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tv   After the Bell  FOX Business  May 30, 2014 4:00pm-5:01pm EDT

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"divergent" helped but it was under pressure from "hercules" and "frankenstein." [closing bell ringing] david: for all those say buy in may, go away. a lot of people bought in may and stayed there. liz: here go the bells on wall street. up move for the s&p 500. we've gotten some criticism for a lot of people say, stop, i'm tired of hearing about the records. this is dangerous. hey, we're just reporting news. don't get angry when the s&p 500 making new record after record. today no different. another three points to add to the index of the dow jones turned around. it was lower for much of the session. russell and nasdaq couldn't quite make it nonetheless on this friday we have a lot ahead as "after the bell" starts right now.
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david: let's get right to today's market action. we have mark lou shins ski, janney montgomery scott analyst. he said second-quarter earnings would have better impact. it wouldn't be hard to be better than the first. chris hobart says the fear of a bubble will drive the markets. he has several stock picks to play in this market. scott shellady from the pits of the cme. good to see scott. nicole petallides back with us. talk about apple for a second. it kind of typified what happened today. first it was way up. it then came way down and basically it was flat. why all the indecision in the market today? >> i'm not surprised to see the back and forth action. that is really what we've seen all year long. to see volatility over unchanged line or what we saw with apple. we saw it making new intraday highs we haven't seen since 2012. to see it pull back to test the highs, test that resistance and take a breather, only to test it
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again. what we've seen on apple, dave and liz, it has broken. it went from 605 to 615, 25 and now we're in the 630 range. i think we saw it above 640 today. i didn't write down high of the day but it sent a new intraday record that dates back to 2012. liz: since the beginning of the year, mark, we've seen stocks often volatile. i pick out gamestop because the ceo was on last hour to speak exclusively with us, they march, percentage point, by per percentage point higher and people fight the tape when they go against it when it comes to stocks. what clears the road ahead for people that say, am i too late to get in? >> for us, liz, we need evidence that the economy is on footing where consensus stood at beginning of the year expected it to be. that's what we're forecast something stronger second half of 2014. clearly we expect moderation what is likely going to be a
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snap-back performance for gdp, for the second quarter this year after such an abysmal report for the first quarter. but nonetheless i think it will be decent enough to warrant an attraction by investors looking at a fertile climate for corporate profits. as a consequence, valuations that appear to be rich today will be grown into by faster profit growth. david: but, scott shellady, i'm actually hearing some people concerned about deflation and perhaps a maybe not a pullback of a full percentage point like we had in the first quarter but not enough to get up to the 3% that janet yellen is looking for. >> well, how can we talk about 3% when italy is at 2.9%, or spain is at 2.8%? where are these interest rates coming from when we've got the peripherals in europe i would say very risky trading like there is no risk at all? here we sit with economy not firing on enough cylinders of the horsepower is not there the bond market is truth serum and
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telling you we have work to do. i think the 10-year ultimately goes to 2.25 and has an outside chance of hitting 2.15. every time we get decent economic indicator we have one followed up that is not as good. we haven't had two or three or four good in row. we can't turn economists into meteorologists and blaming it all on the weather. at some point in the time we have to look ourselves in the mirror around say the economy is not doing well enough. liz: chris, scott is so right when he speaks from his mind and the heart but the market has motion alless voting machine. there were two pieces of good data, durable goods and first time jobless claims of the both of them surprised and looked better than expected. do you stay in or do you think like scott is thinking sand say there has to be something negative around the corner? >> well, here's the reality. i do think something negative is around the corner. the problem is, seems like everybody thought that for quite a while. the fear of the bubble bursting
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has been there consistently really for the past several months, past several years. when we advise clients we have clients all the time fearful of this. reality is the fed continuing to keep interest rates extremely low. they're continuing to do quantitative easing. and as long as that happens, as long as on a global level we're also looking at zero interest rate policy money has to seek yield somewhere and it will look toward the market for the yield. there is no other place to go. you can't put it in your mattress to get return. you can't put it in the bank and get return. david: mark, specifically what happens, when the fed stops buying bonds? >> well, obviously you're talking about the majority of buyer treasury issuance at the moment in the form of the federal reserve and likely to cease its quantitative easing program in october. i think what you will likely see a little bit of pressure applied to treasury prices because of the absence of that buyer but i think natural buyers will fill in the gap because of something that was mentioned earlier. the fact is as low as treasury
