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tv   Street Signs  CNBC  October 18, 2013 2:00pm-3:01pm EDT

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tyler? >> you know, melissa, the s&p at a record high level. let's look at three of the top performers in the s&p 500 including google today. and a couple of others, first solar and chipotle mexican grill. that will do it for "power lunch" for a friday. >> have a great weekend. "street signs" begins right now. ♪ everybody's working for the weekend ♪ >> and happy friday, everybody. we made it. which is quite an achievement when you consider the nail biting in both washington and on wall street this week. let's check off exactly what we have achieved. deal in d.c., check. new all-time highs in no fewer than four stock market indexes check, more stocks at record highs than we can count, check. let's get straight down to bob pisani at the nyse and hope you still have nails left there, bob. so much for the sell on the new scenario. a lot of guys who shorted the
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market on the washington deal are being forced back in because the marketses are not dropping. can you tell us why not? >> yeah. it was a great idea in the beginning of the week the standard thing wait until the deal gets announced and then sell, earnings preannouncements will drop a couple weeks and buy lower. i like the idea and talked about it. sell on the news not happening. a lot of shorts are being forced back in. the main reason people keep putting this out it's not working the fed's, bernanke, yellen, put in full force, keeping rates low for a long time. there's other things going on here, mandy. everything else has worked out. art cashin' calls it the reality point. europe never blew up. china growth didn't collapse. syria never become a crisis. the shutdown a problem but may be modest damage in the long run and maybe we can sell through earnings season. i think there's going to be concerns in the next week or two on the ooerngs commentary. look at the highs we're at today
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not just on the s&p 500, dow transports historic russell 2000 an the mid cap historic highs as well. >> sounds like a lot of those bricks in that wall of worry have been one by one, you know, knocked away. let's take a look at what's happening in the markets and why should investors be bullish. let's ask mark, president of intrepid capital funds and robert, capital management, great to have you with us today. mark, let me start with you. do we continue to move higher, do we consolidate or do we correct from here? >> mandy, i think with the announcement of yellen as the incoming fed chairman, she's the most dovish member of the board, so i think you're going to continue as bob mentioned the bernanke/yellen put. that's number one. number two, i don't think with our republicans and democrats putting the can up on the t and kicking it down three the road
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three months, i don't think the fed can afford to raise rates with our indebtedness levels at this point in my opinion. lastly, you're in kind of a seasonal environment that's positive for equity. familiar with the adage, sell and go away. november, december, january are typically productive months in the ek request i it i market. i think you have to fight the human emotion to chase a higher price. i think it's harder to be prudent in an environment where you've got the equity indexes up 25 to 30% depending on which one you look at. for us, you know, valuation constrained and equity investors it's tough to find things but we still have a few ideas we like. >> we'll get to those three in a second. robert, do you agree with mark, that maybe just by default, the path of least resistance is higher from here? >> yeah. i absolutely agree with everything that mark said. he brought up some really good points. and i would add to that there's just not a lot of other reliable
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alternatives in equities out there right now. i don't see many people rushing through the gates to put their money into fixed income right now. the bond bull market is over and people are just now after a couple years of getting positive statements quarter after quarter are starting to come to the realization that you actually can create wealth in equities. i think that's going to continue and i would also point out that investors now have more opportunities than ever to think globally and if you look at global markets whether it's europe or even some of the emerging markets, they haven't ran up nearly as much as the s&p and i think there's still a lot of value there. there's a lot of ways to play equities and room to go still. >> let's get down into your picks now, gentleman. first of all mark three stock picks here. newfield exploration and western union which is having an incredible run this year. pick which one you would like to start with and why. >> i think the one that's the biggest discount is the way we look at it, newfield's exploration. come up like a lot of stock has in the last month or six weeks,
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but they're selling off assets in malaysia and china. i think they make it a higher price than the street expects and bring down their leverage. asset valuation basis we get a share price in the high 30s low 40s from a current share price below 30. so i think that's a significant discount. so that would be the first pick. but again it's a cheap security. second may be amdox, ticker dox, high 30s, it's worth a little more than that. they bill for cable tv, cell phones. interesting that the two israelis that founded it are still 20 plus percent shareholders. the company has $6 million equity market cap i breev and about a billion in cash. it's a defensive business which we like. trades at eight times enterprise value to its pre-tax cash flow. so, you know, defensible if something goes bump in the night and for some reason janet yellen loses control or our politicians
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can't come to agreement on february 7th. those would be two. western union has done well. we're a happy holder. those are the three for now. >> let me jump over to you, robert. i'm it interested in one of the names you've got here which is linkedin which is up 116% year to date. you have been on saying you like linkedin but wouldn't get in it because it's maybe run too far. did you get in on a dip. >> yeah. this is one of those opportunities where everyone says buy on the dip, but the news is always so scary nobody does it. linkedin is a stock we've liked for a long time. one thing he were concerned about, a big gap in the charts around 215, so when that stock pulled back, courtesy of the -- of congress for us, we jumped into that stock. we're now proud owners in the 220s of linkedin having great day today off the back of google but we think there's a lot of room to run in that stock. >> waiting for the dip and you found it. thank you very much. your other two picks are haynes celestial and freeport. got to leave it there.
