get long ibm and take advantage of the weakness. from 2.10 to 1.95. >> carter is bullish and you raise an interesting point before. that is the role of consensus. when everyone is going one way, you look the other. ibm as a stock is the 1 that everybody has confidence in. >> they have reason for feeling that. number one, it's not expensive relative to earnings. there is growth over the last five years and we are looking at 4% growth and this is a company that over many, many years has proven that they are dynamic enough to make adjustments to accommodate any kind of environment. they transformed themselves a couple of times. with that back stop, you feel like if i am going to get involved, maybe this is one of them. you have the back stop in terms of valuation and in terms of really good management. this is the kind of name that you will try to make a look at. you probably have confidence in it and the options that are as consistent are among those that will be relatively inexpensive. >> mike is obviously bullish and buying a call.

and ibm has more than 50% of the sales. we are taking the opposite side. >> i would point out that the highest correlation is to s&p 500. there is multinational exposure and that is a good point. he timed that well and sometimes we might be doing this effectively, sometimes you buy the stock before it declines and then you might take a bet going the other way. >> that's a crazy pocket score. >> i don't know how i didn't know that. stocks versus options. better have a big bank account. 100 shares is almost $20,000. the leverage to the upside is $215. let's move on and get to the story of the after hours session. chesapeake energy getting a boost after karl icahn exposed a stake in the companies. he is replacing at least four members. kate kelly has been pouring over the filing and more activists might follow suit. what's the latest? >> fascinating battle here just being waged between icahn and the ceo of the company who with can be described as frenemies. icahn was a friendly investor and got out of that profitably and helpe

the reason he is concerned is reasons why you might like ibm. international exposure might want that to diversify away from the united states if there true concerns about the economy. weak technicals and it's a couple percent away even though april is a terrible month and a crowded trade. there is a good dividend yield and maybe you want that to stay in the stock. >> those are all great points for sure and one of the points they were touching on earlier. when you have stocks, one of the reasons people might be selling out of the winners and not that they don't want to hold them, but holders have to maintain limits on position size. if you have a big winner and you get up to that 5% cap, how much you can allocate to a single stock, you might have to sell out. if you are going to do it, why not in a period where there is a lot of macro economic concerns. you are in a seasonally weak period. when you combine those things, we are rarely arguing against a put spread. a lot of these companies, what we are seeing is their volatilities have not gone up

one of the things that ibm does -- a couple of things. one is having an eye on where things are going. one of the reasons that we focused here on data, relational database disk drive, was, looking at the time, the inability to access data quickly on a computer was actually an inhibitor to getting business done. one of the ways that you get innovation out there is you understand how it is going to be used, really, before you start. the major reason for working on the disk drive, aside from the obvious technology base that this place has and continues to have, was just an understanding that high-speed access to data would create an opportunity. remember, this was 1955. we reinvented ourselves. ibm made the first product with cheese slices. we cannot do that anymore. [laughter] this place also reinvents itself in a continual basis. in that sense, we feel very much at home here. the ability to reinvent, the ability to have a real sense of where things are going is also something we see in the bay area. strategic view. one of the things that i

ibm, quite the opposite.think you favor coke here at this point. >> as warren buffett it as well. carter, good to see you. >>> on talking numbers, michelle? >> the dow is lower by nearly nine point and nasdaq is positive by more than 8. we have 35 minute before the closing bell. up next, outspoken banking analyst explains why he thinks investors should pit against j.p. morgan. >>> here is how each member of the dow is trading. about 50/50 between red and green. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus - i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones. tdd# 1-800-345-2550 and i can trade wherever i want, tdd# 1-800-345-2550 whenever i want. tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 open an accoun

we can beat ibm to market with ibm's own technology." >> we'll take their idea and run with it. >> absolutelydoesn't believe in their own idea. >> and then oracle was born. >> right. >> that's next when 60 minutes on cnbc returns. [ticking] [ male announcer ] this is the at&t network... a living breathing intelligence bringing people together to bring new ideas to life. look. it's so simple. [ male announcer ] in here, the right minds from inside and outside the company come together to work on an idea. adding to it from the road, improving it in the cloud all in real time. good idea. ♪ it's the at&t network -- providing new ways to work together, so business works better. ♪ [ticking] >> was a college dropout working at various jobs in the computer business when he read a report by ibm's research department. it describes software that could analyze and store data. but ibm's management had not acted on the idea. >> i said, "oh, my god, this is exactly what we need to do. we can beat ibm to market with ibm's own technology." >> we'll take their idea and run with it. >> absolutely, because ibm d

