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i hated it all, and then when it got to 13 and ackman sold, i thought it could have a turn and i said buy it and then they did that equity offering and i don't want to touch it. so i think if the stock lifts at all you have to sell sell sell. let's go to jake in new york. jake? >> caller: hey, jim, big booyah from here in new york. >> nice. go ahead. >> caller: my stock is exo. eox, i'm sorry. >> huh? oh, emerald is okay. pioneer coming down, i'm more intrigued by pioneer. i think that actually may be cheaper. i need to go to ben in illinois. ben? >> caller: booyah, jim. thanks for taking my call. i love what you do for us home gamer. i'm calling about ew. i know it's a competitive state. >> yeah, that's the problem. in fact, they have great science. they do have great science absolutely. but you know what? i mean, i'm sitting here with and i think that's a better

charlie: bill ackman believes herbalife is going to zero.yramid scheme or you run out of distributors because nobody likes the product. a barely 4%. it went down right on our report. liz: you just got off the phone with a few people. charlie: coming out at the robin hood conference. they tout their calls and raise money for charity. we understand he is tweaking his presentation. it will be on herbalife, but he will come out with eyewitness testimonials, this is what they fear at herbalife, this will be disgruntled employees were disgruntled distributors basically trying to backup his claim that this is a pyramid scheme. you have a company with distributors and the distributors pay the company money. when the distributors cannot sell the product anymore the distributors believe in the company implodes. that is essentially what he is saying. they don't sell enough of this to justify the valuation. liz: the company has been in existence for decades and decades. charlie: and making money. they had that incident they got caught for insider tradin

shares up year to date, but bill ackman is not back down against the nutrition company. fox business correspondent charlie gasparino has details next. look at the winners and losers on the dial, up of 14 points now. ♪ ♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. but with less energy, moodiness, and a low sex drive,y first. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron.

ackman is famous for his unsuccessful shakeup at jc penney. and has been waging a public debate with fellow activist investor carl icahn over the viability of herbalife. ackman labels the nutrition supplment company a pyramid scheme, which the company denies. traders are well aware of the importance of staying ahead of the curve -- scott bauer of trading advantage joins us with ideas on buying and selling retail stock ahead of black firday. good morning scott. > > good morning angie. > > we have an unusual situation here. we have thanksgiving and hanukkah happening at the same time. how will that affect trading? > > you know this is the first time ever and it's not going to happen again and i do think we are going to lose retail sales in that first week or so after thanksgiving when all the black friday sales come out unless some of these retailers-- which i think may happen-- may actually-- a week ahead of thanksgiving -- come out with some early bird specials let's say because that's a significant part of the market of people shopping for ha

i think what you're seeing here is just a post ackman rally.n bill ackman got out of the company, i think that made a lot of people optimistic. not because they think it's sustainable but in the short term it lifts a huge weight off the company's shoulder. >> the stock went down almost every single day after ackman sold his shares. i don't understand -- don't understand that. there was a few in the marketplace as if ackman may have gotten out at the top. >> okay. there is that. there were a couple of heavy hitters that did get into the stock recently. soros management got in. heyman capital got in. a few others got in. that combined with -- everybody these days is fading bill ackman, so that looked like a short-term bullish opportunity there. but looking at the biggest picture, it's an absolute disaster. same store sales growth -- or decline, i should say, are down about 5% the most recent quarter. you're coming off declines of 30% from the comps. yes, it's shrinking at lower rates but this is absolutely a train to oblivion. it's just a matter,

we should point out ackman is not going away friday quietly.s out at the robin hood conference. will came out with whistle-blower complaints and herb a lives international problems. they don't have this overseas, they're not the juggernaut overseas they proclaim to be. we'll see what he says. i will say this. if the whistle-blower complaints were that serious they would be shutting it down. he wouldn't be talking it. adam: especially this administration. >> the ftc and they are not going to shut it down. why won't they shut it down? they produce a product. they employ people. until the whole thing implode they will not get involved. so ackman in many ways whether he is right or not, i'm not saying he is right or wrong he is, he has got an issue here. they're not going to shut it down. if they don't shut it down and keep the business model going for another three years, this stock is going up. he's done. >> charlie, thank you. >> just using common sense here. anyway tomask. spirits. speculation, they have not confirmed it yet. lori: thanks, char

