that came out at about 3:00 p.m. just as we were closing up "street signs." we're currently sitting at $8.23 waiting for the shares to resume trade. >> this is a story that is fluid, sort of captivated not only canada where blackberry is based but america because of the rapidity of the decline of blackberry's business. one accounting for more than half of all cell phones. >> quite a lot of volatility, but we can see sitting at the $9 handle. >> listen, folks, here's the deal. if the stock trades markedly above $9 a share you can assume somebody believes somebody else will come in and trump fairfax financial's bid. it's at $9.08. the market is saying we don't think another bidder is going to come in and buy blackberry. jim cramer is with us. herb greenberg with is, josh lipton out west, bringing people in, it's going to be a fluid hour. apple news, poor microsoft by the way, launching the new surface today and you have the apple stuff, now this.

jim i want to hit something that's a little bit conspiracy theory first. fairfax financial owns 10% of blackberry, fellow canadian company. coming in one working day after the massive downgrade cut, job cuts, whatever. does it smell funny? >> i think this is a financial bid. i think by the way, my hats off to the blackberry people. this is a good price for blackberry. i think if you look at the analyst covers people were thinking 5, 7. >> that's my point. is it too good of an offer. >> that's why i think it's not a bad idea to sell some here. >> you would be selling some here. >> i think at lot of people are saying this is too much. the transaction valued at $4.7 billion. mind you, this was a stock that was $70 billion in market cap back in 2007 at its peak. >> in a piece on street.com this morning i wrote this is a company that is in corporate hospice at this point. that's how i looked at it. >> corporate hose pes. >> that's -- i thought that was extreme. >> really? >> let me explain something else here. >> not icu?

>> remember, prim originally bought much of his shares or part of his shares in 2010 at a price -- >> explain who prim is for our listeners. >> the ceo of fairfax financial. >> you've tangled with him, haven't you? >> a lot of people have tangled with him. he's famous for suing short sellers. came in, started buying the stocks, some at 50, some at 7 and 8, a situation coming in with this $9 price, saves a little and says he can do it in the private eye. he has a comment, this could be a new exciting chapter for blackberry. this is not dell. >> exciting chapter. >> because he could do it without the public seeing what's going on. obviously he thinks -- >> maybe easier to fire people. this is a jewel of canada. we may think of it as a declining operation but i mean maybe he can do things privately we wouldn't see otherwise that could bring out worth here? in 2007 i went to waterloo canada and sat down with the ceo, vibrant, exciting like you

picture google or apple today. this is a company that wept interest 5 billion in quarterly sales, seven quarters ago, to $1.6 billion. now you got a bid that comes in, everybody agrees, to mandy's point, the average price target on the stock, look it up as soon as i get my set working here around 5 to $6. >> good deal. >> to take advantage of. and sell some. >> the stock is at 9 bucks. >> right. look, he's a financial buyer. i mean, hasn't this company been shopped for ages now. i'm listening to our coverage, it's been shopped for ages. >> and if you kind of come out and say we were a looking at all kinds of strategic options, one of them being that we could be bought, you are saying to a lot of enterprises out there who might be deciding am i going to continue to go with blackberry as our platform for all of our employees or another company like apple, why would you go with blackberry? it was almost like the writing was on the wall. the minute they said we are up for sale. >> he said our focus is, again as a private company, delivering superior and secure enterprise solutions to customers around

the world. it isn't going to happen that way. >> they can't do that. that's why again, i mean people at home think 9, maybe something behind it and that could be great -- look what happened to dell. what was really behind it in the end? how much more did you get hanging on it it that ver owning the s&p 500. >> we should remind our viewers and listeners, the market is saying no bidder will come in above fairfax financial. roger of inpoint technology, josh out west. roger, what do you make of this offer -- i don't want to call it a deal yet. what do you make of this offer for blackberry from fairfax financial? >> i see this as kind of a temporary transfusion. this is a financial company giving them a lifeline so they can last until the next moment. i don't think this changes the story on the ground at all. blackberry is a deflating balloon. it's this thing that's been running out of air as fast as it possibly can and on the operating side, i don't see them recovering. they've got this nugget of

