>> thank you very much. >> thank you. >> appreciate your being with us. sue, that will do it for this hour of "power." >> "street signs" begins in a second. the dow jones industrial average fractionally lower. s&p holding on to key levels. have a great afternoon, everybody. see you tomorrow. >> see you tomorrow. "street signs" right now. all right. welcome to "street signs," everybody. would you have to be drunk to buy amazon.com? legendary investor says you would. we'll ask why. two big retailer names he likes. is andrew left right? his firm saying that nu skin's china business may be at risk. he is your exclusive guest. plus, will high corn prices crush the recent restaurant run? is yahoo! turning itself around? a streak check on the company, mandy, and their new ceo ahead.

>> indeed. a back and forth day for stocks and some milestones are within reach. if the dow finishes the day h h higher, it's a five-day streak higher and achieve the same goal with a higher finish and if they manage to finish higher today and tomorrow, they'd have their first all positive week, not counting holiday shortened weeks in 11 months. nasdaq outperforming today and could finish over 3,000 for the third straight day. it is not done that since may. we'll followed the market action. we have mary thompson at the nyse. right here on "street signs" always ladies first. what are you watching? >> a mixed session for a number of reasons. we had decent data on the trade deficit. and then basically wiped out by the wholesale inventories. markets look stronger and then comments out of germany raising questions of ecb buying bonds

and pushed them lower with the euro. good thing is the s&p continues to hold above that 1400 mark. but very much a summer session. stocks in a narrow range on low volume. look at the leaders on the sector front. materials, energy and technology. co staples a winner yesterday with dean's foods down today with a pullback in the stock after the 30%-plus gain yesterday and also keeping with the consumer theme or i want to turn to cisco, a reason of seeing strength in the nasdaq an i guess a smaller loss in the dow because it's a dow component. benefiting from upgrade. on the other side within the dow, weakness in americanexpress. held a call yesterday and basically said that it saw a slowdown in some of the consumer spending and putting pressure on the stock and then the other credit card companies under pressure because first data said consumer spending rose by 5.7% in july, slowest nas a year and under pressure with some of the casino stocks with the exception

of caesars. more news of the consumer pulling back. a decline of gambling revenue in nevada keeping the pressure on that group, today. pressure on the dow down 11. nasdaq with a slight gain. back did you. >> indeed. slight gains. sounds like you're working too hard. you need to rest your voice. thank you for that. rick santelli, would you look at the rates go on the 10-year? >> absolutely. wasn't that many weeks ago we had a record yield close of 1.38. now over 30 basis points later flirted well over 1.70 today. look at 24-hour chart, mandy. you know, yesterday's auction in 10s is sloppy. today's auctions in 30s, sloppy. and the old days yrks, you saw markets rally after auctions but i don't want to dismiss the notion that whether it's european vacations, thin markets or the fact that, you know, maybe europe is going to be less

of a doe ndonator and yields moved dramatically and pay attention to especially with the traders back going in to september. >> they're all enjoying the holiday. nice hot weather out there. thanks, rick. >> thank you. legendary investor bob olsteen rarely at a loss of words. he said he would have to be drunk to buy amazon.com over other retailers. chairman and cio of olste en. >> my pleasure. >> you're sober right now. correct? i'm half. >> last time i looked. >> fantastic. talk to me in an hour. i'm on vacation. why not amazon? why the other retailers? >> look. in 2000, cisco sold at 129 times earnings. i said, you had to have reutters on mars to suggest the price. >> we do now. >> cisco we just bought.

it's price, price, price. they did 5 billion -- sorry, amazon did $5 billion in sales if 2003. they're going to do $65 blg this year. purportedly and the cash flow is still basically zero. they cannot convert it over to free cash flow. eventually you have to do it. to justify this price, they need 13% margins. that's $10 a share. no way they can't do it or lose market share. >> most with basic accounting would agree with you but we have heard that same argument against amazon for years. >> let me tell you. if i pump the air out of this room you run. if they don't develop free cash flow, i'm telling you, amazon's coming back down to 100 bucks and my target for 2 to 3 years. >> how much do you feel the market is not looking at the right things? in other words, share price reactions in the earnings season the focus is so much on meeting or beating and not looking at things like free cash flow.

