workers to a state governor who wants to drill the land on his own terms. energy giant riding the nat-gas rally. we have you covered with biggest stories affecting your investments. because even when they say it's not, it is always about "money." adam: hello again. i want to show you something. check out the big board right now. dow is up five points. s&p 500 up two points and nasdaq up six points. yesterday we had arne sorenson, marriott hit a new 52-week high today. you were listening and liked what he said. nicole petallides on the floor of the new york stock exchange. nicole what have you got for us? >> good afternoon, adam and everybody. we're looking at a few movers, some companies that released some news and look at stocks that go along with them. gold is up almost seven bucks. newmont mining came out with

weaker results, posted a fourth quarter loss today. right now it is down 4.25%. they have reduced their gold reserves. so it is a quarterly loss. you see the stock is to the downside. also, and by the way over last 52 weeks down 40%. shutterstock another name on the move because of its quarterly results. better than expected numbers and as a result up 18% shutterstock a commercial business provider. late but not least micro vision. sony is developing a projector module using technology developed by micro vision. so micro vision up 7.8% on this news to develop high-definition resolution imagery. that will help the company along. that is why you're seeing the top there on that won. back to you. adam: nicole, thank you very much. gap is making huge news on wall street and main street. they're raising hourly minimum

wage to nine dollars this year and 10 bucks in 2016. the landmark move will help 65,000 employees across the company's six brand which include old navy and banana republic. here in first on fox exclusive, old navy head of stores and senior vice president. steve, good to see you again. let's get right to this. this is a pretty dramatic step. why did the company decide to make this pay wage increase? >> adam, first of all, good to see you again too. we're coming off of eight strong quarters. we're operating from a place of strength. i think you're always contemplating your next strategic investment. whether that is marketing, whether it is i.t. in this case it is employees. our employees are on the front line. they're the face of the brand to the consumer. we believe our employees are not only our greatest asset but now and in the future they're part of our competitive advantage. adam: this is tough business, retail. comparable store sales for the whole group is up 2% but old

navy, since january one, up 4%. you're doing more correctly than just giving people a pay raise. >> well, you know things are going well. like you said, with the macro environment out there right now you have to look for every advantage you can to continue to do well. we think this is the right bet to continue that process. adam: let me ask you about this. the founders of the company, the fishers, actually had a motto, do more than sell clothing. how do you keep going forward? because it is such a tough environment and it is clothing you sell. >> you know, so much of this is all about the fishers. when you think about this move we made, it is very true to our guiding principles. they did talk about doing more than just selling clothes but don always talked about also doing what's right. he always spoke about leading with the heart, about community. this is a culture that cares and so, yes, as much as we're running a business and driving it to our people and we put our people first. so that's a large part of our value set and why people love

working at gap. adam: i will pull up gap, inc. right now. the stock is up 1 1/2%. >> excellent. adam: old navy, banana republic, when you make a move like this, your competition, does it make them sweat when you make a pay raise across the board roughly for 65,000 people? >> i'm sure we got some people's attention. the reality gap, inc. is leader in the industry. leaders take bold strokes. leaders do what they believe is right for the business. i'm sure our competitors are taking note. they will make their decisions but we know this is the right move for us. adam: can you share with us, i know gap, inc., is reporting next week but any plans for expansion of old navy here in new york city? we have banana republic seems like on every corner but only three in manhattan. >> we're looking for opportunities for old navy. we're watching real estate. we have international expansion we're looking at but we are always looking for the next opportunity out there, when you talk about the minimum wage,

discussion going on in the nation and you guys being out in front giving this pay raise, how much is it about attracting potential employees and how much keeping people already in the store in the store? >> a large part of it is that. first of all it is about retention. with retention comes stability. with stability comes strength. and with strength comes, becomes competitive advantage. part of what is also wrapped up in this is about attraction. let's face it. i'm sure not our competition is taking note of this. there are people out there, we have great people in our stores now. we're always looking for the opportunity to bring even stronger talent on into our stores to continue to feed our competitive advantage. what is important on something like this, adam. i started as a part-time sales associate 35 years ago. reality somebody made an investment in me and now i'm sitting here talking to you. so that's part of the message we're sending to our employees also. adam: out of curiosity, do you keep a metric how many employees work their way up and rotate into middle management, senior