business which is sort of secure and federal and so on, and that they might be able to regroup around, but it's a much diminished company in that respect. i think this is an infusion of capital to keep them until the next moment when they can try to figure out the next thing. >> you think it's a losing bid on fairfax's part? the market doesn't believe somebody else will come in here. six weeks of due diligence. is there no one else there that you can potentially see that might want to come in? >> well, okay, if you look at what's going on, right now apple and google own the high mobility market between them pretty much and microsoft is making a strong bid to be the third player which is what blackberry was up until recently. as blackberry goes down, microsoft is stepping on the gas, and i would say the they have at least an even shot at hitting that third player, being even in single digit market share they would be incredible in some geographies around the world. that's the place that blackberry had. i don't see them getting it back, given what they have in their hand. >> i guess what i'm having trouble understanding the stock at $9, okay, $5 billion in sales

to $1.5 billion. everybody understands the deterioration of this company and yet you have a financial offer that comes in one working day after this hair cut on blackberry and offers more than the stock is trading at. if i was fairfax financial why not wait until 3 bucks or 2 bucks. it's clear where this company is going. >> i think it's a great point. brian raises a great point. maybe they just feel like if they put this offer out there -- >> stalking horse, perhaps. >> yes. >> but it's been out there. >> well -- >> josh -- >> you have to be careful. if they start losing the talent, the remaining talent that they have, the cohesion of the company, the operating -- in this business, high mobility, if you miss a couple of product cycles you're pretty much out of it. everybody willing looking for work. if they wait longer they don't get anything. >> i'm going to get josh in a moment. talking of the personnel at blackberry, roger, i understand going into this announcement, before this came out, you were

reckoning the ceo was going to step down pretty soon. what happens to him now? >> yeah. well it will be interesting to see what kind of deal he gets. i have a feeling he is a short timer given what he produced. >> isn't that amazing. when he came here -- such high hopes for the guy. he was a breath of fresh air. >> so optimistic but was he unrealistically. >> i guess so. it's a closed system. >> that inventory is the indicator of how optimistic he was. >> josh, come into the conversation. >> analysts talking about, it's in reports after what you saw on friday with the earnings, posted almost a billion dollar loss, $1.6 billion on the top line, way worse than what the street was looking for, thousands more blackberry employees lose their jobs, so the idea would be someone has to come in sooner rather than later analysts saying, step in, take the company private away from the spotlight of the markets and the public, try to remake it into a more viable, stable business.

>> but away from the market spotlight. okay. i get that, josh. here's the thing, guys. to mandy's point, talked about will companies use blackberries. at least now we know what the company is doing. how it's doing. would you be -- if you're an enterprise i.t. guy and you have to make a decision to upgrade your 5,000 employees on a smartphone platform, you don't have visibility into the company you're dealing with, like they won't now with blackberry if the deal goes through, do you do the upgrade? if you're not -- >> no. that's the spiral -- >> i think that's when you're on the hook. it was interesting when dell was going private hewlett-packard took a lot of shots at them but the fact is dell hasn't lost a lot of business, other than the secular decline for pcs. this is one of those where the i.t. guys are being told by their troops and bosses i read in the paper, that thing, laying people off, that doesn't -- >> this is not dell. this has it to deal with a situation where you're really talking ate a major change in how you're operating in terms of using telephones.

communications. >> i brought my blackberry in just for a little -- a little last hurrah. i'm one of the very loyal blackberry users because i really like the user int face but that's another issue. i want to ask about apple which had a record-breaking first weekend for its new phones, right. they topped 9 million. all very happy. tim cook sent out his second tweet ever, he was so joyous on the occasion. >> he should be. >> change things -- >> i was going over the three downgrades. >> yeah. >> the three are basically saying this is nothing new, there's nothing great here, and the chinese won't like it. and they didn't think about the idea that critics would love it. and i think that "new york times" fellow, he convinced me. that guy has always steered me right. this is one where the art critics knew more than the numbers guy. >> when you use the ios 7 and see the advantages there was something there for the people -- >> you like it. >> i love it. >> i love it too. >> 200 million upgrades. >> i love it. hooked. >> compared to 9 million. jim you have to run. >> that's all right.

