Skip to main content

tv   Power Lunch  CNBC  February 14, 2013 1:00pm-2:00pm EST

1:00 pm
>> all right, in honor of valentine's day, we are doing a special edition of trade. we go around the horn and give names you would fall in love with. stephanie? >> i like the engineering sector because of high commodity prices. cbi is trading at a discount to its peers. >> a stock i affectionately refear to as chicago britain tunnel. >> it is not acceptable it say
1:01 pm
you love goldman sachs but as an investor, i love it. i think it is going to 200 bucks. >> baker? >> everyone loves hershey kiss and with heinz bought out today, she might have a new boyfriend called warren. >> all right. mr. weiss? >> very eloquently delivered. >> sort of. >> i still love tbf. the bond market talking about how rates will go up but nobody is willing to say it is a bubble really. i say it is a bubble. still look for rates going to ten-year. 2.5 to 3% by the end of the year. >> all right. that the last word. happy valentine's day to all of you. don't forget to catch more fast tonight at 5:00. "power" starts right now. >> "halftime" is over and the second half of the trading day starts right now. >> happy valentine's, one and all. love is in the air. to two mega marriages, warren
1:02 pm
buffet buying all of the ketchup he could ever want. heinz. we will tell you which food stocks could be the next take over targets. and as has been rumored for months, frankly, us airways and amr officially getting hitched to create the world's biggest airline. is the deal good news or bad news for flyers like you and me? and disaster over triumph. carnival's crippled cruise ship, triumph, pulling into port later today. way behind schedule. complaints of lack of food, sanitary conditions terrible. we are on the scene with the latest and who on earth who book a cruise right now? my partner sue is at the new york stock exchange. sue? >> hi, ty. let's get to the two big deals on this valentine's day. heinz sold for $23 billion.
1:03 pm
and u.s. airway shares right now are down a buck six on the trading session. but heinz is up 19%. phil lebeau is all over the airline merger. first, diving into that deal, gentlemen, warren buffett's berkshire hathaway and brazil's 3g ketchup king, buying it out for about $23 billion, the buyingest buyout ever in food industry. shareholders get $72.50 per share but that is a 20% premium to heinz closing stock price yesterday. who are the big winners? check out heinz top institutional shareholders. it is really a who's who list. blackrock, vanguard, state street, capital world and fed rated. warren buffett on squawk box earlier this morning and he talked about his partnership with 3g to buy heinz. >>er with putting up more of the money but going to be an equal equity partner with 3g.
1:04 pm
and there will be 8 billion of preferred stock. and then well each have 4 and a fraction billion of common equity. swoel split the equity. but we're a financing partner in addition and there are the operational guys. >> well, we always think about ketchup with heinz, but if isn't just about ketchup. take a look at other brands it owns, such as tgi fridays. classico and food star. they have been moving smartly to the upside. see the spike at the right-hand side, it is up 20%. but the stock is up 40% over the past year. today's spike making up a lot of those gains, obviously. ty? >> sue, consumer and food stocks have been moving big on that heinz news. and brian schactman has been covering it for us all day long. hi, brian.
1:05 pm
>> the game is always played, who might be next. and in the food group, might be a lot of o consolidation moving forward. but a lot of people first look it buff whoet clearly said he is looking for more, right? companies like heinz, classic brands well run immediately shoot to the top of the list. hersheys is an obvious one to discuss. $18 billion market cap. not out of reach based on what we saw today. but the key with hershey is family trust is the number one institutional holder. they need to be on board with this and maybe that's why the stock is not popping. two other names with heavy family involvement. kellogg and who mel. kellogg owning 75 shares and hormel owning 127 million shares. after an all teem high, flat to down in terms of hormel foods. smucker, general mills and campbell soup p.m. family holdings much smaller at smucker. it is below heinz. that's a possibility.
