tv After the Bell FOX Business May 12, 2014 4:00pm-5:01pm EDT
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week? >> we've seen social media doing so well. close l. [closing bell ringing] we have breaking news that at&t could strike a deal for directv as soon as two weeks. they're discussing that. >> as we're listening to the closing bell, i have to talk about homebuilders. not just tech but hope builders doing well. go ahead, nicole. >> we're talking about homebuilders and talking about tech. you're seeing a lot of movers here. aeropostale, jcpenney, some retailers doing well in addition to homebuilders. industrials setting new highs as well. david: let's start at the bottom. usually we start at the top, liz. russell 2000, small and mid-sized caps. look at that, when was last time we saw 2 1/2% raised on any one of these indexes. second only i about nasdaq which is a huge gain as well. so we mentioned social media stocks which had been beaten down, getting a real boost today. liz, a lot of stocks, of individual companies doing well
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also. liz: get to a megastory breaking right now. according to "the wall street journal," i'm looking down here for a second, because we're getting headlines very quickly here, at&t could strike a deal for direct tv. david: wow. liz: oh, boy, as soon as two weeks from now. at&t and directv have been apparently discussing what would be cash and stock deal. stock is not really moving at least at the moment for at&t. at&t likely to pay a premium to directv's stock price and directv shares were trading monday around 85.57. you can see it is jumping in the last couple of minutes of trade to $87.16. looks like where it closed. the bid and ask just a bit higher. once again at&t could make a play for at&t. i'm interesting to see what dish could do. dish wanted to merge. they had spoken many times on fox business, joe clayton, ceo, we're open to any deal with
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directv that would face regulatory hurdles. dish closing up half a percent. at the moment it is dropping at least for the bid to $58.63 for ticker sim dole dish. -- symbol dish. david: you mentioned it, the key is regulatory administration. there are some different regulatory hurdles to jump over to make this deal happen. maybe investors are waiting to see if they can do that. liz: that would be interesting. if you're lacking at market caps, let me quickly check. this is big news story out of "wall street journal" market cap is obviously significant, 189 billion for at&t and dtv, that market cap is considerably smaller. 444 billion. so considerably smaller. at&t could swallow that up. at&t was pushed back from buying t-mobile. they have been trying to do deals over and over. maybe this is the one to do it.
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david: we'll see if it happens. let's get into today's market action. liz: we'll have senior portfolio manager for investors to find deals amidst all the choppiness. jonathan brodsky, seeing attractive overseas opportunities. bill baruch from the pits of the cme. bill, began with the hillshire farms potential deal and suddenly spring fever for a lot of corporate buyouts. >> the s&p here is closing above at 1893. deal activity today into last week is really provided a lot of momentum. but what we're focused on is headlines out of china to start the week as well. they're welcoming foreign investors and lifting some of those limits starting momentum early monday. last night we were looked at fixed asset and industrial production out of china to solidify this rally. david: michael, what i like about the news out of china,
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instead of more government spending they're trying to stimulate the economy by opening up the market more which is much healthier way to go about it but this buying binge particularly in tech, do you see it as continuing? >> i really like -- david: michael, go ahead. >> i really like what is going on in china. they're making that market, they're attempting to make that market more investor friendly. i think combination of the china news flow being good, i think continued m&a. this is big food group merger. we're seeing potential telecom blockbuster this afternoon. we're seeing mergers in tech. i think that is helping. we're seeing a big relief rally in the small cap and momentum stocks. you take combination of that more surprise markets hitting new highs. liz: jonathan, stocks for the moment are the best place to be. people keep looking at calendar, we now have a three-year to five-year long bull market, is that getting a little old? is there any way to protect your portfolio yet still have your
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foot in stocks? >> i think we believe that stocks continue to be the best asset class going forward. we see momentum in the economy, not only the u.s. but globally so we think long term there is tremendous opportunities on the upside however we shouldn't expect it to be as aggressive as it has been last couple years. therefore we're advising investors to look around and see alternatives. one thing we see looks attractive from absolute and relative basis, some markets around the world have not done as well as u.s. market. we've been talking about a little bit about emerging markets. more recently japan which has been a big underformer this year after doing so well last year, looks to have pretty strong catalysts for the next six months. david: bill, i'm looking at oil again over $100. i wonder if that could slow us down at all? >> right now i don't think that's going to be an issue. if we get out 102.25, that is the level we've had our clients looking at, if we get out at 102.25 that is where we have legs to run. if we start making those new
