of that right here on the wall street journal large. thank you for joining us and goodbye from davos. ♪ ♪ >> barron's roundtable this week phillip morris ceo andre' calantzopoulos on with the cigarette maker is doing to help smokers quit. the return of boeing 737 max and how the crisis and the coronavirus will affect the flyers in stock prices. and billionaire investor mario give valley with the stock picks for 2020. barron's roundtable starts now. ♪ ♪. jack: welcome to barron's roundtable with the sharpest minds on wall street meets get

behind the headlines to prepare you for the week ahead. i'm jack otter and we begin with what we think are the three most important things investor should be thinking about right now. the deadly coronavirus' hits the market just as boring returns at 737 max how the two are affecting airline and supplier stocks. for big tech companies reporting earnings. which we expect from them. in the business of sports whether e sports teens and gambling stops can up your investment game paired other roundtable tonight my colleagues al rupe, carlton english, and jack howell. sowell, investors who are little nervous at the close of the week, the dow is off 170 points, but gold bonds rallied, this is probably related to the report of his second corona case of the u.s. nationally anything travel related is hit pretty hard. >> gap hotels, cruises, airlines tend to drop and things like this happen. and it sort of a double whammy for boeing.

not only was there the virus this week, boeing said that its troubled 737 max would not come back until the middle of the year. that was kind of the big purse announcement for the new ceo. and boeing stock in continues to be right where it started for the week even though they pushed the reentry of macs another three to four months out in the future. >> i keep hearing from people saying it's not going to happen even by summertime. they should just come out now and announce it altogether one-shot, that's very pessimistic and wondering if that level of pessimism in your view baked into the stock price here? >> boeing has lost about $65 billion in market value. it's doubt about 25% since this whole problem started. and if you look at the max as a percentage of boeing sales and earnings it's about 30%. wall street thanks about 30%.

so taking a plane out of service and paying suppliers, it's a big mess. but it's what we look at it. i think that investors have low to no confidence in the timeline, but i think if pressed, they still believe the max is going to come back, and even the ceo with confidence on his first call with the media, it will fly again. >> we got really good earnings news from netflix this past week the rest the fangs are gonna be reporting the next two weeks. why did you think about netflix because i know you're not crazy about it. >> will hold on, netflix is the best-performing stock of the past decade. if you've been cautious on netflix it's like you had an underweight rating on puppies and joy. it has not been a fun place to be and i won out. i look at the report, everyone says the u.s. subscriber growth but look at the international growth. it was wonderful. the company is still burning cash but it said last year was the most cash to burn.

i am trying to find a way to be optimistic. i need emotional support to get that. >> or behind you jack. your former stocks in your optimistic on those. >> we got apple coming out of tuesday, will facebook on wednesday, amazon thursday in the following week have alphabet on monday. if you are wondering whether you should only stocks, the rule of thumb i like to use yes yes yes and yes. all of them to me look reasonably priced, relative to great growth. >> apples low pricing for her not great growth prospects. >> the thing is most concerned about apple was this past year, we have not yet got to the 5g phones. maybe it will be off your nose can upgrade their phones. that has not played out. now we're at the point where investors are going to look for that 5g upgrade cycle which will be a good one. >> what about alphabet and then facebook, really nice growth from companies. >> facebook and google remain

the place that all these online ad dollars are funneling to. and when everyone is out there complaining how much they hate facebook and google, they're mostly complaining about her on facebook are using one of the google products and they gain users. they can grow the top line at 20%. we have never seen companies this big row this fast. jack: so your two bulls here telling something about amazon? [laughter] >> relative to this year's earnings, yes it looks expensive but the free cash flow is ramping up quickly. i think at this point you pick a couple years ahead and you said this company is going to grow into its valuation. >> what are not sure about is i am worried about people in direct competition with amazon. jack: okay bid package in the business of sports. we take a deep dive into gambling. >> sell online sports betting, we're talking drop kings for the two pure plays. this is a massive business and legalization comes in more

