tv MONEY With Melissa Francis FOX Business April 21, 2014 2:00pm-3:01pm EDT
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avoiding the stock market and it is costing them big. gunning for your wallet. the new lengths companies are taking to see how you spend your money. from cuba to the majors, he is one of the major league baseball's biggest stars. but yasiel puig didn't make it on his own. how mexican cartels are funding america's pastime. even when they say it's not it is always about money. melissa: where do you get the most bang for your buck stocks or real estate? according to the national association of realtors, medium home prices are up 11% since march of 2009. meanwhile, the dow is up 150%. the s&p 175% in the same period! new studies show investors are choosing real estate over stocks
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joining us now to discuss, liz macdonald, scott martin and mark madsen of madsen money. thanks to all of you for joining us. it is staggering to me, if you weren't in stocks you really lost out. scott, what do you make of people's perceptions out there. >> their perceptions are usually wrong, melissa. that is the sad part. look at some of the surveys, said the best time to invest in real estate was? ' 06, '07, 'and '08. we know how that story ended. real estate provides great value and fund to own. typically not a leveraged transaction. you're typically on the hook for a lot more than you have to put down. what i don't like as advisor is liquidity trap. real estate you have hard time to get out of. real stocks, bonds, you can get out at certain time. you have to watch the lockup with real estate. melissa: emac, interesting
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people got burned by real estate and stock market at the same time. >> that's right. melissa: yet they have lingering feel about stocks. if you got out of your 401(k) or not in the market or the dow you missed a lot of money but they feel good about real estate. i don't get night that is good point. i hair exactly what scott martin is saying. i'm wondering if the numbers some of these guys put up, i'm saying scott martin, i'm saying analysis, factor what scott is pointing out. you tend to get tax deduction for the mortgage. you get, don't put all cash in as a stock play. stocks have 8% average returns since world war ii. i'm not saying invest in swamp and expecting rainbows and sunshine but depends on the market you're in in housing. sometimes you could do better. if you feel like throwing your money getting a tax deduction, it might be food to go after real estate where a blue chip company is operating in that market. melissa: all real estate is local and i understand this is the national average, 11%.
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still 11%, versus the s&p. 175% in the same period for s&p. mark what do you make of it? >> if you're choosing real estate over equities you're making worst decision ever. march of 2009, you're looking at s&p, just the s&p, up 282%. if you're looking at small or small value stocks, think about this, $100,000, would have been in that index, $390,000. >> wait a minute. you guys are basic argument now that the real estate, federal reserve will always come to the rescue. you will always be able to sell at the top in this market. got to tell you something we know we're in deflationary environment. interest rates will stay low and they woken stay low forever and fed is pulling out. >> here is the problem. don't try to predict interest rates. don't try to predict market. if you're hold, 15, 20 years, s&p at 11%. real estate coming seven. >> that 7% --
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that is 7%. melissa: hang on. >> that 7%, 7% doesn't take into the tax deduction though. it could be triple t could be 30%. could be 50% depending on market. that is all i'm saying. >> you may lose all your money because you leveraged your property. melissa: scott, i will let you have final word. >> leverage is tough, melissa. the overall number for real estate is tough. some estate does better than some stocks. i think liquidity option. you could get stuck in real estate for years if you can't sell night that's true. that's a great point. melissa: leave it there. you guys will stick around for the next session. let's look at the market. energy stocks really popping. alan knuckman down at cme with more on that. alan, energy leading the way. how come? >> i don't know exactly why but i know it is leading the way and nice shift out of the technology driving the bus in the stock market. i think it's a very healthy sign having energy stocks lead because it shows the ability to
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pay. the fact that crude oil is holding up $100 a barrel. we're trading between 95 and 105 for 2 1/2 months. so i look at that as a very positive sign. melissa: alan, let me ask youings about we're in a tight trading range, not at love volatility or volume as well because people are still on holiday. what do you expect for the rest of the week? >> right. we're seeing a lost earnings. this is very important earnings. a third of s&p stocks report. keep an eye on apple. i mentioned about this couple monthed ago and got poo pooed. apple is in position to make a big move, not necessarily up maybe but i think it could make a big move. you could see 580 in apple that could really reflect well in the nasdaq and get it out of the doledrum and get it back to the 3600 in the index. melissa: alan, thank you. we'll never poo-poo you begin. airbnb is in trouble again. as it gets ready to face off
