tv Street Signs CNBC March 18, 2014 2:00pm-3:01pm EDT
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growth. so it's going to be a very interesting season, i think. thank you, bob. >> you'll have a tough time -- i see right now numbers are down but i still see at the end of the quarter 6% to 7% earnings growth, 2% to 3% revenue growth. >> that will do it for a tuesday "power lunch." we'll see you back tomorrow. janet yellen's first press conference and meeting. >> that's right. "street signs" begins right now. we'll have it all covered for you. there are three big things, three, steve, you must keep on your money radar right now. we break down the list ahead. hi, everybody. that list has microsoft just made one of the most telling and important shifts of its corporate life. a huge call on tesla. and what's going on with coffee prices with dangerous grounds, todd carmichael. >> hello, everybody. so this week has seen somewhat of a recovery after the stock market's biggest weekly drop in almost two months last week.
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it has been the best two-day gain for the dow and the s&p since february the 6th and the 7th. indeed, the s&p's up about 1.5% so far this week. but, before you get all kiexcit, since we're approaching the end of the quarter this is the weakest quarter for all of the major averages since q 4 of 2012. >> be optimistic for once, will you? >> i'll try. >> nice run for stocks lately as manned ydy laid out. here are the three big things you must put on your investing radar. number one, the putin factor. russia adding crimea to its map. fed chair yellen kicking off a conference meeting today. and the third, which is relatively new, inflation. food prices posting their biggest jump in nearly 2 1/2 years. so let's kick it off with a very simple question. which of those three things is the most important to your money? let's bring in matt malley.
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you probably say a little bit of all of the above. you wouldn't say it like that, but i'm going to force you to pick one. of those three, which one is the biggest? >> i think the biggest is going to be at least in the intermediate term is going to be russia. and it actually doesn't have to do with whether they start shooting bullets at each other or if we do, you know, start to tighten the screws a little more. i think it's going to have a lot more to do with what happens when capital flows in and out of russia. they've already pulled back quite a bit. if that continues, that's going to be a problem for the european banks. >> don't you think so far the market has been extraordinarily calm about what russia's been doing? >> exactly, you have two things on the positive side over the short term. we have number one is that not so much what putin is doing but what the west isn't doing. obama's -- the sanctions have been very -- i mean, almost comical. and the -- support at all on
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that end. you combine that with what everybody believes is the yellen put. i think a lot has to do with chairman yellen speaking tomorrow. last two times she spoke, the market saw a big rally. >> the yellen put is alive and well. would you agree with that? >> i think for the foreseeable future, yeah. for this year, policy's pretty well set. and our survey shows 100%, 98% of folks believe the taper is on and that the interest rate hikes are not until 2015. >> even if we continue to see what's happening now, which is food prices, posting massive jumps. and i know you're going to tell me the government doesn't factor in things like food, gas, oxygen, gravity. in any of its forecasts. >> is there inflation in gravity? >> you get my point. most of the government does factor in inflation. but the government and everybody else who watches inflation would argue food is a small part of
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the basket. you worry about the whole price basket, not just one part of it, especially a small part, which is food. >> is there a big concern out there we haven't mentioned, at least so far in this program, and that is what is going on in china and whether or not they've got the ability to defuse that massive debt bomb? >> i think this debt bomb and this whole issue of leverage and what happens -- again, i go back a little bit to the european banks. they have exposure to russia. but the big exposure to emerging markets overall. we have argentinargentina, turk china. with the failure last week, more seems to be coming. if this causes a tightening of credit at all, we don't need a repeat of 2008 to have it have an impact on markets. the european banks are leveraged just as much as our banks were back in 2007. so this is a big -- this could be a big problem. a tighten a little bit of the credit markets. something a lot of people aren't focusing on now.