>> crazy. amazon's sales go up. their earnings go down. their cash flow, the stock flies. bed bath & beyond. great grower. selling at 8% and 9% free cash flow. they missed the analyst estimates and call them a dumb estimate missing by a penny and the stock down 10%. the market eventually and always -- you saw that editorial of ben graham yesterday or the guy that reviewed ben graham? nobody listened to him right after the depression. free cash flow, free cash flow. that determines all. this is a wish, amazon. >> what other stocks fall in the basket? which are the qualities to look at? >> you look at the qualities like the developing free cash flow, giving it back to shareholders. they care about the stake. all their stakeholders, not just customers like amazon. you have the bed bath & beyonds, macy's at 10%.

adulent. with four to $5 billion in cash on the balance sheet. >> okay. macy's and bed bath & beyond exposed to the consumer. we talk about the fiscal cliff a lot here. you don't sound like you're concerned about the consumer or the likelihood of a recession. >> i'm concerned about the consumer slowdown but the market is a discounting mechanism. you could not buy these companies for 10% free cash flow yields and 9% free cash yooelds, grow 5% unless there's concern so what usually happens if that concern comes true, you lose less money than in an amazon. >> bob, we are all about full disclosure here on cnbc. are you shorting amazon right now? do you own any of the stocks you mentioned like adulent? >> we own all three. owned bed bath and macy's for a while and did it on cnbc last year at 19 and basically we are

not short amazon. i don't get in the way of a snowball but it eventually stops. >> what makes it attractive? >> cisco is doing what they're supposed to do. spending the money in the right places. they're the play on the increasing bandwidth. the company has $1.50 in free cash flow and i have docked them for options. it's too cheap. they have a report of a beginning company something in the cloud. here's a company that's the leader in bandwidth, they're spending right. he's finally adopted religion. i wrote him four years ago and said you won't grow at 18% or 19%. he has it right now. >> i'm the thunder stealer and talking about cisco in the street talk. but i want to know what you feel about this market in general. >> the market in general, everybody is negative. the cash on the sidelines is

amazing. 2% interest rates. okay? going against 8%, 9% and 10% free cash flow yields. not wild about the market in the sense of a major bull market and 1,600 and reach there next year. tremendous quality of earnings out there. half the s&p is yielding more than the 10-year treasuries. >> what could make you wrong? how would we not get to 1600? >> federal government. >> i've heard of them. quite the corporation. >> u.s. government making wrong decisions. very scary. that way we're not going to get a higher priced earnings ratio. any kind of terrorist attack. and wrong decisions over in europe that sends the whole economy going in the wrong direction and i don't think that's going to happen. >> okay. bob, great to have you on the show as always. >> my pleasure, guys. >> don't be such a stranger. >> okay. >> too long before appearances. you come back now, you hear. >> started on cnbc in 1995 when

you were a babe in arms. >> thunder stealer. thank you, bob. all right. up next, a good old-fashioned bull/bear debate on a big battleground stock, nu skin. score one for the sexy residents of the city that never sleeps. the adult toy giveaway that the mayor halted yesterday is back. don't go away. and annoying account fees. at e-trade, our free easy-to-use online tools and experienced retirement specialists can help you build a personalized plan. and with our no annual fee iras and a wide range of low cost investments, you can execute the plan you want at a low cost. so meet with us, or go to etrade.com for a great retirement plan with low cost investments. ♪ heart of every innovation. wow. that feels really good! and now, sleep number introduces our new memory foam series-the only memory foam beds with exclusive dual-air