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with the new york attorney general's office tomorrow a new report shows 2/3 of its listings are illegal. let's bring our panel back. liz, you've been reporting on this story all day. how do you think this shakes out? >> this is nasty war of words heading to court. on one side, eric schneiderman, new york attorney general effectively saying it is not just one person renting out, it is one person with all sorts of listings. they're acting like donald trump mini meese. on the other said airbnb, expect us to be called tax cheats or slum lords. our argument we help the little guy make money. that is where we're coming from. we do pay taxes into new york. melissa: but, scott, you have to worry. if 2/3 of their business is illegal, what kind of business do they have going forward? >> well, they're going to work with the states. that is the tough things that is going on right now, melissa, facing states in this country. is finding a way for airbnb to operate legally or get justin bieber deported. because the thing i like about
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airbnb, they're providing a cool service. they're a disruptor. if you look back in history through the tech phase a lot of these companies, uber is another one. melissa: there are some folks out there that might say the same thing, if it is illegal, it is illegal. >> talking about today. airbnb is helping a lot of homeowners. you look back in the history of airbnb, a lot of people were getting foreclosed on, get kicked out of their house, they were able to rent the house, pay their mortgage and stay in there. this is service states need to figure out how to work with, not work against. melissa: the problem, mark, they're not just violating one law but a folks are not paying proper taxes. it is not about folks talking about that. there are 30-day limit. you can't rent for 30-days, sublet. >> which is dumb. melissa: whatever. they're are 30 million laws they're violating in 30 different states and bottom
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line, the majority of their business is illegal. >> until the court make as ruling we don't know what they're doing. they have over 600,000 listings in 192 countries. oddly enough they say on the website they have 600 castles. if you're in the market for a castle, there you go. the reality, any new business has to navigate laws, regulations an rules. if they have a good team and work their thing they will be all right. nobody gets to know in advance -- melissa: quickly, mark, you make a good point there. >> however airbnb is getting equity financing from tpg. you have to wonder if a lot of money will go toward these court battles and state fights that strike right at the hardheart of their business model. i hear 10 billion bucks for airbnb valuation which is equal to a hyatt. you wonder how much cash burn for the big fights. melissa: we're out of time. you guys were all great. no one to hold them and no when to fold them.
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melissa: from the u.s. to every corner of the globe money has been flying around the world starting in crimea where russian president vladmir putin has big plans to create a gambling zone. casinos are only allowed in four special areas in russia, all of them far away from the capitol. crimea will become the fifth such zone. the russian government believes the move will help bring much-needed funds into the region. i bet. over to saudi arabia where they are constructing the world's tallest building. the kingdom tower will soar half a mile into the skies. it will cost over a billiondollars to build and use over 80,000 tons of steel, wow. land negotiate u.k. where some of the country's top bankers have been stripping for a good cause. execs from the likes of icap and
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citigroup took part in a short film that was never supposed to be made public. one scene has them standing up during a pitch meeting, stripping them down to the undies. it has several thousand hits on youtube. they thought they would take off clothes that no one would see light of date best camera. bad call. bitcoin hovering at $500. down 50% from the high last year. now the story of bitcoin's evolution is set to hit the bid screen in a much-hyped documentary. here in a fox business exclusive, the director of the rise and rise of bitcoin, nicholas ross, one. stars of the film, dan ross. thanks for joining us. nicholas, you decided to do this movie because your brother dan had become obsessed with mining bitcoin. how did you get from there to doing a movie? >> it was a little more than that too. he became fascinated with the
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technology. he couldn't shot shut up about it. one thing lid to another. i became fascinated because he was. we learned more about it and started filming a homegrown documentary and took off from there. melissa: how long ago did you start working on this? now bitcoin is huge. i imagine when you started not every one was as excited about it? >> yeah, back in 2011, when my brother first got started into it. we played around with the idea. i wrote it off at the time. that sounds cool, definitely tell me bit sometime. but week after week he kept, discussing it with me. before i knew it, this is awesome. i should start paying attention here and -- melissa: dan? >> i didn't, go ahead. melissa: i didn't mean to interrupt. i wanted to get dan here. what is captivate about