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highs. right now we're in a trading range. the market is 98 1/2 to 101 1/2 you have to play levels within there. we break below that or above that that's where we get momentum in directional way. liz: again, we need some momentum, we need some direction from our guests here. michael binger, talk about names you would be getting into right now because people are always looking for ideas no matter what the atmosphere. >> i have a couple of names i'd like to recommend. i think investors should focus on earnings first and foremost, preferably earnings underneath 20 times next year's earnings. look for yield, and also look for quality and large caps. so i would look at a company called fly leasing. they're an aircraft airline an aircraft leasing company, trades very cheap, less than 10 times, trades well below book value, yields close to 6% and they will expand their fleet close to 15%. it has a lot of categories are attractive. it is cheap, growing and
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provides a yield. it's a good now. other one is cognizant. they are a india i.t. sources and have a broad base geographically around the globe. they report ad good first quarter, not great. they gave in line to mixed guidance for the stirring. obamacare is causing a little bit of hesitation in the north american market but they will still grow earnings north of 15%. they will still grow sales north of 15%? at 17 times it is a very cheap stock to own. david: jonathan you're looking outside the united states, particularly the brazil, it has a lot of real estate with prime land in brazil. the symbol is agro i understand george soros owns about 20% of the it. why do you like it? >> yeah, we've been invested in this stock for some time. we look for inefficiencies and arbitrages with the equities markets. agro is listed on new york stock exchange which is really a south american concern which results not a lot of
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people paying attention to it given limits of their investment mandate. this company fundamentally is two pieces of business. it is ethanol processing business and agricultural concern with quite a bit of farmland in south america. if you value the ethanol business with a reasonable multiple you buy the agricultural land at $550 an acre. this is extremely good quality land next to water an infrastructure. compare that to good iowa farmland that goes for $6,000 an acre. liz: can i bring in bill baruch, because you're in the heart of chicago. grains have fallen more than 1% from everything down from corn and wheats down. soybeans a are down. looks like oats with a move to the upside. everyone talks about the great rotation out of different kind of commodities. what are you seeing there? you buy the farmland eventually will the prices follow? >> well, that is what the idea is. relatively speaking corn is $5.
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it's couple bucks off, some of the levels we've seen over last few years especially over earlier this year when the market was closer to four. we rallied quite a bit. right now what really matters when it comes to price is corn getting into the ground now and how much is it going to yield? that's what people. that is what the data points like today, we have crop progress coming out right now. everybody is paying attention to something like that where we see profits coming off table with some higher levels against 5.20 last week. soybeans testing 15 bucks today. we've seen profit-taking. volatility is in the market right now and this is exciting time of the year to be involved in grains. david: by the way we're getting word that volume today was 11% below average. i don't want to rain on anybody's parade. it was a great day for the markets but the question whether bullish conviction goes along with these numbers will be asked and we'll see if that happens tomorrow. liz: thanks so everybody. mile call binger, jonathan
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brodsky and bill baruch. we'll look at s&p futures in a few minutes to see if it closes with that record. david: you may want to head to dallas, texas. rich edson speaking with dallas fed president richard fisher why that city was ranked number one for welcoming business environment and what he thinks can be done to make monetary policy more effective. you want to stick around for that. liz: boy, there is a lot of attention on high flying stocks. investors are missing out on some under the radar winners. we've got three underperforming but outperforming but overlooked dividend-paying stocks that might be the perfect thing for your portfolio right now. david: also, there is a new player in the online music service. that is singing a new tune and letting customers download unlimited ad-free songs without a monthly fee. how do they do it? how do they get paid? we'll be talking to the ceo. liz: tell us what you think. is the online music service space getting too crowded to be profitable?
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tweet us @fbnatb. we'll get your answers coming up. ♪. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.
