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tv   After the Bell  FOX Business  May 4, 2015 4:00pm-5:01pm EDT

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we'll see if this works out. adam: nicole, officer gauge following to lowest level of the year. [closing bell ringing] >> we'll see if this is new highs or possible sellers. cheryl: bells ringing on monday. we're well into the second quarter. the nasdaq and new york stock exchange both closing higher. look how stocks are finishing up. the dow up 46 points. we backed off. we had nicer trading session. adam: volume was light. charlie brady, our numbers cruncher said volume was light so take it a grain of salt. cheryl: nice gain for nasdaq, s&p, russell 2000. "after the bell" starts right now. adam: we want to break down today's action and we've got lee munson from portfolio wealth advisors. he will tell us why he thinks investors should brace possible correction. matt jenn said investors should
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not sell in may and go away this year. joe quinn in the pitts of cme. joe, you agree, don't walk away right now. why not? >> basically if you look historically, over the last 15 years, nine out of 15 years it has been positive from the may to july. i want to put a little wrinkle, may to july. you have seen positive returns, about 1.3%. i don't think anybody should look to sell until you get into the middle of the summer. cheryl: matt, we were having a discussion last hour, matt, you're saying there is no growth in this country. gdp numbers coming out, earnings are dismal. market is up. we're up today. it is easy money. at what point does reality of the economy hit with what some say is not reality on wall street? >> well, i'm not sure that is going to happen. we are starting to grow. we had a slow first quarter with the weather but once we get that
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behind us because we're trying to grow, once things get some traction we'll do well. so we are market positive. sell in may, go away, you better be ready to come back in july like your other guest said. we think that is when some of the tripwires are hit but right now we're positive on the market. when you look at variables, broad and here pressure on market we stay true to the 18,000 mark, that tells me we're getting ready to jump a little further. adam: lee, you would say, i don't want want to say embrace corrections but pullbacks. you guys did that but you're not putting all your powder here in the united states. >> no, not at all. last thursday was great example of how resilient how the market is. it tried to sell off, tried to sell off but bulls one. you need 30% of your allocation outside the united states. number one, half of equities are
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outside united states and you get great valuations and dividends but when you see europe left for dead that is the time to buy. cheryl: matt, let me pick up on that, what we haven't seen last couple years, easy money, now that is the europe story. what is to say a lot of these american investors will wake up tomorrow, you know what? europe gets better. i will go where the easy money is. forget the u.s. i will pull back on my u.s. holdings. what about that scenario. >> i think that is scenario we're already seeing since beginning of the year. i remember beginning of january, george soros was going to overweight international. the crowd went wild. you will see the gradual movement. remember why u.s. investors go over there. they go over there to rich dividends in multinationals in europe which are dirt cheap. if you stay in the u.s., go for smaller companies, that have been overlooked. true small cap value. you get dividends. that is not where the average
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investor flips out to go back to europe. adam: matt, you like growth sectors are health care and technology. you like two chip-makers. as we should be afraid of chip-makers as the world goes mobile? >> absolutely not. we're seeing growth in handheld devices and we'll continue to develop this market. samsung and apple being the leader. we have been market positive on health care early on. we still are. now we have found in the technology sector if you look at micron technology, they have a peg ratio of .6, a p-e ratio forward of below nine. so they're way undervalued. and they have a beta of 1.7. once they take off they perhaps will outperform the market as a whole. if you look at skyworks technologies, they're more fairly valued with a peg ratio of .93, .94 and a beta of .5. they're less risky of market as a whole. the two of these compliment each
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other nicely. >> the technicals are fine to discuss. we should be clear what these guys do. both companies are in the chip business. this is about handhelds, mobile phones, ipads if you will. >> right. cheryl: this is your bigger o overall bet we're walking around with smart phones and put money into chips with smartphones, right? >> micron is doing flash technology. rewrite technology on disks. making it quicker and faster. skyworks is doing the semiconductors, battery life. so the two of those are a great compliment in the technology sector. we think they will continue to do very well. you will hear that tonight with liz claman at 8:00 when she, a, she will interview the big boys. i think you will hear the same message come across when she comes on. i'm looking forward to it. cheryl: i think our promos are working at fox business adam. >> yeah. adam: something else that is working putting our money to work. lee, i have to ask you this. you just told us put 30 to 40% of our money outside the united
