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tv   The Willis Report  FOX Business  May 28, 2014 5:00pm-6:01pm EDT

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liz: we are watching apple in the after-market session because the breaking news that happened in last hour, apple officially announced it will buy beats electronics by dr. dre for $3 billion. david: unbelievable stuff. gerri willis is next. gerri: hello, everybody, i'm gerri willis. right now on "the willis report," they know more about you than your friend and family. they're the big data brokers. now the feds want to give you more control over all that info. also, it's running season but before you lace on those running shoes we've got important information you need to hear. just about everybody these days is eating healthier. why is organic king, whole food's stock rotting away? our supermarket guru weighs n we're watching out for you on "the willis report." well last week, we covered the frenzy over penny stocks. you know those microcap invests trade in the pink shoots or
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over-the-counter. they are up over 40% as hungry investors scour markets for top performers. we were pretty critical of these invests. tonight one ceo is here to tell bus his company, a penny stock trading at just 5 cents a share. joining me now -- 5 cents. -- 57. tell us what your company does and why it's a good investment in your measure for small investors watching this show? >> well, thanks for having me, gerri. you know, let me give you a little background on the company. yippie is about to turn 6 years old in couple days. our fiscal year ends 5/31. we're a technology company that specializes in high security protocols for large volumes of data on private cloud architecture. a little background in the company, in 2010 we acquired a software product from a company which was rated the number one search product for five 1/2
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million dollars. and, on 2012 ibm bought that company for $135 million. so i think we did very well on a comp basis, on that purchase. two years -- gerri: let me interrupt you. we want to get to some facts and basics here, the kind of things regular investors look for today. when do you expect to have earnings? >> we've been ebitda positive for the that three quarters. our loss has been attributed to depreciation of the software programs we've acquired. i think last quarter we lost $38,000, which is nothing compared to a twitter. so, in grand scheme of things i think we're doing quite well. >> i believe you said in your filings you believe you will have revenue this year, that is, 2014. something like 1.4 approximately million what were your revenues last year? >> last year we were at 400,000. so we are planning to do about 300% increase this year. gerri: now i've seen in some of
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the material written about your company before you're really a search engine that prote families who don't want their kids to see bad things on internet. do you still have that business? >> sure. we still provide that. we, actually that is where we cut our teeth was in the education space. but when we came in that was when schools were losing tax revenue from their tax base and schools didn't have any money. so we spent all this time and effort trying to build these platforms for schools but quite frankly they couldn't pay for them. gerri: so that must have been disappointing. you say your big data integration. now there are a lot of big companies in that space. who do you consider your competition? >> ibm, sap, oracle, just to name a few. we actually took our company and kind of revamped after getting out of the education space to, to mold ourself into only doing big data for fortune 100 or fortune 500 companies. gerri: how many of those clients do you have right now?