1:06 pm
problem with general mills, is the cap is 28 million. that is bigger than today if that happened. campbell's, another one getting attention. familiarry involvement there as well. today's investors trying to chase the next premium to market. conagra and tyson foods hitting highs today. as you well know, sue, the next one like this one, likely, not companies we had anticipated. so obviously -- >> absolutely. >> a fun game it play but we probably don't know. >> i would agree with that fleetly, brian. thank you. >> we want to talk more about which consumer stocks could be targets. but first breaking news in the bond market right now. the third year option went off the board. yesterday's option didn't get good demand. rick santelli is tracking the action at the cme. what did it look like, ricky? >> well, hey, it is valentine's day. i think the treasury got a present in the not too distant future. a double valentine's day. 16 billion, ultimate yield.
1:07 pm
3.18. which is in a positive way through where the wi was trading anywhere from 318.5 to 1019. this is better at -- sorry, 3.62. this is better at 2.74. indirects are better at 36.4. directs are close as well as 14.5. dealers took about 49% of this auction. so a b plus probably the best auction of the three. what are people going to say about anybody buying treasuries? that they are crazy if you listen to our guest. i'm not sure i agree. tyler, back to you. >> rick, thank you very much. brian schactman just gave us the fall out from the heinz deal. let's probe deeper on which consumer names more brood broadly could be for takeovers. mr. feeney, welcome. good to see you. you heard what brian said, i
1:08 pm
hope, about other names in the food space including smuckers, hersheys, general mills. if you have any other thoughts, speak now or how about other consumer names that come to light in light of this? >> you know, tyler, i think the good news is that this transaction is more about cash flow. free cash flow at these companies. not just free cash flow but that protected from inflation about the pricing power. these iconic consumer brands tend to have. when you compare that kind of free cash flow with the cash flow yields you're able to get in other fixed income or elsewhere. they look attractive. and not everybody has the pockes to the buy an entire company, running how they would like. but more broadly, any time with high cash fields, we recommend conagra on that basis, one of the higher cash yields in our group. could be looked at but more importantly, one way or the other, that cash flow yield makes its way through to the investor. i think that's what this transaction is about today, someone recognizing that and needing that cash flow to
1:09 pm
optimize their investment performance. >> if you're looking in the food area, and you wonder who might be next were who might be an attractive stock, look for the free cash flow. what are the measures you're using there? >> well, i just look at the -- >> what's a number? >> oh, 4% plus. certainly, i mean, if you go back over the past 40 years, that's just how far back i have data, i i math timagine it geoe years back. presumably there is growth to the equity. today, that is totally inverted and you will see transactions like this happen sporadically because of that inversion. because can you borrow, more cheaply than you can own the inflation protected solid brand companies. >> there you've got it. thank you for being specific there. the 4% number, if you do a screen on free cash flow. shares of anheuser-busch, the
1:10 pm
company moving as you see, up by $4.42, 5%, $92.68. that's a lot of beer. the company changing its takeover proposal. for the company to satisfy regulators. it is willing to sell modelo's brewery and give lifetime rights for corona and modelo brands to constellation for 2.9 billion and that sent constellation brands up in a big way. don't you wish you owned constellation yesterday? you bet you did. sue? >> indeed. indeed, ty. now to that merger in the sky. us airways and amr officially getting married to form the world's biggest airline. phil lebeau is in dallas with the new ceo and chairman. phil, over to you. >> and sue, this something we have expected for some time. now we finally have some context regarding the deal, how much it
1:11 pm
is worth and what the implications are. first, let's go over the terms of the deal. $11 billion stock deal. amr creditors will get 72% of the new american airlines, u.s. air shareholders will be getting 28%. and if you take a look at the mergers that we have seen under this industry, going back to 2005, and you look at what happened with the joining of america west and us airways, that is doug parker at america west who got into us airways and ever since then pushing for more consolidation. there you see delta, northwest, then united and continental in 2010. airtrans southwest, a lot of people forget southwest bought airtran and finally the most recent one and people are saying consolidation game for the most part has pretty much played out here in the u.s. the new american airlines will have increased press tones european cities. that is really one of the selling points here as well as increased presence on the eastern part of the the united
1:12 pm
