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tv   After the Bell  FOX Business  December 8, 2014 4:00pm-5:01pm EST

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chunk out of the dow today. [closing bell ringing] >> big loser. sales lagged. david: had it not been for mcdonald's, the dow would have 24 more points than it does now. that would have dropped the downward movement to less than triple digits. it is clear we'll end up with triple digits no matter how it settles. actually the dow was not the biggest loser of the day. the s&p was down 3/4 of a percent. nasdaq was down even more. small and mid-sized caps represented by the russell 2000 really taking it on the chin. 1.25% loss. not a good day to start the week. we have all bases covered. as liz mentioned there were significant winners today as well as losers. we've got it all covered. "after the bell" starts right now. liz: so on this monday, just a few weeks before christmas, let's get into the action. we have centerstate bank's joe
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keating. joe will give you a best way to of all things, energy sector right now. dls capital's david steinberg to tell investors where the hot opportunities will be in 2015. and dan stesich at the cme. dan, energy, weak economic data out of japan or china. what do you think it really was? when you stood in the pits and started to see the drop 1:00 p.m. eastern, what were your thoughts. >> it was none of those. here is what i think happened. market looks for excuse to pull back at levels we have had. so they pulled back 1%. global growth fears are nothing new. they have been going on for almost a year and our economy grows despite it. as far as energy, they're worried about that, demand is down. demand isn't down that much. it is down a little bit. the fact supply is up. in any basic economic course tells you, when you have a supply shift, prices go down. that is what is happening there. i'm not worried about the move down.
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look for opportunity to buy something that may have gotten hit harder than 1% market saw. david: joe, i would have pushed back a little bit on what dan said. i think numbers out of china particular, they pulled way back on their imports. that hurts our companies who are trying to import into the chinese market. of course there were more concerns about europe. however, there are questions whether now is the time to get into energy. exactly when you can get some real bargains. of course there is the danger you're catching a falling knife, right? >> that's right, david. you know, there are two parts to the energy complex. one if you go into companies that are, whose earnings are driven by the price of oil. and if you go into those companies today, if you have a two to-three-year time horizon you will probably do okay. if we invest in the pipeline companies, the pipeline companies carry crude or refined product across the united states irrespective of price of oil is
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$40 a barrel or $150 a barrel. we've been given a gift of drop in oil prices because the pipeline complex is down 14, 15% from the high over the summer. they put it under the christmas tree for us to go in to start buying these companies. liz: there is opportunity on days like this, is there not? david steinberg, were you or anybody on your time buying? >> number i've been watching this oil situation since the summer and i had over the years. real big exposure to energy. i think it is supply side issue as well. and you probably have producers also hedging simultaneously. because you've got the, protect the revenue lines. and then they will cut back on expenses which will really hurt. liz: david, i guess my question, people love to hear from people like you what you do on a day like this? where you start to see every single s&p energy company falling, you start to see some pretty significant lows here. would you be purchase any at this level? or is there more downside to
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come? >> whether there is more downside, put it this way, we're closer to the bottom than we were four weeks ago. >> okay. >> i would looking at service companies. i would look at some of the integrateds. i would be gradually scaling into them. they have taken a massive hit. they have big assets in the ground. oil is big self-correcting commodity and it usually corrects pretty quickly. i look at oil service companies whether rig or ensco or diamond offshore. start leaning into and take a look at big producers like british petroleum as an example which just raised its dividend or exxons, what have you. as a starting point. you watch for stabilization in the price of oil. then you go from there and move down the feeding chain i think to the smaller, mid-sized companies. david: good suggestions. stan, are you buying today on the dip? if so where? >> you know, that is the one thing you have to look for opportunities in these, i'm going to find stocks, like apple
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got knocked down a couple percent. apple is still a pretty good quality company. you try to find something like that. i did look real hard because i'm comfortable going into the end of the year right now. there are opportunities on days like this. you have to search for them. it is still pretty hard. stocks are valued quite well. >> i want to get to joe, because, you said there are ways to play it right now. we need specifics. our viewers are saying give us the names. get to your picks at moment. why you feel these are names to go into at this moment? >> sure, liz. the pipeline companies, basically economics of the pipeline companies is not a function of the price of oil as i mentioned earlier. so really good companies. one is enbridge energy partners which operates the longest petroleum pipeline in north america. the distribution yield is little north of five 1/2%. you look for this company to increase its distribution about 15% over the coming years, next couple years. targa resources. distribution yield of 6%.