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bitcoins. >> like in the film, i watched internet come. as it wasp haing all around i didn't realize how much of an impact it would have on the world. with bitcoin i realized that early on it will be much bigger and have much bigger impact on the world and i've been down a rabbit hole ever since. melissa: dan, how will it be bigger than the internet. i can't survive and other people say it, you can't survive without the internet transactions what you're trying to do. with bitcoin there, is cash, checks, and not everyone will eventually use bitcoin. >> maybe they will. down the line the future is wide open. the world is getting smaller and smaller. it is about time we had a currency that works everywhere in the world. bitcoin can bring that possibility. melissa: nicholas, what was the most surprising thing you learned along the way? >> a tough question. i guess the best answer was everything. you know, bitcoin has become part of my life now. it is not just a film anymore. every day i'm reading bitcoin
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news. i'm checking my ticker. et emails from people. i met so many wonderful people on the film it has grown bigger than a film. melissa: i would ask each of you. you met a lot of people in the film. you had all the big players, winkelvoss twins, charlie shrem. founder of coin base. do they have a unified goal? and there is nothing wrong with it, or are they just trying to make money. >> i think a lot of people have a lot of different things they can use bitcoin for. of the remember, bitcoin is just a protocol. it is like email. who gets value out of email? everyone that uses it. there is ton of applications for it. we're starting to see potential of all things we use bitcoin for. money is just the first test case. that seems to be working pretty well. melissa: very interesting. congratulations making the tribeca film festival. we'll look forward to seeing it. rise of and rise of bitcoin
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premiers at tribeca film festival. >> thanks, melissa. melissa: another reason to dread getting on your flight. we've got one for you. looking at a slimmed down airline street. our '80s dream got closer to reality. some folks are turning marti mcfly with their very own whoever board. i've always had to keep my eye on her...
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csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. xfinity watchathon week was the biggest week in television history. but just when you thought it was over... what now? with xfinity on demand you can always watch the latest episodes of tv's hottest shows. good news. like hannibal... chicago fire.... ...and bates motel. the day after they air. xfinity on demand. all the latest episodes. all included with your service.
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it's like hi-fiving your eyeballs. xfinity...the future of awesome. melissa: for the love of god, from the bible miniseries to the megablockbusters like "noah," religious movies are making a come back but why now? marketing genius bruce terkel knows. he will tell us. some people say god has been around best beginning of time.
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all of sudden, so many movies, popularity and media perspective. why? >> there's a couple reasons. first of all i think movie folks figured out a blockbuster book like "harry potter" or "game of thrones" gets a lot of people to watch a movie. this book has been around a long time and best best-seller of all times. but the other thing, as you always say, we follow the money. so look at what happened with god is not dead? look what happened with passion of the christ. look at mark burnett's bible tie-ins. the religious community knows how to get people out and talk to one another and fill seats and sell tickets. melissa: i would think there is a tricky formula. there is something when you lay it out plain, there is something distasteful trying to make money off god and marketing god. so, you've got to be sort of careful to walk that fine line. how would you do it? >> you're absolutely correct and i think what you look is going on with noaa right now -- noah, some people, religious people
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are saying wait a second this, is disingenuous. this doesn't necessarily talk to me. but to your first point, about people feeling a distate l tasteful or little odd making money off god, i don't think that is something new that is going on for a long time. melissa: that they have been doing it but don't want to seem like that but doesn't it turn off the very people you're after? >> doesn't seem like you're doing that. that you're spreading the word and sharing the wealth and all in it together, why the movies made that are understanding are ones that make money. melissa: airlines looking to squeeze as much as they can from passengers. now they will squeeze passengers themselves. at airline expo, airlines showed off latest and slimmest designs to help cut down fuel costs. there are face-to-face. passengers sitting diagonally from one another. bruce, i saw one report this morning they said they could save $3 million with one of the
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planes zigzag, not next to each other, add 24 more people. at what point is it turnoff where they lose money. >> you remember the library in college that was stacks, twice as many floors that fit together? melissa: right. >> what the airlines are trying to do is same thing. their core customers are business travelers like the core customer in the library were kids who study ad lot. core customers, business travelers are coming any bayh. they have no choice. they're paying big dollars for space. what airlines are trying to do is rest of the flights into steerage. treating passengers like cargo. every extra inch they get is another dollar on bottomed line, where do you draw the line? once again you have people sitting knee to knee in the back like on a train? when you get a seat on a plane, you could be trapped there for hours. >> that is already happening. remember, spirit airlines at one point, suggested that they were going to have stand-up seats, if that is not an oxymoron. there would be a poll.