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states. how does this pick target as well as something like philip morris? >> my clients are basically retired. they live off their income. when i'm looking for individual stock i'm looking for something that can keep us in the united states in those large caps. when we're talking about people moving away into europe, outside of large u.s., i'm looking for great name here in the u.s. target has smashed when they tried to go into canada. they didn't understand the market. they had a big visa card hacking scandal. adam: right. >> right now it has great dividend. it is better than 10-year treasury. a name we all know. they're doing bang up business. along with philip morris international, i think that is what will keep money here. you're less likely to have sal you players take -- value players take money out and chase abroad. cheryl: point about target. it is up 20% so far this year. people were discounting. he is talking about target and
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philip morris,. what do you say about the consumer now? if we're confident they're spending and we find out they're not so confident, they're not spending, the data doesn't tell us the consumer doing well, joe, what do you say? >> i say this, if the consumer goes away that may prophecy may come into fruition. i don't think the consumer is going away. the data is mixed. consumer names are up for a reason. we still have strength in the economy as far as what we can buy and what we're able to buy. i think consumer names are ones that we see a lot of interest in. what everybody is saying, yield. dividends are coming up. companies are starting to pay out to keep you interested. i think that will be a play. it needs to continue to be a catalyst to continue the upside move well past 2100 for the s&pes. >> if the companies have to pay to keep us interested though, aren't we range-bound? where is the breakout? where do we go better than dow 18,000? you were talking about that a few minutes ago. >> i think the consumer will
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come online this summer. they have been very to acknowledge some of the benefactors that have been out there with a recovering employment, lower gasoline prices. and again, we did have the bad weather the first quarter so we really have to wait until this summer to see what happens. but the consumer can push us forward. as far as them having to give back money to keep us interested, we want companies that will continue to raise dividend and continue to pay the dividend. you want to look for companies that have super long history of always paying different den and. so, that's a good thing. you want to see a company continuing to give that cash back. that gives you encouragement and faith that you're putting your money in the right place. adam: lee munson, matt jehn, joe cusik, thanks very much for joining us. >> thank you. cheryl: the list of republican presidential candidates continues so grow as carly fiorina and dr. ben carson announced plans to enter the race. they did that today. adam: blake best of your memory
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man joins us live from washington, d.c. with the latest count on republicans. blake? >> adam, cheryl, what distinguishes every candidate in the 2016 race, republican or democrat, they both never held elected office. carson a former neurosurgeon turned author did address several issues broadly in his announcement today from detroit. he talked about entitlement reform. he has a strong desire to get rid of programs that he says create unnecessary dependency for many. carson called for repatriation of offshore corporate profits. >> there is $2 trillion of offshore money because they won't bring it back because of the taxed at 35%. what if we give them a tax holiday, and let them bring it back and repay trim eight that money? won't cost us a dime. >> carly fiorina spoke to reporters on a conference call after her announcement which was made on social media. she also addressed tax rates
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though fiorina did not specifically address how she would like rates set. rather reform should happen all across the board. fiorina once the top executive for hewlett-packard, a fortune 20 company spoke how she feels small businesses should drive job creation. now both for the moment have ground to make up on hypotheticallal gop primary. most recent polls have carson in the middle half of the pack and fiorina running at bottom of a crowded republican field. adam, cheryl. cheryl: getting interesting for sure, blake best of your memory man, thank you very much. appreciate it. mcdonald's know customers are not lovin' it anymore. they unveil a new plans to bring you back. will the plans be enough to revise the struggling business? adam: you're being watchessed right now. at least the government will tell you how it is tracking your every move by monitoring your cell phone. cheryl: i don't care anywhere that is interesting. adam: i know where you hang out. cheryl: social media companies
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are plunging as investors are fleeing these stocks. is the start of a dot-com bust all over again? remember 2000? or could it bring the whole market down? our all-star panel will weigh in straight ahead. 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. when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night.
