david einhorn still wants his honey. >> yes. good morning.horn wants apple to start paying out big dividends to investors. apple has $130 billion in cash. david einhorn wants the man on the left tim cook to let go of the purse strings. a lawsuit ensued, not over this issue specifically, but over the way apple shareholders might vote on the issue. but this is now irrelevant. the suit's been dropped. but as you point out, marla, einhorn still wants his dividends. speaking of apple, today in federal court, apple expected to settle a lawsuit brought by parents whose children spent money bying stuff in an app. british newspapers reporting this story of a 5-year-old in england who managed to buy $2500 worth of ad-ones in the games zombies versus ninja. facebook sending an invitation to reporters for a press conference thursday to show off a new look for the news feed. take a look, have you seen this man? can you tell who he is or if that's even a man? looks like it was beamed back from the moon, doesn't it? a look at security cameras. many terrible

that's when einhorn sued. apple dropped the item and einhorn dropped the lawsuit. apple ceo said the suit was silly. the company is considering the preferred stock idea. >>> the first day of retirement is in the books for pope benedict xvi, but at the vatican, cardinals are preparing to select his replacement. the dean of the college of cardinals officially invited all eligible cardinals to assemble in rome. the general congregation begins next week to discuss church issues. the conclave to choose the next pope must begin in the next 15 to 20 days, but could start sooner. >>> an awesome kid. that's how former nba star dennis rodman described north korean dick indicator kim jong- un. >> his country loves him. love him. not like him. love him. loveim. the guy is awesome. >> rodman and mr. kim attended a basketball game together during rodman's visit. >>> governor jerry brown has issued a state of emergency for a san mateo county. the proclamation comes in the wake of flooding over the christmas period. that's when days of heavy rain caused a creek levee to fail. the

einhorn has been pushing apple to return more cash to shareholders. >> josh, thanks very much. steve weiss, apple in some sense has become the "who cares" stock. in the context of what i mean, the rally doesn't care whether apple is up or down. >> they may only sell about 50% of the iphones they had budgeted to sell. it's an unsubsidized phone if you buy through vendors. >> and omnivision. they beat on earnings, but they had to warn going forward, which plays into stephen's point, the you're building inventories, a lot of the eco system that feeds apple, they're going to suffer, too. obviously they sell to samsung and lg and htc. but the fact that apple might be cutting back on that growth is going to hurt the eco system. >> our next guest finds opportunity in small fast-growing companies that he believes will become big flourishing opportunities. henry ellenbogen manages t. roe price new horizons fund. welcome. nice to have you on the show. >> good afternoon. >> let's get right to it. i'm sure people want to find out what your ideas are. what's your best idea right now? >> we

you just -- you just blow off a david einhorn? >> oh, i think you do.that problem for years at ge when they would come after us. what are you going to do with all that cash? we're going to do a smart thing. trust us. be with us. stay with us. look, these guys are, after a quick hit, i'd blow them off. i'd give einhorn the back of my hand. >> and you have carl icahn doing this with dell, as well. >> the dell situation is a self-dealing with you. you have michael making -- and the board making a deal. i find the apple -- dell going private to sort of be able to work in secret and not be under the spotlight. to be a weak argument. i mean, i think they should be able to do anything they want, if they lay out their strategy. so, i'm -- i'm more sympathetic to a challenge there than i am in the apple one. apple deserves, after what they've done, the chance to deliver on all their promises. >> okay. we'll keep watching that. more with jack coming up. look ahead to tomorrow's job report. stay with us on "closing bell." s new options platform, we've completely i

