tv The Claman Countdown FOX Business December 19, 2022 3:00pm-4:00pm EST
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dollars. i interviewed him on friday. he wasn't sure if he would take an offer of taking maybe half that money. he really did seem again you in ly torn. they offered him 230,000. apparently he took the money it was 283,000. look at the bets this guy had to figure out and he had to get every one of those right on your screen and then he had to get the last game right on sunday. well, he was betting on france. you could be sure, daniel breathed a sigh of relief that he did actually not go through with it. he took the money and says it was the best cash-out ever. boys and girls even though you want all that money, gambling like that is not the same as the stock market although this year, liz, has probably felt that way. liz: yeah, but you know what i can't even put a quarter into a slot machine, because they don't cake quarter anymore, and i'm too nervous to do that. charles: i hear you plus you know what? it's like what the hell is going on here!
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liz: [laughter] hey, i'm going to vegas for the consumer electronics show in january, so i'll be hear ing a lot of that. charles: i want to see you do blackjack at least though. liz: okay for you i shall. charles: thank you. liz: one hand, whatever that means. charles: see you. liz: guys we got a bit of a messy monday as we kickoff the final hour of trade. it's a dog pile only with bears. we have red on the screen for the fourth day in a row and it's kind of accelerating to the downside here especially with the blue chips. to the dow which is adding 321 points to last week's 556 point loss, the s&p right now as we flip it over you can see is moving lower by 50 points. the follow through of last week 's fears still in play with the markets as investors weigh the federal reserve's promised interest rate hikes with data signaling a recession, so it's kind of a cosmic crash there. the nasdaq which saw the biggest percentage loss last week of 2.7 % or 299 points is right now
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down another one and three- quarters percent losing 187 points but check the dow heat map. what's fascinating right now is we've only got three names in the green, but at aunt noon it was half and half so most of the dow has turned red at this hour with losses led by disney and nike, microsoft, home depot and ibm. the only ones in the green boeing, walgreens boots alliance and jpmorgan chase, just by a hair for walgreens boots alliance and jpmorgan but there are really no bulls to be found when it comes to warner brothers discovery, folks this is the biggest loser on the s&p. it is falling down 7.25% very close to session lows this and session alone shares have hit at least two fresh lows. remember, i can't say 52 week low because the merger between warner and disca became official in april when discovery bought it from at&t and since then investors have just been diving for cover, slicing nearly
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63% off the price. as the company groans under the weight of $50 billion in debt, twitter is buckling not just under $13 billion in debt but from new owner and ceo elon musk's antics, which have not only infuriated tesla shareholders, some of whom are demanding elon step out of the ev c-suite but have twitter users telling elon via his own twitter poll to exit stage left. to madison alworth first with the chaos and confusion swirling around the social media site. madison? reporter: liz, you know, everyone is waiting to hear from elon musk all day today because the twitter verse, they've spoken and they say they want a new leader. elon musk on twitter, you know, he asks the quote of should he step aside and you can see the results there. what you're looking at is 57% of the roughly 17 million accounts, they said yes. they want a new leader, and musk is saying that he would listen to the results but as i mentioned we've yet to hear from him all day.