states. here is new ceo of the new american doug parker today on squawk box. >> between our two, over 900 routes we fly. there is overlap on 12. and in the most of those, you know, kind of hub to hub things like charlotte to dallas, of course. so very little overlap. highly complimentary. we expect to continue to fly, continue service out of all of the hubs we have. service to communities we have. so that's good. >> that may be good but this is not good. if you are an investor in airline stock, you saw earlier that shares of lcc, us airways stock are under pressure. airline index sue is having its worst day in the last three months and you have to wonder if perhaps a lot of investors are saying this is the end of the consolidation game for some time. i'm getting out. i have profits i can can look in. >> sure. consolidation move is what propelled airlines for so long. they add great year last year. what does this mean for flyers
1:13 pm
though? good news or bad news, in terms of capacity and in terms of prices? >> you will hear a lot of people say when you have fewer airlines, fares are going to shoot up. but if you go back historically sue, even when airlines merge, generally speaking, any increase in fares has relatively speaking, been in line with the industry overall. most are looking at this and saying, let's keep an eye on it but we don't expect a huge spike in fares. >> thanks, phil, appreciate it. >> thank you, sue. appreciate that. >> shares currently trading, there are the numbers on the earnings per share. missing estimates. 3 cents below. auto maker posting fourth quarter earnings as losses mounted in europe. gm earning 48 cents a share. there you see the stock price, down 74 cents at 27.93. it said the sales in europe would continue to decline in 2013 with no end in sight. over the last quarter, gm is up
1:14 pm
about 20% as you will see on three-month chart. let's see, do we have that? no, that's the interday. just trust me on that one, sue? >> we trust you, ty. we are getting first pictures of the cruise from you know where. it is literally limping back it port, amid growing passengers complaints about terrible conditions on board that ship. nbc's janet shamly is in mobile. >> limping is right. slowing down to four knots an hour. another seven hours at least on the crippled cruise ship triumph. what are passengers saying? we will have that up next. why turbo? trust us. it's just better to be in front.
1:15 pm
the sonata turbo. from hyundai.
1:16 pm
1:17 pm
the stricken carnival triumph is limping back to shore. it is due in mobile, alabama tonight. later today, amid vociferous passengers complaints and lack of food and absolutely horrid sanitary conditions. the stock has taken a hit the past two days. though can you see it is moving off its lows a little bit. the company saying it will take an eight to ten cent hit to earnings in the first half of the year. nbc news's janet -- hi janet -- oh, we lost her there. we don't have janet. that ship is expected back in port later tonight. and this is sort of comes on the heel of course of the costa
1:18 pm
concordia disave the ear yester. that was another carnival ship. let's bring in jamie who covers carnival for morningstar. jamie, thanks for joining us. >> thanks for having me. >> i'm glad your connection works for us. what does this do to carnival, especially, and the image of the cruise business more broadly. >> yeah, i think you know, right now, there is obviously just a pr concern going on with the stories that seem to be trickling back about conditions on the ship. i know the company put out kind of a statement saying it wasn't as such but i guess it is a case of he said/she said right now. and unfortunately it is happening at a time of year when a number of bookings occur. that becomes more disconcerting for the potential upside it financials later in the year. >> you know, i don't mean to be cynical about this, jamie, but i have to question, in the light of this event, incidents similar to this or cruises where people have been sickened because of viruss on the ship.
1:19 pm
the costa concordia, is this industry in any sense -- people line up to get on these things. is this industry in any sense in danger of having a really bad hit to its future? who would go on a cruise today? >> well, i think at the right price, you fill the ships regardless of what the concerns are. people want vacations, want them at a good price and traditionally, cruising has offered a really good value proposition for consumers. and i think that that still holds true. what i try to put into perspective is that, you know, there are a hundred ships in the fleet and they cruise year-round. you have to remember that there are going to be accidents that happen. i know last year, there was a fire of course in the indian ocean that we all heard about with one of the international ships. and in 2010 as well off the west coast. but remember, these are accident. nobody is hurt. conditions might not be exactly what we would like them to be. >> if you have to lower prices
1:20 pm
so much to lure people back, at some point, you stop making money. and these ships are dog gone expensive to build and i'm sure the company has a lot of debt. >> i think, that the main concern right now is, you know, what is going to happen. what is the halo effect from this accident. we have a what the explicit costs are but not the implied costs. and the company is not offering that to us. i think we have it make inferences about what happens with pricing later this year. and maybe, you know, a little bit less positive, summer's son than we would like. >> thank you very much. dreamliner, cruise liners, all in trouble. let's go to janet in mobile. hi, janet. >> hey, tyler. headline of the day may be, it's not here yet and won't be for several hours. at first weer with told thursday morning, thursday afternoon. now 1:00 eastern hour we're told. another seven hours perhaps as long as ten hours.