that trade is definitely not going ackman's way up until now. we'll see if anything changes that. >> thanks. the stock guys, have been hanging out in the upper 60s for a couple of months minimum. people are wonder what ackman has up his sleeve, he's got another presentation coming. >> i wouldn't be too worried. after the first presentation, trade down and the stock received double. >> fair. the stock got creamed. the day that he -- >> he traded down. >> it took a while. >> he was the only visible voice on it at the time. then you came out with others that have a stronger voice and multiple people. to me, a story, he may be right ultimately. right now it's an old trade, people don't want to be in a post icahn trade we saw what happened to netflix. i don't think it's coincidental, traded down. >> did the retail investor buy or sell major stocks in october? should you follow suit. nicole sherrod is here on set revealing that answer and more. >>> coming up in "power lunch," top of the hour, u.s. attorney preet bharara holding a major news conference

investor bill ackman is betting big on fannie mae and freddie mac. ackman's hedge fund pershing square is taking a nearly 10 percent stake in each of the mortgage finance giants.he is the latest investor to buy into the companies.pershing wants to discuss capital and business plans, after another offer this week by fairholme capital management. bruce berkowitz, fairholme's founder, wants to buy parts of the companies from the government and recapitalize them in a 52-billion dollar deal. moody's credit ratings agency is downgrading major banks. the agency says its because new rules under dodd frank make it less likely the banks will fail and the government will swoop in with a bailout. moody's lowered debt ratings by a notch to jp mrgan chase, goldman sachs, morgan stanley, and bank of new york mellon. moody's confirmed ratings for citigroup, bank of america, state street and wells fargo. moodys says all 8 banks are rated as investment grade and have a stable outlook. president obama is calling on his supporters today. following a rocky start to the m

so my fiduciary duty is to my investors, not bill ackman.created whereby we thought that the selloff in herbalife was overdone. i spent my christmas vacation last year analyzing and studying the company, on calls with lawyers, doing all kinds of due diligence and research. i even flew up from mexico where we were to meet with the ceo of the company. it was my assessment, along with my analyst team, that the accusations were, in our opinion, unfounded. >> and the accusation on bill ackman's side being this was a ponzi scheme -- a pyramid scheme rather and it's going to go to zero. >> and bill did a lot of work and i'm sure he believes in his heart of hearts this is the case. we had a different opinion about the stock. this was not a public letter. we wrote a letter to our investors as we often do about our recent investments. we thought this was an interesting one. we started acquiring share around 28. we said in our letter that we had a price target of 55 to 70. by the way, the stock today is around 62, $63, so right in the sweet spot of our

scott, ackman has lost millions on this bet. this is a serious and risky bet.s? when do you know an investment has gone bad and you need to say, uncle, i'm out of this? >> bill is a very smart guy. let's put that on the table. i'm sure he's done extensive analysis and come up with a conclusion. i think when you move from a situation that has some trouble in terms of where it's being marketed at any point in time back to your analysis i want to make sure that the analysis still gives you the confidence you'll end up in the right place at the right time. i don't think he's doing this just to be stubborn. i think he must have analysis right or wrong, but again from a smart guy that says i think i'm going to win on this one at the end. >> he has conviction. he says he'll never give up this fight. >> well, again, hard to comment on -- >> on somebody else's investment. >> understood understood. let's talk about what you invest in. you invest in companies, you know the boards, the management. you get in there. >> right. >> to really understand the company. what's your

there is political risk here. >> this is also ackman, in some respects, getting into his wheelhouse, right? real estate has been that for him, general growth properties, need i say anything more than ggp? ? mbia, another huge winner, too. >> yeah, i suspect they know something politically, where perhaps they will keep the agencies in place longer than people expect, despite the rhetoric you're hearing in washington. >> all right. >> an interesting trade. >> yeah, certainly. and so is japan, continues to be a hedge fund fave, with the nikkei headed for the biggest gain since 1972. will one of the best trades of 2013 work next year? paul richards is head at fsx at ubs. is the trade going to continue to work? >> definitely. it's about to go into a whole new leg, actually. it finally got through parity at 100. that's really important to stock watchers, because the correlation to the nikkei is very real. >> why do you call it a perfect storm for dollar-yen? >> because, for the dollar-yen to go higher, the u.s. dollar to go higher and yen to weaken. you need a dichotomy between the two cen