hedge fund investor david einhorn dropped his lawsuit to stop apple from a specific shareholder vote. he got the judge to bar the vote at this week's shareholder meeting. shares fell 2.5%, pushing the stock to a new 52 week low. shares are down 20% since the first of the year. retail stocks helped the consumer sector with a combination of clothing and high end jewelry. the gap rose 2.9% after its strong holiday earnings season. this is gap's highest close since early december. tiffany rose 2.8% to a 10 month high. walt disney led the gains for the dow industrial average, rising 1.4%, closing just below its all time high. after the closing bell the wall street journal reported disney was talking with news corp over their hulu joint venture online streaming video service. each own about a third of hulu, but have differed on their business models for the service. news corp wants to charge subscription fees. disney wants more advertising. the maker of the da-vinci surgical system, intuitive surgical continued to see big swings for the second day in a row. analysts came to the defensive of

einhorn wants and that could be a catalyst for the stock in the near term. >> in terms of the strength of this rally, are you a believer in the rally? because we've laid out all cases as to why apple stock will remain lower, yet the markets continue to march higher. >> they're not really breaking through to new ones, are they? if you look at the new york stock exchange, they are approaching the peeks they had on june 29th of 2007. i look at that, it looks like a double talk to me on the margin side and the market. i understand people have good rationals. >> is apple a canary in the coal mine for the markets, or the markets are up 6% for the year and if apple makes that move higher, then we could be in great shape here. >> i think apple is its own animal. shot too high to the upside. doesn't mean you have to own it because you think it's cheap here. it can get cheaper. >> if apple is not an impact -- >> decelerating earnings growth. this is a very mature comp that grew very fast in a short period of time. you can say the same thing about the u.s. market, as a whole. earnings drive stock

even after hedge fund manager david einhorn abandoned his initial lawsuit which had cost a lot of concern confusion about how certain money would be put back into shareholders' hands. he abandoned it and the stock is hitting an 52 week low. get to the floor right now here at the new york stock exchange. right here. you know, every trader that i talk to, although it is fresher with uus. and we're not going to hit the all-time high. does the behavior of the market today encourage you or scare you? >> it encourages. the market is holding very well considering we have gotten over the sequestration was tells you the market is not really concerned about that. i suspect one day next week will readily will try to challenge. liz: today, what surprised you? earlier we're down on bad overseas data it. in fact, some of the unemployment rates, particularly italy hitting fresh ice. >> i understand that, and even our personal income was down, way off the charts this morning which you thought added to the negative. and we saw the market. my only senses because everyone continues to expect that no one sho

and it was what david einhorn said. that part of florida ain't coming back soon.s the dow closes at record highs, i refer to my friend and mentor mark haines. i think he'd make peace with this market if we keep looking for the right kind of opportunities. "mad money" is coming right back. >> facebook's timeline has been rocky since its ipo, but the stock is up 50% since hitting its lows. is it time to get friendly with these social shares or is it just a fair weather friend? cramer is finding the answer in tonight's "off the charts." and later, flight plan. you ask what is your opinion in the u.s./american airlines merger. and cramer takes off to action. does u.s. airways have more room to fly? get ready to put your portfolio in the full upright position. show stopper? you know ascena retail from brands like dress barn and lane bryant. cramer is trying its stock on for size when he talks to its ceo coming up on monday money. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cn

growth and a number of people, warn buffet, said apple can run this company better than david einhornth warren. >>> according to the "wall street journal," 60 major u.s. companies park the combined $166 billion in profit in offshore counties, in effect, shielding more than 40% of their annual earnings from being taxed by the united states. u.s. law allows companies to not record or pay taxes on profits earned by subsidiaries located internationally as soon as so long as the money suspect brought back to the united states. the extra revenue could go a long way for the u.s. government. the joint committee on taxation estimates fully taxing overseas earnings would generate an additional $42 billion for the government in 2013 alone. we don't need tax reform. to help us answer that do republicans want title reform enough to give ground on taxes? senator ron johnson of wisconsin joins the table right here, next, on "morning joe." as your life changes, fidelity is there for your personal economy, helping you readjust along the way, refocus as careers change and kids head off to college, and

