and a negative one at that being made from david einhorn. still idea to give the packed house. >> absolutely. scott, thanks so much. joining us from the conference. you are not sure what you position is. in terms of the move, we are seeing those move sharply in the after hours session. these are two stocks. dick's for one posted 52-week highs. >> you don't know where he is making broad commentary or talking about something with meaningful definition. the sentiment is so all over the place, i think this is one of the greatest hedge funds. if you get in, good luck. he will make you money. the fact that he can move 11%, it tells you what people are doing in the market. he is doing his work, but everybody else is not. when we talk about the intricators. people overshooting on standard deviations and you get expectations we are in now. this creates opportunities. i am not saying you should run in with the names that look like demand is falling out, but they are great companies. einhorn reinforces that. >> i would make a big take away from what sc

of the einhorns, ackman, paulsons, gundlachs, who do you want to hear from? >> ackman and einhorn. i respect the research they do. i know them personally. they're great people, as well. always good to hear what they're going to talk about. >> certainly going to be interesting. let's talk about jc penney. the stock hit today. seeing the worst drop in 24 years on the disappointing earnings report. you're long jc penney. you looked on a hero on barnes & noble. >> right and green mountain, too. >> i won't say you look like a zero now but the stock is heading closer to it than where you thought it was going to be. >> yeah. it's important to understand. we're buying more and view this as an opportunity. our view of how much jc penney is worth five years from now isn't changed and it's important to understand why this happened and the reason is jc penney like many department stores got in the cycle of running like 800 promotions a year and conditioned their customers to only shop when they were getting a huge discount and in fact the number floored me. before ron johnson came in, 0.2% of

. >> welcome to my side, david einhorn.i've been saying this since february of '09. we need to raise rates. we need to make the capital markets be interesting and profitable for some of these small banks. his first premise in the first paragraph ben bernanke doesn't understand human nature, i agree with. and towards the end he makes another assumption i've been hammering home and that is ben bernanke is protecting and doing most of these programs for banks and corporate america. i'm not saying that isn't somewhat necessary, but at the expense of households. and he even goes that deflation should never be the boogy man unless it's deflating wages. think apple computers and price drops. why is that a bad thing? >> that's one of the more absurd things he says. the idea we can have prices falling and not have wages falling is exactly what bernanke's trying to avoid. >> tell that to an apple stockholder. tell that to an apple stockholder. >> rick, it's got nothing to do with that. >> oh, yes, it is. >> what does it have to do wi

einhorn is long that day. he just reiterated all of the reasons why he continues to like shares of apple. and interesting day. again, more for what he didn't say than what he did paulson is yet to take the stage and all of the details from here when they give their investment ideas. >> they should be certainly well closely watched. scott, you mentioned amazon. i think amazon is winning. $13 billion a year? this company is on fire. >> and you know what, i think the point that einhorn was making is that jeff doesn't care about earnings. he's sacrificing short-term earnings growth for long-term growth. >> yes. and revenue growth. >> yeah. and that's why he thinks he's going to do whatever it takes to hurt somebody like dick's. >> certainly feels that way. thank you, scott. we'll see you later, scott wapner at the conference in new york city. >>> gold prices today tumbling in the bear market territory on concerns that greece will have to exit the euro. the precious metal fell more than 20% since the train day reco

you can see shares down more than 19% after david einhorn asked questions about the company's disclosure on a call. i had speculated if maybe einhorn was short the name, but i'm told that it was not mentioned in his last letter. so, perhaps the move you're seeing in the stock is the market expecting that it will be his next short. again, just all speculation, but david einhorn asking key questions there on the call about the company's disclosure, apparently causing that slide in the stock of just about 19%, as we follow the interesting story of herbalife in today's market. there it is right there. >>> our next trade is chesapeake energy and our own jon najarian recommended buying the stock on friday. let's listen. >> the stock had already made a pretty big move to the down side, and just as dan dicker was saying, single digits and so forth yesterday, the stock hasn't budged hardly, judge, even with the additional information that's out there. so, if you get to a point where this bad news, bad as it is, can't push this stock significantly lower, then i think it might be near a tradeable b