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its been about eight hours since that poll closed and what we're now seeing in the aftermath is some movement in the stocks as well. tech stocks, they're doing "the talking" while elon is not both meta and alphabet you're seeing down today and then tesla of course tied in with all of this. they also were first up on the news that he might be realigning his focus and focusing only on tesla, but now, things are down again. you know, so since taking the helm of this digital public square, musk has come under fire for a lot including firing much of the staff, and suspending accounts. he did say, liz, before putting this poll out there, that he would listen to the results and those results, 57% saying step aside. we are still waiting to hear from him and we'll bring you the latest when that happens. liz? liz: madison alworth, so folks, why lead with a privately-held company? well the twitter turmoil is doing precisely what tesla shareholders feared. tearing down tesla stock which right now kind of flat-to-lower
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at least its been toggling between the two. we can show it to you right now but today has hit several fresh 52 week lows. it's a big downgrade, however, from a long time tesla bull propelling those moves on wall street. oppenheimer analyst rating the stock from a buy to a hold, dropping it to that hold blaming twitter for elon's loss of focus saying the negative sentiment from twitter could linger for quite sometime. the shareholders are furious at least a whole bunch who have gotten very vocal. for example, gary black whose managing partner at the future fund which has tesla as its number one holding, also sees overhang, or kind of like the bad fish smell from elon's twitter tie-up. he tweeted today, "while elon is stepping down as twitter ceo is positive, he said he will but he's been remarkably quiet, folks on twitter, gary goes on to say twitter overhang can't fully lift until credible twitter ceo is appointed, finances improve so elon doesn't
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have to keep selling his tesla shares to fund it and it becomes clear there's minimal residual tesla brand damage from twitter ." and then you have barrons senior writer al root with a headline saying in a brand new article that hitting the tape that says while elon's twitter departure is something tesla investors should keep an eye on, there are a bunch of other factors at play with tesla stock performance this year to worry about. both gary and al join me now in a fox business exclusive to discuss all of this drama and gary, i've got to begin with you you've got to be furious this is your largest holding. tell me at the gut of your heart , what you really feel elon needs to do? if it is just get out of the way then say it. >> he needs to step aside as the twitter ceo and refocus on being tesla ceo. tesla has got extraordinary fundamentals on their own, as ev adoption sores around the world. they are going to earn at least seven bucks next year.
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they are going to earn probably 20 bucks by 2026. we think the stock is worth two or three times what it is today , but elon has just got to get out of the way because that's the knock-on the stock right now. there's a worry and i think it's misplaced but there's a worry that the drama at twitter is causing controversy where ev buyers are saying potentially they don't want to own tesla any more. tesla used to be the cool car and the worry is that maybe it's not any more because of all of the drama at twitter. liz: and you do also make the point that his political views have now come spilling out on twitter, and for the classic tesla car buyer, they often believe in green energy, which leads many to believe that they also are a bit center left and therefore, when they see things like, you know, two words, fauci and prosecute, they are like what is he doing, and you had said that the customer perception should be proud, not
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embarrassed to drive a tesla, so all root let's go to the numbers here. you talk about exactly what's been hit hard here besides the brand. do you start to see any effect in the numbers? >> not really. i mean, not yet, right? i think that gary summed up in those tweets that those three issues, right? brand, image, management distraction, and this constant not unregulated -- liz: unleashed. >> scattered selling that has no seemingly rhyme or reason to it. those are the issues that are at twitter that cost the stock 75 bucks. outside of that i think we're in this period where people are wondering what rising rates in a weakening economy mean for ev penetration in america and around the rest of the world. you know, there's been some downgrades, people have cut estimates, these are the car fundamental issues, and these are what investors will start to
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think about after this twitter overhang abates. liz: gary, there is another shareholder, leo coguan, whose the third largest tesla shareholder out there behind elon musk and the ceo of, remind me? larry ellison. so you know, one of the things that leo said was elon abandoned tesla and tesla has no working ceo, so to this point, don't you want to know where the board has been? i was looking at all the board members, a lot of venture capitolists, extraordinarily intelligent people, everyone from robin denhome, who worked at toyota and micro systems, venture capitalist, ira aaron price, james murdock, the son of rupert murdoch who runs this country but james is certainly a green energy supporter, and so on. joe gevia, one of the co-founder s of airbnb, they
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are largely silent and they have been letting all kinds of elon drama slip through the cracks over the years. is it time for the board to make a big noise of some sort? >> well, i know leo well. we talk frequently and as you say he's the third-largest holder and he's got influence because he owns so many shares right now. look, i believe that there's a reason elon tweeted this last night. i believe the board was probably putting pressure on him. there's folks who say well maybe he's trying to raise new money for twitter and outside investors are asking for a true ceo, somebody who comes from the social media space, something like a sheryl sandberg -type person but i do believe the board was putting pressure on him because look at the numbers. since he bought twitter back on october 27 since he took possession of it tesla is down 33%, nasdaq is flat, and the 10- year treasury has actually fallen and elon tweeted well it's the fed, it's macro. it's not if 10-year yields which
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drive equity valuations are actually down, so i believe the board was probably putting pressure on elon to do something , and i think last night's poll was probably the culmination of that. liz: and there is a pattern, al, of some customers pulling out of their orders for possibly reasons that involve, they don't like what they are seeing but let me throw this at you. the scarcity team yum is about to go away. hyundai is am coming out with three different ionic ev's next year. we know that mercedes and bmw and all these other companies are heavy and hitting hard with it. general motors, ford, at some point, elon will have to really face a serious issue. >> this is the question the fundamental question for next couple of years. you're absolutely right, and so the question is, can everyone sell all the ev's they can build? ev peter strzok in the u.s. is up about 100%, it's about 3% of new car sales to 6% of new car sales.
