tv Street Signs CNBC July 26, 2012 2:00pm-3:00pm EDT
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moving. 36% gain earnings news. very nicely done. that does it for "power lunch." >> "street signs" begins with the dow jones industrial average up 193 points. see you tomorrow. and welcome to "street signs," everybody. brian is off today. well-deserved rest. a surge on the street from helicopter bins and money drop mario. traders find joy in ecb is ready to do whatever it takes but is free money a good investment strategy? is this economy stalling? trifecta are going to be on the show to tell us. plus, a mea culpa of a reformed zynga bull. and dunkin' donuts trying to raise the bottom line. the rally is on. the dow is hovering around a
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200-point gain. all 30 dow components to the upside. walmart is hitting another new high. that stock up 24% over the last year and cheesecake factory up almost 9% for a new 52-week high. that's a lot of calories. the biggest loser on the s&p 500 is advertising giant interpublic. so lots of things to look at. let's get right down to the nyse with bob pisany. forget the bernanke or the draghi put. this is the global central bank put going on, right, here, bob? >> that's right. the dow's up 200 points. i'm happy. for any rally overall. i don't particularly like the mix. be happy everyone says. higher priced names are moving. ibm up, 3m up. the big market movers, there's a lot of utilities, a lot of consumer stocks that are moving
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the market. you would think you get a day like today with the dollar down, big industrial names all moving to a big on the upside and not happening. look at this. some of the big names. caterpillar not doing anything. united tech after earnings up basically flat. just kind of fractional moves to the upside. big material names on a down day for the dollar. normally a nice move up, mandy. not seeing that in the materials either here. alcoa is flat. flat to the downside. that's what i mean to the mix. i believe the markets believe draghi can have some influence but overall he won't turn around europe by himself. >> excellent points there, bob. thank you so much. is this just a preview of what's to come? is the market ready to run? joining us here is darren sharinga. a new face here. great to have you on the show today. >> great to be here. >> bob is skeptical of the mix
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here. the central bank put and rally, is it going to fade or hold for sometime? >> i think the market's rallying on promises we need a plan to go with the promises. now, what i look at, though, what they're planning is increased liquidity and the economy appears to be sputtering on a global basis. what does that mean? inflation. so investor haves to look at how do we hedge against inflation? probably extreme volatility in the markets right now. low interest rates and you don't want to be in bonds in an inflationary environment and we have mastered limited partnerships. >> looking for yield? >> looking for yield and a hedge against inflation. because it's not a high current income rate. the universe indices yields 6.5%. 80% of that is tax deferred. and this year currently they're growing at 6.5% distributions. >> within the mlp universe as you call it, where should people be looking at?
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>> if commodities rally, look at mlps so that represents approximately 20% of the asset class. picking up greater yield, faster distribution growth with no greater risk profile so for us that's the mispriced segment of the asset class. >> three up there for the viewers to look at. some of the ones you are looking at within the mlp universe. going back to what the central banks can potentially do, is it all rendered useless over ineffective if we reach the fiscal cliff and go over? >> well, if i'm not self servingly but a little bit. looking at the mlps, 80% tax deferred income, you're hedging a portion of the income against a fiscal cliff. if taxes rise, 80% of the income of an mlp is tax deferred and unaffected by tax rates and as a prudent investor should be taking a portion of the portfolio and investing in mastered limited partnerships. >> i would imagine a lot of