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bond yields are today in the united states, they're still well above yields you find across the eurozone for instance, not so much the peripherals but countries like germany, france, netherlands. even ireland has a yield lower than the u.s. david: let me put a fine point on what you're saying here because it is important. a lot of people say when the fed does stop buying bonds we'll have a market reaction. you're saying no market reaction at all? >> i think very little. i think the fed has done a pretty good job providing narrative to market participants even while quantitative easing ends there is not going to be imminent shift in their interest rate policy and even the glide path ultimately towards higher interest rates is going to be very shallow and take a long, long time before it reaches equalibrium. liz: nicole, you watch all those stocks down on the floor of the new york stock exchange and as we look at sectors, what has really piqued your interest lately? what looks great and what looks like it is breaking down? >> what is interesting we saw a lot of risk-on sectors this week, right? we saw financials that were
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higher. today they were somewhat mixed. people are starting to invest in sectors such as financials that is certainly very telling. what also is interesting there is no clear different tiff answer to that. one day i checked financials were in first place and utilities in second place. so how does that even happen? utilities is a real defensive play and financials is a reallies can i play yet they're happening at the same time. even some of those momentum stocks we follow the social media type stocks those were really dwindling throughout the day today. so we started to see risk-off yet the vix, i see all green for retail, drugs, banks, yet the vix was lower. so, it just seems that we're having this melt-up that jpmorgan note actually said that this week. we're melting up and people are afraid to short and they sort of stay in this wait and see mode. we'll see if we get -- david: scott, tough ask about gold. it was down another $6 today per
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ounce. do we see an 11 handle before long? >> we do and i've been saying that $1300 gold is pretty expensive in deflationary environment. but funny enough along with everything else we heard today, because of the monsoons expected in india, the gold demand willing down. so we can blame gold down today also on the weather. liz: meteorologist, dr. scott shellady. scott, thank you very much. great to see all of you. mark luschini, good to see you. chris hobart. nicole, thanks tore coming in as always. david: nhl, bay ball season, soccer world cup, a dream team for sports apparel retailers. coming up we'll talk to the ceo of hibbert sports whose fast expansion is giving mode dell's a run for their honey. liz: looking at live shot of nhl store in new york city. by the way it brings in more revenue than the nba store, than
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all of other sports or remember ended store. david: you buy half of that stock. liz: i'm there every day looking for vintage king stuff. getting ready for the stanley cup championship. we're talking to a former nhl player is now an agent. he has bottom clients in the playoffs. david: is that roy? liz: it is roy. like the king. the french for kings. guess what? he trains his players to do things collectly with their -- correctly with their money. david: good guy. '80s rock stars are back in a big way. proving they still know how to bring in some big money, rivaling some of the top hip-hop acts. bret michaels is here to tell us his secret of success in the big business of rock and roll. ♪. [ male announcer ] what if a small company
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i don't use super poligrip for hold because my dentures fit well. before those little pieces would get in between my dentures and my gum and it was uncomfortable. even well-fitting dentures let in food particles. super poligrip is zinc free. with just a few dabs, it's clinically proven to seal out more food particles so you're more comfortable and confident while you eat. so it's not about keeping my dentures in, it's about keeping the food particles out. [ charlie ] try zinc free super poligrip. david: discount retailer big lots getting a major boost soaring 13%. liz: of course nick can coal petroleum -- nicole petallides has story from the new york stock exchange with breaking news. >> start off with the dow jones industrial average, a new record closing high. we surpassed the last one which was 16,715 today. looks like we're closing at 16,711. so a couple point higher than
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our higher record. s&p once again, 14th record of the year for s&p 500. heavy volume. we talked about rebalanciig of morgan stanley indices. today is one of the crazy volume days. new high tore big lots. multiyear highs. the shares jumped. raised forecast and outlet. comp sales are on the rise. big news for big lots as they streamlined the business. it was up 13%, closing 42.44, up almost five bucks. david: thanks, nicole. liz: s&p futures are about to close. let's head back to scott shellady at cme in chicago. scott? >> you well you know what? we're going to finish on a positive note here. ultimately i think for the year you will see us finish on a positive note, maybe five or 10%. i think it is perverse. you will have some accommodative effect feeling into the equity market and levitate higher.
