tv Street Signs CNBC March 25, 2014 2:00pm-3:01pm EDT
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dom. as always, thanks. let's take a look at ibm. because that stock is up about 3.5%. or almost $7 a share. three etf winners right now. vector oil services and the international real estate. that does it, right? >> that's it. that's all for "power lunch." "street signs" begins now. it is survivor market style. only one can win, brian. the bull or the bear. the question is who will it be? hello, everyone. welcome to "street signs." brian is going to lay out his thesis for crisis investing. candidate, brazil. should apple save itself a pile of trouble and buy netflix? and who said it isn't a man's world? we've got man sessions and man-gria now? >> no we don't. we're going to fight.
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there's an epic tug of war between the bulls and bears. it seems like this. whenever we have a big down day like we did yesterday, we tend to have an up day. and we ran the numbers. 50% of the time when we fall this year, the next day is a higher day. dan, i'm going begin with you. you know, yesterday looked terrible. see, we told you so. today we're not soaring but we're back up. what the heck is going on? >> we're losing sight of the fact that give or take -- well, let's talk about biotech specifically here for a second. that's been cnbc and the media's focus more generally. the ibb is down somewhere around 14%, 13%, maybe 10% after a bounce today. but the broader market was as of yesterday's close roughly speaking 1% off its highs. there's -- we're getting lost in the carnage in one sector and
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trying to extrapolate it to the market as a whole when it's not really what you're supposed to do. >> dan, i can't speak for the other shows on this network, but on "street signs" we pointed out yesterday since when did biotech become a leader of anything? it's been an interesting sector. i'm not going to say it's the leader of the market, so why should it lead us to the downside? >> for a lot of people, they look at the gileads. a sense of market leadership was attributed to those names as well as some of the tech space as the market moved higher. they moved higher more rapidly. hence they became leaders. when in reality with respect to biotech, this is an industry that's roughly speaking less than 20% of the health care sector itself. with respect to the broader market, it's fractional in terms of it. >> samir, why could we possibly be sitting on a ticking time bomb? >> i don't know about sitting on
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a ticking time bomb, but there's some risks underneath the surface. with the situation in ukraine being one of them. the transition of the chinese economy is facing would be another. and some of this weather-related weakness in the country. it remains to be seen if that will continue into the summer. one of these things could be a little bit of a hiccup for markets. we do see volatility normalizing this year. we could get a few more of those this year than we did last year. >> and is it possible that maybe stocks are only going up by default? i don't necessarily believe this, i'm just playing devil's advoca advocate. he's saying he thinks that stocks might be 50% overvalued but he's not selling yet. if you look at the other assets out there, they don't look attractively priced either. >> i think that's a good point. it does pay to take a look at asset classes both on absolute and relative basis.
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on a relative base, they seem cheap to call it cash. they seem cheap to bonds. but if you look at an absolute basis, if you call it a historical multiple, that's really where we're trading at now. we could call them fairly valued. it's hard to make the argument that they're overvalued at this point. >> i'm going to jump in here and say that's a dumb argument. and i'll tell you why. if you think stocks are 50% overvalued and you're still in them, there's not a -- there's a screw loose in your head. >> samir, you got to respond to that. >> that's not samir. with all due respect. >> it actually wasn't henry's idea. >> right. he was just writing the piece about it this morning. >> see, i thought -- the reason i didn't know that is there's breaking news in my ear. i didn't know samir said that. i knew he was crusty i didn't know he was that crusty going after samir. thank you. by the way, here's the breaking news, folks. scary video.
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this is in houston. that is an apartment complex. the apartment buildings are thankfully under construction. they are not inhabited apartments, but you can see this blaze in houston is burning out of control. it is a massive fire. numerous fire stations are there or on the way. and again, an unhabited thankfully, apartment building in houston. dramatic video there. we'll dip out of this to see -- at that point the fire is so large and hot, i'm not sure a fire crew could get that close to it. might have to bring in aerial help as well. either way, that's happening right now in houston. >> okay. we've got a yard full of housing data to chew on this morning. but it's not all rosy. kate is showing the prices are rising but new home sales felled to a low. high prices no buyers? sounds like a precipitation for
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trouble. soo seeming paradox. explain it to us. >> so prices have been rising and a lot of that's been investor buying. but investors are mostly going after existing homes, a lot of distressed homes. new home sales took a little slide. affordability is not as good and we're seeing more new homes sit longer on the market. >> so why are existing home sales outpacing new home sales by ten to one? what's the deal? >> right now it's about ten to one. the norm is usually six to one. you can't sell new homes if you're not building them. existing home sales have gotten a boost from all the foreclosures and short sales which we saw a lot of over the past few years. those are declining now. most places the foreclosure crisis is behind them. that means we'll see that ratio start dropping back down from about ten to one in the direction of normal which is six to one. >> for awhile, we argued that there was no bad news stock market. because if news was bad, the fed might step in and help us out.
