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tv   Power Lunch  CNBC  November 14, 2014 1:00pm-2:01pm EST

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happens with this bounce off that level. >> going to go back to ford. i think ford has a lot of things going in their favor. >> rfmd. >> why? >> unusual activity. >> have a great weekend. we will see you on the other side. "power lunch" starts now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> thank you very much. welcome to "power lunch." sports gambling in the usa is getting a very unlikely backer. who the funk? the commissioner of the national basketball association says just do it. how close are we from being able to bet legally from coast to coast on sports games? a soccer scandal, a major embarrassment for fifa. it is said to involve bribes,
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lies and cover ups. and index schmindex. word on the street is inactively managed funds are the place to be in 2015. they have not been for the recent years. we are going to ask a very simple but very important question today, why the difference in 2015? the nba commissioner adam silver if nothing else his own man writing an op-ed in today's "new york times" in favor of legalizing pro-sports gambling saying it should be brought out of the underground and into the sun light. silver cited a new jersey bill as an example for the appetite for online gambling and said congress should adopt a federal framework to allow states to
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authorize betting on professional sports. thoughts now from dave brigs. go to cnbc.com/vote and tell us if you think sports betting should be legalized here in the usa. they have this kind of gambling in many countries around the world, in great britain, in europe and elsewhere. why not here? >> i think that is what adam silver is pointing out. he cited london as an example where it goes on every day where people can make a vote or a bet from their couch or phone. why not here? i think we need to start realizing it's not that unlike the marijuana legislation sweeping the country once you see public polls coming around you realize why not regulate it and tax it and make a ton of money from it which i think the nba is all about. and adam silver has been a leader, ahead of the curve. >> let's go to sara who has
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mississippi state in the points on saturday. >> i don't know about that one. what strikes me here is that sin city doesn't have a pro sports team. you have the stigma it could be associated with gambling. is the hidden headline that nba will be the first franchise to have a pro team in las vegas? >> i don't believe the nba is near a franchise in las vegas. i think nhl will be first there. and also mls, major league soccer has looked at a downtown arena in las vegas. i think that is part of the discussion. as you see professional sports and gambling start to get intertwined it will be more difficult to make that argument especially with the involvement with daily and weekly fantasy leagues. the nba just brokered a four-year deal. >> the fantasy leagues are a big gambling operation, obviously.
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that is really what they are. dave, is adam silver likely to be out there on a lonely outpost here? what about the nba? what about baseball? what about ncaa basketball and football? are they likely to give him any kind of support? >> right now it looks like adam silver is very lonely out on that limb. no one has jumped to his support. the nba league office was contacted for comment about this and they said they have none. the nfl said they have no comment. roger goodell certainly wants no part of embracing gambling. you are seeing some cracks in that, as well. the nfl sent out broad guidelines on how teams can make deals with fantasy leagues. the new england patriots made small deal. major league baseball has a small deal with draft kings. adam silver clearly a leader on his own. >> we just saw three clips there. i don't know why they let them travel in the nba the way they
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do. there is so much traveling in the nba they should pack their bags. should sports betting be legalized in the united states? 70% of you say yes it should be. only 30% say no. a soccer scandal, michelle caruso-cabrera, fifa under fire yet again. >> speaking of illegal activity, the world of soccer right now and fans of soccer are aghast of what appears to be a white wash about deep corruption involved in the bidding process for getting the world cup. i'm holding a 42-page executive summary from fifa which concludes, which clears russia and qatar of any kind of shenanigans when it comes to the bidding process for winning the 2018 and 2022 world cups. they say there were a couple of things that occurred that don't look so good.