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if it goes to 10% of new car sales or 11% by 2025 everybody should be able to sell their ev 's and if it starts to slowdown for whatever reason, and then like you say, those mercedes benz vehicles, you know those are like $100,000 ev's. the market for $100,000 cars is very small. hyundai is a bigger deal. some of the general motors offerings are a bigger deal and i would love to see tesla to do a smaller, lower-priced ev for that segment of the market where most businesses transacted i think that be very positive for the stock and then let's not forget about cyber truck, so product line expansion in defend ing that market share in the u.s. very big deal but that's the fundamental issue for the next couple of years. can everybody sell all the ev's they can build. liz: gary, one last question and let's broaden it to people who don't own tesla and don't care about twitter. managers have to be extraordinarily cautious of their own behavior to protect a brand. do they not? what is the lesson that has to
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be learned from this? >> i don't know if there's a lesson. i just want to point outback to al that people have been saying competition is coming for years and competition hasn't dented tesla's growth. let's be clear. estimates for tesla has not really come down. they have come down about 3% in the last month, so from a fundamental standpoint, there's nothing changed at tesla. it's doing extraordinarily well. prices come down because there is a perception that competition is coming and there's a perception that twitter we'll call it fiasco, drama, has hurt the brand but we haven't seen any numbers yet that would say that's actually truement in terms of lesson learned, look, i don't know any board that would allow their ceo to basically try to go into another company and build the business from the ground up, and i think if there is a lesson learned the board probably should have stepped in earlier to say, you know, that's not going to be acceptable and what you didn't want was like a twitter situation where jack was basically told by the twitter board, you choose and he went to
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square. we don't want to lose elon and we want him to stay at tesla. he's the visionary, he's the driver, he inspires the troops, and you know, what we want is him to go back full time and stay at tesla and choose somebody that he trusts who has a vision like he does about twitter, to become ceo of twitter. liz: and he's good at it. he was so good at tesla and spacex. stick with that, and i keep checking, guys. he has not tweeted or retweet ed much if anything over the past several hours since that poll came out showing that he should step down. he said he would oblige by tax we're waiting to hear. great to have you, thank you so much. >> thanks. liz: with the holidays in full swing the "clayman countdown" has a gift for our investor audience. up next, we've got our floor show traders on stocks that will keep on giving. you won't be returning their picks anytime soon, they say. five year stocks, the closing bell ringing in 46 minutes the "clayman countdown" is
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coming right back. the dow off the lows of the session but still down about 288 points. (vo) the fully electric audi e-tron family is here. with models that fit any lifestyle. and innovative ways to make your e-tron your own. through elegant design and progressive technology. all the exhilaration, none of the compromise.
