tv Fast Money Halftime Report CNBC January 7, 2014 12:00pm-1:01pm EST
welcome to the "halftime" show. first half are in the books. let's look at what's happened so far. >> we're 70 points away from being break even on the year. >> momentum is back and the analyst fight momentum on a daily basis. >> oh, yeah, there have been some stubborn bears on netflix. >> natural gas futures are among the best performing today. it's rising as we are looking at increased heating demand with these record low temperatures.
>> the number comes in at negative 34.3 billion. that's a pretty big number. >> okay, campers, rise and shine! don't forget your booties because it's cold out there. >> welcome. let's get straight to our game plan for the second half. coors light, the stock slammed on the downgrade over at citi. analyst behind it is here in the house live. going to pot, why private equity is rolling into the industry and how it hopes to smoke p competition. high fliers hit from net fliks to linked in. best performers are getting slapped today. what it all means to the stocks to the market at large. our starting lineup is john, mike, joe, and josh brown. we do want to begin though with the first up day on 2014, josh. is this early year selling that we've been seeing for the first three days? is it over? >> i have no idea. but, scott, let's talk about whether or not it's significant. i would say the answer is no. it's way too early to worry about the first five days of
january barometer. what i'm focused on here are the large cap financials. i think the most important tell right now, and if you look at the price action of jpmorgan, bank of america, suntrust, key bank, every one of these large cap banks is trading atlanta least 10% higher than 200-day moving average. what that tells you is that investorses are willing to stick around and they believe in this economic recovery story. they believe in the fact the economy is recovering faster than what the estimates were. that's why they want to be in the names and that's what i think is the key to the market at this moment. >> joe, make some sense of the next few days and snapback of triple digits. >> it's a transition of 2013 and was really a year all about beta and that was the chase. now 2014 you're looking more towards where can you create a little extra alpha. some of the high flying names. there's opportunity in some of them. we'll talk about that going forward. some of the other names that are getting downgrades, i don't know if you necessarily follow low
and get short. overall right now your strategy has to be building out your portfolio for what will be sustainable trends in 2014. >> what's the way to play this thing? you start the year on a down note which we haven't done in five years. now we're trying to get a little bit of a snap back. we've got earning season around the corner. where do you want to be in the market? >> maybe the three-day pullback we had was the dip you have to buy a lot of people are stepping in and buying today. josh talked large cap financials. i think to add to that you want to look at some of the regional financials. you want to look at some of the names that are going to be able to rally as rates go higher. i think one theme that you want to position yourself for this year is rates are going to go higher and you're going to see an economic recovery. i'm looking for construction names like ingersoll rand in the bank space, the regional banks, new york community bank. >> so, doc, the focus remains on the ten year. look at below 3%.
294 as we speak. >> shrinking, by the way. >> interest rate sensitive names have suffered, utilities and the like. banks have done quite well. i know we've also mentioned them on the desk already but is that the place you want to be? >> i like banks but banks are more for pete. my brother is more into biotechs and banks than i am. what i've been watching, judge, is the cold weather has kept people away from trading desks and not big box retailers. and as it has we've seen thinner markets here. so you've seen a high concentration in just a few names. i'm probably at my quickest turnover right now that i can remember in the last five years. in other words, my average holding time is basically less than 48 hours for most of these trades because i think we can turn that quickly when the rest of the trading desks fill up and when we stop seeing the impact of this cold. >> let's get to these calls on several of 2013's big winners. we're going to speak to the coors analyst in a moment. sitting to my right. first though, let's hit netflix and linkedin.