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expected increase in distribution of 30% over next couple years. energy transfer parters with distribution yield above 6%. looking to grow distribution about 30% over next couple years. three really solid players in the midstream space whose economics are not a function of the price of oil. david: boy you look at that. 6% down. if you're interested in these companies, now is definitely the time to buy. dade, i got to ask about a correction. it seems like europe and asia is moving in that direction. won't that eventually come home? i mean certainly we do export a lot of products to china and to europe. they are buying less than they used to. >> that is absolutely correct. china is probably at or nearly the largest economy in the world or approaching that. europe is 1/3 in aggregate let's say. we're strong here but we can not carry the world for indefinite period of time. i think problem with looking at equity valuations they're
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probably full to a maybe a little bit high. but probably not a little bit of a buffer if you have currency problem in jop pan or europe. central banks controlling a lot of activity and in a lost direction and investors are putting money. something goes wrong or off track here you could be subject to a pretty good correction, there is no question about it. this is not a time of the year where you normally get one like that. usually pretty good sailing into the end of the year into the first month. but nothing is off the table if you have an accident somewhere. david: we have a statue here, rockefeller center. it is of atlas with the world on his back. i always think of the nights. we're close to that position where we're literally holding a sinking world on our back. let's hope the knees don't buckle. good to see you guys. liz: nice to see you, david and dan we'll see you and joe keating thank you very much. david: a supersized menu not translating to supersize sales at mcdonalds. the cop's global sales fell
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2.2%. u.s. sales saw the biggest monthly decline in more than 14 years. liz: with u.s., with us, with us now, senior analyst at "morningstar." hey, to see what happened with mcdonald's, rj, i mean this is the worst in two years. and i don't know how that company can fight what appears to be a developing trend, when my 13-year-old comes in and says i'm not doing that anymore, i'm not eating mcdonald's. parents don't want them drinking coca-cola or diet coke, it seems there is a real shift. can mcdonald's battle that? >> yeah, i think you're absolutely right. the big thing or key takeaway coming out of mcdonald's results numbers came in at a time when we're seeing positive results for a lot of restaurant chains and a lot of its quick service restaurant piers. we're seeing a structural change towards quick service restaurants. it will not be overnight change for mcdonald's.
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things they're doing, choose your taste, allowing customers to come in to customize a hamburger or chicken sandwich is a nice start. it will take time to change consumer perceptions about the brand. with this name it, can be fixed and will take a lot of time and change in consumers perception. david: investors love mcdonald's a long time. certainly has the brand a lot of people looking for. it has what, 3.7% dividend it gives out. investors love. that i'm wondering if they are resting on their laurels enough and haven't taken november action before now? >> i think is exactly right. you have a natural floor because of dividend yield. i think shares are fairly valued at this point. we have $95 fair value estimate on the name. the company has been caught a little flat-footed and restaurant place space is quickly evolving. consumers nowadays have short attention pan what is on menu.
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mcdonald's could count like clock work or menu innovation people flock to. we haven't seen that last couple years. throw upon that marketing missteps and getting too far away from the dollar menu. it turned people off the brand and led them to a lot of competitors. liz: competitors is a good discussion to have. fast casual burger competition has heated up in a big way. we had burgerfy here for example. there are all kinds of burger chains. "huffington post" that five casual burger chains that could take over the world, when there are three let alone five mcmack's has to worry. what is number one thing management has to do? >> they have to drive a since of excitement back along its customers. this choose your taste is a good first step. publicizing something like that, publicizing a big bet like that could be enough to drive people back in the store out of sheer curiosity. the key is execution.
