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tv   Fast Money Halftime Report  CNBC  May 7, 2012 12:00pm-1:00pm EDT

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we have legendary adventure capitalist to talk about his latest product lunch, glue ten free, pizza. >> thank you so much. four hours to go. the markets are down but they are not down all that much. >> we will hit him of course with gnat gas and where he thinks it is going today. europe backlash. how should you be trading regime in france.
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warren buffet says you should keep buying stocks. he is. and the street makes fast friends with facebook as mark zuckerberg pounds the pavement. the buy rating on the stock. welcome to the fast money halftime report. there is lots it's fair to say th this. >> i don't think anything has changed. a big surprise. france, we knew that was going to happen. the rhetoric will pick up in france. we move to the elections. greece going out of the union.
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in the meantime there was going to be a -- i am still bearish on the u.s. economy. i think it is around 2%. >> you said this is worse. either you pay attention to what the market does and you react to it or you do your own work. you make your bets based upon that. >> you had two monthly jobs, numbers that were really punk. it was really trending lower and the earnings, i don't think they were that good. even worse than they came out.
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>> i think as i said to you, last week was the time to be selling off some loans. there is a tremendous tug of war that is going on. we still don't know what monetary policy is going to be. with all that being said, i listened to what warren buffet said this morning. you have to be tactical. you don't have to have 60 million to put to work on a friday afternoon. that's basically an n essence saying i have no clue which way the market is going to go but i know it's going to move significantly. you took it off this morning. that trade worked. you are playing a trading range
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right now. that is what is staring us in the face. >> you have been by and large bullish, more than most on the desk. is this a buying opportunity? would you buy more today? >> i bought some, but we just didn't get the flush out of the market. >> we knew going into this election that holland was going to win. and i was hoping that i would get a chance to buy us down 160 again today. back and forth as i said, where will the euro be? 130. >> if you don't think we will get a chance to buy lower.
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>> i am waiting for unusual activity. i make a trade when i see an opportunity. i anticipated that that opportunity would be a sell off. >> you can take the european results. the market is voting perhaps a different way than some people thought it would today. yes, we're. >> the european banks are up. >> french banks are up. >> there was a change that happened over the weekend. europe is making a slow step towards growth. some sort of growth plan.
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that being said, here in the u.s., we still have the one issue that keeps coming up is the fiscal clip here in the u.s. everybody that i talk to. >> and his take on what is -- great to have you on the show as always. what a story. energy stocks have been lagging. where do you see oil going from here? >> obviously, like eight bucks
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in the last week and a half. the traders report. more importantly, i think the phenomenon may be more of a phenomenon in energy and you want to look back and probably just shut the doors for a little while. >> i am always blushing. the only thing that bothers is me is i asked tim tebow why it is going down, that means it is usually going down more. >> you raise the real issue. raising the requirements. >> that's nonsense.
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>> the ultimate driver is what is going on in the far east. right now the markets telling you what the rest of the market doesn't know. when a short term can't get hit, everyone will have an excuse. that makes sense to me. right now with oil down a buck, although it is two dollars off the close today. 5 i am afraid the sell in may phenomenon will take over. i would be defensive when it came to oil.
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>> the opportunity could be natural gas. when you look at oil, is it time to make that trade? >> i think that everyone is trying to make the trade to gas. like everybody else, this is going up. i think that you are still going go ahead and see if there is no hurricane season you will see a september period of time where you will see sub $2 prices.
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when sources are going hit everybody in the face. i think you will see prices up two bucks. dramatic weather phenomenon. >> on the nat gas front what do you make of chesapeake? >> i am not a shareholder activist. obviously you have got to take your hat off for building chesapeake. >> if you to are really running money to other people than yourselves you should probably disclose it to everybody. >> you made it a bik on this show. >> we have lined up you can't get much worse.