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>> well, as you knows, as your producers know from due diligence we did together we have a couple of multibillion-dollar companies under contract. we have venture capital firm we're building a big data plat for for and we have miscellaneous smbs which we try to stay away from right now because the focus is big business. gerri: can you tell us names of those companies? , the big clients? >> i'm, she is breaking up. i can't hear. gerri: can you hear me now? >> say, yes i can hear you, gerri. gerri: what are the names of your fortune 500 customers? >> i'm not at liberty to, if you're asking for the name of some of our customers, we're under ironclad mdas as i discussed with your producers. we can't give that information out. but if you go to our press releases we've done business with companies like yahoo!, seven gauge learning, multibillion-dollar companies bought by apex partners. we're versed in the arena for
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big data. our specialty high security protocols for sensitive data lends us very few competitors in the space. pretty much the companies i mentioned earlier. gerri: as you go i want to show what you happened to the stock year-to-date. it is up and up pretty dramatically. as i mentioned at intro, 57 cents a share. i appreciate your telling us about this company. thank you. >> thanks for having us. gerri: now our panel of financial experts is here to weigh in. ed butowsky, chatwood financial investment. ric edelman and gary kaltbaum of kaltbaum capital management. i will start with you. are you an investor in yippie? >> no. gerri: why not? >> it is ridiculously speculative. this is not a criticism of this company. i don't track them at all. a penny stock by definition is ridiculously speculative. literally like going to casino. it is no place for ordinary individual investors saving college for their children or their own retirement this is
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something for gamblers and speculators to do and known else. over all majority of penny stocks fail to deliver in any way, shape or form and not keeping up with major market indexes. subject to ridiculous levels of volatility and fraught with risk. no place for ordinary folks, overwhelming majority, 99% of your viewers, gerri, have no business investing in penny stocks. that's why i don't do it. gerri: ed, you and i talked about this before. >> right. gerri: i'm a skeptic. i've been very public about my skepticism about these stocks but they are up and they are up dramatically. otc stocks are up 40% this year. a lot of people getting involved. everybody attracted by marijuana stocks. that is the flavor of the moment. should they be investors? are you an investor in yippie right now? >> yeah, i had never even heard of yippie before. by the way i love entrepreneurs. i think this guy is terrific. he is out there trying to do something. if i were advising him do reverse split could become a
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$5 stock, 10 for one and maybe institutions would look at hill. that point, maybe some people were actually start to write research reports. but as rick said, you've got about 70 years of investment experience right here on this panel. you know what? not one of us would ever recommend a penny stack stock because it it is not appropriate as ric said for any investor. the stock is moving up that is fantastic. a lot are not moving up. a lot are losing. when you're up 40% that might abbasket of them. still stick to what i said earlier last week. yippie, in this particular case, yippie i would not be a buyer of it. i support the man because he is out trying to do something but i'm not a buyer of this company. gerri: gary, when i look at stocks, they are so young, so new. what do we know about small business? they fail at overwhelming rate. for me personally i want to get into companies that have something of a track record. am i being too conservative. >> not at all. look, i love risk-takers but when you're dealing with penny stocks you're dealing with pure,
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unadulterated speculation. one thing that has not been mentioned, not all but many of these companies are backed by promoters. what they do, they're just vehicles for the stock price to go higher so the promoters can sell. they do this massive marketing campaign where they tell you they're in this huge gigantic industry but at the bottom, in letters so small, superman couldn't read them it says that they're going to be selling into any higher prices. so you just have to be careful. i have nothing against this company yippie. i don't know it from a hole in the ground. all i do know when all is said and done penny stocks are aspect latif can be. i rather you bet the belmont in last next couple weeks woo. gerri: you started talking about promotion. bloggers promote. >> that's right. gerri: how does this work? i don't know about yippie but there are some bad guys out there, right. >> yeah. gerri: putting yippie aside for just a second there are companies out there, that they're just not out there to grow a business. they're out there to take your money. how are they promoting
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themselves? used to be the boiler room and high pressure telephone conversations. >> that's right. gerri: what are they doing now? >> now there is chat rooms. there emails. i get 10 emails a day like everybody else on panel, talking about small company, started this level moving up higher. you see articles written everywhere. they cam at us from every different angle. some people look at them. individuals at home look at these, getting pushed up getting pushed up and as gary says shares they're buying are some people doing promoting. classic example of pump and dump. happens all the time. we're not talking about yippie. we have no idea. this man doesn't sound like that kind of guy. a majority of penny stocks are exactly that. pump them up, dump them and people are left with nothing. gerri: rick i want to show you companies on fire this year and getting individual investors attention. they happen to be in the pot space, marijuana space. green grow technologies. what have we got here?
