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tv   Street Signs  CNBC  March 22, 2012 2:00pm-3:00pm EDT

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because take a look at the downward move -- >> the downward dog. >> i almost said downward dog again. in the gold market up about 0.5% today. >> thanks for watching everybody. that will do it for "power lunch." >> "street signs" begins right now. see you tomorrow. and welcome to "street signs." i'm brian sullivan. wall street suffering from a little eurosis and what mandy calls sinosis. if you can find the case, you can find safety and profit maybe an all-star all-american five-star minutes away. president obama making a push for the big oil pipeline known as keystone. coming up a high ranking democrat says he's got a problem with that pipeline and another one being proposed to carry natural gas. massachusetts congressman with us live. and if you don't carry apple's water 24/7 these days, you get
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beaten like a red mule everywhere. we're going to examine why people get so incensed if you dare question the king apple. >> the dow and s&p 500 both on pace for biggest weekly losses for the year but dow off session lows as we speak. it was down 107 points at one point. energy stocks the worst rformer of the s&p. seven of the top ten losers on the s&p are energy stocks today. the nasdaq is still higher for the week and if it can hold onto that, it would be the sixth straight week of gains for the nasdaq. all three are still holding onto their gains for march. check out caterpillar. we picked out this stock in particular. it is the world's largest construction equipment maker. and it is on a three-day losing streak. it is down 6% over that period. i want to get straight to bob pisani. you know, u.s. stocks seem to be the place to be relatively speaking if you forget china and the eurozone slowing down. >> the question, mandy, how serious are you about the
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slowing down story? the chinese seem to be interested in not bursting the real estate bubble, they're not raising interest rates and don't seem to be concerned about a consumer slowdown. but, mandy, there are a lot of consumer stock in the united states have very significant u.s. exposier. coke is half its revenues here in the united states. hershey gets most, pepsi half. costco, here's a real play, 70% of their revenues are in the united states. that's why you're seeing some of these hold up better. >> i'm going to ask you a bit about what jim cramer said last night. whether or not the retail investor is jumping in with both feet. the retail investor has been so noticeably absent. >> they are not. but i'm going to tell you something that might change their mind. wait until they get their quarterly reports, mandy. put up something, when was the last time anybody lost money in a bond fund? we're seeing biggest bond funds reporting losses in this quarter. agg on the downside, not up
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here. we're going to see people with losses on their bond funds and gains in the s&p 500. look at barclays aggregate bond fund, that's the biggest out there. it's lost money for the first time in a wliel. and i'll bet you, mandy tharks will change people's minds. >> absolutely. bob pisani, thank you very much. is it time to get bullish on america? here with us now strategist at miller taback. and small cap fund up 44% over three years. gentlemen, welcome to "street signs." peter, i want to start with you, first of all. we've often used this phrase on "street signs" and that is perhaps u.s. is the least dirty shirt in the dirty laundry basket. when you look at the manufacturing data, would you agree that this is the place to be? >> currently from an equity market standpoint, i'm not drinking the bullish koolaid. profit margins have topped out,
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interest rates bottom, inflation remaining sticky, the market to me is not expensive. it's at best fair value because profit margins are at record highs and i don't want to pay 14 times earnings for record high earnings. i think the market -- the american stock market is a sale here. >> then why are so many people, peter, as a follow-up still saying despite the run-up we've had since october, u.s. equities are still a generational buy. >> money printing clouds the mind. that's what we've seen. the s&p 500 is up 30% from september. it's up 110% from the march '09 low. and someone calls it a generational buy? i have a hard time with that. >> i want to get to you, craig, you came on "street signs" in december of last year. and you said back then that fundamentals mean very little and it creates mispriced stocks. would you still agree with that considering markets have come so far and seems to me on fundamentally better economic data at home. >> yeah. you know, we've had a nice rally
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in the market. and, you know, i do expect to see, you know, some sort of pullback maybe in the 5% range. but when you look at -- i mean, look at the last 12 years. the stocks haven't gone up for that 12-year period. there's never been two 10-year periods where the market's done poorly. so in my mind we're in the very early stages of an advance in the market. and although it's made a nice move, it's very evident to me every time you see days like today, they're very short-lived. there are people in there accumulating stocks left and right. that tells me there's a lot of people that have missed this market. people are way underestimating the large pools -- >> a lot of people have missed it -- >> have to be invested. >> a lot of people have missed it. >> yeah. [ overlapping speakers ] >> sorry. keep ongoing. >> that's all right. these large pools of money have to be -- they have a mandate to earn the certain rate of return.