>> cool. 9 million over the weekend. 5 million for the iphone 5, 4 million for the 4s. this has nearly doubled their next best weekend. >> and they kept the estimates low. i love that. >> scalpers outside the store in beijing, the apple store in beijing were trying to flug off the 5s for 1,468 -- >> i read the chinese hated it. >> one important question. how much is the result of pent up demand and deferrals of purchases from the people from the 4 series and 3 series. how much have they gained market share here. that's a question you must ask. >> a loser phone the answer would be nothing. you called them a super star. i read your article in the street.com. you called them a super star. apple is back. don't contradict yourself. >> that's what you are. a super star. >> yeah. >> and don't you forget it, super star. >> i said the iphone is now back, it's regained its super star status. >> i regarded that as positive. >> talking about it and this is why apple wins. >> beautifully positioned product. >> roger, yeah? >> it's a beautifully positioned

product. drop it right into the slot it was supposed to be. it was well positioned. good job. >> the stock is spontdsing today, putting on nice gains. over the past week the stock is up by 8%. >> they cut the multiple and estimates last week. >> right? >> that's true. >> should be not 12 but 10, should be 46, no 44. next thing you know you have a lot of guys -- 48, and then 12. >> do you have -- we did -- we're not going to toot the horn but on thursday we talked about pandora why it could be in trouble, we used the itunes radio. pandora is getting whacked. people will start discovering this itunes -- >> do you have an opinion? >> why not take something off the table. that was one of the greatest runs ever. often on the backs of people betting against it and then had to cover cover cover. >> once you play with the itunes radio and you can do some of the same -- >> it comes right up. >> channel creation. >> comes right up. >> that actually is important. plus it shows up on the phone, right on your phone and that -- >> integrates the buy feature.

boom. >> the bottom line, what will it do to pandora's stock, down 10% today. how much further do you think it has to hurt. >> pandora cannot go back in the box we know that, but it can't go back to 21, 22. >> the puns on this show, normally go to brian. well done, jim. you took a good pun then. >> i prefer mexican radio. wish i was in tijuana eating barbecued iguana. >> thank you for jumping in jim. we'll let you go. super star, herb. see you later. >> loves apple. contradicts himself here. >> see you in a second. >> coming up, we'll talk more about the breaking news headlines. i think we're going to talk about apple and microsoft. the dodos in d.c. one week until a potential government shutdown. should you start to change how you invest. think pile driver and sleeper hold, mandy. >> and poor old microsoft, yeah, we've mentioned it already. just can't catch a break today. we will look at microsoft's new

tablet, will it do anything for the stock. that's all coming up. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

microsoft unveiling a new version of its surface tablet and though most people believe that surface has been pretty much an inmitigated disaster the stock has not been. since the surface was introduced in june of last year, or announced anyway, microsoft shares are actually up about $3

during that time. seema mody here with a first look at the new surface. seema? >> all right. brian, hi there. we are live at the microsoft event and this is a bigger take away from this surface 2. it's basically the power of a laptop in the tablet package. what i have in front of me right here is the surface 2. priced at $449. this is one of two surface tablets that are being unveiled today. the other one called a surface pro 2. run through the specs. for the surface 2, priced at $449 which is competitive with the apple ipad 4. powered by an n video chip. it has a full size usb port, 34 gig, 64 gig configurations. xbox music and surface pro 2, a mini computer targeting the business professional. it has a 64 and 128 gigs. a lot of memory space. battery life has -- it has increased dramatically by 60%.

also runs on enhanced windows 8.1 operating system. another major take away, microsoft is trying to target the consumer at home and business professional with these two next generation surface tablets. back to you. >> thank you very much for that. sounds like someone is doing loud vacuuming in the background there. let's bring back roger kay. straight to the point here, do you think that microsoft should give up on tablets instead of doubling down like this? >> oh, mandy, i can't answer a question harshly and directly like that but maybe. the fact of the matter is that this is sort of the refresh. this is intel's next generation of clips. do the same kind of performance or better for less power consumption. that's a go ahead turn. but essentially it's evolutionary. fixed a few things, the stand and so on. it's basically it's still priced pretty rich. the full-on unit at 900 and is already higher than the ipad even in its richest

configurations and remember, the ipad is the incumbent in this market. the tablet market. and so microsoft is coming from way out of the money with a unit that nobody knows that much about and doesn't care about, haven't told too many of them. >> it's, roger, such hue bruibr? >> the 128 gigabyte surface is $100 less than the 120 gigabyte mac book air which is basically a full computer, right. i know it doesn't have touch screen. to a bigger issue if we can. >> sure. >> i believe the hardware like the lieu mea phone, the hardware is terrific. if microsoft had done what google did and copied apple's look, right, made it so people understand it, do you think they would be in a better position? why does microsoft continue to insist on going on its own insane direction with every product? >> well, no. i think actually in a way, what it's doing with the phone is okay. having its unique identity is not a bad thing.