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i can barely see this. hemp. canavest now should you be attracted what is essentially fashion in stock buying? >> no, absolutely not. you never want to buy the hot, latest fad because it will become cold just as fast as it got hot. keep in mind, that both finra and sec, these are the two major regulators in our industry both issued independently investor alerts, warning consumers that the fraudsters are focusing on marijuana stocks because that's where all the hype is. so, you're finding companies coming out of the woodwork completely fictitious, designed by crooks to trick you into investing your money with them. so you want to avoid these kind of get rich quick opportunities. successful invest something about decades, not minutes and days. >> and, gerri. gerri: go ahead. >> gerri what these companies do, they see what's the flavor
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of the day and what's hot. even if they're not in the marijuana business, they will state now they're in the marijuana business and they will have a vending machine or something like that. so they're always looking for what's the hot thing. i remember in '99, they would put dot-com at end of their names because that was hot. just have to be very careful. i'm not even saying these stocks are not going higher. i'm saying when all said and done usually investor holding the bag. gerri: all right. let me show you some sec traying suspensions in this category. fusion farm. cana business. cannabis solutions. petro tech oil and gas. these people are trying to feed on frenzy of oil and gas boom, pot boom, you name it. >> they did it in the biotech space, too, gerri, many years ago in early '90s. anything with bio in it was going public and people pushing it up. gerri: thanks for coming on. >> now we're seeing a lot of this occur in the virtual currency space because bitcoin gotten so much attention lately. >> that's right.
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>> there is always somebody who is trying to get rich quick and some promoter makes more money selling you the stock than by buying it themselves. keep that in mind too. gerri: make more money sell being stocks than buying it themselves. i like that. ed, gary, rick, thanks for coming on. very interesting what you had to say. we want to know what our audience thinks. what do you think? here is the question tonight, are penny stocks a good investment? log on to gerriwillis.com. vet on the right-hand side of the screen. i will show you the results at the end of tonight's show. more coming tonight. next three thousand reasons, three thousand, what you need to know big data is collecting on you. your voice is important to us. during the show facebook me or tweet me @gerriwillisfbn or send me an email @gerriwillis.com. at bottom of the hour i will read your tweets and what you say and what you think about penny stocks. here is what you heard. would you buy a stock, a penny
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stock. >> i have a few times. never worked out. >> would you buy a stock that costs less than five bucks? >> i think i only do it if i consider it a game. if you look at really the potential to make money i think you're probably going to burn yourself pretty bad. gerri: securities & exchange commission, they say, don't put any money in that you can't afford to lose. >> i mean if you watched wolff of wall street, that should be your-eyed al. if you watch the movie you would be afraid to buy any penny stocks? >> only "wolf of wall street." gerri: do you think it's a good idea? >> no. >> no. probably not. [ female announcer ] this allergy season, will you be a sound sleeper, or a mouth breather?
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gerri: massive trove of data on you. thousands of piece of information and you have no control over it. big companies do. online life what you buy, where you go. all kind of details. feds give you more powerful over that personal information. foremore, john ulzheimer credit sesame dot-com. great to have you on the show. federal trade commission says consumers should have more power. should they. >> i'm not so sure if we gave
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them more power over data they would do anything about it. we've given them wide latitude with power over credit report data and heavily regulated and by and large they don't do anything about it. simply suggesting they will do something because they have control is little bit speculative. gerri: speculative, but golly i like to know all the marketers who they think i am and my habits. my guess is inaccurate as any other report about there on me whether hit of my financial life or anything else. >> well, you know the interesting, the interesting issue that you just brought up we just don't know because we don't have access to the information, there is no obligation for the industry to share that information to us even if we asked for it. now some of the players in the industry are proactively, ask us we'll give it to you but i imagine 99.9 out of 100 viewers don't know hot players are and wouldn't even know where to go to ask for information if they knew it even existed.