management? >> it's a large part of what we focus on. again i think sometimes people get into retail thinking it will be a part-time job, so did i 35 years ago. the reality we track how to get them from level to level all the up the pipeline. just had my team in here again this week talking how we continue to strengthen the pipeline of talent because, that is what feeds a great company. adam: well look we'll watch gap, inc., earnings. always great to have you here. i can't let you go without referencing one pair of pants i bought at old navy. most comfortable. much boy do i get looks but i don't wear them in public. >> adam, you said that last time. i was going to ask you, time to replace the shorts. new shorts, come shopping. adam: i will head down there, check it out. where can i get a pair of shorts, especially with spring coming for under 10 bucks? >> you know what? we have great deals going on and brand new product came in so

com check it out. adam: i look forward to it. steve, congratulationsings being forefront of all of this. we want to turn our attention to jo ling kent with late moving stocks. what do you have for us? >> groupon, they're down about 18%. earnings whether disappointing yesterday. after the closing bell the outlook disappointing for the first quarter as well. they're expecting 710 million to not looking great on groupon. look at underarmor. that stock is up five 1/2% right now and on good news despite all the troubles or reported troubles of the speedskating suits in sochi, underarmor renewed their contract with the u.s. speedskating team and that will last through the 2022 olympics. priceline shattered earnings expectations yesterday coming through with great fourth quarter earnings. that stock is up more than 3% right now. booking.com, which is one of their subsidiaries, their ads in the u.s. done very well. air and hotel reservations up as

well. good news out of priceline. definitely one to watch. adam: priceline stuff, i know captain kirk is going to be happy. jo ling kent, thank you very much. >> thanks. adam: coming up, state governors are taking a controversial stand. they want rights to drill the land on their own terms. our exclusive interview with one oo the governors taking a lead on this coming up. coffee prices are set to rocket and is your cup of joe on the line? a drought thousands of miles away is about to rock they were coffee shops like this one where we're live. more "money" coming right up.

adam: dow still in positive territory as a bipartisan group of governors calls for states to take the lead on oil regulations instead of the federal government. republican governor phil bryant from mississippi is leading this charge and he is joining us in another fox business exclusive. thank you for being here today. why do you think it is better to let the states take the lead on drilling regulations than the federal government? >> well, adam, thank you for having me. people say it is controversial and something new. actually governors have been

regulating their energy production and exploration since 1935. so what is new is now we see an overbearing federal government coming in, using the epa regulations that are being developed now that will hinder the production and exploration of oil an gas in our states. we have done a remarkable job since 1935 to make sure it's a safe environment which we produce oil and gus. we helped this country become energy independent. we're leading the orlando in oil and gas production and the oil production council joined together with 12 other governors to say to the federal government, don't fix what's not broken. we're doing a remarkable job of monitoring our environment, our environmental regulation, with our states, our exploration, our refinery capacities and, use and so it is something that the federal government would have to

deliberately change that exists today. adam: let me ask you from a business standpoint, wouldn't it be easier if i'm operating oil exploration company that i'm operating under one set of regulations instead of multidifferent regulations from state to state? >> absolutely, particularly, adam, when you have got a federal government and an agency like the epa that appears to be determined if you will, to slow the production of oil and gas particularly on public land. one set of standards established by the epa on hydraulic fracturing, for example, could drive up the cost of natural gas. that affects small businesses. it affects every individual. it affects the entire country during this difficult winter. adam: governor, i am a little confused. i think what i was asking you though, wouldn't it be cheaper for me as the oil exploration company and especially for investors who want to look to invest this companies that are fracking to operate under one set of rules set by the federal

government as opposed to different rules from state to state to state? >> absolutely but if you look where the states are at, you have the ability to understand exactly what a state's going to do from its history, how its dealt with its energy capacity and production. for example the frazier institute says mississippi is the second best place in america to invest in oil and gas. so as a company you can pick, you get to say look, i can go to mississippi because they are the second, number two in the nation for permitting speed. i can go to texas. i can go to oklahoma. so you can, as a business, i know this is a strange idea but you can move your investment. you can determine what's best for your company in oil and gas production and pick the state that best suits you for that purpose. adam: it creates jobs and so many people believe that fracking and production of energy in this country is off to dramatic start that will change our futures. thank you so much for joining us governor phil bryant. >> thank you, adam. enjoy it. ed. adam: january home sales numbers

