. >> ibm and apple have come back from the dead?les ism as like using warren buffett as the example of a value investor. be emptied tot keep going back to the same two companies. is true that there have been rebirths and re-carnations come but you can't run a business based on the idea that you are the exception. why do you own yahoo!? >> i wanted to buy alibaba at a 29% discount. thank you so much for joining us. >> coming up, we discussed what the federal reserve will be watching for liftoff. ♪ --: i'm joking wiesenthal joe weisenthal. "what'd you miss?" washingtonnow from is matt baset. huge day coming up. you say the fed rate hike is clearly being priced in. what you watching? >> this chart shows one week libor. if you are a bank and broad money, you had to price in this rate hike because the new great falls into that one-week window. we've been seeing these rates marching up like clockwork. feeling pretty good from that perspective in terms of having the tools they need to ask a get these rates up , because a lot of people have

these partnerships with ibm and apple, how much of a help the business?he key is how box is able to leverage these partnerships. over a period of time, deal sizes will continue to grow. i think you will see the results over time. with any cloud model, it takes a while for companies to really grow their dealsizes and that should help their operating cash flow. emily: we have been talking about dropbox and the negative sentiment around dropbox. how much of what is going on ties to what we are seeing with box? >> i think there is a lot happening in the market. the partnership between box and ibm is an indication of what we are seeing in the larger market. the top legacy companies or tech companies, every quarter, hey are losing market cap. there's over $1 trillion in value in those countries. these new unicorns are the people consuming that. box has found a position in the enterprise space. dropbox has the consumer space. emily: what happened to dropbox? om: it is easy to say they are in trouble, but we do not know the numbers. emily: they are also not shari

emily: you do not see them -- apple and ibm as a competitor? meg: ibm, yes, in many cases. e a little bit different. apple is more about the devices in the enterprise, and they would very much like to go into the enterprise, and we obviously need to defend. more on the hp inc. side, but we need to defend. as you migrate -- say you are a cio. as you migrate infrastructure into the next generation that will be required for you to be cheaper and faster and more nimble, the ability to write applications in a new environment, cloud native and mobile, it is going to be important for you to have orchestration, monitoring software. everything has to be automated today. and so we have those kinds of opportunities in our software portfolio. so we play in quite specific areas of software that is a little different than, you know, erp systems, like an oracle or s.a.p. or salesforce. this is not really our market. emily: what about the cloud? what is the hp strategy when it comes to the public cloud? are you going to be a cloud, or sell to the cloud? and do you plan to take on amazon and

commerce is the latest group to raise concerns about intellectual property, market access, and censorship. apple and ibmoncerns. ford is making the batmobile of your dreams a reality. a new patent has been filed. pimco's executive vice president will be joining us as well is the former ceo of morgan stanley. ♪ ♪ corey: holy batmobile, batman. ford maybe taking that concept as an inspiration. according to the patent office, ford has filed for a patent that can transform a car's rear wheel into a self-propelled unicycle. you can set navigate through city traffic and fight crime if you are so inclined. it aims to improve communication between cars and other vehicles. that masks not required. the year that wasn't in technology ipos. u.s. listed proceeds dropped by nearly 40%. 23 technology ipos this year, down from 55 in 2014. the absence of big deals. unicorns stayed private and cap their lofty valuations. they shunned the stock market altogether. i am surprised because these companies have venture investors. we have had a booming market that wasn't up this year. it certainly wasn't down. we didn't see tho

i look at an ibm, and it's a stock that looks cheap, that's looked cheap for a while, and it keeps looking cheap. and unlike the other tech name, for instance, appleok at ibm, and i can't see anything happening in the business that's exciting. if it makes it back, it will be purely as a dividend play. to me it looks -- it's a stock that will continue to look cheap. i think the other two value traps are more generic value traps. i think one of the value traps that i see is all these codes, which is almost a corporate scam. i really don't see the value creation in splitting off these u codes other than you're attracting investors that are so in search of high dividends and high yields they'll buy anything. the last value trap is these emerging markets that look cheap, especially brazil and indonesia. there's a reason they look cheap, and i think jumping into these markets just because they've dropped is asking for trouble. >> professor, it's been great to talk to you. thank you very much for joining us today. have a happy new year. as a fellow value guy, jim, what do you think about those value traps? >> i agree -- well, i agree with ibm. i'm out of

