tv After the Bell FOX Business June 10, 2014 4:00pm-5:01pm EDT
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[closing bell ringing] liz: don't say we didn't tell you so. we had paul raines, ceo of gamestop two weeks ago and he said look, this is a company that can do really well in the fought ture because his numbers are looking healthy. the bells ring on wall street. let's take a look. guess what? we have maybe squeezed out a couple of gains with the dow and nasdaq just slightly higher here. dow jones industrials. these numbers are still settling. it could change. russell 2000 which behaved very interestingly lately. having trouble and doing well. up over a quarter of a percent. right now the "after the bell" is starting so don't move. adam: we want to get to today's market action. we have january any capital markets who is bullish on the markets through the summer. on the flipside, joe durant, united capital ceo. he is advising investors to be
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cautious on markets right now. and larry shover in the pits of the cme. let's start with you, larry. i want to ask you a quick question. you seem to be more optimistic than i would be. if we have trillions of dollars of capital on the sidelines doesn't sound like companies are investing in consumers or themselves. so why would you be optimistic about the market? >> right now i think it is more of a multiples market and multiples are not overvalued. my estimate is $119 for 2014 that puts us at 16.3. that is not overvalued. i'm rolling close to 2015 at $130. that takes us up 15 times. when you add that on top of accommodative central banks and on top of healing economic data. i think least path of resistance continues to be higher. i do recognize the fact that multiples aren't cheap but they're not yet overvalued. so i think the pain trade continues to be higher.
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liz: now we get to dan. you are bullish on the u.s. markets. you don't let a day like this make you question everything. so what happens in what is always expected to be quieter markets during the summer? >> yeah, well, i mean, if you look in terms of trading volume and amount of excitement that surrounded the stock market, not just this month but even going back to the beginning of the year. my opinion, main street is still, majority are on the sidelines. they don't care too much about the u.s. stock market. gentleman before me talked about multiples not being expensive. stocks are breaking out to new all-time highs. nobody is buying them. there's a ton of cash on the sidelines. a ton of cash is plowed into fixed income. that gives me a sense markets will keep pressing higher trying to prove themselves in main street investors trying to get them involved in these stocks. we always give allowance for a correction. i could see a easy 5% on s&p. that would give you support
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level from 1850 to 1900. other than that we believe is inflationary bull market for stock pricing. we're still overweighting that sector or asset class versus everything else. even into the summer months. adam: jo, let me ask you, what something dan said about inflationary bull market. sound like another way maybe a bit of an asset bubble in equities. might even feel at least to you like the summer of 2007? >> yeah. well, i think we're either in the summer of 2007 or the summer of 1997. what you have, a very good recovery, no real meaningful declines. we have 40 months without a 10% decline. vix, at the lowest levels you see. that is 98.8% in how often we are higher than we are today. and then lastly, biggest concern to me, is the price to sales ratio. 56-year high over two types. so what i see is that the underlying economy and the
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earnings have not come through what we're seeing right now, is everyone is still saving money. a very nice housing recovery that has slowed down, that has caused economic recovery. and i don't know what more can happen. when i see this much, frankly complacent optimism, it is not a great time to make a lot of money going forward. liz: balance it with what dan said he. for the most part people are on the sidelines. i go back to larry shover. price to sales to see that at 65 is a little bit disconcerting. when you look price to earnings ratios in the aggregate, larry, we have 16.5 times projected earnings. are you worried about that or historically still low? >> historically right in the middle. am i worried? i'm a little bit cautious, meaning we can't sustain any kind of political or geopolitical event going on.
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there is not enough shock absorbing in the market now. we've rallied too much. earnings per share a little bit high. it is not overvalued by any stretch of the imagination. but we can't absorb any kind of bad news in the market some we have to be nimble and very careful. i am not overly worried. >> dan, i have to pick up where larry just left off. almost the titanic, avoid the ice fields. you will be okay. you think consumers will pull back. talk about where you think he ken supers should be pulling back. where do you like stocks? >> we see them leading markets. they led the last cycle. we think somebody new will lead. technology is one place we're putting our money. we think this is a long-term bet. this is long-term investment. we look at stocks like intel, cisco, texas instruments. these are within the semi group. these are buildings huge bases. these stocks have been basing for the last, 1012 years.
