groupon has been a winner. david: great stuff, nicole. thank you very much. [closing bell ringing] there are the closing bells as we get ready to report on groupon and hewlett-packard. as you can see it's a great trading day. we may not maintain the triple digit levels on the dow but all indexes are up. look at russell 2000. we love rooting for the small and mid-sized caps represented by russell 2000. that is over 1%. heliover 1%. -- healthily. we have a busy day with a lot of earnings coming up. "after the bell" starts right now. liz: let's go. we look at today's market action and your money. we have jason pride, glenmede director of investment strategy. jason will tell you the investor how to position your portfolio for this economy. yu-dee chang, ace investment strategist chief trader has the best way to play this choppy

market. let's start with chris gersch joining us from the pits of the cme which when you woke up you didn't know which way to turn. we had good data, we had pathetic data. market maybe wasn't looking at that because they were looking at this whatsapp acquisition by facebook. >> we had a good rally today. what's app at 16 billion, another three billion in paper. instagram got one billion. they're waking up should i held out for a little more? what is going on? whatsapp is the big talk. s&p, we're looking at to test that triple high. 1852 on the futures. if we don't get above that things will star turning bearish here. as far as whatsapp, that is big part of the story here. david: part of that deal, they got $3 billion for the 55 employees. that comes to $56 million per

employee, just from one day to the next they end up with 56 million. you may not give you areour viewers that much but what do you think will happen with this market? the january slide in particular, was that all about the weather? >> this is what we're trying to tell people, just forget the snow. we know in the northeast we've been hit pretty hard by it. it definitely has been something everybody felt individually. it is showing up in economic figures. it will probably show up for a little while longer in the economic figures. you have to strip that out from the calculations. look ahead and look forward to what is going on in this economy. even with weather-related data looks like we're pacing along at reasonable growth rates. the fed seems comfortable with it to pull back the bond buying. equity market investors seem to generally have this under control and know about it. valuations are pretty good for equities. they're not so good for the defensive assets like cash and treasurys. so you need to plow ahead with a little bit of risk-taking in

your portfolio. take that rick, be smart about what you're doing. still follow valuation discipline by us. buy things cheaper within the equity marketplaces and move on. liz: okay. we'll get to what you think is cheap and fits into your parameters in a second. let me get the macro picture from yu-dee chang. if this weather doesn't improve, we know weather will improve, if the data doesn't improve along with weather we have ourselves a problem, do we not? >> on the short-term basis, liz, that without a doubt. but overall i agree with your previous assessment basically we had the same story we had in 2013. we have this slow growing economy but actually pretty surely it es growing. so people are a little bit nervous. yet this the only game in town. low yielding assets are not doing much. buying dips and selling rallies. that is the story. the weather will improve. but whether the weather improves or not, market is going to push

ahead with bumps and bruises. david: chris, let's talk about technicals for a second here. the s&p in particular, we're only 10 points off 1850. that is a critical level to a lot of traders. do you see it that way? >> i see it that way. what we call a triple top. a lot of times what you will see a actual reversal after hitting a level three times, if it does not go through that level. the 1850 will be tested next couple trading sessions. if it does not go through that, that will be heavy resistance level. you will see a lot of put buying. david: we'll be watching 1850 but right now, jo ling kent we have to watch groupon. we have the numbers. what are they? >> dave, we have a good beat from groupon on both sides. four cents a share beating street estimates of two cents and revenue a big beat on the 718.04 million the street was looking for. right now shares look to be up

13%, 15% actually in after-hours. liz: interesting that the options market was showing no matter what the numbers we would sing either up 18% or down 18%. we're very close to that now. huge jump for groupon. this was a company struggling about three quarters ago. a lot of people said, you should have taken the google money and run. google offer ad couple billion dollars to sell. they didn't. they went public. it has been a tough road but now looking good. david: sound a lot like yahoo! remember the deal they missed out on? unfortunately however we're still waiting on the numbers from hewlett-packard. i just want to see, chris, if you get any idea from groupon these numbers, what is happening after-hours, is that indicative what is happening at all in social media in general? >> i think it is. you look at the tech space, and out of the s&p 500 you really have the tech sector up more than anything else right now. think you have the zyngas,