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clients tell you what's keeping them up at night. what keeps you up at night about the market? >> i wish there's greater transparency in the market. we have a crisis of confidence not getting around until we have concrete plans. >> okay. concrete plans is what we want, whether we get them or not is whole different question. thank you for joining us today, darren. zynga is taking a beating following the big earnings miss after the bell last night. the stock down by about 39% after falling short of estimates on profits and revenues as well as lowering the guidance. our next guest was on "street signs" a month after zynga's ipo tauting the company's growth potential. >> biggest, the leader in the space and taking advantage of it and they're not just sitting around idly. they're launching more games in 2012 than ever before and i want to get on board and go for a ride over 12 months. >> go for the ride. huh oh. today, though, rich greenfield
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downgraded zynga. he joins us. very brave of you to come on. thank you. not the only analyst losing faith in the zynga story but the stock is falling off a cliff since march. ipo'd at 10 bucks. now at 3 and change. what took you so long to come around to the idea? >> it's quite clear for sometime now the overall usage of the games and on the facebook platform were getting less usage. however, the thing that management, you know, repeatedly pointed to was that monetization is something they don't see every day and they tried to focus people on the side which is not as visible. the reality is not only did monetization not improve but it's falling and so you have kind of the double negative of falling usage and falling
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monetization and management seems unable to deal with the fact that the mobile transportation is happening much, much faster than was expected and what i think is so shocking as an analyst and for investors who are involved this stock is that you have the company, you know, management including the founder was selling stock back in march at $12 a share in a secondary offering. they raised guidance at the end of april. >> right. >> and in just a span of three months, in three months guidance cut in half from where they raised it back at the end of april. >> why are you only downgrading to a neutral and not a sell? >> to be honest, the company has a dollar 85 of cash. they own a building in san francisco that's probably worth another 20 cents or so a share. they're -- you know, to believe their current earnings are worth less than the cash on hand and
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some value for the games they're generating is difficult to believe there's massive downside from here. it's obviously collapsed on the news in the last 24 hours. there's nothing to do to fix this. >> this is herb greenberg. we look at what the sale of stock by the insiders, the secondary, when they had the early lock-up, wasn't that a sign? shouldn't that have been a sign that they were all getting out? under the guise of liquidity and in the end a greatest short sale known to mankind? >> i think -- >> we do seem to have a bit of a problem there with the audio. thank you very much for joining us, rich. meantime, a market flash with brian shactman. >> two auto parts makers. teneco and they're both light on revenue and see what happens when one is better on eps and the other isn't. tenneco beats, federal-mogul
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doesn't. more than 50% of the revenue outside the u.s. and a stark contrast. double digit difference between the two. back to you. >> thank you. herb, back to you. a pity we lost rich. i really wanted to know what does he want to see management do and lost faith and what to do to turn around. >> i want to know about the stock sale. >> virnetx. >> this is one of those great profit-less patent company that has some patents. a lot of people excited about. the hostile reactor meter is spinning out of control and the stock's down i think for two reasons. one is some bad news which is a reminder of a patent story goes bad and a very interesting piece that actually just went up on seeking alpha and i think the decline is more stuck to the news and focusing on right now. just reminding people there's risk in the story. it is not a slam dunk. that it's going to get the
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patents. when the patents it wants or that they'll be valued at the level. at's for important. when's the value of the patents? it's so cloudy and can take years. >> a give and take. okay. thank you so much for that, herb. talk to you later. meantime, up next, facebook investors not liking the zynga newless. telling you a moment ago it's at all-time lows. will it be worse reporting after the bell? plus, we head to the front lines of the real economy from cranes to carls. what are the ceos reading between the lines? right after this break. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow.
