day on trading session, up 22 at 1334.20 on the trading session. an interest rates were 2.59% on the ten-year, but the 0-year everybody is watching because we have a big selloff in the 30-year and that's moved the interest rate higher. ty? >> that will do it for "power lunch." >> "street signs" begins now. >> indeed "street signs" does begin right now. hello, everybody. welcome to the show. we're preventing the demise of a canadian national icon. blackberry looking into every single option, from hot to not. have apple stores become boring, and when does that say about the stock in the bears starting to feel a little smug, but will they have the last row and bet you'd like to own a mass rattie, right, but now one of these babies is more within your reach. you might be on vacation

yourself, you'd be in pretty good company because a lot of traders are away on holiday so it is admittedly light trades but the s&p 500, which is slightly town today, has now dropped for five of the last six sessions. the biggest story of the day is blackberry. is going private the answer? here to discuss herb greenberg, jon fortt and joining us interest toronto "national post" tech reporter and dan ernst from hudson square research. first to you, jon. give us the very latest on this story. >> as we've said, the market cap is at around $5 billion, 3 billion of that almost in cash. pursuing strategic alternatives which could be a sale, could be a go private, could involve partnerships though they have tried that already. even the go private is tricky. we've steen happen with dell. what if a carl icahn shows up and makes it more difficult, so you've got to wond er how the

founder of the company might be involved in something like that or even some of the large shareholders. taking a look at their position in the market, blackberry's market share down to around 3%, 4% depending on whether you're looking at u.s. or global com scores. last quarter they moved around 2.7 million blackberry 10 units compared to nokia's "columbia"'s did 7.1 million and the service revenue is declining. blackberry 7 is the bastion of service revenue. carriers have been pressuring them to bring that down. blackberry 10 not bringing in that same kind of revenue or profit. >> thanks very much. i would like to bring in matt now. i think something really interested happening is the canadian government actually came out and said we wish blackberry well which makes me wonder to what degree, matt, is blackberry considered a national treasure kind of like nokia has been with finland? >> in the past the canadian government has said any

potential sale of blackberry would definitely be something that the government would look at closely because i think there's definitely some degree of reticence about giving up control of sort of this national treasure, if you will, to a foreign entity so that's something they have gone on record that they would like to look closely at. >> to that point, i'm wondering, matt, might there be a very nationalistic feeling, private equity form in canada or other potential buyer that might want it to stop it from going into foreign hands, or is that just taking it too far? >> kind of hard to say at this point of definitely in certain circles there's a lot of goodwill for blackberry, still very much the desire not to see them as a company fail. the whole waterloo hub where you have a lot of smaller companies, a lot of startups, there's still a lot of goodwill towards the company where a lot of these people, either have worked to blackberry or gone on to start their own startups or are working on accelerators and gone to school where blackberry has invested a lot of money.

i think there's definitely still, you know, a lot of interest in the company and a desire to see it succeed and whether that means a canadian entity of some sort wants to invest money and to keep the company going, i don't know. >> no one wants to ever see a company fail but what's really interesting on the stock, dan ernst, looking at the year-to-date performance of blackberry and some of its other major smartphone rivals, samsung is down and apple is down 12%. htc is down 48%. it's not like it's only stock that's been losing in terms of a stock price this year, but in terms of going forward, what do you think is the best option for this company? >> i mean -- >> dan ernst? >> the problem for blackberry is that the platform was probably two to three years late to come into market so the large part, you know, maybe the smartphone market growth is over, but either way blackberry has missed it so i think the risk to canada is not that blackberry goes into foreign hands but that it

actually goes out of business entirely so someone coming this there and taking it private has to look at what's the future of that company because while it's a reasonable digestible transaction, we actually upgraded the stock because we would fear being short the stock into something like this, always someone willing to do it, right? with a $2 billion enterprise value, a number of people strategic, financial, that could come in, former owners using the current balance sheet so i think that that's a real possibility. from a stock perspective i wouldn't want to be short it but from a long perspective it's hard because in the last three quarters they have lost 8 million of their subscribers but blackberry service revenue is not going down but going away. under the new bb $10 contracts they are getting zero dollars per subscriber and that was 100% of their profit in the last year and a half. there's not a lot of stories in technology where you have a low