outperforming. david: okay. sorry, i've done it twice in a row. that is very rude. we have to be rude to give viewers what they want. you have the hewlett-packard numbers, jo. >> we have a beat on hewlett-packard on eps and revenue, coming in 90 cents a share beating 84 cents estimate. revenue 21.2 billion, a beat of the 2.19street was looking for. shares are up 1 1/2%. -- 27.9.liz: enterprise group id margin stuff. up about 1%. we're leaking stock almost flat to where it closed slightly above the bid and ask are concerned. hewlett-packard and meg whitman continuing on path of recovering what is the glory years of hewlett-packard in the late '90s, david. david: first quarter of 2013, hp's revenues fell 6%. they came in 2013 looking terribly. they began to work their way back up. a lot of work from the new ceo but a lot of work from change in

attitude on part of what is happening in the pc industry. beginning of 2013 everybody thought pcs were dead. they began to make a comeback. some of hewlett-packard's traditional units in their companies, many which focus on pcs began to do markedly better. i'm wondering, jason pride has a whole new view what hewlett-packard is and what it can do? >> perhaps they do. perhaps there's a bit of a story there that is coming about. now i think really one of the backdrops here for a lot of this, what we're talking about groupon, what we're talking about hewlett-packard, and we're talking about other companies to this earnings season, this has been a pretty strong earnings season. 65% of companies beating expectations. the bottom line story across the entire market is things are reasonably good and we're heading in a positive direction. liz: could i just say -- >> whether hewlett-packard or groupon or other items should be taking advantage of opportunities they see. liz: last quarter, yu-dee, we had some people saying oh, it

will be a horrible quarter. next quarter, the numbers are not going to look good for earnings and sure enough they have. you can not count out american ingenuity and business. right at the moment it seems to be fighting back. what does that tell you and why are you picking names like home depot and forest labs which got acquired by actavis? >> if you think about that there is no doubt about that. earnings have been pretty much on target. 63% rate. 65% on revenue beat rate. that is what we've been getting, liz, despite the fact anticipation for the next quarter is stronger or weaker but that is what we've been getting past couple quart years hold on one second. david is always one to interrupt now it is me. you guys are terrific going with the flow. rich edson from d.c. >> we're getting more information exactly what president obama will propose in his budget, raising billions of dollars according to "wall street journal" tightening up international taxation rules. one would tighten rules for digital transactions to give

them more exposure if you understand what this means, sub-part f if you're familiar with international tax law. the second would classify more digital income would basically expose it to the subpart f taxation. it would create this situation where a company willowed up on debt in the u.s. operations and use that to finance operations overseas. the administration is proposing tightening that up as well. according to "wall street journal." now there has been a move in washington to try to overhaul the entire tax code. congressman dave camp, the chairman of the ways and means committee is someone who is working on this he was working on an overhaul with chairman max baucus of senate finance committee. now he is approved as ambassador to china. there is real big skepticism in washington, d.c. we'll get any overhaul of the corporate tax code. seems as though the administration is doing pieces of it by itself but doing so in a way that will raise several billion dollars. tightening up digital transactions. david: a question here because,

it is on the opposite side of what seems to be happening. a lot of companies were hoping there would be some sort of tax forgiveness for a lot of money companies have overseas. remember as much as half of apple's $160 billion they have in cash is overseas right now. if they were to bring that back, that could be put to good use creating jobs right here in america but they need a tax, kind of holiday to have that happen. no talk about that right now? >> right much the administration has been pair fairly opposed to that they will have the conversation in a certain way but what they proposed for corporate tax overhaul, one-time charge, not necessarily something that would be as much as companies would pay to repatriate that money. they still have to pay something to bring that money. a lot of companies in the united states are very uniqued position. we tax companies on worldwide income. but only tax it when they bring the money over here. a number of different proposals how to get that money back here. that is one bandied around but not something the administration is in love with.