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the numbers have been telling us the economy is slowing to a crawl. is that the case? well, two ceos on the front lines here to tell us what they're seeing. group one automotive is one of the largest american autototive retailers in the u.s. let's begin with terex. the ceo joins us now. great to have you on the show once again. you upped the full-year guidance and i believe the operating margins really stole the show and beg it is question, how
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sustainable is that performance? >> well, we think a lot of room to improve is in front of us because of our own execution. and the mix of our business, really, helps us a lot. we're pretty broadly based. we have, you know, somewhere around 70% of our business outside the united states. but we also have a pretty big business in the united states. but by focusing on execution, pricing, cost control, and really cash generation, it's really made the difference for us and the opportunity in the back half of the year, as we. we don't expect to be helped a lot by the markets. >> can your execution overcome of the warning signs throughout? the auto backlog, down in the second quarter compared to the first quarter s. that potentially a sign that it could be trickier in the second half for you? >> we don't think so. and particular in our core businesses of area work platforms and cranes, there are really clear signs from our customer bases in both of them
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that they need product. we sell to large rental companies and rental companies fleets are highly utilized, rental rates are excellent and used equipment values are terrific so when those three things happen and the fleets are old there's a good chance they're gong to need equipment an enthat's going to help our business. it's pretty seasonal. >> let me ask you about something that's potentially out of your control and that's foreign exchange headwinds. you have exposure in western europe, i think, in particular. do you expect to see a negative impact going forward from the stronger dollar? >> we definitely have. we took down the revenue guidance because of that but, you know, we see foreign currency affect us in all kinds of ways. maybe the revenue but maybe not the profitability as much as people might think an one of the big understandings of terex is so much exposure to western europe and because of the negative news in western europe everyone sold our equity. well, i think our performance today demonstrate that is our
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business is a little bit more balanced and not just a european story. >> ron, i have to ask you and i'm going to ask every one of the ceos today about the fiscal cliff. what imspakt that looming fiscal cliff having on your decisionmaking and your business? >> the fiscal cliff is an issue and the policymakers in europe. it makes us cautious. it makes us want to see the same minds look at a problem, deal with that problem and move on and move forward. you've got to believe that that's going to happen. but you really begin to be cautious until that happens. >> is it stopping you from hiring or from expanding? >> no. it's really not stopping us considerably from hiring or expanding. but i'm probably not going to make that next investment until i know what that's going to be and look at what our 2013 performance is likely to be and be more cautious than optimistic, not on earnings as much as deployment of capital.
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>> understood. thank you very much for your candid response. and now group one automotive saw a boost from booming new car sales. that stock over three years is up whopping 78%. president and ceo of group 1 automotive joins us now. for the ninth quarter in a row, do you believe that business is going to be as good in the second half? >> well, it has the potential to be that good, mandy. we're in the middle of a pretty good auto retail recovery. we are back to 14-plus million units and we were traveling at 17 million before the drop to 10 million units a year as an industry during the recession. so, we still have a lot of pent-up demand in our business so we still have some pretty good prospects we think. >> that's the question in terms of what's driving that business? is it just pent-up business? because people held on to the old rusty clunkers or do you feel that people are confident enough to get out there and buy
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a car that they really want? >> well, consumer confidence is part of the equation and it always is directly core lated to auto sales and consumer confidence better today than a year ago or two years ago but i would say that consumer confidence is still a bit fragile. you know? seeing the storm clouds that you report on every day from europe and around the globe, we have to be very cognizant of that. the average age of a car near 11 years old. that's the oldest it's ever been in the u.s. the quality and the age of the trade-ins we're getting would bear that out. so, it's a combination of better consumer confidence and pent-up demand, i think. >> low gasoline prices or i should say lower to results, as well. tempted people to buy more cars. >> it does. >> how closely core lated is that? >> not as much as the other two factors. it allows people to maybe buy
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suvs and trucks a little bit more. but it's also a factor because when people save money in that monthly budget from gasoline, they do have a bit more discretionary income. >> the same question of ron a moment ago. fiscal cliff, how does it factor in your business and decisionmaking? >> that's a consumer confidence item, we believe. we have to be very vigilant. i think everyone in our industry will watch that carefully. one of the advantages of our business model is a flexible cost structure. that's people advertising and inventory. we generally back off a little bit in the winter. we'll be watching carefully to see what happens. so it's a concern. >> earl, thank you so much for joining us and giving us the pulse check of your business. >> my pleasure. just ahead, street talk rallies stock edition and jcp shaking up the pricing again. the sales rack will be back. is this a right direction?