we can beat ibm to market with ibm's own technology." >> we'll take their idea and run with it. >> absolutelyuse ibm doesn't believe in their own idea. >> and then oracle was born. >> right. >> that's next when 60 minutes on cnbc returns. [ticking] a route map shows you where we go. but not how we get there. because in this business, there are no straight lines. only the twists and turns of an unpredictable industry. so the eighty-thousand employees at delta... must anticipate the unexpected. and never let the rules overrule common sense. this is how we tame the unwieldiness of air travel, until it's not just lines you see... it's the world. all of a sudden, when you have been making them with somebody else for 35 years. i guess there is something in me that has always been strong. i've always gotten through some pretty rough stuff without falling to pieces. ♪ ♪ of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the storybook narrator... [ man ] you're

one was, you have to remember at that time you could not modify ibm equipment. it was like the old telephones, you couldn't change it. but they did modify ibm, they got some punch card machines at that time still read on the 12-bit side, and they converted it so it would read on the 80-bit side, and that's why we have 90-character line -- 80-character lines. >> was that their innovation? >> no, that was a guy named hue let crane who moved to stanford, he just died a few years ago. no, he did that alone and got in real trouble, and then the ibm people came and said, well, wait a minute, we could probably sell this. and they did very well. that's what put them in the data processing business. >> francis -- [inaudible] the british author, had a great review of the book in the guardian of london today, we were talking about it earlier, and he says no other book brings to life anything so vividly or appreciatively like the immense engineering difficulty of creating electronic logic for the first time. talk about the design, the team, the plan, von neumann's drive to

the voice-activated system is banned on ibm-issued cell phones. a company executive says because ibm has no control over how the questions are stored. better to be cautious than -- >> i didn't know that siri stored my questions, and i hope that siri never shares the questions. >> i hope so for you, too. terrell, could be scary. >> ashley morrison in new york. good seeing you. >>> coming up on the morning news. going eye to eye with a shark. a great white takes some big bites near a fishing boat. this is the morning news. [ male announcer ] there are only so many foods that make kids happy. and even fewer that make moms happy too. with wholesome noodles and bite sized chicken, nothing brings you together like chicken noodle soup from campbell's. it's amazing what soup can do. like a squirrel stashes nuts, you may be muddling through allergies. try zyrtec® liquid gels. nothing starts working faster than zyrtec® at relieving your allergy symptoms for 24 hours. zyrtec®. love the air. at relieving your allergy symptoms for 24 hours. it's time to live w

but they did modify ibm. they got punchcard machines and at that time still read 12 bits, on the 12 bit side and they converted the machine so it was on the eight bit side and that is the whole world, that is why we have 80 character line's. >> was that his innovation? >> no, it was hewitt crane who lived here and then moves to sri, stanford research and only died, couple of people may know him, he just died a few years ago. he did that alone and got into real trouble. the ibm people came and said wait a minute, we could probably sell this and they did very well. that is what put them into the data processing business. >> frances buffered, the british author, had a great review of the book in the guardian in london today and we were talking about it earlier. he says no other book brings to life anything so vividly or appreciatively like the immense engineering difficulty of creating electronic logic for the first time. talk about the design, the team and to plan and von neumann's drive to do this. he was just

ibm has a way to fire people. ibm keeps doing these acquisitions. we had cognizant report this morning. cognizant is getting killed where accenture, s.a.p. and ibm are doing well. it could be a share take or cover to fire people where it's real hard to fire. >> we have the ceo of cognizant later this hour. >> talking about u.s. stocks and coming back to that. let's talk about warren buffett. mr. buffett making it clear he is still buying on the dips. >> we probably spent about 60 million. we try to buy maybe 10% of trades or something. when we were buying ibm, i used it day by day i would account for 10% of the trading. >> when they see it come down to the price points they like, they are not going above 10% of the volume. 60 manage on berkshire asset base, nothing, but at least he was in there. >> i found today's interview so compelling. >> that can't be right. >> that's a big hit. >> i find this is a really weird moment. when i go and talk to regular people about berkshire hathaway, they say something. the prostate cancer off the radar screen agai