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i don't like the melt-up theory but levitate because money parked out there needing to get into the market. a yields go lower and stocks rally which is kind of reverse. it will be very volatile and slowly but surely march higher because there is nowhere else to park the cash. david: that is the point. where else do you go to the won any? scott shellady,. liz: what is actually perverse, how badly the kings will beat your blawkhawks. david: oh. i'm just independent rangers fan sitting here. i'm waiting until you get into the stanley cup. then we'll have words, scott. >> thank you, man of the. david: have a great weekend. good luck. looking into the sports retail industry, the discount you may want to consider hibbett sports. this is sporting goods retailer, very interesting business strategy that keeps it isolated from the big name competition. liz: go about the big businesses don't want. the stock, while down 20% so far
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this year still has a company behind it that has great plans for expansion. it could see a big bump this summer as we head into the nba and of course nhl finals and world cup soccer. david: are there hockey finals going on right now? liz: maybe. let's bring in hibbett sports ceo and president, jeff rosenthal. jeff, you have a one billion plus market cap company that's publicly-traded. we'll keep out of it because you're not exactly in the hockey regions right now. what do you see in changings in buying patterns as you head into the summer? >> as we move into the summer definitely people are buying a lot of t-shirts, tennis shoes, sandals, those type things that people are in casual and active lifestyle. david: tell us about your business strategy. we mentioned in the inthrow you stay out of some big markets. you're not in new york. you're not in california. why not? >> well, a lot of people say
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they like competition. we really don't like competition. we like to go to small isolated markets. we like to stay at least 20 to 30-minute drive time away from competition. we like to go where we're needed, you know by the consumers. david: by the way interesting for a sports guy to say he doesn't like competition. liz: talk about the nba bump from the nba finals which heated up certainly. >> definitely all the sporting events, be it nba or nfl, college, sometimes hockey, we happen not to be in the market that hockey is playing in, but between the thunder and pacers and spur and heat, it means a lot, it brings a lot of traffic in obviously. a lost t-shirt and hat sales to us. david: i have to bring up a sore subject, that is that you lost 20% of your market cap in the past year. a lot of that has to have been because of this terrible winter that hurt some retailers. have you made back the money? because i know you've had a
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strong spring. has that corrected for what happened in the winter? >> yes, we had a great fourth quarter in november and december. january got really tough and first week of february with weather issues and snow and those type things but you know, ever since the second week of february business has definitely picked up as the weather has gotten much better out there. liz: what kind of trend do you see? are people more interested in going with professional teams or has college ball, which we know especially in the basketball arena has gotten so exciting and people are so into ncaa opportunities? do you see opportunity there? >> well, even though we have 938 stores, you know, we're predominantly in the southeast and we're in 31 states but college sports are so much bigger for us. you know -- liz: huge. >> if florida state wins or alabama wins or those type things it means a lot to us. but like oklahoma city thunder would be a very big opportunity
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for just because we have over 40 stores in oklahoma. david: jeff, since you have turned a corner from the winter doldrums i wonder if you're hiring now and what kind of people you might be hiring? >> we are definitely hiring. you know, especially where we'll be opening 80 to 85 new stores this year of the so we'll be hire those type people and also help us to continue to grow, definitely home office, i.t. people, merchandise people and so on. david: that's great news. liz: big-time sports apparel in small town america. that's a good story. david: jeff rosenthal, good to see you, my friend. i'm glad things are looking up. >> thank you. liz: jeff rosenthal. call them the power rangers. new york heading to the stanley cup finals. david: yeah. liz: listen, it has been a long time. first time in 20 years they will be at the finals. we're asking a former hockey all-star, now in the age of 38 of the sports top players
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whether these finals, what kind of revenue these finals would generate? david: wait until the rangers win. our next guest is concerned that janet yellen may actually be happy about our slack jobs market and be adjusting monetary policy accordingly. real clear editor john tam any is coming up. liz: looking for big companies that will pay you 10% in dividend. david: what? liz: yes. these are not small caps that are really, really risky. david: i want names. liz: these are large companies, david, and we'll give them to you. just for owning the stock you will get a 10% dividend? five names straight ahead. get your pencils ready. stay tuned. ♪