relates to the assets and the trend of that and how that would rely to similar comparisons and for example ibm or apple etc.. >> guest: when it comes to one of the advantages i would say quickly the u.s. federal government has when it comes to the earnings or whatever it may be relative or is a personal private company is of course the private company cannot print money. there is no such thing as an apple currency. they may want one, i don't know. there is no actual apple currency. so there is no good way to make use of the term apple in the comparison between a company and then a federal government in terms of keeping. >> host: the next call on the independence line is jennifer independent lioness jennifer from north port florida. you are on. >> caller: good morning. i am just curious if you have any information about the extension and how that is looking. >> host: talk about what this bill is. >> guest: excellent question. the act provides funding for paying for long-term health care needs of mine 111th responders -- 9/11 responders and the cleanup of the world trade center county were affected negat

ibm? going through a huge transition, trying to find tune that company and move more aggressively into the cloud. could we see something? not: ibm, like applede small acquisitions in 2015. everybody is waiting to see if 2016 is the year they do some thing big. ibm, if you talked to a lot of people, they say they need to do something big and it needs to get better and growth needs to come from somewhere. it could come from the split or maybe it could come from the first really large acquisition that ibm has made, at least certainly genes entire time as ceo. carol: comcast could not get the deal done with time warner cable of the former cfo is in charge of m&a. do they need to do something? should they do something? alex: comcast hired a guy who was the head of m&a at morgan stanley. he is very close to t-mobile, when he was at morgan stanley. a lot of people have speculated that maybe that means comcast will get into the wireless space. i don't know. comcast is in interesting position. they did not let time warner cable. huge deal. a lot of assets at their disposal and they want to do something big. some people think it will be wireless and

and dippers. the dow stocks, again, these eight dow stocks, apple, intel, caterpillar and exxon. >> those are dippers. >> ibm, amex, p & g and walmart. when we asked this question to our viewers, those were stocks in the dow that were all in correction territory. >> all of these? >> all of those guys back then were already down 10% or more from their recent highs. so the question we asked was which one of them represented the best opportunity to buy going into the end of the year? people overwhelmingly, i say a wide margin, picked apple as the dow stock they would most like to buy on this particular dip. and so let's show you how things did. apple actually since that time has lost 7% of its value. >> the people were wrong. >> the people were wrong on this one here. they weren't -- they weren't terribly wrong but they didn't get the best trade possible. if you're looking for what actually did do the best in that group, it was actually old world technology. intel shares. intel shares up 20% just since august sixth. it's had a very nice run. the worst stock among those eight that we profiled, walmart. losing --

remember, we put a bracket challenge up, matchups together, apple in there, intel, exxon, caterpillar, ibm, amex, procter & gamble, andall that sourcing and voting, you picked apple overwhelmingly to be the best stock pick in a time the dow pick took a dip the rest of the year. we wanted to see if the crowd was right on this trade because apple was the overwhelming pick. applefuls not the best pick to buy on the dip for the rest of the year, not until now. look at the performance of eight components since the august 6 close. intel up 18% just from that date, august 6 to today. see how it finishes the year. procter & gamble, the only other winner among eight stocks, up 4%. apple down 7%. the overwhelming pick there. amex down 9, ibn down 1 p 3%, and caterpillar and walmart lagging here from then until today. the interesting part, guys, is that intel, procter & gamble, and dow industrials, again, the only two stocks doing okay in this particular competition here, and they were marginally higher, shares of procter & gamble. intel the big winner, i will say there is something in common here. the animalyst picks, apple has