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i'm very much out of the spotlight. they're cheap relative to other sectors. money flow is really starting to rotate into them. a lot of groups pay dividends. these are benchmarked to growth. these are typically early cyclicals. these are types of things you want to see lead the market. so tech is one of our favorite plays. we continue to sponsor that group in terms of fund allocations at this point. liz: tech with dividend of the which brings me back to. joe, you like high yielding stocks. let's talk about where people could park their money right now, knowing what you feel you know about the future of the markets in the next couple of months. name your favorite areas? >> yeah. one is to be in larger companies with dividend. interest rates will stay low. evy which is high dividend i-shares product. even international real estate there is nice etf you can own, rwx, that participates in these low interest rates, reasonably slow economic recovery.
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nice way to be there. number one, people should have the overall allocation reasonable. we've had 200% increase in the market. a lot of people we see coming into the our offices have not rebalanced their portfolios. they have a lot of risk than they originally envisioned. look at your pout foal. make sure you get dividend yield from your stocks. adam: dan, real quick, something else you want investors to take a look at, banks. one thing they need to be careful of, last earnings season a lot of banks were losing on their trading? will that continue or are you expecting recovery with the banks? >> that is tough. to your point. earnings season is coming up. banks are reporting in july the. one of the things we're look act banks. they are one of the most unloved and underweighted sectors. people really hate them. one of the things people argue, higher rate environment. how will they perform? liz: hold on we have to interrupt you.
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we have breaking news, guys. we've got breaking news on aig. aig has named a brand new ceo. the ceo is mr. peter hancock. he will be the president and ceo starting september 31st, taking over for robert benmosche who took over the company during a very difficult time. he currently serves, mr. hancock currently serves as executive vice president of aig. so he has been within the company. he also will join aig's board of directors. that will be effective september 1st. mr. benmosche is expected to resign from the aig board of directors on september 1st. adam, he will continue to advise peter hancock going forward. adam: benmosche as you pointed out he has been crucial to aig's revival since 2008. going into what was a beaten company and bringing them up. he stood up for when a lost country was demanding blood because they were paying bonuses. he said i need staff there. he stood up for them. liz: he did. the company certainly done well. it is pulling back slightly.
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it was pretty much telegraphed that mr. benmosche would be stepping down. that is our breaking news. we go back, so sorry to interrupted, dan. you can finish your thought. >> that's okay. i'm sure we were talking about the banks. life insures, that is another group we're liking. they have been leading the sector. we believe they're postively correlated to the rate environment, the long end of the curve. everybody thinks this will be muted interest rate environment. as interest rates press ahead in months and years going forward, we think that strong correlation will allow financials really to start leading the tape once again. a lot of banks are very cheap. that is another sector where we think sectors could -- investors could find value. you're paid to wait. the charts look great. that would be under accumulation. that is another go-to group. that we would recommend to investors at this point. adam: we have to stop there. larry shover, we'll see you in a few minutes when the s&p futures
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close. liz: thank you, everybody. >> >> new details showing exactly how widespread chinese hacking really has become on government agencies and large companies. could be your company. those hackers getting in using popular office software. yes, you heard me correctly. the software most of us all use. we'll talk to the author of a disturbing new report about his findings and how vulnerable you may be. adam: your car dashboard has become more than an odometer. it has become a technology hub. the new face of the dashboard could be hidden, or at least a hidden gold mine for investors. we'll tell you how to make a play on this next. liz: speaking of music. adam: what if you could invest in artists like justin timberlake, usher or three doors down? coming up we'll show you how you can take a stake in songs and musicians as alternative investment. what artist or song would you invest in?
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with the story. >> multiple stories surrounding these brewers. we kept a close eye on tap, that is the ticker symbol. i like it. moulson coors brewing up five 1/2%. now on the back of speculation that it may buy miller coors. so it could be a joint venture with miller coors and sabmiller. this is according to societe generale. they have been talking to bloomberg as well. we'll see if that deal moves forward. anheuser-busch inbev proceeding to take over sabmiller. that is completely intertwined. the other story i particularly enjoyed, brewers pertaining to the world cup. don't forget you have sponsorships, right? anheuser-busch inbev and they have sponsors and budweiser. they're hoping for a big tie-up between brazil either argentina and mexico. that would help brewers along. we saw brewers hits 52-week highs. we're watching that. bernstein did indepth research of that. back to you. liz: nicole, thank you very much. adam: s&p futures are closing.