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adam: cisco names chuck robbins as next ceo. he is replacing long time company veteran john chambers. robbins takes over effective july 26th. chambers stays on as cisco executive chairman and heads the company board. claim who led -- chambers who led cisco for 20 years. he said there were 10 candidates that could take over as ceo once his run is ups chambers said, and this is quote, we've select ad very strong leader at a time when cisco is in a very strong position. shares of cisco closed the day, as you can see, higher. also -- cheryl: mcdonald's, i will take it from here because we'll talk about food. adam likes to talk about food. not burgers but mcdonald's. they're laying out a global turn around plan to boost their business but will it be enough to revive the fast-food giant?
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let's bring in our panel, larry shover, sfg alternatives chief investment officer, paul vigna, "wall street journal" money beat reporter and jason aisles. seems millenials want healthy. mcdonald es is not healthy. does that change the issue for them? >> no. that is the real problem. they will cut some costs. squeeze some inefficiency out of the system. that's fine. their problem is they still make incredibly unhealthy food. i don't mean to disparage mcdonald's. they have salads and trying to get away from that. this company makes fast-food and it is unhealthy, that is their business and they can not get away from that. cheryl: jason, it is interesting, not that they're not trying to be fair here. i was looking at, they want to cut antibiotic use in chickens. they're moving towards that. they're trying to boost wages. breakfast all day. i have no problem with that i think that sounds awesome.
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trying to come up with new types of sandwiches to serve. maybe that will help them eventually? >> you know, well the new sandwiches would have to be extremely new, not just another variation on a big mack. i 110% agree with first speaker. i speak from passionate as well this is my favorite topic especially healthy foods. mcdonald's has issues. you see pictures on line mcdonald's burger looks five years ago is the still the same. i equate that to the stock price. it is stagnant for three years. growing market over past three years. mcdonald's has done nothing. there is reason for that. chipolte is in the history books, big one that got away. chipolte doing right things, no gmo. fresh healthy options. mcdonald's has a nice way to go. cheryl: larry, if i owned stock, i think i might be a little bit excited what he wants to do as
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ceo. easterbrook wants to get out i own the restaurant where i franchise out the restaurants. that is bert for the stock. maybe not better for my waistline but better for the stock, right? >> yeah. especially the short term. it is compelling. it might act as a floor to the stock given it has a 3 1/2% dividend. the fact they will improve on some inefficiencies and do some frans choicing and refranchising. the key is how quickly they can implement those changes. the other guests are right, a lot is about the unhealthiness. beyond that we have to remember the space is so much more crowded than it was even five years ago. even if there were healthy menu choices which there are, it is really crowded space. mcdonald's has to revive itself like it did 10 years ago. cheryl: we'll keep an eye on it. investors look at today. we'll keep an eye on company. maybe they change things around. something else we're watching. this started to happen last week. a lot of internet darlings we
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follow took big hits last week. think twitter, think yelp, linkedin. all the stocks fellas week. are we going to see a dot-com bust all over again? paul, can you compare twitter to pets.com? >> no. i don't think that is fair to twitter. although the good comparison neither one of those are profitable. twitter has still not turned a profit. that is a big issue for them. linkedin is a little different. they are profitable with a pretty good business model going. with all the stocks, the problem these are big momentum stocks. when the momentum is with them they're running up and going up, the stock goes up way more than they're really worth. you realize that when momentum goes away and they start sinking like a stone. cheryl: good news, jason, versus 2000, 1999 i can actually understand what these companies do. twitter, linkedin, facebook you know what you're getting versus not understanding what the
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company does. does that change the nair scenario you think in present day? >> gosh of course. compared to 1999, at least these are actual companies with real businesses versus just an ipo based off a domain name which is kind of insane. but that is water under the bridge. i think you have to look at social media, well these four stocks as two categories. facebook and linkedin which are incredible business models, tens of millions of users. then you have yelp with 300 pe. even twitter is in the same category of yelp. cheryl: you're saying that they're overral used? >> oh, yeah, absolutely. >> the stock deserved to get hit last week? >> i'm in favor of linkedin and facebook long term. more important from money making standpoint facebook has done the best job by far categorizing their users for their ad tiesers. that is why facebook is the best one. cheryl: we'll have more after a quick commercial break.
