david nelson, good to see you.hanks very much. >> thanks for having me. >> security concerns at the winter games in sochi. they're not just limited to what's happening on the ground. there are reports about threats on-line. so how serious is it getting over there? we'll discuss the cyber danger when we come back. stick around [ thunder crashes ] [ female announcer ] some people like to pretend a flood could never happen to them. and that their homeowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. >> new detames on the multi million dollar drone that sudsly plunged into the pacific ocean. the drone's mission, to patrol the border. last months' crash prompted government officials to ground all the aircraft used for border surveillance until an investigation was completed. it has been and now u.s. customs and border protection lifting the ban. they say the aircrafts national functioned. proper procedur

that would be david nelson from bellpoint asset management who sold off of his shares in the wake of facebook's $16 billion to $19 billion purchase of whatsapp. we're talking about 5,000 shares that david owned. so why did he do that? david does join us here along with ron from jmp securities who despite all this says he's a believer in the deal. david, first to you. was it when you first saw the headline, when you looked through the numbers, or does it reflect something about mark zuckerberg personally? >> it was your second time in the name. it was a great name for us last year. we had just started to initiate the position. i saw the headline and then i started running through the numbers in my head, and we were out that night before the next morning. >> because? >> well, look -- >> it's too expensive -- >> nobody is questioning the strategic fit here. i get that. but at $19 billion this company -- this division, rather, is now worth more than half the companies in the s&p 500, and it beg it's the question, it seems that they think this company is going to sign up every man, woman,

david nelson is back with me here.last week when you highlighted that you had sold all your shares of facebook after that $19 billion acquisition of whatsapp. jim cramer was with us this week, and he said he feels like there's too much froth in some of these technology stocks and that's got him worried. are you concerned about that as well? >> well, facebook was a case in point. you know, we sold because we thought at $19 billion, you know, we were discounting just too far in the future and there was no -- nothing said about monetization and when you see that kind of thing, there is a little froth. >> he's looking at netflix and even outside technology, tesla which has been up, you know, an incredible amount in the last -- 650% or whatever it is in the last 14 months. that kind of froth he feels like doesn't take us all the way back to the late '90s but he's becoming a little concerned. are you? >> i'm not that concerned about the market. you know, this is a battleground we're seeing right now, and, frankly, you have a

i also predict prime minister thorning smith who posed for a selfie with brahm and david cameron at nelson mandelaed funeral service will be vanquished in denmark's upcoming election. bye-bye. >>> th week on "moyers & company," the state of the union from beyond the beltway with journalist/producer david simon. >> the scam of it, the scam of what america's become, you know, give the money to the rich and they'll see that you're not poor. is that really what you're saying? >> announcer: funding is provided by -- anne gumowitz, encouraging the renewal of democracy. carnegie corporation of new york, celebrating 100 years of philanthropy, and committed to doing real and permanent good in the world. the ford foundation, working with visionaries on the front lines of social change worldwide. the herb alpert foundation, supporting organizations whose mission is to promote compassion and creativity in our society. the john d. and catherine t. macarthur foundation, committed to building a more just, verdant,

i also predict prime minister thorning smith who posed for a selfie with brahm and david cameron at nelson mandelaed funeral service will be vanquished in denmark's upcoming election. bye-bye. >>> next on "newsroom," income inequality front and center again. while new cuts to the federal food stamp program are likely. uc president napolitano leads the u.s. olympic dell base to sochi, russia, and talks to the tension surrounding this year's games. >> all security precautions that can be taken are being taken. in a world where there are no guarantees. >>> drought poll tibs. plans to restore the san joaquin river under fire by republican lawmakers.

joining me, david nelson from bell point asset management and randy fredrick from charles schwab.arket for different reasons. randy, you have looked at washington. i think they've cleared the decks for a while and it will be positive for the markets. >> they really have. we had the debt ceiling, the government sequester and those have been pushed aside. those were some of the major catalysts that are not there any longer. we have to sort of be concerned about some of the emerging markets and china, but right now the domestic issues are primarily off the table. >> you think the weather gives us a free pass. >> for now it does. we have a weather put. maybe that expires sometime in the second quarter. but right now, you know, you go on the conference calls, they're all talking about the weather. i think the market is going to look past that. we already have. we've kind of tiptoed up over the last seven or eight -- >> gives us a floor to work under. >> and it doesn't even matter whether it's true or not. it only matters we believe it. >> how could it not? i keep saying, people skeptic

. >> joining us to discuss this is david nelson. senator joe manchin brings up a sudden point, follow the closure, $300 million-plus dollars missing. it's more than a major hiccup. >> it's important to distinguish between a bitcoin exchange and the currency itself. we may find out several months from now that it was nothing more than a ponzi scheme. it could be that. red flags showed up for several months. people that had invested said that it was easy to get money in, almost impossible to get it out. the company, their founder, mark kapellis believe they were hacked or robbed. it may have vanished. >> they ceased operations. >> the senator september a later saying: >> if criminals are taking advantage of bitcoin, will regulators step in. >> probably. a lot of backers are calling for it. it's important for the viewers to understand when you invest in bitcoin, you have no backing. as we have seen, these people have been wiped out. they will not get their money back. i think regulation is likely to take hole. this is a devastating blo

the david nelson joins us.look at yesterday's numbers, the dow dropping more than 326 points, the s&p more than 40 and nasdaq almost 117 points. is this that correction we have been hearing so much about? on the part of investors, they're probably operating it is. >> this is the correction. i think the debate is going to center about how deep this is really going to be. some analysts are looking for a 20% to 30% drop in the dow and s&p over the next several months. i'm not one of them. this is a correction, i can't tell you whether we're near the bottom right now. i think we have support a little bit lower than this or whether it's a 10% or 15% correction. we get these, this is certainly it. >> a 30% drop would take us back to where we were this time. >> that's not going to happen. i'm on record. i don't believe this is 2008 and it would take a systemic event. >> what sconce statutes a correction? >> it is really anything over 10%. we're not quite there yet, although some markets around the world, obviously jap

david, it raises a lot of questions in terms of what shareholders will side with. obviously nelsonition in a $122 billion company, it is small to say the least. at 1% or so. but that said, the key is can he win over other shareholders. this debate has been going on for quite some time, of course. you hit some of the salient points there and he's still coming. nelson is nothing if not tenacious and one would expect he'll continue to bring this fight to pepsico but they continue to maintain and after a long review, of course, as you said and they said in their own statement that these two businesses belong together. it is interesting to note in activist circles you've got him saying please split pepsi. that's his playbook. and then dan loebs sending a letter to his own fund holders but recommending that dow chemical split itself up. that is a battle programs yet to come. dow also saying we're not interested. on a number of different activist fronts this is the idea at least embraced by those who are active but we'll see whether other shareholders agree. >> i want to mention he's not