morgan sanly has been busy. they took down twitter. now he's taking down netflix. heightened competition and digital video streaming. >> before the end of the year i thought netflix would be a name that would get end of year momentum. we did not see it. over the break, i did the research on it. i think the competition from amazon is real in 2014. that being said, i don't think you go out and you shorten netflix. i think it's a name that if you're long you pair back your holdings your like paul icahn did and you move on and look for other growth opportunity. >> heightened competition, is that a reason to run away from netflix stock? >> no, i don't buy that heightened competition a little bit. >> some people are worried about netflix. >> exactly. when you have a 40 million base that you're starting from from netflix, for other people to compete about that embedded base and build themselves up to that, it's not like all the other providers of this content are
just saying, oh, yeah, you want to start up an online streaming service -- >> what do you say to amazon then? they have 300 million. >> we had this debate -- >> they don't have 300 million people that are paying them for streaming content. >> yet. >> netflix does. >> yet. they have 30 million prime subscribers in the last year. >> i think it's apples and oranges. >> quick. we debated this last week. i don't want to redo the debate all over again. what you're talking about with the emergence of 2014 competition is the compression on margins. amazon presents itself. what is netflix do to respond in pricing. >> i take a bet right now, joe, and i respect the heck out of joe, but we will not see prices cut. >> if anything, they will go higher. >> they will go up, i agree. >> talk to me about linkedin, it's getting attention today. another one of last year's high fliers. do we like the call or have an issue with it? >> if you look at linkedin's price action, it sold off at the beginning of the day and now rallying up.
the market is strong. i thinks there's still a lot of upside and a lot of social media. i think to try to call it top or to try to get out of these names, i wouldn't do it. i think there's a lot more upside. >> a lot of these are analysts, a lot of these are analysts doing the smart thing for themselves which is resetting expectations, giving their potential clients a chance to buy these stocks, lower at some point. and locking in really good calls. if you're downgrading linkedin based on valuation on january 6th let's not pretend it wasn't over valued on december 6th. >> tell me what the play is right now on social media. we had a number of stocks run up into the end of the year. now you're getting conflicting calls on all sides of the ledger. whether it's phrase book, twitter,linkedless? >> goet investor on stock like linkedin looks forward to down grades in valuation. if there's a downgrade because something's wrong with the business, separate discussion. that's not what we're hearing on these stocks.
>> coors is the second biggest loser on the s&p today after citi downgraded the stock, oliver chen is the analyst who made the call. oliver, welcome. >> thanks, scott. >> why did you find it necessary to downgrade kors today. >> it's a great company but it ran 60% last year. that was great performance. we actually think comps will come closer in line to guidance. we're modeling comps of 20%. don't get me wrong. that's pretty awesome compared to seconder of 3%. as it comes closer to guidance we could have the stock range bound within this year. we'll see. it's also a $16 billion market cap company. that's bigger than tiffany, coach, ralph lauren. it's not an inexpensive stock as well. >> i'm long michael kors and i get the reason why you downgr e downgraddowngrad downgraded it. in your experience, the link of time the company can grow at the rate it's been growing, are we closer to the end of it or get into other categories and extend the lifetime of this rate of growth? >> well, there's no doubt that
there's fashion risk in this name and it's been such a great fashion executer. and within this space you look at the coach, you look at tiffany, there are sputters all the time. that being said, kors has a great opportunity in europe which could be a billion dollars. launching e-common house in mens. those could be great growth opportunities. i think the bottom line the caution on north america maturing as well as my negative view on holiday sales, and so if you're playing retail for the new year you might want to think about getting four quarter out of the way and think about owning stocks after companies have guided. >> you cite weakness in third quarter watch sales as being a negative. 75% of the company's business is accessories. what percentage of that total is for watches because when i looked at a downgrade based in part on weakness in watch sales it didn't strike me as a real credible within to be worried. >> well, you know, the michael kors watch and the boyfriend launch has been part of the icon. that's been a real driver of
extremely attractive growth. watches as a percentage of total, about 15% to 20% of retail. retail is about half of michael kors. take that number in half and that's one potential risk point in the store. we think it's been careful. >> you're careful here. it's not like you've taken the price target anywhere way down from 95 to 93. it's clear you still like the name. >> do me a favor this morning. this is a name i have in my portfolio playbook for 2014 and i bought i it on the downgrade. thank you for it. tremendous opportunity. you talk about europe and sales of potentially a billion dollars. where are they now? $350 million. that's -- an excellent opportunity going forward. let's talk about the handbag market and the amount of market share domestically in the u.s., they gain just in the previous quarter with all the d.c. disruptions that they had and the potential to exmanned that further. >> yeah, there's no doubt that michael kors offer handbags a great prices regular tive to
extreme luxury it bags. it's a little bit about thinking about risk reward and where i seacat lists. and from my perspective you think about macy's saw a weaker watch performance, fossil hasn't guided their revenues up, the swiss watch data has been weaker. holiday season was very promotional and didn't have upside to top line and may actually have margin hurt. and valuations. so i took chips off the table. we got 60%. and i didn't want to be greedy. you know, that's why we make a market here. >> oliver, appreciate you coming out. >> sure. thank you. >> thank you. shares of lululemon are in the grade today. that debate is later on in the show. you probably hate this polar vortex if you're stuck in an airport but that guy right here, he loves it. he says this storm is the best thing that could have happened to his new business. that's wheels up. that's next. [ male announcer ] the new new york is open.