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thanks very much for joining us. >> happening now, president obama set to nominate jay johnson as the next homeland security secretary. out to john harwood who is at the white house. what do we know about this guy? >> former top lawyer at the defense department. he is a former partner in a big new york city law firm, past donor to president obama. that's drawn some fire from senate republicans today. but we don't expect a difficult confirmation for jay johnson as the dhs secretary, succeeds janet inapproprianapolitano. he has solid credentials legally and in defense as having served at the pentagon. >> thank you very much, john harwood. joining us live there from washington. coming up, google is the nurrest member of the -- newest member of the thousand dollar club and currently responsible for about half the gains in the s&p today. is the search giant lost its cool kid factor.
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we'll debate that. the video game business may have been left for dead, but we're about to tell you why it is suddenly game on. don't go away. americans take care of business. they always have. they always will. that's why you take charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach.
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welcome back. and i can't say this enough, happy friday, everybody. it certainly is a very happy friday for google. the massive chart behind me the
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one-year chart of goolg hitting $1,000 a share today for the very first time after it came out with its quarterly results last night. take a look at the performance this year. it is up a whopping 44%. tracking higher and higher to right down here at the end cracking $1,000. jo john fortt starts us off with the gang buster earnings which kicked us off to this price. >> google's performance outperformed. that's picking up steam. revenue came in at $14.89 billion, $10.74. google website revenue at $9.4 billion, motorola at $1.2 billion at consensus, paid clicks up 26%. signal that mobile usage is heating up. the way this ties into mobile, google showing signs it's managing to mon tize the transition away from the pc desk top. any time you have nearly 40% of youtube's traffic coming from
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mobile and youtube also driving revenue growth, that's a great thing. brand advertising was up 75% year over year. google network revenue was flat at $3.15 billion. we have motorola at $1.18 billion and operating loss of about a quarter billion dollars. motorola revenue down 56% from a year ago, but they're cutting expenses deep too. google's investing heavily to make sure the future of android doesn't get defined by others. the best news for google growth in the other businesses is providing the cover for motorola to try to do that. so the threats to google going forward while facebook makes a big push to display that could hurt. also a macro danger. ben shacker at mccarey points out google is big enough it will feel any global pullback. for now, this seems to be a story about mobile and international growth and two areas where googles has some unique advantages. mandy. >> john fortt, thank you very
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much. stick around as well. so we can clearly see that stock is still hot but has the company lost its cool factor? joining us is editor sam bitter. what do you think? i saw in the notes you're liking it to at&t? really? >> i think it's think of it maybe goldman sachs with bean bag chairs. it has the decimated any relatively established successful large company. it's going to lose the glamour factor, the outsider status. lost that a while ago. with that goes the luster and cool. it's not something that should be, you know, avoided. just the way big businesses are. >> maybe it's a good thing, takes away some of the risk of working there or risk from the stock, i don't know. >> they might lose out on people who are really sort of silicon valley thrill seekers who want to be involved with something unestablished and risky and volatile and they're going to go elsewhere to a smaller -- >> i don't know. >> john? >> i don't know.