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let's head back to larry shover in the pits of cme. larry? >> setup is currently muddled. we rallied 80 points since middle of may in a straight line. we've been down only five days. of those five, only two days were three points or more. we have a news drought. we don't know anything. sipes like the market is very -- seems like the market is static until then. fomc on 18th. pmi on 23rd. 30th eurozone inflation and second-quarter earnings season on july the 8th. so any of those could be narrative changing. right now the equity market is very uncontroversial, it loves the stackic environment. it wants to grind higher right now. that is it. liz: that was energy. we like larry. he is juiced up even though the markets are closed. thanks, larry shover. >> you're welcome. adam: from backup cameras to interactive radio to wi-fi. the idea of a connected car is taking off with the average american spending 16.5 hours a
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week in their car. companies are eager to get the attention of a driver. liz: what about the investment opportunities here? can you, the investor, profit from the rush to dominate the dashboard? we bring in james marsh, piper jaffray senior media, entertainment analyst. it is fascinating to see now how every single car company realizes when their driver gets into their car they need to be automatically, totally connected. what happens next in this very fast-moving opportunity? >> i think they continue to invest in the sector. i think you see radio companies fighting. this could be a flashpoint for broadcasters, satellite radio brad cast terse as well as internet streaming players. adam: if you have money to invest in the companies we'll talk about in a second you still have to be ready to hold on for a long time because you don't think this will hit the critical mass until 2020? >> no, i agree adam. it's a long-term trend. product cycle for cars is extremely long. get a new sell phone every six
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months. they design a new car every six years. it will take time to get to the critical mass, which is 25, 30% of the fleet and that is probably 2019 and beyond. liz: talk about entrants trying to catch the ear and eye of the investor and of course car companies. there are all kinds ofter rest teal radio companies. there is sirius. there is certainly pandora. who is right out front already? >> i think incumbents are broadcast radio which generate about 70% of their ad revenues in the car. so they're the incumbents. they are going to use hd radio and new technology to come up with new revenue streams to try to compete there. siriusxm is fairly well-anchored into the car today. we expect them to continue to try to differentiate that offering. moving away from music and rely more -- liz: that is $3 stock. liberty media owns a big chunk of the company. where is the opportunity for sirius? >> we think it is a $5 stock over the long haul. we like the free cash flow
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charactertics of company. we like positioning in the market. we like operating leverage. lots of things to like about siriusxm. adam: you say don't count out traditional terrestrial broadcasters, like cumulus. they're losing market every year, 2% of the market share is going away from them? >> we estimate they're losing 2% per year in listeners. they have some new revenue streams coming in. with the hd radio they can tag songs for sale on i tunes. they can have new revenue. this is contrarian call. a lot of people think radio broadcasting is dead. we don't think it is dead. liz: it is not dead. adam: 14 billion-dollar ad market. liz: get in a car with no radio? forget it. talk about pandora. pandora wants to hook up with a lot of automakers and has done some i know apple is trying to do this too. intel wants to be very much in
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the connected car. who is the winner there. >> the clear winner is pandora. they took this very seriously earlier. they recognize the product life cycle for these eoms is very long. so they were there early. -- oems. the good thing for them they will be able to gain listenership in this market. as i mentioned before a large percentage of listership takes place in the car. a large percentage of ad dollars take place in the car. adam: wouldn't it make more sense for combination of pandora and some terrestrial group. >> they have is subscription ad-based service. i don't see that in the short term but maybe over the long term. liz: it is a fascinating growing area. adam, james, rather thank you so much. i think it is fascinating to watch this growth. >> thanks for having me. liz: james marsh. startling new details of how china's military could be spying on you. how are they doing it? the ceo of cybersecurity firm,