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no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. carsthey're why we innovate. they're who we protect. they're why we make life less complicated. it's about people. we are volvo of sweden. liz: it was really the industrial sector today leading the s&p 500 higher boosted by seven stocks that hit all-time
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highs, david. david: nicole petallides on floor of the nyse has names, nicole. >> let's look at seven stocks. we looked at the sector overall being a leader on s&p 500 helping to bring the markets to general highs. general dynamics, southwest airlines, cummins, robert half international, 3m company and illinois tool works as well as ryder system. as we look at these names you should look at these as economic indicators to a certain extent. i know the job market has been slowly growing. gdp growth not as desirable as we hopedded. we saw the transports hitting record highs. truckers, shippers, industrials, all these really indicate economic growth. so you hope, ultimately for all the folks watching the fox business network that this group continues to shine and today, certainly we saw that we see these names hitting all-time record highs. lots of names up 2 and 3%, 1%ct.
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great day here. >> good day. liz: cummins engines, this is name people loved year-and-a-half ago. >> as much we like to see when the stock market goes up it is great when the whole economy goes up as well. thanks, nicole. s&p futures are closing in two seconds. let's head back to bill baruch in the pits of cme. how is it shaping up for tomorrow, bill. >> right now we're slightly bit higher than when i last spoke, closing at 1893. this is major level we watched, against the previous highs. this is level we tell clients at beginning of the year, 1893 and 1911. looks like 19 will be the next one we see. thank you -- david: thank you, bill baruch. thank you very much. liz: dow and s&p 500 hitting all-time highs as everything, small caps, technology, industrials were recovered after some of these recent losses but despite today's positive move on risk-on momentum stocks as they're known, we have somebody
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says it is better to look at overlooked dividend plays as real opportunities. jeff reeves is the man, investorplace.com editor. we have a choppy market. a little early saying we're heading into summer but volume getting thinner, swings get wider. what are you looking at? first talk about the criteria before you give us three names you say are overlooked but will pay good dividend. >> yeah, i mean i think you're right we're seeing volatility pick up among the market broadly. doing well with the blue-chips, important to note that small caps have underperformed in the last 45 days or so. there is this kind of feeling out there what's next? there is a little bit of doubt of the you know as well as i do, 30% up year again probably isn't going to happen. the question where can you find opportunity and feel like you're making a buy that will last long term? swing traders could ride this stuff up and down. i think that's a dangerous game. what i think about stocks that once that you don't churn but
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hang on to for years even decades and hopefully provide a little income. mostly short term -- some short term but mostly long term. liz: i want to get to these names. vin taos. vintas. give our viewers what they do. it isn't a household name, is is it? >> this is can be they should love, it is a reit. 90% of the taxable income. liz: let's explain that is real estate investment trust, basket of properties. >> this is real estate investment trust. irs, wonderful people that they are give them tax breaks, in exchange for that they have to deliver a lost profits back to shareholders. basically means dividend for you. i like reits broadly as income plays. the reason i like ventas. that is a triple net leasing reit. the tenants have to pay everything going into the property. they have to pay the mainnant,
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they -- maintenance, they have to pay the taxes and insurance. they just get the rent check. pretty good business. the properties are health care related. with the boomer demographic, health care is recession-proof trend. think all these things add up to pretty good long-term play. liz: 4.3% dividend which brings us to our next name which has close half that dividend of about 2.% a little over half, that is johnson & johnson. >> yeah but it is still better than treasurys, right. liz: definitely. >> that is kind of the sad reality. that is sad reality what we've got going on now. if you're income investors, 2.8% is pretty good yield for you. johnson & johnson has a good history. kind of stagnant from 2010 to 2012. ceo improved product quality. they haven't had as many recall problems dragging down the bottom line. good income play long-term but also a consumer staples play with the bandaid and tylenol business. i think it is really stable.
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it outperformed modestly. a mix of an uptrend and defense sieve nature stock for the long term. liz: it is .2 of a percent above the 10-year yield. let's get more comfortable distance between that and the 10-year. with that you turn to intel. intel began ramping up its dividend i want to say 3 to 5 years ago. now it is 3.4% dividend. stock is traded relatively narrow range. new leadership with brian chris san nick. >> that is true, economic growth is wonderful thing for the economy. i point out intel's last earnings report, post pc age where desktops are dead, intel's pc business and data services business outperformed and they resulted in pretty strong earnings because of corporate spending trend. i would encourage people if you're looking to this kind of turn around and employment and business spending next couple years, new hires will all need computers. for better or worse, we have
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desktops or laptops not tablets for work. it has stability. range-bound provides stability for long term. capital spending picks up from businesses you bet tech stocks like intel will ride the wave higher. a lot of momentum plays are really up and down. intel is kind of stock you take to the bank if we see secular up particularly in business tech. liz: what is it like to go to didntwer you? i love it. >> my wife is a listener. i think you can understand why. liz: yeah. we all should go out to dinner because david and i could talk you out. david: i don't know. liz: that is pretty good. >> as long as you're buying. liz: we'll pay, definitely. david: bring up solar energy jeff. we'll talk for until the cows come home. love you, jeff. thank you very much. >> thanks, guys. david: one thing nobody can disput the texas jobs machine is humming. it is humming along perfectly. we'll hear exclusively from dallas fed president richard fisher about how the lone star state and one city in particular
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is setting an example for the whole country on exactly how to get new business up and running. liz: when you think about amazon, most of us conjure up images of huge warehouses for its massive online retailing operation but amazon is making a killing in a totally different business that few people have heard of. we'll tell you about amazon's $8 trillion bet when we come back. ♪. so ally bank really has no hidden fees on savings accounts? that's right, no hidd fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!!