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shares of nu skin hammered

earlier in the week after a report came out questioning the viability of the company's operations in china. the gist, folks, basically this. multi-level marketing is illegal in china. they believe the company may be violating those rules. nu skin disagrees. joining us is writer of the report, andrew left, manager of citron research and a buy on nu skin and $60 target. we have herb here, as well, with us. andrew, i want to begin with you. here's the story. nu skin says you're wrong. they get licenses. they have employees. they're not a multi-level marketing company in china. they say you're wrong. why are they wrong? >> i know as a fact they're wrong. i've done extensive field work in china. for months now. if you go to citron research, you will see diagrams. they're operating mlm in china. if you go look at some of the

information from the recent convention in hong kong and will translate back to china, they most definitely run a multi-level marketing business in china. >> you know, andrew, nu skin doesn't like the statements and of course they have said to us and they put out releases saying that you're wrong and they have licenses and employed employees that are on the payroll. they're not, you know, they're not multi-level marketing employees like you say. you say you have done on the ground research. tell us more about what you believe you have found. >> i have found that nu skin created a payment system within china that people are compensated upon bringing other people down the chain on the pyramid. i have no problem saying that. i have no problem proving that. i've said it. if they want to -- >> you're saying they're a liar or don't know what's going on in china? >> well, here are the numbers of my lawyers. call me maybe.

let's go ahead. i can prove the fact that nu skin's operating an mlm in china. >> bill, come in here. you have a buy, a 60 buck price target. you clearly don't feel that they're doing anything illegal in china and when you consider that i think it's about 75% of the revenue in the last quarter i guess it's dangerous if they were shut down there. >> yeah. mandy, just to be clear. which is what we should nland focus on is about 10%. it was an anomaly quarter. not to get in the quarters but they had a big convention, effectively a distribution load and the analogy to use is apple saying we'll select ipads in china this period and not available for another year. so if you're a distributor in china and sell the product, you better buy it now because you won't get it again until next year so if i stripped out the sales in mainland china and should focus on, all the metrics is exactly the same. about $100 million of extra

sales in the quarter. they're clearly guided. the model shows not an anomaly. it was a big blip in sales. sales should moderate in china and the broader company here on out. i don't think it's problem and to address the assertions, it is very important to point out that most of the distributors with commissioners, actually all of them for china for nu skin are salaried employees of nu skin. they're paid by nu skin. they pay in to the chinese social insurance so they get health care and benefits. >> how do you know that andrew is not right? >> i've been to china probably as many times as andrew is. >> because my last name is left. >> andrew? >> you will going to say something, andrew? >> yes. to compare nu skin to apple, so wrong. let's look at the past quarter. nu skin admits the fact of troubles of commission schedules in korea, regulatory problems in

japan and china in the past and united states. they're not exactly choir boys. so by going ahead and comparing them to apple is so unfair and it's just intellectually dishonest. >> it's not at all. they have a great new product. what you left out the s the fact anti-aging skin cream. in china, across the market is growing at 30% a year. >> yeah. bill, it sounds like andrew's contention is that they won't sell any cream because they're violating chinese law. >> they wrote the law in china. they wrote -- >> it's a -- >> can i finish? >> oh please. >> can i finish for a second? they wrote the law in china. the chairman and ceo was there when the world federation sat down with the chinese government and scripted the law. and i would love for you to come on with me. have a road trip. we'll fly out to china and do

the same research and get to the same point which is probably mine. >> bill, i have a question. is there anything to show you whether it be testimonials or work, is there any body of work to present to you that would make you change your opinion that they're operating an mlm in china? >> yeah. i would love to see it. i don't hone the stock personally. i'm not allowed to. >> by the way, as for their great product, it has to be noted the great product actually refused admission in to the united states this past spring by the fda. >> but that wasn't -- >> that's another topic. >> it wasn't approved by the fda yet. they don't wait for the regulatory. that's factually incorrect. >> andrew, let's ask you a question. >> it's right in the filings. it's not me, the filings. the purpose of the conversation is are they operating a mlm in china? >> taking the chinese situation away, just disappeared. not an issue. bill is right. let's just say that's the case. what then would be your opinion

on nu skin? >> my opinion -- when you say take the chinese situation away, are we talking about -- >> if that were not an issue -- >> are we taking away the sales? >> no. just takg away the controversy over it. everything they're doing is legitimate. if that were the case, what would be your opinion on nu skin? >> if everything worldwide was legitimate, i think it's multilevel company selling mediocre, average, below average products. and i haven't looked at the company in that way. as you know, herb, i look for troubled companies and i have found through extensive research this company is breaking the law in china. it's a binary question. >> are you trying to get sued, andrew? >> i'm not trying to get sued. i'm trying to present the truth. if the truth brings a lawsuit then i'm willing to defend it.