to invest with the smart money types, helping you track, shot investors like warren buffett, david einhornwnload starting next week. 199 per month. so will he be buying it? add to the show's twitter. let us note. curious what you think. well, that may make you some money, but well-stocked? he continues to think so. he joins me now. of course you are tech analyst. at star with your price target. >> eight. it was 1,000. still 88. that is a big jump. >> yes. >> you're right. it's a big jump, and when you take a look at the market, we use the market peon added back the net cash per share. you know, apple grows a lot faster than the market. historically over 80% per year in the market has grown 6%. cheryl: let's get into your reasons. and a stand, obviously there was a big sell-off in the stock is down 24%. thirty-first -- 34% of the height. this is a stock we should down. get into the portfolio. the same time, the growth of real looking for, there has to be a new product cycle. you must be seeing that. >> you're exactly right. at think there are three phases. number one is distribution, value

. >> but you never had to dill with a hostile investor like david einhorn who is going after apple? >> i would ignore him. run the business in such manner to cree eat the most val you u over the next five or ten years. and you can't run a business to try and run the stock up everyday. >> but if you're looking at apple, it has faced massive fluctuations. tech stocks are more viable, including berkshire shares. >> berkshire has gone down four times. four times in history, it's gone down 50%. >> and in that time just focus on -- >> yeah, if you have money, buy it. just keep working on building value. but four times. i heard from people that those times that said you know, why don't you do this or that. and usually pay a dividend. they think it might go up because of that. might have began down actually. we just kept focussing on building value. and i think apple has done a good job of building value. they may have too much cash. one of the reasons they have cash around is because two third of it hasn't been taxed yet and they don't want it bring it in because they don't want to pay the

the effort by david einhorn to do something failed miserably and the stock is in the own personal bear market. apple won't listen to the reason of a shareholder or anyone. to get apple tv to be juice, 27 million. people take netflix or buying twitter and a force in social media and they are not a force in social media. and if tim cook is ever going to return cash to shareholders, which he should be doing aggressively, he ought to be buying a heck out of the stock right now in this free fall. it makes no sense for apple not to be buying back a billion dollars of stock a week. right here. if the company thinks the stock is cheap, it is time. on another day, huge day to put up or shut up a huge, horrible day. it's when the company should be in their buy. follow along by viewing action alerts, fortunately, heavenly, sold half of its position. but days like this, down ten points, sorely trying our patience. richard tried to bring up value to buy the company he created. i like best buy now that it's the last man standing entertainment business. the strength of housing, best buy has the wind

whether icahn, ackman, einhorn. >> my neighbor, scott wapner, good to be with you, man. >> see you, man floor, next, at the nyse. zap technology. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends

, you know, being printed so there's money being spent whether it's the corporate level, or david einhorn, trying to get apple to move more money to shareholders, that's just the canary coal mine. for the pressure on ceos to put their money to work. retail investors are feeling it, too, and in the end money is coming to the market. the market is cheap, and this is a rational move up for the market, and i think the dow goes higher. you look at 14,000. that's likely to be a future floor, not a future ceiling. >> what would it be though that would be a catalyst to turn things around? if you see interest rates spike, isn't that a major negative? >> not necessarily. i mean, if you look -- >> at 4 or 5. >> we're under 2%. >> if you look at the charts, maria -- >> showing economic growth if you see a slight move up in interest rates. >> a slight move up in interest rates is very bullish. when we see interest rates on the ten-year around 3.5 to 4, that's when you'll start to see valuations stretch a little bit if we don't see an increase in earnings and forecasts. >> i've got to tell you, everybo

einhorn. >> we had a problem for years. what are you going to do with all that cash? a smart thing, trust us, be with us, stay with us. these guys are after a quick hit. i would low them up. >> professor, is he right? are they after a quick hit? >> well, i mean, i think like every investor that want to make money. whether they're after a quick hit or not i think the record speaks for itself because if you look at the big activists, they often hang in there for years, far longer than the typical institution investor does. the key words that jack used there, was trust us. if you do trust managers, managers are going to win this fight against activist investors. if you don't trust managers and you have good reason not to trust them in some companies, when the activists are going to win out and they should. >> what i find interesting is that you specifically mentioned tim cook who's running apple as one of the prime examples for your argument. >> and i think in a sense he illustrates a problem when incumbent managers think they don't have an obligation to explain what the