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no matter how much the fed pump, the net liquidity would be negative if we have a credit issue. >> we need to keep our eyes on the european banks with regards to the real issue, as they say, in russia. thanks, matt malley. okay, what could be concern number two though? the fed is holding the two-day policy meeting, as we mentioned, all leading up to janet yellen's very first news conference as fed chair. we're going to carry it live right here on "street signs." steve liesman is back with the results from the cnbc fed survey. what are the main findings? >> let me just add a lot of guys wrote in to the survey and echoed the concerns. they're looking for better growth this year. also want to show you what they're looking for in terps of the fed. they've upped what they think will be the fed rate in 2015. they used to be 0.7. now they're .83. a couple of them built in. most of them think it comes in the second half -- i'm association in the first half of
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2015. if you look at the next chart, you see 40%. some question by the way in the last half hour if the chart was accurate. it is accurate. that adds up to 100. >> hold on, .83 is an impossible number for the fed. it's an average. so half of those folks have 1% or higher. >> yes, most of them, though, are in this camp of 0 to 1 is where most of them are, with a few of them outliers. 40% in the second half of '15 are looking for the first rate hike. 23% in the first half. and then on down the line where people are further out. that's when it happens. now, i just want to show you, we had an open-ended question i thought we'd have a little fun with. we're going to call this the dear janet segment. we asked people to say what do you think janet yellen should change about the federal reserve. mark standee wrote in, he played a little bit of zero janet. eliminate the 6.5% unemployment threshold. a lot of others wrote that as well. dan says, shorten the statement. allen writes in, too many speeches by too many fed members
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is confusing. joe writes in, dear janet, hold a press conference after every fomc meeting. diane says, emphasize the role of inflation being too low. john roberts says the opposite, be more willing to tighten when appropriate. finally, mike writes in, says, stop providing guidance and end qe. some people said don't change a thing, it's working okay. >> which do you like? >> eliminating the unemployment threshold. i don't think that has served the fed very well. i would love a press conference at every meeting. i think that's, by the way, a possibility. the other stuff gets in this qualitatively judging the fed. i don't know about that. i don't agree with stopping providing guidance. i don't thing he's right about that. >> why do you like 6.5%? if enough people drop out of the workforce, we can hit 6.5% without any market improvement in the economy? >> i think dropping the 6.5% is not serving them well. it's not explaining the slack in
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the economy. i think they need to remain hin easing long behind that 6.5%. 91 million people. write that down. >> 91 million. >> are not in the labor force. they're retired or students or some of those could come back in. i think the argument there's a lot more slack and we're very far from a wage-driven inflation problem is very important. >> steve liesman. thank you very much for joining us. double duty today, steve. >> thanks, my pleasure. >> tomorrow, because we've got a huge show on tap tomorrow. a new fed generation kicks off. it kicks off right here, 2:00 eastern time. the fed's policy statement, which dan greenhouse hopes they shorten, followed by yellen's first -- it's a lot -- first news conference as fed chair. will she have a surprise for the markets? we don't know. catch "street signs" tomorrow. consumer prices remaining relatively flat in february. in the same report, the government also said food prices were the biggest monthly increase in nearly 2 1/2 year.