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and have a harness that would clip to it. they didn't do that but come pretty close. it really depends who the core customer is for the airline and what they're willing to pay. melissa: bruce terkel, thanks so much. always a genius. >> thank you. melissa: a drug deal gone away. pfizer ending formal talks to buy astrazeneca according to a point. that is not stopping stocks from moving today. nicole petallides on floor of the new york stock exchange. nicole what are you seeing there. >> we're watching stocks move to the upside despite the fact the company is saying this is not occurring. the reason they were popping in the first place, we were talking about the possibility of having these two companies getting together. this would be over $100 billion deal which obviously would have been among the larkest deals in the industry ever in the meantime. pfizer's stock is up 2%. astrazeneca is i here as well. the point of the story also, that astrazeneca has a whole cancer pipeline as well which really could be enticing to pfizer. we'll he will see whether or not this comes back on the table
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once again. back to you, melissa. melissa: thanks so much. before we go anywhere, something straight out of "back to the future." oculus rift users can combine their virtual reality headset with a wii d device to create a feeling being hon on a hover board. step up on to a wii balance board and off you go. probably coolest or closest thing to being real life marti mcfly. liz macdonald, what do you think of this. >> i love you quoted marti mcfly. melissa: i love marti mcfly. >> what is really interesting company like this, go pro, may go public. they're showing their wares on internet. showing what you can do with the product. amazing capitalization of the internet to put videos. melissa: would you hop up there and do that. >> you know what? i'm waiting for virtual teleconferencing so i don't have to get on the airline. melissa: i think that may exist,
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virtual teleconferencing. >> going to the bahamas with corporate meeting. flying not so friendly skies, right, melissa. melissa: there you go. the real reason google is desperate to get you signed up for google wallet. there is a whole lot of info after, probably not stuff you want to share. another delay, the real losers as the state department pushes back a critical deadline on the keystone pipeline. tweet me. tell me what you think. "piles of money" coming right up. ♪ ♪ [ cows mo] [ sizzling ] more rain... [ thund rumbles ] ♪ [ male announcer ] when the rld moves... futures move first. learfutures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪
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comment on speculation but this had been one of the huge stories this was going to replace alan mulally. now it seems we have at least one report that we know. getting a brand-new model tesla s. some lucky new tesla owners andn china are getting a little more bang for their buck. jo ling kent has more on this. >> he is there in china because he wants to capture more of the luxury market. he is their rights now in beijing. he goes to shanghai to do more of that. he has told the chinese community at this tech conference that he would be building factories in china in the next three to four years so he wants to grow aggressively. a tesla model s costs $120,000, so we are not going, he is not going the middle market. it is a very niche market.
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if you look at how hybrid and electric cars have been sold in the past, chinese government had a target to sell 500,000 electric cars. it is a pretty related firm.t they may do a little bit better than the chinese printers have done. melissa: out asking everything in a hole in the air works. what is this button, what does this do? we don't need any extra incentives to order dominoes. but in case you do, the company is now offering free specialty chicken if you pay with your google wallet. it sounds like a decent deal until you realize google could be making a fortune off of your personal spending habits in exchange for chicken wings.
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i will start with you. so they finally figured out your search information is almost worthless, what is really of the value is where you are spending your money. that is what this is really all about, isn't it? >> it is important to see who you are spending it with. so dominoes or somebody else. this makes it a lot easier to use google wallet. we will see it spread to a lot more in the future like we have seen the facebook or even google lobby where you can tap in and you are already eady. melissa: this is the holy grail. isn't this knowing where you have gone, how much you have spent in the month. if google wallet can capture all that information, they will sell it like crazy, it is worth a fortune, isn't it?
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>> they're pretty themselves in the purchase chain. dominoes is not actually in the pizza business. they are in the pizza delivery business. my friends came over to play cards that i have nothing to eat business or the kids are hungry and i don't feel like cooking business. now you're going to understand where and when the money is flowing. this will really be a game-changer. melissa: i heard this and it made me furious. my payment information has soared because we order pizza all the time so i get nothing using my google wallet except free wings. meanwhile they are gleaming from me incredibly valuable information, but a lot of folks are offering you stuff to get you to do this. >> facebook as we mentioned earlier are in the game and they have powerful information because they can see where you are moving your mouse, what you are clicking, what you are not buying.