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>> big companies, axiom, corelogic, e bureau, idn, tellious. more companies get into every day because there is big money putting together information. lots of details about each and everyone of us because finally computers can crunch all these numbers. >> that's right. gerri: what they're doing now is they're saying, some of these companies, i believe, i believe experian is doing it, you come on our website. you enroll. if you don't like what you see and want to change it, change it, right? the problem is, now you're giving them more personal details to track you down with. how is this information being used. >> i would argue that these companies no more about you and your patterns than you know about you and your patterns because some of these guys are storing thousands of data points about you. everything from, what kind of cars you like, what kind of websites you visit to what kind of potato chips you choose at
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store. you simply don't remember all that stuff in such a way you could crunch it and aggregate it and normalize and company can buy it to use it to market to you. some say if you want to stop sharing information just ask us we'll proactively stop it but by and large you have no control over unregulated information. gerri: can you ask them to stop collecting your information because i didn't think you could? >> well, you can ask them to stop distributing it. you can't ask them to stop collecting it. frankly, and not to blame anybody in particular but guess where a lot of the information comes from that they have? it comes from people like you and i. when we fill out things like surveys, warranty cards, byproducts. that information gets aggregated. a lot of places it ends up with big data and use that information to turn right hashed and market products and services to you. gerri: one of my favorite stories about this is a fellow had a young teenage daughter and found out his daughter was pregnant because she started getting marketing baby diapers.
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>> that's right. >> what a way to find out your kid is pregnant. big data was sharing information with target but dad didn't know. and that is kind of thing i think people feel is sort of frightening. that it is really peering so deeply over your shoulder, so much into your life, it is not just the offers you get and marketing you get. what might be withheld from you too. let me ask you this question. so let's say visa find out you're spending all money at bar on saturday night. doing things you shouldn't maybe. do they start with holding credit? do they start cutting credit lines? is somebody going to end up making that kind of decision about your life? because they have all these intimate details? >> not only can they, but they already have. and it was widely reported several years ago when a company called compucredit was sued. they disclosed where consumers were using their cards, perfectly legal by the way, you can use your card anywhere you choose to use your card. where they used their card told a story how risky you were.
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they would use that as a way to mitigate their risk. using it at places like marriage counseling, bars, was causing a problem for the card issuer. again how do i know. you tell me i can use my card where i want you. i will follow your rules b unbeknownst to me the rules are keeping me on short leash. gerri: exactly. give me the heebie-jeebies. thanks for coming on tonight and bringing clarity. now the government is out there trying to rein this in. >> that will make it all better. gerri: thanks, gerri. thank you. later in the show, google is going full speed with its driverless car. will customers give it a go? you want to hear about that. warm weather drawing out runners. have you seen all the people running in the streets? could it be dangerous to your health? details coming up. 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,
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common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. gerri: so cheeseburgers are not great for you. why are some people comparing eating them to running? the answer in 60 seconds.
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gerri: you probably heard the phrase, too much of a good thing, the mantra could be used, talking about running, people who participate in excessive running like marathon runners may have more heart problems than the rest of us. how is this so? dr. campbell from north carolina has some ideas, so, really?
