including one name i'm sure you know. stick around. 3q tdd# 1-800-345-2550 the 5-day moving average just crossed above the 20. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus. tdd# 1-800-345-2550 i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones to help me find tdd# 1-800-345-2550 possible trading opportunities quickly.
2:42 pm
tdd# 1-800-345-2550 i can also bounce my ideas off their trading specialists - tdd# 1-800-345-2550 on the phone or face-to-face. tdd# 1-800-345-2550 and i can trade wherever i want, whenever i want. tdd# 1-800-345-2550 tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 hey... a breakout on a head and shoulders bottom! tdd# 1-800-345-2550 that's what i'm talking about. tdd# 1-800-345-2550 open an account and trade up tdd# 1-800-345-2550 to 6 months commission-free. tdd# 1-800-345-2550 call 1-800-540-0098 tdd# 1-800-345-2550 and start trading today. [ donovan ] and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education
2:43 pm
of our u.s. olympic team.
2:44 pm
i'm i'm bill griffeth. coming up at the top of the hour on "closing bell," a double dose of exclusive interviews from the financial sector. we get the inside look at the state of the banking industry when we speak to barclays co-ceo of corporate and investment banking. plus, the chief financial officer of wells fargo also joins us. and is ron paul planning to stay in the republican presidential race or not? or does he have his eye on another position? maybe the vice president? maybe he wants to run as independent? we'll ask him coming up at 4:30 eastern time. see you at the top of the hour, mandy. >> see you then. thanks a lot, bill.
2:45 pm
as if lloyd blankfein hasn't had enough controversy, now in the middle of a gay rights dispute. jane wells is here to explain what this is all about. >> mandy, i love this story. lloyd blankfein thought he could get heat but he probably didn't expect to get heat from those who are for it. >> corporations learned long ago that equality is just good business. and is the right thing to do. >> blankfein released this psa for the human rights campaign after being named the group's first national corporate spokesman. the hrc honored goldman sachs for its commitment to the cause. well, in the only file that has not gone over well with some. >> hrc dump goldman sachs. >> this weekend at hrc's annual fundraiser here, a group from the occupy movement called the
2:46 pm
occupy los angeles queer affinity group protested wearing hazmat groups and teaming up with goldman was "not the kind of marriage we're looking for." it appears blankfein and goldman are pawns in a feud between the two gay marriage rights groups as the occupiers accuse hrc of being too cozy with the 1%. finally, because we can't get enough of greg smith's resignation letter, he's turned his letter into a world cloud. most prominent words include morally, culture, money, not used so much, leadership, murder and green which is where goldman's shares have been trading today. there you see. my gosh. over 1.5%. >> exactly. thank you very much for that jane wells. herb, you've been tracking a very hot ipo that seems to be somewhat sputtering now, right? >> i wouldn't say actually sputtering, but darn close to sort of seeming like it's losing a little of its steam.
2:47 pm
check this out -- >> sputtering. >> check this out. the stock up 92% -- don't look at me like that. up 92% in the past month since its ipo. you can see though today it's off 6%. i've been checking it out. probably one of those technical reasons obviously someone selling here, we know that. what's interesting is this thing's just been like gang busters. probably one of the year's top deal. when i look at the gain, i look at a 6% decline and say not sputtering. but on the day it's been notable disaster du jour. >> i would say 6% to the downside is a sputter. thank you for that. i love to be corrected on air. >> oh, yes. wow. >> wow. i'm going back to the woods, man. i come back here and you guys are fighting. >> it's a snake pit. check out gap. almost at a two-year high. an upgrade from bmo capital from market perform to outperform.
2:48 pm
also interesting to note here, guys, gap surpassed 10-day average volume today alone. there you see up by 2.8%. >> that stock is not sputtering. dark days ahead for solar stocks. we are going to ask a leading voice, perhaps the leading voice, gordon johnson, whether it's lights out time for the group. >> he's been pretty correct on this group in the past. and even with the pain at the pump, still sales halting production of the chevy volt. can they turn things around? more americans plugged into electric cars. ars. nnouncer ] you are a business pro. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice.
2:49 pm
go national. go like a pro. ♪ where the sun never goes out ♪ ♪ and the sky is deep and blue ♪ ♪ won't you take me american flight 280 to miami is now ready for boarding. ♪ there with you fly without putting your life on pause. be yourself. nonstop. american airlines.
2:50 pm
2:51 pm
first up first up let's go to stocks that did not make the cut and the name that i referenced said you probably know, it is a name that's so hotly fought over on wall street for years, patrick burns overstock.com. they are taken out of the internet index. some of these are really, really
