tv Street Signs CNBC November 24, 2014 2:00pm-3:01pm EST
2:00 pm
any federal troops and the national guard has been in more of a sort of backup, sort of a posture from what we have understood. and a lot of the federal forces really looking at protecting federal installations. >> all right. scott, thank you very much. we'll be following that story throughout the afternoon. meanwhile, folks, that will do it for a monday "power lunch." >> "street signs" starts right now. well, stocks finally take a pause but gasoline prices don't. they are showing a huge recent move. we'll tell you what that is as both the political and business world are rocked by sudden high-level departures. hi, everybody. brian sullivan here. those headlines, plus the man you probably know as cliff clavin from "cheers" is here. we have a really good show ahead. i'm mandy drury with really great news. if you are one of the 41 million
2:01 pm
people hitting the roads this week for thanksgiving, you are going to pay on average $2.81 a gallon to fill up. that's down 40 cents from a year ago when you paid $3.28. and pump prices have now fallen for 60 consecutive days. that is why the longest streak was in 2008. >> you are like the santa of gasoline. >> i am. i need my hats and ho ho ho. a big week. oil ministers in opec gearing up for a big thanksgiving day meeting. the big question, will saudi arabia cut production to stop prices from falling any more? we'll bring in bertha coombs for the latest on this. >> this is a big week for opec's credibility. probably the most important meeting they have had since the financial crisis. they need to decide how much to cut oil. oil prices today closing in there. we had wti crude a little higher
2:02 pm
than brent crude. brent is the international price for oil. and brent crude is very much in bear market territory year to date. opec producing way more than the world needs at this point. and with other players like the u.s. and russia, out there producing as well. now opec doesn't have as much influence. only 40% of the market. they needed to cut somewhere, at least a half million barrels a day analysts are saying 1.5 million would be more credible but that's not likely. some reports from russia say russians are willing to cut 300,000 barrels a day if the saudis and the rest of opec cut. but when asked about a cut at the meeting this thursday arriving in vienna, he says, you know, we've had oversupplied markets before. that's not unusual. >> thank you very much for that, bertha coombs. we'll bring in john, our cnbc contributor and founder of
2:03 pm
capital bank. you are not expecting the counter production. >> i am not. there's been a lot of shuttle diplomacy but i'm sticking with it. it is just not there. >> yeah, but you're getting the pressure from iran, do you think that's worthless? >> i do think it's worthless because the saudis, how much is the saudis making a statement to iran or russia to make them pay for what they have done in syria in their backing of assad. i don't know if that's true or not -- >> but there are two ways to look at it. saudi arabia is doing a favor by hurting russia in a way, or saudi arabia is not hurting us by hurting the shale revolution. >> i think what they have done in the past is to effectively battle for market share or
2:04 pm
squeeze out the higher cost producers. if they cut it again, that's a million and a half barrels a day less and it will support our u.s. fracking sin city tuti its. >> how does the extension of the deadline and the nuclear talks affect this outcome? >> that was actually supportive for prices because there was a sense that if a deal was struck and was looking good at times over the past couple of months here, that a lot more oil would be hitting the market. that opec and the saudis would have to accommodate the oil. now they stand there in the sanctions regime long er. >> i will be the grinch of gas leap because in september of 2010 we were in the low 70s for oil. in september of 2011 we were in
2:05 pm
the mid to high 70s for oil. each of those times, four to five months later, we are back above 100 a barrel. is that going to happen again this time? >> i'm going to say no. >> why is that? >> because this time it is really different. and you really have to look inside yourself if you offer it, but it's a supply dynamic. you talk about the fracking production, but what is not talked about is the major pipeline to bring massive amounts of crude oil to the gulf coast getting it full at times to bring saudi reports to the country from 1.5 million barrels a day earlier this year to under 900,000 per barrels a day in the most vent we have. that's what is different this time. we jumped the shark as you like to say about different things but this time there's a wall of oil hitting the market and make
2:06 pm
on peck account for, make on the opec account. so what does all this mean for you, dear consumer? as mandy talked about herbalier, pump prices are 40 cents a gallon lower than a year ago, and that is going to put billions more into your pocket collectively, not individually. but not everyone can be a winner even though this will benefit the retailers. we'll bring in the former ceo, tom, who is not going to win this holiday season? >> well, i think the apparel retailers will be losers, but if you sell everything ready to wear like everybody else, you could be a loser. the apparel winners are those in engaged in activewear. >> brian is starting off this
