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tv   After the Bell  FOX Business  November 27, 2013 4:00pm-5:01pm EST

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it is great news. david: who is that ringing the bell? liz: santa has some red bull in him. everybody is freaking out. david: i like to see those balloons waving around like that, but it is not hurting the market. the market is unstoppable, all of the indices in the green. take a look at the russell 2000 and the nasdaq, hewlett-packard, tech heavy stocks really pushing the nasdaq to a very distinguished level. we close jobless claims coming in last week's initial claims fell by 10,000.
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expecting first time applications to rise to 330,000 last week. liz: consumer sentiment as the outlook improves. we have the final reading, consumer sentiment 5.1 in november, up from a rating of 73.2 in october. david: hilton worldwide announcing to become a publicly traded company. listing on the new york stock exchange taken private by blackstone group in 2007 for more than $18 billion. 1.25 billion ipo said to be one of the best offerings in recent years. liz: also said to be pllnning the ipo. the company will begin next week. the company has been talking
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about taken private freight $.3 billion by private equity firms. david: it to brandeis deal for the program of health care group. a step to build a special form of business. providing infusion in nutrition services for 20,000 patients per month primarily through in-home treatment. liz: and good news for drivers hitting the roads this thanksgiving. the weather may be bad but gas prices headed in the right direction going into the holiday weekend, the lowest level since 2010 according to the energy information. average price $3.29 per gallon, $0.13 less than on the same day one year ago. "after the bell" starts right now.
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breaking news in the cable world, yesterday was jump into the bidding for time warner cable but charter does not want that to happen, charter has secured financing to possibly take over time warner cable. david: all these deals continue to mount. a lot of it being done before the end of the year, but this one not really affecting the stock value that much right now, but we will monitor it. is it they spread perhaps because of this breaking news. again, we will monitor it for this hour. let's break down the action on the market. portfolio manager telling us why he is betting on the consumer and economic recovery. also, in the pits of the cme. another ecord, todd. we still fighting the bullish trend?
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>> happy thanksgiving. they keep putting helium in the balloons, they keep blowing it up but we all knows what happens iin the helium comes out of a balloon. i am not fighting it but i am waiting for my opportunity. david: when you say you are not fighting it, are you joining it? >> no, i would not put any cash into it. i am not interested in chasing this market up. if it keeps going up, it will go up without me. i see it as a big bubble, it eventually will pop and i will be there ready to catch it when it comes down, but right now i'm on the sidelines with no new cash i wouldn't want people to start putting cash up here. if you didn't participate in the beginning, there's no point in getting here. this ca in highest close since 2008. remember 2008, we are seeing that again now. liz: at least you can sleep well at night.
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tim is a little gutsy her. you believe in the small-cap rally continuing and you say that is where the real money is. why? >> david said it earlier in the cable space, men's warehouse going after jason a banks and going after men's warehouse. growth is okay, we think the evaluations for the broader market is okay. you have sort of slow but steady growth and the bigger getting bigger and consolidation up and down the cap spectrum, we don't see a bubble. liz: what specific areas, can you distill if they are sectors or regions? >> we focus on u.s. equities, small-cap, and large cap product as well. we lean more toward the u.s. companies like financial services, consumer staples as
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opposed to companies with big businesses overseas, so companies like united national foods, small-cap banks, and best buy, higher profile we owned it, that is a fantastic turnaround, engineered by new management. there are pockets of too much optimism in certain stocks. david: let me give todd his due. assuming you are right, assuming this is not a bubble, why was the market undervalued for so long? for so many years after the recovery began? >> to talk about this before, the last 13 years have been unpleasant. back at 4000, but lasted all
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14,013 years ago. over 13 years, the flash crash. david: i want to shorten the time frame and little. talk about the past year. we have been in this tepid recovery for several years now. why is it just in the past year the market has taken off like gangbusters? >> in the near term you have this ongoing flow but okay recovery and incremental liquidity because you have had the accommodative policy for a long time, it's only been in the last 12, 18 months accommodative policy meant domestic economic recovery. i think that is why you see some of these extremes at the stock level in terms of some of the momentum names and really levered deep value names also really high-quality stuff in between. to us it is attractively valued. liz: so, todd, let me throw it
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back to you, you called it the bit coin rally, that is what a lot of people cannot wrap their minds around but others who bought it at $3 at the start of the year are in the money trading above 1000. tell me whattthe traders feel is the next best trade. is it soft commodities? or do you want to buy low and going to other potential commodities that might be an opportunity or simply go to the emerging markets which some would say are oversold recently. todd? you know what, this microphone is gone. we might need another battery. tim, you have some special picks here. you also like best buy, which jumped out at us because best buy has 7% shortage, have good numbers, but they almost
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conceded to walmart for the deep discounts, why do you feel like this thing? >> no turnaround is linear. the price environment is pretty competitive but trades 20% of revenues, the new ceo, the cfo comes from williams-sonoma. very thoughtful blocking and tackling turnaround. blaming a lot of problems on the phenomenon. it was prior management underinvested in the business. store level profitability is improving in most traditional competitors are bankrupt. there will be a fair amount of market share as to the holiday season. david: my favorite is glacier bank core. this company never took a penny of tarp money. they said no way, we don't want to be loaded with that.