are out, boy, are they lucky. real estate titan don peoples is here to tell us whether we're moving towards a renters market. allied financial and seamless web, each getting set to join the already crowded ipo field but could the booming ipo market be the second coming of the dot-com bubble? we asked people a question,

how much money do you think you'll need when you rete? then we gave each person a ribbon to show how many years that amnt might last. was trying to, like, pull it a little further. [ woman ] got me 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need foa retirement that uld last 3years or mor so maybe we need to approach things dferely, if we want to be ready for a longer retirement. ♪

which will cause me to miss the end of the game. the x1 entertainment operating system lets your watch live tv anywhere. can i watch it in butterfly valley? sure. can i watch it in glimmering lake? yep. here, too. what about the dark castle? you call that defense?! come on! [ female announcer ] watch live tv anywhere. the x1 entertainment operating system, only from xfinity. adam: shares of dish surging to new high after second largest u.s. satellite tv company deliver ad 38% spike in fourth quarter profit. just about an hour ago, dish chairman signed in on the time warner cable comcast merger. saying that deal will, and this is a quote, send a seismic shift

across our industry. concentrate broadband content in a nationwide player. or in other words, you and i will pay a lot more so we can get online if this deal goes through. talk about ipo mania. seamless web and allied financial among latest companies gearing up to go public. 33 new companies gone public this year. fears drawing over a possible ipo bubble. joining us, david menlow, president of ipo financial.com. let's keep this simple. for the individual investor, when we hear this craziness about ipos should we be even concerned about a bbbble or not? >> for the individual investor they always to have be concerned about the ipo market. this is pay as you go and whatever you pay that is what you get. most of the time old adage, if you want the deal you can't get it. if you don't want it you can get all you want. individual investors are always on tail end of that. adam: individual investors and people watching, chances are we don't get in on initial public

offerings. twitter, gting in on twitter, although turned out well for people that got in, very difficult for people in our level of the game. >> the problem the individual investor doesn't know they need to deal with broker that actually does ipos. for example, bank of america, merrill lynch or morgan stanley, just to pick two names, just because you have an account there, doesn't mine the broker will get the allocation. on that basis you ask and ask and nothing ever happens. adam: there is way to make money. you have to be patient. you were telling me about the secondary market or offerings as a way to go? >> really untold story of this market in new issues.% we have secondary offerings with companies becoming public that issuing more shares. those shares are being done very quietly. they are more than a 4.25 more deals than you have ipos. adam: i will look for the numbers. it is in the hundreds of millions of dollars. actually in the billions compared to what we have with ipos. there were 145 secondary

offerings last year than the -- >> year-to-date. adam: you're right, than 33 ipos year-to-date. how do you get in on the secondary? stay in touch with the broker? >> yes. adam: they're not sexy things we make a lot of attention on tv. >> characterization you need for this. these are not sexy at all. they are companies far more stable and you won't have price spikes you see with the ipos. underwriters have to entice new investors. stock closed at $45. we're coming out with this offering at $44 just to pick a number. adam: seems to me if you're one that wants to get in on secondary offerings, but you pay attention to earnings reports, they like to announce we'll offer shares, we'll come to market? >> fundamentals have to there. otherwise you take a nosedive down in the position. well i got a secondary, but why does it keep going down. that is 100% correct. adam: as we wrap up. i will give you last word on this. get back to the initial public offerings. will which see 2014 replicate

what we saw in 2013? banner year or best year since 2000? >> i think this is going to be eeen better year but will be a year not anything close to bubble mentality. we have deals coming up at good valuations and the underwriters are very attuned to what the investors want. for example, there was a deal that was supposed to come out this mmrning called sundance energy. that stock couldn't come because the price range had to be adjusted lower and company said, no, we don't want to do it. there is ebb and flow here of the good deals will do well and one that is are marginal will not just be dumped on to other people. adam: person on top of that is david menlow. i hope we have you back on "money" to keep an eye on the market. david, thank you. a new battle has sports fans and mediavesttores asking, where will i watch the game? the battlefield is changing as we speak. plus why a drought thousands of miles away just might have you paying more for coffee right here at home. ♪