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i can't -- marathon and eating a hamburger are comparable? >> i don't think that is accurate, eating a burger has a lot of fat and calories, running a marathon can be a great thing for your health, but it can be detrimental if you over do it. like with most things that folks enjoy. >> are there limits to how much you should run and stay safe. >> this research looked at how much is too much, number came up with, if you run more than about 30 miles a week, you may be running too much. these folks were shown to have higher rates of heart disease and plaques in the heart arteries. gerri: i am safe. if it is 30 miles a week, why do they get sick? do they think they can eat
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anything because they are exercising so much? >> i think it has to do with training. when you train your body is in a a constant state of inblameration -- inflameation. >> does everything expand get in the way of everything? >> a response to an insul, we need a day or an hour or something where we rest, give your body a chance to recover, inplay mainflammation is associh premature heart disease. >> how can i tell from u outside that i have it? >> one thing to look for while training, listen to your body, if you develop shortness of breath, chest pain. passing out or dizzy spells that
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can be a real sign you may have underlying heart disease that you did not know about. gerri: shortness of breath, maybe i should spend all my time on the couch, dr. kevin? >> no. that is one thing we can't take away, obesity and obesity-related illness in u.s. is $150 billion worth of he'll car cost, we -- health care cost, we must move, get off the couch. you have to find a sweet spot. gerri: about a half million marathon finishers near 600,000, last year, do they do everything wrong? can you do a marathon and still be healthy? >> i think you could absolutely do a marathon and be healthy, when you train, keep your training under 30 miles a week until those double of weeks before the marathon where you want to make sure you can run a couple marathons during that time, be mart about it -- smart about it, listen to your body, talk to your doctor, make sure
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you are fit for a marathon. gerri: i know those people that do those00 mil hundred mile runt must be intend on the body. >> absolutely. gerri: thank you dr. campbell. >> thank you. gerri: coming up lateer in the show, remember the salmonella outbreak from foster farms? guess what? a year later it is till going on. details. >> next a place you would spend your whole paycheck on. whole foods, why is whole foods now losing thefied figh food fih other grocery stores? we'll exam after the break. [ male announcer ] if you suffer from a dry mouth
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for people who suffer from dry mouth. gerri: remember whole foods, it used to be in place for shoppers and visitors but not more, stock is worse performer in s&p 500 this year, losing a third of its value, consumers are not flocking to whole foods like
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they used to, what is going on we ask fill from super market kneknew cure kne. >> they done that competition when they started. that was their model, they did, you know to almost like netflix and blockbuster, it evolveed. we wanted more organics, more fresh, fresh market, sprouts, kroger, safeway, everyone is now selling it less expensively than whole foods. gerri: my friends call whole foods whole paycheck it seems like the price points are higher. how much higher than grocers you mentioned? >> well, typically a grocer makes about 1.5% net profit a
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year, whole foods about 8%, they are doing about 5 times better than traditional store. so, as a result of this, consumers are shopping around, walmart has announced their new wild oats program, 25% less expensive than other stores. we have target getting into partnership on organics. everyone wants to sell healthy food, they are responding to us with simpler ingredients and if you look at whole foods they market it themselves. the first natural -- organic super market. everything in whole foods is not organic. gerri: do you think there is brand loyalty in this category any more, people talk about costco, they are loyal, but are they loyal to other brand names. >> they are and they are not when it comes to the price of
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food, you know, people are pinching pennies. however, one thing that whole foods has that no other food retailer has, they have more of a present on social media, facebook, and twiceer than anyone else -- twitter than anyone else, they need to get those people back in the stores with that. gerri: i have been a fan because i can find things there that i could ot find previously anywhere else, but i am starting to find them on other super market shelves, so now i am going to price comparisons, whole foods has cut some prices, have they done a good job of becomeing competitive? >> no, they have not, they have cut some prices, given lip service to the whole idea but their 365 store brand is properly price, and high quality, on amazon, you go to amazon.com or fresh, look at
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their prices on organics and other more natural foods it is terrific, you could save 20 our fort40% over the price of whole foods. gerri: i think i am the last person in world that still finds grocery shopping interain'ting -- entertaining, it is pathetic. thank you for coming on. >> good to see you. gerri: well many of us drive to the grocery store would you drive in a car that did not have a steering wheel or brakes? google hopes you do. the details on the push today a driver less ca losless car, jo,r story? >> they are testing it out no brakes no steering wheel, just a stop and start but th button.