i'm writing my column for 11 years now. i've never lost a lawsuit. i would look forward to going ahead and taking subpoenas of some of the higher level executives at nu skin and taking some depositions of their chinese sales force if it came down to that. i would rather it not happen. the truth behind it that nobody wants to say is that, yes, they're operating an mlm but until now and for who knows how much longer in the future the government hasn't done anything about it. >> all right. listen. >> that would be an honest thing. >> yeah. we need to hear from the chinese regulators, as well. >> very quickly, bill. >> very quickly, china goes away completely for nu skin. 7% of profits. take that 23 cents offer andings and a $2.25 earning base away a. 17 multiple on the existing business. still worth $53. >> yep. good debate. takes a buyer and a seller in every market and i believe we have both or the recommendations of both. guys, thank you very much. and we have to close this out with a statement from nu

skin, everybody. here's what they told us. quote, we are confident our china operations are in compliance with the applicable regulations at interpreted and enforced by the government of china. nu skin has an eight-year history of doing business in china under these regulations. they say that the business model in china is different than the global business model. we follow all regulations and that any member who does not follow company policies is subject to discipline. by the way, we did invite nu skin to come on the program. herb and i both many times. they have declined. okay. on deck, the battle for the cashless consumer. we'll hear from the ceo of verifone. and a huge interview at 4:00 p.m. eastern time. the ceo of standard chart, peter sands, on "closing bell" to talk about the allegations of uk bank to launder i ran yan money. that's a big, huge interview, mandy.

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brian shactman here at the markets desk looking at the spike in oshkosh corp. carl icahn that owns 9.5% of the

company wants to spin off the jlg business a. lot of axis company. he thinks the value is clearly not being realized and they should spin it off as a tax free spinoff and investors like it. look at the spike. back to you. >> thank you very much. as the graphic says, time for the disaster du jour of the day. that's redundant. i know. another failing grade for a for-profit education stock. >> this is really another horrible quarter for education management which is best known i suspect for its art schools and art institutes. i have written a lot about this company and 2010. the results were really ugly. there was a loss of $1.2 billion. lot of that tied to a goodwill impairment at the art institutes and the company says the former tailwind of employment is a headwind. lost in all of this, this was a goldman sachs private equity deal and goldman led the ipo in

2009. it is now education management's biggest investor, 43% stake. >> lost a huge amount in the stock price. $80 at the beginning of the year. let's let in the sunshine in to that disastrous, cloudy sky we were talking about. check out the shares of robbins & myers. rbn. spiking following a buyout bid. a cash bid, in fact, from national oil well. they make tools and pumps and values used in oil fields. the deal is also -- the deal could close as early as next quarter. up by 27%. brian? today shares of verifone down again. we talked about it. stock fell more than 10% on concern of competition for the cashless consumer with mobile apps like square. the kelly evans spoke with the ceo earlier today. she joins us live from london. aside from the fact you were in a cab, kelly, all right -- >> quite some interview. >> just how worried are they

about the square starbucks deal? >> reporter: brian, hello from london. well, the ceo basically shrugged it off said the valuation still looks frothy to him and he showed us what he sees as verifone's next big growth opportunity. >> what are the most exciting things that you expect to see some out of the your company in the next 12 to 18 months? >> you know, in the spring, mast earlcard and visa said that the u.s. is going to migrate to europe ro pay master pay visa which are the chip cards we use in euro to reduce fraud in the infrastructure. big ticket ri tailers pay a lot of money covering fraud and we think the whole replacement cycle of the u.s. retail environment over the next couple of years is going to be ver exciting for us.