♪ ♪ ♪ [ tires screech ] chewy's finds itse in a sticky situation today after recalling its new gum. [ male announcer ] stick to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app

from td ameritrade. adam: got a little over hour 1/2 left in the trading day oo the we want to check in with nicole petallides in a bit. they will recall the forced wristband. the ceo says recall is quote, out of abundance of caution -- fit bit. some users complained of rashes wearing the force wristband. that is not a pretty picture. fit bit is recalling the wristband out of abundance of caution. nicole, you're watching this one. >> nordstrom, the popular department store came out with some numbers and stock is to the downside on heels of these numbers. turns out that they have had some shrinking sales. they obviously complained about the consumer and cold weather and the like and right now the stock is down 1.1% for

nordstrom. and over the last year or so, up about 9%. and then i'm going to take a look here at ruth hospitality. when i see ruth hospitality may not ring a bell but how about ruth's chris steak house? does that ring a bell? smaller companies with 500 million in market cap. a little more volatile. you may see more after jump than if it were a large cap. jumped 12%. higher than expected quarterly profits and higher same-store sales in the restaurants. so that is good news there. intuit getting a couple of upgrades at jeffries and wedbush. jeffries raised its earnings forecast. it is online tax preparation company and they're seeing higher demann. under their umbrella, where the demand continues to be strong also for quickbooks. you have the chief executive saying that their goal is to double the five million customers over the next five years in that particular group, which has the quickbooks intuit right now up five 1/2%.

adam: nicole, did you have to mention ruth chris's and i'm so hungry and steak sounds really good. nicole petallides. see you in a few minutes. looks like digital meet yaw is -- media is declaring war on sports. national hockey league and national basketball association are teaming up for new digital sports network. what is ramifications like owners of this network and where will you watch the big game? more than a little spay l spare changed is at steak. wee have the richard director of researched for al freed freed and company. more important where will we watch in the future? >> this is about mobile device and tablets, men, especially with major league baseball -- adam: 18 to 30, that's the target. >> for social marketers, they're like the yeti. whenever you get them in the clearing which is sports the target something good for the social networkers and there is a lot of display advertising to be

had. also, you know, sports fans, super fans, they will pay big money to watch the game mobile, digitally, right? so you have the nba network and mlb network and you know these services charge between 10050 and $300 a year for this service -- 150. adam: is there potentially a day where fox would not have the nfl and it would be straight to digital? >> well the problem of disruption like netflix disruption in this space is the, sports teams run franchisee networks, right? they have cba agreements between players and owners of teams and you have regional franchises for the sports content, right? fox used to -- own regional network. all that infrastructure and ecosystem is designed to maintain the price of the sports and so to have somebody come in as a disrupt tore and say, you

know, we're going to disrupt that whole ecosystem -- adam: leagues don't want to disrupt it but -- >> talking about $5 billion in revenues. local sports overall, maybe $50 billion a year industry and what you really kind of need to see is the collapse of cable in order for somebody to come in and disrupt. adam: we're not about to see a collapse of cable. if the time warner, comcast deal goes through we'll see consolidation that strengthens position. at end of the day it is about data, the ability to deliver whether through that or tv. >> big asset time warner has is the l.a. dodgers, right? adam: yeah. let me ask you if i'm an investor right now and watching, willing to be patient long term couple years who stands to ben it from what is announced here? should i invest in data provider or someone carrying the stream? >> we don't cover time warner. i've had positions in and out of time warner a long time. any given day i might have a couple thousand shares in position but time warner is

going to spin out the magazines. so this is about leveraging the advertising, influence of time warner and magazine side, to bring some of that digital revenue in-house, and you know, and leverage, you know, those assets across the board. and so, that is kind of an interesting, when ever we see, fox, right? shareholder value. get rid of the old, stodgy asset. you have a lot of new assets. in this case they're investing in the stodgy aaset to make it look more attractive. maybe it will work. and so maybe that brings to light greater investment opportunity. adam: richard, we'll leave it right there. thank you very much. but i am sure you can still watch the big gail on fox and the other networks. >> without a doubt. adam: all right. richard, all the best to you. coming up, nat-gas prices they're on a bumpy ride after hitting a five-year high. consol energy ceo j. bret harvey will be here to say why this may only be in the beginning. you could invest in this if you

