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tv   After the Bell  FOX Business  October 21, 2013 4:00pm-5:01pm EDT

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also looking specifically about other green investment will that make you money? but meanwhile the bells are ringing and it looks pretty flat for a monday but of course, everything is in anticipation for tomorrow. we do have one green era that is the nasdaq up just a bit but it is still up but the dow markets are not too far down a and the s&p is unchanged. that does not happen very often. we have individual stocks that are soaring with netflix coming up. liz: front-page headlines shrugging off that jpmorgan has reached a settlement civil investigations into the mortgage mess from the for the financial crisis hit the criminal investigation part will continue.
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>> sales of existing homes fell. mcdonald's are forecasting it indicated the weakness could continue into the fourth quarter. david: usa today saw a sharp drop today the publisher reported a 4% drop the third quarter revenue with declining advertisement sales. liz: not bad but facebook had a temporary system users to let it happen during network minutes. david: and with the big product announcement by the tektite doesn't know what will be in the announcement is expected to be a new lineup of my pads but there could also be a surprise
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after the bell starts right now. wait until you see how netflix is trading as the numbers come out it is jumping. said did is $382 in dennis kneale has the numbers just when you thought it could not go up anymore but it beats on the earnings $0.52 per share in all street was looking that is a significantly from one year ago wall street looking at 1.1 billion it is up 21% a cave in at 1.11 billion so $10 million on the upside there. still looking at this we have to look at the subscriber numbers you want to see the 1.1 million but i
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will get back to rio. >> that is tremendous us stocked up over 400 percent over the last 12 months. right now it is 11%, 11%, 12 percent come excuse me 14% to continues to rise. let's talk to some traders to have some ideas of what is going on. we're also on the floor of the new york stock exchange also in the pits of the chicago mercantile exchange. mark, we have not seen a jump like this in a particular stock all year. >> we have been seeing data last week not only netflix but look at it grew goal or price line. bell half bad news but coca-cola or at&t inanities
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revenue high it continues to be the rally led by a handful of stocks. it will be tough for the market with some consolidation. liz: we are bringing in some new numbers. just under 1 million new members with the international streaming $9.9 million they have themselves a global business? >> that is the thing. where do they get these subscribers coming from overseas? those of the market's overall does that mean europe is doing better? possibly. that could filter down here as well. david: closing in on $400 per share it is 18 percent of the stock continues to jump.
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i know you have other stocks in mind but is netflix a bellwether for the ever sees subscribers? could that be an indicator of how other stocks could fare? >> i think so it is a great barometer to see how the recovery story happens and netflix is a good measure but the trick is how do they extract more money out of the subscriber pocket? liz: it was very hard for them when it was a stumble when they raised the prices more than one year ago they lost to david initially. david: they got me back. liz: you can make mistakes is to correct them but what do they do said they could get more but not make them angry and run away?
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stake is all about eliot. i subscribe does well. they lost reid for a little bit but i came back. we use netflix all the time but the key is how do bring their premium level of service or value to get me to pay more for my subscription? mcfadyen said in a business level and netflix is no exception. david: keep of this chart to extraordinarily upset it is a 14% but how that fits into netflix. if jobs are still bad if they are out of work work, getting a job will pay
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cut back on things like the netflix subscription? >> normally you would think that but let's get the job market this is a big difference from six months ago they are not worried about losing them those who don't have jobs they've worked spending anyway but it does look like it is improving with all other areas now tomorrow will look at 180 let's see what it brings us on this will hurt temporarily but not long-term. liz: we have the job numbers [laughter] also the labor secretary will be in the show to talk about those but dennis, you had a chance to look those numbers from it was a $92 stock going into this year? >> the quickly quadrupled. in the corner netflix could bring in 1.2 million new
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streaming subscribers that is up from one year ago in a drastically because the growth rate has been slowing in what is important is the u.s. base there not an international company by any means but 29.9 million subscribers that is very close to the 30 million uc for hbo but one big difference hbo's 30 million the profits were 1.$4 billion netflix 30 million homes profit is 17 million it is almost 1 penny at hbo. david: alan greenspan has had much publicity the last few days refocuses on the emotional mood of the market. when you see a stock like netflix jumping up 430% no
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up 14% to 60% he talks about how you get into that exuberance stage where the market is about to fall are we getting there? >> we are creaky getting to that level. the that you see a huge run over the last few months so we are at that stage when things are overdone and this is the fifth largest rally of all time. the market up over 150% not investors are starting to come back to the market. things like the fix has been down so there is a lot of complacency that nothing happened with regard to of the shutdown but there is no
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demand for implied volatility. liz: talking about labor and netflix but let's get some tax. life science and natural resources? their disparate names but is there a common thread? >> it is they're all u.s. companies the multinationals based in the u.s. but they have a major presence overseas. life technologies is a biotech firm to develop a very fast output dna test so you have what was founded in the united states and. 1850 is a huge iron ore producer so it is a big building block with china and brazil and around the road because they have big components.