, when von neumann signed a consulting agreement with ibm, this was highly favorable for ibm.re were no patent restrictions on it. but i think from von neumann's point of view, i don't think he was out unscrupulous -- i think he thought it was for the good of everybody. i think you have to remember that all these groups during the ward yesterday were all collaborating. rca and eckert transport and others -- they were all cooperating together. people from manchester were coming from princeton. people from princeton were going to manchester. they were arguing about who should get credit -- the argument in what later. >> and in fact, the war ends. von neumann is headed back to ias. wants to transplant the entire eniac team and take them all and continue to work. eckert and mauchly decline. goldstein goes, but eckert and mauchly decide they're going to pursue commercial. >> the reason the globe valve job is because eckert decline. people went back and forth. we shanghaied to their guys and we shanghaied to viewers. >> in the end, he became very better, and i., again, can read in t

supposedly she also dictates text messages, but ibm has a problem with it.ou say the text and it dictates it and the problem is when you say the text siri sends it off somewhere to get transcribed. it gets funneled to a center like this one in maiden, north carolina. an apple data center. ibm says this is a big problem. a big security issue. let me tell you why. because of this. ibm is one of several companies that has embraced the whole byod trend. it's bring your own device. it used to be when you got a job at a company, you got a blackberry. that was the way it worked. but that's not so true anymore. blackberry has been losing fans. and employers -- employees want to use their android or iphones at work. if y if y if you have a byod policy at york you can use it. they say you can't get this app or you can't download this, they have a big problem. they have a big problem with you doing that. sorry, there you go. you have to wipe it remotely. there's all kinds of problems you have on the devices when you do that. so that brings me to our number tonight -- 7

ibm is one of several companies that has embraced the whole byod trend.s bring your own device. it used to be that when you got a job at a company, you got a blackberry. that was the way it worked. but that's not so true anymore. blackberry has been losing fans and employees want to use their android or iphones at work. so if you have a byod policy, you can. bog ieger at disney was one of the first to do it. it's a big security risk for companies. they say you can't get this app or you can't download this, they have a big problem with you doing that. you got to wipe it remotely. there's all kinds of problems you have when you do that. that brings me to my number, 75. it's the percentage of companies that allow people to bring their own devices to work. if you work at one of those companies, your employer, like ibm is going to be really worried about siri. what are you telling siri to text? is it salacious or inappropriate? if it is, a lot of people might be able to read it. still "outfront," in our second half, major development in negotiations over iran'

we've already seen that with ibm in their earnings. and then number two, they're certainly heavily exposed to asia, which is really the growing area of the world right now. so, i think that's absolutely right. and on pete's point about the vix, the one thing that the market hasn't priced in here is a melt up. everybody's so worried about this huge deflationary event, but bottom line is, the economic news isn't that bad. things are pretty good. >> you certainly haven't factored in a melt up. >> well, i came into the day long. by the way, happy may day. i am celebrating this socialist holiday in the paragon of capitalism, the new york stock exchange. and it has been a good start for capitalism in may and i came into today long, but i'm not nearly as excited about technology as my comrades. and the reason, and you know, brian, i guess i would challenge you on this when you say that asia is the growth driver. i think, in fact, asia is the problem and the asian stock markets certainly have reflected that. i think that's why we saw the royal

the indication is it does not work against the sophisticated ibm with multiple war heads and multiple decoys. we need to get the technology right before we spend the money. my amendment would say we can move forward with some planning. and that's it. the decision about deploying the missile defense system on the east coast would be left for later. and in the meantime let's deal with the deficit and not spend our money foolishly and initiate in the bill a commitment for an additional $5 billion. it's not 100 million, folks. this requires that this be built within the next three years. so that's the amendment. i would ask for support. i yield back my time. >> gentleman yields back. chair recognizes gentleman from ohio, mr. turner, for five minutes. >> i want to speak in opposition to the amendment, i want to begin by thanking him for being the spokesperson for opposing an east coast site being one of the few members of the armed services committee that lives less than 3 # 0 miles for a missile defense silo that has four missiles in it. # i'm sure people on the east could would like to e