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♪ sharing's ner been better for business. iwe don'tack down.k, we only kn one direction: up so we'reup late.y. thinking up game-changing ideas, dozens of tafree zones across new yorstate. move her expand here. or start a newbusiness. and pay no taxes r 10 years. withew jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com >> good grief, standard & poor's downgrading ukraine's credit rating to triple c the agency says the country is likely to default on its debt as violence raises uncertainty about russia's financial support. american agriculture experiencing a boom with market

values across livestock reaching record highs. the government survey shows number of farms fell to 2.1 million in 2012. that is 4% drop from five years earlier. actually size of a farm grew from 418 to 434 acres. railroads reaching an agreement with the transportation department to adopt voluntary safety measures after a series of accidents involving crude shipments. agreement calls for railroads to slow down oil trains through major cities, increase track inspections and bolster emergency response planning. that is the very latest from the fox business network, giving you the power to prosper.

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see what's new at projectluna.com the expected to continue for long time in the future? >> oh yes. we have a big position in natural gas. a good example is last year we drew our reserves 44% and we are

going to grow our company on the gas side 30% compound it per year for the next three years so it is a real opportunity for not only our shareholders but america because it is red, white and blue gas. adam: useful five coal mines not long ago but that decision to raise capital for the increase in investment or was it because -- i know the administration has in difficult with the coal companies. >> the the good coal mines. we are very asset rich company but we sold the least of their assets to grow the best of our assets. it was about financing our gross on nicole's side who. it is a transition for us because we do these things which is why we are 150 years old. charles: is the natural gas boom in danger of getting -- i am using an analogy, does that bubble get broken because you have environmentalist's and administration which seems

hostile to the continuing investment in fracking and natural gas production? >> there is resistance. anytime you make a change you see resistance but what we have done with technologies is figure out how to unlock the wealth areas of natural gas that are good for the economy, good for america and good for low-cost fuel going forward so we think that will be solved and red, white and blue energy is good for us for energy independence as well as there is always resistance to change but i think it will be fine. >> stock is up today, not terrifically but anything in positive territory is good. we appreciate your being here, thank you very much. "countdown to the closing bell" with liz claman is a few minutes away. liz: people in business love to glean nuggets of ideas how to

win from sports people. three of the biggest olympic winners, men's love stiles the winners, gold, silver and bronze all men's u.s. just got make. they are going to join up and we are going to get how they overcame massive adversity in each of their own stories, they bring here in studio traipsing around with me, i love these guys because on top of it, they are really focused on their future, their career, on business but they all over came in different ways some serious obstacles. and we are hoping you get some lessons from the mountain from our three medal winners. it was amazing to be with them and we do you hear what they have to say about working as a team versus individual wins. adam: you are triathlete, you get some advice out to take sports lessons into the business

world. liz: i am so lame completed to them. i am slipping through the water. we all can win from certain sports analogies. i guarantee our viewers you have to listen to what they have to say. a couple of them underwent unbelievable, real problems, real stumbling blocks. believers and thinkers. adam: don't forget "countdown to the closing bell" starts at 3:00. we only had an hour and 20 minutes in the trading day. stocks i taking a late turn for the worst and we are bringing it down for you. dow down 30 points. we are going to stand on it.