so ackman went on stage, presented on herbalife. the stoikz up. up 5% right now, perhaps a little bit of the market saying, okay, that's the best you got? we're waiting for it. that's what we had from you. that's what the stock is doing. we were able to speak with a couple hedge fund managers you don't hear from all that often, alex sasserdote of whale rock with us, made his top pick today, soft bank was interesting, because dan loeb was in that ballroom down the hallway yesterday and said he has a stake in soft bank. mr. sasserdotes it for the alibaba play and mentioned amazon, he's a tech investor and said it's because of the cloud play. listen to what he had to say about amzn. >> amazon has the best management team in the world and any time they start to make profits, bezos has been able to find amazing new businesses to invest in. you have to peel back the onion to see what the core u.s. e-commerce business is earning. we think they're losing a huge amount in china depressing profits which makes the pe look high. >> he's up 41% this year, net

bill ackman, hear what he has to say.ction from another high profile billionaire investor, coming up next. >>> now, never once to mince words, carl icahn has been weighing in on a range of topics. let's get more. seema mody is with us in the stadz. a big reaction to mr. icahn. absolutely. icahn says there's a chance the markets could suffer a big drop. he made the comment at the reuters global investor outlook summit on monday. icahn says corporate earnings are being fueled more by low effort costs and he says stock buyback res driving numbers, not profitability. that unnerved investors to the s&p 500 which had been trading flat since icahn spoke within down by 4%. later on on his website, icahn said he's concerned about market levels, it's almost to predict in the short-term. at times like this, he hedges his investments to some extent. taking short-term moves in the market is like predicting how many sevens the hot dice player will continue to roll. icahn dropped some hints about his plans for apple. he says he doesn't

herbalife, even comments from dan loeb regarding herbalife and bill ackman a bit. >> we did. he talked in some detail, actually. andrew asked him, was it personal? was he going long herbalife, because he was trying to cause pain to bill ackman, who is reported to be sort of a frenemy, if not an out-right enemy, he said, look, nothing personal. he did some due diligence. he took time from a winter holiday and came from mexico to meet with company management last winter. he is bullish. he doesn't think it's a pyramid scheme. he had a price target of 55 to $70. and he said usually they go out a year, but in this case, the stock made good money, so they got out of it in the february, march area. you reported that at the time. so you remember that. >> i do. >> but he basically said, look, no pump-and-dump here. this was a good, old-fashioned investment idea. >> he addressed comments by george clooney, as well. people are waiting to hear, if anything, he would say about that. remember, it was clooney who sort of, you know, verbally attacked loeb after the sony letters were written

ackman now again it's the common. just bought it if he's saying it's in response to the plan. the plan was just announced yesterday. >> let me just ask this question because fannie and freddie is such an important and central issue to the u.s. economy. is this really about the future of fannie and freddie? is this about a trade? you can make money real quick in some of these preferreds. >> the preferreds are up five fold. a lot of hedge funds in the preferred are already thinking about exiting. from mr. berkowitz's point of view, he's got to stay in if he's going to have any credibility in this potential plan. we were skeptical in questioning him yesterday but he's trying to get something going. if it were warren buffett that came with that plan, it would be taken differently, don't you think? >> the senate would say we've got the blessing of the best investors, let turn it over to him and let's do it. >> if it was buffett, not berkowitz, change the name. you'd get more traction. >> there's nothing wrong with that bec

we wait for bill ackman to renew his attack on herbalife today.

we wait for bill ackman to renew his attack on herbalife today. then europe's hanging in there as well, german business sentiment at an 18-month high. our road map begins with the market. more history as the dow closes above 16k. is the world getting ready for the santa rally? >> gap shares falling on news on its quarterly results as we're one week from black friday. >> and pandora shares fall on earnings while spotify could be worth $4 billion. >> people are beginning to pay attention to the percentage of investment people have in stocks, getting close to the levels we had in 2007. >> we can always look back and pick a time where it seems that was the top. imagi margin debt is an important indicator for the top. >> what i like about the companies, they are levered to asia and europe. how many times does jamie dimon say we need rates higher. and now you're seeing the move to the financials and goldman sachs is in the financials, too. >> what may be good for the financials may not be good for the rest of the market, if it includes a taper/tightenin

if ackman can convince them it is a fraud maybe he can get the business shut down, and he wins.ompany gets 80% of sales from overseas. if they miss the numbers he could win. not going to zero with that. if it gets a clean bill of health the bulls make a killing. same thing in green mountain coffee. it's been brought to my attention by herb greenberg. the bulls insist that green mountain's business is growing and the bears say it is a step from the grave. the fundamentals seem to have turned dramatically in favor for the better. green mountain announced a billion dollar buy back and a decent dividend. like hain the bears say the earnings were low quality while the dividend and buyback masked weakness. for the life of me i don't know how that could be the case. but the case is being made that the beauty is only skin deep. i took heat when i said on "squawk on the street" that what should matter is that green mountain's main product, the keurig model is coming on well. and it is a sign of health. little did i know, according to bears, these are signs of ill health. they say, jim, d