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>> look it's cooler than being a substitute teacher but not going to be the same thing as working for something no one has heard of. >> google is a ways away from being like hp. still a ways away from that. when you consider apple's more than 20 years older than google still holds up pretty well in the cool department, there are ways they could keep it fresh, don't you think? >> right. but i mean, i don't see what there is about google that keeps it from becoming a hp decades down the line. nothing wrong with that. i mean you don't want to be an hp, but something wrong with being a nonexciting successful company. i don't think their shareholders care if they're cool or not. >> what do you think google wants to be? many people have likened it to wanting to be the internet, right? >> that's right. >> or the global destination. what do you think they see themselves as being in the future? >> you me, i don't know what sort of cookie phrase they have or term they have for it, but they want to be the entire
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internet like facebook does. they want you to leave google as infrequently as possible. that starts to subassume everything, be it video, hardware, search, maps, et cetera. >> what do you think is the coolest thing about google? i'm sure you've been in there a number of times. the segways, the scooters, the cool food, i don't know, ping-pong tables. i've never been inside but you hear about it, the stuff of legends. >> yeah. the culture is pretty cool. the food on the campus is pretty cool. probably the coolest thing is just how excited a lot of the geeks are to work there and pick through the data and come up with new ideas. you know, they really do try to keep the culture flat enough that people can work on whatever they want to, even though there are stories about 20% times going away. the smartest people i talk to and the people coming up with entrepreneurial idea a lot are still jazzed about the big
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projects they're trying to tackle there. >> we can't underestimate how important that is, sam, because they can attract the very best people if it is a cool place to work, it can still attract the very best talent and hand pick who they want. >> right. i think that's true, but there are also plenty of talented people content to have a comfortable, well-paying job with great food. it doesn't have to be, you know, this rebel pirate steve jobs thing. >> sounds good to me. >> yeah. who's going to say no to that. >> thank you very much for joining us. >> thank you. >> video game sales surged last month and it's all thanks to one blockbuster game. what is it? let's found out with julia. >> pent up demand for grand theft auto v five years after the last game in the franchise paid off big time turning the struggling video game sales around. total september game sales surged 52% from the year earlier and it really came down to the launch of grand left auto v
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breaking records with a billion dollars in sales in just three days. that game accounted for over half of all video game sales last month. it was the biggest selling september game launch ever and bigger than any other grand theft auto game. console sales did not fair as well in september. hardware sales dropped 13%. no surprise, considering consumers are waiting for sony and microsoft to launch the next generation consoles, ps 4s. thanks to a bundle with grand theft auto v sony's pc 3 whiz was the top consoling. it does bode well for competitor big game launches this fall a sign that people are definitely willing to pay $60 the biggest grand console games. the challenge for the upcoming games is that it's a very crowded fall. with assassins creed 4, black
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flag and electronic battlefield launching november 29th and november 25th is activisions call of duty ghost three big games. all the games this year are making a big push to sell digital add-ons toss because it's a growth area. those physical games and console sales account for half of all consumer spending on gaming right now. >> i get a shiver down my spine when i think of call of duty. i have fights with my 10-year-old, he wants it, of course. >> you will have another big fight, another big fight coming your way. sorry about that. >> great. thanks a lot. you have a boy too. watch out. let's take a look at the nasdaq now. just 100 points away from nasdaq 4,000. look at that, 3908. let's get to sheila dharmarajan. >> hey there, mandy, the nasdaq composite and 100 hitting a fresh 13-year high and just about 100 points away from crossing that all important
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4,000 level. we haven't seen those kind of figures since september 2000. now whenever you're talking about the all-time high for the nasdaq still a little away from that about 20% away from the all-time high in march 2000 but no shortage of momentum when it comes to the tech heavy nasdaq index. some of the winners that have helped the nasdaq 100 end this rally year to date, tesla, up more than 440% year to date. net flicks another winner up over 260%, facebook and the bioteches sell celgen. about 100 points away we are all watching to see if we're going to cross that point. >> less than 100 points now. thank you for the update. still ahead, the vanilla ice indicator. one part of the housing market is following the rapper's lead. herb is back and going to talk about one of his red flag stocks getting clobbered today. has his prediction come true? ♪
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welcome to the earnings part where we dethe six the stories everyone is talking about and help you trade the stories you may have missed. joining me is mary thompson and jackie deangelis. let's kick it off with mcdonald's set to release earnings on monday before the bell. keep in mind this is a stock that has fallen out of favor with investors up 8% this year, underperformer when you compare it with its peers. it is lagging. on the street analysts are also falling out of favor with the stock. goldman sachs recently issuing a report saying it appears mcdonald's is losing customers based on a survey of 2,000 customers out there and also concerns out there, i don't know if you tried mighty wings. >> evidently expensive but not a good product. >> they are a buck a wing which is surprised a little too high for their core customer. so, you know, that is going to be a question because that was a