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liz: all right, five trading days left before christmas, and all through the house, not a cre ature was stirring, definitely not a bull. dow jones industrials down 277 on this monday, s&p lower by 47, the nasdaq getting clipped by 192. you want to really read the investor tea leaves though. look at treasury yields. they are hiking northward. friday, the 10-year yield closed at 3.48% look at it now. 3.583%. the two-year which is more
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sensitive to federal reserve policy had been at 4.18 on friday and now stands at 4.237%. propelled by the fed whose been extraordinarily clear, there will be no pivot or interest rate cuts next year. you've got to wait until 2024. bright spot, let's look at oil. remember crude got creamed thursday and friday, down a combined 5% in the after market right now it's up about one and one-third percent, year-to-date crude is up just half a percent but over five years, it's a pretty decent winner, okay? but the 29% gain, which got us thinking here at the "clayman countdown", how about asking our floor show traders not just for what are you picking right now but a holiday gift of sorts for you. five-year plan stocks, let's get to it with our traders john corpina and kenny polcari. we're talking about holiday, long holiday, as in hauliday, looking at five year charts of energy stocks today and i was stunned to see that n-phase an
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energy stock but it's green, it's solar equipment battery energy storage ev charging for residential customers has gone parabolic up 11, 716%, five years so john i'll start with you. there's so many stocks that had a brutal year or two but over five years look great. what are your five year stock plan names going forward? >> liz, always a pleasure. two names i'm looking at one a household name that's in front of us, one that's not so tangible that's behind the scene s first is amazon. trading back down 84, $85 close to 50% off the year highs, and amazon is a name that we all are very very familiar with and if you look back on a chart we're trading at levels where we were back in 2020 and what has amazon done, what kind of investments have they done in the last two years to help expand their company? one, mgm getting into the entertainment streaming business. second one, one medical getting into healthcare. another one, i-robot getting
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into household additional technology. think about what they can do in the next five years. i think this is an opportunity now to buy amazon and stay long for the future and the other name i'm looking at is nvidia. it's a name of the semiconductor chip stocks. they are in cell phones, gaming, cloud software, all over in different areas behind the scenes. where has technology gone in the last five years? it has gone straight up. look at the technology we've seen in our home computers in our cars and smart homes, where do you think that's in the next five years? continue on that trajectory and the chip business although that we've had issues in the past with supply chains, that business is going to increase tremendously and i think nvidia is another name that's well-off the highs we should be buying at this point. liz: and kenny, i know you've liked nvidia as a long-haul-i- day stock. why are you laughing? okay, santa. >> because corpina looked at my
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notes. liz: he stole your idea. okay i know you have more though >> i do, i do, and i have a couple, certainly ibm is a fan favorite, i love it, microsoft is one that you have to hold for five years but there's one that's really under-the-radar right? a nasdaq name. it's apcx, which is app tech technologies, it's a cloud- based payment system, fintech digital currency. it's a b2b business and it's going to change, continues to change the way we interact and how payment platforms not only between b2b but between consumer s and b2b. liz:apcx is the ticker right? >> apcx. liz: up. there you go it's right there on the screen an $0.85 stock are you kidding me what are we talking about this for? >> that's right because its got huge upside, so just run with me on this one. liz: corpina what am i supposed to say to that? i'll run to you, john, and ask
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you about the psychology right now with the markets as we head toward the christmas obviously, monday, right? and hanukkah today, no gifts for stock investors who are long the markets. any chance of a santa claus rally, do you think? >> liz i don't think we'll see it. the fear has been sitting on top of this market. we were hoping last week to get to make economic data and news out of the fed that was going to help add a little bit of bump to this but at this point right now, we are not seeing it. i know we talk about santa claus rallies for this year, that's a thing of the past. i think what investors are just waiting to get through the end of the year and the first few weeks of the season hopefully we get economic data that might help us but i think we've got a long-haul in front of us until we start to see an upward trend. liz: john and kenny, thank you and kenny, you get the santa beard looked to. i am loving it. so thank you. good to see you both. folks, aside from kenny's genius , this is why you need to
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watch the "clayman countdown." billionaire investor mario gabel li made a stunning prediction on this show last week about one hypersonic missile maker's future value as russia's war on ukraine rages and today, the famed wall street investor's thesis has come true. we'll tell you what super mario predicted and what's happening with the company when we come back and it's big news. closing bell 36 minutes away and yes red on the screen. we will come right back with so much more, charlie gasparino as well.