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so there is a lot of opportunities out there. melissa: i think our viewers with notices as well. they delivered algorithms to determine what could they do to entice you to use google wallet or to sign-up whether it is wings. but they offer to donate to charity of your choice. they have a way to get you to give up your business. >> it is making is so much easier for you to do it. melissa: i have my credit card information saved on dominoes it is not easier. >> you don't have to enter your credit card information because google already has it. melissa: and i don't like it. coming up, it is a kind of american dream even hollywood could not make up. the bombshell report on one of baseball's biggest stars cast a huge shadow over his career. don't miss our exclusive interview with the writer behind
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the challenge because it could take years to come to a conclusion. apple and google are battling it out to offer exclusive gaming apps. both are wooing developers to make sure the titles arrive first in their devices. apple and google will feature the games heavily in their respective app stores. and fast food rival mcdonald's and yum reports tomorrow. on wednesday it is tech giant apple and facebook. amazon and microsoft will reveal the results on thursday. that is the latest from the fox business network, giving you the power to prosper.
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melissa: after behrens called it trading cheaply compared to bigger rivals. wall street notice that, shares are up about 6%. business tycoon still has controlling shareholder. 41 million shares in his pocket meaning he has made $60 million today. also making a lot of money, they just so the country's most expensive vehicle. the dapper looking red flag l5
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snapped up by a furniture salesman for $800,000. the limousine type o vehicle answer to the rolls-royce first made under the direction. spent a whole lot of money, the troubled retailer now look to trade in your old iphone for us for the newer 5s model which is currently the best apple phone you can get your hands on. they will let you do it for no cost at all. some suspect radioshack could be keening out the inventory due to a lack of interest. another postponement of the keystone xl pipeline. it will delay making a recommendation until questions of the route are approved. now the decision goes to the state supreme court for lincoln, nebraska. the pause button has been hit on
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this. a fox news exhibitor, steve moore. are you shocked? >> i should not be shocked. what has been overlooked, the tactical reasons they have been delayed hitting the pause button as you correctly pointed out was because of the nebraska situation. if you read the text, he said we cannot approve this because we don't know what is happening in this pollution. that is the real agenda here, melissa, this administration is so captive to these environmentalists, they don't want the oil and gas coming from canada in the united states. melissa: pushing it off until another election. i do feel this will never happen. >> exactly. it has been a four-year wait for regulatory purgatory. i have to say i am kind of shocked by this decision.
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melissa: i feel they are never going to do this. you are really shocked? >> it is a political and economical no-brainer. the vast majority want the pipeline built, they want the jobs, they want the energy security, they want this for national security reasons. there are so many reasons to do it. i thought we would see october surprise saying we are signing off. melissa: is it really that popular? i feel he would have done it. they have been the matter what. >> you are missing something, it is the big donors of the democratic party who give $100 million this year, they are the ones running this party. you imagine if the shoe were on the other foot and the koch brothers were against the president. nobody is talking with the big billionaire democratic donors are the ones holding up the
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keystone pipeline. melissa: at the end of the day it is all about "money." thank you for coming on. turning to major league baseball where a bombshell story on one of the brightest stars rocking america's pastime. and reports los angeles magazine claims dodgers phenomenon yasiel puig road to the majors was funded by a miami crime boss and carried out by a handful of mexican drug smugglers. here now in a fox business executive, los angeles contributing writer. thank you for joining us. this is an incredible story. this player was coming out of cuba, he cannot directly come to the u.s. and play. he had to go to mexico. >> let's just remember as a starting point, there is this dysfunctional relationship between our two countries between the u.s. and cuba. without getting into the politics of it, what has
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happened is a black market, and illicit pipeline for baseball players has cropped up and exploiting that chasm between our countries and connecting this insatiable demand that major league baseball has for talent. melissa: so the way he did it, the way it was done, this miami crime lord who agreed to pay mexican drug smugglers $250,000 to smuggle him out of cuba and into the country. in exchange,, puig promised 20% of his future earnings? how do you know that is true? >> a lot of the details are contained in a federal lawsuit in miami right now where somebody who puig testified against in cuba about an escape attempt several years ago is suing him for $12 million. a little bit of a piece of
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litigation there. if i can correct you, don't think the guy who set this in motion, he was twentysomething year old air-conditioning repair man on probation for stealing an air-conditioning unit. melissa: so he is just a guy who does illegal stuff? >> he is a small time hood. bizarre to me somebody as a significant as yasiel puig, smith talented as him, somebody who is going to ultimately command $42 million contract from the dodgers, the person is set this in motion was kind of a smalltime dude. melissa: how often does this happen? is this an everyday story? >> the details are extreme because it is held captive in mexico for 20 some odd days. but every one of those playing in the major leagues right now have endured some version of
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this. melissa: i hope you will come back on the next leg of this and let us know what happens. >> it would be my pleasure. melissa: liz claman has some good stuff coming up. liz: our dodgers. what is that about? melissa: it is a good story. liz: you have to love the dodgers, but that is an amazing story. yes, tesla, he wants to talk about it amazing story. tesla has busted out with the most amazing announcement saying wheone other car companies took decades to get into china, it says it will be selling cars directly in china in three to four years. forget the fact the average chinese individual does not have 70-$100,000 for a model s, there is a growing middle class. we will talk about the growing
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potential for tesla and all electric vehicles. melissa: looking forward to it. it is one of the hottest trends in financing but our next guest is putting crowdfunding to work. group financing for system living and the payoff for main street. you can never have too much "money." i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards
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we are keeping a close eye on charter and comcast. right now charter is up 5.5%, comcast up 1.25% because comcast in talks with charter. over selling or spinning roughly 3 million subscribers. so this, this deal could be worth about 18 or $20 billion, part of the investors related to the takeover of time warner. there is a chart over year to date. they are both lakers this year for 2014. so we will continue to follow the story, obviously one that is intertwined. melissa: thank you so much. time for little fun with "spare change." helping to crowdfunding real estate getting a piece of the action during construction and the sales of property. joining me now, zeke turner. you call it crowdfunding but it is not crowdfunding in the traditional sense.