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and we've had four years of domestic equity outflows. you're starting to see that now turn. and i think like bob pisani was saying a minute ago, when people see that the bond funds that they have just bought are now losing money, you're going to see the tide turn the other way. and stocks look cheap. we're finding at the hodges small cap fund, we're finding more opportunities. >> what opportunities are you finding right now? give us your top three picks real quick, craig. >> top three picks. i spent last couple weeks at a lot of investment conferences. the smartphone market is going gang busters. the applications are endless. it's amazing what's going on there. we've identified a couple companies omnivision that makes optical sensors. what you're going to be able to do with your cameras over the last few years, you're not only going to be able to deposit checks but do bill pay. be at the doctor and get a prescription filled by taking a picture of what the doctor
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writes out. the applications in the smartphone business are tremendous. so omnivision, they've made a nice move but only trading 12 times earnings. and no debt. and the companies have very bright futures. >> got it. you've got here logic, omni vision, trinity industries. peter and craig, thank you very much for joining us. brian, over to you. >> president obama in cushing, oklahoma, pushing to fast-track work on the lower part of the keystone pipeline. a congressman from massachusetts doesn't think this is a pipeline of profit and promise for america. he says we're just going to become canada's dirty middleman for oil exportation. joining us now from capitol hill, congressman, you're not necessarily against keystone, right? you've submitted an amendment that basically says i will support the pipeline if we can guarantee that the oil that's pumped through it from canada to texas will remain in the united
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states. why is that so important to you? >> well, because the oil is the promise that the americans get in return for allowing for a danger to our environment to be created. what the canadians are saying, what the prime minister of canada is saying, what the oil companies are saying is, well, we're not going to promise you that that oil after it comes all the way across the united states stays in the united states. so what is the point for our country? we need this oil here for american companies, for american industries, for american consumers. if all we are is just a middleman to send this oil to china, to send this oil to latin america, then we don't get the benefit. we need the oil here. it should not be allowed to be exported because we export young men and women every day over to the middle east to protect the oil lines from opec to bring the oil into our country. if we have oil in the united
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states, we should not be exporting it because we're still importing from opec. >> but to your own point, right, this will create 5,000 to 6,000 albeit long-term temporary jobs, maybe thousands more in the texas area because you have to build more refineries. even if they're going to export the refined product, this is still about jobs. you seem to not agree with that point. >> i agree that in the short run there may be 5,000 or 6,000 jobs that are created in the construction and pipeline. >> plus more with the refineries even if it's going to refine than export. >> but the point the oil companies and canada want you to forget is that if we then ship all the oil to china or ship all that oil to europe then we wind up with higher prices for our manufacturers of every product that we make in the united states. and that's the same problem with the pipeline built through alaska to send natural gas to china. i don't oppose the natural gas
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pipeline. i oppose them sending it to china because that should be used much lower priced natural gas for our chemical fertilizers, steel industries because otherwise we're shipping our low cost natural resources to other countries so then -- >> how is this any different than corn or wheat? which we overproduce and export to other countries. >> the big difference, brian, the big difference is we don't send young men and women over to the middle east to protect oil coming into our country. >> that's a fair statement. we're debating and discussing the economics of this. >> well, you can debate economics, but if you -- you cannot disassociate oil and natural gas from our national security. it's the only product that's like it. and when you do and only use it in a discussion like it's a computer or it's a soybean, then you're making a big mistake. >> i agree. >> on your sister networks all they're talking about is the middle east and our young men and women over there and the relationship with the oil.
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>> completely understood. which is why nbc is hiring our heroes initiative all next week about hiring veterans. a very important thing. my father was a navy nine-year man. i couldn't agree with you more. here's what confusing me. you're also opposing the $40 billion natural gas pipeline proposed by conoco phillips. we have too much natural gas here for consumption. >> no we do not. >> exporting natural gas. >> i do not oppose the natural gas pipeline up in canada -- up in alaska. >> you want to use domestically, but we don't have the demand here. >> i want the natural gas to be used here. i'm sure your viewers all know that there is no international market for natural gas. so our price for natural gas in the united states is six times lower than china. they have very low-priced labor. if we also send them the low-priced natural gas, they're going to send back every product
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to the united states. it will be a one-way trip to manufacturing oblivion for the united states if we match up their low price labor with low price natural gas that we send them. >> let's agree to a compromise. how about this, congressman, i think we can find common ground because i know you don't in principle support natural gas from canada, but tax it i know you have a big beef about the tax zone in port arthur, texas, build out an infrastructure which would reduce consumption of oil and thus reduce our dependence on foreign oil and increased natural security. can you agree to that? >> we don't have to do that. the price of natural gas will be so low without the tax that we will make the conversion over to natural gas vehicles in our country. the utility industry will use the low cost natural gas to provide to their consumers and benefit all manufacturers and all consumers in our country, the lower the price, the better it is for every business in our country. >> we agree on that.