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we've got them, the one behind revealing all kind of information you need to know. we've got a new report. adam: music fans, get ready. liz will sing, "let it go." you can get some royalties generated by your favorite songs. we'll talk to the founder and ceo of a company that has invented a fascinating new investment vehicle. you will love it. liz: if you're worried about higher meat prices, this grilling season there is a drive-by meat delivery service. look on your screen! unbelievable. wow. it's a differry service that could help you cut your costs. details ahead. adam: make a killing on road kill. ♪ i ys say be thman with the plan
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adam: time for a quick speed read of some of the day's other headlines. five stories one minute. facebook accidentally releases and pulse snapchat competitor slingshot. the app lets users send photos and videos which disappear after they have been viewed. toms is under sale by "los angeles times." the company could fetch up to $600 million. retailer uniglow plans to raise prices by 5% of the japanese company says hike due to rising material costs and weakening yen. u.s. foreclosure activity fell to an eight-year low in may according to a report by realtytrac. filings dropped 5% from april. report from cisco estimates that videos will account for 84%
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of the internet traffic in the u.s. by 2018 it the report shows the world cup will generate nearly as much internet traffic as the australia had all of last year. that is today's "speed read" with time left to spare. liz: weeks after the u.s. justice department indicted five members of the chinese army allegedly stealing trade secrets from the u.s. companies, a new report accuse as second group tied to china's military and accuses them of online spying. adam: what does this tell us about the size and ambition of china's campaign to trade military information? joining us now, is george kurtz, cofounder, ceo and president of crowd strike, the organization behind this new report. what people need to understand, is that if you use very common software on your computer, microsoft office, is it? you might have an open door to this kind of hacking s that accurate? >> that's absolutely accurate. if you look at a lot of techniques we see in these
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targeted attacks, often times they take advantage what we call a spearfish. lend sending what looks to be legitimate email into unsuspecting user. you simply click on link and open an attachment. you could be infected and your computer can be completely compromised and remote-controlled by an adversary. liz: let's not just gloss over the fact that you mentioned microsoft office being vulnerable to this along i understand from your report which is very thick and very thorough, adobe reader. who among us in the professional world have not used one or the other or both here? what does this mean? we don't have to get rid of it, do we. >> no. it is common. routinely patch and every couple months is vulnerabilities come out. one thing you can do keep software up-to-date and be vigilant what e-mails come in rand what they click on. ask a question, why is this sent to me? does it look legitimate?
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should i click on it. adam: here at fork we have firewalls. isn't that enough to protect us? because they also have antivirus software on computers. >> what we find out today's day and age. antivirus is not enough. it uses outdated signature technology. seeing companies really development of new next generation technologies to deal with adversary activity as opposed to just malware. it is about who is behind the malware. looking at tradecraft and identify the bad things they're requiring to do to your computer. >> george, is it china again? >> it is china again. the reason why we put this report out was specifically because when you looked at the department of justice indictment, of the fab five as i call them, china categorically denied that they were hacking and stealing trade secrets. at crowd check we've been tracking this group since 2012. they have been around since 2007. we see first-hand when we respond to incidents in largest companies in the globe the damage that these groups are causing. and we have so much evidence
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that we wanted to put this intelligence out into a report. it has been available to our customers. we wanted to put it out for the public to read. liz: we already put this up. i would love to put up the graphic again of some of the very suspicious emails that may come your way. for example there was one about a yoga studio out of france. so when people clicked on it, automatically, what happened? >> well, again, there are so many emails that look legitimate. it could be anything from a, you know, ups email that says you have a package. it could be a menu being mailed to you. if you click on something that looks suspicious, even though it may look legitimate. you have high probability of being infected. the adversary is so good blending in and understanding how you operate and what gets you excited. if you're into golf and see a golf email and may click on it. you might just get infected. adam: george, i want to clarify. just to open the email or do you have to click on a link within the email to bring the infection? >> great question.