essentially the way i see the tablet problem is like this. microsoft needs to establish it in high mobility. high mobility to me is a client or an end point you can walk around with all day long and never look for a plug. they need to establish in that and haven't been able to. in the phones they have a good platform. they're buying nokia and if they use the nokia hardware knowledge and distribution, they can take their platform and hopefully in some some geographies establish a base of real phone users. they have a base in russia but that's based on whatever their distribution is which is a little wonky so i'm not sure if that's legitimate. at some point they can be a third player in the phone market, the smartphone market, and from there leverage their way back into tablets a little bit the way apple is it if you look at the rhythm. started with the iphone and moved to the ipad. that would be a reasonable expansion. the market is looking for a third player. they would like somebody other than google and apple to do business with at least somewhere. microsoft has a shot at this. it has to get out of its own way. >> leave it there, sir.

roger kay, a pleasure to have you on our show. thank you very much. big day for tech headlines. >> up next, the pumpkin blueberry croissant doughnut uproar at starbucks and only slightly making that up. >> and we're getting in the ring to help you protect your portfolio against the three ring circus in d.c. >> follow us on twitter, sully cnbc and i'm @mandycnbc. >> and follow the show on twitter @streetsigns. >> wait. more ways to keep in touch with us like us on our facebook page at facebook.com/streetsignscnbc. >> you're watching "street signs" on cnbc. everything is fine. we'll be right back. ♪

♪ ♪ [ male announcer ] the new twin turbo xts from cadillac. 410 available horses. ♪ room for four. twice the fun. ♪ ♪ with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket.

i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. the dow and s&p are down for the third straight day. it's a bit of a red letter day for the dow because this is the new dow with three new components. goldman, one of those three new components is actually the worst performer. not exactly a great debut on the dow for goldman sachs. >> despite what the books say, dodos are not exstink. they're live and well and live in washington, d.c. the evidence both parties

threatening to shut down the government yet again. cnbc's john harwood is in washington. john, isn't the definition of insanity doing the same thing over and over again and expecting a different outcome? >> it is, brian, but i have to clarify one thing you said in that intro, this is not a situation where both parties are threatening a government shutdown. this is one side and more accurately, a small part of one side, that is the republican caucus in the house and senate, that is threatening to not extent government funding, not raise the debt limit unless they can unplug obama care. republican leaders have been trying to stop them from executing that strategy because they believe, a, it will fail, and be, republicans will get blamed for it. they have not been able to stop it so far. recap where we're headed from here. you've got a few days while the senate runs out the procedural clock before they vote on the attempt by harry reid to strip out the obama care provision and pass a clean extension of government funding. the house, remember, bunched those two things together.

it is expected that reid will ultimately succeed by the end of the week and then the senate will attempt by majority vote to pass an extension of government funding, send it back to the house. if ted cruz, mike lee, others in the senate who are pursuing the strategy, take all the time that's allotted to them, it will not be until sunday that the senate passes the extension of government funding. the house would get it back on monday and then speaker boehner would face a decision as to whether he's going to put that on the floor and let it pass either with most republicans or some republicans and democrat. senate leaders are betting he will do that. it will pass and we will avoid a shutdown, brian. >> john, i would say this, i agree on the logistics is the republicans, but they view the democrats being blind to the problems of the country. my doughdo is a long-lasting comment. >> only one side making a demand in this case. >> fair enough.

thank you very much. >> so with that looming over washington, what stocks should you have in your correction protection playbook? let's get three all-star picks. world wrestling entertainment, newfield exploration and tetra tech. joining us is president of intrepid capital funds. congress is doing wrestling of its own and world wresting as a stock that can be impervious to that noise, why? >>le well, let's hope so. going back to the last interview with john, mandy, i like to remind -- remember the quote by ronald reagan when david stockman ran in and said mr. president, mr. president, if you don't sign this bill, they'll shut down the government and reg began grinned and said, well let's not sign and see if anybody notices. all kidding aside, i think wwe is an example of a small cap equity security that we look for where there's a disconnect between price and value. about $700 million market cap.