volume produce irv hardware that makes great margin. >> in the end there's limited upside potential. don't want to short it because they have cash on books. >> their issue for blackberry is i don't think that there's an obvious strategic bias. when they go out and say we're going to look at all options, which, by the way, they said they would do last year and from everything we can tell they never acted upon that so now that the situation is actually worse. >> that's because when mr. heins came in as ceo he was looking for opportunity and he criticized anyone who dared criticize the company at that point and after being in charge for a year or so -- >> you think he's eating humble pie? >> no doubt that this is

difficult to make this decision but going privately will ultimately be able to pull it off. i don't think that h-p or dell are in a position to execute something like this. the koreans are doing very well with android. i don't think the u.s. government would allow the chinese like lenovo to buy it and service companies like ibm are seeing the service revenue at blackberry go away, so i don't think there really is an obvious outside bias. >> htc is getting real aggressive as well with a $1 billion marketing and advertising campaign with robert downey jr. >> that's right. >> let's just change gears for a second because i want to talk apple specifically because all things reported over the weekend and unvoile t-- unveil eed the

smartphone. our question today is have apple stores become boring. what do you think, herb? >> the real question is are people still going to apple stores the way they were? in other words, are they still as crowded, and one thing i would like to take a look at the actual reits. apple stores have been 12%, 12%, 12% of overall revenue quarter after quarter and basically it's shares of apple scores. whether or not they are boring or not, they tend to trend the way apple buys their products. >> if it's getting boring and you don't want to go to the store. radioshack is even copying the concept. looked like an apple store. >> they are night and day.

>> it's execution. >> the one on the upper west side. >> i don't care what it's looking loy. dan, what do you think? >> with enagain, it doesn't really matter what it looks like. do that, microsoft is trying that and samsung, best buy which apple already has. what apple has what no other technology company has is a global dealer network of evangelists where any store in the world you can walk in and say, hey, i wanted to know how to do this on my iphone. i have this issue with my ipad and what's the answer to that? >> it's the service you're talking about. >> not just part of that is going in and talking to a clerk and you have a global support nextwork and if you have an issue, there's this option

that's a lot cheaper and else has it. to me it's binary. there's no technology in the world you can buy and say i have a problem and you walk in and get it fixed. >> you have a bay on blackbury? take on your nationalistic cap for a second and move away from blackberry? what do you think of apple? >> as lop lar here as many other parts of the world. people have iphones, you go into one of big apple stores they are totally jammed, buying things or getting their iphone or something fixed. >> it's not a question of whether it's boring or not boring, it's a question of are people still going in to them and are they among the per square foot basis in any mall that you go to? >> a luxury store, like a coors

or a coach or tiffany where they have a global network. it's high matchup because we're not -- they are keeping it 100% themselves. >> not motor a lot of other technology companies in the world that have introduced three new meshable definable and portable segments. apple started with just pcs >> comes down to this, guys, compared to what? >> jon, boring or not in. >> compared to what? which store is more exciting? you can make the argument that your local movie theater is boring if there's nothing there you want to see. i think a lot of people wish that were google stores out. there aren't really. we'll once the new products come in if they are still bored. >> people want to innovate.

september 10th is apparently the date. herb, you're going to be back. >> you'll be up big-time. this held line has you a little core i had. a a massarotti for middle class? kwergs about the figures. how about this massarotti? why do you think, by the way, of a mid-sized massarotti? tweet us and if you want to be really cole do @ -- ty solution r information safe & secure. century link. your link with what's next.

well, forget the running of the bulls, market bears seem to be taking over wall street all of a sudden. the dow's negative performance last week does seem to be weighing on investor sentiment. an investment group said the highest bearish sentiment so far with 62% of respondents expecting the s&p 500 to be lower one month from now. let's bring in bob pisani who knows a thing or two about the markets and good old herb as well. do you think it's justified or is the sentiment overblown? >> first off, 1.5% off of the highs that we have. >> why? >> would i hope if what's going to move stocks forward i would think underperformance for a few