adam: housing stocks are rallying at this hour in the face of another lousy report on existing home sales look like those builders are banking on spring bringing housing boom. here to break down is john peoples, chairman and ceo of the people's corp. and cheryl casone. let me start with you. do these numbers surprise you? >> not really. we have a tough january winterwise but more importantly inventories are shrinking considerably. the best products have been on the market was the overhang from the recession. those are gone. there is not a lot of inventory and i think people are optimistic about housing stocks because new homes are going to be entering the market and that is what is going to move things forward and we need more construction which is beginning to take place now to increase inventories so we can have a

more robust year. cheryl: that is why we saw prices going up. that is true and inventory is low. you see the builder is rallying on that news that there is another issue. the chief economist brought this up, we are gearing up for what could be a very rough spring selling season. this data, correct me if i am wrong, this data was not necessarily all weather-related. it was chilly in the northeast but the sun was shining in much of the country and the data was still rather weak for existing home sales. i wonder if you are concerned about that? >> florida for example, miami, very hot market, one of the top three markets in the country and a big part of that was all the inventory built in the boom years. now that is gone but now new construction is taking place,

throughout miami beach, more instructions were announced, this sale activity in miami that is not getting recorded yet because they are presold and the unit's won't clothes for your two because there's not enough inventory so you have a backlog, the inventory that was the overhang is gone and now the lending is beginning to free up. adam: i want to ask about this. free-market land investor might look at buying to make money, you just brought up miami. what about -- i know you like new york and philadelphia. why new york? horribly expensive here, seems to me it would be better to rent in new york and why philadelphia? >> new york, the story for new york is the outer boroughs because manhattan is so expensive when people think of new york people outside of new york think of new york they are really thinking of manhattan. brooklyn, queens, the bronx, all

of those have gotten tremendous upside potential and our company is getting more engage in portland because we see upside. philadelphia i consider the greatest lost city in america because of it is lost between n.y. city and washington d.c. financial capital and political capital of the world's. philadelphia is one of the most important cities and it has tremendous architecture, tremendous cultural activity, sports teams, entertainment, growing job base and it gets overlooked. i see that as a great opportunity and values are real low relative to what they cost to produce and what the two of this city's that book them do. liz: if memory serves you had some projects in new jersey a few years ago. what about the garden state? >> we have actually looked at the gaming opportunities in new jersey. new jersey is not driven as much

by multi families, single-family environment and the environment where you get the option of doing both you have multi family and single-family homes. philadelphia is strong for that and you can live in close proximity. new york, the arrows to be both, new jersey is an interesting market but it is spread out. i like jersey city, i like hoboken. i think newark has got some good potential, the mayor is a us senator for new jersey so i think newark could have some options but i like philadelphia. -- >> let's get it on the record. cheryl casone, as always good to see you here. next your cup of joe could get a whole lot more expensive. local coffee chains like this one in manhattan could be hit by drought in brazil not to mention a huge hike in the price of milk. you can never have too much money. you are going to need it to buy

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adam: on wall street or main street here's what is losing money, hewlett-packard isn't printing any gains today, shares falling to a new low despite topping estimates on ads revenue. investment management co and 30 million shares meaning it is losing $12 million today. verizon shares are dialing down. the companies in the midst of a tiff with netflix. consumers are saying streaming speeds decline allowing to management company's 58 million shares, and lost $52 million so far today. barnes and noble the asset management, buying 51% of the struggling bookstore. shares climbed off the shelves, hedge fund chesapeake partners though 2 million shares making $1.9 million today. how many cups of coffee had you had today?

one really big one? saber that delicious hot joke because it could be burning a hole in your wallet disappeared drought in brazil has coffee bean prices jumping and higher s sugar prices mean that cup of joe in the morning is going to get pretty costly. we go right to the cme with commodities trader andrew keen to explain it there is any end to this? will get a break on a price of coffee beans? >> i am looking to buy it at any pullback, it is up 43%. coffee needs to be more expensive a couple years of. stock up 280 in the future, sold off the hundred dollar level and is of very high but it has gone almost parabolic. anything in this world is willing to pay someone is e is willing to sell and just like gold as well cycad by a deer but looking for a pullback for the 143 bubble where it broke up. this is also the level where it opened last year. the drought in brazil was pretty bad. why not -- we have plenty of

snow in chicago, you have plenty in new york. honestly, coffee looks very strong. i will be buying get on pull back, looking at a second derivative plan coffee prices going up really high. what will this affect? you would think it would affect companies like starbucks, duncan doughnuts, green mountain, however they actually have hundreds of millions of dollars of coffee in their warehouses so it is not a play on coffee shorting starbucks for duncan. the simple one is to have them in a pullback, looking to buy the level at 143. adam: you see this happen, we hear about drought, we will have a smaller crop harvest and then a record crop harvest. any chance these predictionssof a smaller harvest in brazil could be overblown? >> there is always a chance. stocks and commodities always overreact on news.