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now is not the time. i don't really think that now is the time to speculate on the price of a $20 move up in oil or anything else for the timing. i am going to have a better place. >> china is producing it at a lot lower. >> he thinks it's going lower. there is going be a better one. >> i agree with them. he is mark fisher. number two i agree because the trend has been lower and a lot
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of speculators go in there. institutions don't know what they are buying or the dynamics of the market. >> it's coming out of the market right now. i don't know what the actual dollar amount is. i think there is more to come. >> had this to say. perhaps the markets are right. it may not br a big deal if they leave. >> maybe at first blush was
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going to be france. but it certainly seems if you take a step back at what happened in greece may have a longer lasting impact. >> we have already had our greek moment. . at this point, what happens in greece is a little bit of a side show. esspeshlly because in our forecast, really another round of election is quite possible. in the next 30 days, the greek population is likely going to be told exactly what it means to be voting for parties such as gold and dawn and so on. other opportunities to express doubts with the leadership that has been done and now they will
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be told what the potential consequences of that will be. greece is a bit of a side show. from this point on, greece matters less and less. >> you agree then with jim who says it may not. >> the markets would test the fire walls for sure. also we would need to see flexibility and the new precautionary and i will kidty line whether they could handle a spanish banquet on what our strategy says would be around 125 billion euro. >> whoa. a little echo in here.
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>> very god-like. >> whoa. there is two two sides to every trade. >> what really matters right now is that france germany relationship and we have a german election coming up. in my mind the question becomes what kind of concessions do they need to make to win the elections and does that impact the france and germany relationship because if that splits then the euro zone will likely split. >> you are absolutely right in terms of the frankoier man relationship. everybody knows this.
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the foreign minister of germany.
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>> let greece go. i think that is the best thing the that can happen. the spotlight will be on germany. it is favorable for global markets. >> okay. as we head to break, take a look at bank of america. should you be buying or selling some of this top name? our traders will make that call next.
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>> they are very attractive for n the long term. same thing i said in october of 2008. i didn't know where the bottoms would be in the year. but equities producing businesses, good producing businesses are a great thing to own over time and they have been a great thing to own for several hundred years in this country. they will be a great thing to own for the next 100 years. >> buffet says he is buying stocks but should you follow his lead? >> i like three of them a lot.
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then you take a look at visa. that gives you an opportunity especially with a stock like this. because i don't think visa is doing anything. not a single thing wrong. i think this was a steal. and then ibm, they increased the share buy back, the dividend. they're going to earn $15 a share. a phenomenal company. those would be my three top picks. >> if you look at some of the other holdings. let's debate coke versus pepsi. what they see as a win win situation. or things don't really happen .
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>> it's a lot less complicated than the snack business. i have been looking at pepsi. i am not going to buy it now with the upgrade. it's a cheaper stock. but you're paying for less growth. you stick with coke and wait for a pull back there. >> that's the way i would play it. walmart, it's fine but not exciting. >> quickly, wells fargo as a financials trade right here. do you buy? do you buy a regional?
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do you buy any financials. again, i am tactical. i am not doing what warren buffet has. >> so you're saying the move in stock today in bank of america is the turn overbounce? >> i wouldn't call it that. >> buffet also owns proctor & gamble. >> do you not like it for the same reasons. >> can f you look at it.
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they are greting pricing. of the major competitors, look at the uni-lever, they are all getting price. proctor is getting price, no volume. having to roll back some of the pricing that they mentioned on the conference call. you have seen some of the ability of the company to push their operating margins up. but they are executing very poorly in the developed markets while their competitors are doing so and taking market share to boot. >> that would change your mind. what could execute better. when i see that headline i should be buying proctor and gamble.
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>> thanks. >> thank you. >> do you dislike it for many of the same reasons. >> we are heading to the currency markets for that trade. and wednesday and thursday, the halftime report will be live at the salt conference with glg. tune in to find out where they are seeing opportunity right now, where they are putting their money. good work. 5 you have to dig a little. fidelity's etf market tracker shows you the big picture
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on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies.
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>> a big settlement over off label drugs. the virginia attorney general announcing a $100 million
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settlement involving his state and 43 other states. >> involving abott laboratories. we don't have all of the details on that. but this $100 million settlement announced by the state of virginia on behalf of 44 states would be the largest consumer protection settlement yet. they can't necessarily speak for themselves. drugs that are used to treat di men sha and other 'tdisorders. back to you.
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>> all right, back to you. time now for some fast fire. our traders are fast. but sometimes they get burped. take a listen to what steve wiess had to say. >> i am going with aig. i own it in size. to me they are just going liquidate the assets. it's going higher. >> all right. the treasury department announced a third offering over the weekend. i bet it was tough to look at you when you were playing that call of yours. >> however, it will teach me to agree with anybody in this show. insider trade something alive and well. despite the down mark, much more so than the market. now we know why.