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ultimately those two countries are cleared. and the spokesperson reiterated those conclusions out loud yesterday at a soccer event that happened to occur in russia. >> probably some individuals that did go against the code of ethics. i don't know who it will be and if there will be open cases against those individuals, but the bidding process as a whole is not put in question. >> not so fast says the investigator that fifa hired to look into this situation. michael garcia is a former federal prosecutor. he gave them a massive report which we have not seen and he says the conclusions they drew contain numerous material incomplete and erroneous representations of the facts. he says he is going to appeal the decision. now, the international world, soccer is not huge in the united
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states compared to the rest of the world. when you look at headlines from all over the world people were quite upset. this is from mexico. they say fifa is a farce. we could have shown you dozens and dozens of headlines particularly galling to a lot of individuals who read the report is that they acknowledge within the summary says russia says the computers were destroyed so they couldn't do a good investigation but russia is cleared and the spokesperson says no one should be concerned. >> we are confident that our bid was very transparent and open and we did not commit wrong doings. >> the one thing i would say is if this 42-page summary is a watering down of the actual investigation report holy smokes because this reads with some really eye popping allegations and actually facts that are just
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unbelievable in some ways. >> the russians say the computers were destroyed so they can't dig in? >> they were rented. when they finished the bidding process they gave them back. the lease was over and they were destroyed. a lot of the e-mail accounts and g mail accounts were not available. >> maybe they are on personnel carriers that don't exist either. dominic chu now, "market flash." >> we are watching shares of ocwen financials on news it is not going to service mortgages that it was going to acquire from wells fargo. the two officially terminated that deal, new york's financial regulator had put on old over the new york department of financial services. as for wells fargo those shares up on today's trade. brent crude down almost 30% in six months.
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oil, dig, they follow oil down 25% and 19% respectively. xop covers the drillers and explorers. it is down 21% in just six months. jackie deangelis live to the where oil is recovering. >> that's exactly right. we are recovering today. let's make no mistake here. this is technical buying on the weakness that we saw especially yesterday. traders are saying fundamentally nothing has changed here in terms of supply unless we see opec make a move on november 27. the levels that we are watching wti trading over 75 but not far above it. brent crude not able to get over the $80 level. that is a key crucial level for the trade. you had a dollar index at the 88 handle today. it was very strong earlier in the morning, still not able to push crude prices down. that shows you the technical strength is going to continue. some traders telling me wti
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could go to 77. if we don't see the supply cuts we will see a major leg lower from here. back to you. >> thanks. just eight years after the first flight took off virgin america going public with an ipo. shares soaring on their debut. the airline sector, one of the top performers this year up 35%. check out individual players we are talking about up anywhere from 50% to 100% for the year of 2014 so far. phil lebeau taking flight for us today in chicago. lower oil prices certainly help. >> definitely help. what a rousing debut for virgin america. a number of people say it went up because the airline stocks are all going up. it does have advantages that the airline was talking about as it decided to go public. it has the youngest fleet in the industry. average plane is 5.6 years old. they have more planes on the way. 40% of the revenue comes from business travelers and has highest average fares when it
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comes to business class. that is an advantage that ceo plans to exploit over the next couple of years. >> we are a small player and we are comfortable being a small player. we are 1.3% of domestic industry. as far as where we go from now our focus will continue to be on l.a. and san francisco. this gives us an opportunity to look at hawaii and other markets we haven't had the opportunity to penetrate yet. >> the big routes for virgin america, trans continental ones. an in flight toast. you can watch live tv on virgin america and were watching the ipo on cnbc. they handed out champagne. virgin america has tough shoes to fill. the last airline to go public it was spirit airways in 2011. since then shares are up 364%. back to you. >> not a bad start, though. thanks very much and a cool shot
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on the plane, as well. here is a pretty telling chart for you. oil down 27% in a year. the transports up 27% in a year. jim iuorio, does it mean for transports to climb further we need oil to drop further? >> i think we do or oil staying in the same spot. certain things react better. you hit upon it with the airlines. i had southwest air for a long time. if i pleev oil is going to stay here that fortifies my thesis. if it settles above 40 i may add to that position. i like things sensitive to oil. fed ex stock looks pretty good, too. the key here, though, is we may see an oil bounce. it's a market position bounce. the fundamentals still align completely against oil right now. we still might see some upside