weeks might be enough, even down 3%. that's the pattern all year, let it drop 3% and buy on that. the one thing i can't quite get straight is whether or not there will be a serious effect on the markets when the tapering is announced in support, assuming there is. this will be a short-term drop and the market are rally after that? when you see crossity of this market which has been so strong. it wouldn't surprise anyone after that kind of a run to see this kind of action. i mean, there had to be a point where people do not trust the market, and they don't trust it. the traders don't trust it because they know in's going to be some technical lord knows what. >> because everything so far has worked against that apocalyptic theory going on. i agree could you have a glitch all the time but that's not a good trading strategy. the traders won't make money on that strategy. i think the taper thing is the main issue of how it's going to

affect the market. the other thing, herb, is the stability of europe. the german elections are coming up september 22nd. they have a lid on europe like you wouldn't believe. they don't want anything happening until that happens. after, that look, to my knowledge, it looks like greece will need another bailout and portugal will need another bailout and a lot of money is going into europe right now from the u.s. because they are hoping there's some kind of bottom but that's not clear to me either. >> we'll wait and see. meantime, thanks a lot. bob pisani. herb, don't go anywhere. it's reported that company directors are trying to give bill ackman the boot. ackman is on the board of directors, by the way and also jc penney's largest shareholder. herb, thanks for sticking around. what are you hearing is the latest on this and what's going to happen to ackman? >> the board cannot kick bill ackman off. what they would have to do is call a special meeting of hair

holders. in order to do that before the annual meeting of shareholders which isn't until may 14, they need 6 out of 11 board of directors to do it. right now it seems like the favor is against ackman. you need the majority of board members to call a special meeting. i don't know that it's going to happen. i'm not sure that's what jc penney needs right now. he's life-threatening to get it off? if he's trying to agitate for changes and these changes are unpopular, is he going to get the way? >> i think the interesting thing perry capital, another hedge fund last week, report that had they also have a stake so ackman actually has a little bit of help on his side but you're right. it's a total mess and i think the longer they fight it out the harder it is going to be find a number. >> is this going to happen while the infighting is going on? >> they have another earnings

report. in a few weeks they have the martha stewart case that's still pending. there's a lot of things that could go downhill even more than that. >> the in box is high. >> there's been a little bit of chatter because last week when you had the howard schultz comments about this being despicab despicable, a tremendous ceo and ran the company and then became a chairman and somebody else ran it and some are saying wait a minute, when howard schultz came out and did an end run and what was perceived as an end run, a memo leaked about his ceo jim donald at the time, people said, boy, you know, sort of similar to what he's doing here. not the same thing, but it's worth noting that this kind of thing, you know, just because a director tends to go rogue or do something like that is not necessarily, in fact as i mentioned on "fast money," warren buffett, actually in his 1993 shareholder letter suggested, that, no, if you're a

director you need to let your voice heard even if it's negative. >> people have played that trick before. >> dan loeb is taunting bill ackman saying never interview with an enemy when he's in the process of destroying himself. what do you make of that? >> all a big me. the more important thing i hi is to get the interest and the ales up. you foyt see this and that may not really impact your object or desire to want to shop. >> we haven't heard anything about that yet. >> that could be the domino effect. as long as the merchandise is what it should be, whoever decides what that is and the traction starts to pick up in the store, that's more important than what's going on here with

the board, though it is really fun to talk about it >> it is indeed. >> thank you so much. >> you're fired. a major media ceo pulls a donald trump. what was he thinking? and then later on, the brains behind tesla goes george jetson on us. it is, by the way, the coolest headline of the day, and it's all coming your way. 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. [ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait.

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today we're watching two really big media stories for you. one is giving donald trump a run for his money and the other is leaving a lot of us kind of strachg our heads. julia boorstin, let's start with this crazy story about aol ceo pulling a trump on us. >> reporter: well, mandy, aol ceo tim armstrong looking to turn local news network patch profitable by year end and hosted a conference call last week with over 1,000 employees telling them if they are not on board and they should leave the company. here's a leaked clip. if you think what is going on right now and you want to jou around about it you should pick your stuff up and the up is, and

i'll ve-- >> right this tim armstrong is talking to abel lenz of patch who regularly took photos during meetings. aol isn't commenting and cnbc has not confirmed lenz' firing but s his out of the office message says i'm no longer working in this role with patch. so why does armstrong sound so emotional? he we be particularly invested in patch's success because he cofounded it had and cold it toal and now armstrong is taking steps. the company will now look to close 400 partners morris local or news site.