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in some cases simply opening email. in other cases either clicking the link or clicking file attachment. it is really dependent on the vulnerability they may exploit. liz: let me go back to what you said earlier, ask yourself before you click on something, why is this being sent to me? if they're targeting what would get us all thrilled and excited because it happens to be smart enough to go for, boy, i don't know how they know what we like but they can somehow figure it out? are there telltale signs. i often look for misspellings but i have to get into the email before i see misspellings. >> you do. bad guys gotten better over last couple years. they figured out how to use spell check. one of the things you could do, fairly hard to exploit a mobile device, something like apple iphone. if you're not quite sure, much better to open on mobile device today than on. pc. a lot of these attacks are designed to compromise a pc. not to say you won't have a problem in the future on the mobile device, it will be much harder to compromise that mobile
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device. liz: crowd strike is the company and this is the report. it is amazing stuff and once again, reminds everybody, beware of anything that looks suspicious. george, good work. thank you so much. >> thank you. liz: george kurtz, crowd strike cofunder around ceo and president. looking for an alternative investment? how about getting a cut of the royalties actually generated by your favorite singer or band? up next we talk to the man behind royalty exchange. the marketplace for music royalties. adam: health care is one of the best performing sectors this year. are there still values in this hot sector? jim rogers says there is only one way to find out. >> you should watch fox business news. adam: we've got three names that still have healthy valuations next. liz: but you have to watch us. ♪ we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon
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adam: we've been reporting for weeks about the upcoming alibaba ipo, and charlie gasparino got some exclusive information on that offering. alibaba is eyeing early august to price its ipo to. sources say, however, the company is cognizant of bank vacations, so may delay until september. the offering is expected to raise about $20 billion. liz: you've got to watch charlie gasparino if you want to be ahead of the news. from three doors down to justin
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timberlake, how would you like to get a cut of the royalties generated by your favorite songs and favorite artists? that's the exact idea behind royalty exchanges. this is a market place for sellers to auction off music royalties to investors. this company has seen revenue double every single month this year. not every year, every single month this year. and it isn't showing any signs of slowing down. joining us now to get more on the royalty exchange is the founder and ceo, sean peace. we saw this and said get him on. this is fascinating. so if i'm understanding this correctly, i can pick my favorite band that i think will do well and bid on the royalties of future songs? >> well, you can. of course, the songwriter, producer, artist has to be willing to sell it first. but if they're willing to sell it and they put it on our web site, then you're exactly correct. you can actually bid to own a percentage of that royalty. liz: let's talk about in the past what has sold, who you've
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gotten rights to and what they went for. >> yeah, sure. so we've sold anywhere songs from t.i. to travis tritt to all kinds of different genres of songs. so it's not locked into, you know, pop or rap or country. it's all types. and we've had them sell anywhere from $20,000 all the way up to production music that sold for over $250,000. liz: and then what happens? every time it's played or it becomes super popular, if i'm the one who bid and won on it, i get money back automatically? >> that's correct. so those royalties actually last for as long as the copyright or when we securitize it, it lasts for at least 35 years. you'll continue to make money every time it's played or it's bought at itunes or streamed. depends on what you buy, but in essence, yes. liz: okay. so would be, you know, hitmakers
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are the ones who really need to be looking at this. you think you've heard that sound. let's talk about how it works. you've got single unit auctions, multiunit auctions. talk about the difference between that. >> sure. so we have a price range of single unit auction which just means one seller, one buyer, usually under 1100,000. it makes sense just to do it from one buyer to one seller. but we've just securitized the platform, and our launch auction is the three doors down auction where that starts at around $240,000. and there we figured it would be best to split those up into smaller royalty units so that an investor who's looking to put some money in alternative investment, they don't have to have all of their risk in just one large catalog. they can come in and buy at, say, a $5,000 increment so they can spread their investment dollars over multiple assets. liz: and it looks like the min hum that people can invest is about $5,400 per share, correct? >> that's exactly right.