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because people are short. >> it is a relationship we will continue to watch. jim iuorio, thanks for the tip on the transports. snowy day in ohio. wait for this. thunder snow. thunder snow. cross another weird weather phenomenon off the list. maybe it had something to do with rokerthon. accumulating snows will be ongoing tomorrow afternoon all the way from the central plains to the great lakes. let's show you who will be impacted by a broad swath of light to moderate snow generally one to three in this zone. maybe a stripe of three to five up there. chicago i think you would be lucky to get an inch. be prepared for a snowy day tomorrow there. let's talk about how long this
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arctic air will last. if you look at tomorrow the jet stream will feature a big blocking high. that means the jet stream will look weird. as long as it is shaped like that it is going to continue to feed arctic air into the united states. that is certainly going to be the case tomorrow, sunday likely even monday. we will get another arctic plunge coming in, that is probably the strongest one we have seen. look at monday's highs. pick your favorite spot. it goes on tuesday and that gets all the way to the east coast. hopefully it will warm up soon. i think it will be about a week before it does. back to you. a whole new way to look at what is happening in hawaii. we have video of the lava flow threatening neighborhoods on the big island. a perspective you have not seen before coming up. kate rogers on the protection business behind the business of marijuana. >> we are here in las vegas at
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the marijuana business conference and expo. we are taking a look at how the men and women within the industry are keeping their cash safe. we want to know what you think. should marijuana be legal in the u.s. from coast to coast? head to cnbc.com/vote right now and let us know what you think. we'll see you soon. cocoa or eggnog?
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keurig citing bullish prospects for keurig cold. keurig you can see up by 1% in the day's trade. thank you very much. take a look at this stunning time lapsed footage from hawaii, molten lava from the volcano there flowing over a field. look how it creeps towards you over the course of two hours. officials confirm the lava continues to advance. although the volcano began erupting way back in late june so far only one home has been destroyed by the lava. picture this. an entrepreneur with a security detail accompanying him or her to the bank every single time they have to make a deposit. sound crazy? turns out not if you are one of
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the many marijuana stores across the country. kate rogers live in las vegas at one of the biggest conferences of entrepreneurs in the business. go to cnbc.com/vote. tell us about the security business. >> security is always a huge concern for these entrepreneurs. first of all, they have a ton of cannabis on hand and they are shut out of the traditional banking industry. they only accept cash, no checks, no credit cards. that is where a company like tactical solutions comes in wanting to provide top down solution. a couple of years ago they were transporting rare stamps and coins. today they are going for the green. >> i think the most inherent problem that you are going to have in this industry is that there is going to be regular pickups, deposits, pickups from the cultivation centers, not only with product, delivery to
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the dispensaries and then taking the cash from the dispensaries and getting it into a safe, secure location. tactical wants to come in and make sure that your pot shop is secure from the time it is being built to the time your doors actually open. >> we want to make sure that there is nobody coming in and assessing the thickness of the concrete, where there may be weaknesses in the building. it is just a matter of like this has to be a little higher level because of what is going to be going on in that facility once it's built. >> and until these marijuana entrepreneurs establish some normalcy within the banking industry that leaves more opportunity for companies like tactical solutions to come on in and capitalize. >> another offshoot of the marijuana business. let's lock in the vote. should marijuana be legalized across the country? more than 80% of you say yes. an overwhelming majority say
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yes, time to legalize marijuana in the u.s. >> i wonder what they are doing right now, those voters. >> they are voting. >> they are celebrating. one of the big battles this year, the stock market hitting record highs and debate overactively managed funds versus passive funds. passive outperforming this year as they have for several years running depending on how you measure it. could this turn in 2015? could this be the end of atm fees? we show you a new way to avoid paying the annoying fees. that's ahead. twhat do i do?. you need to catch the 4:10 huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge.