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technology exporting state. you don't see technology companies moving to new york. you don't see, as a matter of fact, migration out of new york and california been some of the highest in the country. >> that was texas governor rick perry on "after the bell," telling us why businesses are leaving places like new york and flocking to the state of texas. liz: now that the u.s. chamber of commerce ranked dallas number one in offering a welcoming business environment. rich edson got a chance to speak exclusively with dallas fed president richard fisher about what makes dallas different for businesses, rich? >> well, david and liz, he reviewed this report and what the chamber did, they took the regular business process of interacting with local government, small businesses when it comes to permitting. when it comes to getting your business licenses, construction permits and ranked dallas number one with ease of doing business with the city. we talked to richard fisher what sets dallas apart from other cities. he says regulatory environment.
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>> i think we can see it in a number of californians that have moved here alone. 25% of the our immigrants to texas over the last, since the 2008, recession started have come from california. we have 1.3 million people move to texas since 2010. that is the last three years. until this year. people vote with their feet. so this is a little crude but i think what you're hearing we want less car forneycation of america and more texasification on the regulatory side. same interest rates, same supervision of banks and examination procedures and so on what is different is the fiscal and regulatory side of our economy. i know in my heart our monetary policy which is very accommodative, zero cost capital, plenty of liquidity in the system would work much more
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fish endly revamp the tax code and revamp spending past earns of federal government and more importantly reregulate so we're pro-job creation. >> david and liz. david: we've been talking to small business owners here in dallas, texas. we're at one right now of the crisp salad company of the they opened up couple months ago. they talked to the owner. said it took no time to start the business. one-stop shopping in front of dallas city hall. met with number of folks in different department, they have a program you basically sit down and get all the regulatory approval in one stop. they were up and running in no time. look at map. what chamber did examine 10 cities of different sizes of all regions of the country. ranked dallas, number one, st. louis, raleigh, boston, atlanta, chicago. bottom of the list, l.a., san francisco, new york city is last on list of 10, to give you an example. dallas to open a business according to the chamber report takes five procedures, costs 300
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bucks. new york city, seven procedures more than 1300 bucks. that doesn't include the increased time that it does in new york city to start a business than dallas. >> doesn't include money under the table either which sometimes has to be paid to smooth things out, truth be told. >> i think that is in the appendix of the report. liz: company in the last hour called blue apron. they are sort of ikea of food service, send you a box of ingredients that you make it yourself. he set up business in new york city. said no problems and food regulation can be particularly tough. david: compared to new york, dallas is heaven in terms regulatory ease. liz: thank you, rich edson. >> on top of that no corporate tax in texas. david: that's important. liz: doesn't hurt. time for a quick speed read of some of the day's other headlines, five stories one minute. first up, despite a drop in the number of deals companies did spend much more to acquire private u.s. tech firms last year. according to a report by privco,
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$111.8 billion spent in private tech company transactions last year. that is a 34% jump from 2012. former treasury secretary timothy geithner new memoir, "stress tess," launches today. a look how the government handled financial crisis, the government meltdown and economic collapse. new microsoft tablets on the way! reports say they will launch a surface mini and the a its upcoming show this week. airbnb trying to expand beyond home rentals. they are trying to get into the ticketing and travel businesses. cleveland browns, whoo, ticket sales, my team, are up 5% on the secretary market since they selected johnny manziel. [buzzer] browns tickets average $146 a piece and johnny manziel he's
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jersey is number one seller. david: everybody thought it with be dallas johnny. but it didn't happen. possible purchase of beats headphone and streaming service i'm sure you heard about that. i'm sure you haven't heard about a new kid on the block trying to upend the entire digital music business thinking out of the box. we'll talk to startup ceo and founder in "first on fox business" interview you do not want to miss. liz: the economy may be picking up but millions of americans are still looking for jobs. coming up we'll tell you about one industry that is crying out for workers and paying an average of $50,000 a year. stay tuned. you want to hear about that. ♪.