i think einhorn made tremendous moves and he made a great trade in first solar. he reduced the stake. clearly right now, i would focus on what david is doing than warren buffett. >> mike murphy who is playing contrarian for us tonight. >> i think as we discussed earlier, following these guys, these big hedge fund managers into the trades is a useless move. we know what they did months ago, but we don't know what they are doing today or tomorrow, but it's great to follow and look at what they are doing. there is not a way to make money off of what they did yesterday or three months ago. >> one of the things they agree with, going back to warren, some of these guys are so big, they have no choice. this is why he chooses. mega cap companies. what's your call on that? i agree. following hedge funds is not a game we would think about and i would not suggest that. when you have a whale who needs major liquidity to move into that, what's your call. >> you look back on the trades and the financials and he has been way off base on a lot of trades. i don't know the exact n

scott wapner is in the einhorn euro zone. take a look at the train day chart.of that moving immediately, now down 6%. it was positive when the day began. let me recap a little bit. he also had a comment on amazon. it briefly moved the stock negative and now it's slightly lower. he said that he questions the profit growth. a lot of people do. they are investing heavily and focusing on revenue. not necessarily profit at the moment. that was one issue and herbalife popped before it took the stage. it's still up 9.5%. there are a lot of problems with stock down 8.5%. i want to point out to people, it's not the commentary that we're making. the stocks move based on what goes on at the conference. that has to be pointed out clearly because that's exactly what is happening. >> so what you're saying is the einhorn -- >> david einhorn is the market mover and people clearly seem to be acting on what is said. >> right. >> okay. so -- >> i have to be very careful about these things because -- >> you do. >> because there's a push and pull thing here. there's no doubt that t

einhorn surprised the crowd by not mentioning herba life as a short idea. got to tell you. you were there all day. or almost all day with me yesterday. there was wild speculation that einhorn was going to call out herba life, popped up on the earnings call a couple weeks back, the stock went into a tailspin. herba life yesterday was anticipating his appearance as much as anybody, i'm told. even wall street firm downgraded the stock on a greater than 50% chance he was going to mention it. and when he didn't, they came out and upgraded the stock today which is a joke in another conversation in it and of itself. but nonetheless, this herbalife story, got a huge pop and einhorn did not. >> right. so i co ran solomon's global research department. an analyst came into my office and said i want to downgrade a stock because i think somebody is going to mention it, i would say you know what, pack up your desk. don't even pack up. we'll send your stuff to you at home, have security escort you out. it's crazy. if you think somebody is going to say something that's neg

he was not as harsh in talking about the fed as david einhorn was because einhorn said because he doesn't trust the fed, he thinks it's a time to buy gold. normally he would be selling gold, buying stock, but he says because he doesn't trust the fed, that it changes an investor's perspective. >> he's not a gold -- buffett in the past has never been on gold. i saw it in the huffington "post." i wondered why he went to that. i love tim arm strong and aol, but he needs to buy the drudge report. had you seen warren since his disclosure about his prostate cancer? >> no, i hadn't. >> so barbara walter -- you can tell me what it was like when you-will-you're very close to him. you're good friends. what was it like when you saw him? he's got it under control, right? >> yeah, he was. and i have to tell you, i was looking for it because it is the first time that i've seen him. he looked the same as he ever did. his voice sounds the same. his walk was the same. >> good color? looked good. why wouldn't he. >> yeah, it's reassuring on see him because it's exactly as he had looked before. when you ask

nik einhorn of renaissance capital and that's fine and good at this point. after hours, they would be trading at a new low. >> i couldn't disagree more. between 1996 and 2000, the yankees won four world series and it doesn't make me feel better that they will reverse course. groupon and zynga is fresh in people's minds. facebook, the presentation of what's happened over the last couple of days is prevalent in investor minds. >> there so many bigger issues in markets with facebook and realize why we are talking about it, this is not a significant issue for investors overall. i'm sorry to burst the bubble. >> any individual stock is not a big deal for investors unless it's a widly held stock. >> you talked about it on friday, but on friday when you walked into the floor of the exchange, they had a listing. >> to me they are so excited about it. >> we have to pull the plug on this. we will be right back. stay tuned. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'l