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they are -- i doubled my position. making money on it. 5 i am still there as i mentioned. that is more of a trading position. it still works. >> more conviction than last week. >> i agree with them. huge volume today. so far today, you have got the wash this morning. the stock is on the high for the day. touch the 50 day moving average. >> shook the euro zone. our next guest says that ongoing european worries have hurt investor sentiment. so what's the play and what's the best way to play that uncertainty? let's bring in win fin. welcome back to the show. >> it was a pleasure, thank you. >> are you surprised that the euro seems to be holding up a
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little bit better . >> silt really an iron other export to china. i think the china numbers are going to come in before we turn around. u.s. story is slowing. your owe zone is in session. not a great environment. so i am a bit nervous near term. >> and i also note if we switch the discussion quickly back to the your owe, the your owe is now at the highs of the day versus the dollar. perhaps a different place than
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many traders thought it would be. now it is in positive territory. that says it all how the market's initial reaction certainly is not holding up now. a lot different than a lot of people thought it would be. >> a lot of people burn on the short your owe trade. you really have to look at it to get more bang for your buck. >> bringing us back to the dollar. i wanted to note that the your owe was moving. >> all of us guess it sold off. come back. i would like to sell it up around 102.50. i put a stop at 103.50. but, you know, again, it's hard to be optimistic on global
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growth. >> i agree that the -- went too high there. wait for investor to play. it's a tight borrow. but you can still get it. >> the s&p and nasdaq are higher on the day. up next, facebook making fast friends with wall street analysts. we will talk to one who calls it a screaming buy. it has not started trading yet. tdd# 1-800-345-2550 the spx is on my radar.
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>> the company that is embattled with a new ceo in place who has come to light as having misled folks about his educational background. on the heels of that, and on the heels of investor, including
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warren buffet, criticism of the fact that scott tompson did not have the educational credentials he was proported to have. they are demanding that books and records related to his hiring and any background checks around that hiring are conducted and produced within a matter of days. they will go through the court on this question, i am told. but this is something standard. if you feel there is a serious issue that warrants further inspection around a company, this is one of your options. this letter was just give tonya hoo by hand and fedex. it has just been made public. we will see what happens. this could be a serious oversight on the part of yahoo!'s board. yet they hired him anyway. those are the questions that they hope to pose and get answers to and it's probably not
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a great development for yahoo! as it tries to defend itself against the four-person director slate and mismanagement of the company. an interesting new development. >> there are likely to be more interesting new developments. >> activism is never boring. >> the stock is up today probably because of reports that they are near this new deal for part of the asian assets. who knows? the trials and tribulations. >> it appear. >> the most important thing that people have to understand is
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when you hear something like this, think of the loss of intellectual capital. they keep losing critical employees. you hear things that lead you to believe more important innovative employees will leave. >> getting ready for the road show. mr. zuckerberg will be arriving. there is a picture of outside. facebook is already found some friends among wall street analysts. michael of wedbush securities initiating coverage on the company. i guess the first obvious question would be you have set a price target on the stock that has not priced. >> it wasn't hard. >> apparently not.
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>> no, i mean we have been trading stock at 44 and $45. that seems to be where the market is. those guys are locked up six months. >> this thing could be worth a lot more than that. >> i am wondering, if a call like this and there is so much debate in the market as to what the true value of facebook is. whether it is under valuing the company by itself, whether people like you are helping to overvalue it. you can't escape the fact that growth seems to be slowing. how do you reconcile all of the facts? >> the first thing is my job is not to tell investors whether to buy or sell. my job is to help them figure out for themselves what this thing is worth. so i have a detailed model.
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i have a 38 page report laying out all the pros and cons. i look at what facebook has as an asset, which is 900 million people and a ton of data on those people. i say if they use 10% of that data, they will be the most valuable company ever. tizers are going to pay a lot to a willing consumer who wants that ad. depending on how fast they do th that. >> suppose a lot of those 900 million people don't want that ad? you lay out the case where they have got 900 million people and if they are target the folks and push out an ad to them, that that is a great revenue stream.
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>> say we just target the people that say we like cnbc and my guess is there is millions of them. if you say would you like regular updates in your news feed on what cnbc is talking about? my guess is somebody went out of their way to say i like cnbc, they will want to know what cnbc is up to. and that's a great audience. if you like coca-cola, you will get those ads. >> how do they know that i like coca-cola and if i start getting deluged with that that i stop using facebook? that's my point. >> i think that zuckerberg will tread carefully. would you like to receive items in your news feed if you click yes, you will get them until you decide to unclick. it's pretty easy.