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a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing.
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it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ david: the unemployment rate is sitting at 6.3%. millions of americans of course looking for jobs yet there is one industry that can't seem to find enough workers, the trucking business. according to industry analysts, ftr transportation intelligence there is currently a 4.3% driver shortage in the industry, which is a negative unemployment rate. coring to the very latest figures there are about 235,000 unfilledded trucking jobs across the country. 43.4% more openings than this time last year. average pay for commercial truck driver, not bad, $50,000 a year. so if you need a job, might look into trucking.
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liz: apple reportedly looking for to get into the subscription music business, with possible purchase, you heard rumors, of beats electronics and with it beats music streams service but there is brand new service launching tomorrow that could challenge all the music subscription models. david: it is really thinking outside of the box. joining us for "first on fox business" interview is a ceo and founder. congratulations, we always love it when somebody thinks of something brand new. the question whether this market is so crowded right now. all weekend by the way i was listening to pandora on my own cell phone. such a crowded field. how do you make money in it? >> we think we invent ad new category, not just a new service. the existing service, beats, spotify, they are all fantastic services but they have this barrier to entry which is 9.99 a month. david: that is four bucks a month for pandora. >> for pandora app, sort of
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premium service is 4.99. what we think is, that the although these are fantastic services they really target to that small part of what is a very, very small marketsy amounts to people who will actual pay for music. what we say, if you take that entire market, there is 20 million people who subscribe to a music service right now. there are two billion smart devices. that means 1% penetration of the smart device market. so we're really going after the 99%. liz: you believe that they're being held back because it costs money. talk about what yonder does and how you do it and how you believe you'll win? >> we hard bundle the cost. we include the cost of music when you buy a device or when you subscribe to a service. so basically you come to yonder music tomorrow. you buy one of these two really fantastic htc hand-sets and the cost of music, entire cost of music for the whole lifetime with that device is already built into the price.
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liz: no matter what you want to listen to, no matter how many songs you add? >> no matter what you want to listen to. it would come from the cloud as it would come from spotify. liz: how much? david: was this tried once before, beyond the oblivion, something that news corp got involved and it didn't work out. why is this different? >> actually this is cliche it's a short life but actually quite a long life. you get a couple opportunities. what really happens the cost of content, the cost of major label content has come down. you're able to do deals with major record labels now that you couldn't do before. david: right model but wrong time? >> they want to support diversity because they have a problem of 99% of people not paying for music. globally they're trying to find a solution. liz: but, adam, do i have to get one of those two h. c phones? htc phones are great but some are married to iphones or samsung a galaxy.
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>> we want them married to yonder. you want to buy a device because it has yonder. we're starting with two grit htc phones. liz: 479 for the m-7 and 679 for the m-8. without at&t service or verizon or whatever. >> pretty much when you find unlocked anywhere, you know in the states. it is a good price for a good phone and you really not paying the extra for the music. what you're doing is, you're getting wonderful music experience attached to your phone. what we hope is that people see the music experience we've got with the htc phones and we broaden that to offer, samsung, lg and other android devices and eventually of course tackle the iphone universe. david: do you handle all of the licensing? >> yes. david: the company itself handles all the licensing? >> company handles all of the licensing and i think it is probably important to say at this point that we handle licensing because we love music. this is delivering better music
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experience. they don't have the pay wall of the download and payload of the monthly sick description. -- subscription. we want people to stay in the market, not churn out of the market and we want to offer inspreadable value. liz: adam, the service is beyonder. great ideas. david: congrats. this is a lot more to amazon than things like kindle and amazon prime. ceo jeff bezos is making a huge bet on a highly-lucrative space that is not on most people's radar. this could change the value of the stock enormously. what is it? weill tell you about it coming up. >> a few days after apple announced talks to buy beats electronics, one of the founders, dr. dre, look on your screen, he made an offer on that. one sports superstar's megamansion in california. we'll get details next. nice pool. ♪. i ys say be thman with the plan
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but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron.