2:52 pm
small. overstock perhaps is the biggest name, least known on that list. more stocks were added. angie's list, home away, corner stone on demand. groupon. move, ticker, move. that's not all, also stamps.com. 21 via net. not to make a mistake with oingo boingo. >> there you go, mandy. >> temporary halting production of the chevy volt, we are looking at what it will take to power up america's interest in electric cars. >> it is believed that interest in sales are picking you up for the volt. but it is hard to believe with what we are seeing in detroit. it is idleed, today and will be that way, temporary laying off 1300 workers on the assembly
2:53 pm
line. they will ramp production up once they have burned off inventory. that is expected to happen in mid april. the company is stepping up efforts to improve sales in california. they are running ads targeting california buyers. remember, one in four volts are sold, sold in california. so that's the primary market for them. gm is selling volts in california that have been modified for hov lane clearance. the key here is that you will be able to drive those as single kriefer with this modification in those lanes. quickly as you look at shares of general motors, ceo dan akerson, with stock runs val i'd at just under $2 million. those vest in 2014 and 2015. >> thank you very much. we look forward to the next installment. phil? >> from clean cars to clean tech. president obama coming to the aid of solar industry. this time helping the battle of lower-priced options from china. coalition of u.s. manufacturers say the imports are priced unfairly low because of chinese government subsidies.
2:54 pm
tomorrow the commerce department is expected to announce preliminary anti-subsidy duties. so, is that enough to help the troubled industry or is it lights out for american solar? let's bring in mr. solar, as of right now. gordon johnson, in a long, long time, advising the first short solar and made his client a bundle of money. they are cutting guidance today versus prior expectation, you have been right on the mark here. is solar going to turn around at all or is it continuing to slide down? >> unfortunately, i think a continued slide down. >> you can can only slide to zero, gordon. >> i'm sorry but i think some stocks need to go to zero. the essential reason is because have you excess over supply. essentially a commodity industry. so commodity industry is when you have excess supply. companies need to go out of business to bring back the supply and demand -- >> which ones are most likely to go to zero.
2:55 pm
>> the guys with the lowest cost, ie, chinese, will survive. when european and solar modular manufacturers compare, it is commodity industries. if china gets it right, they win. there is lower cost of labor, lower electricity costs and they. >> why are they consolidating? >> they have to. if you look at the china capacity, have you about 40 gigawatts. it'll be 18 based on our model. you need guys to essentially go away. with gcl reporting last week, a maker of polly silicone, the costs are 13 cents. point is, price kes go much lower. that includes a module price of 67 cents. >> is the president right, maybe going after some of the chinese manufacturers? should we start a solar trade war? >> i think that's the wrong thing to do, because if the president does that, it is going to push up the cost of solar
2:56 pm
modules and make the investment less attractive. that the exact wrong thing to do. we need to improve the efficiency of people who manufacture outside of china. >> who are the likely candidate to merge then, gordon? >> i think first solar is a candidate. i would like it see first solar acquire a chinese manufacture. if they don do that, i think they are headed potentially towards some big problems and we have seen that emerge with their modules, some modules failing in the field. and also, the u.s. manufacturers, if they don't buy a low-cost guy and or gettheir cost competitive with the chinese, they cannot survive. >> not a very sunny outlook for the sector but thank you very much, gordon. >> thank you. up next, what pandas have to do the most expensive tea in the world. [ male announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain
2:57 pm
so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. and celebrex is not a narcotic. when it comes to relieving your arthritis pain, you and your doctor need to balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides.
2:58 pm
get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. [ male announcer ] the next generation of lexus cannot be contained. [ clang ] the all-new 2013 lexus gs. there's no going back. see your lexus dealer. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade.
2:59 pm
well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. >> a new >> a new survey by the website, findlaw.com, says there is more divorce. divorces spike and in january and peak by the end of march. apparently the holiday season is over and they think, the kids have had a good time. from divorce to a steamy cup of dung. can we say that on tv? yeah. the world's most expensive tea

91 Views

info Stream Only

Uploaded by TV Archive on