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liz: time for a quick speed read of some of the day's other headlines, five stories, one minute. first up, mercedes-benz hoping nintendo mario will help sell its suvs? how will that work? they are featuring the characterrer in japanese television commercials and nintendo players will be able to choose the new compact suv in mario cart 8, just released. very popular. spacex ceo and tesla ceo elon musk unveiling dragon v-2. look at that, david. got upgraded passenger area of the dragon cargo ship used by nasa. hopes that they will take astronauts to space by 2016. car crashes cost $871 billion per year according to national highway traffic
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safety administration. dui and distracted driving account for most of the damage. southwest airlines will have to pay $200,000 in fines for false advertisement. they advertised 59-dollar fares from at lant to l.a., chicago, new york and but did not include them in the ad. drugs will be included way u.k. is measures economy. it is expected to add the $10 billion to the country's gdp. david: drugs and prostitution. "wall street journal" and fbn's jon hilsenrath recently reported that janet yellen thinks a slack labor market will keep inflation low. when do we sacrifice growth in order to keep inflation down? inflation came way down in the 1980s exactly the time we were growing magnificently with rates up to 7% a year. is janet yellen actively pushing a formula that keeps growth
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down? john tamny thinks so an editor on real clear markets. a guest just about every week on "forbes on fox." with more later. let me read you the jon hilsenrath quote he mentioned about janet yellen. janet yellen argued consistently in recent markets are abundant with slack that will hold inflation and wages down. in other words, as long as you have that slow growth you don't have to worry about inflation. what do you think of that? >> well i'm glad you read the quote because it needs to be stressed there is no bombast, there is no hyperbole here. janet yellen literally believes that too many americans working and pros pouring is the source of inflation. if there are labor shortages, it leads to inflation of the kind that we had in the 1970s. that there is evidence that low unemployment ever caused inflation doesn't seem to concern her. there has never been evidence supporting this going back to pericles but this is exactly what she believes.
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david: could that affect her monetary policy if in fact you're right and that is what she believes? >> of course it could. it affects most fed chairman monetary policy they believe what is false is true. but all we have to do is look around us. we look at boeing. it created the 787 dreamliner in seven different countries around the world. nike has never manufactured any of its products in the united states. apple manufactures most of its products overseas. the point there is that the u.s. is not an island as the fed's models presume. in fact the u.s. and its most productive companies access the world's labor force along with the world's manufacturing capacity and in producing good of the idea that labor shortages here could be a source of inflation is belied by basic economics. david: even if you look at just, just the united states, i mean there are also sorts of contrary examples as i mentioned in the 1980 ads, we were growing, four, five, 7% a year and yet we had
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low inflation. the converse of that, by the way, is true in the late '70s. we had very high inflation and a slack labor market like we have now. so why would she believe this if the evidence is so clear against that theory? >> i don't want to seem flippant it staggers me that could believe it. anyone that grew up in the '70s, we all remember the '70s, that was malaise decade of slow growth yet inflation was very high of the as you point out in the '80s and '90s, growth rocketed upward yet inflation was very, it did not exist. so what it tells you in fact that the fed's models and janet yellen's models get it backwards. would i throw one other thing in there look how we live our lives today in the united states. i never deal with a live human being when i buy gasoline, when i buy movie tickets, plane tickets. to go to walmart or cvs i do self-checkout. markets have long innovated around labor shortages yet the fed bases its models on keeping
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the economy slower than it normally would be in order to keep inflation down when in fact growth is the ultimate enemy of inflation. david: right. you know, we're always looking for indicators and of course when we go to the grocery store we definitely see signs of inflation. on the other hand gold, has been acting in very strange -- coming way down recently. what is gold telling us about inflation right now? >> gold's actually telling us a very good story. when you consider two years ago, gold was at $1900 an ounce and gold is the best positionsy for the dollar's value of the fact it is down into the 1200s, signal that the dollar is much stronger. we're not out of inflationary territory but in fact we're moving away from it. david: forgive me for interrupting. could that simply be telling us that the europeans and others are deflating their currency even more than we have been? maybe it is just in relation to theirs? >> i don't think so.