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cat. they have now beat on earnings two consecutive years. they're guiding atv sales flat up 5% and previously said it might be a decline and in terms of discretionary income, mandy, people like the off road vehicles. back the you. >> one hot cat. thank you. if you want proof of the devastating effects of this summer's drought, check out the price of corn. jumped 50% since mid-june w. the scorched crops, really having an impact on ethanol makers. jane wells is following the story from inside america's corn belt. omaha, nebraska. jane, is there a future in ethan ethanol? >> reporter: well, some people wonder about that. i'm on the trading at green plains renewable energy in omaha. they buy a lot of corn in this room for making ethanol. the 52-week low. the company swung to a loss in the earnings report yesterday, now trading below cash value. and it may seem like ethanol is a zombie industry no matter what
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happens, it won't die. >> well, look. when you're in one of the most hated industries in the world, it is interesting and challenging. >> reporter: the ceo says he can hang in there as the company diversifies. more importantly, it's locked in 40% of what it will pay for corn and what it will get paid for ethanol in the fourth quarter to return to profitability but a lot of people want the government's mandate forcing a certain amount of ethanol produced lowered and already refiners buying less and becker argues they can't buy too much less. why? listen to this. he says blenders now count on ethanol's high 113 octane. he says most only refine to 84 octane which you put in your car. they've learned to depend on ethanol to make up the difference. >> if you want to replace this octane, you have to buy something much more expensive than ethanol today and so the
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industry is much healthier to withstand there. we'll see some guys go down but in general it's a much different experience than '08. >> what happen if they buy more ethanol over the next few months than people expect, demand elsewhere for a lower corn crop will have to give. mandy? >> interesting story. one we're following. thank you very much, jane. coming up next, dunkin' donuts attack on the senses. and how the robots get your order to your door. ♪ ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪
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"street talk" today. let's start with western digital. these are arrivals, western digital and sea gate technology. >> you have western digital with great numbers. sea gate with interesting guidance a little while ago. what's interesting here is you have a duopolopy in the space and look at the stocks. just back to where they were in march and april. >> okay. as for pultegroup, what's going on there? >> it's interesting. on the conference call the ceo said they're still selling homes at a preposterously low number of homes relative to historical trends. they have 6,400 homes under construction or were in the quarter. interestingly, 75% of them were actually sold, 25% more spec. i was intrigued of 25% and speaks of low interest rates wanting to move them through.
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i didn't know we were still building this. >> selling more houses off of a very low base. cabela's is soaring. >> big -- you know, the big stores, the big sporting goods stores throughout. >> camping, outdoor gear, right? >> the numbers are actually pretty good and the issue is not the issue, they're actually building smaller stores and a knock they took were the stores way far apart. see how that goes forward. optimistic as you would expect. >> in a sketchy economy more people go camping instead of hotels. what does it cost to stay in a tent? >> not much. >> insect repellant. >> a lot. >> the u.s. largest barge operator. >> the better use of the barges, kirby, because of oil. this seems to be driving that company right now. >> bank of america raising it to a buy from a neutral. and the plan was only supposed to talk about those stocks but you snuck in a couple to talk about, as well.
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right? >> everything's not always going up. look at the for-profit space. again, the hard reset continues for the business models. the latest are itt education and strayer. one way or the other, had some news people didn't want. you know? lower enrollments than expected. really terrible guidance for both of the companies or at least for strayer. missed estimates. so it's just more of the same in the space. see it go through as each and every one of the companies reports. >> couldn't let us have a list of rally only stocks. >> just a little dose of reality here. but there's two sides to the market. >> i hate reality. meantime, shares of crown castle international reaching a new 52-week high today. in fact, in just the past month, reaching records. the earnings came out. beat expectations and raised their full-year guidance. but will consolidation among the carriers be a headwind going forward? let's bring in ben moreland.