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they would like people to get around faster, but this is a change in the way that cars and transportation will work in the future. whawhat is interesting googlea t the only one in the, they are getting press today, but we're looking at general motors, detroit ramping up driverless car technology, oddy is in the game -- audi is in the game, and tesla in the game eelan musk saying in a financial time op-ed maybe the technology is not quite safe enough to drive yet, he is not ready. a big debate about regulations, technology, and safety. gerri: i have to tell you, gm condition creat -- can't createn ignition switch that works. >> so far since they are not on the road yet, dmv in california
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has not proposed specific legislation, there is more and more lobbies pressure from google -- this front, dmv is expected to propose a clarified rule. gerri: i don't know about this i have been in cars that you know purport to almost drive themselves it makes me nervous, i feel like i want to be in control. congratulations to you on your engagement. >> thank you. gerri: we're so happy for you. >> so sweet thank you. gerri: you are most welcome, now to hear from you, here is what some of you are tweeting me about our poll question, are penny stocks a good investment good investment in penny land are rare but some found highly profitable. >> ernie tweets, great way to make money if done correctly. don't follow the pump-and-dumpers, and rick said, i made big bucks on penny stocks
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with automatic buy and sell orders, research, research, in lieu of e-mails and tips from others. >> a new report is sparking more outrage over how our government it treating our nation's heroes. and our consumer gauge, check out. all of these numbers, that matter it your wallet right there. stay with us. latte or au lait? cozy or cool? "meow" or "woof"? exactly the way you want it ... until boom, it's bedtime! your mattress is a battleground of thwarted desire. enter the sleep number bed, designed to let couples sleep together in individualized comfort. he's the softy. his sleep number setting is 35. you're the rock, at 60. and snoring? sleep number's even got an adjustment for that. you can only find sleep number at a sleep number store. and right now all beds are on sale starting at just $649.99. hurry in, sale ends sunday!
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gerri: new development in veterans, fair scandal, according to a preliminary report, a v.a. hospital in phoenix had 1700 veterans wait an average of 115 days to receive a primary kara, point. not 226 originally reported by phoenix v.a. now, top officials are calling for serious action.
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>> these allegations are not just administrative problems. these are criminal problems, it is time for secretary shinseki to step down, if shinseki does not step down vol tearly, i wall -- the president of the united states to relieve him of his duties, to fire him. gerri: fighting words from senator john mccain. here with more is republican maryland congressman and member of the doctor's caucus, andy harrah. thank you for comeing on the show, you are the perfect guest ton this block blockbuster reven tonight, i was shocked, this report said there were systemic problems throughout the system delaying medical care, manipulating records hide delays not just in a handful of hospitals and facilities but all over the nation. are you surpriseed? is it senator right, should shinseki be fired?
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>> having worked in a have v.a. hospital, military hospital, and private sector i am not surpriseed, senator mccain is right, this not limited to the v.a., this is a systemic problem, this is just the tip of the iceberg, you talk to veterans who express their frustration with dealing with the v.a. system on a day-to-day basis this does not surprise me, 1700 veterans on a secret waiting list without appointment for primary care, yesterday? gerri: here is what shinseki himself said, i have already placeed phoenix v.a. health care leadership on a administrative leave. -- is that enough? >> well, look, if you read the report release today, you find out this problem went back years. i think general shinseki's
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response today was too little too late, this was years in the making, should not have a whistle-blower position who retired finally blew the whistle, this is well-known, year after year, describing the probleproblem at the v.a. with g waiting times,. gerri: we have a detective on last night, who worked at miami v.a. facility, he said that patients there and others, all stand outside the v.a. facility and sell their prescription drugs or illegal drugs. people today saying that is a criminal activity going on, that the government sponsored taxpayer sponsored facilities, how does this get changed? bee have heads -- we have heads rolling people on a administrative live, is that a response? >> no, we have to have a serious discussion about giving veterans a choice of going to out of the
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v.a. system, with a private plan. we can buy them the equivalent of a federal employee health plan policy, the premium, and government subsidy, and give every veteran a private health care plan, we have to begin to look at that fin kind of alterne to fix what is badly broken. gerri: i think if you like the v.a., you will love obamacare, that is what we're looking at, putting everyone on a federal sponsored healthcare program. before you go, i see converting them to the private plans as a host of administrative head rakes too. how do they have background on the people, how do they get paid, it seems like a high hill -- >> you are right, transition would be difficult, staurt with start with new enrollys waiting for a first
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visit. give them their first visit and healthcare out of the v.a. then go to priority one vet rans, offer them a choice, jen gradually, those in the system may get better quality care. gerri: this whole thing is a tragedy, congressman harris thank you for coming on, sharing your expertise on this. >> thank you. gerri: time now for a look at stories on fox business.com, new news is good news for stocks, s&p 500 touching a new all-time high before pulling back a bit. >> shopper can't get enough of michael kores, reporting better than expected earnings. new fears about that deadly pig virus sweeping the nation, may be harder to contain than expected, a indiana farm is
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first to confirm a second outbreak, despite efforts to stop the disease, if ha -- it hs wiped out 10% of all u.s. hogs. >> obamacare is still unpopular with the majority of americans soasmore than 7 of 10 americansy it has a bad impact on u.s. >> those are some hot stories right now on fox business. com. we have more to come, my two cents more, the salmonella outbreak that wouldn't go away -- won't go away, why is there still contaminated chicken for foster farms on the market? we'll investigate.