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if you look throughout, really we've only had floating currency since 1971 so we don't have much to work with but usually the u.s. is the lead dog. when we devalue as we did in the 1970s, the world follows us that is why it was bad decade for growth around the world. in '80s and '90s the u.s. outperformed a lot of currencies but the beauty there a lot of currencies followed us upwards so it was massive growth. the point inflation is a function of devaluing currency. we had an inflation problem under bush and obama precisely because the dollar was weakened. guess what, unemployment was higher? why is that? when investors invest and create jobs they're buying future dollar income streams. a weak dollar is driver of higher unemployment. the fed believes the opposite. david: gotcha. you can have a strong dollar and strong growth. we saw it during reagan and clinton administration where we
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also had a strong dollar. john tamny, great to see you. "forbes on fox" at the fox news channel at 11:00 a.m. if you like what you heard from john now, you will hear even better stuff tomorrow. liz: david, you have been out on the streets and the big apple is turning blue. ranger blue shirt blue. the team securing its spot in the stanley cup finals, first time in two decades. we're talking to a former nhl player and now agent for nhl players who has clients in the playoffs. what is at stake for all these players who make millions but during a very short window? what does it really mean once you're in the finals? does it really help you with endorsements? more importantly, how do you go on with the music once it stops as far as business is concerned? david: talking about music, 1980s rock 'n' roll is back in a big way this summer with acts like bret michaels, motley crew, kiss, they're all hitting the stage. that big hair means big profits.
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profits rivaling those of the big hip-hop artists of the business of rock and roll coming up next. ♪. i ys say be thman with the plan
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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. hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.
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david: the 10-year treasury yield is currently paying out just 2.4%. meanwhile the dow is flat for the year and energy car company, energy company cvr refining, i'm
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sorry. whoa. all right. gang. we are getting a little jumbled here. liz: stock screener. talk about that. you know if you wanted to make money, right, and own a company, that brings in about 10% in yield, we found five stocks with a market cap of more than 3 billion. so they're big enough right? david: yeah. liz: with dividend more than 10%. david: what is happening by the way we're having a little bit of prompter issue. stay with us folks. real estate investment trust american capital agency currently pays a dividend, liz talked about this, 10.9%. invesco mortgage capital, ticker ivr, paying out 11.2%. you talking about where is yield? here is yield. specialty finance company, shimera investment corporation has a nice dividend of 11.4%. prospect capital corporation, currently has a dividend yield of 13.3%. and energy car company, energy
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company, cvr refining has a whopping 14.6% dividend. are you looking for yield folks, there it is. you can look this up by the way on our facebook page as well. liz: facebook.com/afterthebell. the new york rangers,/hashtag amazing, are playing in the stanley cup finals for the first time in 20 long years. they beat the montreal canadians in game six last night with a battle of the goalies. shares of madison square garden, the owner of the new york rangers climbing today up 3 and a third percent. it has been a very, very nice couple of days, the 11 days the stock has marched higher and higher. now with the chicago blawkhawks against my los angeles kings facing off tonight, the finalist be teams in massive hockey markets, the biggest of the big, new york, chicago, l.a. so will the series push hockey-related revenue to new heights and how will it affect players themselves? let's ask former nhl player
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allain roy. al, gait to have you. thank you for calling in. you represent about 38 players right? how many of them are actually in the finals? >> i do represent 30 players. thanks for having me on board and great pronounciation. liz: roy, means my king. >> i know. i still have two players playing. i represent derek dorsett with the rangers and represent sheldon in chicago. so i have nobody in l.a. doesn't mean i'm rooting against l.a. liz: okay, thanks. you're a hockey-only agency. and that's what i find really interesting. hockey is getting more and more respect as both what, the salaries and revenues for the entire nhl have been driven but how do you do things differently? >> i think in the hockey world obviously we're geographically we spend a lot more time in canada and some of the more nordic countries of europe.
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and east asia. so our recruiting is a lot different but as far as the hockey model goes i think probably the closest model on the asian side would be maybe baseball because the age of the draft and basically how the league is run, with the agents but, yeah, i've been at it for 15 years now. we have about, you know, almost 100 players under nhl contract which 38 played in the nhl last year and we're, we're kind of a middle the pack to the upper portion of the agencies. liz: as contact sports go you have to say that it is, national football league and national hockey league that take the biggest hits. these guys have very short window which they can make money through endorsements or plain ol' salary and they need to have that life after hockey. i remember last year there was a black hawks player played with a torn liver and broken ribs and all kind of things.