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you can unfollow things. you can unlike things if you choose to. >> michael, thank you.
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>> we will show you where you will be looking for a deal. what may be the biggest meeting in facebook's history is underway right now. so how does warren buffet size up zuckerberg. see which stock you should get. >> thank you so much. this morning right here on cnbc, warren buffet reminded investors of his strong dislike for gold. it was not only buffet. >> 100 years. you can go to it every day and you could coo to it and caress it and you can fondle it. 100 years from now, you will still have one ounce of gold and it will not have done anything for you in between.
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>> i digress. i was going to talk right over mr. buffet. the metal is under pressure as dollar rises under euro zone concerns. let's let your realtime trade from, drum roll please, steve cortez. he joins us on the fast line. >> i certainly agree and i will not be car ressing or cooing over any precious metals. gold has been fairly boring. i have been short silver. i am adding to it this morning. when risk sells off, silver tends to sell off with it. i think there are serious reasons to doubt metals in
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general. the two most important to me, the first one is that both metal shares are trading weak. metal's shares are trading very weak. we see xme trade to a new low this morning. and then the second reason is that silver is underperforming gold. this idea get involved in silver because it's poor man's gold i think that makes it more dangerous than gold. >> i've got to run because i want to show everybody pictures of mark zuckerberg. this is mr. zuckerberg arriving just a short time ago just outside the sheraton new york, midtown manhattan. you'll see him get out of that black suv and head inside for the kick off. >> that's not mark zuckerberg. >> there he is.
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he just walked in. and i don't know what he was wearing shs but it almost looked like he had a hoody on. there was some questions as to whether surk berg was going to show up or not. but he is in the building, again, for the kickoff of the facebook roadshow ahead of that ipo. coming up on the halftime report, we're trading real estate with one of the largest investment companies in the u.s. we'll be right back. ♪ ♪ [ female announcer ] you're the boss of your life.
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our next guest heads up one of the largest real estate investment forms in the u.s. they invest in health care and senior care properties and recently posted an 85% year over year rise in profits in its first quarter citing its 2011 acquisitions. let's bring -- it's great to welcome you to the halftime show. >> thank you so much. i'm happy to be here. >> you have such great performance. how have you done it there? >> well, the reit market is up quite significantly over the past couple of years. ventas has had an amazing
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performance over a long period of time. and it's really driven by increasing cash flows from a health care and senior housing portfolio that's performed very well, low leverage, and really a terrific strategy and team. >> that's been your real straty, right? you're on the prowl for deals. >> yes. in fact we have completed eight acquisitions in the last eight years. each one of which has created significant shareholder values. steve weiss? >> in terms of what the environment is right now, there's so much into real he estate, what's happening? are prices going up in terms of your acquisition costs? >> well, really, real estate is an area of the haves and the have notes right now. the reits represent about 20% of the market and they're the
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haves. pricing for high quality performing quash flowing real estate has gone up, and that's really because of this policy induced thirst for yield that we have all across the globe. so if you can buy an attractive cash flowing asset at an even 5% yield with appreciation potential there's lots of capital attracted to those opportunities. on the other hand in some of the private sector areas where maybe there's significant overleverage, broken condo deals, certain other sectors, certain residential real he estate, certainly a tremendous hang over. >> thank you for spending time with us. >> thank you so much. >> >> i like the reits. finances costs are low. >> one you like best?
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>> i like colony. >> final trade next. [ male announcer ] introducing a powerful weapon in your fight against lawn weeds. ortho weed b gon max. with a new continuous spray wand. so you can kill invading weeds down to the root. without harming your lawn. guaranteed. ortho weed b gon max. ttd#: 1-800-345-2550 let's talk about market volatility. ttd#: 1-800-345-2550 in times like these, it can be tough to know which ttd#: 1-800-345-2550 way the wind is blowing. ttd#: 1-800-345-2550 at charles schwab, we're ready with objective insights about ttd#: 1-800-345-2550 the present market and economic conditions. ttd#: 1-800-345-2550 and can help turn those insights into ttd#: 1-800-345-2550 a plan of action that's right for you. ttd#: 1-800-345-2550 so don't let the current situation take you off course. ttd#: 1-800-345-2550 talk to chuck. ttd#: 1-800-345-2550
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