no debt. $120 million in cash. cash as most people know is not pay much. you get paid to weigh in the security, close to 5% dividend. two ways we think value is restored in this company in terms of its normal operating income of roughly $80 million. one, they're trying to form their own wrestling cable tv channel which they were stopped. those expense would flow -- they would stop and the income would rise. the second way is, based on their contract with usa and the raw tv show on monday nights, we think rekneel they'll get a higher pricing similar to what they get per viewer at say international speedway or speedway motor sports. the value of this business is in our view the tv contracts which we followed nascar for a long time in the south. we're familiar with those companies as well. >> since you referenced sports i'm going to throw you a curveball. your pick is newfield and tetra tech. everybody should be asking, do you own blackberry by any

chance? >> no. i'm sad to see it go away, brian. i don't know about you, but the iphone with the letters on the glass has never worked like the feel of a blackberry. >> did you own it? i'm just trying to get a fund manager's view on the stock and buyout and the nipe bune bucks? >> it was a little bigger company than we typically look at. i know it had a lot of cash and bounced around. it will be curious to see if this is one more technology company that goes away. the dodo bird. >> and there it is at $8.76 after resuming trade at 2:00 p.m., about 28 minutes ago. breaking news with steve liesman. steve, what are we looking at? >> mandy, thanks very much. dallas fed president richard fisher, plain spoken and open-speaking richard fisher speaking plainly and openly saying the white house has terribly mishandled the process for picking the fed chair and the fed must never be a

political instrument. the choice of the next fed chair should not be a public debate and while he says that janet yellen, thought to be the frontrunner for the next fed chair is, quote, wrong on policy, she would make a great chairperson, according to richard fisher, and hope that the next time we go through this picking a fed chair it's done with more grace according to richard fisher. and then one more comment, peter help pe out. i would like to take a little booze out of the punch bowl and stop adding to the fed's balance sheets. mandy and brian, there is some comments from richard fisher. maybe saying what other people have thought but not said publicly. brian? >> wow. going right after the white house. >> that's unusual for a fed president to make those kind of comments about the political side. >> unusual to say the least. yet he's making the comments to criticize somebody for being overly political. >> and making those comments about janet yellen saying she's, quote, wrong on policy but would make a great chairperson. >> the fine institution of the

central bank is supposed to be independent. have you ever known a picking of a fed chairman to be as political as it is now, steve some. >> no. i've never seen anything like this, as has -- neither has anybody who really has followed the fed over a very long time. >> we shouldn't. only steve liesman should know the fed chairman. we shouldn't know. you know what, i'm making a serious point. >> i appreciate that. >> in a sarcastic way. the american public shouldn't know who the stinking fed chairman is. >> i just want to push back a little bit against that, brian, which is that the fed policy has become more and more a matter of public debate, more and more people have opinions on it and perhaps fed policy affects individual americans more than it has since the gypping of the crisis and the fed's move and this is a result of that i don't want to call it instrugs but greater powers it's exercised since the crisis. the extraordinary policies that it has. people have an opinion on it. people are emotional about the effect on the dollar, the effect on potential inflation. >> right. >> so the idea that it's more

political makes sense in that regard. >> i'm going to check maybe on twitter #yellengate going on. everybody is debating the pros and cons. >> of hitchhiking. up next, more on the blackberry bid. >> plus, america's most expensive home just got a whole lot cheaper. weekdays are for rising to the challenge. they're the days to take care of business.

when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

welcome back to "street signs." i'm dominic chu. still watching shares of blackberry because it is up, again up bigger than it was before. still off those session highs. you can see here, we were up about 9% right at -- right again, after these numbers came out about a $4.7 billion takeover offer from fairfax financial and the consortium led by them. overall these shares are still down significantly over the past three to five years. so still a lot of ground to make

up. again, some moves here for blackberry but still, not even -- now trading below the $9 offer price. maybe not a lot of bids expected from other participants. back over to you. >> david on set here to give us more insight on the financing side. to colin gillis who covers blackberry, he has a sell rating and like many others, $7 price target. david is here, co-anchor of "squawk on the street." first colin, i want to get to you. the average price target on blackberry, i'm trying to go through and look and sort of aggregate it out, probably around 5 to 7 bucks, right? >> that's right. >> what do you make of this bid that comes in then at 9 out of left field, one working day after blackberry announces massive job cuts and a multibillion dollar loss? >> i think two important components to this bid you want to factor in. one, this is still a take under bid. look at the average one month price for blackberry $10.32. use a six month price, $12.32. this $9 bid is a take under.