david: thanks, rich. liz: yu-dee's picks were home depot, forest labs. and i promised jason your picks as well i promise to get to them. home depot, accenture, abbott labs. >> we have a little bit of overlap here. bottom line we always pick domestic stocks here. our favorite places to be is actually be investing in international markets particularly international developed in europe and japan but look, everybody has some domestic investments as well. our bottom line to our picks we're going for stability and above average profit margins. we want these companies to be able to churn out greater earnings growth rates and greater business growth than just what you can get in a 2% to 2 1/2% sort of growth environment. since we're still kind of stuck in little slower than normal growth environment. and the additional thing here that i would say is, we're peeking reasonably, fairly valued companies, maybe some little bit discounted in the 15, 17 times normalized earnings range. the point is, is that we want to

be overpositioned or overallocated to equities here at this point in time but not by such a degree we're completely over our skis. we want to be in an environment where there are still some risks. we want to be in environment we can react so that if markets do pull back again, we're able to add again and come back in and we play the game batting back and forth as markets will provide us some opportunities as they always do in the course of a year. liz: there wasn't overlap. yu-dee liked hcn we'll put this up on facebook.com/afterthebell. thanks very much. yu-dee chang, jason pride, chris gersch. david: thanks forgoing with the flow. natural gas for the year it is up 40% so how can you cash in on the surge? we have four names to help you ride this rally. liz: and facebook writes a huge check to acquire whatsapp. not even publicly-traded. we'll talk to a facebook

shareholder with nearly two million shares and get his opinion on the deal. will he buy more stock or sell? does he think like some analysts think facebook paid a little too much here. david: we want to hear from you. do you think facebook paid too much for whatsapp? comes to $19 billion all-in. or will it be able to monetize the $19 billion and make even more? tweet us at fbnaab. your answers later in the hour. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪

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david: guess what happened to groupon? it is now falling in after-hours trading after soaring nearly 16% following its fourth quarter earnings report. liz: that is a big plummet. that is why you need to stay with us beyond the numbers come. let's get to nicole petallides. what is happening here? >> it must be part of the outlook. certainly not earnings per share or revenue for the latest quarter. there is must be something with the outlook people are noting on and not liking on wall street. now it is in negative territory. the revenue was 768 million, versus 718 million. i'm giving you rough numbers. earnings per share, four cents beating analyst estimates of two cents. gross billings, 1.$6 billion. that seems all good enough. they completed that acquisition of living social korea in january and -- been adding money. liz: apparently it is the

outlook. they project ad first-quarter loss of between two cents and four cents when analyst were looking for a gain of six cents. >> there it is. liz: the outlook here. >> there it is. i saw the two cents to four cents loss but i didn't have analyst expectations. i was thinking thinking that out be below. that is not good news. exactly why we're seeing lower now. liz: we're looking ad groupon in the after-market session. you can see lost everything and more. >> this is $20 ipp don't forget. we're seeing it in the $9 range. david: nicole, thank you very much. let's get back to whatsapp, that story. one winner from the facebook deal is blackberry, believe it or not. it is up 5% with bullish analysts saying that the $19 whatsapp deal that blackberry may be sitting on a gold mine because of their messenger service. they acquired this 4dollars a month for per active user of the as of october blackberry

reported more than 80 million users for its messenger service. perhaps it is worth more based on whatsapp valuation. blackberry messenger would be worth 3 to 4 billion doors. others say they, you shouldn't get too giddy about all this. the messaging app, viper was recently bought for $900 million, giving it valuation of only $8.57 per user. liz, it all depend how much your -- again expectation what will happen in the future. is this where all the money is going to flow? if it doesn't, a lot of people will be left holding an empty bag. liz: it is more of a demographic too. how young are the monthly or daily active users. they want the youth. it is amazing what they're paying for this or is it? as we just mentioned, facebook's purchase of whatsapp for $19 billion all-in is the single biggest venture-capital backed acquisition ever.

david: it values whatsapp higher than 275 companies in the s&p 500 is whatsapp really worth all that money or is facebook making a huge mistake or paying too much? one shareholder says it is definitely worth it. roosevelt investment portfolio manager jason benowitz joins us. jason, good to see you. last bid before we got all details of $19 billion, is about $10 billion less than what was finally paid. which would lead one to believe that zuckerberg really wanted whatsapp. he saw value there what others didn't see. but the question is could he have gotten for much less than what he did? >> we think price paid is full price but a fair price. we think $42 a user roughly in line with properties like instagram and youtube. david: snapchat, for example, forgive me for interrupting, they were only willing to pay 3 billion for snapchat.