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that is a big endeavor. people come in to have customized burger at relatively fast-paced and can't execute on it you will turn people off again. the key thing is menu excitement and doing something you haven't seen before in mcdonald's. maybe simple menu items on mcdonald's product in the past. i think that will be enough to draw excitement. that is first step. second step getting smart about marketing. then beyond that, acquisition to drive new blood, new concept ideas into the system. david: good to see you, rj, thank you very much. >> thank you. >> we would love to hear from you about this first of all do you own mcdonald's stock, don't you? if you do and don't, do you eat at mcdonald's or one of its competitors? when was the last time you were at a mcdonald's? now that there is burgerfy, shake shack, smash burgers, mommy, they're all out there. david: i go for mcmc's every now and then. send us an email or message,
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fbnatb. they are set to release detailing torture tacticking used by considerate of ia post 9/11. will it spark backlash against allies? liz: he quickly predicted the he would rally 10 to 12% this year. right now we're in the smack sweet in the middle spot, 11%. what does he see now for 2015? jeff saut from raymond james joins us with his stock predictions and stock plays for next year. david: i love jeff. will falling oil prices spur new bets on global economic growth, or, are they harbinger of a worldwide recession? watch out for puddles next time it rains. the epa gets this, literally wants to start regulating puddles. i kid you not. that and a lot more with our panel straight ahead. ♪
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liz: how's this for anticipating what the market will do? at start of 2014 raymond james chief investment strategist, jeff saut, he is on the show all the time, predicted we would see the s&p rise between 10 and 12%. you know where this is going. he was so right. so far this year the s&p has risen about 11.5%. so we said let's bring back jeff and find out what he anticipates for 2015. hi, jeff, great job on 2014. >> thank you very much. liz: how did you extrapolate 12 months ago what the s&p would do? >> even with the tapering announcement it was clear the fed's balance sheet would be up 10 or or more% and earnings would be 10 or 12%. so 10 to 12% was the call. i'm sticking with that call for 2015. liz: exactly the same? >> yep. liz: interesting. so you are actually basing it on
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not all the dramatic headlines throughout the summer, whether ukraine or what was going on with isis, not to mention israeli-gaza conflict and simply stock with how earnings would come in quarter after quarter? >> the equity markets. i said on the show number of times, they don't care about the absolutes of good or bad, liz. all they think about are things getting better or things getting worse? things are bet getting better. we're in secular bull market with eight to 10 years left in it. liz: are you looking at potential headwinds, and what are they? >> could see a policy mistake out the d.c. beltway. if our president gets more intransigent. barring a black swan, god forbid, another 9/11, i have a difficult time seeing what will stop the forces forward i think are very positive what is going
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on inside of the country. liz: viewers want to know consider yourself flagged. the very same guy that got it right last year, will see 10 to 12% for s&p 500 barring extraneous situations. where are you putting your money? do you have specific picks or too early to push forward on 2015 at that level? >> no. i think you get a chance to buy the upstream master limited partnerships but the midstream master limited partnerships. liz: what is the difference? what is the difference? >> they don't have the price sensitivity to energy that the upstreams tend to have. and, the people, i think are going to sell them for tax reasons. they do a lot of things this time of year for tax reasons without a lot of consideration to the fundamentals. so there is a couple of exchange traded fund that play to that. we like the idea of investing in companies that benefit from lower energy prices. that would be airlines. that would be railroads. casual dining space, et cetera.
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ksu would be a rail name and genesee in wyoming. both of those have favorable ratings from my fundamental analysts. >> i think it is interesting. you work closely with your teams. i know that from having been there and watching you guys and how you work at raymond james. it's a formula that appears to be working. jeff, finish this sentence. all i really want for christmas? >> is a bottom in the energy complex which our energy team which i think is one of the best in the business came out two weeks ago and said we think in the next few weeks you will get a bottom in crude oil prices. think they're right. liz: we'll sofer correct. great to see you, jeff. thank you so much for joining us. >> merry christmas. liz: and to you too. thank you so much, jeff sought. david: good guy. he was mentioning a black swan events. this may lead to one. u.s. embassies around the world facing potential backlash from a top secret report to be released. what cia apparently did to
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terror suspects in days after september 11th attacks. liz: rich edson live from the white house with more on the story. >> the senate intelligence committee will release details or summary of this report at 11:00 tomorrow morning. its chair, senator dianne feinstein has been months making going into which details it would exactly release to not endanger those abroad. reportedly criticizes cia under the bush administration for enhanced interrogation tactics, torture and reportedly misleading the bush administration, this is are all claims former bush official, and former cia officials have been pushing back on. whether or not this endangers americans abroad the white house addressed that earlier today. take a listen. >> the administration has been for months preparing for the release of this report. there is, there are some indications that this, that the release of the report could lead to greater posed to u.s.