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coming up, a lot of money for americans, pharaoh, the horse could it break the triple crown drought after 37 years. i bet on california crumb. adam: i, was it seattle slew? are you looking for new job. have a kid looking for a job? a company will help anyone looking for a job. forget the quantum algorithms. what the company does gives you definite edge over everybody else. we have ceo of job scan. they will tell you what you're doing wrong and how to easily fix it. justice will reveal more details about the u.s. government's use of secret cell phone tracking devices. are you a target? from the song of the '90s, somebody is watching me. we have got that story next.
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>> i don't think there is anything sinister in trying to get wealthy people in countries seriously involved in development to spend their money wisely in a way that helps poor people and lifts them off. i don't think there anything wrong with that i think that is good. cheryl: that was former president bill clinton defending his foundation's foreign money. is there anything i don't know with this? we're bringing back in our panel. paul, yeah, there is nothing wrong, hey the foundation has to make money. i have to make money. paying bills for hillary. what is the issue? >> personally whenever i hear a story like this, if you want to complain about money in politics, don't worry about bill clinton's foundation. worry about you will at laws that have been changed worry about billion dollars plus going into the presidential election and how money controls who can run and who can win. that is really big issue. that is not being determined by what money is going into bill clinton's foundation. this is regular politics. if people really care about
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money in politics, this is not the place to be. cheryl: but, larry, look, hillary and bill are peas and carrots. they go together. at the end of the day you get bill with hillary. some people say the old bill clinton deflected all of his issues, leave it there, in the '90s. >> they have done such a great job. i so badly want to give them the benefit of the doubt on this one. i've seen with my own eyes good and germain, port-au-prince, specifically in haiti, however, are they giving all they can? is it just a conduit to get political favors done? i don't know. i would love to give them the benefit of the doubt. but i think we should look past this, buyer beware, knowing this is going on. if you're comfortable giving to an organization that might give 80% not to the organization but to themselves that is a problem. also potential security risk. cheryl: jason, did you, appreciate what the former president had to say this morning or do you think it is politics as usual with the
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clintons? >> well it is classic bill clinton. for better, for worse. if bill clinton, might as well have said, well, really just depends how you define inappropriate. that is kind of what he said, right? i think in this situation, again, you know, you almost have to take the good of what the clinton foundation in reality done are to the world and for underprivileged people of the world with the blatant manifest reality, you know what? foreign governments, saudi arabia, 20, 25 million to the foundation, did saudi arabia think they were get some type of special treatment in hillary clinton's world? probably, probably so. cheryl: i do want you to stand by just a moment. my colleague adam shapiro with breaking news. adam: this is involving hillary clinton. her attorney is willing to offer her up to testify before the committee investigating benghazi. apparently she will only do this once though. what they're saying it would only be once, not twice as been
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indicated by different members of the committee but hillary clinton, apparently according to her attorney willing to testify about benghazi. cheryl: paul, real quick, as usual should we read into this. >> politics as usual. she has been running for year-and-a-half. every single thing revolving around her will be a political scene. cheryl: now she is running for president. may be testifying. that will be a whole new ballgame. guys, last topic really quick. this was part of everyone's weekend we think. american pharoah, the horse won the ken dern and favored to win the preakness in baltimore. could this course bring in a triple crown? we have not had a triple crown in 37 years. this be the year the horse and not only that but sponsors take home the prize of winning in racing? >> sure. every time something unique happens in every sphere of the world, there will be more
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attention and money involved. 37 is quite a it about. i read a lot about american pharoah. the horse is quite amazing. but from a bigger picture perspective where has the horse racing world come? seems like there is kind after decline in global presence. there has been more regulation. so i feel like, it is almost like the mcdonald's situation where something new needs to be done with this whole industry to treat the horses better and give a more marketable product for just one month out of the year. cheryl: humane society says it has gotten better but a lot of big companies are getting in on the game so where can you fine new viewers? horse racing scenes up and coming with younger generation. looking at comcast, coke, wells fargo, contract vs. jack daniels, gray goose, shocker. companies are finding a new opportunity. maybe this is is it, horse racing? >> you may be right.