many say that so sort of similar? >> the growth in this asset has doubled in the last nine months in terms of how many users it has. reach ad point where 450 million users it really dwarfs the other messaging services. they're paying up a premium price for premium property in this instance. liz: you have a whole host of shares of facebook. when did you acquire them and what price? >> we entered facebook, march, april time frame. our average cost might be $27. liz: that is unbelievable, you're in the money hand over fist. you obviously like this. the stock responded very postively. here is the intraday picture, as minutes went by people liked this deal more and more. what would you like to have facebook do next to keep the value and eventually take some off the table? >> we like the current price of facebook at $69. what we expect facebook to do is continue to grow revenue at a face pace. they will introduce video advertising. they will monetize the instagram

platform and introduced targeted ads that people will pay the price for and drive growth higher. david: they are are lot of ifs, maybes, can, but we don't know they will. what gives you assurance they will be able to monetize this. >> in terms of their history what they have shown incredible ability to do and grow a user base an monetize it. hethey have done it with core facebook and do it again innovatively on the fly when transition to mobile took place. they were successful with that we're seeing that in instagram. david: beyond expectations? >> that's correct. liz: does it not make you a little concerned that this appears to be a bit frothy? i say that simply this is company that they're acquiring really doesn't have much revenue to speak of. everybody says, yeah, but it is different. we'll value the actual user we're getting. we heard a lot of that in 1999 and 2000 and we know how badly

that story ended. >> the way we look at it facebook is paying $7 per share of their own company to acquire this business. so we think that it is pretty clear this company, whatsapp is on a path to get to a billion users maybe in a year or two. if facebook can earn $2 per user at that level they justify their $7 a share price they're paying today and we think they're achievable. david: one thing i love about the deal, they made sure $3 billion went to just 55 employees that comes to $56 million per employee. suddenly tomorrow they will be worth a lot more than they are today. >> silicon valley is amazing place to work. liz: great american story. david: jason, thank you very much. congratulations. >> thank you so much. david: appreciate it. well, natural gas prices are up nearly 45% so far this year though they are slightly lower today. while that's burning a hole in consumers wallets it could actually be good news for investors. next we'll be talking to a money manager about how specifically you could play natural gas and

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david: natural gas retreating from a five-year high after inventory data shows prices fell in line with expectations. despite today's drop prices are up nearly 45% so far in 2013. what is the best way to play the recent surge in natural gas? we have alta corp managing director. dirk, is this all weather-related? is that what is driving prices?

>> absolutely, it is a weather drive. you have people trying to estimate where storage levels will be. in the wintertime we burn more than we produce. david: if that is true, i wonder, obviously we'll not winter for the whole year, i'm wondering why the short sellers haven't come in? >> because there is still more winter to go. everybody is worried about the winter cooling season especially in the southern states how much natural gas gets used to cool homes. then they warm them in the winter in the north. so natural gas is -- david: before we get to your plays on natural gas i want to pull back a little bit and compare oil to natural because because we've seen a price rise in oil as well but the thing about oil and natural gas, oil costs three times more than natural gas. we put together a comparison we want to show that to our viewers of the energy equivalency of one barrel of oil equals about 5.5 million british thermal units, okay? that is the energy equivalency. that is how much energy you get

out of a barrel of oil as opposed to natural gas. look at the price. a barrel of oil costs $103. 5.5 mmbtu of natural gas costs $34. it is about three times more, oil is, than natural gas. either oil is way overpriced or natural gas is way underpriced? which is it? >> what if they were decoupled and had nothing to do with their energy content anymore? that is what i think is happening because you can't put natural gas in your car and most people don't heat their home with oil. david: interesting. >> what we've seen is that decoupling because that ratio, everybody uses around a six to one ratio. that decoupled four or five years ago. david: oil is also easier to move around, and that increases its value because natural gas is more difficult to move but isn't natural gas becoming easier to move around? i mean you see more exports for example? >> we are starting to see exports of it but it is, it has

been more of a just in time type of inventory with oil being more of a longer-term inventory. and to change people's habits, 350 million people live in the united states. if they all have natural gas-powered cars can you imagine the millions of vehicles that would be involved? so any thing that would change will be evolutionary, not revolutionary. david: well, i would think if you're looking for plays in natural gas you would look for companies that not only drill for it and transport it but also explore the future of it. you have got several picks here. starting with arc resources. are these companies that could be sort of pushing the envelope of where natural gas will go in terms of making it, for example, more transportable? >> they be doing that. you're taaking about arc. arc was very revolutionary in canada using modern drilling and