>> reporter: so a society moves more and more cashless, brian, security concerns are growing. they're hoping to stay a step ahead of competition pushing ahead with the chip and pin-style transactions and secondly emphasizing the security of its systems. visitors to the games here in london already seen the technology in use. around the city and restaurants, shops and taxis. next up for verifone is cabs in washington, d.c. and whether it's enough to placate shareholders. >> thanks for that. the butte tan the beast trade. why makeup and monsters reason 0 the radar today. feasting on restaurant stocks lately, why now rather might be the time to say check please. we'll serve it up in "street talk." tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.

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street talk time taking a fast stroll through some of the stocks on the radar screen. why don't we start off with toll

brothers? >> jpmorgan whacking the stock. they like the company. right? but they call it expensive on a pe basis and raised the target by a buck 50. upgraded the sector and cut toll broth brothers. >> we have seen high fliers. >> monster beverage crushed after a huge miss here. you have profit margins down. estimates of sales growth slowed to the mid teen level. this is a -- hey, herb. welcome. just popped up. literally. >> crept up behind me. >> a company has a problem and the sales growth slows to only 28% year over year it's the incremental numbers here that count. i was on when you were on vacation and nielsen numbers. showing this deceleration ahead of the quarter. turns out that is case when the numbers got it right and

acknowledged the deceleration on the call. >> sun power. >> anything else for the solar sector, guys. wall street consensus is for a one cent profit. sales also seen well below plan. this is a big miss here. stock's down 10%. other solar stocks like first solar down in sympathy. he's gone. >> he's gone. i believe they're focusing on consumers, as well. roof tops. rez didn't shl sector. it is a beautiful day for elizabethard arden. >> citing strong sales. fragrance line including one by justin bieber, apparently not a cologne but a fragrance. more than just a perfume. it's a fragrance full of energy, passion and confidence that pushes them to the top of the charts and describe it as fresh and flirty. >> is his fragrance the secret

behind the secret? >> i have no idea. the stock is up 11% today. up 55.5% over the past year. this is the sweet smell of success. >> he's a little bit of hot water. the brits are affronted saying that prince william needs to get some help with his hair. >> oh boy. >> oh boy. don't get commenting about the hair. >> farmland in the midwest, anything but fresh. corn prices continue to hit new highs. worst draught in half a half century taking a toll on the heartland. but in the stock market, there's been a paradox happening, right? many of the restaurant stocks have been up bid this year. cracker barrel. bob evans. dine equity. denny's all higher. two questions. why are they doing so well? is this about to come to an end? bring in bob darrington. welcome. >> thank you. >> why in the heck are they all up? we talk about higher corn

prices, higher beef prices, higher milk prices and they can't raise prices. >> well, it all comes down to how are the stores performing in both sales, margins and bottom line? when i look at the trends seen recently, we have seen a number of companies had good sales but especially good margins and delivered better than expected earnings. >> do you think that maybe this food cost inflation is going to be a story for maybe the current or next quarter and just hasn't showed up yet, bob? >> fair question, mandy. the likelihood is to creep in this calendar 2013, especially. and particularly in the second half of the year going against comparisons that are much easier. in other words, next year commodity costs will be higher than the first half. >> the restaurant disagree with the statement and seem fairly similar in terms of menu items but is there one or two more exposed than others?

>> yeah. that's fair. is there a -- what's the best house in a bad neighborhood? or the worst house in a good neighborhood? >> bingo. >> what i would say is names with more confidence in are companies like panera bread and the business model. jack in the box. we like them more. we think the business model is more flexible. one that is we're little bit more cautious about, we're concerned about chip outotle an looking at a company whose sales may not be as strong like a red robin. stock's up strong today but ultimately if sales don't go up we'll have bigger problems across this industry. >> moving away from the food price inflation problem you were on a month ago and talking about buffalo wild wings and the calories on the menus and you said they might rethink that. the ceo went on "mad money" and confirmed that. they're rethinking that. what more do we know about the

story now? >> what i'd say is i think management has a responsibility to be flexible and consider the business model and best for the shareholder and consumers. i think when buffalo wild management realized, you know, probably that it's not going to be a principle consideration. they have to include calorie information for a year and rethought it and a wise decision. >> if they take it off the menu, why assume to help the sales? >> well, what i would say is if all of the restaurant chains are doing it in a state of california, there's less of a glare on any one given chain. if you're the only one in the local mall that has calorie information on your menu and no one else does, the glare of the spotlight is brighter and i think it's more impact. >> bob, once again, thank you for joining us on cnbc. >> thanks, guys. another effect of the drought is hungry bears.