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so anyone and everyone doing the grocery shopping would know that. so what gives? jane wells has been doing some digging for us. this has got a lot of us scratching our heads. a lot of us feel like is it an accurate report. >> because we shop for groceries every week. i buy a car maybe once every five years. food is important to me. the government says food prices had their biggest month to month jump in february in almost 2 1/2 years. about a half a percentage point. a lot of that is spill the milk. this cost me $5.50. though i could have bought the private label milk with a club card for $3.50. milk prices are up 35% in three months. they pulled back a little today after hitting an all-time high. which is about $2.10 wholesale. see, they're out. inthought they pulled back. different chart. prices up 4% in one month. up 4% in one month. holy cow, what's going on? well, we have fewer cows than we
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used to. we thinned the nation's herd. at the same time, export demand is up. that is a market dairymen in particular have rushed into as americans started drinking less milk. ihs global insight says consumer prices are expected to make further increases in the second half of the year as the impacts of drought and bad weather make a dent on american households' budgets. the cost of hay feed is going up. morgan stanley says stocks with the most exposure to milk commodity prices are dean foods, which has 45% exposure, far ahead of hershey and craft. all up today. as i've said before, american restaurant association claimed that in past california droughts, milk production here actually went up. so maybe that will happen again. there is one definite silver lining, bacon prices dropped a smidge in february, though
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they're still up 13% from a year ago. >> the story is? >> eat more bacon. you can never go wrong. >> never. >> thank you so much, jane wells. >> all right. still ahead, a monster day for microsoft. the big headline that is making this somewhat boring tech name sexy again. and you asked for it so here's today's mystery chart. hint, think, and this is a little bit weird, lapsing suchong. >> the best get out of dodge stock plays. if you're looking to escape this endless winter, why he's pumping the brakes on tesla. he's also found pretty much the scariest headline that he and we have seen in a very long time. [ male announcer ] this is joe woods' first day of work.
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microsoft hitting a nearly 14-year high on a new report the company may release a version of its office software suite for apple's ipad. joining us is ina freed, as well as daniel, microsoft analyst at fbr. dan, are you surprised by the run that microsoft has had in the last couple years? >> look, i think it speaks to some of the optimism for investors out there, that they're going to finally recognize the growth outside the pc environment. it's been uphill battle but really now with the new ceo it's a blank sheet of paper and definitely getting off to a good start with reports that -- >> with all due respect,
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recognizing something and doing it are -- i recognize i need to drop some weight. i haven't done it yet. just because microsoft is recognizing this, does that mean they're going to actually take advantage of those opportunities? >> well, that's the issue. i mean, it's called walking the walk and talking the talk. are they going to actually execute on it? it seems it's weighed out there in terms of the strategy. the problem again and again with microsoft, it's been a one step forward, two step back situation. now with the new ceo, there's optimism. the jury's still out in terms of are they going to perform on this, will it return growth to the microsoft name. >> and office in ipad has been in development for years. i would say it's long overdue. does it move the needle at all? >> i think it's definitely fair to say this would have been a much bigger deal several years ago when microsoft indeed did develop office for ios, and would develop it and then put it on hold. this has happened several times
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during the history. not because it's technologically difficult but microsoft was weighing the pros and cons from a business standpoint. would it help office more than it hurt windows? that's been the calculus for a while now. >> what do you think about the significant, the fact that microsoft is now, i guess, actively supporting rivals? >> well, they've been doing that for a while. obviously, this would be the biggest step yet. don't forget, microsoft's history, if you go all the way back, it was making software not just for windows and even before windows but for apple macintosh. it's not totally out of character. the question is, does it really help the company embrace this new era? how do they become relevant, become more relevant in a mobile world in a cloud world, and that's what they're going to talk about next week. it really remains to be seen if they can regain that possession of prominence where people depend on their software, rather than just some people run it. >> do you think this move is while maybe small in its own
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right and as mandy said in the works, is it a sea change in thinking under nadella? is this going to be a different microsoft? >> that's why the stock's up. i think it speaks -- this is the first little sign that he's not going to be the standard redman insider, 55 miles right lane. i think it shows he's willing to do a mea culpa. they're willing to look in the mirror and realize they need to change in order to bring growth, especially in mobile and tablets, and to this point, surface has been a hail mary and has not worked. >> would you say that so far, dan, microsoft's mobile strategy has had lackluster success? do you think this is an area that they can succeed in still? >> yeah, i mean, lackluster would almost be a compliment. >> i'm being diplomatic. >> diplomatic. the nokia acquisition, look, they're doubling down. that's going to be the
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opportunity. now the big question for investors is nadella up for the challenge. what are we going to see in the developer conference in a few weeks? you're seeing the optimism in the stock -- >> sorry to interrupt. everyone keeps saying that. how are they going to turn around the mobile business? their market share is just above mine in the mobile business. do they have to turn around the mobile business or just, i hate to say it, accept defeat? >> i think to some extent, i mean, it is going to be a mt. everest-like challenge to see growth on the mobile side. they're going to give it their all. but i think, you know, a year, year and a half from now, i think that's where they, you know, could ultimately admit defeat. at least with that nokia, they have 7 billion reasons to make sure this thing at least tries to work. and that's going to be nadulla's biggest challenge, not just the customers but for investors, and that's where he really faces an uphill challenge.