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facilities and facilities all around the world. u.s. is take making sure that proper precautions are in place across u.s. facilities around the globe. >> there are questions that perhaps the report would delay further. however there is political calendar here. the democrats control senate intelligence committee and as they do all the committees on the senate side. that changes with new year and new congress as republicans take over in january. back to you. david: will be dicey. rich edson, appreciate it. thank you from the white house. liz: apple releasing best of 2014 list of songs, albums, movies and apps of what were the best? who took the crown home? taylor swift? was it pharell, frozen or "guardians of the galaxy"? we have the list next. david: did you see oil prices? they hid a new five-year low. it may be helping to lower gas
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prices could this be cause of concern about the global economic problem? could it even mean a recession globally. we'll talk about that coming up next. ♪ you owned your car for four years. you named it brad. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends. three jobs. you're like "nothing can replace brad!" then liberty mutual calls. and you break into your happy dance. if you sign up for better car replacement, we'll pay for a car that's a model year newer with 15,000 fewer miles than your old one. see car insurance in a whole new light. liberty mutual insurance.
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david: we asked you if you eat at mcdonald's or switched to its competitors? vince said my family and i take healthy route. being more health-conscious is the new trend. joining the conversation. do you eat mcdonald's or not. send us a message on facebook or tweet us at nbnatb. liz: apple releasing most popular content of 2014. which movies or songs or apps made the cut? number one most downloaded song this year was "happy" pharell. it was good first 38 times. david: i like it 39 times. liz: the top selling album of the year was soundtrack for disney's "frozen." coincidentally this was this year's most downloaded movie.
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most downloaded tv show was "game of thrones" and facebook messenger received most downloads of any other free app on the iphone. david: talk about another free fall in oil prices just as data showing a big slow down in asia and europe. are tumbling prices indication of a worldwide recession or economic boon that could prevent worsening economic times? let's bring in the panel. curt cam beer. kerry sheffield, competitive enterprise institute and our own fox business's adam shapiro. good to see you all. adam, first to you, should we be encouraging that oil prices are going down? that will mean economic progress or should we be depressed or we're heading into recession? >> short term we should be encouraged because middle class americans need a break. haven't had real wage increases until most recently. long term, i'm the dooming one with the rain cloud over my head all the time. i'm concerned china is slowing
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down. europe is on virg of deflation. japan has been stagnant 20 years. it is not good. david: curt, china is buying a lot less. that is the interesting stat that stood out for me. their imports are way down. they are buying less of stuff we produce. >> very true but i think it's a temporary situation. am like your previous guests you had on from raymond james i think we're in a long-term secular bill market. i think china and everybody else, this will help in the long term the lower energy prices. i don't think they will last that long. i think they move back to $75, $80 a barrel. at that price everybody can make money. somebody will get hurt, russia, venezuela, iran, places like that will suffer but the united states overall is becoming energy independent. that keeps billions and billions of dollars in our country hiring american people. i think we'll have just a tremendous opportunity to go forward. david: on the other hand, kerry, we are not an island.