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>> you're only talking one business, oil and gas. >> are you upset at the president for supporting the extension? >> the president right now is only talking about from oklahoma to texas. >> that's what you're upset about because you're saying once it gets to port arthur, it will be refined and exported. >> no. the real environmental danger comes for the canadian oil that's coming across a very environmentally sensitive aquifers and other parts of our country. if the canadians want us to build that over our land and then say not american for north american, otherwise it's a lie. one big false advertising claim that should take for unfair practice. if it's unfair, say it and do it. don't say we're then going to export it and leave that in the small print for americans not to understand. so every ad on every network says american energy for
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americans. >> i agree. much of this oil will probably never be used for u.s. refineries and u.s. consumption for gasoline once it's refined for an export market. we have to leave it there. i'm sure the discussion will continue. i appreciate you coming on our program to talk bt. >> it's a big debate over false and deceptive advertising by the industry. thank you. >> thank you, sir. the president's left jab at republicans for politicizing the keystone oil pipeline will be a large part of tonight's "kudlow report." i'll be talking about this. isn't the president playing politics as well? we just heard from congressman, we'll have an exclusive interview and another exclusive interview ron paul joins us live. we'll ask him about this among other things 7:00 p.m. eastern time. tune in i haven't been broadcasting long enough today. on deck, yesterday we made the bear case for apple. and between the e-mails and
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tweets and pigeons and everything else, we took heat for it. why can't anybody criticize the stock? why can't you talk about it? we're going to debate that issue, mandy, coming up. >> we certainly will. and then the nfl hands down its version of the death penalty. and it couldn't have happened in a more fragile place. how will new orleans deal with yet another blow to its still recovering economy? tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then to track the stocks i have my eye on, tdd# 1-800-345-2550 i turn to schwab's high/low ticker. tdd# 1-800-345-2550 so i can spot a potential breakout tdd# 1-800-345-2550 before it breaks out. tdd# 1-800-345-2550 and get this...i can even trade, tdd# 1-800-345-2550 change my orders or check out my positions tdd# 1-800-345-2550 right on my chart.
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do check out do check out shares of priceline.com. we've been talking about this company all week long.
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and look at this hitting yet another high. and piper jaffry, get this, out with a research note saying that priceline should hit $1,000 in two years. >> very optimistic auto headline has the hopium in overdrive. phil lebeau has that story for us. phil. >> mandy, we're talking about volkswagen. remember it wasn't long ago we talked about them opening a plant in tennessee. now they are adding a third shift at the plant in chattanooga, tennessee. the third shift will mean another 800 workers going to that plant. about 2,700 when all is said and done will be working there. the expansion is to keep up with growing demand for a new passat. earlier today when we talked with the head, he said it's not just the passat but all autos that are growing in demand. >> currently forecast for 13.7 million vehicles which is up almost a million vehicles compared to last year. we think it may run slightly stronger than that up towards 14 million. >> and we may see people coming in with estimates well over 14
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million. take a look at where vw is year-to-date in sales trailing only chrysler among the major brands. when you look at volkswagen stock over the last three months, investors have been pleased with what they've seen here. a gain of 20%. remember, mandy and brian, it wasn't long ago we reported full year earnings last year $20.1 billion. >> look at it goe. go. thank you very much for that. >> the big beneficiaries of this boom, dana holdings, their stock performance for the last few years has been out of this world. in fact, up more than 3,000% over the last three years. this despite nearing bankruptcy just about four years ago. let's bring in brian johnson, senior auto analyst at barclays. and i think, brian, it's important to note that final point i mentioned which is this was essentially a 20-cent stock because of all the bankruptcy
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fears. it's gone back to nearly $16 thus the 3,000%. do we need to believe that this time, and we mean it, dana holdings, is out of the woods? >> yeah. it was a second near-death experience in 2009. of course they did file and restructure in 2009. now it's got tailwinds from the automaker that phil talked about from the commercial truck market. down here in louisville the largest truck show in north america going on. dana was down there showing new line of axels. it's looking pretty good with the economic recovery. >> okay. so you talked about the tailwinds. what are the headwinds for this company? >> brazil's truck production in first quarter is going to be soft. we've got that built into our estimate looking for a little soft start to the year. but that's probably temporary as they work through some emissions control changes. >> who else in this sector would present any competitive threat, brian? >> in north america in the truck and commercial vehicle space