we have right now with ibm 16 major companies like citi bank, facebook, kather pillar. one of the things i'm going to ask everybody here is go take a look and see if your business works for this supplier portal because we're trying to get more small businesses into -- to be signed up. we have over 4,000 now. so supplier connection. we're going to be talking about this more over the next day and a half. this is what national small business week is all about. it's about opening the doors. it's about making sure entrepreneurs from all the communi communities across this country have access and opportunity to grow their businesses. you know, i was with the president last week and we kicked off national small business week. and we did it in the great tradition. we went out to a small business that served food. we went to a sub shop called taylor gourmet, which is right here in town. and it was started up by two young men from philadelphia. they came to washington and they couldn't get a good hogey. there's always a different impetus for creating a business. it's not cheese s

work at ibm -- to take this course because it taught you negotiation. and it's just an art. and once you get the buyer/seller role playing, it's easy to take yourself out of it and just ask for the money. >> i have to tell you the best story about this because linda babcock is one of the best negotiation trainers in the world and the only difference about women and men in negotiating that i thought she got so well is that if women negotiate tough, it doesn't have the same effect as if a man negotiates tough. so she says and i think it's nice because it changes your face that when women negotiate tough, they have to be relentlessly pleasant. you know? and it's kind of a confidence thing and it's kind of a tough thing that doesn't, you know, hurt. and i just thought that was a marvelous thing that she teaches women, if you're going to be tough, just be relentlessly pleasant. >> how about over this way. >> making these problems -- thinking about them internally like you've been saying, and like trying to make the change happen internally, how can -- what c

ibm is banning the app from its offices over features in this city could be privacy threat. the concern comes from house to relax. when users say commanded the information is sent to a data center in north carolina were the words are interpreted in and send back. how will will not say how long the information is stored or who has access to it which is what ibm does not allow workers to use siri. according to the license statements siri only collects data did you do a better job of recognizing what users safe and claims it is not linked to data from other travel services but i'd pm it is not taking any chances and they are not the only ones who are cautious. in march the american civil liberties union issued a warning about the at that said it was not only to offer users but also gave apple access to extremely personal data. one thing to keep in mind, privacy concerns are not only limits its apple. other companies like google have also come under fire over how they store customer data. with siri, even always turn her off. >>pam: still ahead, the world according to gary as our

the concern for ibm is that siri cannot keep a secret.you use siri, you put the command into the phone and it is zapped into a data center in north carolina where the words are interpreted and sent back. now, apple does not specify how long the information is kept or who has access which is why ibm is not allowing the employees the use siri on the gadgets, and there is a user agreement saying that the data is for dictation to help siri understand you better and it is not linked to other data that apple may have from your use of other apple services, but ibm is not taking chances with company information. they say they are conservative, but that is the nature of the business baz was when you walk through the door of ibm, you need to put siri away. >> that makes me concerned about my own privacy. should we ail be concerned? >> well, the aclu issued a warning about siri in march saying that the personal assistant is not working for us, but full time for apple, too, and sending a lot of the voice and personal info for apple to stockpile in th

that's part of the reason you liked ibm to begin with, correct? >> sure.gone up significantly since the end of the year without us laying out any money. and, you know, that happens long enough, it makes a lot of difference. we bought 6.7% of coca-cola some years ago. it's now 9% without us laying out another dime. >> same thing happened with american express. how much do you own of that right now? >> i guess -- i think we own about 14%. >> 13%? >> yeah. it goes up. we haven't bought a share -- we can't buy it because it's a bank holding company but our interest in the company goes up and we love it. it's a wonderful business and what's better than owning more and more of a wonderful business without laying out any money. >> right. >> this weekend at the shareholders meetings there were about 35,000 shareholders who came in through omaha. there was anything in the questioning that caught you by surprise or maybe you learned something from? >> the questions generally were good. to some extent you learn what's on the shareholders' minds. to an extently even t

apparently ibm is banning employees from using siri on their iphones.y've also banned the icloud as well. they're saying there's so much personal stuff, for example searches, e-mails, inappropriate jokes, you name it. it's all going to one black box. and they don't know how long apple is storing this information and who exactly is looking at it. so the question here, is this good for the good old fashioned rims of the world if some of these smartphones are getting a little too smart and issues of privacy are raised? >> no. i think we know the issues of privacy are out there. if you look at it, most companies are not banning siri. siri itself doesn't always work as we know. with the cloud, there are certainly security issues people have raised. i don't think it's going to say cause a revival of rim, research in motion, i think there are those people who look for secure methods and ibm is one of them. they're going to go their way. but i think this train has left the station. >> yeah. i think they want to be conservative. not paranoid, just a wise move. m