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liz: oy to the word, get it? austin won't even laugh. i've got a courtesy laugh from him. okay yeah on this first night of hanukkah look at the atherosclerosis map folks we added two more times names to the green, jpmorgan chase, travelers, walgreens boots alliance, boeing and chevron joining the party. these are tiny little gains but we'll take them. it's really interesting to see that earlier today, half of these names were in the green and then we lost a lot of that, so as we watch it, disney, the laggard, we'll talk about that with rich gelfont of imax, nike and a lot more. last week here on "countdown" billionaire mario gabelli, top investor, told us about a defense, listen to what he said. >> the companies we like that is very good and hypersonics is
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aerojet general. the stock is 54, there's 80 million shares out a couple hundred million of cash, and land in sacramento very valuable and lockheed tried to buy it and it was turned down by the government. liz: where lockheed failed, defense contractor l 3 harris has succeeded. l 3 has announced the purchase of aerojet in a deal valued at $4.7 billion or 58 bucks a share. aerojet right now is at $55.69. mario's thesis was that russia's use of deadly hypersonic missile s against ukraine would make aerojet more valuable to western nations. you've got l 3 down about 3.6%. warner music is singing a happy rocking tune after atlantic equities upgraded the stock from neutral to overweight. so decent jump there. the stock is up 1.5% right now the brokerage firm believes warner will be able to see growth in its streaming platforms. morgan stanley also showing faith in the music publisher
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raising its price target from 38 to 41 and it's at 34 and change right now. not a great picture for cruise line stocks now dead in the water at this hour even after royal caribbean said it struck a deal with icon infrastructure to develop and own cruise ports around the world. this will allow the cruise operator a path to invest in its ports while limiting its capital requirements. under terms of the deal, 90% will be owned by the icon fund, 10% by royal caribbean, not helping the stock, it's down 3.8 %. carnival came out with its earnings report, it comes out with its earnings report after the bell today, analysts are estimating a loss this time of $ 0.87 a share so carnival is down 4% and norwegian cruise lines getting pulled down into the deeper waters by about 4.5%. goldman sachs with let's call it half a touch at this hour with two of its top picks for 2023 analyst brian lee has chosen first solar and solar edge technologies. he says both companies can add
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to this year's gains so he rated both a buy, solar stocks did outperform in the second half of 2022 following the passage of the inflation reduction act, despite goldman's thumbs up only first solar is seeing sun, while solar edge technologies is in the shade down about 3.6%. speaking of shade as the hollywood trades throw a bit of shade at disney's holiday blockbuster, avatar: the way of the water for missing weekend box office projections folks there is still a very unique way this time that the james cameron directed film can become a ticket-selling tsunami. we're about to get the scoop on how that might happen from the big screen imax ceo rich gel font. first on fox business his take post-avatar's global release and we'll get from rich the opening weekend performance in china. closing bell 27 minutes away. the dow down 243 points at the moment, 32, 680.
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-hey there. -hey. -hi. hey there. how are you? i'm with disabled american veterans. i was wondering if you had a quick minute to thank america's veterans for their service and sacrifices -of course, why not? -oh, sure. -absolutely. -sure. all right. well, come on in here. i'm just going to hit record on this. i would like to thank you from the bottom of my heart. i can't even think of the words of how grateful i am. i want to tell you guys how much, how much we appreciate. but most importantly, i want to thank you for your courage and bravery. wow. thank you. someone here who'd like to say something to you? oh god, you guys are awesome! someone has something they want to say to you. oh my goodness! how's it going? awe! so i will let you know how much appreciate it. how much we appreciate it! just feel honored, for everything you've done. thank you for myself, thank you for everybody.