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>> today, microsoft stock is the biggest gainer there on the dow but in terms of your price tag, you've got 40 bucks, in which case it's less than 50%. thank you so much for your comments. game stop shares under pressure today. they were the biggest losers on the s&p. after walmart announced plans to let shoppers trade in used video games for walmart gift cards. the games will then be refurbished and made available to consumers. game stop would lose out on this, right. it is down, as you can see there, about 3% on the session. still ahead, the malaysian mystery. it has been 11 days since the jet went missing and there are still just so much unanswered questions. we're going to bring you the very latest on the search ahead. >> last call to guess today's mystery chart. our first hint was an obscure lapsing suchong. your second hint, think boston subway and dallas. we're making them hard.
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ford, general electric, hertz. >> we gave some weird hints this time. what are they? >> tea! that's what they have in common. >> one's a kind of tea. the other one is known as the tea. >> yeah, at&t ticker is of course symbol t and it is up more than 3% this month alone, by the way, it's also got -- is it one of highest dividend payers on the dow? >> that's why we picked it, because it's symbolic maybe of people's nervousness, they're running to the dividend payers. at least at&t verizon is also there in terms of performance and dividend. from one mystery to another. let's get to phil lebeau on the missing jet. we've heard every day more speculation. there seems to be a theory gaining some ground, who knows if it's true or not, but it's out there in the mainstream media, that there was some kind of a fire and that the first rules of airline, aviate, navigate and then communicate, are why we did not hear from the
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plane and they had some kind of a cockpit fire. >> i've heard that theory. i can give you about five other theories out there too. this is a cottage industry that's out there. for every theory that is out there, can poke ten holes in it. experts can poke ten holes in it. i can come up with another theory and you can poke ten holes in that too. i've heard this fire theory. on the surface, there are a lot of parts of it that make sense. but then as you try to extrapolate out from there about all the possibilities, a lot of it doesn't hold up. so this is where we are in this investigation. because you have such a wide area that is being searched, particularly to the south, when you go down into the southern part of the indian ocean. i don't think people can fully appreciate just how huge this area is where they're currently doing some flights and there are also many ships down there. >> that's the thing, in terms of the time frame.
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we're all flabbergasted it's been 11 days. for the family members of those affected, it must seem like an eternity. i've heard this could take months or never. possible we will never find wreckage. >> hard to comprehend where it seems like we're constantly connected and with so much technology from satellites to gps to everything else, that most times, if you want to stay in communication with someone or some mode of mass transportation, it's going to happen. and that's what is so baffling about there. which is why you have all these theories. some of them are downright goofy and silly. unfortunately, we're in that mode here, where you're going to get a lot of conjecture because there are simply no facts. >> do you feel, phil, there's been sort of a misreading of the malaysian prime minister's terminology that the flight was, quote, deliberately diverted? many people have taken, okay, there was sabotage, something
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nefarious. deliberately diverted could also mean one or both of the pilots changed course on their own. >> i don't think people misinterpreted his comments. if anything, the malaysian authorities, when you look at their press conference, and i've watched a number of them, people are asking more pointed questions. well, we really can't answer that for you. as a result, people have to fill in the blanks. if they do not thing that sabotage was involved, they could come out and say. but they have said that is one of four possibilities out there. so i understand what you're saying. on the other hand, without some definitive answers here, people are going to fill in the vacuum. >> phil lebeau, thank you very much. all right, up next, brace yourself for a morning jolt. dangerous grounds host says there's a coffee crisis coming. >> and the scariest bubbliest thing he has herd ard in' long time. joining us when "street signs" returns. >> the cnbc real-time exchange