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they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. welcome back to "power lunch." we are watching shares of group on here in the 13 filings released by omega management. we know they have disclosed an 8.7 million share stake in group on. so a new position here. also a new 410,000 share stake in chinese ecommerce giant alibaba. some other notable moves here. sirius a reduction of shares. some big moves there. i want to mention that tiger
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management's 13 filing is out. and they have a new 1.22 million share position in alibaba as well. alibaba on heels of its ipo emerging as an interesting theme for large asset managers. >> trickling out. stocks are steady. a mixed picture with the nasdaq higher. if we zoom out we are on pace. get more on trading action, bob pisani on new york stock exchange floor. not big moves but big volumes. >> very narrow trading range. look at the s&p 500. this is called consolidation. the markets are at historic highs. you need a lot of catalysts and there haven't been a lot this week although earnings have been decent. side ways is good. gold is up but gold stocks again are outperforming. a lot of people saying good signs of a potential bottom when the gold miners start moving a
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bit. crude bouncing. production stocks doing better. they have been bouncing around. oil service stocks had their big move yesterday. of course, we got towards the close the halliburton discussions. long awaited link between shanghai and hong kong going to go live on monday night. able to own 560 stocks directly. look the activity here both up this week. this is going to be a huge change, the beginning of mainland china starting to open up to the rest of the world. maybe down the road they will be getting in the world indexes, more volume, more transparency. this is a good sign for china and world investors who want to get in on what is going on. >> this is particularly among consumers. there are a lot of smaller consumer companies you have never been able to invest in. the world is bigger than alibaba in china.
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>> thanks very much. despite the record highs 75% of active managers are trailing the benchmark. tom lee says 2015 could be one of the best because of the recovery in dispersion. the differential between the best and worst sectors. is he right? the president of lk balanced fund and chief investment officer at huntington funds. randy, explain why you're not able to keep up with the broader indexes and why people are going into etfs instead of your business. >> it's been a very, very easy year in which to get whips on. i gave a speech at the beginning of the year called white swans, black swans and chickens. it's been a market where we have been led by a lot of positives in the tail wind side of things with the fed being able to push interest rates down lower and at the same time we have had a massive amount of merger
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acquisitions and stock buybacks which have been about a half a trillion dollars this year. it made fewer and fewer companies in which to invest. it has been a big white swan for the market. we have the geo political situation with the isis scenario, things taking place in the ukraine and the ebola scare and then the quantitative easing ending in october. a lot of confusion among investment managers as to which direction they want to pursue. >> tom, i want to ask you this. aren't you worried about losing market share to some of the index tracking funds? is this going to happen again in 2015? >> i don't think it will happen again in 2015. it's been happening for the past several years and the trend has been that way because it has been easy to win that way. sector approach or doing it all with etfs is a chicken wave. >> but you put your money in it
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as the s&p 500 has hit record after record this year you are doing better than if you were in widely owned stocks that active managers like. >> that may be true in the short term. if you focus on longer term and own high quality companies for that period and look through short term volatility most statistics say active managers tend to keep up. >> i want to ask you about what was said earlier to us. we asked about the idea that active managers have to play catch up and that will create a rally going into the end of the year and maybe next year. he says that is totally consensus and not necessarily the driving force behind the rally. what do you think? >> i think most managers are going to try to outperform the markets. again, the market is segmented into so many different facets. if you look at the etf market
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there are so many ways you can participate in subsectors and subbenchmarks. it takes some real stick to itness to have conviction as to where you are going with this and continue to play that longer term game. >> thank you. good to see you. tyler? >> gold prices closing right now. let's take a look at where they and the other metals are doing on this day. there is gold up $24 an ounce or 2.1% to close at 11.86 and change. three out of four of those are higher on the day. silver up 4%. copper up about 1.6%. palladium unchanged. plattium up 1.2% at 1212.90. >> you see something that kind
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of makes sense. rates are going down. it's 2014 trade. but it was after we had higher yields on really pretty good data, university of michigan, solid preliminary read for november, solid retail sales helping the really weak september when you average it out. if you open up the chart to the 28th we have now had 14 closes, not days, trading days in a very tight range from 230 to 2.38. 30 year up. the last chart this is an intraday euro versus dollar. the only major currency closing up on the week. can't say it about the pound or the yen. the euro maybe a little too short has many traders buying back. >> have a great weekend. say it ain't so. we have been down this road before, the twinkie. an american favorite thrown into doubt once again. what is going on?
