now phillip morris is saying we have this delivery mechanism, let's ride with that idea. >> it giveshem an advantage over some of these e-cigarette, they being -- vaping startups. tobaccohe use your old and they have this whole decades and decades worth of learning about how to manufacture cigarettes. they are putting that to use by techie that onto the cigarette device. oliver: turning high-tech into a cover story was of the job of our creative director. >> talking with the editors about the story, thinking about how this industry wants to be like silicon valley. the most recognizable silicon valley icon is steve jobs and the most recognizable cigarette industry icon is marbaoro man. oliver: this is your combination. black andthe iquos, white, tells about the color choice. copy, i think most people are familiar with the steve jobs picture on the buyer fee, we were looking at them side-by-side. a lot of time -- oliver: a lot of times you guys have words or phrases, this is straightforward, it is an image. i guess you think that is a strong enough image. >> the headline we came up wit

phillip morris is saying you have this new delivery mechanism .et's ride with that idea and include tobacco in it. >> yes, exactly. that gives them an advantage in some sense over these e-cigarettes that you've seen pop up, because it does use real wholeo and has this decades and decades worth of learning about how to manufacture cigarettes incredibly efficiently, so they are putting that to use and melding that onto the techie gadget, the cigarette device. oliver: turning high tech cigarettes into a cover image was the job of rob vargas. thinking about how the tobacco industry wants to be more like silicon valley. is steve valley icon jobs, and the most recognizable cigarette images the marlboro man. carol: this is a combination. a common: this is nation. tell us about the color choice here. it is pretty straightforward. i would say most people are familiar with the steve jobs image from the be all the free -- from the biography. we wanted to get the color right, the hand positioning, and the classic steve jobs glasses. oliver: this is very strai

you are talking specifically about phillip morris.hat is the world's largest publicly traded company. let's focus on them. what are they doing? >> they are most excited about this new smoking-non-smoking futuristic tobacco gadget called the iqos. it is somewhere in between a traditional cigarette and an e-cigarette. it is basically a hybrid. oliver: explain what that is. for those of you that do not smoke or smoke traditionally. >> i have not seen it before. you get these tiny rolled tobacco like miniature cigarettes, and then you jam one into this holder and it looks like some sort of futuristic pen device, and it heats the tobacco without combusting it. there is no smoke, no foot -- fire. in theory it is healthier than , smoking a traditional cigarette, and there are also flavored. but the difference between that and an e-cigarette is that it has some tobacco in it as opposed to nicotine. iqos does. it is this category called heat not burn. they are excited about it. actually they launched in 2014 , in japan and italy originally. it

is it ridiculous to think that maybe phillip morris comes back in and does a partnership or takes overbuys out altria? i think there's a good chance. valuation, balance sheet, consolidation in the space, coca-co coca-cola, a great stock but look at the variations in price it's had oh the last five years. it is on the down swing of a series of down swings. back to you. >> 45 seconds. make the case for coke. >> it's simple. get the chart. we've got coke. the chart looks terrible. i get it. guy is 100% right. this is an undercovered, way underowned stock. it is a name people have disregarded over the past year or so. they're turning around. they're going through a refranchising process. they're going through a bottling business. i want to own this. there is a new ceo coming in. he is going to turn it around. 3.5 dividend yield. a turn around story that's intact. they'll repatriate. probe close to $5 billion. this is a name you must own from the standpoint that it is not a stock we're pushing. it is just a sugar high. >> i tell you what folks at home. that's a great job by david. >> questi

if you bought phillip morris?972 when cigarette consumption went down, if you held it, you'd be a wealthy person. while broadcast tv is probably a 0-1% growth industry, the industry generates mountains of free cash flow. there's free scale economies from operating multiple groups of stations issue and as long as sbraes ra interest rates are low, use leverage. they created great wealth by using leverage, and they created great shareholder wealth. >> larry, running out of time, jumping in, before we go, there's a thought if we get corporate tax reform, other countries that have high taxes may also have to respond, japan has the highest corporate tax rate in the world. do you think there's a chance if we do it, the world does it, and is that part of the reason why sony is your biggest holding? >> no. i think the reason why sony is the biggest holding is the value of the game business. if you put the similar multiple on take two in the electronic arts, the game business that sony is worth more than two-thirds of the m

adobe, j&j and phillip morris. >> you have mixed signals.k, all right, it's just production. the saudis are pumping stuff out. at the same time you have a little bit of concern where the demand is. what is it that made them produce more. were they expecting greater demand? we should be expecting greater demand? because we are expecting the fed to raise rates. that's like, duh, a foregone conclusion. people are looking at these where you might be able to pick up growth. >> yes. >> irrespective of what's happening with the bigger picture on the economy. >> meanwhile in the opec report itself, did produce over 10 million barrels a day. other producers cut back. the idea was supposed to be, kind of, hey, they're cutting back. yes, we've increased it and it hasn't changed. the market took it and slammed it. >> market was not positioned for anything that could be even interpreted as bearish supply news. i think that's what you're seeing play out. i don't think we're sort of looking at what oil is doing and saying massive demand shock. this is an e

some of the all-time highs in the market included phillip morris, csx.izzard which has been a top performer, facebook and visa. >> we're talking about growth. organic, traditional growth stock. they are kind of the havens in the cyclicals that will benefit. in fact, gdp for the first quarter got revised down to 1.3%. so obviously i think it's time for some of those economic surprise indexes to roll over. that's pure math. they have to roll over. they can't keep rising. i don't know if that's what's weighing on those sectors or we're resting. >> mike, you think the place to be at some of those dividend increasers. how many companies are there whose valuations you thought you were comfortable with? >> well, i think there are many areas of the market that are still attractive. you mentioned health care. there's a lot of controversy around health care and that remains to be seen how the fundamentals of the company sort out the policies which may take some time to negotiate through congress. for example, j&j is a good example of a company that has attracted a