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we don't have to tell you it's cold outside but let's find exactly what it's like out there from nbc's gabe gutierrez in atlanta. hi, gabe. >> hi, there scott. temperatures in atlanta have cracked double digits. now up to 14 degrees. that's after temperatures plunged to six degrees overnight. the lowest temperatures here in
about 18 years. of course, windchills felt much colder than that. the city of atlanta opened up a temporary warping shelter overnight to help people out. in atlanta public schools are shut down today. school districts throughout the south are also shut down. in south carolina. hearing at tens of thousands of people without power. earlier we heard that rolling blackouts were in effect. we just heard from the energy company that those have been suspended for now. here in atlanta, we're expecting to get in the 20s today but won't crack freezing mark until tomorrow afternoon. this cold snap is affecting people in the country and in the south including travelers, going to flightaware.com, 20,000 flights have been canceled today. one flier taking advantage of the cold blast is wheels up, a new private jet on demand service. kenny is the founder and ceo. thanks for coming out. i know you told our producer
you've been inundated because of the storm. >> i'm wearing my sweatshirt because i came right from the headquarters. i haven't slept in a few nights. if anybody is stuck in florida stuck in the snow, wheelsup.com. >> how does the business work? >> it's simple. we're further dem advertising the privative asian space and bringing it to more people. for $15,750 you guys -- >> a year. >> first year. second year, that includes first year's dues. second year it's $7200. if you pay that monies and become a member you have access to our closed freet fleet of king air 350is. we purchased 105 of them. biggest order of them, beechcraft. >> you're competing with who, net jets? >> net jets and markey jet which we built are natural competitors. they run a great business. the pilot forced air is unbelievable. we have the net jet's former director of safety and security. they view it and we're build
that in a bigger way. >> you founded marquise jet, it's important to to mention that, and sold it. >> to warren buffett and berkshire. we have a lot of crew over there. it was a great experience. it set me up to do wheels up. >> ken, first of all, thank you. scott, kenny was able to send a plane down for me and my family to florida to fly us up here. the deal with textron announced a week or two ago which seems on paper to be a huge deal for the aviation industry but really for you. how does that change where your business is going? it must be a huge positive. >> huge positive. first off, scott donnelly pulled off a once in a generation deal. only six people who makes airplanes in the world. he put together two across the street by each other, beechcraft and cessna. two great leaders. to put these two together and what it meals for we'll wheels we have it for $950 an hour or the fastest commercial jet in
history. we have that range of product for ur wheels up members. i was just in wichita on friday talking to scott earnst and his team and we have the strategy to come to market using the king and cessna product together which will make great news for wichita, kansas. >> you said you have 105? >> we ordered 105 king air 350is. we took delivery of nine of them between november 1st and the end of this year. we're taking 18 more in '14 and we'll have 35 by the end of '15. >> not everybody obviously has the money to fly private. but if you i have you are democratizing private aviation, does that bringing overall prices down? just another player along with marquee and net jets? >> we're changing the industry level. their entry level is $11,000 an air. the king air 350i which was a plane not in commercial format brings down the pricing to $3950. that's significant. we also developed an app that
allows you to hitch, to split, to private shuttle, and what e uber is the black wheels car business, we are the uber of flying. i left the office. we have a group in that's helping us develop that app and it's going to be game over. >> wheelsup.com? >> if you're stuck in florida we can't guarantee anything because we're busy with our members but check out wheelsup.com and we will talk to you. murph wouldn't be on the set today if not for wheelsup. >> we have 50 cent on the show later. you guys have a relationship as well. >> i can fell you that 50 as great a singer he is and great a rapper, he's a great businessman. we got to meet 50 cent when he was an inten for alphabet city. he was coming up the ranks. jam master j of run dmc found him and got his first set of demos and the rest is history.
