here's the bottom line, if you look at 2012's eight best-performing ipos. names each gave you a double or better, the lesson here is the market thirsts for growth. ipos were immediately rewarded. and mortgage plays like home street and nation star show you the market ultimately rewards the big-picture growth themes that i talk about all the time on "mad money." let's go to joey in florida, please. joey? >> caller: boo-yah, jim. >> boo-yah, joey. what's up? >> caller: hey, i'm looking to sell my position in energy transfer partners and put the funds into another high-yield mlp. what are your thoughts on the recent ipo? >> i think it's fine. i actually am much more of a believer in going with tried and true. i suggest that l.i.n.e. is a little better, kinder morgan partners, and i did blow out of energy transfer because it was just frankly very disappointing. when i say i blow out of, i don't have any stocks myself. my charitable trust left etp. rob in florida, please, rob? >> caller: hey, jimmy boy, boo-yah. if it weren't for you, i probably wouldn't be able

the stock is at 31.25, the ipo is 38. a lot of people own it on the ipo price. i looked at the april 35-38 spread. against your long stock, you buy one of the april 35 calls at $1.20 and sell two of the april 38 calls at 60 cents each. that's $1.20. you're not overlaying any additional risk to the stock that you have. the stock goes up or down. you're going to make the gains. like melissa said, you're capped at 38. between 35 and 38, that call spread can be worth up to $3.00. above 38, your stock is called away, but you take in $3.00 in gains. you've effectively sold the stock at $41. that's up 30% from here. a lot of investors would be happy about that. >> oh, yeah. >> i chose the 38 strike because i think there's going to be serious resistance there. there will be a lot of sellers who will be very happy to be back at the price they bought it. >> the syndicate bid will be the offer for everyone who got in at that stage. this is a stock that's reasonably volatile when you have that type of situation, what ends up happening, you have high options premiums. if you

. >> we had the ipo that was botched. you see zuckerberg come out and actually speak about the stock, it pops. then you saw that short covering phase, but now it almost feels like they're setting up to disappointment. or you feel like the stock could be sold if there's some type of app or something that no one really gives anything about. >> here's the thing. it was a public relations nightmare. we go back to the hoodie. the whole thing with facebook is, if you believe in the ecosystem, you believe in facebook, because there's a billion users. if you monetize a billion users and growing and mobile -- >> how many actuive users, how many people put facebook up and never do anything with it? >> well, you are always going to have some breakage. if you look at how fast they have grown and the penetration now -- the, you know, when it came out at the ipo, that was before mobile. now, we're getting into the mobile -- >> i got to take issue with you on the hoodie. i think they got multiples of revenue that they wouldn't have gotte

you guys took a lot of heat over the facebook ipo. i think some of it was warranted, some of it wasn't. shares of facebook are now trading about where they were; right? >> yeah. >> in the 30s. however, there's an issue with the ipo process where you guys -- this is totally legal, but you did it, you guys gave certain guidance to institutional investors, individual investors didn't get that guidance. not saying it is illegal. it is clearly legal. however, should that process be changed? >> i don't think it should be. personally i don't think it should be. there's a reason for that. the reason the process was put in place was that individual investors would not be whip sawed by the latest piece of research that might cause them to suddenly thunder into the stock which is actually what everybody thought was going to happen on facebook. many pundits the day before facebook thought that stock was going to 80, not to 20. the smart money had it going to 80, not to 20. the rule put in place and i guess it was the sec was designed to protect in

the ipo is expected to price next thursday. eal could range anywhere from $1.80, $1.89 to $2.15 billion. and it would value at zoetis. let's bring a little algebra, i think it could be worth $15 billion, and that's current price range, it would have about 20% upside from where the stock is expected to start trading. don't you want that? zoetis has been a slow and steady grower, about 6% annual growth. but i'm betting they can accelerate that, take that growth rate up after the spinoff. and that, by the way, has been what has happened to most of these spinoffs from the health care business. my view here, as long as you can get zoetis for less than $26, you need to get in on that deal. remember, though, we don't like to play in the aftermarket even with spinoffs. so if you can't get shares, don't try to snap this after it starts trading. keep your bat on your shoulder and wait for a pullback. it came back, a lot of these ipos have come back and only after they come back do we take our bat off the shoulder and do a swing. if you do