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>> the ceo has worked at the bank in one capacity or another. never cut tte dividend. well-capitalized and we have talked about banks coming back as real estate gets better, housing gets better and i'm much more supportive yield curve and if you look at the banks, they have all done incredibly well. they are in part of the country in the northwest finally really coming back, just a fantastic management. david: i love the way they stood up to that melt down so well. have a fantastic turkey day. we have been told he found his voice. save it all up and get ready to spring into action.
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liz: coming up, the winter sto storm, will you be able to fly or drive home for thanksgiving? the latest satellite pictures for you. david: one of america's most famous chefs shelling out a huge amount of money for a very specific style. what he wanted and how much was willing to pay for it. liz: where do you think you will see the best deals on black friday, cyber monday, or post-christmas sale? facebook page, facebook.com/afterthebell. or you can tweet us your answers as well, stay tuned. [ male announcer ] once, there was a man
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colgate and johnson & johnson. david: you cannot go far without those. have a wonderful thanksgiving, my friend. liz: charter communications arranging 25 billion in debt for time warner cable bid. let's go back to nicole on the floor of the new york stock exchange. they are very widespread, why? >> this is something we have been focusing on for days. the cable wars, who is taking over who time warner cable, it looks a little bit to the downside on the news charter communication arranging $25 billion of debt financing in order to move forward with their acquisition of time warner cable. you may remember they tried to do a tie up that was not received well by management and they did not think it would benefit the shareholders. the other side of the story is
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time warner, perhaps with another company as well, so watch time warner and charter. this is a story we will continue to follow because it has been several days we have in following this one and it is not over. liz: there has been a flurry of activity recently, mergers and acquisitions making a bid for the one-time suitor joseph a bank to the breaking news we just talked about, time warner cable, the potential target of three cable companies. it looks like charter is trying to get in first position here even with a number of overall and announced transactions down from last year. 41% of u.s. executives plan to pursue an acquisition in the next 12 months. how you can profit from it, we're joined right now by perfect guest in this regard.
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he is the founder and ceo, thank you so much for joining us. to the breaking news, right away what does this make you think of, who is going to win this? does it look like charter is still far ahead in the race, they win? >> they are arranging financing, that does not mean they have the financing, they are talking to banks and other financial sources to get this. why i think the market will heat up a little bit here is because you do have a wealth of financing, interested parties, the cash flow from the subscribers of the cable companies so it is pretty attractive to people looking to finance these. liz: who might win this one? obviously comcast, cannot count out the nation's largest cable company, charter is right there, if time warner goes away, do
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they give up that early? >> on the flipside, putting two of the largest cable companies together you're going to have some problems with sec and antitrust. probably you will see some of the smaller companies if they can arrange the financing, this is a heavy debt load for charter to do this. already at five and half times their earnings before taxes interest depreciation and amortization. liz: charter wants to win here. he wants to be the big man on campus. time warner is in play. that leads us to the trend, many companies have felt it is better to sell or merge and to try to go at it alone. what is the strongest trend you have seen?
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>> if you are an earner the ma owner today, now's a good time to sell. don't wait six months or year from now to see if valuations go higher. you can structure a transaction in which you can get some sort of run out or stock options for future growth and performance in the company. don't be greedy for the last little bit. the financing is out there, so get the deal closed and then you can worry about the higher valuation. liz: i love the story at men's warehouse and joseph a bank. now they say we will come back at you, they want to take over joseph a bank. what happens in this make a deal? >> i am wearing a joseph a bank tie for this occasion. it is sort of a joseph a bank
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pac-man. maybe i will be online for the sales but i am one of the purest or traditional select to be with the family on thanksgiving rather than in the store. more of a strategic acquisition or merger. they both think they need to get stronger, and believe accommodation would make sense. liz: what is the best way for investor to capitalize on this? a lot of it has to be who is next to be taken over. is there a tip or two you can give? >> i would look at a few things. one is cash flow. number two, does the company have a lot of debt on their books? it may not be a good acquisition candidate. and three, the market and the industry. if it is a growth industry you should be buying into that industry.