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i get to live every day, you know, in peace because of yo a lot of people thank us, but we want to take the time to thank you honestly, for giving back. and when you gave to dav, you are supporting veterans like dave and myself. so thank you so much. thank you, you guys are amazing. thank you. thank you. you can say thank you to our nation's heroes, by calling the number on your screen right now, and giving your monthly support of only $19. say thank you by going to helpdav.org right now, and give just $19 a month. when you do, we will give you this dav blanket as a thank you and a reminder that you support those who served please call or go online to helpdav.org right now. your support says thank you to our nation's disabled american veterans
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...security... ...protection? you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit goldhub.com. liz: more than a decade after the original film avatar, well, the new one, the way of water, the highly-anticipated avatar sequal hit theaters this weekend , but not with the tidal wave of theatre goers many expected. the film hauled in about $134 million at north american theaters over its first three days. industry analysts had estimated 175 million, but i need you to hear this. the disney film earned more than 48 million in imax theaters around the world making it the second-biggest imax opening ever behind avengers end game. while the original avatar is still the highest grossing imax film of all-time there is a
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chance for way of water to dog paddle and then turn it into the butterfly stroke. according to colscore, and here is why, 41% of kindergarten through 12th grade students and 77% of college students begin their official holiday break today. essentially, making everyday through new years eve like a saturday at the box office. will back-loading those ticket sales, when it comes to the avatar sequal, be a surprise top grocer after all. joining me in studio for his first interview since the weekend box office numbers came out, imax ceo rich gelmond. rich, huge for imax certainly. what are the latest numbers any changes to what you have at your box office? >> no our box office came in as we expected but i agree with your sentiment, liz. i think this is going to be a huge blockbuster. i think you can't analyze it over a weekend. none of james cameron movies are big drops. every one of them, avatar, the
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titanic movie, titanic's big day was february 14, valentine's day which was two months after it had originally opened. avatar 1 had its biggest day in february, again, six weeks or two months after it opened, so anybody whose looking at this as a one weekend thing is really mismanaging it badly and i will tell you for next weekend, our pre-sales are already ahead of "top gun", which, you know, did 1.5 billion over its run. liz: is that new? you're looking at this right now and that's what you see? >> i just got a call 10 minutes ago saying that. liz: wow that's exciting for you , certainly. >> well i'm pretty mellow about this , liz. liz: you've seen this before, right? >> i've seen this movie before and it was called avatar, and the first weekend of avatar did $77 million, and then it went up from there. liz: well, you still, in a way, you, the collective you, meaning the trades and everybody else,
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could drive a truck through the expectation of 175 million, which by the way, you know i'm from l.a. i've dealt with this before. that's a wisper number from the movie companies, so disney may have started chattering saying expect about 170 million. maybe they should have backed off from that, because the number itself that we have today is not bad, right? but by comparison it looks like a big miss. >> yeah there's a whole art that thankfully i'm not involved in, and how you release a movie and what the number is, but i think the best way to do it is to underestimate and then over perform. liz: always. >> so however it got out there and i have no idea how it got out there, it got ahead of itself but how could you say at $435 million global opening is anything but a big success. it's an inside baseball game that will be proven false in the next couple weeks. liz: we'll be proven false. you sound very confident about that. i'd say that's a headline.
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i want to go back to this issue of schools out. a lot of college kids literally came home yesterday. we also have some numbers from c omscore, and as you look at them you realize yeah sure k- 12 a lot are on holiday today but by this friday a bigger chunk. >> yeah, 63% of schools are out by friday, and i mean, imax did 27% of the box office in china. we did 23% of the box office in japan. people really want to see this movie in an imax theatre so of course for jim cameron, made a masterpiece for disney, i want to see this thing do wonderfully well but at imax i already know it's going to do well because i can see the pre-sales and i see the numbers. liz: 800 screens in china. can you give us some clarity on the china numbers up to the minute as best you can? >> so three weeks ago, they didn't know or a month whether it was going to get in or not. check, got it.