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gerri: if you are making chicken for dinner right now, don't touch that bird until you hear our report, the potential perils of poultry, when we come back.
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gerri: welcome back, we want to update you on that foster farms salmonella outbreak, we reported it more than a year ago, another 50 people have been sickened by the tainted raw poultry, with more, tony, i it is a year late. what is going on? >> well, it is very perplexing this outbreak is still ongoing, it was just a few months ago that the cdc finalized thought it finalized the investigation, then more cases pop up. i think a lot of it has to do with fact that the current laws, that govern meat and poultry have a legal loophole where salmonella in particular is not
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a legally -- if it is tested by company or usda, product can still go into commerce even if it has salmonella on it. gerri: you can get to sick, foster farms said it cut its rate on salmonella on this cut up chicken from 25% to 10%, this is a win? >> this is an improvement. one of the problem is government has not set up performance standards for cut up chicken. it is still in the april stages of doing its -- preliminary stages of baseline studies, 25% of the initial cut, indicates it probably the industry average. but, the thing is here circumstance even with a 25% or 10% rate, that product can still legally go into commerce.
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gerri: so, no recall. i guess because of what you said before, that government does not seem to care much about salmonella. is that the reason? >> well, the -- one of the reasons that you don't have a rail is, it is not legally an ul adulter an. only time that government is take action with a salmonella, is that if people get sick and you have concrete proof this piece of chicken got the consumer sick. foster farms, being a very large poult reproces poultry processoa legal team that is holding usda to d dotting the i's and crossing the t*frb ty?
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>> now. recall on wolverines in. >> the usda updated a list of retailers who have carried the product. we're still at least the latest number show that 11 consumer have gotten ill, one of the consumers, today, finded suit again woulde wolfervene on recor hospitalation cost, the recall is still going on, a lot of folks got sick from eating the tainted meat in restaurants, and because of regulatory hindrances, usda cannot reveal the restaurants that sold the meat. gerri: they might go out of business. tony, thank you for coming on. >> thank you.
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gerri: we will be right back with my two cents more, and answer to the question of the day, are penny stocks a good investment? stay with us. dentures are very different to real teeth.
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gerri: well you can count me as skeptic on penny stocks, i know that some have logged a balloon shot, others fallen like a lead balloon, i like my chances with companies of more of a proven track record, a portfolio of the 10% of stocks with lowest historical volatility, did 19 percentage points better per year than 10% of stocks with greatest volatility, most vol volatile lost money at rate of 8% a year. at end of th of the day sleepint night has a higher value for me.
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my two cents more, that is it for tonight's willis report, have a great night, we'll see you back here tomorrow. >> we don't know how the situation will play out, there will remain grave challenges ahead, but standing with our allies on behalf of international order, working with international instutions has given a chance for the ukrainian people to choose their future. neil: by my math, president used word international a at least 32 times in his address at westpoint, the theme, we're no longer a country of one leading the world, and go in and involving ourselves in every @%curring in the world, we now do it in company.

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