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there seems of resurgence after years of decline with horse racing. perhaps that is becoming interesting. maybe american pharoah will become one of the 13 to win two and not triple crown. i think that is the case. for him to win the triple crown you're betting $400 as a loss to the triple crown or $280 for the win of the money line is moving around. it is not very good. cheryl: but it is so fun. paul, triple crown this year, can we do it? >> of course we can do it. cheryl: positive. i like it, guys. >> last time this happened, didn't have social media, internet, personal computers, anything that we use now you didn't have any of it. interesting to see how the world reacts on social media and twitter. it will bring horse racing into the 21st century, what you guys were talking about. cheryl: i will monitor for fox business. larry, paul, jason. thanks very much. there you go. adam: a lot of americans are up
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in arms hearing about the justice department secret spy program that tracks phone data to track criminals. they were picking up vital information from innocent u.s. civilians. the outcry over privacy has the u.s. changing its stance on cell phone technology and launching a review into its use. in addition to evaluating when the phone tracking should be used and how, the justice department will also start revealing more about the secretive tracking devices, in the words of mel brooks, promise to never do it ever again. cheryl: i heard you say that before. many qualified job-seekers are being turned away from jobs because their resume's are missing one critical component. what is it? how can you upgrade the resume'? we talk to company to help you address the issue coming up next. adam: how can you get thousands of dollars off a coveted tesla model s? we'll tell you how to negotiate
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potentially exposes tesla to new market, used car market but spray in the new sell. like other luxury brands, tesla offers extended warranty on your car and cup holder. cheryl: your favorite topic, cars. cheryl: nowadays, get this, more than 90% of large companies use computer screeners that eliminate candidates who don't have certain key words on their criteria in their resume's. adam: make it so easy to do. how can this pass through digital scan in order to get face-to-face time with the potential employer? here with tips how to upgrade your resume', james ho, job scan cofounder and ceo. i imagine you have a lot of people taking advantage of this. very simply you have a program, it takes a look at your resume' and identifies if you have the right words or long words in order to get the interest of the
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company? >> yes, exactly. so how it works you paste resume' into one box and job description of your choice into the other box. you click scan. job scan will immediately tell you what key words are missing. what max rate is for the job. even jobs that are relevant to you. cheryl: what is so interesting about this, there are certain key words, say you're applying for 20 jobs. you are coming up with a resume' for one size fits all. you say we're making huge mistake not changing key words. give me an example of a key word that is crucial to a resume' that needs to be there so it doesn't get kicked off by the software? >> right. for one example would be, different companies use different variations of words. different companies have different jargons and different departments have different jargonses for skills. one is project management which can be program management in one department. clear case between microsoft and
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google. microsoft called it program management. google says product management. if you louis program management for job at google you might not be found. skills could be relevant. we work with the menu making key word you're use something the exact match. adam: james, are you actually aggregating specific information on big companies, so i as user of your service, whether i pay for it or not, could taylor it to -- tailor from microsoft versus apple? in addition to that, how much does it cost somebody? is it free hordeuver to pay to do this? >> we have a huge database of skills and taxonomy as well. it is not company specific but it is across multiple industries. the price for this is, we have three plans. the first plan is free for a month. actually free, and you get five free scans. second plan is free for a month, 49.95 per month. third plan is 89.95 for three
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months. cheryl: you're saying this is $10 billion industry, companies are saving time and money. they want to pay to have the software in place across the board. is it just large corporations? large companies using it as well? >> yes. actually all across small sized, medium and large size enterprises. there are over300 companies making software for companies. for each job, large companies may get as much as 400 different applications. they need a software to filler out applicants. 15% of the applicants are actually qualified. most are not qualified. cheryl: so it is interesting on the don't, don't list skills that you don't possess. adam: people lie. cheryl: people lie on their resume's. it is amazing. go ahead. >> that is one thing we recommend not to do. cheryl: don't lie. actually not -- right. we epyou show the skills gap between you and a job. making sure you're actually phrasing the right words. adam: that is good advice.
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there are ceos who have gotten caught lying, lost the job. >> exactly. cheryl: james hu, thank you very much. you can visit our facebook page for the link to jobscans sight. it has five free bonus scans for fox business viewers. if you're outlooking for a job. many of you are irless than a month into the baseball season and one-time cutting ties with its coach. who is the manager? we'll have that straight ahead. cheryl: one company sick maaing big advantage in nerve repair. it is working on ways for patients to feel and function in ways never possible before. we have the ceo and president will tell us how in a fox business exclusive. that is coming up.