1:21 pm
so this is another long day for these folks on board. and it is not going to be a quick process to get them off. while they are doing customs forms and procedures on board, it is going to be two to three hours to get everyone off of here. a lot of families, frankly, haven't taken carnival up on the offer of free transportation home. mobile is full of families that have driven seven or eight hours to pick up loved ones. they will get out as soon as they can. but it is kind of chaos for people on the ship telling us by phone, now that she have cell phone service back in. that every briefing the story is different. there is confusion. who is taking a motor coach. who is flying home. they are clearly unhappy campers, or cruisers, tyler. >> what is taking the ship longer than anticipated to get to port. do you know? >> i really don't know. i will tell you they brought in a four tugboat. so they have four tugs working
1:22 pm
on it. i know that speeds have to slow through the ship channel. but their explanation to us is it is taking longer than expected. i'm sure that's a harder sell to people on the boat than it is to the media here. >> exactly. just taking longer because it is taking longer. janet, thank you very much. we appreciate it. >> yeah, sure. >> ty, coming up, one of the hottest trades on the planet. we will tell you what that trade is and who is making an awful lot of money trading it. when we come back on "power lunch."
1:23 pm
1:24 pm
today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
1:25 pm
cabela's earnings beating the street forecast. due in part to strong firearm sales. that pushed sales higher by a full 12%. the stock, last tried traid, traded to the down side by 1.75 to 49.86. fellow gun makers, actively trading, smith andes withon, unchanged. >> greg zuckerman broke the story in the wall street journal and joins us with details. good to see you again, greg. >> good to see you, sue. >> a great article. sorros made a lot of money. billions. it is becoming a crowded trade. who is making the most money on
1:26 pm
this trade? >> that's exactly right. there is a group of hedge funds betting against the yen for the last few months. everybody from david einhorn we all read about in terms of apple. dan loeb. the japanese currency for a long time. it is interesting, a little bit like apple, in that people are starting it pile on just like any kind of investor bought apple, in the end before it collapsed a few months ago. same thing happen where all kind of investors i'm hearing about. getting excited. and it makes me concerned about it. >> all right, so exactly. that is the next question. at what point does that trade reverse? because so much of the big money is in that trade. and because we've seen recent actions by the bank of japan. changes in monetary policy. all of that has affected the trade. >> you know, what is interesting, is some of the smart money. guys like george's firm, he doesn't run it day-to-day, but
1:27 pm
he is involved at 84 years old. they hold on at bearish positions. so i have talked to some hedge funds who are taking money off the table. just as many are add ting to th trade or waiting for a pull back. they say they will get on it themselves. so i could see the yen weakening much further here. >> what do you think will be the tipping point, greg? you said you are worried about it. we know it is a crowded trade. what do you think will be the tipping point to get this trade to reverse? >> all a question of what the government does. the government's been talking tough and talking about finally defeating deflation. talking about it for a long time. >> a long time, yeah. >> but people are convinced perhaps, and it is different than sort of the bet against the british pound that george did years ago and that this time you are betting with the government. it is a little bit like don't fight the fed, don't fight the japanese central bank or the japanese government. so people are piling and betting that the japanese government can make some headway here.