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great do have you on our show today, ben. i want to ask you where you're getting the confidence to continue to see demand from a number of these wireless carriers going forward when a number of them are consolidating. >> thank you. it's great to be with you. our company is little bit unique with long-term contracts with the major carriers. in our business, we have had over nine years of revenue in the future and we have high level of confidence in the future results and growth. we're seeing a lot of growth as all four of the major carriers are upgrading the networks to accommodate 4g services for the broadband and mobile internet services we desire. seeing a significant amount of additional equipment put on the towers which results in additional revenue. what's really important about the business is it's really a shared infrastructure model like so many others that provides an efficient way, really, the low-cost way of carriers to add capacity. we own the common elements being
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the tower and the ground and allow them to share the elements of our sites and enable them to occupy the sites less than otherwise cost them to do it on their own and seeing growth in the business right now. >> let me jump in. you mentioned 4g. there's a big upgrade going on and lte, as well. how long does that last for? for a year? for example, what happens from 2013 and beyond? >> we can see a runway out to next two to three years with the carriers' networks today and announced by the major four. we have to see the consumer model around the use and data of services and mobile video and things we have come to enjoy. certainly we see a good runway for the last or for the next couple of three years and been in the business 12 years and always looked out about that far and constantly never able to keep up with wireless demand in the industry. and that's certainly doesn't look like that's abating right
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now. >> let's talk of acquisitions. there's reports of t-mobile selling 7,000 towers and can you confirm that for us? >> well, i wouldn't confirm or deny anything of the sort but as we look at acquisitions, we always look at capital alocation. the way we think about it is buying towers on the open market through the stock exchange or buy someone else's site where is we think that growth profile is more attractive and so we have worked very hard to do things that drive long-term free cash flow per share and i might add over the last ten years we have grown free cash flow per share tenfold and this year at $3 a share of free cash flow. >> i'm asking the ceo on the show about how they're seeing the fiscal cliff situation and how it's affecting their business. can you tell us what's going on? >> well, i would say that in
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some respects we are insulated from that given we have long-term contracts. again, nine years of recuring revenue today under long-term contract. certainly the uncertainty in the environment could affect consumer confidence. ultimately, our businesses reliant upon consumers and desire of wireless services and finding very good value even in a challenging environment but certainly we pay close attention to the carriers' results and the consumer behavior around wireless. we are adding staff today to accommodate the growth we are seeing in the business so, you know, at the level we see activity and certainly something we keep in mind and keep our eye on. >> ben, thank you very joining us. barclays said towers the most attractive business in telecom. meantime, let's get a market flash with brian shactman. bri january? >> meritage up double digits today and when's most
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interesting about the name of reporting strong earnings, upgraded and earlier in the year had a sell on it. they said, quote, earlier this year we believed there were several dynamics going on that made mth's value unsustainable. we were wrong. plain and simple. end quote. you don't hear that often in the analyst space. >> you do not. the countdown on to facebook's first-ever earnings release. will analysts like this update? and speaking of countdowns, there are only 151 shopping days until christmas. you better watch out. the number of people who already have a head start on the holiday rush will blow your mind. the shocking stocking stats when "street signs" comes back. [ male announcer ] summer is here. and so too is the summer event. now get an incredible offer on the powerful, efficient c250 sport sedan
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got a big show coming up for you on "the closing bell" at the top of the hour. facebook set to report the first earnings as a public company. should you buy the stock ahead of the numbers? not the only big report due after the bell. amazon and starbucks on deck and the starbucks ceo breaks down the quarter in an exclusive
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interview. we have also got the always outspoken barney frank reacting to sandy weill's call to break up the big banks. mandy, see you at the top of the hour. >> thank you so much for that. meantime, the shares of facebook. trading down 6.5% ahead of the first-ever earnings report as a public company. are investors looking to hear this afternoon? let's bring in anthony declementi. when's the number one thing to listen for, anthony? >> i think mobile. i think the key theme for facebook is as you have a shift to phones, tablets and devices, they want to know is facebook able to monetize that? how are they -- is it as easy to monetize mobile as desktop. >> that is the biggest question. also, are they going to give us financial guidance or down google street? >> yeah, i don't know. it's no one -- it's hard to
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know. you know? i guess if i had to guess, i might guess that it would give third quarter guidance. >> do you really think so? this is herb. this is herb greenberg. i'd be stunned if they give guidance. perhaps the most ridiculous thing to do because then they would end up -- they're in a situation and still building out. they don't know a lot. >> yeah. you know, i don't know. with the lock-ups expiring soon. i think those lock-ups looking to the financial outlook to kind of decide the outcome of what they can do once their lock-up expires so that's a factor but i don't know. i just got look at what other internet companies do. how amazon does it. maybe facebook looks to amazon's quarterly. you might be right. >> will zuckerberg be on the phone call? >> my guess would be he would leave it to his diligent cfo and his team. my guess, my guess, that's my guess. >> how do you think the street
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would view it then if he doesn't show up on the call? is this a negative? >> no. i think he has a seasoned corporate finance team doing the communication through the last few months so, you know, i don't think he necessarily needs to be but, you know, we'll see. >> okay. what do you think, herb? >> i like michael but i don't think it matters. look at apple. >> right. >> in this case, you know, i think it's more of an event is he going to be there as to whether -- all anyone cares is how well the company is doing. >> he could say hello and then leave the call. >> it won't make a difference. >> thank you, anthony. you have a target of 30.72. okay. let's go from facebook to buffalo wild wings. rebounding after an earnings miss. ahead of those results here on "street signs." north coast research expressed
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concern that the company's decision to add calorie counts to all of their menus nationwide before they even had to in 2014 could hurt their business. last night on "mad money" jim asked the ceo about that new menu strategy. >> bob is a great analyst. when we went to menu print, we believed that the regulations were coming. and in between menu prints rather than spend the money on a new menu print to comply, we decided to put the calorie count on. now we know that it's probably not going to be required for the next 12 to 18 months and may rethink that. >> interesting. smith says they're making a decision on the menu calorie counts in the next week or so. but she did point out that in new york and california where it is already required by the way they didn't see any dropoff in sales so what do you make of this? >> why in the world change that? no. look. sodium and other things in here, why would she do that? she wants to get ahead of the kumpb. you want to be proactive. why pull back?