the second part, there's no financing yet. it's a bid. and they still need to go out there and get the money. >> so fairfax could walk away? >> yep. there's a breakup provision in the loi. it's a letter of intent. they could walk away subject to due diligence. at least they have one bid on the table and it would be, you know, it would be an excellent thing for blackberry to be able to go private out of the public eye and to try to reshape itself and see if they have a go forward market as an enterprise focused company. >> do you think have they have viability behind closed doors in secret do you think they have the potential to sort themselves out? >> i mean listen, there's obviously a lot of risk there. if you look at what the company has in terms of its patents and its cash position, this bid from fairfax, you know, is only a very -- it's a modest valuation to their current assets. there's always, you know, the approach they could carve it up once it's in the hands of a

private equity consortium and sell it to whatever company might be interested at that time. >> david faber, you've been reporting, i've seen tweets and heard the stuff you've been talking about about this bid. what do you know about it? do you think -- this is a real bid. fairfax would own this company? they're already the biggest share holder. >> at 10%. a letter of intent as colin said and you alluded to at the beginning of the show, this is tenuous nature to this, but in a sense they're almost acting as a stalking horse for other potential bids if you could get them above $9. they'll get an incentive fee should they succeed in attracting interest above $9 a share. it's 30 cents a share, about $157 million would be paid to fairfax if they find a buyer above $9. now, meanwhile, fairfax is not obligated in any way to follow through on an actual definitive agreement. this is still subject to due diligence and as colin said and we pointed out there is no financing at this point. they are seeking financing from

well established institutions such as bank of america but we don't have financing. your largest shareholder says we're willing to buy you at 9:00, we want an incentive fee if we get people to pay more than that and we don't financing yet -- >> that's the catch. find someone willing to pay more than that. how likely is that, colin? who would do that? >> you know, so here's the problem, mandy, right? you never want to say never. there are a lot of large u.s.-based tech companies that have big piles of offshore cash they could use to finance an acquisition like this. the microsofts and the apples -- >> at 9 bucks a share? >> on the one hand it's only $5 billion and again if you can use your offshore cash, remember microsoft bought skype, based in luxembourg and then nokia in finland. they have big reserves of offshore cash. that being said, right, many people have looked at this and there's been no bite yet. it's also important to remember, fairfax right, prim watson

joined the board, the stock in the mid 16s. this has been a paying trade for him and he's losing money on this as well. >> this is an insurance company, though. i can understand microsoft buying skype and nokia, at least they're engaged in technology. this is the equivalent of finland insurance holdings corporation buying nokia. right? this is not some strategic deal? >> no. it's not as though they're going to be getting any synergies from fairfax owning this. >> unless they gave out a free blackberry with every life insurance policy you sign up for. >> as in those that other private equity firms undergo and the reason we focusing on financing you want to take on a decent amount of leverage to get the deal done. as opposed to many leverage buyouts where the acquired company really has prospects for potential greowth, many would argue, cole lip as well, the prospect of real growth for this company is not in the cards and therefore the approach of any other private equity firms, for example, or private equity like deals would probably be fairly

low in probability. >> colin? >> i mean, in fact -- listen, to david's point, right, if you're an investor and buying blackberry on this news, you have to be aware that the chance that financing does not come through, is just as good as a chance of a -- of a higher bid coming through. don't forget that there is still downside risk here because there is no financing. >> okay. . colin, thank you very much for joining us. david, thank you very much as well for coming all the way up from the stocks exchange and jumping in take a look at what's happening in the markets out there. the dow off its lows, the nasdaq back as well, at one point it looked like the nasdaq was on track to have its worse day of this month so far. let's bring in a guest to see how you can protect yourself against the uncertainty we've been talking about that is going on in washington right now. joining us on the financial planner, great to have you with us, tim. to what degree should your first piece of advice be ignore