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it is street talk time. barclays initiating coverage on the luxury retailers. names like g-3. it's got all kinds of brands under its stable like calvin klein and various things. >> this is a huge call by barclays. when i say huge call, i mean a big call. 141-page report. barclay's going overweight on kate spade, g-3, ralph lauren. they're in the green today. they went underweight, fancy wall street term for a sell on michael kors. >> let's look at what's going on with cisco. a downgrade. clearly not affecting the stock. here's the thing. i don't like normally putting these kind of calls in. inthought it would be
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interesting to note, price target is 23. the price target even with the downgrade is still above where the stock is now but what they say is demand trend, head winds, lack of major catalyst could keep shares range bound. they do see a support range in the low 20s. so they say it may not go up but it's unlikely to go down further as well. >> barclays is doing an upgrade to hewlett-packard. >> they see three positive catalysts in the near future. by the way, at the expense, they think, of ibm and lonovo. hewlett-packard outpacing the dow again, it's up 9% this year. >> let's move on to shutter fly getting a downgrade from underperform to outperform. >> their ticker's fsly. flip the two middle letters, make it selfie.
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all right. target. that target price is 17% below the current price. i don't need to tell you what that means. basically the price target way below. you draw your own conclusions. >> why don't we finish up with flowers foods getting an upgrade. >> thinks the georgia-based bakery is in bloom. valuation target increased to 24 bucks which is $2 and pennies above where the current price is now. all right. let's talk numbers. talk more about the -- what did you call it? >> get the heck out of town trade. >> that's not what you said but you made it family friendly. you didn't say "heck" this morning. price line, expedia, they've had good years but, you know what, neither compared to trip adviser, up 28% year to date. here's the question, has the theoretical train already left the station on this trade. chad molden covers trip adviser
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for morning star. stock's up 28% this year. yeah, everybody wants to go where it's warm. doesn't mean they're going to use trip adviser. what's your take on this stock? >> we like the near-term fundamentals for the company. we think that click-based advertising growth is likely to accelerate from 18% last year to 30% this year. they have durable competitive advantage through a strong network effect. so we like all the fundamentals for the companies but the problem is we do think with the run-up the stock is overvalued now. it's churned out 50 times this year's earnings. we think there's better values in the sector. you can by priceline.com for 25 times. we think that's the stock to buy in the sector now. >> if you prefer price line over trip adviser, i know that deutsche banc actually upgraded trip adviser to a buy yesterday. what do the charts say? >> i'm actually with chad on this one. look, we know the story here. it's been a long cold winter for
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everyone. so you go online, you stare at the pretty pictures, potentially you book a trip that you can't afford. in terms of the stock chart, this is a name you do not want to chase here. the stock's been a fantastic performer. up over 100% over the last year. well defined trading range within the context of the share price doubling. we get a decisive breakout after testing that 200-day moving average. we're up over 50% since february 3rd. that suggests to me we are in the exhaustive blow-off top or the final stage of this move. sets the stage potentially for a swift decline here. a fine company, a fine story but not a fine stock chart. wait for a pull back ton that 200 day or even the prior resistaresis resistance around the $100 level. >> i tell you what else is part of the get the heck out of town trade, remember last week we
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talked about winning. the hotel stocks. guys, thank you very much for joining us on trip adviser. >> trip adviser's flight has been canceled. be sure to check out the online edition of talking numbers part of our partnership with yahoo! finance. up next, he's got something he says is the scariest thing he has read in years. >> and then later on, he goes to the world's most dangerous places in search of the world's best coffee. with coffee prices up 66% this year, this reality star says the situation is getting nightmarish. plus, of course, we're also going to get a taste test of the world's best coffee so it makes it all worth it.