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liz: definitely forget the clippers. the lakers even. the brooklyn nets are now the most valuable team in the nba? forest city enterprises is looking to sell its own 20% stake in the brooklyn nets. the price they're asking, makes the franchise worth one billion dollars. that would be the highest price ever set for an nba team. by the way, it doesn't include rights to the team's home arena,
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the barclays center. what makes the franchise worth so much? prices in the nb aft absolutely soaring due to surging media rights fees and growing international businesses. they own a controlling stake in the barclays center seen right here although there is no word whether the company intend to alter this position. interesting. david: indeed. unless you're a company supply manager, you don't realize how much is tied up in the wholesale supply market. things like bulk orders of paper claims clips, tone another supplies and light bulbs. jeff bezos knows this. he knows there is two times more money in the wholesale market than the more sexy retail market that amazon is usually known for. that is why bezos is moving to wholesale. when and how the increased value is worked into the share price? our next guest is thinking about this he has some answers. bruce cohen head of private equity strattist practices. good to see you. amazon supply.
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they even have a name, amazon supply is the name. have investors considered how much more the company might be worth if they succeed here? >> david, this really still is underneath the tide for a lot of people in the market. it is what makes u.s. industry go and stuff that comes in the back door, not the front door of business. probably still a mystery to a lot of folks out there. david: just to make people realize, by the way, there is about $7.2 trillion. that is how large the wholesale market is. obviously amazon would not capture all of it or even a large segment of it. but you get a slice of 7.2 trilliondollars you have a lot of money. i wonder why jeff bezos isn't talking about it more? >> you think about amazon, amazon has done a fantastic job innovating and being agile and part of that is not signaling to your competitors about what you're doing. what he has done in 2005, made a
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small acquisition. he learned the business for a lot of years. , leveraging all great assets he has in terms of 40 distribution centers, his front end, his terrific customer service. he is applying that to a part of the market that a lot of people don't know about. david: talk about exactly who his competition would be. he is ruthless when it comes to taking on competitors and getting the price point down. he would take on a lot of mom-and-pop wholesale markets, right? a lot of these smaller shops, most are under a billion dollars that supply to companies wholesale. i'm thinking that he could have some real effect with those competitors? >> well, to our count there are about 35,000 distributors out there of, which only 160 are over a billion dollars. if you think about those other folks in the market, those small distributors out there, they
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really have to be thinking about how to change and move forward in this industry. if you're one of the big competitors out there, like a granger or a cardinal, which what you have to be thinking about is how am i going to compete against somebody like amazon? what am i going to do with my web, my mobile, and how am i going to serve my customers differently going forward. david: i'm also wondering if the wholesale market could actually bring in the revenue investors have been struggling to get out of amazon? we all know their profit margin is so low because he has always been interested in getting a bigger market share but this is an area where you could probably get more of a profit stream, right. >> david, this is really about that, that whole underbelly of the u.s. economy. , again, there are many, many categories they can get in and utilize their asset base that they have. and if you think about every time somebody orders a screw or a nut or a pipe fitting or
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janitorial supplies, they have got to go somewhere and if amazon can get a piece of that, this will be a fantastic opportunity for them. they don't have to own the whole market. they have to own pieces across the board. david: right. we're not talking about a sexy market. we're not talking about drones. it is basic stuff. they have such a good practice if you will through their retail market for getting into wholesale. finally what about the valuables? if they are successful at amazon supply at being a wholesaler like this i would think that that stock could go up significantly from where it is right now? >> that makes a lot of sense t would be a fantastic stream of revenue. it would be reoccurring and have great relationships like they do now with their consumers that they have. with the folks who are procurement officers this could be a real boon going foreward. david: bruce cohen, thank you
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very much. good stuff. very interesting. i appreciate it. >> thank you very much, david. david: liz? liz: if apple-beats deal does go through, dr. dre could become the first billionaire of hip-hop. he is a little short of it but if the continue -- business continues to do well, find out what multimillion-dollar prize dr. dre is thinking about buying to celebrate. that is next. david: does that look familiar? i think know what that movie is from. and we'll tell you which film and how many millions it is going for when we come back. ♪. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure.