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they compete with another company also on a good recovery path. in axels competing and also american axel which supplies gm. >> you still think this is the one that stands out for you? >> yeah. in the light vehicle space everyone has their kind of own set of supplier customer relationships. and so they get really the benefit of the ford superduty truck here down in kentucky. they get the benefit of the jeep wrangler, which is a hot product in the u.s. and one chrysler is exporting as well as exposure to the commercial truck markets around the world and ag equipment. so with dana you get that diversification. >> thank you very much for joining us, brian johnson, with your outperform on dana. have you noticed last three out of this world stocks that we've done this week were all on the brink of bankruptcy and literally on the brink back in the depths of the crisis. admittedly off a low base,
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amazing how well they've done. >> good for next week maybe companies bet on almost a bankruptcy that did go into bankruptcy. >> yeah. that's next week. >> under the rug stocks. five names no longer exist. >> ahead in the second half of the show, the $5,000 manicure. yes, $5,000. plus, when angry birds attack. will zynga do to game stop what netflix did to block buster? sounds like an s.a.t. question. that's herb's view and he's coming up on "street signs." [ baby crying ] ♪ what started as a whisper ♪ every day, millions of people choose to do the right thing. ♪ slowly turned to a scream ♪ there's an insurance company that does that, too. liberty mutual insurance. responsibility. what's your policy? ♪ amen, omen how do you know which ones to follow?
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there's nothing there's nothing angry at all about zynga today. the angry birds creator soaring after buying omg pop that is the creator of the new it game drill something. angry birds is the most downloaded game in history. but can those crazy birds keep soaring with their latest game? or are they a little overexposed? julia boorstin is all over that story. what have you found, julia? >> angry birds is made by a rival to zynga, and right now the newest game called angry birds space is off to a flying start. it's currently the top selling and top grossing app on the iphone and ipad in the u.s.,
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china and japan. people spending between 99 cents for the iphone app to $5 for the game for your mac computer. game maker has everything riding on this game that's grown revenue from just $10 million two years ago to $100 million last year. e-marketer analyst tells me that it's quite unusual for a game to maintain momentum for this long. a new licensing deal with walmart raises the risk of overexposure, but if it works, it could generate millions of dollars in revenue. to compete with leading game maker zynga, which just yesterday bought a leading app maker, rovio needs to stay ahead of potential angry birds fatigue. the stakes are very high for rovio. the company wants to go public on the hong kong stock exchange this year. mandy, back to you. >> julia, thank you very much. >> from angry birds to angry herbs, does the success of angry birds mean it is game over for gamestop? it's been a big battleground stock.
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herb, do you think -- yeah, what's your argument here? >> i actually am not terribly angry about this. but it's a great story. in fact, this is shaping up to be one of this year's really great battleground stocks. the big question is whether zynga and the rapidly changing world of gaming is doing to gamestop what netflix did to blockbuster. investors are betting it is. just look at this chart. it's gamestop's short interest versus its share price so far this year. the short interest to bet against the company has spiked over the past few weeks. it's now 41% of gamestop's shares outstanding. making it the most heavily shorted stock in the s&p 500. here's where it gets interesting. the company announced earnings this morning. its stock started in the green even though comp store sales and guidance were dismal. the stock then faded into the hour-plus long earnings call. among other things, the company's calmed investors concern about the timing of microsoft's next gen console and
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importantly whether the new platform will block used games. which gets us to the guts of the battle. can the company pull after its digital transformation? can its high-mar january used game and used products business continue to thrive? should investors be comforted by its lack of debt and huge cash flow? with all that cash, gamestop has become a stock buyback story. which leads to the final question, is that just a stopgap to the inevitable blockbustering or zyngaing of gamestop? i have to tell you something interesting here because i've talked to bulls and bears on this stock. one of the bulls who i think we may be having here tomorrow is tony of janney montgomery. he's one of the biggest bears on netflix. he loves this company. he's trying to say it's a longer term bet. and he thinks it's just a layup for an lbo. so it will be interesting to see where this thing goes, but i will tell you, when you talk to
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the other side, you get just as compelling an argument than people think it's only a matter of time. >> the one thing i like they're doing and it's the first thing you see on their website is they are offering a cash trade-in program for ipads. if you have an ipad 1 and you want an ipad 3, they will pay you cash money on the spot for an iphone or ipad. a lot of people don't want to put them on e-bay. so in a way they're on the back end at least taking advantage of the surge of the tablet. i agree about the video game sales. >> if some people believe that sort of blunting the blow right now, but i can go to gazelle or gizmo trader. any number of places, best buy, and i can also do that trade-in. >> a lot online, but i'm talking about the physical location which by the way a lot of people enjoy having the physical location. how are you going to get your 12 nuggets and sauce? >> it's a fragmented market. it is part of the bullish argument on this story. >> and we are going to continue that as you say tomorrow. and by the way i've become quite an addict of angry herb. i play it all the time.