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adam: take mow out me out to the ballgame or take me out. less than a month into the baseball season one manager already got an axe, 7-18. worst in the league, milwaukee brewers. they announced they fired manager ron roenicke. finished his four plus year in
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milwaukee, 343-331. the pruers will replace i am with former special assistant, greg counsel. this company making a huge strides with tissue repair. sales soaring up more than 60% so far this year. cheryl: how will the company gain bigger share of the fast growing nerve repair and regeneration market? joining us in fox business exclusive. the ceo and president. so, first off, karen this, is fairly new type of technology basically. bioscience if you will. regeneration, building, growing of nerves for the body. how far are we in the science right now? >> well, thank you very much. peripheral nerve repair actually has been around a long time but our product has only been available in the market the last few years here in the united states.
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expanding around the world. we're able to help advance peripheral nerve repair which is very common injury in ways that haven't been done in over 30 years. so we provide regnerative medicine platform that allows the body to heal itself upon a surgical implant. adam: i understand harvesting of nerves from donors, either from cadaverrers or others. is there organic growing of nerves? the second part of my question do you get 100% recovery with regnerative processes like this. >> first, where dot nerve products come from? we use tissue from the tissue donation process. we take a nerve through the tissue donation process. we protect it through micro structure. the nerve has a very small, complex structure. in doing so we preserve the biochemical cues that allow the body to react and respond and essentially take this, almost like three dimensional blueprint and remake the patient's own nerve.
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a very unique process to provide a good outcome of patients. not 100% but we've shown very strong results with 87% meaningful recovery rate. so strong results for those patients having peripheral nerve injury. cheryl: i will boil this down from simple question. i had nerve removed from my foot. i'm a runner. doctor says, okay, it comes out. what would be my options with your company? what would you do to a damaged nerve in the foot for instance? >> well, depends on what is causing the injury. very often pain in someplace like the foot is due to compression. so the nerve is trapped by tissue surrounding it. another one of our products, the nerve protector can be used to wraparound the nerve to separate it from the surrounding tissue and allow it to glide freely in the foot. especially as a runner that would be very important. that would be one option our unique product portfolio would provide. adam: real quick, your stock is down year-to-date.
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but potential for growth is amazing. 2 billion-dollar industry. high as what, 67 billion, five years from now. >> yeah. large, large market opportunity. we believe that we could be 1. -- market opportunity here in the u.s. alone would be 1.6 billion. today we're still growing, growing quickly but a small percentage of share, moving surgeons from traditional surgical techniques, which mean, essentially borrowing nerve from someplace else in the body or removing it completely as you had to if i have patients a -- give patient as new better out come. >> thank you. the stock is up 30%. i know i will. adam: she has longer outlook. cheryl: thank you. >> thank you. cheryl: coming up warren buffett reveals how he decides which companies he wants to buy. don't miss part of liz claman's sit-down interview with the "oracle of omaha" coming up
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next. adam: general motors making a big announcement from its kansas plant. jeff flock is there. what can we expect? >> right here on the production line, adam, where they just celebrated the 500 millionth general motors vehicle in history. that is a chevy malibu by the way. we'll give you some other details when we come back on a big day for general motors. >> hi, everybody, i'm gerri willis. coming up on my show at the top of the hour, we kick off our week-long users guide to the spring real estate market. is it time to buy, sell or hold on to your home? just one of the big stories coming up on "the willis report" in just a few minutes. ♪
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>> investors descended on city of omaha for the annual berkshire hathaway meeting and our own liz claman was with the billionaire investor himself all weekend. adam: liz is live from omaha. what do you have in store for us? >> what is amazing, we saw a bunch shareholders, berkshire hathaway shareholders the company warren buffett started 50 years ago wearing these passes. it will by end of entire five-day, six-day weekend it, will prove he made 50 million plus dollars for the company. that is more revenue than some companies make in entire year. because they get shareholder discount, they are buying so much jewelry, et cetera. it is on the floor of the