apple? ibm? >> ibm has come and gone and coming gone. right technology companies tend to start new -- one of the reasons, and i have talked to numerous us specifically about this, one reason i have been critical hard toe acquisitions, do when you spent the leaves of dollars in acquisitions but they have done it, people leave tech companies because they can get better jobs and a second. you have a bad day of work in san francisco, you lick your finger and hold it up to the wind and walk in another direction for a job. they were going out and buying companies to try to get all the people in. yahoo!,beat of leaving leaving yahoo! for decades. ago, there have been massive departures from that company so it has been hard to turn around yahoo!. for the same reason, everyone silicon valley really cares about yahoo!. >> did you say yahoo! has made some of the work act -- worst acquisitions in tech history? >> i would argue aol me to come back. i think there are others. last acquisition in the five years is tumbler and $1.5 billion, more than ins

and that is apple. when you look at today, there are three companies where there is an attempted turnaround. hp, ibmissa mayer at yahoo!. all three of these people are trying to turn around these businesses. meg whitman went to hp around 2001. it is very tough. they are all facing the same challenges. revenues are falling. each of them are trying to turn around these businesses. the comparison to apple was an area -- with an extra nearing co -- extraordinary ceo. they did not release the ipod until 2001. a lot of the criticism is generated by impatience. it is really not about operating. it is about financial engineering. investors want to get their hands on the money from alibaba and yahoo! japan. emily: do you think marissa mayer has any dry powder left? -- i am verystors limited on what i can say about yahoo!. i went on the board as part of a proxy fight. . am subject to a standstill she has shown herself to be fearless and if you look at those other two women trying to turn around tech companies, the street is seeing a lot more patience than they are with marissa mayer. emily: the board is getti

between apple, intel, caterpillar, exxon and then ibm, american express, proctor & gamble and walmart, we asked all of you audience members to vote and tell us which you thought would be the better buy going into the end of the year, you overwhelmingly picked up apple here. so m a was it the best buy? among those eight stocks you were better off actually buying intel shares, they were actually up 18% so far since august 6th to today, actually to yesterday's close, we will say that. proctor & gamble, intel the only two positive ones. apple middle of the pack down side, down 7%, not the best buy. the worst buy far is walmart. if you take a look at the average analyst targets apple still has a high target price, analysts are bullish, they still think 37% possible upside, caterpillar only has about 1% potential upside bases on analyst consensus forecasts. what about the sell, rip side of things, stocks as of august 20th that were clois to near highs, facebook, jpmorgan, mikey, starbucks, chipotle, under armour, home depot and netflix. the crowd said chipotle and they got the trade right.

competitors, but when dropbox enterprise comes out and says, listen, you love us at home, wait until you come to the corporation, yet you have apple, microsoft, ibm it too late in this $10 billion last round? that was before you had all these partnerships yourself that really do box out dropbox. >> i'm certainly not going to spend time justifying dropbox's valuation. what i would say is we spent the past nine years building a platform for the enterprise. we started the company ten years ago and today we serve 55% of the fortune 500. we have 4,000 businesses globally that use the product. you mentioned the partners we work with. we do think this is the land grab we've been investing in for the past few years. and fundamentally building a platform that secures critical corporate information and the various business processes that are around that corporate data is very different than building a consumer application aimed at the sort of consumer or personal market. we do think there's a market for both companies. but we're 100% focused on the enterprise. >> the analysts were congratulatory, good to see you, sir. >> thank you. >> these are young compa