washington? >> to a pretty significant degree. if you've put a lot of time and effort into orchestrating a good long-term strategy in your portfolio, inaction may be the wisest decision to make. if we stopped the presses and we've reorganized everything, every single time, the knuckleheads in washington decided to do something different or mess things up we would be in trouble. especially if we did that on the rumor. at the least let's wait to see what they actually do, what actually comes of this political gamesmanship and then you may make a couple small alterations. >> i like this guy. welcome to the program. i've been calling them in d.c. and it's across both parties by the way. interesting stat that "wall street journal" had the market up 10% on average when congress was out of session and down 2% when congress is in session going back a number of years. i thought that was so perfect, but that's not tradeable action, is it? >> well in this sense, wall street loves gridlock actually

in washington. people think oh, they err on the side of being conservative, republican, whatever it may be. we're looking for complete gridlock so they can't mess things up for the rest of us. >> to what degree should we head overseas? i don't want to be dra cone nan about this, but considering the s&p is up 19% so far this year, that's not too bad, right? maybe to hedge against all of this nonsense you should get a little more overseas exposure. >> buy foreign stock stuff every day. i don't want to be anti-american. >> you can't stand america. >> i love my new country. >> buy overseas, emerging markets. she hates the united states and everybody in it. >> oh, yeah, go for america. >> she may have a examined point. let's be clear. think about this for a second. that is something that may naturally be a wise thing to do. this has been almost a surprisingly good up year for the s&p 500. whereas emerging markets have suffered to a great degree. realloy -- reallocating your portfolio is the thing we do in the midst of any uncertainty.

even if you don't think emerging markets are the greatest thing since sliced bread, reallocating to the asset class that has suffered is a great idea. >> by the way -- >> i'm saying every day you're like we should invest overseas into you increased your international, specifically european exposure -- >> it's like american light. >> when they were in the doldrums and said let's go international captain america. >> i said buy europe and i liked europe last year because it's like a diet america europe. america light. >> tim, thank you so much for joining us. good advice. >> knuckle heads, dodos, ding dongs, we'll coin another word tomorrow. head over to cnbc.com for more tax planning strategies with 2014. >> still ahead on "street signs," we revoke mandy's citizenship and the nation's most -- >> i'm not a citizen. so you're not going to let me have a citizenship.

>> the morning muffin madness. brewing over at starbucks. i love having a free checked bag

with my united mileageplus explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪ peter, come take a look at this. [ beeping ] mr. daniels. mr. daniels. look at this. what's this? the numbers. they keep getting bigger and bigger. clicks are off the charts. yeah. ♪ yoshi, it's walter. we're back. yes, sir! ♪

more shipping! more shipping! i need more trees! more trees? i'll get you more trees. hey. take a look at wood pulp. whoa. put everything you've got on wood pulp right now. ♪ yes! [ beeping ] he really loves that thing. [ beeping ] ♪

good news the nation's most expensive home got a whole lot cheaper. owners of the copper beach farm in connecticut slashed the property's listing price by $50 million. this is good for america, right if the 58 acre estate hit the market in may with a record-breaking price tag of $190 million, listed at only $140 million. even with the $50 million price cut this beauty remains the nashs's most expensive home. >> and it's beautiful. >> bargain. >> it's a bargain. fractional jet ownership company flex jet taking its sales pitch on the road today trying to woo the wealthy in the windy city. phil lebeau has more on that story. phil? >> mandy, i hear from a lot of people how do the fractional ownership companies attract new customers. one way of doing it, behind me the fuselage of the here 85 delivered in the middle of next year and flex jet in the process of being sold from bombbadia, private equity firm out taking

this fuselage to cities around the united states and saying to the very elite customers in those cities you know what, this is what it's like to fly in the lear 85. when it goes to delivery next year, they're going to be attracting customers. sales by the way for flex jet up 96% in the first half of this year. and the president of the company says they're seeing a mix of both suite executives as well as young entrepreneurs. >> we are seeing in our own flight and demand an uptick that's 5% above what we even predicted and forecasted. our original forecast for this year, we hadn't planned on hiring as much as we're doing. >> so how much does it cost if you would like to be a five-year owner of a lear 85? you got to put down $1.1 million and then more than $10,000 a month and for that, what do you get? well, you get the right to fly this plane 50 hours per month. so that's just a taste of what the cost is if you wanted to get