the efforts by david einhorn have failed miserable. and the stock is in its own personal bear market for decades. apple won't listen to the reason of the shareholder or listen to anyone like me who has sugtsed everything from buying netflix to owning apple to get apple tv, 27 million, people take netflix or buying twitter to be a force in social media and they're not. the silence here is deafening. and if tim cook is ever going to return cash to shareholders, which he should be doing aggressively, then he ought to be buying the heck out of the stock right now in this free fall. it makes no sense at all for apple not to be buying back $1 billion of stock a week. right here and if the company thinks the stock is cheap, it is time. on another day, huge day to put up or shut up, a huge, horrible day. it's when the company should be in there buying. my charitable trust, which you can follow along by viewing actionalertsplus.com. fortunately, heavenly sold half of its position much higher. but days like this, down ten points, sorely trying o

. >> what about david einhorn who came out -- >> i was careful saying nobody ever got rich publicizing >> forget being rich, is there a public service argument to be made when you could argue david einhorn raised some important issues potentially to the extent you think akman is right and i'm not arguing he is or isn't, you could argue he's raising a public element at the same time, they're doing it as well. >> i have nothing against short selling. it does add certain discipline to the market. not the point i'm making. the point i'm making is it wise to bring the public into this the way he's done it. does he have a responsibility that limits his trading. >> goldman sachs would not bring its a"arbitrage" trading to the public and they didn't have a responsibility to inform them before they did what they did. akman may have a responsibility to the public. >> let's turn it around. if you are a big bull to a company and make a presentation in favor of it, are you bound in reverse of that to let people know you're getting out of the stock. >> i don't know. i'm not a lawyer. maybe that shou

einhorn will appreciate that. tracy: somebody will.me, what if your kids said i admit nor deny guilt? former banks get to do that former senator ted kaufman says the banks are paying a big price when we neither admit or deny guilt, let's settle. tracy: he was an early critic of obamacare cost to business. cke ceo speaks out against the president's plan to hike the minimum wage. he is here. as we head out to break, we've got to check on oil. oil is up about 77 cents at $93.23 a barrel. we'll be right back. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? l's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with d

that is why david einhorn is saying bring the cash back. we need those revenues overseas.well is saying more than half of its revenue is overseas. you are housing your patents and your copyrights on purpose overseas to avoid taxes. why not bring it home. both sides are coming in on this. here is the president last week saying a new statement about raising corporate taxes and overseas profit. >> we need to make our tax code more competitive. ending tax breaks for companies shipping jobs overseas. liz: the president has already said he wanted corporate tax reform. this is what he wants. we know that dividend taxes have gone up. melissa: that does not sound like the same thing he just said. that is jobs not cash. liz: he is equating higher taxes which jobs here in the united states. i'll tell you something, you know, this is a big debate in washington, d.c. exxon mobil paid a huge tax bill. when they had a tax holiday and this is what apple and other tech companies want -- melissa: everybody always says it does not work unless they are permanent. liz: that is where the debate

. >> you've never had to deal with a hostile activist investor like david einhorn who is going afterow? >> i would ignore him. i would run the business in such a matter as to create the most value over the next five or ten years. you can't -- you can't run a business to try and run the stock up every day. >> but if you're looking at apple, i mean it has faced some massive fluctuations. tech stocks tend to be a lot more volatile than some other stocks including berkshire shares. >> berkshire has gone down 50% four times. >> wow. >> four times in its history it's gone down 50%. >> and at that point you just focus on what you're doing? >> yeah, if you've got money you buy it and you just keep working on building the values. but four times -- and i heard from people that those times that said why don't you do this or that and usually pay a dividend. they think it might go up because of that. would have gone down, actually. we just kept focusing on building value. i think apple has done a pretty good job of building value. one of the reasons they have that ash karnd is because two-thirds