the company says the fact that recognized short seller david einhorn put pressure on the stock. these are issues that the company says have been thoroughly addressed, something that happens with people who usually are new to the industry and, michelle, they say this is a buying opportunity and they have about $428 million in repurchasing authorization. >> he's new to the industry. >> i love that. they are being gentle about that, aren't they? >> he just doesn't understand the model. >> i love that. let's face it. if anybody else posed this question, raised this issue, i don't think the market would have paid attention, right? >> no. >> it's david einhorn raising his hand about an earnings conference call. >> and the first to raise a flag at lehman brothers. he's gotten pretty big calls pretty big right. >> but it was an amazing response immediately, you know, down 10%. we saw a stock holt intraday and another 10%. he's just raising questions about how they report it. >> and when erases questions, the markets -- >> everybody listens. >> thanks, bertha. >>> the media center is fro

. >> that was a major point in david einhorn's presentation. shortly after is when you got short the stock? >> we were shorted for a couple of years and credit david for doing fabulous work and giving us extra angles and more ways to win on this. we took the position up after seeing his presentation. he identified other warning flags. >> how do you see the story ending? in the aftermarket session right now. what happens? >> when you have a company that you think has both fundamental competitive problems and accounting problems on top of it, i can't prove it, but that's the belief. there can be no bottom on these. this reminds me a lot of krispy kreme. history never repeats itself, but it rhymes. this is rhyming with krispy kreme. as long as the company will continue to miss quarters, it is putting guidance out for earnings, 5% lower than the previous guidance, it will be a lot lower in our opinion. the only question is it's hard to short more of a stock and that's what we are considering not covering. >> in terms of management, you look at a si

david einhorn's green light in expedia and computer sciences. csc, they eliminated their stake in yahoo! and first solar. einhorn and loeb see very differently. dell also trimming a little microsoft and gm. so maria the headline there is one hedge fund manager loves yahoo!. the other one, not so much. >> if you need to. >> all right. thanks a lot, brian. we'll be watching to see if there is movement in those stocks. listen to this. >> this is all part of a process of educating the american people on what the financial industry is doing, the fact that morgan stanley is spending millions of dollars lobbying for deregulation and creating a vulnerable crash like the one we had in 2008. >> so as financial shares weaken and protesters take to the streets against the banks, is morgan stanley's stock a buy or a sell? we'll have an all out brawl. stay with us. riding the dog like it's a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment

you're not concerned about david einhorn's concerns, yes?not concerned about the concerns that he raised, no. i don't think this is a meaningful risk for the company. >> it comes down to margins, really. are they selling at a full retail price to customers or are they selling at a discount, the wholesale price to the distributors buying them for their own use? >> actually, bill, that's not the way it would be accounted for. the products are sold at wholesale and that's the way herbalife books them. they don't book the retail revenue that would accrue to a distributor if that distributor sold to a third party. >> but you would agree it's a transparency issue and whether its value l its value lid or not, would it be who have the company to disclose the products? >> i'm sure they will come out with disclosures but does campbell's soup know who buys their soup at costco? we don't know. most multi-level companies really ought to talk about the bottom layer of their distribution as customers. because if you're a customer and you're not a distribut

don't we take a look at shares of herbalife getting really crushed today after short seller david einhorn questioned some of the company's disclosures. we've got herb greenberg. he's been doing a lot of reporting on herbalife on the cnbc news line. what do you make of this, herb? >> mandy, i think it's kind of interesting. he's asking some interesting questions. the most important of those questions is where, you know, is how much of the product goes to outside consumers. and that's a very important question with a multilevel marketing company. >> you know, what i want to ask you, though. i saw a note out from d.a. davidson saying basically with this drop in mesh herbalife today, if anyone else had asked questions like that there wouldn't be so much of a fuss. what do you make of that? >> when you look at the company from the numbers, it looks like it's a really strong and fast growing company. but i think the question is, is how are they getting those numbers? and, you know, look. if you go to the company's website, there's a question. are we an illegal pyramid scheme? no. that would be