2:07 pm
grinch signs of "street signs." i'm going to take a look at half full sympt full. gas leoline prices are down for many americans and you have positives on behalf of the consumer. things aren't great, though. you'll see companies like best buy taking on amazon head-on. i think doing the right thing, producing positive same store sales, they do great. i think people slow ly will do well. and then exciting niche companies. i like the towel shop that had issues that they are working out of. floor and decor is about to go public run by tommy taylor who is the lead guy at the home
2:08 pm
depot. and we have some in the consumer fund producing double-digit sales selling ties. >> those are great, they are private. is there any our viewers can take advantage of as well? >> yeah. there's a whole bunch of them. starbucks is still an excellent and i also like home depot and lowes. carmax will produce solid results over time and those are the companies i want to be exposed to. >> there are a number of big bucks ready to be spent on
2:09 pm
friday. my question is, will people go, tom? >> one of the greatest myths in the world is the notion of black friday. the need came about because that was the day retail ers did well. i looked at the result of black friday sales and the margin was down 25. that's the pattern for most retailers, so the answer is it doesn't matter. but for kmart, i think kmart is going to be not with us much longer. i don't think -- >> when you say that, are you talking about sears, the parent company, or just the kmart brand? >> i think they are both going into the gutter. kmart is slowly after sears with real estate left there but that's it. >> you don't think anybody will
2:10 pm
try to buy them to turn it around? >> there's stupid people out there, but i can't imagine anybody is that stupid. >> well, the old retail axium, i'm losing money in everything i sale but make it up in volume. quick question, tom, when you are at gas pumps, did you see an increase in sales. in the cop summer business, you sell the interest rates and gasoline prices. and the business-business, not so much. two shocking departures. what happened at united technologies and do the investors need to be worried? and later, the one stat about the markets that will literally blow your mind.
2:11 pm
2:13 pm
welcome back. we'll look at the defense contractor stocks. they are all higher today. now this does follow the surprise announcement that defense secretary chuck hagel is stepping down. actually, being booted. president obama accepting hagel's resignation at the white house today. senior defense officials tell nbc news hagel was forced to resign because the white house lost confidence in the ability for his role at the pentagon. hagel will stay on until a
2:14 pm
replacement is found. okay. another surprising departure in the corporate world. the ceo of united technology suddenly announcing he is stepping down. let's bring in jeff soddenfeld. jeff, does something not smell quite right here? >> something doesn't smell quite right here. he was supposed to be presenting before investors in just a week. this was all confirmed. for him to suddenly disappear, it's like when ed whitaker was about to make a presentation in rapid city, michigan, and said he's not planning on retiring for quite some time. this is two years ago, now three years ago. gm, suddenly he was gone and in both cases the company tried to present it. it's a routine recession that we saw with citigroup this time. and we talked about this at this time last year at about walmart when they had a shock surprise succession. nobody expected this and we
2:15 pm
don't want a surprise analyst, employees, shareholders, by this kind of news. nobody saw it coming. >> this doesn't happen. it's one of the biggest companies in the world. it's a dow component. these companies will plan out years, i'm going to step down in 18 months. these abrupt resignations just do not happen with companies of this size unless there's some fire behind the smoke. and i don't necessarily mean that in a bad way. >> on every level, brian, this is not a -- this is an excellent board. this board is filled with very sophisticated professionals, ceos in there, and it's as good a board as you can get. if they have moved and move this quickly, there has to have been some reason. if they are stressing it's not the financial performance, then they are leaving open a whole door of conduct issues they are not saying it isn't. for them to be that specific, if it is an acrimonious departure, which i believe it is not
2:16 pm
otherwise they have to file a fcc explanation, but anger could be demonstrated over something happening in the company, we need to see the filing. but that investor should care. if it's a personal conduct issue, i don't know. but you have to wonder, we'll open the speculation they just gave him last year a 26% pay increase. for them to say, oh, he's retiring, he's being replaced as chairman by a guy 15 years older. the average age of this board is roughly 70 years old. >> yeah, united technologies chief executive steps down without any explanation. that is the headline of the financial times article that recently came out, pretty much every media organization and financial media including us is left speculating. does united technologies owe everybody more of an insight into what happened? >> why isn't this smooth succession of him staying on a as chairman? why wasn't an outside search done? and why wasn't the job done --