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crowdfunding you go online and essentially make a donation to somebody trying to get some project up and running and in exchange you get maybe the product they are coming out with. you are getting a lot of people together for a small investment to invest in real estate, right? >> right. we are only dealing with accredited investors. the neat thing about it is we're able to connect the investors with the investment opportunities directly for the first time. melissa: there are a couple of things that jump out right number one, what is the liquidity like? can you get the money out any time? >> typically no. that makes it investment is suitable for them. one of the reasons we are focusing on accredited investors is a more exact crowdfunding rules, out, we're looking to have the fundraising process to take wall street out of the equation for now and really
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focus on a direct connection to the investors. melissa: it is hard for me to gauge what i will get out of it. you target a 14% yield, 10% yield to be paid annually with the remaining 4% at the end of the day, but all of that is a goal, not a promise, right? >> even a public company is not guaranteed. it can be changed often. we know the track record is, we have been doing this for seven years, over $250 million worth of real estate we put out between 14-18% returns. it is not guaranteed, but we have a good certainty of it. melissa: you are the third in line to get paid back. the investor if something goes wrong you are last in line. you have seen a lot of interest, what has response been like? >> we have been building up,
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technically you are not the third in line, the investor will be paid less. you would be second in line. first is the mortgage holder, construction financier will be paid first. from that, they will get paid next in the sponsor will take at the end whatever is left over. melissa: we would warn people out there, get into try to take advantage of folks looking for folks like you who are well well-known, revocable investor. it is definitely going to be an interesting field. thank you for coming on, we appreciate it. like the whole of wall street, i keep my eyes on netflix. earnings getting a lot of people very anxious. i look at how wall street is trading at coming up next because you can never have too much "money."
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melissa: netflix is reporting idea of first-quarter earnings after the market closes today with just about an hour left. scott martin joins me now. what do you do right now? >> you have to take a pretty good look at adding this one, melissa. melissa: really? >> numbers look decent. we had a really bad weather quarter. everybody was coming out saying this was córdoba. horrible. i could be adding subscribers, bringing them north of 35 million domestically. about $0.81, probably higher on the eps with revenue a billion and a quarter. i think the number will be a little higher because people stayed home and watched movies. melissa: the basic problem of course was i love netflix as a consumer.
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it is an incredible value for what you pay. it is a ton of content. investors worry is there a payoff overtime they spend $100 million putting a series together and charge me $8. anything they can say on the earnings or on the call that would make you feel better about the business model? >> it is one that involves not so much us-based focus business model, but in overseas one. we have a big push they will deliver going into the europe and fringe areas overseas. that is the big area you have to look at because you are right, to some degree they are tapped out, the u.s. especially facing competition from amazon, hulu, hbo go. melissa: very interesting. we will see if you are right. a market up 42 points on the dow heading into the last hour of trading. that is all we have for now.
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i hope you make money today. "countdown" with liz claman starts right now. ♪ liz: billion or elon musk doubles down on the world's largest auto market. the tesla ceo and founder says electric automaker expects to start building cars in china in the next three to four years. will he scramble to deliver the first model s to the chinese payoff? wall street and main street watching netflix today. not "house of cards," but the earnings report after the bell. all about the number of new subscribers. can netflix fend off amazon and others like hulu and others as well. and it may look like fun and games, but the fight for gaming ap
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