david einhorn yesterday asking questions about the company's sales accounting procedures. look at this chart. what do you do here? it is a name that patty edwards has been in. it continues to be and i'm just wondering what you would do as you see a stock that's really gotten hammered over the last two trading days. >> you know, i heard the call and i thought that einhorn's questions were pretty innocuous. i think the sell-off is because everyone remembers what went on recently with green mountain coffee and no one wants to shoot last. everyone wants to shoot first. i don't know why you'd want to be in something with this much controversy. the chart is now broken. i'm not saying it is a cult or it is a bad company or it is a fraud or anything like that. i just think when there's controversy, go through something else, there are plenty of names without controversy. this thing makes me nervous. >> back to intel. it is rallying right now and understand why. it is goes x dividend. to get that 21-cent dividend you have to be an owner on the close today. that's why the stock is m

analyst nick einhorn thinks facebook will open at $50, a price he says is still worth paying. >> i think you could certainly justify that price if you have good assumptions about the company's ability to keep growing quickly and not hit mature growth rates too soon. >> s&p says, if history is any guide, similar i.p.o.s have debuted strongly in the last decade. >> the average first day gain among the largest top 10 technology i.p.o.s is about 31% gain on the first day. >> but, is facebook a "buy" at any price? that may depend on revenue growth from online ads, and the potential for mobile ads. >> i think investors need to think about the long-term, and you know, be afraid to wait if they don't feel the time is on the first day, or the first week. >> don't be worried about facebook stumbling in the current sloppy stock market. experts say it's a once in a generation deal. suzanne pratt, "n.b.r.," new york. >> still ahead, the u.s. hits chinese solar panels with anti- dumping duties, a decision that could set off a major trade battle. >> tom: stocks continued to weaken today over european w

i think of world of einhorn, but i don't even think einhorn likes it. >> yesterday some of the biggest retail. today anf of a sister yesterday's action downgraded on wells fargo. >> limited gives you bad outlook. not even down. walmart biggest in show doing well. obviously jcpenney is the elephant in the room. i like what's happening at sears. retail overall gap stores upgraded, very strong because it's domestic and domestic is still good. i know people at home are saying you guys make too much, you kept me out of walmart. i think that the intersection is industrials, technology and financials. >> yesterday on fast money, we had larry king on talking about his new internet tv venture and he said to us i have a question for you, you know, i like graham crackers. i eat them here. but why is what's going on in greece preventing me from buying the company that makes graham crackers? >> he has a good pint. actual cardboard could go down uses natural gas to do it in bulk. and finally getting it to the stores. diesel coming down. so he's right. >> but greece is the problem. >> so you buy what

and david einhorn, smoke some herb. why are analysts coming to the company's defense this morning? >> we have to start off with the markets. adp data coming in much weaker than expects this morning. private sector employment increase with losses in the manufacturing and goods producing sectors, specially manufacturing is a loss of 5,000 jobs. that seems to look at some of the positive manufacturing data that we have seen, particularly yesterday's isn number. but this comes ahead of the big job support. you know, the weather seems to figure into so many of these in the economy. did it also have an impact or potentially have an impact here? >> tough to tell. we're paying now for the good results during the warm winter. services may not -- all of the private sector growth in adp. it feels all services, goods lost 4,000. manufacturing lost 5,000. so it's almost the inverse of what the ism told us yesterday, which is maybe a fifth. >> the four-year highs yesterday, just about 6% of its all-time high, set october, 2007. so what can we say for this month especially after we came off the v

trading the einhorn effect and the capital asks questions on the conference calls. wall street led on the black stone and joins us with the portfolio on stocks. describing why he is a bear. live in the market site and let's start trading and get straight to the rally in december of 07. getting close to a multiyear high. do you buy this? >> i think what you have to do is wait to see what you get in terms of job growth. when monday rolls around, you make a tomorrowation on what the federal reserve will do and how that will be the catalyst. a couple of things inside the market today, you can look at it. number one, energy. energy has significantly under performed over the last eight to 12 weeks. that's a place to look to. financials were strong and jpmorgan which i bought last week around 42.75. i don't think you can get overly excited until you hear what comes out on friday. >> i agree. the xoi is a good trade a week or so. if you look at the indeces, the trade here is really that the s&p starts to roll over a little bit. some of the europe starts to rally. the banks