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coming up next on "street signs," the apple force field. why is it so hard for anyone to criticize the golden fruit? >> and selling american secrets. an american scientist caught in the act of trying to betray his country. special report from our ink team. back in a moment. [ horn honks ] hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. since ameriprise financial was founded back in 1894,
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90 minutes left in our trading day. what is the street talking about? well, first up the markets are on a downside today, but a trio of companies going public today are holding in the green. exact target up 31%. vantiv up 18% and caesarstone up 11%. trading at levels not seen since june 2002. as for what's going on in the commodities where the old trades are coming in, let's get straight to sharon epperson at the nymex. to what extent is oil like other commodities su sccumb to a stronger dollar. >> impacting what we're seeing net oil markets and the commodity complex in general and we're looking at oil prices of the wti contract down about $2. we're above the $105 level but still technically we've lost almost 50% of the gains made in that contract since february. so that is something that traders are watching carefully
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and also looking at this brent/wti spread that continues to widen despite president obama talking about the keystone pipeline making a priority for the southern leg expansion. we're still seeing the risk premium in this marketplace play out in the widening of that spread. and the discussion with representative markey and the belief we're going to export oil we're already exporters of petroleum products in this country that happened at the end of last year. that's already been occurring. and, of course, this concern will exacerbate that. there's no demand here for that gasoline. it's got to go somewhere. >> a great debate. thank you very much for joining us, sharon epperson. staying with commodities, gold and coal are so five minutes ago, but our next guest says they're actually two of his favorites. let's bring in portfolio manager of git capital partners and we'll get onto your picks in the gold and commodity sector in just a moment. you are portfolio manager of the git value advantage fund up 34%
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over the past three years. but you're out there trying to dig for value stocks. so what extent is it now rather difficult to find value stocks considering how many stocks have run up this year? >> well, mandy, you're exactly right. it's not as easy as in the past, but still able to find them. >> where? >> well, natural resources is one area and also in the technology area, there's still values there. >> let's go through them individually. for example, you've got a gold company which you say kind of lost its luster. i mean gold prices have also kind of lost their luster. my question to you is to what extent is this a company that can still make money if we have gold prices around $1600 an ounce or possibly low sner. >> they can make very good money at these levels. this is a company -- a very high-quality company and they've stumbled. that's the reason why the stock price is in the bargain basement, if you will. >> let's talk about another one. this is an interesting name. alpha natural resources.
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okay. coal has been slaughtered, natural gas we just talked about is so cheap. you see the conversion from coal to natural gas. your bull argument on anr seems to be this, it's mostly met lerj call. isn't that risk to china slowdown? >> absolutely. i think if you look at price, a lot is priced in. >> rudy, thank you for joining us today. >> thank you, mandy. >> shocking new video now. an american scientist caught in the act of trying to betray his own country by selling secrets to a foreign intelligence agency. cnbc's eamon javers here now with the details. eamon. >> hey, brian. well, american defense contractor seemed to have it all. he had a phd. from m.i.t. and now a satellite now displayed in the smithsonian air and science museum. he worked in the national laboratory and on the star wars
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satellite defense system. but apparently he didn't think he had enough money. and the government says in a 2009 meeting at the mayflower hotel in downtown washington, he offered to sell some of america's most sensitive secrets to a man he thought was an agent of the israeli ma sad intelligence service but that man was actually an undercover fbi agent. the government showed publicly the hidden camera video of the meeting with the spy including the moment he detailed just what information he could turn over. although in this video the government has blocked out the name of the sensitive program. >> the program alone i gave them samples. okay. what i've done is i've copied it onto hard disks and put it in a safety deposit box. >> and later fbi cameras caught him as he took an envelope with $10,000 in cash.