forget the greens and berries. security video kept this black bear breaking and entering a candy store. it has a sweet tooth. after it left the store, it came back six times. the business owner says the bear was a very tidy thief and the only evidence of the robbery was this video. >> how do we know he wasn't rescuing the gummy bears. >> he was. that's a really good joke. >> i'm allowed one. >> did you work on that for hours? >> i didn't know it was coming up. >> just thought of that right now. speaking of food, herb is back. like a wizard. he's got the news on diamond foods. >> goes like this, a cloak like this, disappears. >> the stock up. no newses. the company expected yesterday to plead its case with the nasdaq to remain listed on the nasdaq. it will be interesting to see what happens here because after this occurs at some point the company's expected to give us the results of a forensic investigation to all of the mess

that's going on there. and that should some way get us from here to there. we have speculation there. >> moving higher on the speculation. now the disappearing act again. >> i will. >> trying to get rid of me? >> we'll see you in a bit. coming up, the crisis in california. even mitt romney is laughing now. but what cities and towns are facing across the state really folks, no joke. and new york city was not laughing. we've got an update on the crack down on the pleasure carts. here's today's "return on retirement." the great recession caused some to claim social security benefits significantly earlier than a normal economic conditions. high unemployment was the main culprit for the uptick according to a new study. so how much did individuals lose by claiming early? the answer when we return. when we got married. i had three kids.

and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.

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according to the center for retirement research at boston college. for more on retirement, go to retirement.cnbc.com. here's the question. is california on the verge of collapse? well, not from earthquakes but financial tremors sending many cities and towns scrambling for a lifeline or just trying to stay afloat. jane wells is in los angeles live. even mitt romney took a dig at california talking about the europe crisis, jane. >> reporter: we are easy to hate. maybe because the weather is so nice. census bureau saying that the pension plans outperformed other states over the last year but they also had to give out bigger payouts. people are concerned about the bonds. the state obligation bonds aren't the ones to worry about it. it's local general obligations and those based on future lease payments. but i have the list from the state of school district that is are either not going to make their financial obligations or

may not make them over the next year. 12 school districts from the state saying they won't do it. another 176 saying they probably won't make the financial obligations. 188 districts. at leastingly enough with poway with the bond isn't on this list. that bond is stale rated aa-minus by standard & poor's. >> what are cities try to do to avoid bankruptcy? >> yes. they're trying to sort of threaten everybody and get everybody scared if we don't do something we'll go bankrupt. they're -- the latest threatening for a fiscal emergency. if they declare fiscal emergency, they can then go to voters to raise taxes. it's under the rules of certain cities. you need to declare an emergency before you go do raise taxes and that's what lot of them are doing. >> we did a segment on poway yesterday and discussing how's it that a bond like this is

allowed. in certain states -- >> i know. >> i know in certain states it isn't. >> i talked to the treasurer's office and the capital appreciation bonds like poway has and doesn't have to pay for 20 years and then a billion dollars before it's done, it's legal. the bonds have 40-year maturities with net yield not exceeding 12% a year. so as it builds and builds, the principal and the interest, that 12%, 12%, you end up with an 800% greater bond you end up paying for at the end. legal. legal. for the moment. >> it just feels like it shouldn't be. we're robbing from our children and grandchildren. jane, thank you, as always. at least you have good weather over there. there you go. there's the prize. >> hot today. >> all right. well, back here on the east coast, some new yorkers left wanting after the mayor says no-no to a popular giveaway.

a special cart shut down after giving out thousands of adult toys. part of a campaign of trojan. the mayor's office cited lack of a permit for causing the so-called pleasure carts but after a trip to city hall, they're back on the street today with the permits. what a buzz kill. >> things like go carts? >> yeah. >> really fast cars? that kind of thing? >> you're not baiting me in to this one. next, how's marisa meyer doing at yao hoo? >> we're hearing about the vision for the company. is it time to give the stock another shot? chances are, you're not made of money, so don't overpay for motorcycle insurance.