states for you look at new jersey they say about 25% of their business is new yorkers taking the train and gambling on their phones. >> the voting with their money for the winter. >> a lot of states are probably not going to adopt this but they don't want to miss that tax revenue so this is a huge business whether you like it or not, it's a business. >> speaking of like it or not, huge audiences to watch people play games on their phones. what's going on with this? >> yeah let's see sports in this game of legends and that you have 44 million concurrent viewers on this. and by comparison you went game seven of the stanley cup, i know you're big on this, you may be got 11 million. we may not understand it, it might not be our generation, but people are obsessed with this. >> i might still have my old atari machine with the pac-man think anybody would want to? >> pac-man it's a nostalgic factor absolute. it's been nine right jacqui

roda article on the sports package either a cave not super bullish on it. >> it's perfectly aligned for the ad agencies. you've got the olympics coming this year you've got an election year, and it's a great economy. they just aren't doing as well as you would want them to do in such a good year for them. so they look cheap, i'm not convinced they're worth buying here. jack: are a gambling is not the only category were looking at this week. coming up we have an interview with the ceo of phillip morris and he wants to take this cigarette out of the marlboro man's hand. we'll

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jack: a london business school study found that 1 dollar invested in the stock market in 1900 way worth more than $40000 today care. impressive. but a dollar invested in tobacco stocks over the same. would have grown to more than 6 million. what will the future of tobacco look like? earlier this week we caught up with philip morris ceo andre' calantzopoulos to find out. andre' you said you plan to phase out cigarettes worldwide. how do you do that? >> by offering the people who would smoke and not otherwise clips, products that are noncombustible and they have less toxics and they are better than cigarettes. and we have a portfolio of products, some of the which no no tobacco, like the one that was recently authorized by the u.s. fda for commercialization. we also have what is more

known to the public that is even a. products. and we have the latest technology development in this domain. we also have products that have pure nicotine because we believed to convince the people who smoke today to switch out of cigarettes, you need to offer them a variety of products and they need taste and satisfaction that cigarettes are. gerry: do you use any of their products? be yet. >> yes since we developed it before was commercialized, yes. jack: so ... cigarette use is in decline with these others are in growth mode, how do you manage that as a business? >> well first of all as a company, we decided to do it as one company and not separate units. so we did not create a unit that is different to

commercialize the. [inaudible] but we said because they want to replace cigarettes we will do it as one entity. and at the same time, we clearly focus the organization on the new products by real callie new resources from cigarettes to these. and if i can give you some numbers, last year, this product we presented was roughly 14% of our revenue which is already remarkable. but 60% of our commercial efforts, both in marketing and sales went behind this product. so we are very serious in what we're doing. jack: 's you think wall street gets it? your shares have a 25% discount to staples which might be part of the course for any tobacco company. is that a gap you think you can close as wall street understands a storytelling? >> it may transition, there is

uncertainty among investors. so i think also with the events happening with the vapor in the u.s. which has apsley nothing to do with philip morris international, influence investors. because as we both know, stock market does not like uncertainty. but on the other side i think our investors recognize we are ahead of anybody else in our industry. and clearly, as we would deliver the results and consumers do switch, i think they investors will be more and more insured and obviously the share price will go up. we at the same time, believe the products we have are much more important public health. so it is good for the consumers, it is good for our shareholders, and i think it's

a more sustainable business overall. jack: can you explain the safety differences between a heated tobacco product versus a jewel type product? >> i think first of all we need to understand what happened because we need to separate jewel and youth use of nicotine because of the vapor category, that is a serious issue that needs to be addressed. versus the use of oils and vitamin e and typically our systems or some black-market products that created the unfortunate death and disease. this was misuse of products using cannabis oils in different substances that should not be used with this products. now the good news is, the both the fda and the center for disease control concluded that this had nothing to do with

the traditional legitimate market ebay. products. phi hope this is going to be behind us. jack: you are at davos what sort of grade would you give philip morris along those lines and importantly as we see the investment world apparently moving more toward sustainability and judging stocks, how do you expect that will affect your company. >> the biggest impact we have in sustainability in the world is by changing our products. because the most thing to do is to switch the other -- there are 1 billion people that smoke today, from the highest more ability products, which are the cigarettes too much products that are much better for consumers and they will have a positive impact on public health. so addressing our product impacts, is the most important

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jack: earlier this month we held our annual barron's roundtable atop investors give us their ideas for the ideas ahead. mario gabelli joined us at the roundtable and his back with us now. i mentioned earlier this big sports package in barron's this week we talked about liberty. and that's one of your picks for the year. >> 's been a favorite of mine for a while. jack: good for you is done very well.