the chances for an ipo. e day after the president's inaugural address. what's her take on the president's argument about the debt ceiling. [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit. >>> good morning from l.a. one of the biggest events that investors have to look forward to over the next year is the prospect that hilton could be returned to the u.s. stock market. now, remember, blackstone took it private at the height of the market. $26 billion, a whopping $26 billion in 2007. the question that investors and the rest of the industry want to know is, in that private environment, what has private equity done with hilton. for the first time we'll start pricing apart hilton for the sake of investors and the rest of the industry. joining me here is the president for development at hilton. welcome to the program. >> good morning, simon. >> what have you done in particular, what has the international expansion been for hilton

the mayor spoke of ipo, which he introduced at the very beginning of august. and for the first august in memory and maybe even on record, we suffered zero homicides in that month. unfortunately one homicide in the city is too many. we've had 67 this year to date, which is up over the last couple years, record low. still the best we've had in 10 years absent those record lows. gun violence is down 4% in san francisco. largely because of community partnership. things like our gun tip line which i'll give you, 575-4444 and things like the gun buy back program. if you don't think that one of these guns or any of the other 2 96 * guns that were recovered here of the 300 guns that chief howard jordan and youth uprising were able to get over there weren't going to fall into the hands of somebody that might use them, you're betting against the odds. the shooter in newtown, connecticut, got those guns from his home, legally purchased firearms. we took 2 96 guns off the street here thankful to dr. joe marshall and omega boys club. over 150 handguns, almost 150 rifles an

since we launched the ipo we've

since we launched the ipo we've seen some rules no homicides in august since the last thirty years. and homicides and gun violence

since we launched the ipo we've seen some rules no homicides in august since the last thirty years. and homicides and gun violence down over the first part of the year citywide. thank you to all our police officers that can thank you pastor bryant and to our faiths leaders. thank you. we need to save young men's lives and we can be safer still. weigh are getting more pollens on your streets. i look forward to sign into law the by an of hallow points bullets. these bullets have no place on our streets. and there's another type of violent crime where often no weapon is involved and that's domestic violence and abuse which effects whoo too many woman and children in our streets. we must prevent and report domestic abuse. i pledge - and i pledge to continue to working on the pleasantly with our partners in the community to bring to issue the violation that will prevent woman and children >> i'm also proud that under our probation departments and working with police and other city departments san francisco in 2012 has responded to the challenges a of realignment and intergrating non-viol

they're putting a $38 target essentially the ipo price assuming a year out. that is in line with the internet companies, so when you have 2014 numbers on higher estimates now think the valuation is better. cheryl: it has been fascinating to watch that stock. the ipo until now. thank you. >> thank you for having me. cheryl: now have 37 minutes to go. regional banks are we to make money in a tough environment. quarterly profits rose to the highest level in 10 years. bob jones talking about those drivers. don't miss it, our exclusive interview next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." have given way to sleeping. tossing and turning where sleepless nights yi

and, so, we've been working together on creating a program which i announced some months ago, the ipo program, the ability to work on things that would interrupt and intervene earlier in the behavior patterns of people that would be both victims and perpetrators of violent crime in our city. to support the police department and law enforcement system of doing more predictive policing using both data and technology to help us do that. and then, of course, i think the most important part is to organize our communities and work with community-based organizations, families, religious groups, and everybody that's on the ground to find more ways to intervene in violent behavior out there and utilize resources such as education systems, our community jobs programs, others that might allow people to go in different direction. the unfortunate and very tragic incident in connecticut in sandy hook elementary school of course heightened everybody's awareness of what violence can really be all about. and as we have been not only responding, reacting to this national tragedy that i think president

since the ipo last may, facebook shares are still down 17%. welcome, sue. good to see you. >> good to see you, too. and with us for the rest of the hour to break it all down is david kirkpatrick. he's the author of the book "the facebook effect." david, do you think they have to do something quite significant and as i understand you think it might have to do with mobile. tell me. >> i think it could be one of several things. every thing they're doing has to do with mow bowl but there's another area that could be involved which is search. search is pretty crummy on facebook. i would be watching for something to do with mobile or search and beyond that it's pretty hard to say at this point because they're keeping pretty tight-lipped. >> a lot of people believe it's going to be a phone. you disagree. >> first of all, they're not committed to building a phone. they're so committed to their platform. they're going to continue with the way it works on ios and apple is and everybody's blackberry. it is possible down the road that they might improve the way software