completion techniques and through that have been able to gather a good land position and, effectively of very, very good operator. and, you know, in the natural gas industry, being a good operator is absolutely everything. david: how about the others in we have pay two exploration and development. by their name i expect they are developing better ways of moving natural gas. >> that is old frontiersman in alberta and payto, very savvy operator. very tight land base, extremely well-organized. a lot of canadian producers because of price of natural gas is lower in canada are have to become incredibly efficient. david: i have to ask one final question about the pipeline. are canadians getting fed up with no action here in the states with the pipeline? >> oh, we have our own problems with pipelines. i think we're probably a little more understanding than you might think. it is just nice for the

political issues to be somewhere else other than in canada. so, hey, we understand the issues. we hope they can be worked out in time. david: we appreciate your patience, we really do. dirk lever, thank you very much for coming here. alta corp managing director. liz? liz: david, remember when we last spoke to california-based blaze pizza? it was trying to get franchises started. it was serving up custom pizzas in two locations. wait until you hear how much they have grown in short time and which celebrities are opening franchises. we have ceo of blaze pizza and how he has done it. >> if you're looking for new real estate to invest in, we'll show you the largest mansion currently on the market in the whole country. get your wallets out. you may fall in love when you see it. got to watch. (vo) you are a business pro.

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o it's hard to imagine h much we'll need for a retirement that could last 30 years or more. so maybe we need to approach things differently, if we want to be ready for a longer retirement. ♪ ♪ liz: thinking about moving? you may want to look at a new study that indicates your geographical location could be a major factor in your overall well-being. gallup compiled a list of the happiest states based on an assessment of factors like health and optimism, access to basic necessities. two states receiving the lowest scores were, kentucky, coming in second to last, it is home to some of the most unhealthy habits in the country including

highest incidents of smoking and bad diets. the state with the lowest waiting, west virginia. by god, west virginia, which has been at the bottom of the list for five years. residents in this state continue very the most negative outlook regarding their futures. now let's get to the happy states. south dakota, where people reported the highest level of good emotional health. ever been, david? david: yeah, sure. liz: additionally the unemployment rate is the second lowest in the country and happiest state of all, go a little bit north, north dakota, the oil boom is working wonders for its economy giving it the lowest unemployment rate in the nation and increasing the ability of people to pay for basic necessities. david: that is why it ain't the weather that makes you happy. whether or not you have a job. people have jobs up there. a string of recent deaths and suicide in the financial word once again shedding the light on intense working conditions a lot of bankers face in particular the younger staff. liz: the perception among many people out there they face 100

plus work hour weeks and most times no days off. what really goes on? what is the impact it has on the long term? with us, alexandra michelle, professor at university of pennsylvania grad school of and former goldman sachs investment banker. i know banking can be high pressure, this string of suicides is disturbing. you've been on inside of an investment bank. does this surprise you? >> investment banking as you just alluded to, you start off and you work on wall street 80, 100 hours a week and average age on wall street is 35 years. the average tenure is between seven and nine years. because people can only take that for relatively limited period of time. david: well you actually did a study of the young investment bankers that sort of plays into

the idea how the stress works out. interestingly in your study, the first four years the adrenaline is going. seems like everybody is into it. they have all the energy and creative but that second four years where fatigue begins to set in. not only fatigue, depression, lack of creativity, a whole lot of things begin to happen, right? >> yeah. that you need to understand that bankers are hired partly on their stamina. so the banks hire from elite mba programs and when they innerview intellectual horsepower but also for the ability to juggle. so they select people who are enormously resilient and they are 22 when they start as analysts which are very junior bankers. my informantants or the people i studied were 28. even when you're 28, even when you're highly resilient, for four years you can do it. a little cold, insomnia, pack on pound, lose hair, sure but performance as is relatively

high. however after about four years that changes. and about a year four the pain becomes sometimes debilitating. chronic back pain. you read robert rubin's book, in uncertain world and conducts client meetings lying on the conference table because his back pain was so severe. and relatively severe illnesses set in. anxiety, depression. and what's interesting how performance is affected. technical skill, namely the accuracy of the banker still remains high. throughout the entire study. if you learn something well, you know math well you're able to do it even if you don't sleep that well. however, judgment, creativity, ethical sensitivity, those decline. that is really important in our knowledge economy because we don't compete on commodities. we don't compete on delivering the same product. the bankers compete on delivering tailored solutions to every client. liz: right. >> so precisely those attributes