>> mandy, i would really like to ask you about the latest ongoing drama between cbs and time warner cable because i know you've been following that spitting match since the very beginning, and there's something new this to,story, too, right? >> well, they did go back to the negotiating table last week, but they still have not come close to a deal. we haven't heard anything official from either cbs or time warner cable about when they might resolve the standoff and end this blackout which we're now in the tenth day of, but there has been a lot of talk about ratings. ratings at the los angeles, they are down by 33%. the statement says our local news television statements have benefitted from strong ratings growth this summer, i think it means throughout rest of the summer so the net effect of the blackship hasn't created an overall ratings hardship. august is one of the lowest

month for ref accuse. it teed likes local is suffering and national is continuing to hold up. >> juevolia, thanks you slivery. or crazy like a fox? and the twitter rant about larry summers and the story behind this unbelievable video. essustains is back after this break.

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it is street talk time hitting the five names on the move. first up the stock sysco, the restaurant supplier. shares are falling today as earnings missed expectations. they earned 50 cents versus a

52-cent income and q4 income fell by 9 boston and the company is citing higher operating expenses and restructuring charges and the stock is off 5.1%. dole food. it's announced plans to be taken private by the chairman of the ceo david murdoch. dole stockholders will receive cash for each share of dole's common stock and the deal will place the total enterprise value of the company at approximately $1.6 billion except this transaction is expected to close during the fourth quarter of the year, and krispy kreme has been upgraded to buy from neutral of janney capital markets. let's bring in herb greenberg. what do you think of krispy kreme? >> other than the fact they do not return my phone calls or receive my e-mails. i think it goes back to some history, the company's turnaround is pretty impressive. the company's ceo was only money a while back and making a very strong case for the stock and the operating margins look very

strong. this analyst is saying the turnaround is just beginning. and you'll want to watching the earnings and the quality of the earnings as they open up the stores and see if they can get beyond what happened the last time around when krispy kreme doughnuts became too available, so available. >> did you just see that chart a moment ago? let's bring it back. >> that's the stock. >> one-year up chart, up 264%, talk about a turnaround. >> turnaround of a stock. you do have these big sales rebounds, big earnings rebounds, and i think that's what you're going to watch and big margins, fat margins right now. >> since brian is out why don't you take a look at your gold miner etf and i have no idea who is winning. >> i am? he's in copper and you're in gold. >> the gold miners' etf has been strongly rebounding since two and a half weeks ago when i pout it and when i started to think this is an interesting thing to do. not a recommendation but i do disclose it because i do own it and it's my bet against brian

that the gdx will outperform covey because the gold miners were so wiped out, as, by the way, was coffee so we'll see which one has it. >> i think the shorts are coming off left, right and center and poem are finally feeling a bottom has been put in. >> until the next bottom. >> let's move along and take a look at shares of tesla because they are taking a beating after getting downgraded at lazard. let's bring in phil lebeau. when we say downgrade, not really a downgrade, an ev evaluation as as opposed to a fundamental problem. >> and when you look at the note, and i've had a chance to read through this a couple of times they are saying basically, look, if you look at valuation of tesla right now, all of these things have to go right over the next few years in order to justify this multiple relative to other auto manufacturers, and this ultimately comes back to a question herb and i have talked about in the past.

do you value tesla as an auto manufactur manufacturer, or do you value tesla as a tech company, and clearly there are a number of xhust mers out there who value tesla more as a tech company than an auto manufacturer and at some point in the next couple of years this will be hand out by investors but that's essentially what they are saying here when you look at this note. >> and i would go so far as to say not an auto company or a tech company but as an elon musk company because that's the real premium here. >> and that's what people are betting on. the analysts when they make their downgrade. it's all about risk verdus reward. it's about what will happen next quarter whether when and if the company says the metric you're looking at, not quit what we expected and then they respet themselves, look at the history