i know some about ibm research. i wish i knew more. i think it is clear that bell labs didn't survive because he gained its energy and sustenance by being attached to the monopoly. i can answer that part of the question, that it could not survive in its form without that attachment and without that relationship. when the phone company was broken apart, in the early 1980s -- after that, the revenues declined dramatically in a stream of real-world problems and the ability to justify its investments in scientific research which became difficult as time went on. on ibm research, one thing that is interesting to me, one of the characters that i talk about went to work for ibm research right after you retired from bell labs. he was going around the country and going to europe to interview the researchers then write these confidential reports for the ceo, and try to deliver to him his conclusions about what ibm research should be continuing and who the rising rising stars were. at least as he saw it. >> given that bell labs was generally good

michael said ibm's first product was a cheese slicer. we do not make those anymore. we keep in a bidding. and mayor lee, start-ups at long-term views. they're not looking for instant gratification. the key is long-term innovation with networking. it makes this region unique, doesn't it? i hope you enjoyed this panel as much as i did. i want to shine the spotlight just another moment on lisa dyson. you heard a little bit about her background. i hope you will bing or google her, whatever your preferences, and learn more about our company. the silicon valley leadership group did a soft launch in january of something we call start-up silicon valley. it is for innovation economy, ceo's in this region to join at the leadership group basically for free. because we want to capture in the them to the dna that david packard, our founder had, which was a balance of running, brilliance, dynamic companies while, at the same time, being deeply engaged in your communities and in the quality of life of your employees. that is the scale that we want to raise up in these incredibly in

in ibm research, one of the things we talk about is our laboratories. i have been all over the world, live in different countries. i am a relatively recent transplant to california. i would like to let the governor know that i am happy to be here. it is a good space. recently, governor brown has spent a lot of time, focus, and effort making california a better place. focus on eliminating waste, increasing efficiency, decreasing the budget deficit, and real focus that we appreciate in northern california on clean energy. for example, moving the state's goal to be 33% clean energy producing. it is my privilege to welcome governor brown to the panel. [applause] >> and to introduce our next panelist, i would like to welcome steve ballmer, senior bp -- vp. >> good morning and thank you. next up is governor hickel lipper -- hickenlooper. he is the serieaal a entreprener each of you have in your respective parts. he became very successful in the brew pub business. he never had a single election not even for stink -- a student council. governor? [applause] in k

, when von neumann signed a consulting agreement with ibm, this was highly favorable for ibm.re were no patent restrictions on it. but i think from von neumann's point of view, i don't think he was out unscrupulous -- i think he thought it was for the good of everybody. i think you have to remember that all these groups during the ward yesterday were all collaborating. rca and eckert transport and others -- they were all cooperating together. people from manchester were coming from princeton. people from princeton were going to manchester. they were arguing about who should get credit -- the argument in what later. >> and in fact, the war ends. von neumann is headed back to ias. wants to transplant the entire eniac team and take them all and continue to work. eckert and mauchly decline. goldstein goes, but eckert and mauchly decide they're going to pursue commercial. >> the reason the globe valve job is because eckert decline. people went back and forth. we shanghaied to their guys and we shanghaied to viewers. >> in the end, he became very better, and i., again, can read in t

entities that helped train kids like you and others to the technology skills so that you can get a job at ibm or twitter or salesforce or wells fargo or bank of america. all of these technology jobs need the skill sets. it is a good opportunity. we are working with entities. that has been putting those skills together. you can get enrolled in these nonprofits and cable brokerage you. you can get job training. i saw some of the kids. they are smiling because they know they have a future with all the these companies. they can move around and choose what it is they want to do. whether it is in the music industry, financial industry, social services industry. all of that will be tech driven. i been spending time making sure the city is safe, making sure we do with our budget. it is an exciting for me because it is the first time i ever did this. i have not been a politician before this. some of this stuff is coming at me in a new way. i have been working for government for 23 years. i try to use that experience in making sure and make good decisions on your behalf. so with that, some of you had s