2:17 pm
he's an excellent cfo at the prior company they bought yet his whole career he's been a cfo with no operating experience. this is a huge complex global operation, so yeah, on every level and dimension, you wonder why is this the successor and why is this happening this fast? why is he not staying on the board? why is he being replaced by somebody a whole generation cohort ahead of him. he's four times retired now. you have to wonder, why is this happening? a big defense contractor, this has added concern to us tying in with hagel. we have a perfect successor in ash carter. he should have had it before senator hagel did and before lee i don't kn
2:18 pm
leon panetta did. he's loved by both parties. a brilliant guy who is a professor at yale. otherwise he's a good guy with a degree from yale. >> jeff, thank you. we certainly do need an explanation. one new report says facebook and twitter are a giant waste of time and money for corporate america. sounds like a really good debate. and we'll have it for you coming up. but first, everybody does know his name. mr. cheers, john rattsenberg is here and you can see him in a couple seconds. stick around. it's monday,
2:19 pm
a brand new start. with centurylink visionary cloud infrastructure, and custom communications solutions, your business is more reliable, secure, and agile. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. it's monday,
2:21 pm
with centurylink visionary cloud infrastructure, and custom communications solutions, your business is more reliable, secure, and agile. welcome back to "street signs." the rumor mill was running earlier today that carl icahn was involved in ibm. i can tell you that mr. icahn has no involvement in ibm whatsoever. shares have been moving higher. ibms problems have been well
2:22 pm
documented over the last few months. the stock has certainly had a slide. there it is, intraday, it was up throughout much of the day, but some steam does appear to be coming out again after we can debunct the rumor. thank you very much, scott. if it is made in america, making jobs in america is the new idea behind the buffalo based made in america store partnering with a star this holiday season, we'll tell you his iconic character's name, cliff, and he's joining us now. you are not a paid endorser but a partner in the company. you are not saying, buy the shamwow, you really believe in this. >> i have a shamwow. >> who doesn't? >> well, yes, i actually believe
2:23 pm
in america. i have a love affair with this country. and manufacturing is the backbone of who we are. it's in doing this, trying to get people to buy things made in america, that's our strength. you'll give your neighbors jobs. if you buy a t-shirt from china, you think you're getting a deal but your taxes go up because you just put somebody out of business. so that t-shirt is more expensive. >> i think it is great to be a conscientious buyer. people can hear all the arguments to give your children and this kind of thing, but when it comes to paying, do you think they will do more? >> well, they are realizing that our schools aren't as good as they used to be. our roads and police department, if jobs go overseas, if you're
2:24 pm
not buying american-made products, that's the reason your community is fraying at the edges. and i think that's becoming more important to people than the price of it. because it's actually more expensive. >> and you're exactly right, amanda, to your point, where does the downward spiral begin, correct? you say to someone, well, i can't afford a made in america product. well, i lost my job at the factory. why did you lose your job at the factory? because it went to china. in reality you're buying something that in some ways put you out of a job, but you have to get the message out. we have an obligation as citizens, i think, sometimes to help to pay a little more to help our neighbors. >> and people don't realize it, but you're helping the environment by buying american-made products because we have agencies that oversee us to keep the rains out of china. so when you buy that pair of sneakers or whatever it is, it goes right into the river and the ocean. as a matter of fact, one-third
2:25 pm
of california's air pollution comes from china. now, why, if you're an environmentalist, would you buy anything from wchina? >> i totally agree. john ratzenberger's made in america gift box. what kind of things can we find in here? >> well, let's open it up. this is a children's box here. >> i really do have my santa's hat on. >> sometimes you want to go where everything is inside the box. >> that has a catchy tune. >> this is pick-up sticks and building sets. no electronics for the kids because that's where invention comes from kids tinkering. so we go with that philosophy, too. >> kids these days are into computer games and don't know how to fix stuff. >> not at all. when is the last time you saw a kid -- building a freehouse or fixing their bicycle. we have a slinky.