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>> tyler, twinkies as of last summer are back but now they are maybe financially better than ever. that's good news but piquing the interest of some rival brands. "power lunch" is back in two.
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welcome back to "power lunch." check out shares of puma bio tech after the company said cancer drug failed as primary treatment for cancer patients. down by about 7%. rchlths take a look at this. only two days after the terrifying incident with the window washers at one world trade, a very similar story now from houston. a window washer left dangling 34 stories in the air when a motor on his scaffolding failed. the worker managed to climb up the scaffold and that is where firefighters arrived on the scene and were able to pull him to safety. two very scary incidents. luckily we are happy to say both had happy endings.
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>> crazy week. twinkies and ding-dongs on sale. hostess brands is looking for a buyer. it feels like just yesterday it was bankrupt. >> it does feel like it. it was about two years ago almost to the day that a judge ruled hostess needed to liquid ate and then we did see a white knight buyer that now may be attracting a billion dollar valuation on the company. apollo and metropolis and company bought hostess out of bankruptcy. the price tag if it is put on the auction block next year could reportedly fetch north of $1.5 billion. darren metropolis with his father, dean, is part owner saying the firm has been receiving inquiries from potential buyers that he described as primarily strategic buyers. saying the group is laser focused on growing the business.
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a sale of that size would be quite a cap stone following the multi year turn around. fortune reporting when it was forced to liquid ate in november two years ago. the company hadt $900 million in debt and losing more than $300 million a year. $1.5 billion for this company would be quite a testament for this business. they have a lot of labor obligations and a lot of debt on the company. there is a lot that goes into calculating that number. it is very stunning development considering where the company was a short while ago. >> i was always more of a donut gal myself. >> thank you very much. the way stuff is made now in the usa is changing dramatically. 3 d printers printing from the clothes on your back to the vase you put in your forier.
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an inside look at how it is made and sold and that vase was made by a 3 d printer. guess what article of 3 d made clothing our model is wearing today. we have all the dimensions coming up after this. would you wear 3 d printed clothing? you know where to go. cnbc.com/vote. look at that thing getting made there. amazing. (vo) watching. waiting. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. ok, if you're up there, i coulsmart sarah.elp.