then david einhorn made some comments about it and it went off a cliff. >> meanwhile, cnbc.com, herb greenberg has done some unbelievable writing about hlf, which has kept me from sticking my head into the lion's den. but the ceo, he can answer the questions. john in florida. >> caller: hi, jim. i'd like to know your opinion about blue nile, nile. >> too dangerous for me. up a couple bucks maybe. >> sell, sell, sell. >> wow, discretionary goods, i'm going to wait right now. that reminds me more of fossil than of tiffany. jeremy in florida. >> caller: a big boo-yah from indiana university. >> oh, man, we love kelly school of business. what's going on? >> caller: my question for you is if facebook ipo is going to affect trading on zynga. >> it's a $5 billion company. i've been staying away from all the ipos. i love the product. whether it be yelp or zynga or literally away. the only one i like is linkedin. let's go to bernie in south carolina. >> caller: hello. >> what's up? >> caller: jim, congratulations, i want to congratulate you on everything you do and thank you. i want to tell y

. >> expedia, very quick, cut marketing expenses and then we hear the einhorn disclosure. seema? >> let's zero in on consumer goods. deck, the troubled uggs maker, may be moving in sympathy of foot locker which is trading at a 19-year high. analysts saying that the technicals look good. guys, is this the time to buy in? >> the technicals do look good. when you look at nike and underarmour and all of that people are going out, judge, and they are buying these $100 tennis shoes. >> i don't see kevin garnett running down the court with uggs on. you're making the same thesis for deck as nike and sporting goods? >> it may be more of a fad space. >> no doubt. >> this is like a look into grasso's closet. you look at uggs and lululemon -- i may look at the rain clothing companies. >> this is be nice to bad trader's day. i'm not even going to respond to that. >> good. because i want to move on. meanwhile, equity fund is one of the best performing large cap mump you'll funds. up 7.5%. what are the stocks behind this success? let's bring in chief investment officer david goerz. welcome to t

david einhorn's green light eliminated its position in the troubled search firm yahoo!. >>> two days before the planned facebook ipo, gm says it will drop advertising on the site. the decision will cost facebook an estimated $10 million a year. i'm bertha coombs. kudlow report comes right back after the break. >>> welcome back to the kudlow report. so, california's in trouble. govern he jerry brown's taking a page from president obama's soak the pririch tax proposals. >> this is the best that i could do. i've been thinking about this a long time. if one of you guys can think of something better, i'll be glad to -- i'll read your story tomorrow and if it passes the smell test we might even incorporate it. >> i've got one right off the top from the "wall street journal" article today. new jersey governor chris christie and a handful of republican governors around the country have balanced budgets with no tax hikes an large-scale union contributions to entitlements, even cutting tax. so it can be done. but where's california? it is the eighth largest economy in the world an

convicted felon and former critic about $400,000 to shut up and investors are speculating whether david einhorn will lay out a case for that stock in two weeks. by the way, he's never said if he's long, short or had any position in the stock. also look at this chart. the blue line is the short interest in the hlf up sharply over the past two days. all this is going on a report today on cnbc.com, gmi ratings put michael johnson as the highest paid of all ceos last year with total compensation of around $90 million. and also just by the way, sodastream, a name we mentioned getting whacked today. really i think people think because of the sympathy play relative to green mountain. two separate companies, two separate industries. >> it was nearly a year ago today that we did the sodastream test with jim cramer, too, right? >> that's where i realized they had a real product and people kept telling me how great it was and jim came out and he's going negative on the darn thing. do you realize that? >> i did not realize that. >> he's been very concerned about product quality. >> is that recent last coup

but remember david einhorn was just asking a question. he asked several questions.nd for a stock to fall -- and all for somebody to ask a question and see a stock fall? that's fairly unusual. >> great reporting. i know you're all over this story. thank you very much, herb. fine lines all over allergan today. the botox maker down about 4% after missing estimates and cutting the outlook for next quarter of botox sales now more than $1 billion a year. that's a lot of wrinkles, isn't it? so is the botox boom about po bust? let's bring in david pyott. good of you to join us today. i would like to know how much botox is an economic indicator. in other words, how have sales of botox and other fillers and cosmetic procedures like that held up in an economy where essentially you don't need to go out and get these things. it's very discretionary. >> good. yeah. delighted. thanks for having me on the show. actually, everything in the consumer cash pay business is actually looking pretty good. this morning when we announced earnings and we went through all the details, i said w