1:28 pm
and we will see if they are able to. they are able to deflation and spark the economy there. >> all right. fascinating reading. thanks so much, greg. >> ty, back to you. >> sue, coming up on "power lunch," the ultimate blind date. talking about going into a housing market, you know. nothing about, you might run away or you might fall in love. that's up next. on, our weekly feature, the powerhouse. ♪
1:29 pm
[ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim.
1:30 pm
from td ameritrade.
1:31 pm
welcome back to "power lunch." taking a look at metals complex, we are lower across the board today. gold prices about $10 lower. couple of reasons for that. generally, the cautious tone in the market, but also the world gold council releasing data that shows that gold demand fell in 2012. you also have a stronger dollar today. that is not supportive of gold prices. traders are tell meg, expect gold to be range bound. if we get through 1625. 1580 is the next stop to the upside. we are looking at 1670.
1:32 pm
meantime, platinum and palladium today. this after production rose last year. the concern in south africa is that platinum concern is decreased. that is driving prices up. george gear why from rbc telling me it is reacting it weakness in physical demand. for now, back over to you, sue. >> thank you so much, jackie. all right, bob pisani has been waiting patiently in the wings for hours here. you're having a hard day. >> a hiyperbole there, folks. >> no, nothing is working for you today. >> utilities, on the weak side. telecom stocks on the weak side. but the airlines are the weak group. not because they have any problem overall. just that this is the last big mega merger, the u.s. air/american deal is the last big merger out there. now that we have them all in line, what is there to look forward to and consolidation isn't one of them. the xal is one of the worst days in a long time. remember that is at five-year
1:33 pm
highs. i want to note something interesting here. maybe kenny can comment on this. we are going to see some of the ice traders. some of the new york board of trade come down here, kenny. those people, there is 30 to 40 of them, remember buying the trade a year ago. specializing in cocoa, coffee and cotton. they will be here, trading here on the floor of the new york stock exchange. these are people doing electronic trading. but over in the blue room, a room right next to us. and so at the nyse, we are trading futures. trading commodities. stocks, as well. and this deal is not contingent on the ice deal with the new york stock exchange. this is a separate -- >> they are coming one way or the other. >> yeah. >> weigh in on that. >> i think it is insane. it shows where the future is going, right? maybe it opens up an opportunity even for me and my customers to get involved somehow in that. but we will see as that unfolds.
1:34 pm
>> more synergy. >> speaking of which, synergy brings us to the activity. we are seeing lots of big deals when last year there was a derth of big deals. interest rates are still low. >> i think it screams the fact that there is all this money on the balance sheets and they have to put it to work. do something with it and we are getting to the point where i think we are looking around and seeing there are great deals around there. we will see more of it as the year goes on. once we get more clarity on the fiscal front, policy front. >> and a lot of it doesn't involve debt, either. and could you do debt because of the rates being so low. >> right. just pay cash and be done with it. >> and the numbers, by the way, numbers are not overwhelming. but the dollar value is large because of what looks like the deal going through here today with heinz as well of course with the u.s. air deal. then other things that are floating out there. i don't know what the dell deal means in the long run. but the dollar value is a lot
1:35 pm
higher recently that's it's been. >> do you worry with the consolidation that's occurring, a lot of times after that, you get job cuts, layoffs, you get smaller companies of the combined companies and difficult -- >> and junk in the last five years. >> the word synergy is usually a phrase for cost-cutting. >> restructuring. exactly. >> i think you always have to worry about that, right? but it seems hard pressed concerning what we have all been through. what we have been through and where companies have laid off is that that much more synergy. >> in other word, mean and mean already. >> lean and mean already. >> what about the market? >> we continue to churn, right? it almost feels apathetic, right? that there is no direction one way or the other and the market needs the direction of break. but that being said. we trade in the very tight range and vix is at the low and it gives a signal and sign that there is some kind of consolidation. i don't expect did to fall off the edge by any stretch.