bill ackman only holds 2.1 million shares but down from nearly 9 million shares in the second quarterer the radar pick. china's radio service youtube video. >> if you go to yoku it looks like youtube by the way. company reported earnings of 21 cents beating estimates. revenue didn't beat as much. still stock doing well. they added about 12% advertising customers quarter over quarter. bank of america, merrill lynch downgrading and cut their price by 50 cents. the stock up. yoku is the adr ticker. >> fedex, right, speaking of older companies is a new darling of certain hedge fund managers like george soros, daniel loeb, john paulson who have bought fedex shares as of late. the company would courtney regan adding a sunday delivery. take a listen. >> well if the consumer wants ecommerce items delivered on sunday, fedex with our broad portfolio of services in that space is uniquely situated to do it and well be looking at that carefully. >> so if it happens does it make fedex a buy. is it a buy now? jim, first to you on the fundamentals. you rate fedex a buy. does this sunday thesis have a

at the table here, and i think that there were some rumors going around earlier in the summer that ackmanoing to invest. there was a pop in the stock. all these other hedge funds said, hey, looks like there's some sensitivity here, so they all jumped in. they're trying to play the activist story here. now, the strange thing is that there's really not a lot for an activist to do. fedex is already doing share e liebacks. they're already changing their operations. the only potential thing you could do here is remove the ceo. i'll tell ul what, mr. smith is a former marine and not going down easy. >> he's a tough cookie. >> the stock is up 6% in 12 months, up 30% in the last three months. what are we getting active about? do you agree this is about an activist situation? >> well, this goes back to what we were talking about earlier. i gave keynote speech at walkers global conference and i sat down with a senior veteran there that's been in the business for a long time. says it's the greatest pressure he's seen on style drift. in other words, people are just piling into trades, trying to get a

so, in jcpenney, for instance, when bill ackman stepped off the board, he had inside information andldn't actually sell his shares for a period of time. the company didn't want to buy them back from him and then he turned around just weeks later and dumped it all. >> in an underwritten deal. >> that's true. >> why are they dealing these deals? let me tell you something, i think this is -- it hit a point and activist investors viewed by many investors as heroes, and they are, and i'm a big fan, turn around and not be viewed the same way because of these special deals. you watch. they're begging for new rules to be written. i suspect something will come out of this. >> it's an important discussion. herb, thanks very much. appreciate your input on this one as well. stick around, because it may be a path to prosperity for some states but also could be a road to ruin for others. coming up, new jersey giving the go ahead to online casino gaming. it will be controversial for sure. the head of an internet gaming company weighs in. >>> alan krueger, former head of president obama council of e

bill ackman is down $500 million on his herbalife short position. he's not down yet. we'll ask a top investor when you need to say enough is enough and admit you were wrong. >>> in the markets, let's take a look at wherer with we stand. the dow jones industrial average up 0.25%. we have been trending higher. sitting around the highs of the day. nasdaq composite showing gains. technology doing well with the nasdaq up 20 points. at 3990. the s&p 500 looks like this. gain on the session of 7.5 on the standard & poor's. joining us on "closing bell exchange," ann, michael yoshikami, rich peterson, and mike tepper from strategic wealth partners. hi, everybody. good to have you on the program. thanks for joining us. >> thanks marks . >> market at all time highs even though the whole idea of new tapering has entered the conversation. would you put new money to work here? >> i think the market is pretty fairly valued. we have -- we say upside of 10% over the next 12 months. doesn't mean necessarily it's going to get there. i do think there are still some values and we're findi

liz: bill ackman takeing a 10:00% stake in mortgage giant fannie mae and freddie mac through his firm pershing square capital management. david: men's wearhouse got a nice pop in a today's trading after rival joseph a. bank dropped its bid for the retailer. men's warehouse rejected the offer in october calling it opportunistic and inadequate. happy friday, everybody. "after the bell" starts right now. liz: this is so cool. we've got six weeks of gains for the bulls. we love our bears too though. let's break down today's action with bob doll, nuveen asset management equity strategist. we have four stocks, four stockr portfolio. for our viewers i can't afford to miss. teddy weisberg from the new york stock exchange. we want to bring in larry shover from the pits of the cme. all three of you what a day we have capping off quite a robust six weeks. we'll start with larry at the cme. what really drove this trade when you could say the import export numbers weren't so great and there was data that was a little noisy? >> that's a great question. there is so much negativity. some people still