of amazon or netflix, all have a big reset somewhere in there, just don't know if it's going to be next week, next year or someone down the road. >> a friend of mine bought tesla at $100 a share not long ago and already it's like a daily up and down with him. whenever i talk to him. oh, we're up $8 or we're down and he's -- they are not sure about the valuation themselves. >> does your friend who owns it, is he a car enthusiast, an investor or serious investor? does he really understand the risk? i'm just kind of curious what kind of investor he is. >> he's a serious investor. does he understand the risks? i'm not sure he does because even he problems when i say where do you put valuation, do you value them as a tech company or auto company? >> sticking your neck out and making big bets, elon musk is set to make a real big announcement and this is what

everyone is really a-twitter about. >> on twitter within the last hour that elon musk put out a tweet regarding the hyper loop, and in the tweet he said pulled an all-nighter working on hyper loop as did others. hopefully not too many mistakes of we'll publish the link at 1:30 pacific, 4:30 eastern time. the hyper loop, essentially elon musk has said that he's coming up with his theory for mass transit in the future. it would a cross between the concorde, rail gun, air hockey table, so that gets the imagination going. he has no plan, by the way, to build the hyper loop, and just one more thing to keep in mind about some of the little morsels of information he's put out there in the past. this hyperloop would make traveling between l.a. and san francisco, cut it down to a 30-minute trip, solar powered so cheaper than using conventional fuels and thetics would cost less if you're taking a train or plane. >> just so people get the visual.

sucked along one of these pneumatic tubes. can you imagine your stomach? >> he says that this does not involve a vacuum. it does not involve vacuum technology. there's enough out there that everybody will be curious what he comes up with at 1:30, but, remember, this is his proposal or his idea for the future. this is not a company he's starting, not him saying i'm putting down "x" millions of dollars to develop the hyperloop. >> right. >> at the end of the day this is his theory for if you want mass transit to be cheaper and faster in the future, here's how to do it. >> okay. thank you so much for that, phil lebeau. better break in now because we have breaking news. jon fortt, what is it? >> mandy, a u.s. district court judge has dismissed a suit from a pension fund against hewlett-packard and former ceo mark herd. this has to do with ethics issues around his res ignition

over expense account issues and those tied back to a relationship that he had with a contractor jody fisher, also, hp had been involved in a leak probe years before that, the pension fund trying to pursue some fraud claims over those issues that hp had, the judge saying that based on the wording that hp had on its files, a fraud claim is not a valid path for the pension fund to -- to pursue, so they are, it appears, from this ruling off the hook on that potential suit. mandy. >> the lawsuit dismissed. thanks very much for that breaking news. jon fortt. nerds, i know you're out there, and coming up next on "street signs," we have a really fantastically nerdy nugget of the u.s. deficit. don't close your eyes because it's really interesting. why it matters to you, plus, can you name this mystery celeb. this celeb went on a full-blown

twitter rant about larry summers possibly heading up the fed. which star did it next but first bill griffith, tell us what's coming up on "closing bell." >> busy couple of hours, the bull rally hitting a bit of a resistance level but the name of five companies that could spark the next rally if they would only split their stock. you briefly touch on it. but it's base chi putting something up forring is and who could probably want to buy the company. maria is out and wicking raspberries in the hamptons today. kelly evans is here with me. stay tuned. ♪

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the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together.

well, we're following a developing story out of florida. a resort in central florida is being swallowed by a sinkhole. officials estimate the sinkhole to be about 40 to 50 feet in time ter. about 20 people were staying at

the villa at the summer bay resort in clairmont. everyone, thank goodness did, get out safely. the resort is ten miles west of disney world. okay. nerd alert time. pretty big news on the deficit and our resident nerd steve liesman says we should all care. >> i'm really interested whether or not the rates at that hotel are going down. the budget deficit is coming down and this has an effect on growth and the fed that investors should be paying attention to. about 40 minutes ago the fed told us the july deficit was $97 billion in line with estimates but the year-to-date deficit is 40% below last year's revenues. spending down 1.9% because of the sequester, and a wind down in defense spending that results from the end or the winding down of the wars in iraq and

afghanistan. for investors this matters because the worst declines of government spending are now expected to be in the rear view mirror which could help the growth numbers in the quarters ahead but there's also an impact on the fed. better deficit numbers mean less debt sale by the treasury so if the fed does not taper it will be taking a bigger part of all the debt the government sells. it will be gaining ground or easing further just by staying in place so for reasons it should be clear fed tapering could mean no change in the share of the government debt the fed purchases which means less effect on interest rates. >> very quickly. i want to ask about a treat that was tweeted out earlier today. lower u.s. budget deficits mean lower credit growth which means slower gdp growth. what do you make of that? >> i have to believe that this was a statement made because he only had 140 characters. but otherwise it shows an astonishing lack of understanding of the economy from bill gross. i think that's not true.