that are most important decline under these working conditions. liz: there are some people who say, hey, we all have stress, we all have troubles. what is different now? we're coming out of recession. i would understand it a little bit more had this been two or three years ago, closer to many time when the entire housing market blew up, but to have so many. we put up the picture, this timeline. three jpmorgan bankers, a deutsche bank banker. we had all kinds of issues with many of these guys. we don't know what happened in many of these details but these are apparent suicides at a time when things have started to look up, the market came back, the people's 401(k)s have come back. what do you think is going on? is it endemic and a systemic problem within the banks and they have to look within themselves and fix the problem? >> well you started off by saying your audience members will likely reply that i feel the same stress. i think that is very important because my study shows that what you see on wall street is an

early indicator of what we're going to see in the economy in general. u implied this might be due to economic pressures. that is why people work hard. yes of course, people work hard when there is need to but it is also because wall street banks have devised organizational practice that is make people very adaptive anddhelp firms to change quickly but these same practices intensify the pace of work so that people work hard, even when there is no real need, for doing so. let me give you an example. some of these practice that is diffuse through our economy, one of the these practices is the results only work environment. this has been on wall street for a long period of time. people are only paid for the results they produce and you can come and leave as you want. people on wall street sometimes go to the gym at night, to bar during the day. that was implemented partly so people could work flexibly when

there was a client need. but it was also there in order to have humane hours. if you don't have to work just go home. however what happens in wall street and companies outside of wall street who implemented that it is a race to the bottom now. instead of working less, people work harder and harder because the results and results only work environment are so difficult to achieve. let me give you an example from consulting firm i worked with. the consulting firm just like many of the investment banks who now issue memorandum on how our junior bankers are not supposed to come in during the weekend so they're fresh. consulting firms have been doing this. it turns out people work secretively on weekend in order to get results they need to achieve and because everyone else is charging. liz: indeed. alexandra, thank you for your perspective. it is good, considering she has been on the inside. david: amazing to remember bbefs industry was melded into the banking industry in the late

'90s, banking used to be a 9:00 to 5:00 job. liz: bank, hours. david: financial services were separate from banking but they call got mixed together at the end of the '90s. that changed everything. liz: alexandra michelle. david: steep medicare cuts could mean higher co-pays and fewer benefits for seniors. they are are the not only ones who could take a hit. the outcome could have huge impact on you and your wallet. details coming up next. all stations come over to mission a for a final go.

this is for re this time. step seven point two one two.

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at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to youroctor. stping increases your risk of stroke. ask your doctor if you need to stop pradaxa beforeurgery or a medical or dental procedure. pradaxcan cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have haa heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effecects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your ctor about reducing the risk of stroke wi pradaxa.

liz: we love two things here. great pizza and entrepreneurs. it is perfect because we have quite the story for you right now of the last spring, don't know if you remember this, blaze pizza came on the program. they're serving up custom made pizzas. back then in march they had two locations in california. we always like to follow up on this. you can't tell us the economy is so bad. look how they have grown! they have 11 locations. they will open another 45 across the country. what is the recipe for success here? we bring back rick wetzel, the former cofounder of wetzel pretzels. it is great to see this kind of growth. you're not blaming bad weather. you're not blaming economy. you're doing as wwll as you would like to, right? >> we're dueing awesome. thanks for having me back, liz. it has been exciting year. people love pizza and everyone is saying now, we didn't realize this will be next big thing after burgers and sandwiches and

burritos for fast casual. we're having a big wave and we got it. liz: what the big wave is customized healthy pizza, right? give me example of what pizza could be make. >> we're bringing pizza at its root, light and healthy and with fresh ingredients and cooked with fire. blaze pizza you come down assembly line. you choose 45 different toppings. customize it any way you want. we fast fire at 800 degrees. it takes two minutes. there are all kinds of pizzas you can make. whatever yyu want. liz: fast fire, two minutes that. is fast-food. i like the whole healthy aspect but so did one of the largest franchisees in america. millennium run by junior bridgeman. those that remember the name, former l.a. laker and milwaukee buck. he has hundreds of all kinds of franchises. he has wendy's, chile's opening

