he's john stevenson, portfolio manager. john, thanks for joining us. you know, everybody this afternoon was talking about what is wrong with apple and it's stock was selling off, and you're adding to your portfolios, what does apple have going for it? >> pretty much everything. the stock is cheap. that's the first thing. it's trading at nine times ex cash versus the overall market of 15 times and tech sector 13.6 and if you throw in the implications of cash, you're at 12.7 times or so, so still cheap. it's got early days with china, brazil, india so emerging markets are a great story. it hasn't done anything in enterprise, plus it has a ton of potential. it's got 575 million customers that they can tap into new services or additional offerings. that's something and a widely are you moored, i watch, i tv, combined ipad slash mac book air. there is tons of potential the company has and it's very inexpensive. it has everything going for it. >> john, the company had record revenues until the quarter and beat estimates on the top and bottom lines and yet, i

on the phone, john stevenson. john, first to you. dan did pretty well with yahoo!ite what you may think of him or the "vanity fair" article on him, would you invest behind him? >> you know what, i wouldn't. i'll tell you why. this is not a cheap stock. it's trading at 16 times p.e. and that's at a premium of a couple to its peers. the whole business is really under pressure right now and the reason is natural gas prices with the cold weather and everything else. that's been a huge advantage, is that natural gas feeds stocks that have been so huge. prices up 26% just since the beginning of december. propane which is 30% of their feed stock, so they are getting squeezed and the whole premise right now going forward to add any value is they have to harvest $4 billion worth of projects in the next year and a half or so. that will be tough order. they have to do it in a premium to the current multiple. it's an expensive stock. should be sold. >> it should be sold and it is expensive. what do the charts tell us? >> i'll go the other way. this is actually a compelling tec

richard ross, john stevenson. , jc penney, some big names coming in defending the stock the last few months. it hasn't helped. is there any reason to own jcp? >> oh, god, not at all. this is just a terrible name. >> how do you feel? >> i hate it. they will burn through $2.6 billion in cash this year. the problem is they just can't get any momentum whatsoever. the whole business model is predicated on discounting, couponing and clearances, so people come in the store, traffic is way down. last year it was down 13%. this year, it's down roughly 8%. once they get in the store, they don't want to buy. the conversion rate is negative. it's negative 5% right now. people aren't buying. it's not that cheap on valuation. it's a real concern whether or not this thing actually exists in a year or two because it's going through so much cash. it's got a very high lever balance sheet. i see no reason to be here. >> we asked for two negatives. you gave us 16. are there any positives out there on the chart of jc penney? >> you kno

>> john stevenson. your product enabled a lot of people to move to the cloud to do things from multiple devices. what do you think the next interration of cloud computing is going to do in term of behavior, new product services, just the way we socially interact? >> i think we are still early days. i mean, obviously people know that mobile is a big deal. i think they underestimate the degree to which it is completely going change how we work. how we play, how we do all the every day things. we think about what people do with drop box. it's what you expect. it it's a easy way to share photographs and collaborate work, easy way to have all of your stuff, notes, everything with you whenever you are. we just -- we think we spend most of our time thinking about ways to make all of those things a lot better. i think in term of drop box. the way you use it with experience is like in a custom years or next year or maybe this year will be pretty different from how people use it today. >> thank you. >> my name is

davos and davos is all about connectivity and the opening session ability connectivity john chambers, randal stevenson got up and said it was all about the internet of things. and internet of things is kind of connectivity devices, google glasses, this device, the sensors in your car, it could be the google nest product that they just brought. that's the internet of things. today they say there's going to be -- there are 10 billion of those internet of things out there and that number will grow to 50 billion by 2020. what was more interesting to me is today prime minister benjamin netanyahu referred to israel as an internet of things in terms of their overall connectivity. this internet of things concept is really getting some very, very broad appeal. >> and you think that google is at the forefront just because they're ultimately going to, for a lack of a better word, own the better part of your life. i mean, the way you drive, the way you live in your home because of the nest deal. >> there's a lot of winners here. there's the infrastructure guys, the ericksons, the nokias, the ciscos, the junipers

my grandmother said this young man drove the john kennedy almost got nominated. stevenson threw open the convention. fascinating. the other two candidates, as you know, from the same state. kennedy says later, perot in the book. i have not even read it. that was the best thing that ever happen because it would have been a running mate of stevenson. i remember bobby kennedy sang he bought for one because he said christmas cards to all the delegates. he learned something. and i'm so glad you mentioned here. that book, people from murray, is the very best. he died about a year ago. he was a wonderful, wonderful writer. those little -- if you have not read it, a little synopsis, it absolutely miracle. i'm so glad you said it. but now the question, you did mention joe mccarthy. and bobby kennedy, his brother, worked on the mcclellan committee. would you address that? and in keeping in character, any mention -- the constitutional amendment provided which the senate had to vote that gave d.c. their right to vote for president, the 23rd amendment. what was his interaction with the

john: in 2011 arizona sheriff's office used to armored vehicles and a s.w.a.t. team to raid the home of cockfighting? >> writes even the action hero stevensonlle had been signed up as the deputy so there were tv cameras following and drove a tank into this for guys living room. john: rethink we have video >> witthr rlout roout. his.w.a. te? the t ithrou -- fr theentan degned in usn bale shting0 caber itioevenhe mitaryas resictisin the u i thecockghti vestatio hn:et'ear frthe poli we ve t cnty shiff om ohio, russ martin you say it is the good thing? >> i do. good airplanes land safely it is not news but when tragedy happens it becomes news and although radley balko does make good points a lot of it is anecdotal and i will tell you day in and day out law-enforcement service was provided by the judge and vetted with probable cause safer because of these tactical units. john: a drug raid or a cockfighting bring, why all the early morning off your door down stuff? >> i have been associated with 150 or 200 raids but said great thing. john: yes but for drug raids >> yes we have a matrix involving the risk if they have a criminal history, the guns

stevenson, ktvu channel 2 news. >>> today begins what some called the biggest improvement ever in american healthcare. every residents is eligible to be covered. ktvu's john fowler has been following the story and joins us for what it means. >> reporter: the affordable care act kicked in today. for most people little change. for others profound. >> you can just date the bottom. thank you very much. >> reporter: 400,000 californians today have healthcare. some for the first time through the affordable care act. including robert. >> makes me feel wonderful. very glad the way things have been done. >> you know what i need? >> reporter: she says new insurance enrollees must pay their premiums. >> they should have printed out a temporary i.d. card showing they have insurance. >> reporter: they wanted to be scene for flu systems. they pay $600 a month for high deductible coverage. covered california may offer a better deal. >> hopefully it will be good for lot of people that don't have insurance. >> reporter: insurance companies hit with new taxes today about $100 billion to be passed out in 3% higher premiums. still she says today was over due. >> this may be