2:26 pm
everyone knows about the yo-yo and jelly beans. so this box -- that's good for a year. >> and how much is a box like this costing? >> $50 to $60. >> that's certified and made in america. >> absolutely. even the box and the packaging here, the blue packaging, which is environmentally sound. you can use it for compost if you want. >> are you a big composter? >> as a matter of fact, i invented that product. that's a whole other story back in the '90s. it was just coincidence they are using it for packaging. >> some people say we compost between 2:00 and 3:00 every day. maybe we have something in common, john, who knows. do you get main attraction to in? >> oh, yeah. >> to mapn did's point, you hav to realize it's more expensive on the back end. do you think we'll be able to convince people? >> we have to otherwise we are a third-world country.
2:27 pm
and that's what people are starting to realize. wait a second, my kid is not handy. they can't use tools to fix anything. that's because your neighbors don't know how to do anything, but growing up in bridgeport, connecticut, a big factory town. well, everybody was handy and knew how to make something. so it's just very important for our infrastructure. like today you can't find welders. >> what if you want to go to college or get a degree as opposed to do plumbing. >> you can do both. i went to college but made my money as a carpenter before i became an actor. >> you have to leave it there. we applaud your message. good luck, so people know ahead of the holiday season, you have a special made in america gift boxes for women, children and men. there's a box for everybody. >> madeinamericastore.com. >> thank you for coming on "street signs. "thank you, good work. >> thank you, john.
2:28 pm
>> if it's for buffalo, have a salt dispenser and shovel. what do wood floors and cowboy boots have together? we are back with that for you. plus, a shocking stat on the record rally. look, he brings lollipops. orange or red? >> i'll take orange. >> red is a flavor. "street signs" is back right after this. my name's louis,
2:29 pm
and i quit smoking with chantix. i had tried to do it in the past. i hadn't been successful. quitting smoking this time was different because i got a prescription for chantix. along with support, chantix (varenicline) is proven to help people quit smoking. the fact that it reduced the urge to smoke helped me get that confidence that i could do it. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some people had seizures while taking chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix or history of seizures. don' take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. decrease alcohol use while taking chantix. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. i love myself as a non-smoker. ask your doctor if chantix
2:30 pm
2:31 pm
there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business. let's take a look at the markets. the nasdaq is up by 36 points. this is the best day for november for the nasdaq. and trading bo the record close, not yet above the intraday high, but we have been following this here on "street signs." >> as we talked about the bears repeating, get this, 2,056 is the five-day moving average. if we finish above that level today or down a point or two, that will be the longest stretch above the five-day moving average since 1928.
2:32 pm
let's repeat that, it would confirm that the s&p 500 is in the middle and part of the nasdaq, i know jonathan just looked at the s&p, it's in the middle of probably the greatest 30-day rally in the history of the u.s. stock market. >> it's incredible. mind you, when you say 1928, we all know what happened after that. >> but to jonathan's point, a lot of data only goes back to 1928 due to certain types of records. but a lot of the stuff we throw out, like 1928, that was also a boom year but you never know. but this is and amazing rally and nobody seems to -- >> that's because it is so incremental of melting off instead of the big spurts up. it's creeping up on you almost. let's do something we do every single day at this time. it's "street talk." number one, first stock of the day is lumber liquidators. >> very bullish. their target is $85.
2:33 pm
that's about 30% upside on lumber liquidators. >> denny's is getting the upgrade as well. >> the restaurant is upgrading to a buy with growing confidence and part of the remodel program denny's has undergone and favorable family dining trends. fair estimate goes to $11 a share up 15%. >> next up is kennametal. >> sell, sell, sell. they cut their target rating from 35 to 46. so the target is $3.80 below where the stock is already. >> and irvine california-based bootbarn built itself as the largest western boot store. >> where would that be based? i would probably not answer irvine, california. i would say orange county. either way there, you go. 500 million market cap, recent ipo, analyst comments rolling out, overweight buy or outperform at wells fargo.