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i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today. what happens when cutting edge technology meets the forefront of fashion? one brooklyn based architect turned fashion designer was interested. would you wear 3 d made clothing like this shoe? the voting has begun at cnbc.com/vote. 3 d printed clothes. did you know that was a thing? >> in 2007 i was talking about this as a production technology
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and everybody thought i was crazy. my name is francis. i'm a designer. 3 d printing is an additive process. you build up material layer by layer. usually you make a drawing as a designer and make this stuff and lose something. it is exactly what you draw. it is really surreal like seeing something out of your favorite movie like seeing a dinosaur from jurassic park. we recently partnered with adobe to produce a collection of shoes called molecule. the really special thing about it is there is a continuous gradient of color. that is where we are achieving material effects that we couldn't do before. not only could we not do 3 d printing but with any type of manufacturing. digital files created by our studio and printed. those parts are then shipped back to new york where they are
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being finished. all of the support materials are being taken off, cleaned, prepped and ready for assembly. it is a really exciting time to be in the industry. and francis is here to show us some of his wears. this is a shoe that no one would really wear, maybe mandy would wear this. it has a high enough heel maybe for mandy. this is rigid and a polymer. you woopt put this on your foot. >> you could. we are working on versions where we are fading and go from a hard acrylic to rubber. >> most of what we are seeing here the fluid is in the machine and based on a design and it creates this? >> imagine droplets of a plastic that you flash it with light and solidifies. >> maris is our model. good to see you there. we asked whether people could
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guess what maris is wearing that was made by a 3 d printer. i wonder what people would guess here. you be good at home. it's this belt, right? >> yes. >> is it blastic? >> it's metal. >> excuse me for playing with your belt. first time i have been able to do this on television. it is wonderful. it is a polymer. it is quite chic. it's nice. >> it is stainless steel. >> each piece of this is made by -- you assemble this. you like this. >> i would buy this. >> stick around, we are going to get your reaction when the poll closes. to advance the discussion or maybe pull me out of the ditch let's go to sara. >> i will rescue you. we will talk about how to invest in all of this. it has been a pretty tough year for the leading printer manufacturers. as you can see down significantly this year. as adoption expands is there
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money to be made in the 3 d space? both covering these stocks but have different views on how to invest. first to you, troy. when you see fashion being 3 d printed and shoes and food and organs and everything in the future does that mean you should be buying these stocks or is that more industrial 3 d printing? >> i am definitely a big bull on the space. i think it is one of the best growth markets out there. i think there is a big difference between consumer 3 d printers and consumer applications for 3 d. the difference is consumer 3 d printers are low end. there will be a lot of competition, really hard to make money in that space would be my guess. the industrial applications, mass customization using 3 d printing. i definitely try to push investors towards the industrial side of the 3 d printing space. >> how do you do that? which stocks do you own?
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>> so in that space metals is probably one of the fastest growing segments due to aero space and health care applications. there are two international stocks there. stratest does a great job. >> want to get the other side of this argument. you are the bear or the cautious one. what are you warning about 3 d stocks? >> first i want to point out that there is a difference between a good industry, a good company and a good stock. i think this is a great industry. it is obviously a growing industry growing better than 20%, probably will grow at double digit rate for the longer term. when you look at companies across the industry, troy mentioned stratassist. when you look at the stocks we have to talk about valuation and the long term, potential to grow earnings and sustain margins. there is a lot of hype in these stocks. a lot of it has come out this
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year. there is hype around the ideas of everyone owning a 3 d printer in their home and the idea of mass production and using 3 d printers to make everything from cars to planes and everything else. and there is increasing competition from companies like hp, epison. >> which is why it has been such a momentum play. thanks to you both for your opinions. tyler? >> let's lock in the vote. would you wear 3 d printed clothing? there are the results. basically a split. 51% say no but half of people say yes, basically. these shoes, the jury is out. mandy might like these. they actually probably fit her. they are nice little platforms. nice little things. folks, thanks very much. keep up the good work. atm fees certainly a waste of cash. one startup has come up with a way to avoid those pesky charges. you'll find out how next. eallyo hidden fees on savings accounts?