. >> david einhorn, green light capital, big hedge fund guy makes the case that dell's undervalued.re than half of its revenue from nonconsumer products and people aren't giving that enough publicity or enough of a case. do you buy that? do you agree with that? >> i actually take a little bit of a different approach. because when you look at the valuation, while i think it is definitely fairly attractive down here, there just isn't a lot going on at the company right now. if you look at it, the revenue on the top line's not going to grow any time soon. i think it's going to be difficult for margins to expand over this time frame as you really try to increase the richness of the revenue mix. again, that takes time. i don't think they will continue to invest in r & d to increase the competitiveness of the company's products going forward. under that scenario it's going to be very difficult to expand operating margins. therefore, difficult to grow earnings. so i just don't see any interesting activity going on from an earnings growth perspective in the near term. that's why we maintain

you had einhorn, the guggenheim partners, this is what people want to do.m of income -- >> but do you wait until we find out if guggenheim and the dodgers are successful before you get in? >> then it's too late. the price goes up. you have to be daring. in a zero interest rate environment, people are looking for yield and sports teams give them yield. >> don't most earn a loss annually? >> yes. for the most part. tv network that's another story. yankees do run at a loss. they lose $40 million to $60 million a year. >> on annual revenue, but they make it up in the increase on the value of the franchise over time. >> correct. >> interesting thing. finally, los angeles is the first major u.s. city to ban plastic bags at supermarkets. banning them. banning the plastic bags. san francisco did this, should or will other cities follow suit? you're fired up about this, darren. >> i'm passionate about this. if you're going to get rid of the bottles for the water and put them in plastic bags, this is selective reasoning. just because they're at the end and you see th

david einhorn is at it again. this time with florida developer st. joe's. more criticism for the company saying the business model is flawed and the company needs to take further writedowns on its model of its unsold beach front real estate. he's had a short in this position for quite some time. down 6% on the day. >> jackie, thanks very much. apple's next contribution to society, rim's next move. and is mark zuckerberg really fit and ready to lead a public company? three key topics coming up after the break. first, some of the etfs that are going the other way. these are inverse etfs. in other words, if you bet on them, you're up today as those green arrows all demonstrate. back in two, folks. >>> welcome back to "power lunch." let's run down three big stories in the tech world. jon fortt of cnbc fame and john herring the ceo of lookout mobile are players and both joining us from our all things d conference. gentlemen, welcome. first up, the mess at blackberry widens the company's warning of an operating loss. wall street bankers helping research in motion

david einhorn pointing out he thinks gold is a good investment, charlie has not really bought into that at least not yet. more on that when we return in "street signs." but, tyler, he also says wall street's a place where there's been a lot of bad behavior. we talked about michael lewis and some comments he's been making recently how he thinks the volcker rule isn't enough. munger says if he were in charge, he would make michael lewis look like a piker, his rules would be even stricter. >> becky, thank you very much. we look forward to your continued coverage over the weekend. it's going to continue on cnbc.com specifically where we're going to be live blogging from warren buffett's address to shareholders and mr. buffett himself, the younger guy in this butch and sun dance pairing. he'll be live on "squawk box" on monday from 6:00 to 9:00 eastern. first live interview with becky after he speaks to shareholders. >>> all right. let's head to jeff and find out what your favorite buffett picks are right now. >> well, ty, first and foremost, what an absolute stud warren buffett is. annualiz