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what happens abroad does affect us. >> right. david: can we survive an entire global recession which at least in terms of japan, significant countries in europe and possibly even china slowing into negative territory? >> i was just in japan earlier this year. japan could benefit from this they are an island country. they have imports of oil. they decimated nuclear industry because of fukushima. this could be a huge boon. david: this could turn japan around? >> yes. this drop in oil prices is different from previous ones because more supply versus less demand. i'm a little bit more bullish about the drop. david: tomorrow you should all know that obamacare architect jonathan gruber is going to testify before congress with the health care law still mired in a lot of controversy how are businesses planning for their employees health care? curt, what do you think about this? very tough to plan with all the craziness over this health care law. >> it's a tough situation i can tell you. 85% of the wealth in america is
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in mid and small sized companies. my fear ultimately, when we get the true cost, the true premium increases next several years of what the obamacare actually look likes, it could cause a fairly significant market pullback. i don't think it will be long-term but it will be very impossibleful. i have -- impactful. i had seen it in my own. $36,000 of out-of-pocket health care insurance which was canceled which would have been 15,000 previously. it can impact someone's financial bottom line. there is a lot of rewriting that needs to be done. even those supporting it are pulling back, wait a minute, maybe we were wrong. david: carrie, i know jonathan gruber outside of fox news and other places didn't get much attention when we found videos. to remind viewers maybe missed it what the guy said. this is one of the architects said. here is montage what he was telling news lack of transparency is a huge political
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advantage and basically calls the stupid of the american voter or whatever, but basically that was really, really critical to get this thing to pass. >> clever basic exploitation of the lack of economic understanding of the american voter. david: lack of economic understanding. we know perfectly well it wouldn't work out. what happens now? >> i have to be honest. this is dog-and-pony show. i used to cover capital hill. these are -- infrastructure of what he did insulting people. so much uncertainty. mid-sized businesses don't know if they have the mandate. large size businesses don't know if they have a mandate. it is up in the air. people don't know what to do with these decisions. david: adam, we're just getting back on our feet economically here in the united states. is this still overhang in terms of business's budgets? >> there will be argument from those who support the affordable care act, obamacare that it will actually save people money but
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what mr. gruber is alluding to why they were so opaque about this, it was never about saving money, that is what they said. it was about insuring the uninsured. a country where 85% of the country had health insurance. it wasn't great but a lot of people liked what they had. selling them the notion you have to spend more that you can insure everyone else was not going to pass. david: they tried to make it seem there wouldn't be a tax on people when in fact there was. coming up, sounds like a joke. this is true. the epa is trying to get jurisdiction to regulate puddles. puddles. has the government gone too far? and as uber faces new bans is it really worth $41 billion? liz? liz: what if you could buy your holiday gift but donate to charity all in one fell swoop? coming up we're talking to the company that donates 50% of the profits from each purchase. you can really play into the holiday theme here. wait, you can't miss it. got to see this.
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david: for those who think government regulations got too far, we found the ultimate poster boy. the epa wants jurisdiction to regulate virtually any wet spot in america, i'm quoting, ditches, drains and puddle-like depressions. have the feds gone too far? let's bring back curt, carrie, and adam. what do you think? >> we can't even fill potholes with in this country with city government do we think the feds will handle this? jokes aside this poses serious constitutional questions that can amount to eminent domain and property rights users. david: curt, there are a lot of businesses if they can regulating potholes and water spots in the street, they can get into your business and start regulating that business even more than before. >> it is government gone wild is what it is. it is the problem when you allow
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government to get too big. we need to have a moment in this country where the private sector takes back the public sector because it has gone too far. i have, in colorado we have water problems. this affects our ranchers and our farmers. one of my business partners ownses thousands of acres of western nebraska, they're already trying to build a bridge across a small creek, the regulation you have to go to, you would think they put in a city street. it is ridiculous. david: adam, what do you think? >> i'm not sure i want private sector regulating water usage but -- david: puddles? puddles? >> i didn't say i want the epa what is traditionally a state's right venture. most immediate wrap impact is on farmers. we have a system, this is going back to the beginning of the republic. state's rights and versus federal issues. right now we let each state do this. i would be more comfortable colorado dealing with its water
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issues than epa. i'm not sure i want the private sector regulating water. david: i don't want epa coming in to tell me to clean up a puddle in my backyard. this has gone too far. ride sharinging service uber may have a $41 billion valuation but it is facing bans in the netherlands and new delhi with fierce challenges from regulators worldwide. so is uber really worth $41 billion? adam, what do you think? >> yes it is worth $41 billion because people will buy the stock and drive it up. eventually it won't be and come back to realistic evaluation. uber won't go everywhere and disrupt. speak to chris hughes at "new republic." uber isn't going anywhere and will be around a long time. david: i don't know, curt. i had my third bad experience with uber. i waited 45 minutes. car never came. we let taxis go by. they have problems in new delhi. $41 billion, that is the larger than the market cap of
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halliburton, halliburton which is worth $38 billion. i think this is way overvalued, don't you? >> oh, man, it is a crazy world when you start to see these things. until uber fundamentally gets itself where it has the same type of regulations and background checks and hires as people provide the service and fundamentally clean up the stuff i wouldn't touch it. so it will come down a lot in value. it will be a very good service. it is relatively new. when you break new ground you do make mistakes, but eventually it has to come down-to-earth. i would stay away. david: carrie, i think of all the competition. doesn't sound like a difficult competition to to compete with. >> people have branding and they're very loyal to it. they will have to branch out. you have to see delivery services and logistics. it has to diversify doing more than ride sharing, has regulatory issues from
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republicans and democrats. as much as republicans like to say they're free market, in many cases they're trying to strangle uber. david: in fact they hired one of president obama's inner counselors in order to do more in terms of regulations they have to face as well. thank you very much, curt, carrie sheffield and adam shapiro. thank you, everybody. liz, over to you. liz: up next, another big pharmaceutical deal announced this morning. you could be listening to our own charles payne you would have been way ahead of the news of the he will join us with the very latest. and also with one new big pick straight ahead. plus, it is that time of year again. holiday shopping. how about giving back to charity, all while enjoying a bottle of wine? you have to hear about this company next. ♪ she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently.