1:36 pm
but i say it needs to consolidate. whether that is 3 or 4%, that's what it. >> that's what it is. thanks, guys. hope the printer is working for you later, bob. >> will do. >> selet's go over to the nasda. seema mody is there for us. seema? >> angie's list making a monster move to the upside after reporting better than expected earnings thanks to increase and paid membership numbers. stock is fuelling the russell 2000 index to a new high. also a volatile weak for shares of blackberry. down sharply yesterday on bearish sales side note. today deutsche bank joined in but bouncing back with traders seeing the recent move to down side as a good buying opportunity. also news that former co-ceo sold his stake in the company. also another mover, eye on directv, off of its highs. one of the top performing stocks on the nasdaq 100. good earnings fuelled by increase in subscribers.
1:37 pm
stock up .2%. some sectors we we are watching. social media liked today. facebook, groupon, staging a come back. biotech underperforming even though regeneron growing. you can see regeneron and alexion and affymax. >> thanks, seema. back to the bond market. rick santelli tracking action at cme for us. over to you, rick. >> thank you very much. supply is done. 72 billion taken care of. are we selling off? no, we're not. on the day, even with the roll of the new guy yesterday, 30s very similar. can you see after 1:00 eastern, we started to get more buying. that roll will alter how some of the charts look tomorrow for the third year. let's switch gears a bit. let's look at euro currency. if you look at two-day chart of the euro, we have been talking about the pivotal area.
1:38 pm
134.5 to 135. so say traders. traders are happier today. if you look at a chart one month, this is looking tappy. the yen, well, today the yen has taken a bit of a breather today. look at one year chart. traders call it the gee whiz trade. g 7, g27. that gives a pause it euro and yen trades. many traders think the yen has a long way to go and not to the upside. tyler, back to you. >> rick, thank you very much. let's recap some of the big headlines driving today's market session. coach moving lower. ceo will step down next january, remaining as chairman. he will will be replaced by newly appointed president, victor louis, from the former chain baccarat.
1:39 pm
> now, more evidence of a rebounding housing sector. the reit index with a high ppt all this with juicy yields. diane joins us from washington with whether the trend can continue. diana, can it? >> i think it can. and reit is providing that. average yield is 3.8%, higher than the ten-year treasury yield. that why reits are on fire. let's look at the sector then we will name names. hospitali hospitality, healthcare and senior housing. residential multifamily apartments has been underperforming according to some analysts. geographically sensitive and has taken a hit due to recovery in single family housing market. as rental demand continues to rise, you may see a turn there.
1:40 pm
all right, let's name some namees. hospitality properties. government reports from. there you see the specialty reits i was talking about. in the apartment sector, alexander gold barb likeses iks property trust for southern california exposure. it is poised to outgrow the national average because southern california was late it recover in multifamily so it is just doing that now. he also likes high quality malls. like simon properties and ddr. student housing is also really picking up. that includes american campus communities and education realty trust. hope i gave you enough there. reits also average about 10% profit 0r fund from operations. add that to dividend, not a bad play at all, tyler. >> you just touched on it. aren't there tax consequences you need to be aware of with respect to the payouts? >> yes, exactly. reits are complicated and not for every investor out there.
1:41 pm
you have to look at what sector specifically. you can't say all reits are made alike. but hopefully that will help. >> exactly. there are reits, then there are reits. >> ty, i know have you heard this before. love is blind, love is stupid. but don't fall in love with the house you're looking at until you do your research. the powerhouse is up next. what's next? he's going to apply testosterone to his underarm.
1:42 pm
axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. oh, just diagramming this accident
1:43 pm
with my state farm pocket agent app. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model. uh, bonjour. [ male announcer ] state farm. more mobile than ever. get to a better state. welcome back to "power lunch." i'm josh lipton. the highs on the session up some 8%. time warner in talks to the majority of its "time" magazine division. the nation's largest magazine publisher with titles like time, "sports illustrated" and people. the valuation ranging from 2 to 3.5 billion. again, meredith up about 8% right now. back to you, guys.