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it made no sense hearing that on the show. i look at that and i say, it doesn't matter. it doesn't matter to investors. cheesecake factory is a classic case and point out what the calories are. does that keep people from going? no! >> it's startling. >> but look. what's great about these calorie counters and nutritional -- knew tradition tables, lets you if you're interested, see the sodium, the fat content, the calories and sometimes you are surprised that the salad with nothing has tons. >> all in the dressing, right? >> always. >> salad doesn't taste well without dressing, either. why bother? up next, the favorite analyst on jcpenney's about-face on the pricing and the juice of yesterday's stock yesterday. welcome to the future. how these little guys spring in to action after you click buy. [ male announcer ] when a major hospital
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there and wasting no time at all. 13% of you have already begun your holiday shopping. families with young children are significantly more likely to start their shopping sooner rather than later and nearly a quarter of families with young kids have started their shopping. of those people, nearly 20% of them say they have bought most of their gifts or are already done. that just makes me feel like a slacker. what about you? >> i don't do holiday shopping until i -- >> mary? >> takes care of that. coming to her, i wait until whenever. >> i need a mary. can i rent out mary? okay. if you're like many of us, you probably do a lot of holiday shopping online. in fact, last year was a record high for online holiday shopping. so, have you ever wondered what happens after you click buy? well, courtney reagan in massachusetts with the look at the robots that get your order to the door. court? >> mandy, at quiet logistics. an e-commerce fulfillment
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center. its employee roster is the robots helping to fulfill the online orders. so how exactly do all of those online shopping orders get filled, packed and shipped? at quiet logistics, the whole process takes as little as 15 minutes from click to ship. because of these guys. once an order is received, a human worker scans a tote and sending an assignment to a robot. in this case, alpha bot. it zooms off to retrieve the rack of the path. once alpha bot located the pod, moves underneath to deliver it back to the human colleague. once delivered, the robot's assignment is near cli complete. a laser indicates the item to pull for customized packing.
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alpha bot can get a new assignment. our pants and shirt are now bundled. ready to be shipped. and ready to be shipped. so amazon bought the company that makes all of those little orange robots. it's competition, but it's been business at usual. >> but humans make mistakes every now and then, and every now and then computers crash, so how offer do they expect errors. >> it doesn't happen very often here, it's unbelievable how accurate they are. they make reservations two bar codes ahead of time. they know where they're supposed to go, what they're supposed to pick, and there are computers and lasers. >> just don't get in the way of a robots.