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david: thank you very much. thank you all. liz: netflix reports the blockbuster earnings and a stock is jumping. we will pick it apart if subscriber in earnings growth will continue in this quarter and next year. david: is the government's case against jpmorgan won politically motivated? that the department of justice is one used as a political hit man. don't miss that. liz: is jpmorgan paying too high a price for acquiring companies that have toxic mortgage? log on to facebook and let us know. ♪
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verse says j.c. penney verses may see it was a three-way battle but now look at that. martha stuart and the j.c. penney once again. it was down eight-point to 5% but martha stuart living will now be working with j.c. penney's with window treatments, lighting, holiday celebrations, rugs, the stock is in moving much after hours but in the meantime it was under scrutiny because you had one company at imperial that said it should be dropped down at $1 because they have been working with bankruptcy people i am not sure if that is true but imperial capital over the of rating to down at $1 so that pushed the stock lower but we will watch that tomorrow. david: let's get to the stock of the hour netflix is soaring with it is already a
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6% on the day that is on top of the initial gain denis is also still with us in the newsroom. these numbers are spectacular. the international numbers that liz pointed out that is the most surprising figure that we see? >> it ended international with a consensus of 8.6 million but it is right in line with our estimates but the top performance after hours is the upside. liz: we have our guy on the floor of the product the question hall they squeeze more out of existing customers looking ahead because the last time it was rejected.
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can they do that again? >> our view is with the valuation levels you price those fundamentals with the option value if they were to raise pricing at the $10 plus range that the current $8 we think it is of that level. david: to have a jump like this one i think investors are wondering if netflix is about to become a a different company more associated with the network? >> do know that it should get out way ahead and that may be happening with netflix.
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even on the total talk show today the target was to a hundred 75 now it is 350. at what point does that loved buffeted and retreats? the company said it will double the amount of money it spends in 2014 on original shows all of that is less than 10% although original programming is the key to their future. the problem with the original programming is people binge they will post all 13 episodes that once we watch it most sooner so they are required to write off the cost much faster that could reduce earnings to present weakness in the stock for word but nothing can stop the stock right now liz: but to that point they just dropped an amazing deal with sony to work on that original programming and what is next?
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where is that opportunity? >> has been clearly even though people do binge but the more likely you stay because other times it is not that differentiated. so they can get first access that is the turn rate to increase profitability. david: do these numbers stick tamara? we need to wonder if that body will drop off. will that happen? >> not tomorrow but 60 million long-term those are still good numbers. >> the problem for long-term is of a financially strong enough company to stay as the independent power house on its own?
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we'll have free cash for colleges left over after depreciation and deductions? $7 million. that's it. hbo is earning over $1 billion in profit every year and netflix is a far cry one day they may have to be acquired. liz: really? wait. is the acquisition in no way? >> not at any time soon there was those rumors when it was stock but it would be somebody -- it would be tough to make an acquisition at this point. david: today they say the stock is still holding its own close to $400 per share. it was under $100.12 months ago. >> was at 300, three julies ago. >>. [laughter]
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david: good stuff. but not this high. to. >> cloud base software companies are a dime a dozen on a roll after the ipo last week doing it differently in wait until you hear why the company chose to list on that "bulls and bears" -- new york stock exchange we're talking to the ceo next. david: is jpmorgan hit with the biggest fine in history for political reasons? why should the stock cooler's pay the bill? we will speak to our next guest calls the case a witch hunt. ♪
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liz: in the midst of a government shutdown of the the system said go for a day made their debut one week ago at the new york stock exchange the stock soared climbing 85% on the very first day. so what sets them apart and how it is a focus on helping the company grow? right now the ceo of viva systems. this was a time of real uncertainty we went public one week ago so talk about why you decided to go ahead
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with the ipo. >> first, this has been a long-term process. as we have been building a business since then and low and behold we appeared on the new york stock exchange the largest measured by revenue to go public it is an amazing journey for viva systems. liz: you are these serial on to produce or -- i intrapreneur you don't let this scare you? >> i have full faith in our government and financial markets. to enterprise software and the clients sir. and then in the 2006 it will
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be industry specific with these applications that are the lifeblood of specific industries or in life sciences of our customers are like so far this and amgen helping them with their most critical business problems progress has always been a long-term business whenever consider that as a government shut down or not. liz: with global life sciences at some point could you expand as you look for more customers? >> we are focused on the lifetime with the 1. $6 trillion industry and we are moving forward with the applications and into the data area that is the focus to use the clout applications with the unique data cross industry that was
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never available before. we are focused on our industry could produce something else in the future? it is possible but we have of $5 billion -- $5 million a we are pretty busy. liz: nice market cap of must have spent a great day but even before the you had a business model that i personally think is in great demand with their software applications are available on the per user, per month basis. it is spee as you go so what made you go to that model that we applauded. we thought people should only pay for what they use. >> it is a new model started with the start of cloud computing and it is pay as you go we deliver a service they get value and they're always current and we always
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keep updating the software. the old way plus client-server software the customer had to buy it, maintain that is a model that doesn't work but today we are replacing that system with the more its advanced model. liz: you do things differently out there and give us a window how you hire people? what is the number one thing you look for when you interview somebody for a job at veeva systems? >> that is a great question. we're groping over the long term the number-one thing is motivation that people want to be a part of veeva systems do they have a passion so those that have the affiliation of cloud
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computing or regarding life sciences that we want people with the right attitude to help move the industry for word it is tough week to people from china or japan it is tough to get the right people. liz: a good attitude is at the top. >> writes. we look for customer success oriented people. we want to move the industry for word it is very important to us we want them to be more e efficient we need someone with that same attitude because specific knowledge and skills could be learned is the attitude. >> it stretches back to ibm in the early days. you are successful. think you so much he went to oregon state's. [laughter]
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david: he is the most called executive i have never seen. [laughter] why are they singling out jpmorgan for the biggest fine in history? one former banker digs through the details also whether or not you could make money off people's fear in three ways to profit. stay tuned. ♪
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david: why is the u.s. government singling out jpmorgan? couldn't be the stockholders are forced to pay for a government vendetta against a political enemy? a former federal prosecutor is year and also for a real clear markets, john is the editor. we had had dick po-faced to knows a lot about banks in he is not one for conspiracy but the asking if it was a hit against political enemy. david: did this a vendetta that they don't like with the administration is doing? >> yes. absolutely. david: what do you say? >> no question what happened
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to jpmorgan is jaime dimon questioning what the administration was doing to the bank -- to the banks when you have a foul administration they will come after you. all the banks did not want to take our money but they were told if you don't recall you the next day jaime dimon spoke bill now he pays for it now in the shareholders are paying for it. david: i look get your notes id to save the department of justice is used as a political hit man? >> i am shaking my head because whole thing discussed me. i cannot believe. if this is true if it is repugnant the proudest day of my life when i swore to uphold the law as u.s. attorney but for there to be evidence they are basically glorified hitmen to collect
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$30 billion is horrible. by understand what they say and i agree but i don't want to believe it. david: i am not suggesting they go after other banks but you hear a rumor with citibank and on the other think of where the treasury secretary was with the part called alternative investments. what do they do? they bundle of bad mortgage loans so they don't go after citicorp. >> i don't know why. this is the way the criminal case works you present evidence you charge people if they do something wrong there is statutory maximum but to tell jpmorgan they will write a check for $30 billion because if they don't they will come after them is nothing short of extortion i think they are
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taking on a jpmorgan because they have the money and that is worse. david: they are not hitting he jpmorgan but the stockholders this is something specifically dick bove addressed. played the second sound bite. >> basically the united states is exploiting the bank to get money from those who own the stocks that never did anything wrong. david: the point is that they are hitting stockholders they didn't do any bundling. >> they are owned by shareholders and they're getting hit and the bigger picture is they are told to will be protected by the government. the payback is that the banks our no longer in the business of profit but political masters who don't care and welcome back to fleece the shareholders.
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exactly what the federal government told them to do with their stearns and washington mutual. and they will become general motors of finance. david: those who did the bundling are not bear any more. >> now they talk about giving it to fannie and freddie if you ask me they are just as culpable as anybody else run the entire ordeal. i hate to sound like a broken record but that is not the way the criminal justice system works he don't threaten people to get money then you convict them the whole thing is upside-down. david: is there anything people can do? >> no. because the banks will lose either way to do as the fed will tell them or refuse
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what the fed tells them to do that is even more dangerous. in 2008 those that would reduce the t.a.r.p. money were explicitly told if you do this you could get a call the next day questioning your solvency. what this means long term they would no longer be the source of innovative finance basically warehousing money. >> they cannot wake up if they better figure out what is going on. david: thank you very much. liz: from a guy on the government side. fascinating. [laughter] the global warming could be bad for the environment but good for the portfolio? we look at how you could profit from this trend and bittersweet looking at the soaring cocoa prices from
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david: if you believe been coble worming there's a lot of money flowing to the companies that use the fear to sell their products. liz: our guest joins us to explain three ways he has found you can profit from global warming. first of all, how did you go about compiling the names? >> click the add as secular trend i will say solar is conspicuously absent because anybody who has traded does know how paula tile is garett -- government pterosaur subsidies trying to look for a secular trend
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that will be durable over the next several years or decades but this is a crazy mixed up economic environment so it could be in your best interest. david: you are for -- so good you forecasted my first question there is the huge west that has gone bankrupt is day risky environment here is just some of that but talk about electric cars. i think we're in good global cooling trend even some people at the winner beginning to doubt that but electric cars get the energy from the grid it that gets it from carbon energy see you combine with the electric car in be adding more carbon energy to the environment? >> true. there is a host of economic
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and political balancing act to figure out of most internal say it is a real issue 57 not to any more. i have to correct you now they are beginning to go the other way. >> the bottom line but it is a complicated issue but when you look at tesla it is proven it can make profits doing this with consumer demand so the electric vehicles are selling tesla is a little frothy as an investor i am not buying it because of the valuation but i do believe in electric vehicles long-term or maybe the lithium battery that is out there that has exposure to electronics because lithium batteries are a part of that you can play the
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trend without getting involved typical discussions if you believe been the vehicle. i am trying to oversimplify. liz: we get it. we are fair and balanced so i believe in climate change because they're looking at the polar caps melting so that brings us to the water. >> anyone who lives in the american west knows that water is an issue with dropped its population grows with lead waste water treatment out west is a big deal. there is no water etf companies like flows serve that make pumps and components but like american water works almost paying a 3% dividend with waste water treatments very low risk so
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if you like that trend to the safety check out the stock. david: is 60% rise of the ice covered ocean as well so a change in those numbers. so you believe that is not a green energy? been if there are two ways to look at a fukushima was a big deal galactic act like they are not real but people who believe there is the climate change that it is a big deal but that tsunami could be an argument in favor of global warming if you want to have that the argument that the uk is to starting construction on the first nuclear plant in 20 years in conjunction with the french utility and people have to realize as a cheap home grown energy source nuclear does have a role. you need to balance the needs and there is a growing consensus all the risk for
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nuclear may not be as big as the rewards with the changing environment. liz: we will put these up on the facebook.com/afterthebell page still making will get a lot of comments. [laughter] liz: we are about making people money. it could be the answer to every parents' prayers and how living wallet could shut down. you need this. >>. [laughter] alcoholics pay attention you are about to suffer from some serious sticker shock wait until you hear how much the chocolate will cost to and it was in to the sticker shock. ♪
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liz: tragedy for chocolate lovers cocoa prices hitting a two-year high it could be some of the cocoa traders think we have the perfect storm. >> joining us live from chicago tell us it is not
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so? >> see this? that is all chocolate this is modeling chocolate you eat that it is like plato for grown-ups. the part of the story is about to me and here is the chocolate lipstick you can put the chocolate on your lips. there you go. look at the cocoa price says. part of this is to me and part of this is supply at a three-year high this is a cocoa former she is from ecuador some farmers have gone away because they were not that good but i want to talk to a guy who just
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founded a company can i interrupt you? you have to be alive and awake this has coffee? >> 100 percent of the coffee beans crashed into the and three specialized with the exotic flavors the passion fruit, vanilla, flour and the exotics and. >> how has the impact been on you? >> pricing? they are going up from what i am understand. we talk to different suppliers to see what the best prices are. >> who per-capita consumes the most talked late -- chocolate? liz: it is the liz claman country. >> it is the united states the u.s.'s number 12. ireland believe it or not is
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number one. it is the red hair. liz: we like how he did that surfer dudes but we don't believe that. >> i think that means he is a gang member. >> he needs to send us some samples. >> sent them some samples. david: we also. we also. steve prefers see alcohol but he will take the chocolate. liz: that is a dream for me we love chocolate. >> jpmorgan reshape the $13 billion deal with the justice department so we ask do you think they pay too high a price? we will read your comments coming up. next. and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul.
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david: time to go "off the desk." a japanese company found a way to keep control of out of control spending habits. the wallet rolls away if you don't have enough money to pay for something. liz: off the desk. toby spent $100,000 to look like justin bieber? he had several procedures to achieve bieber's youthful look. botox injections, chin reduction and eyelid surgery. david: all right. number one thing to watch tomorrow will be the september
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jobs report. economists expect non-farm payrolls to rise by 180,000. liz: we'll talk about the numbers with labor secretary thomas perez. he will join us on county down to the closing bell at 3:00 p.m. eastern. "money" with melissa is next. melissa: i'm melissa francis. here is what is "money" tonight. uncle sam sticking up banks, making off with shareholders dollars. this is what everyone is talking about on wall street. we have former treasury department official who was there with. you haven't heard this with. abercrombie & fitch ceo, how does he still have a job? from bad decision decisions to even worse personal choices. who thinks he still should be in charge? we will debate it and shareholders beware. "who made money today." his day is looking pretty bright as he rakes in more than a million bucks. even when they say it is not

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