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that is great, he won. at some point that will weigh on him. what do you teach as an agent to these guys as far as learning businesses and starting businesses? you yourself played a short time in the nhl, you were also back in the day, a goalie for harvard. you won the big championship but now you're an agent. clearly you found another path to making money. >> yeah. from talking to agents in other sports i do have to stay it sounds like most of the hockey culture from our players is a very conservative one when it comes to the financial side. i think players are careful with their money. they invest wisely and conservatively and i think a lot of them start thinking about their post-career during their, highlight of their career. that's what we try to stress as agents. don't leave it to another day, when you're playing in the nhl and you are a big star or have a lot of people that want to be around you and meet you and be part of that network, build the network up while you're playing because when it is over you will
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need to rely on the network to go on and find something else. liz: we're showing lundquist's amazing save last night. the most stunning thing i've seen in a long time. he also in earlier play, my kid and i were just screaming, he almost took a skate to the head. they wear helmets and they need life beyond the nhl and playing games. talk about revenue. nhl and revenue, a lot of news the l.a. clippers, the basketball team is going for 2 billion. the closest to that is toronto maple leafs to value. here are the three remaining. i'm not surprised that the new york rangers is not worth a billion. maple leafs are higher, 1.15 billion. tell me why. do you expect prices to go up, is specially l.a. being mark key markets and only 450 million -- marquee. >> i do expect values going up.
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the part of the increase in franchise values was the last cba where revenue sharing went from 57-43 in favor of the players to 50/50. i think it made it a lot more viable for owners to turn a profit now with the 50/50 revenue and i think the league has done a great job selling the game. our revenues have been growing. post-lockout, it's, things are looking up. the tv contracts have gone up. the canadian tv contracts is healthy. the u.s. one will get healthier. liz: all right. >> i do think all those things are going to create a much, much stronger league and higher franchise value. liz: good luck to have you, and good luck to your players, but not too much luck to the black hawk's player. >> good luck to your kings. liz: see you soon, cg sports ceo and president. >> thanks, craft beer industry is booming. we'll introduce you to one of the original craft brewers to see how they are growing and looking to expand beyond their
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local market. liz: '80s rockledge end are still bringing in the bucks, yeah. but are they more business savvy than today's very wealthy hip-hop artists? we have "wall street journal's" lee hawkins with a very interesting perspective on this coming up.
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david: the eight at this's music scene may seem like ancient history but some those legends are going strong and making a fortune on very lucrative
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licenses deals. are they giving today's rappers like jay-z and. diddy a run for their money? liz: "wall street journal" celebrity business reporter lee hawkins sat down with rocker bret michaels and how he keeps his brand growing. this is interesting, it has been quite a bit of time since he is truly famous. he is extraordinarily successful. what is he doing? >> for over 30 years this guy and others have been touring and hitting the touring market very aggressively every summer. from there, what they're able to do is diversify into merchandising and all these other businesses. restaurants, we saw vince kneel from motley crew with a tattoo parlor. bret michaels really broke into the reality tv world with the "celebrity apprentice" and also had his own show as well. and as a result of that he has been able to recreate himself and expose himself to the millenials. david: by the way he was tempted a while back to sell off or what seemed like a lot of money, 100 grand, right? >> he was going to sell off,
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well they wanted to see him sell off his publishing which was about a 100,000-dollar offer. if you know the song, "talk dirty to me," that could have been crazy if he had done that. 32 million records later he wouldn't have seen those profits. what he did he kept 90% of all of his publishing. david: get 100,000 in cash versus an unknown future but he stuck with it. >> struggling musician in l.a. which he was at the time. sold it off, kept 90% and sold off 10% and managing all the licensing and putting into movies and everything. it turned out to be a brilliant decision. liz: you think about other big names from the eight at this's, and even before then, aerosmith, kiss, which was big in the '70s and trailed through to the '80s, what have they done? we've seen kiss come out with branded stuff today, everything from, i think we saw a casket for a funeral? >> i knew you were going to say that. liz: gene simmons has a casket company. >> that is question, is there a limit to how far you should go?