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>> we can't, we have to stay very far away. >> everything old is suddenly new again. jc penney out with another new pricing strategy. is this a step in the right direction? we have jan here, herb is with us as well, thank you both for joining us, you have been battling on this stock for months and months, what do you think of the new new pricing strategy? >> i think it's better than what they have. tell nerve advance for a month what their sales would be, i described it as digging trenches, and telling the enemy we're going to stand up at 3:00. in august, the customer gets a completely new story and now they have to learn it all. do overs in retailing are never
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good when it gets the customer to shop. >> a lot of the retail experts i know are among the critics of this strategy. you told me once when the stock gets to 19, you rethink it. where are you on this now? >> i confess when it got to 19 i didn't have the guts to tell people to go out and buy it. when liquidity issues came up, i was like wow, the $19 could be a $15 stock. they have so much to sell. they have things you didn't know. so they have things to monetize. enough to get them out of the liquidity crunch? >> i think so. they just sold $248 million worst, and that was popular until real estate gurus said it
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was a haircut from what they were worth. so it looks a lot more interesting at 19 or 20. if you have a really long time horizon and a really strong stomach for risk. >> yes, but that's what they said, three years. everyone wanted it in a quarter. in three years are we going to see a company that's gotten from here to there? as a fan of this company i'm so upset. why would they give guidance for a three year turn around? >> i said it was a five year turn around. i thought it would take them three years to get it working the way they wanted to. it took macy's three years. yesterday, we were talking about the tweet from nina garcia, do you think that was the reason
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for the big spike in the shares? >> no, i think 35 vendors walked through the store and said they liked it. and then nina put out a tweet that said the same thing, and it created more enthusiasm. that was only a couple days after bill ackman said there was a 15 bagger cycle, and joe fresh. that will do well, they're going to put it in 700 penney stores. that was a positive news cycle too. sdplp they have earnings coming out august the 10th, and the street is expecting per share loss of about 17 cents. is there anything they could potentially say or do to turn around this situation? >> i think they will be down 25% in store to store sales for the second quarter. my guess is they will miss that
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17 number. >> referee: it doesn't matter. that is such the game of wall street in this case. you look around here, but they brought it on themselves. ron johnson brought it on themselves by talking about if people will meet or beat. >> right, and i agree that it doesn't matter. do they get traction in the fall? i don't think they will. will they get traction in 2013 if they don't get it in the fall? if they don't start showing gains by then, it will be really hard to make it through. >> jan, thank you for stopping by the studio. coming up next, why dunkin' do when i found out my irregular heartbeat put me at 5 times greater risk of a stroke,
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my first thoughts were about my wife, and my family. i have the most common type of atrial fibrillation, or afib. it's not caused by a heart valve problem. i was taking warfarin, but my doctor put me on pradaxa instead to reduce my risk of stroke. in a clinical trial, pradaxa® (dabigatran etexilate mesylate) reduced stroke risk 35% better than warfarin. and unlike warfarin, with pradaxa, there's no need for regular blood tests. that's really important to me. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding and seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition like stomach ulcers, or take aspirin, nsaids, or blood thinners, or if you have kidney problems, especially if you take certain medicines. tell your doctor about all medicines you take, any planned medical or dental procedures, and don't stop taking pradaxa without your doctor's approval, as stopping may increase your stroke risk. other side effects include indigestion, stomach pain, upset, or burning.
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pradaxa is progress. having afib not caused by a heart valve problem increases your risk of stroke. ask your doctor if you can reduce your risk with pradaxa. so i test... a lot. do you test with this? freestyle lite test strips? i don't see... beep! wow! that didn't take much blood. yeah, and the unique zipwik tab targets the blood and pulls it in. so easy. yep. freestyle lite needs just a third the blood of onetouch ultra. really? so testing is one less thing i have to worry about today. great. call or click today and get strips and a meter free. test easy. yeah, you -- you know, everything can cost upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude, those guys are pros.
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they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. . >> welcome back to "street signs," everybody. dunkin' donuts is below expectations. speaking of it abroad, look at what they're doing, they're pumping the smell of fresh brewed coffee on to public busses. companies have been doing this for years. i remember for bred shops, they
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pump out on to the street -- >> this is in a bus in korea. >> yeah, why not, make people want some coffee. the real issue with the stock today, i raised red flags at dunkin' -- going back, and hour penny had one of the best calls on these things, but more importantly, something he has been talking about and i have been talking about is the deceleration in u.s. store growth. a big part of the story is expansion to the west. there are issues with that. it's a great story, but can they get there? >> good question, in the meantime we will find out more about dunkin' because the ceo will be on. and the markets are doing well. let's s
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