2:34 pm
jeffreys and jpm are the highest targets i have seen. stock is at $20.28. you can do the math. okay. here's an update on the name we brought to you last thursday. i think you guys talked about it friday, correct? >> we did. >> mol global. molg is the ticker. this is the under the radar name. malaysia-based, but deutsche bank came out with a positive rating and a $12 price target slammed on friday. it was halted today with the stock up a bit now, but i want to let you know we reached out again to the deutsche bank analyst to say come on, defend your call. he's based in hong kong in his defense and politely declined. but we want you to know we're paying attention and the stock got whacked and went to hear from them on their call and what maybe happened. >> and it could be a recent ipo. the recent ipo is now leaving under investigation of a few things we need answers to. >> by the way, one of the richest men in asia is one of the founders of the company and
2:35 pm
they are also the buyer of friendster. remember friendster? and now a fundamental and technical perspective. today we'll talk apple. todd gourdman is in the house. andy hargraves on the fundamental. andy, you are not negative on the apple but probably the least positive analyst we have seen out there. any trouble spots ahead for t apple? >> we are seeing the potential lack of iphones beyond the 6 cycle. we don't think that either the watch or the apple pay or any other products can replace the hold that creates in the growth profile. >> what about the technical side, todd, do you like apple? >> i do. it's up seven of the last ten days. being a simple trend following type of guy, if we look at where
2:36 pm
apple started back in 2009, it's riding the itunes tracks so to speak. up towards the upper end of resistance, looking at the current rate of ascent should be around $125. so we're trading at $118 to $119. we have further to go before we technically have met resistance. then flipping down to the daily chart i mentioned, we are up seven of the last ten days with a little bit of a breakout near $110 in november. i would like to try to buy a little closer to that, try to buy as that broken resistance now serves as support on the way to the $125 level marked up there in orange on that chart. we are seeing much better participation and consumer cyclicals moving to the topside of technology. this is a better stock market from the sector point of view, one of the strongest markets since 1928. >> very quickly, i want to go back to you and get one more question in for you at least. because they are now becoming increasingly a phone company, do you think there's a risk to
2:37 pm
margins? do they deserve, i know the market evaluation is low compared to market names, but they don't have a search like google does. >> yeah, as a hardware company you are at risk for competition eroding your margins. they have done a fantastic job and it is a software company as a hardware company. don't expect them to go higher either. >> really pleasure to have you both. talk about the numbers people are interested in. >> maybe tomorrow's under the radar name. be sure to tech chout the talking numbers with yahoo! finance. so, how do you play this continuing but quiet market rally we have been talking about? we have market experts with advice for your portfolio. plus, dave & buster still talking about social media after last week. we'll talk more about that debate. stick around. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,
2:38 pm
tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in tdd# 1-800-345-2550 or scale out you can make your move, tdd# 1-800-345-2550 wherever you are. tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 tdd# 1-800-345-2550 call 1-877-729-2379. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪
2:39 pm
tdd# 1-800-345-2550 your go-to for trading know-how. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud. today there's a new way to work. and it's made with ibm.
2:41 pm
happening in the markets, brian. >> i think we'll look up mml global because i misspoke which is a nice way to say i was wrong. mistakes were made by me. it is still halted. our chart showed it up 9%. but mistakes were made by me. mol global still halted and we are still trying to get the and list on. >> we really are. as you can see, all three indices are in the green. and i think for the s&p it is the 12th up day in 14. 40 stocks in the s&p 500 are hitting 52-week highs. can the rally continue? and how should you continue to play? jonathan murray is managing director at ubs. great to have you with us. jonathan, we're sitting at the new highs, but as we were saying a moment ago, it doesn't feel so celebratory because there are such incremental moves here or there. what catalyst do we need to see
2:42 pm
to either break us out to the upside or give us a little downside for those that maybe have missed out on the rally? >> yeah, maggie, i think it's a really good question. investor who is had thrown in the towel back in '08 or '09 are waiting to get back in because of the sell-off in the fall just happened so quickly. and i think that is the way these markets seem to work. look, i don't think we're terribly over valued here at around 16 times earnings, but we are certainly more expensive than down at the bottom when trading down to 12 times earnings. so our ubs house view is pretty much a continuation of the same slow, steady growth. >> it sounds like you would like to see a dip, jonathan. >> absolutely. i always want to see dips because i like buying things on sale. and right now it's just become a little bit harder to find good value out there. there are opportunities, certainly, but they are becoming