ackman.ny waiting for its audit because of that strange insider trading thing that happened to them. they're waiting for the audit. and then there is speculation once they get that audit, they will move ahead with some sort of significant financing to fund a large recapitalization. we shall see. that's the story that's been out there but mr. stiritz's presence can't be overlooked. >> you look what he did in the go-go years, purina mills goes to bp. the guy is a wheeler dealer and he's a money maker. this guy if he's in there, you change your mind about worth. this guy is not icahn. this is not dan loeb buying it and staying for the long term and flipping it. stiritz is one of the great operators. i don't know what he's got cooking here burr it's not idle. >> it's always worth mentioning. that was an important change from a g to a d, going up in his stake. there is speculation again that mr. ackman will in another investment presentation at the end of this week come after herbalife again. >> i

shares up year to date, but bill ackman is not back down against the nutrition company.ess correspondent charlie gasparino has details next. look at the winners and losers on the dial, up of 14 points now. ♪ ♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. but with less energy, moodiness, and a low sex drive,y first. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to rmal in about 2 weeks in most men.iron. axiron is not for use in women or anyone younger than8 or men with prostate or breast caer. and children should avoido are contact where axiron is applied as unexpected signs of puber in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medication serious side effects could include increased risk decreased sperm count; ankl

you have bill ackman, who has been very obvious with his, very forthright with his short position on be troubled about this company. he has been calling herbalife a pyramid scheme. herbalife repeatedly denied it does exactly that. feels it has been the target. so you are watching herbalife today. they have been sneaking back. four .25% to the upside. up 116%. back to you. ashley: nicole, thank you very much. as we said at the top of the show, how annoying would be in? the fcc is proposing cell phone conversations being allowed on planes. please tweet us. you already have. your responses will be at the bottom of the screen. cheryl: joining us with her take, department of transportation, mary schiavo. you think the airlines are so good at this would find a way to generate revenue off such of a proposal? >> absolutely. the airlines will generate revenue from both sides of the equation. they will have a quiet zone as they already do on some airlines. you can pay extra to get a seat in the quiet part of the plane. that airline is banning children. there will be a section of the plane for

hedge fund activist bill ackman's pershing square capital is acquiring stakes of 10% in both governmentfannie mae and freddie mac. both companies reporting strong third quarter earnings. the new american airlines will trade on the nasdaq after the merger of us airways and amr's american is completed, the new ticker symbol will be aal. us airways trades on the new york stock exchange and before amr filed for bankruptcy protection it was on the big board too. >>> u.s. import prices declining in october, down .7 of 1%, duper drop than expected. u.s. export prices fellas month, half of 1% despite forecasts for a small rise. that is the latest from the fox business network, giving you the power to prosper. adam: more break breaking news. we have the official tally on the house approval. let's go right to rich edson in washington. >> 261-157, adam, more than votes to get through the house of representatives. the number we're looking at of 200 how democrats how many would join republicans to vote for the proposal. 39 of 200 democrats voting with republicans to send it to the senate where indic

ackman slashed his stake in procter & gamble.last year and successfully pushed for change with p&g ousting the ceo bob donald. fedex, activision blizzard both up. nokia down. my director is teasing me for saying blizzard. >>> still to come on the show, brazil has weathered the storm in emerging markets better than most, but is the outlook set to be better than rival mexico? we'll compare their growth stories and the investment opportunities when we come back. as we do so, you can see right now on the european equities, it's a pretty even steven session. advancers just about outpacing decliners on the dow jones stoxx 600. textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before inv

. >> we stand up to ackman and icahn and these people stand up to tyrants and their families go to jail's the way it goes in other countries. >> we don't do that. anything in retail we should be looking at? >> container store starts with buys. remember vince the other day? there is just an allure to spending. if there is a way to show excess spending and if there's a way to be frugal. this is the weirdest bar bell. peep want to go to macy's and buy kors and twomey, when they're not doing that, they're at costco stuffing their car with toilet paper. it's good to save money but then they get out and spend a lot of money on hard goods with value. >> japan we talked about for many years have had an important presence but it's beyond that at this point. seems to be a pretty positive read from that part of the world as well. >> i happened to be with someone last week who just came back from china. in macau where people go to show the wealth, there is a run on $500,000 watches. people don't understand this in our country, but if you can't buy houses, the way you show your wealth is in watches.