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so there's no bad news. whenever we get bad home sales data, you could -- bulls can point to low inventory and say, hey, this is why it's bad. there's no homes to sell. how much merit is there to that argument? >> there is low inventory, but inventory has been expanding. both new home sales and existing -- both new home and existing inventory has been on the up over the past year. what we're seeing is the effect of worse affordability. we're also seeing that engine of investor buying starting to sputter. so the key question for this year is whether job growth and income growth will be enough to take the place of that declining investor buying. >> it sounds as if prices are going to go down. >> prices are going to grow more slowly. that's what i expect. >> not go down, but grow slowly. >> okay. so to mandy's point, there's two reasons prices go down. right? there's lack of demand. >> right. >> that's the bad reason. but then you also have higher interest rates. mandy, you're a homeowner. do you own or rent?
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>> i own. >> okay. so do i. you buy a home, i'm guessing, on what the monthly payment is not the price of the home. >> that's right. >> if interest rates go up, wouldn't that necessarily bring home prices down so that the monthly payment remains about the same? >> if nothing else were going on at the same time, yes. but interest rates don't rise in a vacuum. usually when they're going up, all else isn't equal. interest rates rise when the economy is improving after a recession like we've had. rising interest rates go hand in hand with stronger job market and rising incomes and that will offset some of that effect. when you look historically, typically home prices don't tend to fall when mortgage rates go up because other things are going on at the same time. >> that is the goldilocks scenario we are hoping for. thanks very much as always. >> thank s. aside from the idea i've had there might be a problem with
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cloud competing companies which we'll get to in just a moment, there has been an i be po boom as of late. bob pisani is on the nyse floor where some are expressing concern over how many ipos there have been. >> this is the hot topic down here. brian, business has been great. let me show you how good it's been in the past few weeks. the average pop the 22%. returns since the ipo went public this year has been 29%. that's a great number. ipos versus the market, etf of the business. s&p only up .5%. this was bigger just a few days ago. slipping a little bit but overall great numbers. here's the three things i'm going to watch for signs of a bubble. first ipos getting pulled. i've only seen one recently. not enough to worry me right now. repricings.
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when you get ipos coming out and they suddenly price below where people were talking about. haven't seen that much. if they're worried about the economy, they're going to come out and going to demand that these stocks price lower. haven't seen that in any big way. check on this one. third one, ipo after market. how are these companies trading after the market? recently it's been pretty good. but in the last week or so, i've seen some signs of concern. let me show you castlight. that was a company that went public about two weeks ago. it's in the health care area but it's considered a stock that's in the tech area overall here. went public just a few weeks ago. $16 was the price. traded over $40 and look at this. it's been down almost every day. now, it's 25. that's above the initial price of $16. but, guys, this is the kind of thing that people look at. and ipo guys that are trying to figure this out in the next week or so are deciding the. prices of ipos to come, they look at that slope and say what can we get for these companies now? maybe not so much as two weeks
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ago. that's the kind of stuff i'm watching. guys, back to you. >> and you're absolutely right. whether or not they're in a bubble is becoming an obsession on the street right now. thanks, bob. thank you. it also told investors not to expect profits for some time. it had one big name worried. mark cuban. he tweeted this last night. i watch box the best, but i would come bust if eight years in i was responsible for $169 million in losses against less revenues. ipo should get them going. he was an investor with box and then jumped one year later. >> all this comes as companies like veeva, netstuff, workday. predictions we made back in december would be it would be a rainy day for cloud competing companies. i just didn't think that the hype would last.