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take a look. >> now, the other thing is, i think i've been very good with cash. i've been able to make it disappear. >> here's. [ inaudible ] so there's ten. >> brian, he was arrested right in that mayflower hotel room shortly after the fbi made this recording. and yesterday he was sentenced to 13 years on attempted espionage, fraud and tax charges, brian. >> fascinating story. thank you so much, eamon javers. how about that? >> disgusting. >> really. coming up next, the big winner from etch-a-sketch. >> and the big fallout in the big easy over the nfl's bounty scandal. how much will this hurt the team and the town that the saints themselves really helped rebuild?
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aisle i'm bill griffeth. at the top of the hour, terri duffman whether the firm's strategy will be effected or not. and should you buy or sell nike shares ahead of earnings announcement? we'll break down the charts. and is the president's latest move about the pipeline all about politics? both sides of the aisle weigh in on that topic. maria and i both look forward to seeing you here at the top of the hour. >> thanks, very much. the fallout continues for the nfl's bounty hunter decision to
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suspend new orleans head coach for a year. and to put how much perspective the saints mean to the big easy, consider this, average ticket went for about $75. stadium holds more than 78,000 fans and tickets went for more. goes to show you how die hard the nation really is. let's bring in darren rovell. bottom line, is this overly harsh by roger goodell, the nfl commissioner? one year? >> they have -- >> two draft picks? >> they have 47 active concussion lawsuits against them right now. and they have to show something. i think what's important here is is new orleans -- how attached are they, the football team to new orleans, their comeback since katrina. what they've done on the field almost mirrors what they've done in new orleans. the flip-flopping of schools from the worst to close to the best. you look at the underdogs, new
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orleans were the underdogs, had to come back. drew brees, the guy who couldn't pass, marcus, the guy drafted in the seventh round. >> nobody's suggesting what they did isn't egregious. i think it would be better served at least in my opinion as a sports fan fine the heck out of them more than they are. fine the heck out of them. use the money for good causes, whatever. hit them in the pocketbook, right? what is suspending him for a year going to do? >> well, i guess it's to say there's accountability. that there's accountability there. but this never makes sense from a financial perspective. never makes sense. these guys are making $100,000 a game and they're offering $1,500 bounties? how does that make sense at all? >> what are the implications for the players here? which players have the most to lose? >> jonathan, the saints play who are is a star linebacker, he's the one who actually called out $10,000. and if he's suspended for a
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significant period of time, this can have an impact on the team, which i really legitimately do think has an impact on the city. there is a more of a connection between the new orleans saints and their city than maybe any other team except for green bay. >> this is quite an economic hit for the town. it's like a double -- >> it won't happen immediately, but if they start to lose and go back to the bag over the head ain'ts, get drew brees signed, if this is a beginning to spiral, i think new orleans is in trouble. >> that is sad. they really don't need it right now. thank you very much for that, darren. diamond foods is making herb a little nuts. you can excuse the pun. >> that's okay. i will. just this once. diamond foods getting whacked today because the company late yesterday came out and said they're suspending their dividend. they do have an extension on their credit. but what's interesting in this there's little talk about
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private equity investment, but that would be through a pipe that's usually better for the people making that investment than the public investors in the company. it shows you how dire this company is right now. we'll see where they go from there. also i want to bring your attention to the etf that trades the vix. it's gone nuts. lots of people sort of in the know saying why does this thing continue to trade? i want to bring it to your attention. complicated story, pay attention to it. >> it is a complicated story. we're paying attention. >> that's the most concise hit you've ever done. boom, boom, boom. done. >> okay. our sunshine stock today shows just how any publicity can be good publicity. we're watching shares of ohio art. that is the company behind etch-a-sketch up as much as 212% today. currently up by 141% followed by remarks that a mitt romney advisor starting the campaign was like shaping up an etch-a-sketch. his opponents jumped all over
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that remark including rick santorum who handed out etch-a-sketches to some supporters. market only around $8.5 million. just 800 shares being traded today. so that's why you get those big moves. >> been around forever. since i was a little kid. yes. ohio art. >> and was it slate back then? >> back then it was slate. and we made it work. it was the first level of technology, yes. >> triser top fossil -- were you hanging out in caves in france? >> i was indeed. >> here's a lesson we're learning. don't you dare dis apple. don't suggest it's overvalued or the ipad may get hot. if you do, you're going to get e-mails you suck, sully. basically. that's what you get.