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i mean, look, when people used to see them in town with the makeup on or without their makeup on, either kiss is in town or circus is in town because they were like that. they were caricatures. but at the same time they cashed in. they were the first group that really glammed it up and figured out a way to make that persona appealing. pyrotechnics in these, great things that you see in the show, the fact that they, they're so, they're so powerful and energized in their shows, keeps the young people coming because they're not getting that with the new music. they're getting a dj standing behind, acting like he is placing an instrument. these guys are singings playing instrument. david: they go on tours that last forever. used to be a two-month tour, now you have two-year tours. >> motley crew especially, two years on, one year off. two years on, one year off. they have done it. now they're saying final tour. david: that keeps the brand everywhere. you can go all over the u.s. >> that is the thing. they're saying this is their
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final tour. i don't believe it, without the touring you have no core to your business. that's drives everything. and that is how they really made their money over 30 years. liz: like the eagles and stones of the it is our final tour. no it is not. >> think about the number of groups that we mentioned that were megabands. we're not going to see that anymore. we see one one direction. here is why. it is very hard to sell out a stadium. lady gaga isn't selling out stadiums anymore because the market is very fragmented because the hard to get attention. david: lee hawkins. great to see you. "wall street journal." our guy here at fbn. the craft beer business is on a role. we'll hear from the founders of one brewery on eastern long island has been in the game for years but now it wants to expand beyond the island. ♪
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david: demand for craft beer is rising with sales climbing 18% last year. now while many companies stay local, one craft beer company is trying hard to break out. big beer companies like miller coarse and anheuser-busch have been losing market share in the u.s. as more consumers are turning to craft beer. but despite the rise in sales,
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craft beer is still only accounts for 14% of the $100 billion spent on beer each year. that means there is plenty of room for growth. enter up start montauk brewing company. its three founders began recipe crafting and testing batches six years ago, in the early stages of craft beer revolution. >> we started in my basement right here in montauk about a mile from the brewery. about 2008 we started brewing really small batch, five gallons at a time. the beer was good. so we realized we were on to something. david: before they could start marketing these beer pioneers had to raise capital and overcome sizable regulatory hurdles. >> it is tremendous amount of paperwork at the state level, federal level and then also our township. there was no brewery in the town code. when we approached east hampton town they were supportive but it took a long time. david: relatively short period of time the company's more than doubled its production. at its tasting room, montauk
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brewing company currently has four beers on tap. a selection that changes with the season and something the founders plan to build on in terms of size and beer selection. >> right now, 2014 we're looking to brew some 2,000 barrels, give or take. we'll see what happens, but the plan right now is 2,000. we've already thrown in another batch or two this summer we had not planned for. so might be a little bit on the higher side. david: the batches include montauk brewing company's own twist on seasonal and citrus infused beer varied as their color from wheat gold to full-bodied brown ale. the first two years it was only available by draft or large glass 64-ounce jugs. but the microbrewery began offered first packaged products. >> fits the vibe we're going for. the can lends to our brand identity. we want to go with the nautical field, the colors, the flag. as we grow new styles we'll keep
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consistent design of the cans. >> consistency is vital as montauk brewing company plans to introduce its beers beyond long island late they are year but at a very measured pace. >> we will be entering new york city this year, 2014. so that's exciting for us. there is huge demand for it. we get calls and emails pretty constantly to get beer into, brooklyn, queens, manhattan. we definitely want to grow the business. we want to grow it properly and take the right steps to really build a brand here and radiate out. david: by the way the only woman drinking beer in that package was our own shauna smith. thanks to shauna going out there doing such tough duty going to montauk on beautiful day drinking beer. liz: what goes well with beer, pizza, right? david: pizza on beautiful day. liz: might call it pizza express. how one company is already in the drone delivery business in a congested urban area. how does that work? details on the flying pizza delivery when we go off the desk. david: you were making a segue?
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liz: yes, i was. david: bold did i going where no artist has gone before, the ultimate moon project. we will tell you what it could look like. ♪ [ laughter ] smoke? nah, i'm good. [ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq.
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liz: let's go off the desk. swedish artists and scientists are collaborating to land a small red house on the moon, creating first ever art installation in space of the project wants spacex to deliver the house of the project is currently seeking $15 million by wayed crowd foundings. every dollar contributed will bring the project 82 feet closer to the moon of the moon house, will fold up into a shoe box sized package and unfold and self-assemble. david: rather by a renoir. also "off the desk," hungry? order a pizza delivered by drone. a pizza delivery in mumbai
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bypasses traffic by delivering pizza ten minutes flat. it was flown to a roof of a high-rise development. it raised some security concerns with mumbai authorities. have a great weekend. >> liz: go kings and "the willis report" is next. gerri: hello, everybody, i'm gerri willis, right now on "the willis report," the clippers sold for $2 billion but the sale races important questions for anyone, not just billionaires dealing with asset sales and family trusts. also the class of 2014 with, the most debt ever. we have ways for parents and graduates to deal with all those loans. the hottest trend in bathroom makeovers. the high-tech toilet a thrown that cost as king's ransom. we're watching out for you on "the willis report." gerri: the va scandal today, taking a turn many predicted and even called for, the resignation of veterans

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