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brent phil is an analyst. i'll knock my own prediction. in the media we like things simple. so we lump these companies. everybody company is a cloud company now. are there ones that are good and ones that are not so good? >> yeah. i think we're somewhat stretched in valuations. but i think these are fundamentally great stories. we cover the entire work space. you go through the list. these are companies that are displacing the old world. whether they were applications that just decayed or business applications that were custom written. i don't think this is 99. i think we're now seeing 10 to 15-plus multiples. historically we saw eight to four times the ref knew. you're seeing double that rate from the history of us covering the market for years. you mentioned box. they're reinvigorating a market
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that's been effectively stale far long time. so we think they're, again, a little bit stretched. but we think there's a lot of fundamental value when you talk to these customers. and i'm actually at a customer conference in salt lake talking to customer. this is not a dot-com era. >> there are so many companies out there saying they are a cloud computing company. and to be perfectly frank, not all of them are. this is because cloud is a buzzword they want to pin their, i don't know, pin their name to that particular buzzword. so which of the cloud computing companies actually have what you call the fundamentally great story the ones worth investing in today? >> yeah. that's right. i think everyone uses the word cloud and you have to distill what is good and what is not great. so the companies we've liked in large cap growth. they've had phenomenal returns over the last couple years. you look at sales versus return since they went public in almost a decade ago.
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you know, fantastic returns. right? and so i think those are great large gap growth story. like who's doing a phenomenal job building a platform around service. service now has a great opportunity to expand into that market. you know, those are some examples of stories. i think when you look at the companies that aren't quite there yet, you look at -- you know, microsoft is actually pioneered for a large cap value. they're way ahead of anybody else in the cloud. companies like oracle, they're skating from behind. we combine the total revenue for oracle's cloud at about a billion and you look at the rest of the industry by the next ten vendors. >> we have to go, but i have to get this question in. for workday and service now which are off their hies, are you buying them because you believe the story? are you buying them because at some point microsoft, google, oracle are going to come calling and buy them out?
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>> we're buying for organic. i think there's a parachute at the end. they've done this before. we think these are great organic stories. again, they're up big. so our point is be tactical. we're on what we call black ice. buy these on the pullback. we think they'll go higher. these are longer term investments. >> thank you very much. we'll be talking more about microsoft because it just got a price target increase. >> don't give it away. it's the idea of a tease. keep them guessing. >> sorry. >> on deck speaking of guessing, we're going to talk about getting into country stocks when you think the country might default. yeah. buy the stock when things look the worst. you think we're crazy? maybe, but the data does not lie. >> should apple just buy netflix instead of taking them on? why it could make a whole lot of sense. e. save you fifteen percent or more on car insurance.ould
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welcome back to "street signs." we've got bitcoin related news from the irs. the irs within the past few minutes putting out guidance related to virtual currencies. and in this guidance they are saying that virtual currency will be treated like property. not currency. that's got a string on following implications.
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a couple of important points from the irs. they're saying wages paid to employees with virtual currencies are subject to federal income tax withholding and payroll taxes. there are a couple of other points in here. a lot of detailed tax implications here. we're going to sea a lot more questions from taxpayers how they account for this. >> we're going to talk more about bitcoin later. if you're a bitcoin bull, that is not the kind of news you want to hear, sir. thank you very much. all right. brazil in deeper financial trouble. s&p cutting its credit rating to one notch above junk. but their dow effectively is up more than 3% this month. it doesn't seem to make any sense. or does it? recent history says if a country defaults or deeply restructures its debt, the stock market nearly always rallies.
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here are your examples. first, greece, 2012. i won't call it a default. either way, since the restructuring it's up 90%. next argentina, 2001. that was a true default. ae argentinian default, it's only up 2900% in that time. and finally our friends over in russia back in 1998 defaulted. it is now nearly 1200 for a gain of around 1900%. i could do the same thing with other countries. but guys, nobody is saying brazil is going to default. but the point is if you think it might, history stocks there could be a good bet. let's bring in kathryn rooney
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and michelle caruso-cabrera. stocks rallied because you have money free to spend on other stuff. what's your take? >> thanks, brian. yeah. i like brazil. but for reasons totally different from yours. i think that the risk of default is so minuscule that it's pricing in with reality. brazil was lumped in with the fragile five. it's so far away from a crisis that it's not on my radar. right? i mean, for example, brazil has 80% of the investment. brazil has 30% nominated in u.s. dollars. the rest is local currency. so i don't see the risk real for a default or payment crisis. i think the market has seen over reaction.