and uncover financial fraud as well. >>> now ibm's watson trend, an app that forecasts shopping trends using online data suggesting that the apple watch is one of the most popular christmas gifts for adults this year. it's far from the only gadget that sold well in 2015. phil reports on this year's biggest tech product launches. >> what a year it's been in the world of tech. from virtual reality to the smart watch. here's our wrap of some of the big tech stories of 2015. apple released it's highly anticipated apple watch which sold more than 7 million units so far. but even with the power of the apple brand beline it customers still chose fitbit as the market leader when it comes to sales. not to be out done, samsung released it's brand new smart watch, the gear s-2 and allows users to make and receive calls from their wrist without being tetherred to a phone. speaking of smartphones, sony released the world's first 4k screen and blackberry revealed the highly anticipated android powered phone seen as a last ditch tempt to make its devices profitable. it is allowing users to film full 360 degree videos and images. but if you're

and how that might relate to similar come parsons and, for example, ibm or apple, you know, equity ratio, et cetera. >> one of the advantages that the u.s. federal government has when it comes to earnings ratios or whatever it may be relative to -- as opposed to a private company is, of course, that a private company cannot print money. there's no such -- there's no such thing as an apple currency. they may want to, i don't know. knowing -- there's apple may, but there's no actual apple currency. so, certainly, when you're talking -- there's no real good way to use it for apple again and then two apples can be between the company and the federal government in terms of its bookkeeping. >> okay. our next caller is general for from north port florida. jennifer, you're on with neil. >> i'm just curious if you have any information about tdroga extension? >> yeah, talk a little bit about what the droga bill is. >> sure. excellent question there. the droga act provides funding for paying for long term health care needs of 9/11 first responders. and people who, on september 11th and in the after

it's not how much you're spending but how wisely you used it and they quoted apple steve jobs saying at the time they invented the iphone that ibmrobably spending 100 times more than they were. so part of it is making sure that you're investing -- >> of course. but you have to create an innovation machine. it's not 3%. it's more like 10% for medical technology and more like 20% for pharma. you're not going to do it on 3%. all you can do is some short-term product innovations and the great companies i have been looking at are companies like amgen and roache and those making the long-term investments. that's why they're doing so well is they're making the investments and rolling off the line. you see it coming and i think mike pearson is going to have to get back to doing that or he's going to be forced to spin off businesses or get something to raise cash and i would expect -- this is an unfolding story. you'll see it a lot more but i don't agree with that business model at all. i think we should go to venture capital and make investments in them. i believe in being an industrial partner. we had three to four dozen of these inves

and plus they have barely scratched the surface of enterprise market. earlier this year they announced the partnership with ibm. there's a tremendous opportunity for apple to penetrate the enterprise market. >> so you're now willing to entertain the notion that maybe apple is facing some competition, just at the margins, at least? they're not getting the kind of topspin off the sales of the iphone that they used to get because of that competition out there and let's face it, people are using other devices as well. not just their smartphone anymore, right? >> well, the iphone 6 has been the best selling iphones of them all. the iphone 5 outsold the 4, the 4 outsold the 3. each one has sold better than the iphone before. and has not shown any indication of slowing. >> but prior results don't guarantee the future though, do they? >> well, there is two things that happened in the phone market. one that phone users go through an upgrade cycle every two years. when you tend to be an apple user, you tend to stick with apple. i think one of biggest christmas items this year will be the apple watch which people who get apple watches will then also continue to bu

apples, that have much lower payout ratios. they're not really dividend stocks. they're growth stocks. >> interesting two of the new dogs are technology companies. >> exactly. >> a cisco and ibmugh you would certainly say ibm of those two is the old school company. >> but more mature. >> what's interesting about ibm is it truly did get there by virtue of the stock going down. ibm has emphasized buybacks over dividends. it does not have a terribly high payout ratio. cisco, like microsoft, has become -- old tech companies have become cash cow businesses that are sharing their cash with investors through dividends. >> value can become deeper value sometimes. >> that's what we've seen this year. >> thank you very much. mandy, over to you. >> we have a triple digit, 130-point gain for the dow as we speak. it's currently sitting 17,548. it's still down for the year but why it could hit 19,000 by the end of the first quarter of 2016. that is all coming up. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited