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tv   Street Signs  CNBC  July 10, 2014 2:00pm-3:01pm EDT

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monster beverage, archer daniels, midland, and pitney bowes, now up on the day by 2 1/2% on monster. archer daniels up 2%. pitney bowes up 2% even though hey had tough times earlier in the day. it's going to be interesting to see if they can move into the green in the last couple hours of trading. >> the direction has been positive since that big falloff earlier in the day. that does it for this edition of "power lunch." >> "street signs" begins right now. fear today, gone tomorrow. what a turn for stocks. in fact, as you just heard sue and tyler talking about there was a chance we could end higher. find out why we have come back so far. plus, mandy and i go to war over what really caused this morning's swoon. have american restaurants reached what we're calling peak food? and some new developments around the mission industry of sync
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tens, that former penny stock is soaring. we've just done some reporting. we're going to have it exclusively coming up in a few minutes. first, the markets. boy, what a turn around we've had. the dow is down 180 at the lowest point but right now as you can see here behind me it's only down by 47 points. it came this morning on a new round of global worries. our question is were those fears justified? these were the three big things from over seas that could have hurt the market this morning. wuk me through. europe and the -- weak economic data out of the region. sharply low with greece and portugal shedding 10% over the past week alone. then you've got investors pulling out of european banks over concerns. european banks are exposed to a lot of sovereign debt. let me walk to number two. this is asia data. behind me you can see china, japan flags there, japanese machinery orders, indicator of plunging a whopping 19%.
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suggesting one of the world's biggest economies is stalling and then china export growth way below estimates. and then icon number three. listen. listen. you will get you a moment. rocket fire between israel and hamas has been escalating by the hour pore. and that is another fact of keeping the market on edge. sir? >> okay. you say it's all europe and asia the reason we swoon. >> not all but those are three things people are talking about that could have spooked the markets earlier. >> that is true. but not to be the jingoistic of american. homes are bubbling over a bit. why not walk through to desmick problems. the russell 2000 is the biggest decline aer of the major index these week. here's the thing. nearly all the revenue of those 2,000 companies comes from the good old u.s. of a. number two. northern about homebuilders starting to come out. lumber liquidators. a stock we've talked about a lot on cnbc today slashing guidance. remember, home building and
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housing services contribute about 18% to u.s.s gdp. that's according to the national association of homebuilders. in other words, it's important. >> it is important. >> okay. then no offense to your boy mario draghi. >> he's my boy now? >> janet yellen and the fed. we know qe will end in october. we've known that for a while. are we finally starting to come to grips for an investing world without the old fed pumping station? >> okay. well, okay. good point. good points on both sides i would counter but we have the perfect guys in place to make sense of all of this. let's bring in bob pisani, rick santelli, don't take sides. let's be objective. journalists over all of this. bob pisani, you know, i would say that maybe it's a little bit of everything. when you've got a market that is at or near all time high, right, it doesn't take much out there to upset the apple cart. >> this has a lot to do with valuations and bonds and stocks. some part of the market that i think are frankly silly. bonds can get over valued just like stock. i said all week. silly valuations and internet
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names as well as in some small cap tech names. i'm glad the russell is down. some people in the market are saying, hey, fellas, does this make a lot of sense to spend 150 times forward earpings for pandora? really? maybe it is but at least somebody is asking questions and the same thing for peripheral debt. is question isn't why didn't it go down, the question is why in the heck did it go up so much in the first place? that's your providence, rick santelli. >> i think that's an easy one. >> rick -- >> go on. go on. >> no, no, no. to bob's point, why are spain and greece coming to market with debt with yields on par with the single best american companies almost? >> well, because the heavy hand of central bankers kind of manipulating the market have really pushed this very complicated set of trades. but the long and short of it is is that all the central banks and all the countries, whether it's portugal, greece, italy, spain. they basically own all their paper. they get full collateral on it
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from the ecdb. they manipulated rates on these levels. it wasn't a real level and it was distorting the value of u.s. interest rates. bob is spot on. so even though all economics i think is global nowadays, i think if you rearrange the valuations and fixed income markets in europe you can see the rates creep up a bit. >> we need to remind the viewers the last u.s. correction we had was largely the fault of the european debt crisis. >> the draghi put is alive. i want to know how much real dance are they really going to take losses or the ecb or the national government is going to step in. they're going to come out and help them out. i hope not. i think we're going to clarify that. >> listen. i think all the points are well noted. it feels like 2008 all over
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again in real ways, we talk about the piigs, portugal, ireland, italy, greece, spain. they're dows, if you will. they are the worst performing major indexes in the world right now with the exception of one or two sort of random indexes. does it feel a little bit like six years ago? i think draghi will continue to put in a enough sfifingers to h the dive. without reform and that is lack of economic growth and productivity. >> i just want to pick up on what you said there, rick. >> reporter: you hoping that mario draghi is going to come out. only ten fingers. probably more than ten holes to fill. i'm just wondering whether or not people are starting to lose the ability of policymakers to be able to so-call fix all of this. agree or disagree? >> i would say it is changing.
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remember, the key vary yabl there is can investors profit from what central banks are doi doing? central bankers are not putting money in investors pockets they will become much more objective about how they're manipulating the markets. >> the minute you put more liquidity in, things calm down. nothing happens. no reform. reducing the number of banks, that could reduce the number of holes but nothing's happened on that front. >> of course, the biggest four banks now control greater assets of america but we'll save that for a different day and different show. bob and rick. >> we're talking about the here and now. right, this morning. but, america, hopefully, probably, you are investing for years out, right? not today or tomorrow. at least you should be. so let's get some ideas. let's bring in strategic wealth founder mark teper and barry james, president and ceo of james funds. a little weakness the last
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couple of days. if you're using that to take advantage of buying more stocks. what are they? >> well, i would say that folks out to look for things that are going to be stable and maybe a rotational type of correction. probably not a normal type of a correction where you just see it as v-shaped decline in recovery. and what we're seeing is some of the top stocks, as i mentioned, had been pulling back and small cap stocks had been pulling back. a third of them are actually in their own bear market. large cap would be one area we say you should go and look for companies that are relatively cheap and have a history of good earnings. not a concern of projection of earnings but the history and we've had solid returns relative to the market. two other things i think are important. not overly loved on wall street. things that are a little bit neglect glekted and buying back shares. we have three areas that we like today. energy, noncyclicals, and utilities kind of fit the bill and very large companies. >> which names?
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go ahead. >> baker hughes would be one of them. kroger would be another. and then aes. and in all those cases, they meet those exact criteria. cheap with good earnings. been buying back shares. not necessarily loved. in those sectors, energy, noncyclical. and utility. and they have a little bit of dividend yield as well. so they got a lot of pieces of the puzzle that you can ride through this and be more stable with the high fliers and folks investing in. >> if i could sum up your feeling. do you feel that maybe the party could be winding down and inskresing in those stocks accordingly. you think the party ain't over yet, mark. which three stocks do you have that will keep on ride that party? >> we like similar sectors to barry. right now at this point we're kind of adopting a bar bell portfolio structure. we like energy and then we also like the defensives. yoo you tellities in particular. so chevron would be a good
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energy play. southern company is the utility play we like the most. and then medical equipment companies look attractive right now. baxter is a good play there. >> even though it's at a new 52-week high, baxter? >> yeah. over the course of the past 52 weeks, it's up 7%. it hasn't done a lot over the last 52 weeks. medical equipment stocks have been struck in a trading range and we're expecting that over the course of the next year, two years, we're expecting it finally to break out of that frayedi i trading range as sells rev up. >> barry, we should note, i was going through your records this morning in a good way, and you're golden rainbow fund is only two down years since 2000. is that true? >> that is true. >> i want to give you props to that. let's ask this. we're always asking you what you're buying. how about this. what are you selling? >> well, again, it would be the opposite. we're really not that complex.
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if it's very expensive, earnings are not very good and it hasn't been going up. that has been one area i've been selling. stocks that have gone up too rap rapidly, we've been trimming back on those. that's what we've seen in the last few months. actually fell the top performing stocks did. so we would see that. and maybe some smaller cap stocks focusing more on large cap names. i prefer small cap stocks but for right now we think you need to be a little more stable and the large caps are doing that. only 3% of the large cap stocks are in a bear market. so that tells you that they're holding up much, much better. >> ron asked a great question. mark, what are you selling? >> we are starting to shift out of the over-valued cyclicals. materials and industrials happen to be the two sectors that we feel are really just beginning to look over-valued in the cyclical sectors. technology and energy still look good. again, the money is moving into more defensive sectors and we're doing to use market strength throughout the summer to continue to move out of
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materials and into industrials. >> bamark and barry, real pleasure. >> come back, lebron. >> he ain't coming back. mark, thank you very much. barry, appreciate it. coming up, the one stock that might be a big canary in a coal mine for housing. today's mystery chart has been surging just over the past month. here's a really big hint for you. it is not a stock. financial noise financial noise financial noise
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yeah, citi mobile. and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app. lumber liquidators taking a
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beating today after cutting guide dance. let's bring in bob pisani once again because, bob, you were flagging this in your trade this morning. it could be a canary in the coal mine for housing which is why we need to pay attention to it. >> yeah. look. everyone knows remodeling slowed down a little bit compared to last year. suddenly last night after the close lumber liquidators come out with numbers so far off. everybody looked at it and went, what? how could that be? look what the numbers were. same-store sales saying are going to be down 7.1%. what? the expectation was up 6.7%. that is an enormousness. everybody was wrong by orders of -- everybody now scrambling saying huh? what happened? are we really that off. they basically said yes, we are seeing some real slowdowns. lumber liquidators, home depot and lowe's down here. that's a big issue for them. home furnishing companies.
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they are all to the downside. builders are holding up better. here's the thing that's important. we had big jumps in earnings last year. look at lumber liquidators. earnings were up. this year they've been taking numbers down for a long time. this is flat. the thing still dropped. 15%, 20% today on this. here's what the take away is. lowe's had a 23% increase in earnings last year. 2013. do you know what they're thinking this year? 20%? 21%? the numbers have not come down dramatically. i'm not saying it's not going to happen. everybody gets that deer in the headlight look and says, huh, maybe you have a better look at those numbers as well. >> they should. good lessons there, bob pisani. thank you. let us bring in analyst lord champagne and diana olick. laura, we love you and you've
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been right about a lot of stuff. you've been bullish on this company. that hasn't gone right p. >> we have cut our price target by 20% today. downgraded lowe's to a sell in late may. should have kept the red pen ro ro rolling. we thought lumber liquidators would gain share. obviously didn't happen in the quarter. they had supply chain issues that hit them as well that we were not anticipating. we have cut our expectations longer term and we agree with bob that numbers may be coming down for the sectors a whole. >> do you think this spells bad news for housing as a whole or may be company specific going on as well? >> for the past couple of days we have not heard great news from tractor supply. we heard something from container store that was not pleasant. so we will need to hear from mohawk. we'll need to hear from tile shop. what was partially baffling about this is that lowe's and home depot sounded pretty good
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two weeks ago at an investor conference. it's a little bit too early. but lumber liquidators definitely spooked us. >> diana, gosh, things have been so good in housing for so long. is there anything that sort of has signified why there at least appears from the headlines to be a u-turn very rapidly? interest rates are still great. >> i would -- no, i mean, i would argue with you. housing has not been so good for so long. we did see a big bounceback in 201. a lot of that is largely driven by investors. investors buying distressed properties. what were they doing with this? renovating them and using lumber and getting materials from the home retailers. interesting in the note put out by the ceo yesterday saying that, sure, sales were slow in the winter. we expected that. we had a terrible winter. we expected them to bounce back in the spring. they did not bounce back in the spring very much. why? because of affordability. we keep talking about those prices driven up by investors but mortgage-independent regular
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home buyers are not doing that and investors are moving out. so it seems pretty simple why we're not seeing that bump up. >> are there any in particular you like, any of those related stocks would you -- which you think can do better than the rest? >> absolutely. we would not touch any of them today. i think that -- >> not a one. >> lumber liquidators was supposed to be the growth vehicle. obviously not panning out. we would stay far, far away from the group. >> i will push back a little bit though. i hear your points. they are good points. but it's kind of like the argument that stocks went up but on lighting volume. why do i care? you're saying the investing firms are buying houses. as long as someone is buying houses i don't care if it's mom and pop olick or blackstone group. they're still buying them. >> it was a very good thing the investors came in and ate up that distressed property and put a floor under the market. that was necessary. but the investors are not long
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term. there aren't that many distressed properties to buy. yeah, it's great that they bought the houses. then, as they move out, which they are doing now in droves, you have to have that regular home buying market, those first time home buyers come in and fill up that space in order to support the housing market. and near not doing that. first time home buyers are sitting on the sidelines afford it still an issue. is housing better? yes. realtors are saying it will be lower this year than last year. >> any end in sight? what's going to bring the first time home buyers into the market? what's going to make them change their minds? >> improvement in jobs. we were talking about it today. you're not seeing the income growth you need to see to support this growth in home prices. home price gains are easing but still up. still up dramatically. usually we see gains 3, 4, 5% a year. we're still up in the 8%, 9%, so% in most markets around the country. we need to see the prices come down. we need to see better jobs. we need to see more income
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growth. buyers will come back to the market. there is demand. housing will continue to improve. it doesn't just totally recover all at once like we expected. >> laura, diana, thank you very much. good conversation. still ahead, if this stock does not scream red flag to you, then i do not know what does. we're going to dig in on one specific name ahead. last chance to get today's mystery chart. it is not a stock, as mandy said, but it's been a standout over the past month. it is up nearly 12%. get a load of this chart. at legalzoom you can take care of virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side.
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time to reveal the mystery chart. it's up about 12% over the past month alone. if you guess the precious metal silver you were right. what's been driving the recent silver surge? let's bring in our guest george from rbc capital markets joins us now. goernl, what's your take? >> i think it's been overdue. i think silver is playing catch-up. i think silver has been lagging. silver has actually two horses pulling the cart. you've got industrial demand which a lot of people don't realize how much silver is being used i've sense many years ago kodak stopped using silver for film. silver has found a lot of other
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uses. lcds, computers, medical and so forth. and now, silver also has investment demand, especially in india. india, you know, put up 10% tax on gold and everybody thought, oh, boy, when the new regime comes in, there's going to be a lesser tax, but surprisingly, india maintained very recently in the last day or two their 10% tax on gold. >> right. >> so silver is going to be more in demand. >> i'm dplad that you raised the issue about gold because obviously silver and gold have slightly different uses, right? >> absolutely. >> to what degree is silver just tracking on what gold has been doing. and gold for all we know could, if two political worries go away, gold could go back down. >> absolutely. on many years, trading them on the floor, we traded ratios. silver/gold ratios. a lot of institutions would like to have a contract of a silver
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or gold ratio but we were never able to get enough support for it. but i think as time goes by people are going to say, hey, silver has been lagging. silver was down to $19 and change a few months back. the end of the year. and now it's up to $21 and change. but silver should be at least half as food as gold. >> okay. you say it's an overdue catch-up. thank you. we'll keep watching where silver is headed. all right. coming up after the break, same tench, a very interesting story captivating wall street. we've been report og than name. we're going to bring it to you. you're going to want to hear it. still to come as well, forget peak oil, if we reached peak food. a restaurant story that may have you thinking twice about american eating. ♪
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did you know a ten-second test could help your business avoid hours of delay caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business. built for business. time to run down the stock news and views. stock number one. let's get to it. auto desk getting an upgrade from overweight to equal weight? >> barclays saying new subscription model offers solid revenue growth and margin expansion. increased target on absk to 65
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from 51. 27% increase. hot stock. up about 60% for the past year. >> also got tractor supply. out perform. >> coming out defending the stock. the company stock is attractive after it's down 25% year to date. price target, $70 a share. 16% jump from where the stock is trading. >> united health, big downgrade for the company at jeff phrase. >> moving from buy to old. downgrade is based on evaluation call. target set at $87. still see a couple of stocks of upside. >> under the radar name of the day. met as residential and commercial property. out perform at capital. >> the ticker is up 1 1/2% to 51.14. target set at $59. rbc sees another 7 3/4 worth of upside left on fsrv, mandy. >> okay. >> time now for our talking numbers segment.
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today it is chevron. their earnings out after the bell. steve cortez of vera cruz. how does chevron look? >> real mixed emotions here. while the stock looks bullish in the short term, setting ourselves up for the longer term trap here. let's start with that year to date. i'll show how what i mean, brian. now, we come out of the gates and we stumble. we lose 12% in just the first month alone. since then you see a very nice trend. up 20% from the lows. reclaim the 50-day moving average. finally here at the tail end of the move we set up into what's called a bullish pennant formation. not only is that a continuation which tells us that the next move should be higher but it also gives us measured upside target using the move into the pattern of $10. we could see 140 on this stock, brian. zoom out real quick. go back to 2003, 2008, five-year bull run. right at the end, take out triple top resistance.
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breakout proves false. over 40%. here we are today. 2014 at the tail end of five-year move. take out triple top resistance. break out to a fresh all-time high. the breakout hasn't failed out. if history repiece itself, it may in the broader market, brian, we could be set up for a very fast move down and bull trap here. >> you've explained exactly why you is mixed emotions. do you get the same mixed emotions fundamentally, steve? >> no, mandy, no. no mixed emotions. i love this company. i love this stock. for 20 straight years chevron has raised its dividend, currently has a dividend yield of 3.3%. you only have to pay 11 times next year's earnings to capture that dividend. fundamentally, the most exciting thing about the company is what's going on inially question fid national gas. three operations in asia where that market is set to explode. if it happens to get hit on earnings i would be a buyer lower. >> got it. thank you to both of you. there are three more every single day. the online version of talking numbers with yahoo! finance.
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all right. so this next story captivated wall street all day today. it's a company called cynk. take this story with a grain of salt. this was a penny stock a short time ago. nothing. now the market cap tops $4 billion. to the cohn has been looking into this company and its incredible run. new reporting as well on this. >> incredible not a bad word for it, brian. this kind of takes us all back. as enticings that chart may seem, stop, listen, be careful. me, same technology is a $58 billion market cap company as far as the stock price goes. it didn't exist at this time last year. when it began trading over the counter, the list of requirements is minimal. in fact, the company notified the s.e.c. just this year that it would no longer be filing financial reports at all. hasn't reported any revenue at all. the s krrks c filing lists one employee, that is ceo and president marlon sanchez at the
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time of the filing. we just talked to him. he told us he's no longer associated with the company. the company purports to run a business social networking site called intro biz. it is hard to tell looking around that site just how active it is. the stock was trading as low asics cents a share last month. today trading in the $16 range. we've been trying to determine just what this business is. that is not easy. the company purports to be based in belize but the phone number listed on the s.e.c. filing is out of service and under the supposed neighbors in the building where the firm is located haven't heard from it. we found another address for the company in las vegas but the building management told us the firm hasn't been there since last month. an attorney who wrote to regulators just last month on the xacompany's behalf says he longer represents the company. cynk's outside awuditor says hes disassociating himself from the company saying, we quote, who knows if insiders are trying to
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pump it to a high price. they certainly have gotten it there, whoever is doing it, brian and mandy. remember, what goes up particularly in these kinds of stocks can come down long before you expect it. >> wow. okay. scott walk on over here. also going to bring in cnbc contributor herb greenberg. before we get to the tweet you sent out, i didn't copy you on the e-mails because we just literally wrapping this up at 1:58 before the show. returning around crazy. so here's what i learned. okay. to your point about the neighbors in the building. corporate headquarters is listed in a building in bell lease ciz. i talked to a representative of the building. he she had never heard of cynk technology or introbis. it's listed on the fourth floor in suite 400. the person in the building said there is no suite 400. there are four occupied -- three occupied suites on the fourth floor. 401, 403, 404. 401 occupied by a law firl.
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two other firms that do private type banking stuff. i got ahold of somebody at all three of those companies. the two bankers didn't say cynk or intro biz. never heard from them. the law firm asked for request in writing but it's not clear if the law firm represents cynk or intro brve int intro biz. >> we can usually tell what a company is. we're used to filing companies all the time. we haven't found any there for this company. for what that's port. we know promoters have been active in this company and that may have helped run the stock up. remember how promoters work. they're getting some of this stock which is a very limited flow to this stock. >> building -- 23 you go -- i went to capital iq, fact, the s.e.c. filing. it says suite 400. there is no suite 400. >> yeah. we've established there, that doesn't seem anyone there. >> public company.
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why do we have to go on a wild goose chase. fundamentally. what does it say about the market? fundamentally it is saying this is a bull market that maybe certain aspects of this bull market have gone crazy or is this just a one crazy story? >> well, it's one crazy story. that is great reporting by cnbc. it reminds me of the great stories from years past. and as i pointed out yesterday on twitter, who is buying this garbage? you have to ask that question knowing almost nothing because when you see a stock up 26,000 percent in the past month and one employee who we learned doesn't even work at the company, you say, who is buying it. it does get to that point of the, quote, unquote, absurd phase of this market. let's not forget there was a story last week that a lot of people missed because it was about a stock that didn't trade in the united states. go wax which was a hot spot company that is a spanish company. research firm gotham city came out, reported, this was online. reported fraudulent issues.
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the company came out and said, you know, that the information was wrong. over the weekend, the company effectively blew up. the stock -- >> i think it's a fair point to ask who exactly is buying the stock. why are they buying it? what happens to all of those buyers when they found a out there are no assets in the revenue. just to play the devil's advocate because we're still vie trying to get answers here. what if the company is real? what if? >> what if the company is real even if it's real? it doesn't deserve to have what happened. >> okay. >> to be worth more than, what, 11 of the fortune 500. >> i got to tell you guys something. when i was flying back from my vacation last week i'm sitting there watching the wolf on wall street. i hadn't seen it before. then i come back to this story. and i said, this is wolf of wall street 2.0. the volume is relatively light -- >> herb -- listen, guys, herb -- >> the s.e.c. declined to comment. >> great stuff. i want to reiterate what i learned about 20 minutes before
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the show because banging out the phones. listen, the people in the building who said there's no suite 400, maybe there was. maybe the law firm does represent the company. but, to my point, no suite 400, nobody on the floor i talked to, all three companies on that floor had heard of it or claimed to have heard of it and to mandy's point it shouldn't be this hard to locate the headquarters of a $4 billion company. >> it shouldn't. >> zero revenue. >> one thing worth pointing out. i imagine a lot of people trading in this stock right now don't care if it's -- they're playing the momentum. >> right. >> and the point is that what goes up, as i said before, can come right back down whenever who is controlling this stock decides it. >> perfect, "wolf of wall street" stuff. ride it until it rides no longer. >> this building in belize city was interest when i call them up and nobody had heard of anything. just about other stuff, too. >> i think you need to go to investigative trip, boys, to belize. >> i'll be happy. >> margaritas all around.
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all right. what a roller coaster day for the overall market. we came in right, the dow is down 180 points. >> now it is currently down, oh, let me see, a whole lot less than that. >> you know bill and kelly, it just goes to show you that anything can happen. the piigs are flying, i guess, the piigs are being slaughtered. i mean the piigs with two, i sglz you take that, kelly. you know, i think it points to who -- you have to ask, who is doing the selling this morning. and i think a lot of europeans were doing a rot of the selling this morning because once we saw the europeans market close around 11:30 eastern time that's when the markets started to come back a bit. we've got a tale of two marketing. >> which isn't to say if this is a start of a europe risk off
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move in the market, we're going to try to get our arms around what is going on. portugal with the troubled banks and adros sector there. guy, just weather and how the flows in and out of the trades can move markets more broadly. just paying attention to whether this big move into europe run its course. >> classic strategy sessions. smart investors joining today. do you buy here? what do you buy? where are the bargains in this market that's been rolling over the last week or so? >> they prefer to go by gips, by the way. >> oh. >> oh. >> says the girl who used to live in london, your fancy. do you also drink your tea with your pinky out? >> yes, i do. >> i can vouch for that. >> what happened to you, kelly? small town virginia. just a country girl, now sophisticated. >> one year in london. look what happened. >> i know. wearing a beret offset. >> thanks, guys. >> see you at the top. imagine a future where you do not have to sit in a waiting
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room in order to see a doctor. seeking advice from a doctor online or one of the next big things in health care. bertha coombs joins us now with more. i always feel like i come out of the waiting room sicker. >> a lot of times. we hate being in that waiting room. but time and money are the real issue. telehealth has been the next big thing for a while now but now the technology is making it much more accessible and cost much more attractive. according to benefits from mercer, 18% offer telemedicine access from teledoc up from 15% a year ago and more are looking to sign on to save money. so now industry heavyweights like wellpoint are getting in on the business as a way to offer cheaper access to doctors to employers and their workers facing higher out of pocket costs. for 49 bucks you can talk to a doctor on your mobile or pc or in a virtual worksite like this one that i got to test drive. i was able to get a doctor to examine one of my moles with a
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derm cam in realtime and you can get your other vital signs. might see a picture of my mole. it looks big because the camera is so close. consumers want this on-demand medicine at a cheaper price. >> let's just say it's an investment so far. the future in our business is about having relationships with consumers and being a trusted source for them when they want to know -- when they want information about health care and when they want to access health care. >> yeah. $49, it's not yet profitable for them. what they're doing is trying to get mind share. companies like home depot, costco have all done it. can tell you it's pretty easy when you do it from your tablet. it's right here. so if you have something you know you've had your umpteenth here infection, time off work, password in, you can just do it literally from your tablet, from your couch, from your office.
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>> fantastic. >> you don't have to go venture out somewhere. >> wonderful. >> we were talking about this before though, right. the risk of like -- you know how it is with the internet. >> yep. >> you get a headache. go to web md and you have brain cancer. i'm too afraid to go to the internet because this is fatal. >> you are talking to a doctor. >> they will make you feel better? >> the board certified doctor. the doctor will tell you if you have a rash or -- in fact, john said his son had a back problem. he had been playing sports. so he did with it his son. had his son do it, talk to a doctor and the doctor said, you know, you you should take some time out. you shouldn't play. it's worse than a normal strain. so you get that reassurance. and at 9:00 at night it's a lot better and a lot cheaper than going to the emergency room. >> get that spider bite of yours checked out. >> it was disgusting. i'm not kidding. >> there you go. >> foul. >> okay. >> thank you. everybody looks forward to monday or at least tgif fridays, hope so. in the latest bid to get
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customers in the door every monday tgi fridays will be offering all you eat hemings of anyppetizer for $10 a person. all you can eat for ten bucks. that got us thinking. have you reached peak food? stop drooling over there, guys. all right? and will there be a feeding frenzy of other deals to follow? joining with us now is analyst bob darington. the story is spooky for a number of reasons. but from a stock perspective is it bad? if they do it, will chili's, dine equity, applebee's, will r margins?to do it, too, and >> that's a fair question. the thing that makes me nervous about a promotion like that is there is always a ripple effect typically, especially if something really proves to be successful. those brands that typically don't do as aggressive a promotion feel as though they may have to respond, which ultimately has a ripple effect across the industry. so time will tell. >> certainly huge risk and a gamble that tgi fridays is
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takeing on here. i don't know about you but i honestly couldn't take all of those ingredients and make food for $10. they must be losing money on these kind of promotional deals. to what degree are they hoping you're going to get a bot offal of wine. >> booze it up. >> are they bang banking on you getting the extras as well? >> mandy, it's a calculated risk on their part. i think this company has been sold not long ago. and i think we've got new management, a new plan. and they're clearly trying to shake things up. whenever you use the term in a promotion all you can eat or buy one get one, you certainly get the attention of consumers who respond to those kind of messages. >> are other consumer responding because isn't this an area of the market weakening despite all the promotions, bob? >> it has been very weak. no doubt about that. for a brand like fridays who typically historically its strength has been in beverages, adult beverages, and in appetizers, they're clearly going after the strength of the core business.
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so if there's anything that might get some response from consumers, this certainly seems like one that could. >> do we spell brinkers or whatever because of this? quickly. ten seconds. >> that's a fair question. my belief is they are a low cost provider. very good management team. very good operating trends. they will make a response, but i don't think they'll have to give food away to be able to respond fairly to it. >> bob, it's a pleasure, man. thanks for coming on. >> thanks, brian. >> thank you. all right, imagine waking up one more, logging into your bank account and finding a negative balance of $9 million with a note also saying "contact the u.s. district attorney." this happened to our next guest in her 20s. her amazing story's next. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you.
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so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. starts at 6:30 a.m. - on the (vo) rush hounose.und here but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. that's keeping you from the healthcare you deserve.. at humana, we believe if healthcare changes, if frustration and paperwork decrease... the gap begins to close.
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that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. big developments on amazon, so let's get straight to julia boorstin. julia. >> that's right, mandy. the ftc just wrapping up a conference call about its lawsuit against amazon for unlawfully billing parents for millions in children's
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unauthorized inapp charges. the big takeaways from the conference call, the ftc is focusing that it's stressed on requiring companies to get informed consent, particularly in the mobile space, noting that it's making a big push with its settlement with apple in january and its recent lawsuit against t-mobile. there were a lot of questions about whether google is next. the ftc wouldn't comment. the second key thing here, the ftc is not pursuing penalties against amazon, just refunds for consumers, saying that its main focus is putting money back in consumers' pockets and getting amazon to change so this doesn't happen again. now, we've reached out to amazon for a comment but have not heard back yet. this will be a very interesting lawsuit to follow, if it doesn't settle first. back over to you. >> and the stock only down by 0.7%, but we'll keep an eye on the story. thank you so much, julia boorstin. the former high-stakes poker queen of hollywood and wall street, up next. toffee in the world.de the best it's delicious. so now we've turned her toffee into a business.
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imagine logging into your bank account to find a negative balance of $9 million and a note effectively saying calling the district attorney. that's exactly what happened to our next guest who used to run poker games for wall street hot shots and hollywood's elite, including ben affleck and tobey maguire. molly bloom, poker queen, joining us now. we met a little while ago on our sister network, msnbc. amazing, amazing story. quickly, background. how did you get involved in this and how did it all come
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crumbling down? >> it was accidental. i was working for a real estate developer in los angeles. he told me that part of my duties would be to coordinate a poker game, and it was then eight years later, the feds, organized crime and a whole bevy of other -- >> and you were running these games and making millions. >> yes. >> there was nothing illegal about it initially. >> correct. >> what did you do wrong? >> i ended up taking a rake from one of the games. >> did you know it was illegal at the time to do it? >> i did. i thought it was a misdemeanor. i did not -- i was not advised that it was a felony, but it was still illegal and i still was breaking the law. >> tell us about these games. >> they were pretty incredible the amount of money that was changing hands, the type of people that were sitting at the tables. you know, it was just, from wall street guys to celebrities to iconic athletes. i needed to become friends with these guys, and did they abandon you when it all came tumbling down? >> that's pretty much how it went, yeah. >> no one stuck by you? >> no, but i don't know if there's a federal investigation,
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so i kind of understand that there's a lot of exposure there, so. >> listen, now you've got this boom in online poker. it used to be illegal. now it's becoming legalized. it seems like what was once criminal is now being decriminalized, but you paid the price. >> i did, and you know, i think, look, it's a very huge market, and it can raise a lot of money, but there's also an inherent darkness to it and a compulsiveness about it. >> what's it like to log into your bank account and see a negative balance of $9 million? >> not a good day. >> what are you doing now? are you interested in getting back into that business from a legal perspective? >> no, i don't think i do. it's a gray area and i don't see a lot of great opportunity for me there at this point. but you know, initially, it was an entrepreneurial endeavor and i recognized an opportunity and capitalized on it, so i'm just hoping to do that in the legal sense. >> cool. it's been a pleasure to talk to you. thank you so much, molly bloom. >> and by the way, probably one
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of the best skiers in the united states, right? you were on the u.s. women's team or close to making it? >> i was on the u.s. ski team and my brother was an olympic skier. >> good for you. >> thanks. >> looking forward to reading the book. thanks for coming on. we were down 180 points on the dow at one point. now we're only down 80 points. we'll keep watching to the close. thanks for watching. welcome to the "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth. it is a down day for stocks. this morning it looked like a very bad down day. the industrial average was down 180 points, just like that on the open this morning, but we have since come back from the debacle we saw this morning, although i will say, kelly, you know, about 30 minutes ago, 40 minutes ago, the dow was down 40-plus points. now we're starting to head lower again here. >> well, for a time, t

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