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next thing they didn't know, whether the people would have to get covid tests to go see the movie. a week ago china gets rid of that. check. a couple weeks ago, people didn't know, will people ever come back to see blockbusters again? check, yes, they did, and then, the question was because of covid and how it's spreading, will they go? it was our fourth biggest opening ever in china, so again, i'm very encouraged and i think covid is going to blow through fairly quickly because as you know, it's like it is in the rest of the world. it's not generally not hospitalization and that serious so i think people by the government were very afraid during the lockdowns. liz: oh, sure. >> it's hard to turn that on a dime but as i think people get covid and it's not a big deal, and the word gets out, i think you're going to see it have particularly good legs in china. liz: we've got the vaccination and heard immunity. i'm thinking in my mind, tom
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cruise, mission impossible. he has, not that his career was down or anything like that but talk about more of a revitalization from "top gun" maverick, now he's coming out with mission impossible but there's also guardians of the galaxy and another ant man film. what are you looking at as a real possible number one? >> number one, liz, that's like asking the choice, you don't choose between your children. there's a lot fast and furious is coming out, three marvel movies, oppenheimer, chris nolan 's movie but tom made a special trailer just for imax about mission impossible 7 and it's how they made this crazy motorcycle stunt where he jumps off cliffs in norway so i'm very excited about it. liz: you're going to jump off a cliff in norway? >> not a chance. liz: rich it's great to see you hop happy holidays. rich gelfond, imax, good numbers coming up into the second weekend here, better than "top
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gun" maverick. >> pre-sales. liz: speaking of movies amc entertainment selling some of its amc preferred equity units the stock is hitting another 52 week low. what does that mean for bond holders? charlie is going to break it next, stay tuned we're coming right back. if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this. oh, you brought your luggage to the airport. that's adorable. with shipgo shipping your luggage before you fly you'll never have to wait around here again.
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♪. liz: so we were just talking about "avatar" the way of the water. dismiss is a mess today, that is the company that put it out. shares of amc are falling this hour despite the movie chain announcing plans to pay off debt through sale of a preferred equity shares. charlie gasparino is with the story. get to the story. >> adam aron has the interesting story for 2023. the stock is down during the meme stock days. liz: of course. >> this thing traded intraday as high as $74 a share. if you combine the april, which is preferred, amc common, it is trading just above five dollars, just above penny stock level. five dollars is considered a penny stock. adam aron has an interesting
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plan. you have to give the guy credit for being the most resourceful ceo that i've seen in a long time. liz: especially under these circumstances covid, et cetera. >> under these circumstances. covid shut him down. he already had problems because of streaming. he has a lot of debt on the balance sheet because of everything we're talking about. he has to try to survive in this environment. here is what i think he is going to do. i think it is pretty clear he does nothing, say he does nothing, he did something today, by the way they're selling apes, if he didn't follow the the cinaworld into -- the box office is way below 2017 levels, if you go back, 18 at least. so what he is doing. he is going to do three things. he will continue to dilute shareholders unfortunately, that saves the company going into
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bankruptcy. he issues more ape. definitely pays down debt with a lot of debt. then at some point looks for a transformational move. i'm getting this from people that spoke with him. i don't know exactly what that means. as you know has this gold mine investment which obviously isn't doing well. highcroft, can we throw a chart on there don't want to mispronounce it, talking about penny stocks, trading 45 cents on the dollar here, not doing very well. so he is looking to take another transformational move from what i gather. what that is, i can't tell you. clearly he will expand, buy more theaters if he can. liz: rolling out the credit card. >> do something like that. not quite trans formational. liz: popcorn. >> interesting, not transformational. liz: throwing every he has got. >> he will do something bigger. that is what he is suggesting to people from what i understand, okay? he is a resourceful guy.