1:44 pm
>> thanks, josh. well, fidelity says that 401(k) balance grew it a record in 2012. today on yahoo! finance.com, we asked, are you putting more money into your 401(k). 20% say yes, markets are hot. 58% say i'm keeping it the same and 22% say, no, i'm pulling my money out. let's see what is coming up on "street signs." >> hey, as we have been watching the carnival triumph slowly pulled back into the port, we will talk to a reputation expert as well as a host of other guests on all angles of this carnival story. also in our nerd alert segment, steve has one very wonky stat that is nonetheless going to wow you. and also, our valentine's day special segment. which stock should you date? which one should you bamarry? and which one should you
1:45 pm
divorce. that's all coming up. ty? >> let's say, divorce costs you, man mandy. every time. we will take you through three homes for sale right now to give you a sense of what's hot, what's not and what your money will buy you in various markets. this week we're going to vegas. jane armstrong is with group one in vegas, specializing in short sales. there are 12,986 home sales currently under contract. and average sales price at about 152,783. jane on a scale of 1 to 5 with 5 very strong and 1 being rather weak, how would you rate las vegas and clark county? >> i would rate clark county on the scale, the reason being, we have such low inventory, we have
1:46 pm
almost a -- it is a a great market. yet if our inventory increases, that mark coat change again. >> all right. so there's low inventory, prices are firm and maybe moving back up a little bit. let's start with the listing number one. 3585 australian cloud drive in las vegas. it is a short sale seeking a cash buyer listed for about $150,000. take us through this house. >> this is an adorable house in the master planned community of summerland. on the west side of las vegas. this house would be a great starter house. it would be a great investment house. and it would be a great retirement home for someone wanting to move down. it is -- >> how long has it been listed, jane? >> this house is actually under contract. i listed it -- i had multiple offers within hours. >> so it was a quick one -- a
1:47 pm
short sale which means that the seller -- >> this is a quick one. >> the seller will sell it for less than he or she bought it for and owes on the house. is that right? >> yes. >> that's what you need to know about that one. taxes are very moderate. about $1648. i pay -- more than that in a month in my town on a house that ain't worth much more than that. let's go to the second listing. 3300 mist court in las vegas where there is not much mist. but there must be on mist court at $340,000. why is this house high? >> this house is a great house. it is also in summerland. in a gated community. it is a little larger than the house on australian cloud. it has a pool. it is in an all single story development. it is higher just because of square footage. >> this one is 2300 square feet. the first one was, as you said, a good starter house, only 1400 square feet on that one.
1:48 pm
>> that right. >> how about this one? has it been on the market for a while or not, jane? >> same thing. i put this house on the mark and the within minutes i had other realtors calling me asking to show the house and we went right into contract. >> look that furniture. that could be right out of wayne newton's house. >> beautiful home. >> our powerhouse of the week at 1350 imperia drive in henderson. 1.87 million. this is a beauty. >> this is. this is out of o our office in end henderson. this is not a short sale. this is a traditional sale. almost 9,000 square feet. it has a six-car garage. it has -- >> six-car garage? whoa, baby. >> with a car lift. it is air conditioned and has a workshop in the garage. >> my goodness. look at the wine cellar, will you?
1:49 pm
wow. >> 3,000 bottle temperature controlled wine cellar. >> do they throw in the white tigers, jane? >> they might. we can ask. >> that's a beautiful home. as we see it. for 1.789. has that been on the market a while or snn. >> that's been on the market since september. >> there you see taxes -- >> go ahead. >> our high-end market takes a little longer. >> of course it does. taxes there under $14,000 on 1.7 million home. jane, thank so you much. we appreciate you being with us on powerhouse this week. sue? >> thank you for having me. >> you're welcome. >> ty, thank you very much. with all of the horror stories about conditions on that carnival cruise ship, well, with more to come, will this damage the entire cruise industry? all ahead in our power rundown when "power lunch" continues. how do you keep an older car running like new? you ask a ford customer. when they tell you that you need your oil changed you got to bring it in. if your tires need to be rotated,
1:50 pm
you have to get that done as well. jackie, tell me why somebody should bring they're car here to the ford dealership for service instead of any one of those other places out there. they are going to take care of my car because this is where it came from. price is right no problem, they make you feel like you're a family. get a synthetic blend oil change, tire rotation and much more, $29.95 after $10.00 rebate. if you take care of your car your car will take care of you. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. pull out the paper and what? another article that says investors could lose tens of thousands of dollars
1:51 pm
in hidden fees on their 401(k)s?! seriously? seriously. you don't believe it? search it. "401(k) hidden fees." then go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. we have every type of retirement account. none of them charge annual fees and all of them offer low cost investments. why? because we're not your typical wall street firm that's why. so you keep more of your money. e-trade. less for us. more for you.