it's. >> the braves in atlanta have done better on the field. if sports betting coming that's going to add value, that allows more people to watch it longer. and then they also develop the land around the city. the stocks are selling it 29, jon malone owns exit strategy they owned 20% of the voting stock. you should buy one share of baron's friends and own them both so they can move to the next. [inaudible] >> another player in the space msg they are about to split. the entertainment side of the team side? >> i understand the next have an enviable record and it's going to be hard to match. i know some people from philadelphia think otherwise. [laughter] ahead of that the stock is selling at 300, so i'm waiting to see, before i pounce even further, and we dealt with a lot for a long time with the balance sheet is get a look like. so keeping the teams here, spinning off the entertainment

that's like madison square garden and so on. we will see. but i am more interested. jack: mario are people missing opportunity from sports betting, it was once taboo and now all the leagues are essentially doing partnerships with casinos and having profits and games and things like that. >> it's fairly significant outside the united states. so you get countries we like that have an understanding of how to play" football, soccer for us. so the in game betting and online betting are important. today fox for example started they bought us peace of this sports group and they bought band do comets get a comeback. the teams and leagues are going to get a piece of the incremental revenue. we look at the whole echo system, we like it and we want to see it it's the adjunct to the bricks and mortar there's only 14 states doing it. jack: mario we are here on

foxbusiness which is part of fox. are you disliking fox stock because were here or you like it as a company? >> i don't like it being here but i do like the stock. their 600 million shares times 37 is what the numbers $20 billion. it's a spinoff from the new fox. they've got fox sports, fox betting, fox news, and they have a tsunami in that synonymy is what's coming up in the next six months which is near bloomberg and stier are spending a lot of money. and that's going to be helpful. short term they're gonna put wwe back on television, that's a challenge but they've got super bowl. i know you're going to miami to watch it. i'm a 49ers fan, sorry about that. one of my teammates gino to retta had played for miami and he played for the 49ers for a while, so i've got a room for the 49ers.

>> i want to change channel viacom, cvs you like it and will he be taken over like evan keeps asking? >> national amusements is 42 of the 52 million voters. there is an addition to that another 550 so-called 600 million shares, again 37, same prices fox. contents, they have paramount that's doing better. bob bacchus is doing a good job. in the cvs with question as they will access the coming along with this "star trek", is not going to help? but more importantly he knows how to put numbers together and motivate people. and how to spend money. they are going to have $30 billion of cash flow over the next four years cumulatively. that's after spending 14 to 15 billion a year. so can they pick the right movies? yeah i think they can do it. so the streets negative because the peacock -- disney and hulu.

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jack: for people concerned about tesla's valuation, jack, you have a very interesting play. you don't need to bet on tesla, gm, you've got chips it's going to be in all these cars. >> i'm looking electrification and automation for these at thomas cars. mike carr in 2018 is a level one, it will steer itself on the highway, but you have to keep your hands on the wheel. if i got another one at the end of this year will be a level three car you can take your hands off the will in slow traffic. my definition of a thomas is recline your seat all the way, both hands on a pastrami sandwich, you put the carrie underwood song jesus take the wheel, we will get there

between now and then between now and then by mxp semiconductor and lom semiconductor, bankamerica loves the stock. >> in these things trade tesla has the swings. if tesla gives you too much angst, but you've always wanted so in it, maybe take a look here instead. jack: you also have an electric carpet, al. >> if you have tesla falbo, you can look at the chinese electric maker. warren buffett owns 8% of it. it's actually a larger ev maker than tesla is in china. jack: cars are not quite as cool looking and we are going to go out with carlton's pick. >> 's picking this sports betting team are going for diamond eagle. it announced last month it's going to. jack: not making money yet,

but a lot of potential out there. >> a lot of potential, it's a bet, deafly about. jack: thanks for those ideas to remorse out this weeks of barron's.com different files on twitter at barron's online, that's all for to kill that. we have a lot coming on next week, i'll see you you here, have a good weekend. >> from the world economic forum and davo switched on here is a special edition of maria wall street. maria: happy weekend everybody welcome to the program the looks of the week it was in position you for the week ahead. this week coming to the world economic forum here and davo switch on. a big program weekend just a few month my one-on-one interview with donald trump we talked about his priorities for second term as wells get his reaction to the senate impeachment trial underway. then later my interview with yvonne could trump working together to put america back