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we'll see where it goes. what does this mean? if you're a bondholder this is generally good, if you're a bondholder. the bonds are trading at a steep discount ought bankruptcy levels. if you have the ape which is currency, you can essentially, he is selling stock, essentially to pay down the debt and pay off the bond-holders and pay off the interest. is this good for a shareholder? you got to say, just, common sense basic investing i don't tell people what to do, if you're being diluted heavily, that's generally not good for share price, okay? so, remember that. that doesn't mean if the company survives it's not good for the share price because it is good for the share price. you're betting into the future. as he would put it, he calls this good dilution which the truth is, it is good dilution is not good in the beginning because it dilutes your value. so that's where we are with this
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company. i don't think it will go -- listen what do i know? seems like he can issue the ape, pay down the debt they will avoid chapter 11. that is what it seems like, if you look at paper, do subtracting, how fast they're burning through cash, it looks like, and if movies come back to, we get a blip in the movie attendance, box office, right? not going back to the pre-pandemic levels but just higher he is going, he can pay down debt not burn through as much cash but is that food for the stock? -- good for the stock? dilution is generally not good at least for the short term. liz: they have some imax screens and "avatar," rich gel -- gelfond, better than the same period of time for "maverick." this. >> this is one of the issues adam is fast. big movies, people will go.
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the constant, people don't want to go to the movies as much as they used to. that is an issue he has to deal with. liz: charlie, five minutes to go. quick update, the stock kenny polcari just mentioned earlier in the hour, pretty close to the top of the show. call it the polcari effect, aptech payments. was a few pennies before he mentioned it. this is the ticker symbol aptx. temporarily halted as kenny recommended the stock as five-year pick. we talked about stocks if you pick it now in five years it should do very well. this is company where he said look, mobile payments, technological payments are the way of the future. right now it is up 56% intraday. -- app tech. everyone love as good cinderella story, right? fans in buenos aires erupted
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after argentina won the fif cup beating france. lionel messi led with two goals. giving argentina the first world cup in four decades. this is "a cinderella story" because messi has not won a world cup without the dress on messi. bring in cinderella picks. were you picking argentina? what are your other cinderalla picks? >> after years of seeing argentina get burned it was a great story. i hadn't predicted they would win. hopefully my stock picks do a little better than that we're value investors. we definitely look for names out of favor, things like, one thing stands out would be something like a stanley black & decker. that one is badly out of favor but you're getting it at about
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30% discount to its peer group. you have dividend yield they have raised 12% over the past year. it's a name really misunderstood. it thames to be lumped in with industrials. it is more after consumer brands companies. they have names obviously like stanley and black & decker. dewalt tools are heavily favored by professionals. the exciting parts of the story, a little while back they acquired the craftsman brand from sears. one of the top names. they revitalized that brand taking it to a whole new raft of distribution points. it has been out of favor. there are a long term secular trends favor some of these power tools. the housing stock in the united states is as old as it has been in decades. you have millenials starting household formation. some trends like move to electrification of battery powered portable tools driving these names. liz: all i want for hanukkah is
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a chainsaw. i actually look at black & decker, they own the tool space. it is very, very impressive. when you throw out the term, say a lot of names are beaten down, say how much crown castle down 35% year-to-date. sanly black & decker lost 60% year-to-date. backser, 42% year-to-date. we're how will these companies do in a rising rate environment? >> one of the things that one should really look for in a rising rate environment, what's the best way to keep up with you know, with rising interest rates and inflation? that is rising dividends. you have a lot of companies that have the ability to raise dividends at even faster pace than inflation. these are not fixed income instruments that does make a case for dividend payers. likewise when dividends rise, in terms of bonds par lens i higher growth equities where companies pay a dividend today might be
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thought of shorter duration and might hold up better. names like baxter has a dividend yield shorter than the market. is a rite owns a lot of sell towers. they have. liz: nice. >> cell towers is pick and shove he develop play for rising digital demand and 5g raising margins. liz: thank you very very much, burns. [closing bell rings] investors still worried about rising rates and recession risks that will do it for us. "kudlow" is next. ♪. larry: hello folks, welcome to "kudlow." i'm larry kudlow. so newt gingrich calls them blackmailers. "wall street journal" editorial page today calls them masochists an
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