there have been so many questions, whether it's from herb greenberg and others, david einhorn, who have questioned the business model and the growth prospects going forward. do you know how you got it so wrong apparently? >> no, but thanks for pointing out my mistakes. i think the way to look at it, the way i look at it, i'm shocked it happened this soon. i would have told you this was kind of an innocuous quarter after they had a very strong quarter last quarter. it looked like this is kind of the off season for brewer sales. you have a pretty modest guidance. so really wasn't expecting a whole lot. the real battle front was going to emerge this fall when the patents rolled off, when starbucks came out. and i think longs and shorts really expected this, if it was going to crack, it was going to happen six months, nine months from now. so, again, just so frustrated with the forecasting ability that the company has. i still can't figure out why things would slow down this quickly. again, it doesn't make sense from the retail checks we've done, why it would slow down this quickly this tim

after influential short seller david einhorn asked some very tough questions on the company's conference call. herb greenburg's on the phone to tell us more about that. herb? >> hey, sue. this is actually a very interesting situation. what david asked specifically is very important here. remember, herballife is a multilevel marketing company. there's a lot of controversy that sort of surrounds that industry. the question he asked was how much of the sales go to actual retail customers? people like you and me? instead of being purchased by distributors who are sort of part of the company's chain. and the company came back and said 70%. typically. then he said, well, you know, he asked more about it. he said they don't have granularity on it. in recent conference calls investors have asked this question. how much of the product goes to consumers like you and me? so the company says there's this sort of 70% rule. that means 70% must go out. the distributors must certify. this is something they say. it's fascinating. they must certify they sold product -- 70% of the product to consumers. the

. >> even notorious short seller david einhorn said just last night he wouldn't be surprised because apple is such a strong company worth $1 trillion. how would you counter some of the bullish arguments that he just made for apple? >> like i said before, apple is a great company. i think they have a very strong lineup. one thing i think is a cloud on the horizon, i call the cloak or vail of vanity, the halo-effect, the david that fought against goliath, the powerful pc, and apple was the small guy sneaking up. >> has that baton rightly or wrongly been handed over to facebook, do you think? >> i don't want to go that far, but what i do know is apple is now the big guy in the room. apple is no longer the david but has become the goliath. how does it manifest itself? the department of justice is attacking apple now for the e-books. verizon and at&t are concerned about the apple and google in the smartphone market. what are they doing? they're starting to promote a windows based operating system with nokia. is it a good operating system? i think it's probably -- but they do not want an -

at least that's what david einhorn is saying.buy gold because he doesn't trust the fed. we talked to charlie munger about that, and he is not as big of a fan when it comes to gold. in fact, gold bugs, listen up, here's something that will drive you nuts. >> i think gold is a great thing to sew on to the garments in 1939, but i think civilized people won't buy gold. they invest in productive businesses. >> all right. let's talk about some of the productivity businesses you see right now. >> well, i love the portfolio we've gradually developed in berkshire. we just have a wonderful portfolio in business. and by and large they're doing productive work. it's not outsmarting the computer systems and the trading markets. >> over the last four or five years you've changed that portfolio pretty drastically with some of the major acquisitions that have come along. burlington northern, did you intentionally set out to change the portfolio? >> we've always been opportunistic. >> what does that mean? >> well, it's carlyle. the task of man is

. >> if you're david einhorn, you say you have no idea what the fed is going do. that's such a gamble. >> and they even got to print in europe eventually, you figure. a stronger fiscal union won't necessarily save europe. >> right. >> only inflation. >> putting it in after the fact, you mean? >> yeah. i mean you can imagine -- i love this, but if they issued euro bonds where the north and the south -- the north was responsible for everything, which is already the way it victory but to issue a euro bond, you would need much tighter fiscal consolidation of all 17 economies, right? >> yesterday at this tiemt, maybe part of the reason that things were a little more complaisant is that spain had come up for this plan but now the ecb says you can't do that. you can't use their -- >> how can you have a kmorn currency when you've got 17 different places just -- some of them going crazy with spending and spending whatever they want aunt they have the same low interest rates as the countries that are really frugal. >> if you were going to give up a lot. >> you'd need a much