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centurylink arena where he is surrounded by i'm guessing 41, 42,000. he hasn't given us the full number. they surround him, warren, look over here. let me take a selfie. it is absolutely crazy. festivities continue all weekend long. brooks running, a running shoe company berkshire hathaway owns has a 5-k race where there was gigantic warren buffett bobblehead running the race. it was a festive atmosphere. he had to answer tough questions about couple of subsidiaryish like clayton homes and netjets. a lot of job cuts. doesn't fit well with some shareholders. they asked him about it. we have an opportunity to really hear from the man who became a multibillionaire simply by working hard. i began by saying look, you were born in 1930, the height of the
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great depression. is it still possible to that that american dream and did you imagine you would end up building 50 years ago, world's largest publicly-traded company. here is what he said. >> we kept putting one foot in front of the other. i had a terrific advantage having a long run and doing it my own way. if you work 50 years at something you should get something accomplished. >> you talk about putting one foot in front of the other, by doing so, sticking to your knitting, you aaccumulated more than 80 companies with subsidiaries themselves. they are diverse from entire railroad from burlington-northern to dairy queen? >> yee. >> what is it in your psychology of what you try to buy? >> i try to buy things trying to understand what their economic future will be 10, 20 years. i try to buy companies with great management. we don't have managers to put in. we have only 25 people in the home office. i try to buy them at a
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regionable price. when we find them, all three of those ingredients available and i've got the money i write a check. >> you say kiss met and that's it? >> that's it. >> you, people don't really understand how you began accumulating money. do you think it is possible for young people to do, buy penny stocks, sell them and take profits and buy better invests as time went on and then you're a billionaire? >> yeah, i think there will be a number of young people out there that will, are eight or 10 years old now will accomplish it. a whole lot more will try night do you remember some of the penny stocks you first bought? >> they weren't penny stocks but chief stocks. they were not penny stocks. some sold very high dollar prices per share but they were, they were, so-so companies. not great companies like we try to own now. but they were cheap. we called them cigar buts because they're on the street and kind of soggy.
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didn't look like very much but had one puff left in them and the puff was free. i sort of learned investing that way. then my, to be partner, charlie monger, straightened me out after a while. let's buy wonderful companies at fair prices. fair prices rather than fair companies at wonderful prices. >> it is the all-american success story. look there is a lot of really tough news out there these days in the headlines. you want an optimistic story of the american dream and how it was pulled off, join us tonight, 8:00 p.m. eastern, for "warren buffett's america." you will also hear his partner, charlie monger, who many people here like to hear more from than buffett himself. then bill gates, one of the board members. a fascinating look. you have got to watch, 8:00 p.m. eastern tonight, "warren buffett's america," right here on fox business. back to you. >> we will be watching. liz claman from omaha, thank you very much. adam: we're watching jeff flock. he is at the malibu plant for gm
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in kansas. what is going on, jeff? >> always great to get inside the plant to actually see cars moving down the production line. this production line does not stop, adam and cheryl. three shifts here at the fairfax assembly plant where today they celebrated 500 million vehicles made by gm over the course of history. more than toyota, more than vw, more than ford. they had 300 million plus. a special day here at gm. we talked to mary barra earlier today. talked to the alan beatty, president of gm north america about the volt. this is very successful vehicle, the malibu. volt hasn't been so much. they announced new pricing on that. if you put numbers up, $1500 less for the new volt. still not a big winner for them. they might not fet to their next 100 million by selling the volt but there you go. we'll see. that is the latest from the fairfax assembly plant, love to see it. it keeps rolling on here in kansas.
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adam: 500 million and counting. jeff flock, thaw very much. >> liz claman and adam will be here tomorrow. next hour "the willis report." i will be there with gerri, talking real estate. shameless self-promotion. a@am: see you later. "willis report" next. gerri: hello, everybody, i'm gerri willis. and this is "the willis report," a show where consumers are our business. clintons on the defense. bill dismisses any wrongdoing in the foundation's handling of foreign cash. >> i don't think that i did anything that was against the interests of the united states. gerri: the baltimore cure if you is lifted -- curfew is lifted but hundreds of businesses is lost. why one business owner says the real work begins now. buy, sell or hold. we kick off our week-long special user's guide to spring real estate. our panel of experts break down the picture for sellers and aisleses. i do with the marriage pan

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