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the tweets, whatever it is. >> it's got nothing to do with apple. >> yeah. we're going to meet back after this with the don't diss apple phenomena. >> we'll be back. any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. omnipotent of opportunity. you know how to mix business... with business. 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.
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talk talk about the power of the
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iconomy. u.s. companies over $500 billion, apple and exxonmobil, microsoft and ibm, not separately but combined. brian? >> and not only does apple have the biggest market cap, the fans boys, of which i am one. we even had an apple stock bear on to make his case. we got tweets and e-mails. here's what a few of you had to say. i hope you guys are reminded to lose his clown suit at home. then, ravi romo, cnbc is at it again. shame on you. do you have a vendetta against
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apple? and then, this one runs hotter. so can anybody say anything critical? joe wisenthal and herb greenberg who is going to sit quietly. >> big reader of joe's stuff. >> the three of us are there. 4:00 a.m. >> that's right. >> and tweet us, what did i miss? >> first -- >> look, people who think it's too hot to handle, you know what? go to bed, bath, and beyond and buy a darn oven mit. there's nothing wrong with oven myths. >> you can buy the apple store. >> zag. you try to keep it down. i love that. >> first of all, herb's point is the difference between the stock and the products, which
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everybody loves. you're out there tweeting and writing. you probably know this better than we do. if you criticize apple in any form or fashion, even taking somebody else's stuff, why are people so doiggone angry. >> people like to criticize everything. and then a long time before it was the darling stock that dominated the entire market, there was apple fan boys convinced for a long time that their products are far superior to anyone else. they may have a chip on their shoulder, maybe complex about the fact that apple as a company still wasn't getting the respect they deserve. so there was that. and then there's the stock angle and the fact that it's only gone up for a long time now.
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is there simultaneously in love with it, they are terrified of it because it dominating the market. they want to sell a little bit. >> and if it folds, it hurts the overall market. >> right. remember, the key thing is, we see this often with most tech be companies, going back to the original megas. people love the product and they assume -- and the key for them is when will you hit the inflection point? >> the key is, there is a stock and there's a company. i love apple. i've been using it for 15 years. but i'm not going to sit here and say, apple bull, apple bull. >> literally, someone said you guys talk too much about apple. and i say, listen, when the world series is on, you write about it every day. what happens is, you have to comment on it. you shouldn't have to comment on
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it all the time. and you're not. i love what you say. one of the things that herb has taught me, challenge your thesis. if you really love something, he comes out and says they are not paying the walnut grovers. >> people come out and read you your due diligence and then they buy more and you can do what? >> there as many loyal followers. is there anything out there? >> write about what? axon? >> there was a day when it was r.i.m.m., lululemon. >> joe was trying to make a point -- >> one at a time. i just wanted to say that. >> i'm trying to help you out. >> all these tech companies have a moment where people love them but then it goes -- it falls off the cliff. apple seems to have had a few
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threats. >> the antenna issue. >> right. or android. >> hot as a pistol. >> dominating the market share and then apple has been beating back the android. and when ipod first came out, the margins are going to get creamed on this. so the apple bulls and apple fan boys feel obviously very enthused by the fact that every time it looks like -- >> they have been vindicated. >> they have been vindicated. >> can we make a different argument, then? is the lack of apple criticism, right, amongst anybody, and i'll include us in that, is that a bad snithing? >> well, look, the proof is in the performance. >> maybe some people will return the ipad 3 or new ipad because they don't like the feel of it. >> amazon hasn't destroyed this.
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>> i don't know. >> you people are looking for flaws in that. this whole thing about the ipad being warm, it's not even that bad. consumer reports said, it's not that uncomfortable. people want to find the flaw in words. >> and gene munstrung has been right. what are the concerns if the iphone momentum were to slide? and i think we are all looking for something here. >> okay. we've got to leave it there. thank you for coming on. >> stay skeptical. >> again, jim -- >> jim, baker cramer. you have the oven mit on. >> "closing bell," a much more sane program than this one, is next. >> see you tomorrow. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker
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