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liz: he has appropriately titled company. >> happy thanksgiving. liz: to you as well. david: is a good man to listen to. black friday is only two days away. they're not the only ones with the deals, coming up another industry that is getting in on the action. are you one of the many americans traveling for things given? nasty weather could put a damper on your trip. where are the travel bottlenecks? the very latest coming next.
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david: in time or a quick speed read. five stories in a minute. u.s. border applications fell for a fourth straight week according to mortgage bankers association home loan applications slipped .3% last week and falling 7% over the past four weeks. the sec is expanding its probe into the hiring practices of several more big wall street banks. u.s. authorities request information from both citigroup and morgan stanley bid blackstone group and hilton worldwide are meeting with potential investors ahead of the hotel chains plan ipo next month $225 billion ipo will be the largest ever in the hotel industry. retailers are not the only ones hoping to draw out shoppers on black friday. automakers and commending deals of their own for the holidays. featuring discounts, including gm, ford and hyundai. a new cell phone including
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ex-nokia engineers on the market in finland. it features 4.5-inch screen. and that is today's "speed read" the ad liz: microsoft does not like it. transportation authorities and travelers bracing for the worst as a winter storm makes its way up these goes good with nasser wind, colder temperatures coming. david: rick leventhal with the very latest. what a beautiful bridge. >> it is a beautiful bridge but it is packed and the weather conditions are pretty awful and getting worse the new york area with high wind gusting in some parts to 40, 50, even 60 miles per hour.
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we have to drive over the bridge and look at the red lights from new jersey into new york city fotoward the bronx, toward long island and i-95 into connecticut where three and half inches of rain has fallen in some areas prompting heavy snow further north and west blanketing buffalo, rochester, upstate new york, a foot or more falling there. pennsylvania seeing heavy snow. more snow falling in northern virginia and central maryland. based on system affecting 50 million americans since it started in the southeast u.s. this week and the big issue is road conditions. 39 million americans hitting the highways today, tonight and into tomorrow morning. driving an average of 214 miles to get to a family dinner, and
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those folks are going to have twtobrave pretty nasty road conditions. they are being encouraged to take their time to not take risks and allow extra time because of these hazardous conditions. one other note for people who are looking forward to the macy's things given state parade tomorrow, you are used to seeing the huge floats, they may be grounded for the first time since 1971 because of this storm system and high wind predicted, gusting from 25 to 35 miles per hour. that is high enough for them to grounded the 16 balloons including snoopy. the decision will be made by parade officials and city officials tomorrow morning sometime before the 9:00 a.m. start to that parade. something to look forward to or maybe not see tomorrow it in your turkey. liz: i'm coming over to the new jersey side so does not look so bad behind you. you are at that part with the george washington area can in
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because that is where everybody goes live from. is it a c or not so bad? >> the icy conditions not in this area, but they are concerned about black ice forming on highways and forming an upstate new york. it is going to get bad later this evening, temperatures dropping 10 to 15 degrees, heading into the upper 20s tonight and the roads are very wet. david: takes swings, it was in the 50s. a big change of weather happening all over the country. we will be taking a look at janet yellen under the fed chair. former colleague of mitt romney, he is going to tell us what he thinks janet yellen should really be focused on once she takes office. liz: and we will tell you about the newest trend when it comes
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liz: time for look at today's market drivers. closing at record highs again the time heading into the thanksgiving day holiday. eight out of 10 s&p 500 sectors closed higher, technology being the big winner. gold and oil both dropping today. $1237.19 per troy ounce. a five-month low. oil dipped as well. rising u.s. crude supplies settling at nearly six-month low at $92.14 per barrel. and u.s. initial jobless claims falling unexpe week 316,000, that is good news. i spent a modest increase in claims to 330,000. david: the stock market acting like it is growing at a record pace but despite moderately good news in the jobs and housing
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front, the economy still growing at a pathetic rate of less than 2%, so what will break first? the bowl or the sluggish growth rate and what role will janet yellen play in all of this? former colleague of mitt romney's. also author of the book "unintended consequences." this guy has gumption, that is one reason we like him. so, i look at this equilibrium between the economy and stock market. what is going to crack? the bull market or the economy? >> one way to interpret the bull market and stock market is people are seeing fat profit margins with very low interest rates and discount that at high valuations. businesses and should be competing by going after market share. that drives down profit margin
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and drive up interest rates as they borrow more money so you should see a narrowing of the profit margin higher interest rates in the future in the value of the stock market going down as a result. so does not bode well for the future. david: if you were working at bain capital a lot of people would say what is going on, would you say the market is currently undervalued or overvalued? >> it is slightly overvalued. interest rates will rise when it heats up a little bit more bringing valuations back in. david: why isn't the economy growing? much better if the stock market cap going up and the economy came up with it. >> there is a lot of risk in the economy recognizing more risk in the economy and the financial crisis because it is more unstable than you realize. this dialed back to compensate. our government has done very little to lower the amount of risk taking.
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there is little to increase growth or increased price inflation. david: soap banks which have all of this liquidity now because the fed has been printing all of this cash holding more than 80% of that liquidity with the federal reserve in reserve, they are not actually using it. there's a lot of proved your point the economy is not growing as it should be and the united states has now fallen to a record low. so why are the young entrepreneurial businesses, the ones who could be getting this economy moving again, why are they borrowing some of this cash they are producing? >> business investment is very low as well. investment waits for consumption. what we need to do is pump of demand and investment will follow. in today's economy innovation drives growth for more than building factories to satisfy
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increase in demand. if i come up with a new innovation, i will make profit regardless of what is happening in the economy and you have to follow or you will lose profitability in your business. i'm only willing to take it on if i see less risk and the overall economy. i don't know what that means, i don't know what those effects are. in the future when the economy recovers and bessi capacity tite depending on federal reserve's to not let inflation transfer money from investors to consumers. that is a lot of risk. david: they say the fed should create negative interest rates in order to pump some of the money out of the banks into investments. what do you think of that idea? >> it is a good idea if you do not think of it all the way to the bottom.
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forcing the savings into the economy to discourage people from satan. if they could rent money and get price inflation that may not be a bad strategy. they have got no price inflation whatsoever because you need two things to get price inflation. access liquidity and also tight capacity which we will not get until economy recovers. david: willing to take risks, low start up numbers they are not doing it. you have to encourage the young entrepreneurs and that is not being done enough. thank you a for coming in. "unintended consequences." liz: coming up, the booming business of organic wine. talking to one man who left wall street to try out his green thumb in the thriving business. and charter communications breaking at the top of the hour getting ready to make a bid for time warner.
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liz: we might be teaching you a new word here. biodynamic. 1500 wineries in the world right now, but after a successful career on wall street, our next guest put their green thumb to work, literally. david: kind of a fun thing to do, who is betting big on sustainable winemaking. tell us what it is about. good to see you. no relation to robert parker. however, just wondering what would robert parker, the great wine taster, what would he think of this wine, it has he tried it? >> he has tried it and the top
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wine rated 93 points or more. he described it as being a wine of great purity and should be in the world's best syrup wine contest. david: that is a great complement from a guy that is tough to please. liz: what does it mean to you and the wine world? >> you are familiar with organic, basically we are not using pesticides, chemicals, fertilizers. these things that are now the causal linkage between synthetics and petrochemicals and so forth to disease like parkinson's and alzheimer's getting proven out. this is organic wine and it goes one step further. biodynamic's is more of an extreme form of organics where we develop our own composting and we treat the vine a certain
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way in order to improve the source, create biodiversity. liz: i am holding a bottle. this is the area we showed pictures of where you are doing this, but talk about price points because our viewers want to know how much things cost. how it has been rated. >> this is 93-point wine. it is our premium bottle. it sells for just under $25 in the states. david: a lot of people are allergic to sulfite, they look specifically for one that does not have sulfite in them. i know they can be natural, but do you include them or not? >> you are actually required to by law. in shipping to the states, it is an organic compound so it is not synthetic. what we do is absolutely minimize. david: tte bottom line is what
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makes your product organic is the growing of the grapes specifically. >> the growing of the grapes and harvesting of the grapes and our building is an organic hemp building. liz: what is the market for green wine right now? >> exploding. it is about sustainability, health and wellness. one of the really interesting things about having done this for 17 years is to see the evolution of the interest in sustainability, and what we are seeing is the consumer now is aware of the availability of this as well as the downside of ingesting chemicals and synthetic fertilizers and pesticides. so we are seeing an explosion of organic and sustainable interest across everything including investments. david: the cost of organic farming unit is difficult to keep up. many say you save money on fertilizer but in fact keeping
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them away without fertilizer is very difficult to do, is it not? >> it is, what we started 17 years ago. we were certified in 2002. david: by whom? >> by ecocert in europe. these are difficult certifications to get. the wine is really made in the way it was made a couple hundred years ago. it really goes back to the original, and you can taste the wine, the product is alive. for instance we recommend opening the bottle 24 hours before you want to drink it and leaving it on the counter because it is a live product. liz: i love how this was described at least one of them said it was smoked beef spite cabinet and hint of bacon fat in a full body gorgeously proportioned syrup.
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david: bottom line is it is a great drink. great stuff. could some of the largest cable companies be headed toward consolidation? it looks like time warner is the number one takeover target right now. details on what is coming next right after this. liz: what happens when your favorite shoe gets discontinued? it quickly by a couple of hundred pairs. that is what one famous chef did. wait until you hear the color and how much he wanted to buy. that and more when we take you off the desk. (announcer) at scottrade, our clients trade and invest extly how they want. with scottrade's online banking, i get onview of my bank and brokerage accounts with one login... to easily move my money when i need to.
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david: taken time warner is the second-largest operator in the country, so it is looking a little bit more like a dead man walking to some, and a target for takeover. liz: in a big way, three suitors, target came up with news in the past hour. >> charter raising $25 billion in debt ma man a big cash
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target of $25 billion for time warner cable. so why is it time warner cable is so hotly pursued right now? it has a fortune of the most attractive cable assets of the country. just when the ceo is retiring and the number two guy is untested. it may be emboldening other cable guys to look at an uninvited takeover. look at the cable guys, if you will. the top four cable guys, time warner number two and now turns out all three of the other top four cable companies are making an offer. number one comcast with 22 million cable homes, it may be a white knight for time warner cable or great white shark depending on may be gobbling it up and the number three player privately held in atlanta mulling a bid, but the first mover is the number four charter communications.
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the little engine that could, 27% owned by the most feared cable exact in the world, that would be john malone. charter run by one of the best regarded executives in the industry. on both time warner cable and cablevision systems in long island. they say they need to bulk up to even further gain clout against the content makers like espn and cbs but there is a plausible scenario that would be ugly for time warner cable, maybe charter, comcast and cox team up together, they buyout time warner cable, they chop up the cable systems and among them as if time warner cable had never even existed. back to you. liz: obviously he now runs charter so we say cablevision c0
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oh, that was a previous job but don't count him out, right? >> he is a killer. i want to see if he will go for time warner cable that that'll l turn it into a cable provider and try to tie within. but then there's a cablevision why don't we join together because i used to run you guys in a number to capacity. a lot of these decisions are made on a personality and agendas of the individual people running the company. david: my money is on john malone. thank you very much. have a great thanksgiving, thank you very much. liz: a florida fishermen hoax a rare catch off of the coast of miami. it took four hours to reel in the supplies. guess what he did with it though. we will tell you taking it off the desk. david: black friday deals starting on thanksgiving, so we
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ask you when do you think you will see the best holiday deals with mark black friday, cyber monday, or after christmas when all the deals come out. coming up next. you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barri that helps block stomach acid from splashing up-
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>> off the desk window world came crashing down when mario realized what he loves were discontinued in his favorite color orange. after hearing it he decided to order to appears adding to his collection of 30. his signature file where he has even warned them on the red carpetti even saw him at a fail on top of the mountain but mario has said nothing lasts forever baby if you wonder how much'' would cost? 801 dash $8,890 but the stock is down. >> what will he do with all of those? and a catch of a lifetime when one fisherman will wield in the 800 pounds of fish off the coast of miami 14-foot long he made the big
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catch while filming a tv show for it japanese network then released it after tagging and taking photos. >> have a happy and healthy thanksgiving. >> monday with melissa frances is next. >> i am melissa frances and i have a show for you tonight. all around a special powerful of the best and funniest and liveliest segments we have ever done from your most annoying co-workers to why a shared the decaled brings marital bliss. who is to blame for your workplace blooms a of a the power of negative thinking. if they say that glass is half full they are lying. even if they say it's not, it's always about money. melissa:

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