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>> also instant analysis for earnings from two techs, oracle and adobe reporting after the bell. >> two hours of cable magic at the top of the hour on "closing bell." join us, guys. >> thanks for the offer. okay, with the prep for the ipo on the nyc that could raise up to $15 billion, we thought we would take a look at how chinese stocks have done here over the past year. >> some good, some bad. so here with your best. you have china cash, vip shop is i guess how you pronounce it. now, about half of u.s. listed china adrs are down year to date. >> when you think about how much of a dud the shanghai market has been over the past few years, there's a lot of volatility there. i think we're going to see a lot more chinese companies trying to rush over here and ipo.
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there's ali baba. i'm sure there will be many more. it's a matter of working out which ones are investment worthy and which ones are not. >> i'm having dinner with some chinese executives tonight. >> ask them about it. >> i'm going to temper what i say in case they're watching. you wonder if the best in the best in china are going to come here because of what you talked about in shanghai, you can't short stocks. there's some questions about the liquidity sometimes in the shanghai market. you wonder if just by listing here, they're trying to say, hey, we're a global company. >> why don't you ask those executives, do you wable. the wablority. as opposed to twitterority. you flagged this. you say it is the scariest thing you've read in years. hit us up. >> absolutely. story about this up on the street.com right now. this was a story that ran on msn money but i think it was from
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benzingo which is a news service out there. the headline is the three reasons to tap home equity to buy stocks. leveraging your house to scoop up deals in the stock market may pay off big. there's nothing scarier than that. i put that on a bubble alert. that's not what you want to hear. you don't want people -- the average guy, i should say, because sophisticated rich guys i guess can do anything. but anyone else, listen ton me here, that's just plain stupid. >> it is plain stupid. it feels like history is repeating itself. yeah, like leverage up with your house and go out and buy stocks. that suggests we're at the top? >> use your -- yeah, look, it's one of those things that makes people think we're closer to the top than we are to the bottom. use your home ex-wit loan to improve the value of your home, if that. if you need a home equity line or loan. this is like when people went out and got credit cards at introductory rates back in the last bubble and use those credit cards, they'd get the cash,
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they'd buy the the stocks, stocks went down, they lost a lot of money. >> i'm sure 99% of our audience -- because they're very smart and sophisticated and savvy, knows this. i think it bears repeat, right, herb, sometimes the companies that -- >> it bears repeating. >> sometimes the companies that pay the highest dividends do so because they have fundamental problems and they need to dangle that carrot out there for investors, right. >> they got to pay you to wait. they try to bring you in there, british you bring you in the fold. people think they're smarter and can make more money by taking it out on the equity line. it's just nutso. i can't believe i'm seeing this right now again. >> it is absolutely nutso. okay, herbie, let's talk a little tesla. the stock is up nearly 60% this year and up today as well after goldman sachs raised its price tag to 170 from 200. i believe you tweeted out earlier this reminds you of analysts reports done on
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internet companies all the way back in 1990s. talk of history repeating itself. >> there was a 47-page report from goldman right here. what they basically did is they put every scenario in the world out there of what could happen in best case, worst case, middle case. i think there are five different types of things that could happen. then buried all the way down on page what is it, like 37, page 37. basically say, oh, by the way, even though we're raising our target on the stock by, say, 14%, we're cutting our earnings forecast on the company for the next year or the next two years, next three year, by anywhere from 30% to 50%. of course you know with a company like tesla no one really cares about that kind of thing, but it's certainly something that is -- that is worth -- yes? >> well, i didn't know we were going to talk about that until just now. the goldman sachs price target boosted to 200, who care, the stock's at 240. even with the price target boost, they're still $40 below -- i hate these kinds of
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calls, right. i'm going to grade the stock to a price that's, by the way, far below. don't upgrade. don't say anything. just say you were wrong or you're standing by your previous price target. >> they've done -- they've been a banker for the company so you can understand their position. so to speak. i say skeptically. >> any other way you say things, herb? thank you very much for joining us. maybe one day he can say something optimistically. >> all right, up next, this guy is in the running to become the most fascinating and probably most captivated "street signs" guest ever. the unbelievable lengths he is going to, to fuel the world's coffee addiction. >> plus, a taste test of the world's finest coffee. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer.