into the lear 85 for the next five years. and they're going to have a lot of wealthy people here tonight. guys, back to you. >> phil, thank you very much. pretty cool. >> it's very cool. there's also -- >> what? >> you want to say something some. >> okay. thank you very much, phil. okay. up next, jane wells and the brewing outrage over starbucks' new menu. jane? >> guys, first starbucks telling customers to leave their guns at the door. now no more pumpkin bread. what is going on? i'll tell you after the break. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪

to help you take charge. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

star starbucks brings up outrage over the new baked goods. is outraged the term or are people mildly perturbed. >> reporter: it really is a first world problem here in starbucks. starbucks only has a third of customers eat food, buy food when they come here so they see has a growth market. pumpkin bread, pumpkin cake croissant. they bought labalant and analyst

believe this could add one to two points to sales comps. but people are passionate about their breakfast and opinion is divided. >> i would say this is an improvement from what i remember in the past. >> it's smaller and more expensive. >> it's smaller so i haven't thought about pricing impacting me in terms of bang for the buck but yoe all it's pretty good. >> it takes longer to get ready. >> i found it dry, tasteless and i won't be back. >> reporter: starbucks wants to own the companies which provide the products itself. like kind snacks are being phased out because kind didn't want to be bought out but the breakup has been applicable. >> it's not a part of our business future. i admire howard and we enjoyed our relationship but it was sad to lose them as a partner.

>> reporter: more than anything, people will tell us they'll miss that 390 calorie a slice piece of pumpkin bread. zach's son wanted that for his birthday cake. but we adapt to change, like facebook home or new darin on "bewitched". >> i was listening to the things that are out and thing that are in. first thing that came to my mind is they're trying a little too hard. you want your comfort food. i agree grooe with the outrage. >> reporter: when two-thirds of your customers are not buying food, buying it somewhere else, that's a market they want to capture. they have more variety. they're moving more food into lunch and evening hours. they don't to want lose out to subway. they see that as a market, with

dollars they can grab. >> it's not outrage. everybody is outraged about everything. the new iphone! >> outrage phobia. >> it's outrageous. >> joining us is retail analyst at morning star covering starbucks. i'm sure there's something about the stock you're route raged about as well. tell us where this stock is going and what these menu changes mean. >> i think the menu changes are positive over the long term. might be disruption to some products they had on the menu before but i like what labalaunch has done. they'll come up with new products, varieties and bring back things like pumpkin bread. should help out average unit volumes of u.s. starbucks locations over much longer time. i have it going from 1.2 million

per location to 2.1 million over the next ten years. i think this is a solid move. >> is starbucks in general losing its focus or can they manage the changes? >> there's a lot of balls the company is juggling right now. >> buying booze companies, the tea brand, what's the -- the coffee brand, seattle's best. >> they have seattle's best, a number of thins in place. that's the overarching concern, is do they have the execution and management to put these in place. i think they do. i think they have guys like jeff hansberry on package food side, cliff burrows, they have a deep bench and make sure the core experience of the customer is at the forefront. >> i know to you, brian, coffee versus gold. coffee prices have been nearly lows, very good for starbucks.

cheaper input prices. but coffee futures up today. bang. take that, herb. coming up next, sign of the time for old school retailer.

♪ "first day of my life" by bright eyes ♪ you're not just looking for a house. you're looking for a place for your life to happen. building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up. my expenses are no different. receiptmatch on the business gold rewards card synchronizes your business expenses. just shoot your business card receipts and they're automatically matched up with the charges on your online statement. i'm john kaplan, and i'm a member of a synchronized world. this is what membership is. this is what membership does.

...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. pcentury link provides reliable yit services like multi-layered security solution to keep your information safe & secure. century link. your link with what's next. perhaps it's a sign of the time for old school retailers. iconic macy's building in downtown houston over the weekend. the building originally built in

1947 was demolished to make way for a new office building. >> and i think that's the perfect way to end "street signs," kind of like this hour. thanks for watching the show, everybody. more breaking news on blackberry i'm sure coming up on "closing bell." >> we'll see you then. >> hi, everybody, good afternoon. welcome to the "closing bell." we're coming to you live from the oracle open world conference in san francisco. we have a huge lineup of guests coming your way, including marc hurd, president of oracle, larry ellison, founder and ceo of the company, that's tomorrow. plus we're taking a look at the latest on blackberry. hi, scott. >> nice to see you. i'm scott wapner in today for bill griffeth. he's in tomorrow. today, too weak to taper, the word from a top fed official and