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big push in the past quarter. want to see if those are going to gain traction. >> they struggle with product mix. trying to alter their menu to provide something a little more high end but also trying to attract that value customer and that is causing some problems as we've seen in the same-store sales. >> wonder if that value customer feels good about the economy right now going out to spend and worries about the debt ceiling as well, have an impact on these companies too. >> hasbro releasing earnings before the bell on monday. >> what you're looking for, sales are supposed to be flat from last year third quarter earnings, expected to be better at 1.30 a share. girls and games the revenue drivers. we're also waiting to see a licensing product, the apg gri bird toys. i didn't know this. you can scan these toys, this is part of the star wars angry bird game that character is unloaded into your game. we'll see how that goes. >> that's interesting. >> just a point of interesting because it's a licensing deal for them. of course we're always looking
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for the christmas forecast from the retailers. >> the hot toy. >> but also mattel said christmas will be christmas but retailers are being cautious. the shutdown may have impact. if anyone spends money on anything during christmas it's their kids. >> what is the hot toy. >> fewer shopping days. >> there's not one, but they did have two in a survey and you're going to challenge me on the name of this. these toys. let's see. one is fur real friend cuddles. >> fur real friend cuddles barks and does all kinds of other things, whatever animal it is. the other one -- i don't have children -- cross fire break bunker battlefield which evidently you fling marbles at the other person, try to break it. >> that's not a hazard. >> toys made by family fun magazine. we'll see if they get buzz. >> we're also watching texas
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instruments pror s report thirdr after the bell. >> this stock had a great run up 30% year to date but they're going to be looking at this quarter closely. analysts are expecting 53 cents a share in earnings for the third quarter, although there are some analyst looking at the higher side of that range expecting a higher number. some estimates in terms of revenue are for $3.2 billion. that's a decrease of 5% year over year. meantime a lot is going to depend on the consumer in terms of tx's products as well, some saying september was weak because of these concerns about the debt ceilingp. because of the economy in general. we'll be watching that. baird equity research they're saying texas appears to be gaining share in the analog category helped by silicon valley business. that's going to help them offset ne industry wide issues they're seeing in the integrated circuits. google a good quarter. intel had a difficult quarter.
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outlook important too. >> the earnings squad for today. tweet us #earningssquad. back on monday and squawk on the street with more updates and insights. mandy, to you. >> street talk is on deck. you will not believe who is filling in with me today. the stock surge fueled by america's burrito obsession. later on fancy fixer uppers. while multimillion-dollar homes are the new target for the house slippers out there. don't go away. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades
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it is a friday edition of street talk and i've been teasing you will not believe who my special guest is going to be. all kinds of suggestions came in on twitter. elon musk, wilbert ross, blake shelton, go figure, also kermit the frog which i said was probably the closest. it is mr. steve liesman. >> what a disappointment it must be be to all those people out there, the huge buildup. >> okay. >> this is an anchor job i'm suited for to say one word, first up. >> yes. that was two words. >> am ma gozon.com.
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>> upgraded to a buy. steve. >> next up, cf industries. >> you're good at this. okay. >> is that all it takes? >> that's all it takes. >> easy to please. >> there you go. >> swap jobs one day. more than doubled their core dividend raised the payout from 40 cents a share to 1 buck. other fertilizers producers could see some interest today because norwegian furtherlizer producer would consider making a major investment in the united states so therefore we need to watch this sector. >> truly amazing how much you know about these stocks. you boggle the mind. >> baker hughs on good earnings news. >> oil field services company with third quarter above estimates. its revenue came in better than expected. the company is citing increased international business growth. that's a good thing that baker
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hughes is talking about. >> roll the dice. las vegas sands. >> las vegas sands, casinop operator coming out with earnings above estimates as well. of 82 cents per share for the third quarter, revenue, quarterly dividend boosted to 50 cents per share up from the previously expected 35 cents. results helped by where other mccow. always mccow. big gamblers. >> i don't want to say this one, when i do i'm done. the last one. >> i'm sure we'll have you back on again. >> yeah. brian is off a couple days next week. >> align technology. >> what do i know? our under the radar pick and they're the maker of the invis line braces. the stock is soaring. >> that's what they do. >> 25% to the upside. good third-quarter profits, 43 cents per share. >> bad teeth. >> current quarter forecast also above consensus and shipments of those braces, a lot of people wear them, big thing for adults and kids.
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>> smile for me. >> i don't have them on. >> i never had braces. no. not so invisible as they don't exist. >> two feet from you now. thank goodness for bad teeth. thank you so much. >> is that it? i'm done. >> you're done. >> thank you. >> it was fun. thank you. come on again some time. take a look at shares of morgan stanley. more than 2% higher after the company's estimates beat the streets. the move on fairly disappointing results from goldman sachs. what is morgan stanley doing that goldman sachs is not. they're up year to date. start talking numbers. on the technical side andy bush, publisher of the bush update and on the fundamental side mark lippenfeld, chief income strategist at the oxed for club. why were morgan stanley results so different from goldman's? >> well, goldman sachs' earnings
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on the back of lower costs. morgan stanley did lower their expenses but grew their business. there's a lot to like there. they also had much more stable company now than they used to be. lowered their risk. one of the things i like about the company and i don't hear too many people talking about this right now, kind of a big picture idea, that's james gorman the ceo is focused on generating a meaningful return for shareholders and this is illustrated in a "wall street journal" article. he told the journal last month that when someone gives the company capital, and management does not generate a return on that capital but pays themselves like they do, then very often that person takes the capital back and no business left. having a ceo that's that focused on generating return for shareholders, when that happens usually very good things happen for the stock. >> and he's a melvin boy, same hometown as me. andy, do you like morgan stanley shares? >> yeah. they're kind of hard to buy at these levels. you're about 10% above ten day
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moving average. i have a chart that has the upper line is the ten day moving average, the lower line the 200 day moving average. clearly the stock is well above both. that's generally very bullish sign. i don't like to buy it when it's this high. i would rather wait for it to, you know, if i'm buying something i would like to buy it above the 200 day. instead of being 10% above the ten day moving average. i'm a little cautious on this thing. it's got some great things going for it. the equity numbers that drove the revenue is good but morgan stanley still is paying out a lot more than its peers to its employees as far as expense ratio at about 58%. jpmorgan at 41% and goldman sachs at 31%. so they can do some further work on the expense to revenue ratios. >> that's a good point actually. >> they are bringing that down,
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mandy. that number has come down from i believe it was 68% to now in the 50s. moving in the right direction and goreman seems focused. wanted to ask you about the charts because when i look at the charts and granted, you know, you're the technician here but when i look at the chart i see a chart in a perfect uptrend. how big of a pullback would you be looking at? looking at 10% before you buy it? to me i would just buy and hold it for a long time here. >> yeah. that's the difference between being an investor and trader. looking to trade this, you know, the trader in me wants to sell it maybe on the next little peak we get above 30 and then look to buy it when it get back to the ten-day moving average. the investor in me likes this overall as you do but that's because we're above the 200 day moving average. i'm always as far as long-term holding as an investor it's a different cagame. trading the not so much. my gut is like i like the stock but i don't like it at these
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levels. >> good differentiation. thank you for joining us on morgan stanley. coming up next, check out the on-line edition of talking numbers and you would have seen today's disaster de jour coming your way if you had listened to herb greenberg. he's going to be joining us doing a little bit of a victory lap and why mansion makeovers are the hottest trend in housing. later on america's burrito boom, all ahead when street signs returns and steve liesman you left your phone here, come back and get it. see you soon. i am today by luck. i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen.
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avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. while a body in motion tends to stay in motion. staying active can ease arthritis symptoms. but if you have arthritis, this can be difficult. prescription celebrex can help relieve arthritis pain and improve daily physical function so moving is easier. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain. and it's not a narcotic. you and your doctor should balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, like celebrex, increase the chance of serious skin or allergic reactions, or stomach and intestine problems, such as bleeding and ulcers,
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got to show you what's going on. if you're listening on the radio it's up by 13% and above $1,000 a share for the first time ever. this is its best day in five years, folks, up about 44% year to date. if you've been an investor in google you're a pretty lucky person. drinks on you tonight. home foreclosures are falling and pushing house flippers into a new market. the super high-end. diana olick explains. dine fa? >> mandy, house flipping which is defined loosely as buying and selling the same home within six
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months, is actually down overall nationwide. but on the high end, it's up 34% from a year ago according to realty trac. why? because on the high end you're seeing high demand and high returns and that's why the million dollar flip is the latest new play. >> we are taking these homes on nice lots where we can add value to the lot by adding square footage and take them down to the retaining walls or studs and build back up with an architectural designed home that flows. >> nicolas' company american coastal properties specializes in buy, remodeling and flipping multimillion-dollar southern california homes. rather than go through the zoning and tax issues involved in a total tear down, he and his team seek out homes in sought-after locations that might need some work. a $50 million infusion from equity firm colony capital this month will help him grow his now
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boutique business. >> we're pioneering this higher end space. there aren't as many other investors in the space and when they do come in the space, it's going to also allow the pricing to run a little bit. we're optimistic about the next three to four years in terms of where the space is going. >> now more than three quarters of all high-end flips were in the new york metro area and four california markets, l.a., san francisco, san diego, and san jose. flips on homes priced between $2 million and $5 million jumped 350% from a year ago. now you're wondering about returns. the average flip nationwide will get you about $55,000 in profit. when you go on the high end, that goes up to about $240,000. but here in the d.c. area, where land is scarce, they win, your profit from flipping a high end home here, can be over a quarter of a million dollars. plenty more on-line realty trac.cnbc.com. >> thank you very much.
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to robert frank sitting with me on the set. you've been scoping out a totally different kind of mansion. tell us about it. >> we're going to show you about a town that used to be called the anti-hamptons but prices there are feeling a little more hampton-ish. let's take a look. >> reporter: more of the wealthy suddenly have their eyes on watch hill. a ten bedroom mansion on the ocean just sold for around $10 million. that follows another $9 million plus sale in the third quarter and a string of deals that turned this quiet beach town near new port into a real estate hot spot. the selling point for this house, 160 feet of oceanfront. it's on three acres with grand lawns that sweep down to a sandy beach. the house is 7,000 square feet on four levels with grand porches to take in the views. it was built in 1903 and restored about 25 years ago and will probably get a face lift from its new owner kevin wendell, a tv and entertainment executive.
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one of his new neighbors pop star taylor swift who bought a house for $17 million this year. her purchase has brought more attention to watch hill along with buyers moving from the hamptons. while many residents preferred to stay off the new money radar, their homes are rising in value. lori, the agent with lila dellman who listed the home say people complain until they want to sell their house. >> that is absolutely beautiful. got the swift factor as well. >> and so interesting how one person can change a profile of a community. before, nobody had heard of watch hill and now everybody is -- she generated so much media attention. >> must be examples where one person has changed a community for the worse as well, right? >> maybe. but in this case the locals say it is for the worse because they liked their quiet before and now a lot of media in town. the prices are all happy. >> don't complain. don't complain. come on. let's send it over to jackie deangelis for a quick market flash. >> hey, mandy. nrg energy to acquire edison
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emission in a $2.6 billion deal. the price will consist of 12.7 million shares with balance to be paid in cash an hand. nrg assuming some of the debt, approximately $1.5 billion worth. the stock up today spiking on this news up 6.5% now mandy. >> thank you very much for that on nrg. coming up next, america's burrito boom is propelling chipotle to all-time highs today. one analyst says hold the guac on this stock and going to make this case next. herb i told you so greenberg warning about this stock and today it is tanking. his take on isrg intuitive surgical when "street signs" returns. [ man ] on december 17, 1903,
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the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪
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a big disaster dejour. intuitive surgical down over 5% after it reported a steep drop in sales of the surgical robots. herb blew the whistle on the problem on the robots and joins us now. we wouldn't want to be doing a victory lap when the stock is down but you saw this coming? >> well, we did our documentary
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at cnbc.com, the devin chi debate focusing on safety issues, legal issues that have been raised by some in the medal community, former patients and what you have now is a company that for two quarters in a row, this was a fast-growing company, a company that three quarters ago was growing at 23%, went the prior quarter just to
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when you look at how fast it grew. trying to say, hold on. this is an expensive product. we don't want to be liable for things. is there going to be tightening up, tightening going on in the medical community. i want to point something else out. they put a target on the stock, downgraded the stock. he's been a big bear in the stock. he went from $2.25 and one put
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it at 510. this stock can go either way. the reality continues to go in for another quarter, boom, you could have this stock go lower. >> bulls and bears could potentially be right. it could go both ways. >> in this market, yes. >> thank you very much, herb greenberg. let's go to sunshine. chipotle is up, but our next guest says this is not the time to buy. bob derri, good to have you back on the show. you're not chasing this one. how much would it have to drop for to you get in? >> i guess what i would say, mandy, this is probably one of the more humbling companies to cover. just simply the volatility. i've had more ups and downs with chipotle than any roller coaster i've ridden. we would like to see the stock down 8% to 10% here. to be fair, i literally don't know we'll see that.
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i think the visibility of the growth for this company going forward is considerably better than what many of us expected previously. >> what is it that's propelling it so much higher? what is it fundamentally in this particular company, i know it's food, whatever it provides for people that make people like it so much. >> a couple things. one, sales and traffic trend, especially traffic is a key barometer most analysts look for 37 they had terrific traffic this quarter. especially the visibility the company sent about towards the middle of 2014, they believe they can probably take some pricing, which we agree with. ultimately could push store margin levels to high levels. i think the visibility and growth for this company is what has this stock cooking at this point. if you're going to buy something today, if not cmg, what as a competitor? >> i've long been a fan of
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panera bread. they've had their own ups and downs. so far in this earnings season, seven out of seven restaurant companies have missed earnings now. i have no reason to believe that companies in the coming week, like panera, will be able to buck that trend. however, i think it's the road ahead. if you focus on what i believe is the potential for panera as they move into this coming year, i think you want to own that stock. >> this is a stock for 2014. a price target of 20.12. thanks much. >> let's get to jackie. >> watching shares of ebay. john donahoe backtracking saying he didn't mean to sound so negative on the outlook for the holiday season. he blamed his tone in part on illness, saying he and the cfo had colds. even still, he highlighted they likely aren't seeing anything different than some of the
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others out there. they were just the first to report it. trading higher, up 2%. billionaire toys, skinny skies and sleet texting, three most outrageous stories coming up next. ♪
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i love this song. it's so addictive. our take on three outrageous headlines. let's bring in brian, editor of p p popgoestheweek.com. >> elon musk buying car shown in james bond movie. >> you can tell he's single because you spends $900,000 on a car and it doesn't work. in 2010 he was getting divorced and said he didn't have any money. >> you can always find money for a james bond car. >> you can? >> this proves two important theories. every billionaire has a james bond fantasy. larry ellison buying his own volcanic island. the second theory is the submarine car is much cooler
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than the dv-5. this car has gotten more attention than any james bond car ever. even though it can't even roll on the street. >> who is your favorite bond, is the more important question? >> sean connery. >> you have to go with sean. are you a pierce guy? >> i'm a pierce brosnan gal. our next story, flying the skinny sky. delta is ditching the bulky seats, i call the comfy seat, for the slim line seats. we're getting bigger as a nation, and this is outrageous. >> they are shortening the sides -- or making the magazine rack smaller. as long as they don't tauch my sky mall magazine. it has a cure of herpes and statues. >> we're moving to standing room only on airplanes. ryan air tried it.
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it was going to be $1.50. why not? >> $1.50, i could do that. >> strap yourself in -- >> unless you're going new york to australia. that's a long stand. >> turbulence becomes a game of twister. how do you stand on a plane? >> and they're going to make the aisles small as well. i can't get down those aisles with a bag and a child. >> i was on a plane the other day and i was practically spooning with the lady with me. we smoked a cigarette after the flight. >> which could be a plus for some people. >> exactly. make the most of it. >> our final story is texting while snoozing. sleep texting is on the rise. when i saw this story i was like, that's just people who drunk texted and the next morning they said, i was just sleep texting. what do you make of that? >> people are looking for an excuse for what you did. you don't do or say anything you want to do. you have to take lemons and lemonade. after wrong texting a woman i'm dating an 82-year-old woman named yeta.
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it's purely sexual. but you have to be careful. they didn't have this problem with pagers. >> and they have therapists looking into this. here's a solution, turn off your phone. >> thank you for joining us. thank you for watching "street sign." brian will join us from a surprise location, cashing in on the world's energy leader. it's going to be great. see you then. >> the dow jones industrial up 37 point -- >> positive opening for the stock market today, folks. >> welcome to a very special edition of the "closing bell." we're, of course, celebrating maria bartiromo's 20th anniversary on cnbc. we'll have many more highlights like the one you just saw. all throughout today's show. they're fun. you certainly would not want to miss them. the funny thing is, maria, as we're thinking back to the '90s, a

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