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brazil has underperformed 20% against broader emerging markets. >> to what degree do you agree with what she is saying here? not necessarily due to what's going on at home and it's going to catch up. >> the ratio is like 45%. it's not horrendous. the thing to keep in mind even if the stock market rallies, if you are a u.s. dollar based overseas a lot of times those stock markets are rallying but the currencies are falling. it's great for the locals. >> you buy local. >> yeah at some point your dollars get converted into a local currency. then the price sticks and you're stuck at the higher price. like the money you exchanged for a trip ten years ago. >> and it's fallen even more
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since 2010. >> exactly. that's the one caution. >> or by the etf. >> yeah. that's true. when the country restructures, they have a lot more money like when a company restructures. >> and they want to keep their people happy. we're cutting your benefits, we'll build new roads. >> or they inflate their way. the stock market rallied in the republic. >> that's another segment. >> i think that's a great point. just to jump in here. i have a different view also versus consensus. i think the brazilian riyal is going to appreciate. i think the taper is going to be graduate. and the crisis style outflow or total capital from brazil, i think that that is a low probability. and i think that capital will continue to go into brazil based on that. i think there was an overreaction. and i think the market was pricing in a crisis that has not
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occurred and in my view will not occur. that said, i totally agree. there is a big risk. but the etf is becoming attractive. p/e ratios show they're attractive. s&p at 16. chile at 10. so definitely attractive. >> bottom line you agree with brian but for different reasons. and thank you so you as well, michelle. >> i don't care why. >> yeah. i don't care why. >> she agrees. you're welcome back any time. still ahead, a tech legend doubling down on the aforementioned bitcoin. >> and the latest story on the salmon.
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show. down .6%. down about 8% in coffee over the past week. >> but what's it up this year? >> 70% still. >> california's drought has officials cutting back water supplies to cities and farmers across the state. so many fish are hitching a ride in trucks to the ocean. morgan, this is fascinating. >> reporter: thanks. we're in rio vista on the delta in california and this year as you mentioned some 30 million chinook salmon or king salmon are not making their traditional downstream swim. instead the wildlife services and partners are going to be trucking the salmon on land using tanker trucks. so any minute we'll see the first round of trucks coming down. they're going to be depositing half a million of these young salmon into net pens in the river to get reacclimated before they ship out to the ocean.
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now, we're seeing this because the drought has hindered the water levels for the sacramento river and for the delta system along the coast. so we're looking at about 30 million smults being transported this year. we've seen salmon trucked in the past. this is the first time to this extent. today a press conference saying this is imperative to the survival of the species. and this is herculean effort to make sure we don't have an issue when these salmon typically come up to reproduce. so 30 million salmon, we're looking at about $150,000 costs per week over the next two months. it's a fishy situation. back to you. >> we're not going to let that one go, morgan. we'll pay it back in time. that joke did not scale. on deck, microsoft's management changes getting love from the street. you won't believe the latest analyst price target. >> and should apple join
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street talk time. news and views you can use. first up we've got blackberry receiving commentary from analysts over at credit squeeze. what did they say? >> stocks up and does believe they could -- here's the thing. they're reiterating their price target of $7. 25% below the current price. just pay attention to that. >> okay. another tech name is stock number two. highmax technology getting an under. >> by the way speaking of your predictions, this is a google glass play. they make liquid crystal silicon displays. part of the downgrade was concern over the google glass rollout. target of himax cut to 1250. stock's below that right now. >> you're raining on my bitcoin
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parade and google glass parade. share. >> larger opportunity for the cancer drug. stocks already a winner. >> everybody's a champion. >> up 66% year to date. >> and you deserve a medal too. and wabco holdings. >> it's up 1.3%. this is the old westing air brake. they make brakes for big things like trucks and trains. here's the key, folks. his is what we call the nut in the news business. 142 from 106. that is 33% above the current price of the old westinghouse air brake. from street talk to talking numbers and a huge call on microsoft. mandy spotted this morning ubs raising price to a heady 46
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bucks. one look today on the technicals. rich, the last time that microsoft hit $46 was around march or april of the year 2000. i admire ubs' boldness, but is there anything technical you're seeing that makes you think it can get there? >> i've got mixed emotions with the stock. obviously acting well here in the short-term. but i can't help but think the recent strength is more an indictment of high flying technology stocks than it is an endorsement of microsoft here. i think we're seeing a flight to safety which is pushing shares too high here. bring up the one-year chart. i'll show you why. you can see since last year we broke above the 200 day up over 40%. nice well defined trend line. then we see this head and shoulders continuation pattern. that's all good. now let's zoom out. you see this very long-term monthly chart. this is fairly impressive here. you can see we've now broken out from a 14-year base of support
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taking out that $40 level. i feel this a trap, though, brian. we had a similar move back in 2007. you can see that dropoff on the false breakout. i have a sense this is going to fail as well. i have been wrong in the past, brian, but i'm not going to chase microsoft here. >> you said everything. so we're not going to get the other side. thank you very joining us as always rich ross. check out the online segment of talking numbers with this fellow standing next to me. coming up next, it is no secret that apple wants to make waves in the streaming world. make it easy. should apple buy netflix? one writer makes his case. >> so why is is a tech legislate doubling down on bitcoin? but first let's see what's coming up on the next hour. >> thanks. we've got a huge show ahead for
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welcome back to "street signs." check out shares of plug power. it's up 21%. it's telling market watch a major deal is expected within the next two to three weeks. that stock spiking up to session highs on the market watch report. brian, back to you. >> thank you very much. mark anndris doubling down on bitcoin. josh lipton is there. so he's here now. josh? >> yeah. here at coin summit, this is a bitcoin conference going on in
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san francisco, mark andreesen was just on stage. warren buffett had called bitcoin a mirage and he was asked to respond to that. here's what he said. >> the historical track record of old white men that don't understand technology crapping on new technology i think is at 100%. >> so having tough words for the oracle. he's also asked how does he think about investing in bitcoin? how does he think about putting money to work? here's what he had to say about that. >> we think there's a whole ecosystem here. we think the ecosystem is already forming. in a lot of ways we think of ourselves as reacting. we're now seeing hundreds of high-quality entrepreneurs and technologis technologists. >> so they're betting big on the core infrastructure around bitcoin. outfitting sites for bitcoin wallets. and andreesen has already put
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$50 million to work in bitcoin. related companies. talking about bitcoin says it's as bulletproof as he's seen. >> josh lipton, thank you very much for joining us. big news we told you about yesterday was that apple was trying to cut a streaming tv deal with comcast. well, that got your next guest's attention. he says if apple really wants to get into streaming tv, why don't they just buy netflix? joins us is john ogg and also our own herb greenberg. great to have you with us today. john, i want to ask you to make your case. why this would be a whole lot easier and maybe cheaper in the long run. >> well, it's very simple. apple is looking -- everyone's trying to figure how apple can make the next big jump. netflix is growing crazily as far as -- you know, as far as media companies are concerned. tim cook hasn't really done anything. i know steve jobs told him not
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to listen to the critics and do what he wanted, but he's doing nothing. he's just kind of sucking wind right now. and frankly, he was super excited about the $1 billion that apple tv generated last year. so i'm trying to figure out how excited he's be about $6 billion next year in netflix revenue. >> i'm a big fan of john's and we tend to think the same on a lot. >> which automatically destroys his credibility on this show. >> thanks for that, herb. >> he did not need that endorsement. >> but -- no, but i think what's important here is first of all let's say apple should buy them. the question is what price. netflix with the stock price that can fall lower. >> no, no, no. stop there. most deals are done eight times multiple. that's impossible here. but the company would sell for 80% less than the market cap.
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so let's assume it's double the market cap. just throwing it out there. why not? is netflix worth $44 billion, herb? >> i don't know. i really couldn't tell you. because i can't tell you what the future of that industry is. netflix has done a phenomenal job building a great business with what? what is the revenue number? >> $6 billion. next year. >> or does hastings want to be the consolidator in this industry that rolls it up and makes the company that much more valuable or what he believes would be that much more valuable? >> john, how much of your argument is also just because just apple should get in before someone like amazon does. what if amazon swooped in and bought netflix? >> amazon can't buy them. they don't b have the cash. that would be a stock for stock deal. i'm sure bezos would love to consolidate that down. but investors are just taking one super expensive stock for another. i did lay out yesterday that this is a quote, unquote bull
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market call. and for that matter, you know, we have to acknowledge one thing. i think netflix has traded up maybe one day in the last month. i didn't get to see where it was before we came on here, but the stock's not acting well. that shouldn't be the driver of any deal here. >> maybe we're asking the wrong questions. how big of a burden does netflix have? the only reason somebody would buy them is if they thought they couldn't beat them. is it hard to start a company that does what netflix does? do they have a mote around them? >> i can go out and start one of those companies on a very limited basis. the problem is the movie studios will laugh me out of the room. the other is 44 million people are using netflix. it's a -- it's a massive number. think about the power of itunes right now. i have no idea how many millions of people that they have, but i just read last week that they
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had 80% market share of online music. well, you know, they are already wanting to do more and more in movies. this is one of those things that it's a super expensive deal on the surface when you look at it. the market cap's $22 billion right now. $6 billion in sales next year. $6.4 billion. >> right. super expensive and that's the point. too expensive, perhaps. just because apple has a ton of cash doesn't mean this is the place to spend it. zb. >> and for the sake of our viewers, netflix is flat but up over the past year. john and herb, thank you very much. john is from 24/7. >> that's what we like about you. people like your personality because you give a little extra. >> i actually gave him three hours extra. >> that's a blog inflation. >> still ahead, hold the umbrella.
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the big makeover for fruity cocktails. >> and our march madness for stunning homes. two stunning homes near two championship schools. the winner will be revealed. let me talk to you about retirement. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. i'm actually a dj. [ dance music plays ] woman: [laughs] no way! that really is you? if they're not a cfp pro, you just don't know. cfp -- work with the highest standard.
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seven, comma, million dollar homes have been battling it out to show which is the best one for your buck. and since we're in the middle of march madness, all all the scho are conveniently located near schools who have won a march madness tournament. we're down to the semi-finals. >> teams in play in this round are the north carolina tar heels versus the florida gators. touring the homes are seema mody and mary thompson. let's join them on their tour. >> this luxurious estate is located on 2.6 acres in a gated community on a cul-de-sac and next to a nature preserve. it provides you with lots of privacy and serenity but if you want to hear the roar of the crowds, you're minutes which afrom a top rated basketball team. >> this traditional ranch style brick home sits on three-quarters of an achor in a quiet neighborhood, but it's just five minutes away from a vibrant downtown and the
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university center. >> this 5,000 square foot house has a top of the line kitchen with an open layout granite countertops, stainless steel appliances. it's surrounded by a breakfast bar with plenty of room. >> this 5,400 square foot home is built for entertaining. this kitchen has state of the art appliances and it's centrally located between the dining room, living room, and nook. >> this five bedroom 4 1/2 bath house has an enormous master bedrooms with a gas fireplace and remote controlled shades. the master bath has a doorless walk in shower and a jetted tub. >> master suite at this four-bedroom, 4 1/2-bath home has easy access to an outdoor ja cuzzi and a fireplace you can enjoy from in bed and in the bathtub. >> relax by this resort-style pool and hot tub that's right next to a nature preserve. it's a perfect place for entertaining during the final four with its outdoor kitchen and gas grill and this piece of paradise can be yours for 99
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$99,5 $99,59950 $995,0 $995,000. >> the gazebo has a fire pit. all of this could be yours for $995,000. >> joining us is real estate super broker dolly lenz. >> i have to tell you, you know, dominick's house is so terrific. you know, it's just -- has everything, everything you could really want. it's an entertainment house a fine living house. as we said, we could make s'mores in the pit. we can have a fireplace in our bedroom and your bathroom. i don't know how you beat that house. i have to tell you -- >> fireplace in the bathroom. >> yeah. how often do you see that? >> not very often. >> exactly. did you see all the snow? look at all that snow. this year fireplaces are in. they're big sellers this year. >> when people are going to you when they say we want a house are they more than other years saying i want a fireplace? >> much more.
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>> you two city penthouse dwellers, i live in a rural air. i cut my own firewood. it's expensive and it's hard to cut. >> we have it delivered. >> plus i'm lazy. >> like the food. >> go back to the houses. mary thompson's house is pretty sweet. >> it's a sweet house. >> and she looks so nice by the pool. >> she's great how she handle it is and everything she's doing and the tour is perfect. but i have to tell you, dom's house is just hard to beat. >> okay. so that's the winner. >> yeah. >> it's dom's house. >> dom wins. round five, let us know if you agree. you can tweet us using the hash tag. >> exactly, million dollar home. >> awesome stuff. thank you very much. up next, adam carolla, the famous comedian, is trying to convince jane wells and us that it's okay to drink weird fruity alcoholic drinks. we're going to fight coming up.
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>> they're calling this a weird fruity alcoholic drink adam corolla. what is it actually called? >> i was called weird and fruity all through high school so that brings back a lot of painful memories. mangria. >> up next, we'll talk about it and why ready to serve cocktails are a new thing, after the break. became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim. ido more with less with buless energy. hp is helping ups do just that. soon, the world's most intelligent servers,
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it's bedtime. your mattress isn't bliss: it's a battleground of thwarted desire. enter the all-new sleep number classic series. designed to let couples sleep together in individualized comfort. starting at just $699.99 for a queen mattress. he's the softy: his sleep number setting is 35. you're the rock: your setting is 60. that works. he's the night owl. his side's up while you're in dreamland. you're the early bird. up and at 'em. no problem, because you're in it together... keeping the love alive. and by the way - snoring? sleep number's even got an adjustment for that. crazy? only if sleeping peacefully with your soulmate is crazy. find your sleep number setting only at one of our 425 stores nationwide. you can afford a sleep number bed, you can't afford another mediocre night's sleep. know better sleep with sleep number. we can always make time for a little booze news. a former comedian turned
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entrepreneur is bellying up to the bar to give the ready-made cocktail business a manly makeover. jane wells is live at the nightclub and bar show in vegas. of course, jane, over to you. >> i'm with adam carolla. there's 37,000 people expected here today. this mangria, it's not like you put your name on a product someone else made, you created this yourself. >> no -- yes. no, i mean, that's the mangria started. i cooked this up in my own kitchen and started putting it in mason jars and bringing it to jimmy kimmel's 4th of july party and spreading it around with the friends. very organic. >> what turned you into a mixologist? >> well, i started as an alcoholic and then i worked my way toward mixologist. i was in my kitchen, and i was out of red wine. i had about this much left and i said this will never do. so i dumped a little vodka in there and i said that tastes
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like poo and i mixed some orange and it was born. >> how many would you like to sell this year? >> we'd like to get to 50 and beyond. for us it's onward and upward. >> mangria though, you know, i was read being white peach notes and pear. is this actually -- you call it mangria. >> well, we have a white, and the white is the peach and pear. that's usually for the ladies. >> that packs a punch though. >> not with the sailors. we have white. we have red, and we have brose, a mixture of the two. >> you have never done anything like this before. >> right. >> starting up a business. manufacturing, distribution. what has been the most interesting lesson you've learned? >> just figuring out how the business works, figuring out how to changes from state to state,
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municipality to municipality, which is something you can't say after two of these. so that will be the last time i say it. and what's your space? you know, first we started in the sangria aisle and you can get a refrigerator box of sangria for $2. so we thought maybe we should be in the ready to serve cocktail aisle, and that's where we'll be now. so little things like that. >> and what's next? >> what's next for me? i get drunk, i run in a circle around the convention center, and i die of heat stroke. >> you heard it first here. adam carolla, thanks very much. >> here is my question for you. you are a man. you like to drink. would you drink and by the mangria? >> if i could do it with adam running around a casino and then hopefully not dying of heat stroke, yes. otherwise, i'd have to try it first. >> and -- >> i'm not a fan of these combined name things but it may be a delicious drink.
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>> what we've seen is we're now positive across the board. we have the nasdaq also turned positive at this stage, and it kind of feeds into our little fury that we had at the top of the show there as well. >> about how things tend it turn down and then up again. it's a real tug of war. a real olympic battle. i'm sure there will be more of this ep i cic battle on "the clg bell" if kelly and bill haven't been hitting the mangria too hard. >> "the closing bell" is now. yes, welcome to "the closing bell." i'm kelly evans down here at the new york stock exchange where, bill, stocks, the dow at least, having almost a triple point session. >> it has a couple times today. i'm bill griffeth. stocks are trying to finish the day strong as we enter the final hour of trading. we were up triple digits out of the gate. at the peak we are up 130 points then lost some steam. right now the dow is up 95 or thereabouts. mixed economic data o
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