1:52 pm
1:53 pm
time for power rundown today. guys, good to see you. three days, three huge deals. $60 billion. >> merger mania is back with a vengeance on wall street. michelle, what do you think it means, longer term? >> i think, i will say some cliches here. ceos have more confident than using the currency they are stocked to buy. in the case of heinz you don't necessarily have a currency because half of the ownership is private. bottom line means confidence. >> bob? >> first off, it means funding is cheap. but secondly, i think you can look at the other side of this and say that this is a all about people trying to merge to grow now. in a sense it means a lot of people feel there is not a lot of time for top line votes. you have to look at that a couple of different ways. >> all right. michelle, we were talking earlier about the fact that word
1:54 pm
synergy in these mergers might also mean consolidation in terms of employees. do you think that's the case? >> in this, they wouldn't answer that question even though the two ceos were asked repeatedly during the news conference. often times it means cost-cutting. remember, heinz is coming from a position of strength. they thought it was already a well-run company. let's see what happens. it could mean cost cutting. i'm not so sure. >> i think intestify tableably, you will see cost-cutting. brazilianes who bought this, part of their reputation rests on the cost-cutting savings they got from burger king as well as other big investments. they've done well -- >> i think the thing about burger king is there is a lot of low-hanging fruit. that is a company that run better. that is a different story than heinz. >> a lot of people who work at heinz think that's the case as well. let's talk about the return of the 401(k). fidelity reporting balances grew 12% last year. pretty good. >> absolutely.
1:55 pm
so two thirds of that is because the stock market went up. another third is that people keep putting money in. that's good. makes all of us feel better, right? when we have more retirement savings than when we finally retire, maybe it'll be okay. >> with so many people underfunding their 401(k)s for so very long and their retirement plans in general, this has to be good news. >> yeah, here is the thing though. two third of the gains, that we saw, were due to the fact that market went up. only one-third was because people put more money in and you're right about people not putting enough away. you know what the average baby boomer has in the accounts? baby boomers, 50 to 66 years old right now. average in those accounts is $120,000. that's not considering they are close to retiring. particularly the people in the 66 category. let's move on finally, and michelle i will start with you again. because you travel the world. would you, given what we are seeing with that cruise, carnival cruise right now, would you take a cruise? >> i've been on cruises. because my parents cruised. even before this, i wouldn't go
1:56 pm
on a cruise. it's not my thing. question is, does it hurt the cruise industry? maybe if people who are thinking about it don't go. but there are people who love cruises. and i don't think -- they know every ship. they know how many floors. they know how big the cabins are. >> they do. absolutely. bob, also after the tragic costa concordia accident a couple of years ago, a lot of people were writing off the cruise industry. and that was not the case. >> didn't happen. yeah. i agree with michelle. i will just say this. wait until everybody get off and starts posting pictures of this. the down side is the worst part is yet to come. wait until you see pictures. but i would note that i think experience cruisers, the kind of people michelle was talking about, will not be deterred by this. they already talked about an eight to ten cent hit on earnings as a result of cancellations. >> i will show some pictures and interviews tomorrow. because i'm leaving for mobile as soon as we finish this. >> fantastic.
1:57 pm
>> live tomorrow. >> tough pictures. >> thanks, guys. appreciate it. all right, another $2 billion acquisition today. this time in the healthcare sector. we will tell you all about it when tyler and i come back on "power lunch." great, everybody made it.
1:58 pm
we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location. hey do you wanna get a drink later? we replaced people with a machine.r, what? customers didn't like it. so why do banks do it?
1:59 pm
hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

122 Views

info Stream Only

Uploaded by TV Archive on