2:43 pm
fewer and fewer. >> okay. one of the best, jim, ways to identify and one of the smartest ways to identify the evaluation of a stock is through free cash flow. fcf cash flow yield, you like to look at that, so on that level how is cash flow yield for the overall stock market right now? >> well, the cash flow you have for the overall market when compare it to the alternatives being bonds look pretty good. if you look at the long-term basis, it's less attractive than on a five-year basis with a 6.5% return out of the u.s. but that isn't going to get in the way of the market over the next year. we still think we'll have pretty good momentum as both technical and fundamentals are constructive for the u.s. equity markets. >> jonathan, i'm looking through your notes here and you say you suggest investors look to play a turnaround in europe. so one assumption here is you are expecting a turnaround to be real in europe. and number two, how do we play it? >> yeah, maggie, i think that europe is a value. with fewer and fewer values to
2:44 pm
be had in the united states, it's important for longer-term investors to perhaps consider things overseas that haven't yet turned. and with the ecb and draghi trying to undergo this on qe and methods we had done to help our economy, i think perhaps taking an initial position in europe helps. here's the key, with the currency weakness over the dollar, i think it is really important for investors to have a hedged approach to that european exposure. many investors are buying the non-hedged etf for europe ticker ezu. there's another one out there that is good by wisdom tree that you should talk to your financial adviser about. it's a way of playing the european turnaround in a hedged way so it isolated that currency exposure. that ticker is hedj. >> jim, are you bullish or bearish on most of europe? >> we have reduced our recommended exposure to europe and pulled that money back to the states. we would rather that exposure to
2:45 pm
growth here. looking for value plays, we would rather look at the energy stocks in the u.s. which have gotten beaten down over the last couple of months over the fall of oil. they are discounting so many/75 barrels of soil. we have to barbell that with something that has a better long-term growth potential. >> beat up down is one way to put it. out to the wood shed is another. thank you for joining us on this monday afternoon. >> thank you. coming up, is twitter worth the trouble for big companies? we're going to dig into a rather controversial new report on social media. yeah, plus one man who is making money, lots of it, selling marijuana-infused edibles like brownies and gummy bears. munchies, anybody? stay with us. (vo) rush hour around here
2:47 pm
starts at 6:30 a.m. - on the nose. 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.
2:48 pm
i'm just looking over the company bills.up? is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business.
2:49 pm
a new study says don't tweet and don't bother with facebook, so what does water? a surprising study, julia. >> absolutely, mandy. this new study finds that brands posted on facebook and twitter are not so effective. a vast majority of the time they are not seen at all. brands should stop making facebook the center of their marketing efforts. the study finds facebook and twitter only reach 2% of fans and followers. on average, less than .1% of fans and followers interact with the posts. and facebook just said in a blog that the content will see a significant decrease in distribution. now, all this conversation is not about paid posts or ads. so essentially facebook is giving brands more reason to advertise instead of just using free tools. now forester says brands should invest this their own sites saying fans who want to stay in touch with a brand are nearly three times as likely to visit a brand's website as to engage
2:50 pm
with that brand on facebook. and they are nearly twice as likely to sign up for brands' e-mails. now this does not mean that brands should move their ad dollars away from facebook but means that companies should think twice when having a big team to carefully craft their f posts. brian? >> all right. thank you very much. so if tweets and facebook posts aren't working and even maybe even damaging your brand sometimes, what should companies do? joining us from unconventional partners is mike kelly. we often hear it from every company. got to be on social media. >> right. >> why? why say it like a fact? >> you know, i'll tell you what. i read the report and i have to be honest with you. we are applying old media measures to these new platforms and new behavior. realize that 700 million people a day are going on facebook through mobile phone and facebook got 66% of their revenue through mobile and finding out a lot about the consumer and mobile use, engagement with brands and data
2:51 pm
and ability to target them based on that data is really to me -- >> the report said there's no engagement. >> no, there is. there is engagement by people most likely to buy and following the logic you don't need as many people to logic as the old digital ads that followed. >> right. >> proceeded, rather. >> what works exactly? what does get you to engage? i don't and i'm on twitter all the time. >> as a small business owner, i get more results. more likes and engagement and very aware. business owners on facebook and twitter are getting results and we are aware of the dollars we send and not wasting it. so we're getting the kind of engagement we want and that we see from it. >> how do you know it works? what if i click i like pringles? i might like the ad. >> the click, focus on the click for a minute because facebook and twitter both admit that