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and you do have to be on the securitized side and ask accredited -- liz: okay. let's explain that. to be a securitized and accredited investor, you have to provide all kinds of information, correct? like what? >> well, so you have to prove that you have a certain either income level or net worth. and what happens is we are taking an advantage of the new laws via the jobs act which allows you to do public offerings. so that means they don't have to be private, we can advertise it to the public. and there we have to rely on verification for accredited investors. so they actually have to verify once we close that they are an accredited investor. liz: because i have a 12-year-old and a 10-year-old, i know who zendaya is. she is one talented kid. what are you offering when it comes to her royalties? >> so interestingly enough, this would be one of the auctions on a current song. we usually don't have current songs at auction. and it was one of the
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songwriters who wanted to go ahead and cash out early. so there we had very limited financial data, so we actually had to pull what other songs that are that high on the chart or similar had made in the past, and we were actually able to sell that for over $50,000. liz: whoa. sean, we love this idea. it's a great alternative investment if people want to add a little music and risk to their perhaps potential rewards with. sean peace, we appreciate you coming on. the company is called royalty exchange. good luck. so much forking is me. liz: -- for having me. liz: adam. adam: betting on baby boomers, the rising number of retirees creating new opportunities for investors, but where should you put your money? would you buy meat from the back of a truck? we'll tell you how you can cut your grilling costs this summer. tastes like chicken. and billionaire investor wilbur ross is exiting one of his most high profile investments.
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international investors who bought into the bank in 2011 when the share price stood around ten measly cents. he's what's calling -- called a vulture investor. he's getting out. why? is we contacted wilbur ross. we got in touch with him. this is what he told fox business. quote: it was strictly a portfolio decision. it is not at all a negative commentary on the bank or on ireland. to the contrary, i have great confidence in the management of the bank and in the irish economy. so where might mr. ross put his money to work next? here's what he told us back in april. listen. >> particularly looking at southern europe finally, as you know from prior shows, we've been looking at it for quite a while. we think maybe now's finally the time to do something. particularly in a place like greece. liz: that's wilbur ross, one of the smartest billionaire investors around. well, that's how he became a billionaire, he's that smart. adam: the health care sector has been outperforming the s&p 500
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so far this year as well as last year. year to date s&p 500 health care index up almost 8% versus a little over 5% for the s&p 500. liz: is the value, is the sector overvalued, or is there a rot more room to run? -- lot more room to run? joining us now, joe hider. let's first explain what you do, because you're looking at names here, and you've hanged to pick out what you feel are four particular names. before we get to them, what is your strategy when you are finding these names? >> well, when we're looking for health care stocks in our portfolio, we're basically looking for stocks with relatively low debt and high dividend yield which all four of those stocks which you have offer investors and an opportunity to participate broadly in the health care sector. so we think it's a relatively safe play within this sector. adam: so, joe, let's talk about
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some of the stocks you like. and, you know, i as well as liz are alumni of cleveland, so let's say you've just gotten your corned beef, you top it off with a pirogi and a doughnut from jillly's, which company's cholesterol drug should we be buying? [laughter] who do you like? >> based on what you just asked me, i'd be going to to truck store for some pep -- drugstore for some pepto-bismol. but the stocks we like are johnson & johnson, for example, bristol high yers, eli lilly. we think those companies, as i mentioned earlier, offer very attractive dividend yields in the 3% range which certainly is strong -- adam: pretty healthy. >> some very good upside. liz: both of these names are fascinating, and there are some dividends at play here. i'm wondering how much you think about dividends. >> well, we do think about dividends. we think about capital appreciation, but while our investors are holding these
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stocks, they're enjoying yields that are very attractive cared to treasuries as an example or certainly much higher than certificates of deposit. adam: merck has been on a buying binge, but then you've got johnson & johnson which you pointed out might be undervalued or underappreciated by investors right now. >> yes. if you look at the pe on j&j, for example, it's below the s&p 500, and we believe it offers tremendous upside potential as an investment. and offering that attractive yield that we spoke of earlier. liz: well, and then the deal-making atmosphere, we just showed a graphic of all of the, what looks to be almost a ruin goldberg -- rube goldberg type of map. do you expect more consolidation in the industry? >> we do. you know, the bigger companies have record amounts of cash which is not unique to this sector, but they can borrow money very inexpensively, and they're looking to buy, to keep
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their i'mline full and expand -- pipeline full and expand within the marketplace. so we don't think the merger and acquisition -- liz: okay. and the names, the names that you believe in here. >> as possible acquisition candidates? stryker is one which is a medical device company, and the other one is allergen which is a pharmaceutical company, drug development company. liz: oh, yes, we know all about them. it is so lovely to have them, joe. thank you so much for good ideas. adam: and if you get a chance, some corned beef would be greatly appreciated. liz: go cleveland. >> i will. go, indians. liz: go tribe. and take the browns with you. no, i'm kidding. we both live there, so it's okay that we -- we both worked at wews. adam: yeah, news channel 5. liz: great to see you. meat prices are expected to
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continue rising this year. would you consider buying your meat from the back of a truck? yes, it's refrigerated, but you can do it and cut down on costs. one company is doing just that, and fox business has found be it. it already has 325,000 companies. we're going the tell you how you can find it and save money. adam: and what do automakers and tomatoes have in common? ask ford and heinz. we have details about a potential auto industry breakthrough when we go off the desk. ♪ ♪ [ female announcer ] this allergy season,
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adam: all right, here's a question for you: would you buy meat from the back of a truck? with meat prices soaring, washington state-based zacon foods is offering much cheaper meat prices than those you find at the superintendent. liz: our own robert gray has the story from los angeles. robert? >> reporter: hi, liz, that's right. you basically already do buy your meat and poultry from the back of a truck, it stops off at the grocery store or the butcher shop, but this company started back, basically, hatched out of the recession. two brothers sitting around both on food stamps at the time, by the way, hard times scraping by.