>> that could not be true. what i think bill is saying in the absence of private sector credit growth, right? gdp growth in the united states is in fact very, very tied to credit growth overall. >> right. >> but not just government growth. in fact, over time it's more tied to private sector credit growth. in fact, if the government were to ease off, and had you an increase in private sector credit growth you'd still have pretty good economic growth so that's the key. >> that is the key. >> i'm hoping, bill, you meant, that and were limited by the 140 characters. give me a call. >> before you go, i want to ask you this question. can you name this mystery celeb, this person went on a twitter tirade about larry summers being on the short list to be the next fed cheat. the architects of bank deregulation which turned straight-laced banks into casinos and bankers into pimps may be the next head and larry

summers, mr. deregulation has never stepped forward to say my bad. five years of worldwide recession and not a peep, and finally, guys, larry summers is a huge advocate of higher executive pay and bonuses for execs whose firms received billions in federal bailouts during the crisis. who do you think? >> no idea. >> can't you see it in the silhouette? >> bette midler. >> why is it hollywood celebrities think they can talk about finance, but say the financiers can't talk about hollywood? >> i'm sure there are plenty a la george clooney and his comments about dan loeb. >> i'm sure there's plenty of wall streeters out there that have a bit of hollywood gossip for you and vice versa. still ahead, go big or go home. that's what one money manager says is the best bet for your money right now. the top three picks next and massarot r

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the next guest says we should go big or go home when it comes to stock picking. let's name some names and bring in robert at shore capital management. robert, great to have you with us. you said the u.s. market is really not screaming by like it was sometime ago, but there are still individual names out there. why don't you start with sisco? we've had the restaurant supply, but we want the other cisco with a "c." >> yeah, i got back from silicon valley, meeting with different employees, some old tech, new tech. when you meet with new-tech companies, like apple, google, the innovation can be felt there. what surprised me is when we stepped into cisco, talking to their management and their

employees there, it's that same enthusiasm and passion for what's coming up with them. they're talking a lot about the internet of things. and that's stuff like your nike shoes now, your smartphone, your gas meter. things that are being connected to the internet. right now, about 25 billion devices are connected to the internet. that number is expected to grow by 50 billion. the stock's really cheap right here, 12 1/2 times next year's earnings, 2.8% dividend. a lot to get excited about cisco now. >> all right. you still think it's cheap, despite it's up about 34% year to date. here's a stock that is actually down year to date. i do feel maybe if the china story is stabilizes, things might go its way, and it is caterpillar. >> yeah, the time is right. like i said, the market now, there aren't a lot of bargains out there. i think caterpillar is one of the few that's out there. a lot of it is the china story. if you look at the numbers, gross output of there 10%, the m2 supply, up over 14%. and right now, we're getting velocity. we just saw in july there's

115 billion in will you lending released out of the bank of china. a lot of reasons to get excited about caterpillar. again, this stock, if you take the lowest estimate on the street, 14 times next year's earnings, and you have a 2.8% dividend yield on caterpillar now. >> and the third stock is linkedin, which i understand you don't own, but you would like to own this stock on a dip. linked in. >> yeah, linked in, yeah, it's one of the names being a value investor, it's hard to get our arms around. this is a tremendous company that's led by jeff wiener, the ceo there, a brilliant guy. there's a lot of opportunity for linked in. unfortunately, needham upgraded them, so you're seeing them pop. i would look for a pullback around 215. the thing that excited me about linkedin is the opportunities in advertising. advertising represents only 30% of their revenues right now. so there's a lot of opportunity there. their margins are very high. 87% margins. that's 15% above facebook.

so if you can get the stock on a pullback, i think it's definitely a name you want to own for the long term. >> thank you so much for joining us today, robert luna. >> thank you. up next, maserati goes midmarket. ♪ [ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this cadillac srx for around $369 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year. (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office,