if there is an overreaction of fact is if we don't get the coffee we need from brazil there are nodding of countries in the world that can supply enough coffee brazil provides for us. brazil takes up one third of all the coffee production in the world so if this drought is real coffee futures are going to 200. i would rather buy out a pullback instead of a parabolic higher. adam: e.u. pointed out of vietnam is the second-largest exporter of coffee beans after brazil. i figured it would be a country of africa. andrew king, we appreciate your being here because we need that cup of joe in the morning a lot of us. stocks and duncan donuts may have serious hedging strategies but what about smaller coffee players? gregory's coffee in new york, that side of the story. you are expanding the number of stores you have got, but could a spike in the cost of coffee

beans hurt you? >> yes. any time the price of coffee changes affects my business. our strategy is always to continue to survive value targets, workout welfare so far and the law continuing to expand the way we hoped we could. adam: we think of the big, >>, duncan, starbucks which have had and have plenty of coffee off to the side but can you keep the price of a cup of coffee you are offering? can you keep it stable depending on how high the price of coffee goes up or will you have to raise your rates? >> eventually we will have to raise our rates and prices continued to climb. like the person said earlier, expensive when they are closer to $1.50. we recently experienced crazy-coffee but it stabilized the little bit. we have to make adjustments to what is going on in the market.

we can hedge small companies like myself can hedge a few months out but we do try to protect ourselves. hopefully things regulate a little bit more. and that affect us as much. adam: i don't want you to give away any proprietary secrets but in a coffee store like yours there are new buyers, people congregated coffee stores like yours to visit with friends and enjoy a good cup of coffee or something tasty. where's the money made? on the coffee or the other stuff? >> for me it is about the coffee. we are about coffee first but obviously we are selling the experience. when people come into our establishment to get great service obviously we care about the coffee but we are giving them everything. they want to stay, feel comfortable, feel invited and like i said that helps us provide value and the more value we provide customers if i need to raise my price to 10% won't. too many guests, they are willing to accept that part of

the business. we provide so much more than coffee, we were able to handle slight swings. adam: anyone who can make a business successful in the city of new york has got to be a genius with all the licensing you have to go through but how do you eal? seems the price of everything, i think milk is going up $0.60 a gallon. that will hit you, isn't it? >> milk deliveries, hearing about that is a little disheartening. like you said there are so many costs involved in running a business and constantly hearing about prices going up. hopefully if we continue to provide all the value we strive to then customers will understand because that is the only way to survive and get great product and if we can make our margins and continued to thrive in a city like new york which is so expensive to run a business in. adam: how many stores do you

have? >> 42 broadway right now, our seventh location we opened two days ago, three more under construction so hopefully by mid april we will have ten locations in new york city. adam: i did not realize the imam was growing coffee beans. is there a different in flavor of the beans? >> vietnam doesn't grow -- they grow different variety of coffee. it is something you might see in canned stuff in the supermarket. we also have been switched is what you will see in brazil or southern america. the topic of cancer and capricorn. adam: i love my cup of joe. when i got off work in two hours. continued success. checking the dow, we are still in negative territory, but that

could change. has come back a little bit. "countdown to the closing bell" is going to starting roughly 20 seconds with liz claman. ♪ liz: facebook dropped a bunch of cash to lend a bunch of users, game changing without spending time by using your influence, putting you on the same level as business luminaries like bill gates. will linkedin stock that a bump from this? baking mystery, team usa at the podium at the first-ever olympic men's event in sochi, a listen in perseverance, strength and teamwork. what can business leaders and investors learn from these medal winners? the men's look team reveals their fight to the top. google everywhere. tired of all those pesky digital roadblocks when you try to log into wireless hot spots? there will soon be an