>> even einhorn started with green mountain. >> rebounded from the first selloff and now it looks scary. >> those k cups. >> company's earnings matched estimates. will that's a full screen up. no one knows. but -- >> this squawk ward moment has been brought to you by joe kernen. >> on radio they happened to mention k cup. >> they understand. but the single serve cough tico warned that its growth was beginning to cool off. whole foods beat estimates driven by better than expected same store sales and the upscale grosser is raising its full year earnings forecast. and shares of weight watchers hit will in after hours. first quarter earnings missing the market. the company i guess cut mf-or increased its marketing spending. it did something with its marketing spending. anyway, shares of value which i can also punish. the company results missing estimates and it is issuing a down beat revenue draft for the current quarter. let's check on the markets this morning. the futures are probably going to meander around a little until the claims number. adp, wasn't good yesterday, but i was watching

. >> david einhorn. >> he was with food. >> and now herbalife. >> when we talk about disney, what do we talk about? go back down. let's see. yeah, in demand media shares after the bell. the company's results beat the street as the internet content specialist revenues strengthened. wow. i don't even know that guy. that's why we're reporting on it. also lifted its full-year outlook. earnings and revenue beat the stre they saw a stronger output in oil. higher oil prices offset weaker prices in natural gas. they spun off from enron more than a decade ago. thank's what the "e" stands for. the shares dropped after hours. one more after the loser gulfport's energy earnings and revenues both fell far short of the street consensus. >> let's get a look on the street. the futures are indicated pretty significantly weak e. this is coming five days after the losses. down by another 76 points. the s&p futures are off by more than nine points. and it's all happening as we continue to watch some of the chaos that's been taking place in greece. the leader of the left coalition party there meeting up

david einhorn laid out a piece very recently where he said because of all this, because he doesn't trust the central bank and because he doesn't think that they'll be acting rationally as he thinks they should be acting, that's yes likes gold, do you you agree with a thesis like that? >> i think we really need to accept back and say what are the social implications of the central bank withdrawal liquidity. it won't be good for the average person on the street. so no matter what we think is the rational response, the fact of the matter sin natiis inflat not showing huge upticks and whether we like it or not, socially it is the best hingetho do. >> all hoe sethough seniors wou with that if you're on a fixed income. >> it has made it more difficult for fixed income investors. but i think the down side is significantly worse if the liquidity were to be pulled out. >> that has been bernanke's argument, too. tim, thank you very much. >>> coming up, big changes at yahoo!. but as a new c echlceo must hav turn the company around? plus a live report from washington where lawmakers are starting to

remember, david einhorn questioned about how the company was marking down inventory, where that inventory was landing in terms of the supply chain. >> by the way, that's the accounting issue. there's the accounting issue that doesn't even play into this. we're just talking about the business issue. there's still that accounting issue overlaying this. where did inventory go? when was it shipped? that's still going on. there's an s.e.c. investigation here. the company actually discussed that in its earnings release when it talked about costs, they weren't including the costs of that. but a ton is going on here, guys. a number of analysts downgraded today as you'd expect after the fact. one from janney montgomery who's been one of the biggest bulls on the stocks, reiterated as buy. >> whitney's remains short on green mountain even with the stock decline of 40% this morning. that's one view out there. herb, thanks so much. >> you're welcome. >>> coming up later, the ceo of ethan allen interiors will be on set with us to talk about the country's expansion. >>> and later, an exclusive interview

. >> einhorn disclosures yesterday. herbalife watch today. >> talk about battleground.nce. people say will they lower the boom? i don't know the answer. >> visa, deutsche bank likes it on a pullback. >> this is one of the best stocks of the year. every time it goes down a couple smacks, someone reit rates. >> finally, continental resources. >> all right. alaska, sorry. you're now number three. north dakota is number two of our produce rs of oil in this country. north dakota is as big as alaska. that's the way to play it. doinlt like oil right here though. >> very nice. what's on "mad" tonight? >> we're going to continue our analysis of facebook. we're going to tell you how to value the thing versus other social media sources. >> we'll see you tonight, jim. >> thank you. >> when we come back, jcpenney shares taking a hit. the u.new ceo has a plan if pla. [ male announcer ] this is the at&t network. a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and