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[ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ my mom works at ge. no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪ how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing. it's hard to imagine how much we'll need
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>> i'm going to show you something that you've never seen before. >> he's todd carmichael too. the price of coffee has been soaring this year. but we're here now with todd. he is ceo of lacolum coffee rosters, also star of "dangerous grounds." first off, welcome. second, can you tell us why, baus you travel all over the world buying coffee, why is the price of coffee up 70% this year? >> it's a question supply and demand. demand is constant and supply is dropping. price goes up. in brazil, for example, that's the kind of leading indicator. you get these messages like the prices are high, our stockpile's low. i go down there and i do a trip. it's about a six-day trip and i visit all the stockpiles and farms. usually, it's a myth. the plants aren't traumatized.
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you're seeing stock. this last trip, three weeks ago, it was devastation. i mean, when the prices are going up, i don't think it's over yet. >> this has got to hurt the people out there in the business who have to buy vast quantities of coffee, right? i guess they can hedge to a certain degree but after that, they've got no choice but to either eat it, so to speak, or to pass the cost on to the consumer. >> a lot of times they do kind of all three. there's times, like -- because you don't know how long these things are going to last. particularly if you're in that middle range. buying coffee like we're going to have here, the price is the price. it's not contingent on the c-index or anything else. those farms aren't connected to the market. they have the luxury good and they want the price and that's it. as far as the high-end shops, you're not going to see the price there. it's the middle guy on every corner that gets you. what i can say, for the consumer, not for the investor, for the consumer, prices were at 3.25 about 18 months ago.
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remember that, it was all complete, everyone was living a total nightmare. and prices went up. when it went down, did the prices go down? >> no. >> they didn't. okay, so they're corrected for 325 legitimately. i don't think the end consumer is going to feel a lot of increase. the profit margins of these companies are going a lot of difference. >> i like kona coffee. i can't buy it anymore. i'm not complain being my income, but it's gotten like $30 a pound for kona. i'm out. once it hits the two handle, even if i'm looking to celebrate, kona coffee -- >> what's your favorite coffee chain? what's your least favorite coffee chain? >> my least favorite. that's not really fair to anybody out there because it's going to be a big chain and i don't want to do that to them. i can tell you my favorite. >> go for it. i like their philosophy. it's caribou. >> our viewers know, minneapolis based, the obsidian roast is
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good. i have no stake or stock. not an endorsement. >> and i definitely don't. i'm going to be rude and saying coming from australia where we really know good coffee because of all those immigrants from turkey and greece and italy back in the day, your coffee is terrible in the united states. >> we have no immigrants here? >> generally the average cup of joe that you get is like watery dish water. what is with that? >> where are you drinking coffee? original ray's? ray's famous original? >> office coffee here is swill. it's terrible. >> office coffee. >> prison, hospitals, airplanes, don't drink it. >> a diner or cafe? >> you have obviously never been to la cologne. >> where is the scariest place you have been to get coffee. >> angola because i got stand, and there's -- you know, coffee -- coffee of this quality
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grows high, high in the mountains. it has to grow in a country that's on the equator. you're in a country that's isolated and you have to go to the isolated area of those countries, and often people who want to hide from the authorities are up there as well like cartels, et cetera, and so you can find some really beautiful people but you can find some people who want to -- >> and they're all jacked up on coffee and other local products that sometimes provide additional stimulus. >> so we do a taste test. >> you want to? >> excuse me, my dear, i believe it's called a cupping. >> cupping, tasting. i wouldn't go full on cupping like we're analyzing it. a lot of people say why do you go to all these efforts? off coffee tastes like coffee, right? 99% of the time it does. but that 1% it just transcends, life changing. i got this one, this is a wine like coffee.
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it's from mexico. i will pour two cups. it's on the cooler side so you can really taste it. when i say wine, i mean wine. >> what is the correct way to do the cupping? do you do it like the wine where you swish it around a little bit? waft it towards you? >> i believe they call it the nose. you were criticizing my wine choice the other day. the smell, the scent -- >> stuff. the aromas that come off will be indicative of what it tastes like. 80% of the taste comes through your nose. it's slightly fermented. >> it's very fruity. >> like a red grape. i tend to move that towards the wine-like things. let's say -- i know it's not the case for you, brian, but at the end of the day you don't want to have a cocktail, i'm kidding, you can have a coffee like this and you pair it with cheese and it's delicious.
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>> coffee and cheese. decaf. >> you could decaf. >> does decaf kill the taste? >> it's just horrible. >> i would never have decaf. >> it's like have alcoholless wine or sugarless chocolate. what's the point? >> when you see them put in the methal chlorilohloridchloride, this is not good for us. >> this is like one of the longest segments in the show's history. "dangerous grounds," todd carmichael, and a little coffee empire growing. tomorrow on "mad money" as i try to squikly swallow the cheese, jim will speak with howard schultz. >> next up, meet the entrepreneur behind these swimsuits. that was when brian went, oh, what is going over here? >> they walked by, what am i supposed to do. >> they must be cold over there. so ally bank has a raise your rate cd
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that won't trap me in a rate. that's correct. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.
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make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. $2,000 for 25% of your business. >> okay. >> you better say yes right now while you got that shot. don't let her change her mind. >> you have a deal, barbara. >> that was barbara corcoran making a deal with bikini entrepreneur frank.
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neither of those two, by the way, are frank. frank is here. i will save america and not demonstrate your product. >> thank you. that's why i brought models. >> it's an eight in one bikini and how did you get an investment from barbara corcoran when you went on "shark tank" without a single sale under your belt. >> what we did have was protection in patents. so that makes up for not having sales. we had not even launched until the night of the show when it aired. that was the launch date, so "shark tank" was more of a stepping off point to introduce the product to the world. >> so what is it? show us. >> the swimsuits are pretty unique. since "shark tank" we have gone further and made them reversible. this has a solid color on one side, a print on the other. literally it splits at the middle and with a simple pull of the string, you can interchange it and reverse it and so with four ways to wear a top -- >> thus the pass ept.
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. >> it's eight in one and then interchanges with all the other bikinis in the collection. you get eight for the price of one. >> that's pretty cool. how much have you sold since "shark tank"? >> we did a decent amount of wholesale and we did retail about 200,000, and now this new product that i'm coming out with is called sophie versus emily after my cute twin nieces. one is an angel, one is a devil. they are kind of versus each other. >> are they watching right now? >> i hope so. they're only 5. i think they're supposed to be in school. >> are you supposed to say that on tv? >> i don't know. this is my first time on live tv. we're launching that today. the website is sophieversusemily.com. >> is it possible to make these in the united states? there's been a big debate on our show whether you can make something and still make money? >> i would love to make these in the united states and there are
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a few companies like you mentioned, american apparel, that are doing it but it's very difficult. it's extremely difficult, it's extremely expensive. i can't sell this bikini for $79.99 and make it in the united states. vild i would have to sell it for $150. >> we have to leave it there, unfortunately. those who want to learn more can check it out on the website. thank you so much to frank. >> watch "shark tank" 8:00 p.m. thanks for watching "street signs," everybody. >> "the closing bell" is next. >> see you later. and welcome to "the closing bell." i'm kelly evans here at the new york stock exchange where for the second straight day we're seeing a pretty strong rally in stocks, bill, as the federal reserve begins a policy meeting. >> and if you were blaming vladimir putin for last week's declin declines, investors may have to thank him for two-day rally. market taking putin at his word that it all stops with crimea. others have their doubts
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