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liz: we've been asking you on social media if you eat at mcdonald's, or have you switched to competitors? let's fast casual? dennis said i ate at mcdonald's today and i have for 50 years and still healthy at age 70. david: good for you. good for you. join the conversation. send us a message on facebook. tweet us @fbnatb. more of your answers coming up. >> he has to try shake shack.
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move over carlos slim, warren buffett has now become the world's second richest man dethroning the mexican billionaire. it is always a one, two, three case with the guys on your screen. "oracle of omaha" moved into second place after berkshire hathaway shares hit a record high on friday. buffett's fortune estimated to be $73.7 billion. david: so what if every time you bought a bottle of wine you were giving a little back? one hope wine does exactly that. it caught attention of major investors like virgin america with whom is recently partnered. liz: could this be the perfect holiday gift solution, two for one? joining us he is one hope cofounder and ceo. we saw this, get this guy here. it's a brilliant idea. we want to know the genesis how you came up with it? >> we came up with lot of people
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generating cause into their marketing but we wanted to generate all year-round in our business model. the ah-ha moment, a friend of mind got blood cancer around spurred me on. was lucky enough to get a lot of partners doing me. david: weren't you actually stocking shelves when you came up with the idea? >> i was stocking shelves. i saw other companies donating for temporary marketing campaign. i thought about how if you did this all year-round. david: how do you get idea from stocking shelves, that is brilliant idea, a lot of people do but how do you return on capital. >> you have to do as best companies do as is. really great product. really good packaging. good service and good teammates,ering like that. all the same good blocking and tackling it takes for a good business and that is the tie breaker. >> talk about how it works. people want to buy a bottle of wine or a case, they can go to your website and you have hooked certain kinds of wines whether
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pino noir to different charities? >> that's right. liz: how much goes to charities from the individual sale? >> we do half of our profits that we're committed to. so for instance, every case of that pino fund two pet adoptions with aspca or sparkling, funds 25 meals with world food programme. david: you hooked big businesses like virgin into the program. how did you do that? >> that's right. virgin is very aligned with us as far as what they're excited about. david: virgin atlantic, virgin america or what. >> virgin america. we're excited to announce that partnership. that will come out in q1 of next year. we'll be the on-board wine. david: how did you do that? how did you hook them? >> same way we met and hooked everybody else is that they looked at our product and they said, wow, this is equal or better than what we're buying for the same price and instead of spending a unabout of money on billboards an advertisements, you guys are making impact and
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good for all of us. they bought into it. the same reason why whole foods started carrying our wines nationally and other large retailers, restaurants and hotels. liz: possibilities are endless. you're expanding beyond wine. you're doing coffee and weddings, correct. >> we have gourmet coffee. we're proud of the that. we're doing major focus on weddings. we do at home events and a lot of corporate gifting and things like that. we have companies and brides and grooms and different people from all different areas and walks of life saying i want to integrate that into my special day and my business. it is really start to generate and crank. david: jake is the onehope cofounder and ceo. i have to try it. the proof is in the pudding. if we like it we won't have you back. if we don't probably last time. >> you guys will love it. it won over 100 medals. got 90 plus ratings.