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decided, you know what? let's sell meat out of the back of a truck. one of them understood how it worked and said we can cut out the middleman, we can make a profit and still save customers a lot of money. they made $40,000 in the first month, exceeded their can'tations, so they decided we're going to go online. they didn't even have a web site at that point. we're going to get a little bit of private ec wety money, and we're going to go out and literally hit the pavement. they went to bloggers across the country, a pram called chicken across america. -- a program called chicken across america. sent them free product, then folks reviewed it, they started setting up dropoffs in those cities. you go online, you sign up to buy it. they're not actually selling it out of the back of the truck, an important distinction for the health d. out there. -- department out there. they go to churches. churches don't charge them, they donate food to the churches who host them and perhaps some goodwill from the congregation
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as well. we were at a location just outside of l.a. today, and we had several dozen customers come through. it was a refrigerated truck. the folks came through, they had all the information down on their tablets, and by the way, let's take a look at some of those prices. 30-50% discounts compared to what you're paying at the local whole foods, even more here in the l.a. area, and you can see the prices in what they're saving. folks come through, pick it up, take it home, and they have a refund and recall policy. i'm sure you're thinking about that as well. and here's the deal. if there's a recall, mike conrad, the ceo, says he thinks they're the safest food company in the world because they are tracking every box of chicken and beef, so they know where they bought it, usually on a big farm in georgia. it's all down electronically online. it's all done online. last thing, he says they don't want to store your information because of the breaches at folks like target, so you have to do
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it each time individually, but a few extra minutes saves you a few bucks. liz: listen, that's disruptive business. i like that. adam: cut out the -- liz: adam -- that's two people i've called adam. robert, it's great to see you out there on the west coast. adam: take care, robert. >> reporter: all right, guys. liz: ford is teaming up with a world famous ketchup company. what is that? we're going to tell you all about it when we take you off the desk. adam: the new york knicks inked a multiyear, multimillion dollar deal on a coach with no prior experience. we've got some details about that for you next.
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predicting the future is a pretty difficu thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. 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.
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announce a $25 million five-year contract of beginning next season with fischer who has spent the last 18 years of various team will work with phil jackson who is currently the president of the next. >> also tomatoes could move to the vehicle as ford looks were more sustainable way to build cars their partner into research to made no fiber as an alternative components ed henry ford did this with 60 bomb -- with soybeans and researchers are currently testing the materials although foretold -- ford already has a simple options including the steve coleman seat cushions and canadians would say tomatoes >> which position would you invest in if you could invest in your favorite? >> toby mac.
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>> if i could have invested in the sister songwriter we would all be a very rich man today. >> landmark pay for play case? but the plaintiffs named in the case? bin and we will be joined by the plaintiff with the top analyst for fox sports for basketball and football in college sports. >> we have the latest on the gm recall scandal and what the cbo says that means it will be more recalls and possibly more deaths reported. trouble in the housing market that may not go away for degeneration. we will tell you what that is about how that affes
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