2:52 pm
their platforms work really well with other media. i mean, right now your network and other networks are pushing people to facebook and twitter and works well with tv and radio, very well with other platforms, retail shelves and so forth. we have the ability to now draw those people in through those other platforms and that's really where we're seeing the effort happening. >> what do you think about what julia was saying in this forester report of e-mail is more -- i have my inbox full of nothing but marketing and this blast and that blast, delete, delete, delete. no way i'm engaging. >> we are in a multi-platform world. i hear 360. multi-platform. integrated communications. for forester to isolate a platform and not look at other media or mobile habits is almost irresponsible from a marketing perspective because it works very well and the platforms with other platforms so the engagement comes not from the
2:53 pm
last click. you said click. that's almost like a 1997 model that we're now allowing to 2014. and mobile has come on the scene so fast. in the last couple of years. >> yeah. well, that's why there's so much growth. i talk to numerous marketing people at large corporations. they're all considering pulling back on social media spending. nothing is working. we say you have to be on social media. why? >> a majority of effort is on social. and mobile. right? and what happens is we have got 25% of people using mobile screens and only 11% of advertising being spent against it so rather than trying to focus on applying old models to new models, maybe we need forester and other companies like it focus on the gap. >> like mobile phoneless? >> all thumbs. so that's, you know, we have to look at the entire mix and not just isolate a platform in this multi-platform world. >> made a good defense of it. >> he did. >> and got a lollipop.
2:54 pm
>> who doesn't like cliff? >> show your book. >> i will. thank you. this is all thumbs. mobile marketing, the works and talks about how to use mobile and facebook with tv, with radio, with print so it's about merging platforms. >> thank you, mike. >> thank you. all right. coming up, the big business of pot. but just how big can the business be? i call him a pot guru coming up next.
2:57 pm
now that marijuana is legal in four states and the nation's capital, big money is being made on it. sister network msnbc is airing a six-part series of "pot barons of colorado." our guest is a baron and makes all kinds of eatable and drinkable marijuana products. trip, good to have you with us today. who are you targeting? brian and i were having a look at the products and the site and very upscale. the branding is very slick. sort of like you're almost going for it seems like an upscale woman which didn't naturally seem to me to be the person to go after with marijuana products. >> good afternoon, mandy. i mean, first and foremost, dixie e lix xirs & edibles is focusing on individuals 21 and older but it's a compliment. i think you are right. dixie under the dixie brands is
2:58 pm
focused on creative innovative delivery systems looking like high-end consumer goods and women are a major part of that con survegs group and we are very excited to where the company stands here in the state of colorado and other states as the country continues to evolve. >> is there any indication, tripp, that legalizing it has brought new people in to trying pot? or is it literally people going to smoke anyway now can do it easier? >> well, it's interesting. i have recently looked at some data coming from the colorado department of revenue which is most recently in august and as of september actually we have sold over $500,000 in adult use of medical marijuana generating excess of $56 million and over 9% of the colorado population adults are embracing adult-use marijuana legally. for the first time ever. and so you're seeing a massive
2:59 pm
adoption rate and visiting the adult use stores you are seeing men and women of all walks of life various different socio economic backgrounds and most people like our president understanding that marijuana is truly less harmful than alcohol and incredibly exciting and not to mention that there are now brands most recently we saw the marley family, you mentions peter tosch. so these celebrity brands associated with marijuana now will be able to monetize. it's an incredibly exciting time. >> how do you make sure kids don't get into this? it's pretty. the bottles, doesn't look like -- a big warning sign. only for adults or whatever. pink colors, pomegranate juice. how do you make sure kids don't get into this? >> this is a ing is l most key focus to focus on. it's considered a forethought, a leader within the space and any time we're talking about responsible labeling, the
3:00 pm
appropriate dosing and then the appropriate packaging specifically these products need to be designed to be child proof, tamper resistant. our most valuable asset is children and this is what we do with everything in mind and designed for adults and consumer packaged goods. >> thank you so much for joining us. >> best of luck. >> thank you. we hope you enjoy the show. >> tune in on sunday, november 30th, msnbc. >> thanks for watching "street signs." see you tomorrow. welcome to "the closing bell." i'm kelly e vanls here at new york stock exchange. >> i'm bill griffith. a large caps not moving much. technology's doing pretty well and nasdaq up 35 points, a pretty good gain, as well, today. and the transports,
92 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on