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pair of kayakers paddled into a scare. the hammer head followed them for several minutes before going his or her way. hammerheads, by the way, are indeed man eaters. >> that is terrifying. the next time you use an atm not associated with your bank would you watch an ad instead of paying the fee? our next guests are hoping you would say yes to that. they are the co founders of free atms which has launched in new york city, more than 25 of them and plan to expand to other cities. i take out my card and swipe it in the atm and an ad comes up catered to me based on how much money i have? >> demographic as well as geological location. you will see a digital ad running on the transaction screen of the atm. the transaction screen is a ten-second advertisement thereat
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occurs in transaction while your transaction is processing. we don't hold up transaction time. the screen that sits on top we take advantage of all of the foot traffic in and out of a venue. >> talk about economics behind this. who gets paid on the ads? >> after free atm takes commission for serving the advertisement we split the revenue between the host of the atm and the operator who normally gets about a dollar. >> so what has been the consumer reaction to this so far? >> they love it. >> one question is where. >> everybody hates bank fees but if i had to watch an ad and it delayed me i would almost rather pay the bank fee as much as i love the advertising model being on television. >> it only makes sense that we do not hold up transaction time. we are trying to provide convenience to the consumer. >> you are trying to disrupt atms which is the oldest story
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in the world. what about mobile payments? isn't that a threat to you? it is easier to just whip out your phone. >> a lot of people think mobile payments are easy but a lot of steps have to occur in order to pay for a particular item in the store as opposed to cash people just pull it out of their pocket and pay. we don't see mobile payments as a threat. consumers still need to use cash for low ticket items. it is estimated that consumers use cash for more than half the transactions below the price of $20. in other words, cash is here to stay. where are you expanding? >> all up and down the eastern seaboard we are trying to follow the route. we are looking to find consumers. >> mega bus route? >> all the way down. >> i guess it makes sense. good luck to you both. what sort of advertisers are there? >> exchanges right now so we are partnering with a company where we are pulling down ads in a
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real time basis so we show inventory and indicate what type of venue and demographic and they show ads to our platform. >> we have a great story on cnbc.com about your business. tha thanks for coming in and talking about it in person. >> we have a magic number on the show. a number that could help predict where the market is going. we are also very lucky to be joined again on our show by one of the sharks talking about what he calls the new cold war. you can also tweet us about what you think about those ordering tablets on your restaurant table. we really want to know what you think about them. that is all coming up. also, next on "power lunch" is this. >> coming up, two childhood friends quit their corporate jobs and then wake up and smell the coffee literally. >> this is something that i can do as a career. >> escaping the cube next.
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coffee bar. >> what are you talking about, a coffee shop? we paid for you to go to college. >> we're the co founders of rook coffee roasters. >> i used to be in sales and marketing. >> i used to be on wall street. i worked in risk management and trading for about nine years at morgan stanley. i just hated what i did. >> i worked for yahoo for a number of years and i was like i think i'm done. >> i was so jealous. i was like i got to quit, too. i moved to san francisco. >> and i travelled. >> i was in coffee shops thinking this is something that i could do as a career. >> and then i had a lay over in san francisco. he opened up about this idea about running a coffee business. i said let's go for it.
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>> we went to 100 different coffee shops, big production facilities gathering information, building a business plan. >> to start the business we had to fund it ourselves. to start a 300 square foot hut was doable. >> in the first three months it was extremely slow. another month and i was like we have to hire somebody right away. it was like 13 people inside this little place and there was just me and like a friend there that was like do you need me to help out and like ring somebody up. i was like yes. >> rook is unique. we do every cup to order. >> i am the store manager. our customers hear they went to costa rica and picked out this one phenomenal coffee. they were like, i'm in. >> we started with a little
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roaster and now we're looking for a 70 kilo roaster. we have five stores. i will never be able to go back to corporate job. >> ever in. never. >> how cool is that? their coffee gig seems pretty safe. americans drink about 400 million cups of java every day. studies indicate about 34% of us
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favor a fresh gourmet cup. the star of the week, the chart of the week, new seven year high for the u.s. dollar. if you are watching that relationship, strong dollar, weak yen over 116. that's what you should be watching. >> you think about to a month ago on the 15th of october that was the low point for the market. and since then it has been nothing but higher. that will do it for another week of "power lunch." >> "street signs" begins right now. ♪ >> if the stock market can top one number today it will make this one of the most powerful rallies in 20 years. i know the market is not doing a lot right now but there is a number you need to focus on. we will have that for you coming up. plus, a trend in housing that should make you very nervous. and we tell you about one industry that could be the greatest money maker of all for the next decade. >> before we get to your magic number here is a special one that i pluckut

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