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maserati is out with a new mid-range car. and i believe this is the first time it's going to be presented on the media, is that right? >> yes, it is. you are the first to see it and drive it. >> this electric blue baby here is called the gibbly. is that right? >> yes, it is. >> what is it, $64,000? >> it starts at $65,000 for the rear-wheel drive version and up to $75,000 for the all-wheel drive version. >> i should introduce you. i got so excited about the beautiful car here with me, along with robert and herb greenberg. bob gray is from maserati. thank you very much for joining us. i would like to know, though, this is a luxury brand. everybody dreams of maybe one day i could own a maserati. now that this is more affordable, does it cheapen the brand at all? >> no, no, we don't believe so. this car is 100% maserati. we haven't cut any corners, just by bringing the price down to 65,000 doesn't mean this isn't a true maserati. if we want to talk about the engines, this engines was designed by maserati.

it's built by ferrari, and it's shared with nobody. it's exclusive for maserati. it's 100% maserati. as you can tell by the design, it's 100% italian, too. >> it really is. >> how fast is this car? we all -- my maserati does 185, does it do 185. >> it's 404 horsepower so 177 miles an hour. if you want to go that fast, you can. we don't recommend it on the streets. >> i would love to talk about all day how beautiful the car s because we are cnbc, let me talk business. i was looking at the stats, right? some of the luxury competitors like porsche, the sales year to date are up 30%. lamborghini is up 28%. ferrari up 14%. maserati 2.7%. >> yes. >> you are lagging. how will you change that? >> yeah, let me mention, this is our kwaut a, and we've been out of the market for the last five months, so we're comparing year over year to a car we had full stream last year. so this car is just coming in to dealerships now. we've had a little bit less

growth than our competition. just last month, we were up 28%. so you can see it's growing. >> you're right now around 6,000, 7,000 cars a years. you're hoping to get to 50,000 by 2015. this car has to do it, right? >> yes. this car will be a big part of the growth. this will make up 40%, 50% of the total growth. again, it's moving into a whole new segment of consumers. >> this is a shuj bet for you, this car. >> this car is really our future. >> what about marketing? you have a reputation for having fairly thin marketing budgets. i don't know whether that's the case for this. if you're going to be relying on word of mouth, how will you get out there in terms of letting people know about this new product? >> one of the important things about this car is to drive it. it really convinces people this is a fantastic car. you'll have a chance to drive it here in the second. you'll find it's fantastic. we're going to do a lot of experimental type marketing, get people to ride and drive the car. >> and, what, tweet about it, blog about it? >> there'll be some of that, and we'll do a lot of digital-type marketing.

>> and importantly, if i look at the base models on the cars, compared with the bmws, other competitors, am i getting more or less at the base model? >> at the base model, we're very competitive with all of our key competitors. >> what will it kick it up to if i want a fully loaded, you know, all amenities in the car? >> all-wheel drive, you can get it up to the high 70s. 78,000. >> this is 100 to 140, so used to you needed six figures, and now you can get it for five. >> that's right. >> move aside, gentlemen. because i am going to take this baby for a little ride. i actually had a little, you know, tinker around with it earlier. >> do i dare -- >> okay. you guys talk, because i think once i close this, my microphone might be possibly cut. okay. let's see. >> the big thing is the interior, right? >> listen to that. can you hear it purr? >> come on, put the pedal down. let's hear it. let's hear it. >> okay. drive away? how do i even -- >> she's like a little old lady behind -- >> okay, drive. whew. let's go. this is beautiful.

"closing bell" is next. thanks, everybody, you're watching "street signs." and bob, you have a beautiful car here. >> thank you very much. and we welcome you to "closing bell." i'm bill griffeth here at the new york stock exchange. the stocks, at least the major averages, just can't seem to get things in gear so far this monday. >> that's right. i'm kelly evans in for maria bartiromo. coming up on the program, it hasn't been a full-blown sell-off, but it does feel like a steady drip for the stocks. the dow down 250 points. >> and today, we haven't been down 250 points, but we have been down 65. also, a tale of two phones. first reports that apple will unveil its new iphone a month from now on september 10th. we will look at what to expect ho