at $30.79 it's far below the ipo price we saw last may. the trial that will never end.le and sam sung. last night judge koh said she would not reduce the penalty against sam sung for copy right infringement. sam sung willingly copied the iphone. let's check on markets. jackie deangelis. good morning. >> good morning, scott. the future is higher this morning. investors shrugging off a report showing consumer confidence dropped this month. tech could get help today. we're going to get data on private sector jobs and fourth quarter gdp. the big milestone there. it hasn't hit the mark since 2007. it rose 72 points yesterday. the nasdaq slipping a fraction to 3153. another big story on toyota recalling more than 750,000 ka ro las. matrix vehicles in the u.s. the air bags could deploy when they are not supposed to. toyota received reports of injuries and two accidents. the automaker is recalling lexus i.s. vehicles because of a problem with the windshield wipers. they could not work in certain conditions like snow -- exactly when you need them. >> john and laura, digital arti

the company has reminded me it used to do this often before the ipo. be live blogging from inside the event that starts at 1:00 p. be m. eastern and i'll send you all of the updates and photos we can get out of there. >> look forward to that, julia. facebook shares are up 60% over the past three months. that's not enough to convince our next guest that now is the time to get in. joining us from new york city, why no love, porter? >> zuckerberg in german means mountain of sugar and i think that zuk has really created a mountain of sugar out of facebook. the announcement, as julia pointed out, is going to be underwhelming. mobile is where facebook has to go if it's going to realize its potential and right now they have over 80% of the facebook one billion users are outside the u.s. 14% of the advertising revenue goes to mobile, while 60% of all users use facebook on mobile. there's a real disconnect there and they have a lot of work to do to get back to even close to the kind of vision that mark zuckerberg was articulating a year ago. >> a mountain of su

that is what got them in trouble with the ipo and is probably their achilles' heel. a tendency to let expectations get overheated. and then of course when they announce, the disappoint. in this case, i think they did something that was appropriate, they just let the expectations get out-of-hand. > is facebook losing friends? it was just reported that 1.4 million people decided to get off of facebook at the end of december. 167 million are still on, but what's going on here? > > that is exactly it: people are tiring of facebook. they are not getting the benefit out of it that they had hoped to get, and the end result is they are finding it annoying and they are finding it to be a time suck. and so they are walking away from it and doing other things - a lot of them are going back to doing their work. so the end result is facebook has been bleeding people, and this is one of the things they are doing with this announcement, trying to keep people on board and get back into a growth mode so they are not becoming the next myspace. > will it work? > > they will have to posi

>> the ipo sets the common stock price, you mean the secondary?> caller: yeah. >> okay, yeah, secondary can depress, the stock will shoot up and then, what the brokers do is they soften it, they announce that it's a secondary and then the stock trades down, down, down, and boom, they slap it on and often times it's the buy of a lifetime. i often like to buy secondaries after the market has been softened. think of omaha beach, they soften it up with the navy and bombing and aircraft and then the soldiers go in. let's go to vince in colorado. >> caller: hi, jim, i'm wondering, i'm a business and economics student here in the university of denver, tee bow, land, if the markets stay strong because of the new medal class, there should be a way to take advantage of that, i think the firms will be surprised if they switch from exports to the internal market. >> how about the cpfl energy? buy utilities, when the country grows utility comes make sense. i think it's the best way to go. joe in arizona, joe? >> caller: hi, jim, a big desert booyah to you. fir

let's talk about the ipo market. u have, since 2006 certainly there was a slowdown from 2010, down, 11, 2012, another slowdown. what do you expect for 2013. >> for 2013 the money is vibrating in everybody's pockets and in the cash balances of these brokerage firms and accounts, what have you. we're going to have a slight upward bias toward deals that are going to come public, but again it will be a very selective market and it is very clear that investors rule the roost. it is no longer issuers. liz: we never really know, okay, who will come public. there are names. david literally ran in just handed me the list. i will name some of them for you, twitter. everybody talked about. do you think they will pull the trigger and go public. >> i think at some point they are. this is the situation, but they will come out with a small offering relative to the market valuation. it will not be another facebook. liz: gilt groupe, we know they stumbled, did they miss their window. tableau, monkey. those names. you say there is bett