a blaze. tell me the meeting and how you got him to look at this. >> i can't get inside his head. what i know he was looking at different concepts. looking for a third concept to growth which. it speaks to the potential what this category can be and potential of blaze pizza can be. we picked up larry levy and his family. we picked up a 100 unit hardee's franchisee and buffalo wild wings and panera bread. they're all gravitating to this3 and see it as a big opportunity. liz: i think i know 50 larry levis from high school. which larry levy is. >> larry levy from levy restaurants. chicago really well. liz: i know larry levy of hollywood. let's get to the point of big news that came out recently that would affect you in some way of the president would like and some other people like to raise the minimum wage and it looks like it is going to happen. how does that affect you? >> well you know what? we take a, take a page out of

the playbook from shake shack. one of big tiers there is three legs to the stool. great quality product, a great environment and great crew. part of having a great crew is paying well. we're already paying our crew well. we believe that you ought to pay above minimum wage. we like to have longevity with them. we don't see it going up as being an issue because we're already pretty above that. liz: i have to rap wrap but how much do you pay them. >> varies by store and depends on experience. but we pay them well because we want them to stick around. liz: well it is working. really is. great to see you, rick. we want to continue to follow your success and see if you launch a publicly-traded company. will you come back. >> all right. i will. liz: rick wetzel of blaze pizza, coming to a city near you, we can only hope, right? david, over to you. david: the health insurance industry is anxiously awaiting to get its first look at medicare advantage payment rates in light of changes with the new health care law. investors are watching as well.

we'll tell you what to expect. that is coming next. how much would you pay for apmansion with an estate shaped like a guitar? not actually quite as expensive as you might think. details when we go "off the desk." ♪ that's right, no hidd fees. it's just that i'm worried about, you know, "hidden things." ok, w's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. wellnot one.rue. that's nice. no hidden fees, no worries. ally bank. yo money needs an ally. iwe don't back down. we only know one direction: up so we're up early. up late. ththinking up game-changing ideas, like this:

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is. david: centers for medicare & medicaid services set to release preliminary medicare advantage payment rates next year tomorrow with final rates expected in april of this year. liz: rich edson back with us live from d.c. with some ever the numbers. rich? >> well, liz and david, this means billions of dollars to private insurance companies like aetna, unitedhealth and who imagine that. -- humana. they can select the private plans instead of medicare and government reimburses the insurance companies. the payment rates are at issue because obamacare requires government to cut hundreds of million of dollars from medicare advantage and spends it on insurance subsidies. insurance companies embrace for cuts in government reimbursements 6 or 7%. lawmakers are asking the administration hold back on implementing the full cuts. insurance companies pushing back

for valuable voting bloc. ahip, insurance lobby, seniors and people enrolled in medicare advantage plans could see benefit reductions and people one increases of 75 to $135 per month or 420 to $900 next year if medicare advantage payments are reduced 6% in 2015. that is according to new analysis by oliver wyman, prepared for the american health insurance plans lobby. s&p capital analysis says insurance companies have taken steps to offset rate cuts cutting benefits within medicare advantage to narrow provider networks to cut costs. chief actuary for centers for medicare & medicaid services, seniors will see reductions in services if the government fully implements medicare advantage cuts. we should know the cuts the administration is proposing next couple days. back to you. david: just as they're growing in popularity. >> right. david: rich edson. we asked you on twitter and facebook if you think facebook

paid too much money for what's app, about $19 billion or will it monetize it -- whatsapp? jim on facebook wrote in to say, no. all they are doing they will insure they are around as a company that much longer. liz: "off the desk,." largest mansion currently on the market, 55,000 square foot state in, alabama. this is owned by former ceo of med partners, larry house. great last name. david: look at that. liz: comes complete with pool, horse stable and grounds shaped like a guitar. david: i like that. liz: the home was built in 1997. reportedly cost $26 million. the megamansion dropped in price, for sale for $13.9 million. david: wow. groupon as we told you initially was up 10%. it has since gone down about 11% after-hours. no telling whether it will stay there tomorrow by the end of the trading day but this is a big reversal of fortune, a 20% move

in that stock since the earnings were announced. liz: it has to do with outlook for the current quarter. looking for a loss now. analysts were hoping for a gain. we'll be watching the stock. meantime "the willis report" is next

gerri: hello, everybody, i'm gerri willis. right now on "the willis report", gm under fire over recalls. did the company knowingly put consumers in danger? also, more big changes coming to health insurance plans. companies pushing workers on to private exchanges. and how do you do that? the right way to put money in health savings accounts. we're watching out for you on "the willis report." gerri: tonight, flyers under threat. the department of homeland