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david: you're a good salesman. jake, best of luck to you. >> thanks. we appreciate it. liz: onehope is the company. our own charles payne recommended this name, cubist pharma, a month before today's massive deal with merck. what is his play now? charles joins us next. david: what is it up like 30% today? unbelievable. we bring back kurt cambyer. he will talk about the number one thing in the markets. liz: he is ready. >> hi, everyone, i'm gerri willis. coming up on my show at the top of the hour. right now is the best time to lower your tax bill next year. i will walk you through smart year-end tax moves. that is one of the big consumer stories coming up on "the willis report" in just a few minutes.
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david: probably saw this. a major pharma deal today as merck buys cubist pharmaceuticals for $8.4 billion. here is what merck's ceo told maria bartiromo earlier on this deal and why it made sense. >> it gives us a leadership position important area of marketplace where there are important economic trends. gerri: >> cubist shot up 35%. has you listened to our own charles payne weeks ago your portfolio would have big gains today. listen. >> i like the action on this
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chart. looks like the stock is building real nice base. it used to be resistance. now it is support. longer term i think it has potential $95. i wouldn't consider it a trading vehicle. longer term i do like it. david: with us the aforementioned charles payne. you saw this coming? >> yeah. i had a couple in this biotech space. it can be hit or miss but when you get biotechs end up with a billion dollar drug and end up with a nice juicy pipeline the dynamics business of change, these old school drug companies are using biotech as their farm team. give you an example, liz. in 2010 merck spent $11 billion on r&d. then it went to 8.5 billion. 8.2 billion. and thin last year it was 7.5 billion. the money they didn't spend on r&d they bought the company. we can dot r&d or let somebody
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else do it. liz: growth through acquisition, what are you picking now. >> yes. i got out of biogen a couple months ago. but that acts fantastic. isis pharmaceuticals looks really interesting. this stock went down a lot. people were associating it with the terrorist organization. ibb is a etf. it is already up huge. nevertheless there will be a few more of these deals done. if someone don't ever doesn't want to pick and choose that might be a way to go. david: some deals were arranged for tax reasons. they want to change the domicile because of terribly high corporate tax rate in america. does that play into any of the deals you think are worth making? >> no. i prefer deals based on business merit. again the idea you get a biotech that has a product and then they have a deep, deep pipeline, preferably at least two drugs in phase three, maybe two in phase two and couple in phase one and
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have multiple uses or potentially multiple uses. liz: charles, thank you very much. >> thank you, liz. liz: watch charles on "making money with charles payne" six p.m. eastern on fox business. david: we're blessed to have him here. have you eaten mcdonalds or switched to competitors? christian said i like the light meal because i know they deliver food fast at affordable prices. liz: ronald says if we're doing fast-food we go to subway. david: jamie says we haven't eaten there seven months. liz: spencer said i used to eat at mickey d's a lot. quality and service has declined. >> i still love their fried fish sandwich. let's bring curt cambier, centennial capital partners. what is the number one thing? >> i look for continually the opportunity to buy oil stocks in the downturn of the oil prices
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because long term these are big bargains. i think thaw nibble at them right now. you nibble at them a little bit. if you have got cash, hold the cash, buy some stock. think any january we're probably going to get a correction. if nothing else there will be profit taking in january past the tax season and it will be a situation where people will roll out of retail and move into energy and i think energy will move a lot. liz: curt, when you see the correction you anticipate would you sweep in and buy good names that are less expensive? >> absolutely. i would start off with the service providers like halliburton, weatherfords. i go to big companies like marathon oils. i buy whiting petroleum, eogs, american denominated shale rousing stocks if you will because i think the energy revolution is here. something called creative destruction. we're seeing that in the world. the united states created new opportunity in energy keeping
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billions of dollars in our own country and ultimately will destroy some of the other producers and dominance they have had on us. david: curt, thank you very much. halliburton down 50% from its high this year. maybe it is time. liz: great to have you all. "the willis report" is next. >> hello, everyone, i'm gerri willis. we begin tonight with new warnings of how airlines are looking to nickel and dime you even more. according to analysts, airlines are considering charging passengers more in fees during peak demand periods like the christmas holiday coming up. joining us with more on this seth kaplan, managing partner of airline weekly. welcome to the show. seth, great to have you here. we're already hearing spirit airlines is raising bag fees between september 18th and january 5th. will we see a whole lot more of this from other airlines as well? >> well, spirit tends to be more aggressive than most. the other airlines watch

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