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shares of yahoo! down fractionally today. stock flat lining after dropping off a cliff years ago. they traded at a cool $100 a share. well, marisa meyer on the job as ceo of yahoo! for three weeks now and getting indications of how to revive the struggling company and see if the worth is worth the pay package and do what so many others tried, put yahoo! back in the big leagues with the likes

of the former employer google. how's she doing so far? let's ask our tech reporter jon fortt, herb, i want to start with you. you are a fan of the first a bi first moves she unveiled pm some of them are quite unconventio l unconventional, are they? >> yes, she came out, took the stock price off the home page and that is taking away a major distraction. you know what it does? it basically allows her to go out there and you're in the middle of a turn around and not focus on the one thing everyone wants to focus on for the short term and say we're interested in the business. >> it's good for moral as well. if you see a dropping stock price every day you log on, it's a terrible distraction and you lose confidence in the company.

>> if she was smart, she would get rid of guidance as well. >> rocky, i'm going to get to you, doing things like offering free food, these are a few of the things to start with, what else has she done so far? >> they may seem gimmicky, but they're the right moves to make. i was at aol and they put in physical barriers to keep employees away from the executive suite. and this is the right kind of message to sen. it's not like the best employees are coming for just free food, but it makes a difference. >> you know, john, the stock price is unfortunately the measure, the report card of the company ceo, and it's up about 30 cents since she took over.

>> that's right but she's taken the stock price off of the internal home page that's not a measuring stick for people inside. she is getting her own food in the cafeteria, holding weekly meetings where she talks to the staff and takes questions. she really jumped right in and done that. it's sending the right symbolic moves, but the focus is on product, and to get focus on that you need new people. she got a former googler that just started and a pr person from google had. so you you need to see who she brings in. he lost some people, you have to suspend judgment until you see what people she's able to bring there because that will lay the foundation.

>> yes, rocky, what has she not done yet that we want to see her done, or any missteps in the first few weeks? >> no, and i think product is the right thing to be focused on. the other thing yahoo needs to focus on is performance. they're sight is not as fast as google and facebook and i think she can help turn that around. >> john, what is the people that -- the folk that's you speak to every day that live out there and work out there, what do they want to see happen next? is there one big thing she can do to wow the community? >> they want to see what her product direction will be. will it be a savvy acquisition? is she going to put emphasis on

ad networks that look like yahoo would de-emphasize and spin off? they want to see what will be her bolder move in terms of this product emphasis. >> rocky we have a two horse race at the moment. it's facebook and google. do you think yahoo has what it takes to become a major third player? >> as much as we like to beat up on yahoo, yahoo still gets three quarters of internet visits a month. yahoo mail has been dwindling, they need to get that to stabilize. they have into now that can get people excited -- >> i use yahoo finance, for a quick check, i might use it on my iphone, but that app is so

bad, you wonder when they will get some of this stuff moving in a way that's into this current centu century. >> yes, they need as like finance and fantasy sports that people are about. >> that's the key, yahoo has a huge audience, but right now they're just standing around doing the things they used to do. full disclosure here, cnbc and yahoo have a buzz alliance. >> up next, a guy looking for a tv with some fire power, got a very shocking delivery. tdd#: 1-800-345-2550 when i'm trading, i'm so into it,

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ended, so a short squeeze, but it seems like the voters are voting with their buy button and making their case on nu skin. >> bill had a price target at $60, and in our sign of the times, maybe we should call if the whoops of the times. a man got a surprise when a man got a box that was supposed to be a tv, instead it was a military type assault weapon. the weapon was supposed to go to a pennsylvania gun store. no word on amazon or ups how that happened. >> he was not even required to sign for it, they left it outside the door. >> i guess they don't know what it inside, so -- the s&p is currently holding above the