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and by the way - snoring? sleep number's even got an adjustment for that. crazy? only if sleeping peacefully with your soulmate is crazy. you can only find sleep number at one of our 425 sleep number stores nationwide. (and) right now all beds are on sale. yep, all beds, starting at just $649.99. know better sleep with sleep number. david: dr. dre is celebrating apple's bid to buy beats electronics, the company he co-founded by picking up the tom brady's 40 or $50 l.a. mansion. liz: apparently cheryl casone confirms it and has the prize. >> we confirmed it this afternoon. he will be paying $40 million. he and his wife nicole young, buying it. full-time residence. we found this out earlier in fox residence. earlier reports that it would be $50 million for the home. you know this area.
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this is brentwood country estates. our affiliate in los angeles, kttv, was kind enough to get me pictures of aerials. this is this morning. this is the estate as of today, brentwood country estates. if has fived about reams, nine bathrooms. 18,000 square feet. the house is 4,000 square feet. there are two homes on the property. legally i can't show you interior pictures. but i saw them myself. they spared no expense. they bought the land in 2008, the bradies did. david: for 11 million, right? >> they bought the land for 11 million and spent 32 to build the home. david: basically breaking even. >> they said they would sell everything in it, turn-key sale. dr. dre doesn't want the furniture but buying home anyway. maybe that is part of the reason why the price was not 50 million. could be issue of furniture. that is possibility. this is somebody, he is worth 550 milliondollars. certainly we have not confirmed
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the apple story, that they're going to be buying his company for more than $3 billion. they were very specific. they will stay in los angeles. this is their full-time home. it has a waterfall and moat by the way. you could fit 30 cars parked, with a six-car garage. what else to say? liz: we like the wraparound pool. >> wraparound pool. the pool is beautiful. they actually listed the home for sale but reportedly he jumped right in there. we think the timing if you look at calendar dates when he went to look at the home which is multiple times we should say, he actually, the timing seems to be as he was in talks with apple which is reported, not confirmed that apple will be buying beats. this is in contract. papers signed. he is buying the home. liz: in-laws will want to stay, you know? they will see that. david: that is why they have the moat, with the alligators in it to keep the in-laws away, very simple. >> tom brady told architectural
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digest. we have eight sisters and families and children will be hanging out in the home. i guess that didn't happen. david: too bad they're so ugly, isn't it? >> yeah, yeah. liz: everybody be well and enjoy your new home, dr. dre. >> certainly. please give fox business a tour, live. we would like to have that. david: breaking news from cheryl casone. thank you very much, cheryl. liz: living in mansions, can you imagine living in a mansion made famous by al pacino in "scarface"? david: my little friend. liz: the house is up for sale. we'll tell you how much. david: a passenger jet destined for scrap, is transformed to a luxurious hotel suite in costa rica. we'll have details coming up. ♪.
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shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. (announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." david: time to go "off the desk." we all know this famous scene from "scarface," well, just imagine live inning the house that was made famous by
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al pacino in 1983. the 10-acre home is on the market for 35 million bucks. although the film was set in florida, the estate is in sunny montecito, california. the nearly 10,000 square foot home, four bedrooms, nine bathrooms and boasts views of the pacific ocean. the ground also include persian gardens, fountains, two levels of patios and four reflecting pools. not bad. liz: also off the desk, this boeing 727 takes first class travel to a whole new level. the old passenger jet was salvaged and then transformed into a luxury hotel suite in the costa rica rainforest. david: what? liz: the film sits among the treetops. guests shell out $3500 a week to stay in two bath, two-bedroom suite, that is cool with, a dining room, terrace and sue of the sea. david: that is cool to watch.
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number one thing will be april retail sales data. economists expect sales to rise 1.4% after rising 1.1% in march. liz: thank you so much for joining us. we have so much tomorrow. we'll see you then. david: "the willis report" is next. gerri: hello, everybody i'm gerri willis. right now on "the willis report," consumers getting a raw deal at walmart? the things you need to know bevies iting a bank inside the big box giant. seconds from disaster, a drone and a passenger jet nearly collide. whether you're buying, selling or just staying put, don't miss our special report, a user's guide to the spring housing market. we're watching out for you on "the willis report." gerri: another record day in the markets. later in the show we'll tell you about the opportunities for you but first, the cost of prescription drugs, soaring and it is not just the specialty
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