he was with us before he dropped in the club. >> he's got a new product that he hopes that -- >> intern to private flier. 50 dozen flight commercials. >> thanks for coming out. >> appreciate everything, guys. >> kenny, again, wheelsup.com. 50 is going to be on later in the show. we can trade textron if you guys want and some of those names. >> when you look at textron, the big drag on this company back in '07, '08, '09, 2010, was the private aviation business, the overhang from the great recession. now with this recent deal i think it clears the way for a lot more upside in textron. i think the combination of these two companies will enable that one lagging sector of their business to really take off to the upside in 2014. i like the name. >> all right. coming up, this is the hottest hedge fund trade of 2013. have more room to run. we're going to have wisdom tree ceo about that trade after the break. then rapper, actor, entrepreneur, investor, 50 cent wears many hats and now he's unveiling his newest product.
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welcome back to the "the half." lulu december lemon sending shares into the green. it had a tough stock in 2013 filled with controversy and logging in an 18% loss. what is trade right now. let's debate it, mike murphy, is the bear? 1:30 on the clock. >> lululemon is a name, josh, you've liked this name in the past. if you look at lulu this is the name, the premium name best in class when you talking about yoga pants, yoga gear which is a growing market in the u.s. 2013. put it behind you and realize you can buy this stock down in the mid 50s from up at $80 a share because of all the negatives that came out. new ceo is not getting enough credit. this guy was ceo atoms shoe and ceo at burton snowboards.
i think he's going to right the ship here. 2014 i think when he came in on the conference call the stock got whacked because he wanted to set the bar really low. lastly, after the stock retreated in mid december it's now been basing. back above the ten-day moving average with a lot of call option to the upside. >> all right. >> laid out a good case. >> i guess. >> rebut it. >> i was long the stock for 1/2 years. i wrote it from $10. i have nothing against the company itself. it's been a disaster. really good reasons for it. first of all, the stock has got gotten cheap. it's lost momentum. knowing the difference is what separates a good trade from a bad trade. 40% revenue growth last year. guided to 14% revenue goetd for 2014. it sells for 58% premium over its peers on a forward earnings basis. you cannot own this stock with a straight face for fundamental reasons. as far as technicals are concerned stock broke down on december 12th. never even bounced. it based and now it looks like
it's about to breakdown again. there was not even a dead bounce here. no momentum whatsoever. it's really dangerous. i used to like the stock. it's time to move on. nike is coming in. other brands are coming in. they no longer have the cache they used to. >> buzzer again. >> sorry. >> the momentum has broken down on the name. that's why it's gone from 80 to 58. when you talk about peers that's a big mistake people make. when you talk peers of lululemon, who are the peer snsz. >> nike. >> nike is one that has a small fraction of the business. >> nike is -- >> underarmour is not really in the space. i would compare underarmour to lululemon and both names have had their hiccups in the past. lululemon 24 times next year's earnings on a much, much lower guidance that came out from the -- let's just go to the desk. joe? who made a more compelling market? >> this is a name i've owned and
i am afraid to buy this name now. that being said i think mike makes a very compelling argument as to why you can really catch the falling knife here. if you are going to do that, understand you need to do it with protection using options and you need to prepare this is not a trade you've got to hold this for more than three months. >> dr. jay, do you have any more conviction? >> i'm prinlg prejudice. i'm in the trade. long exactly as joe just out lined it. long march options in this one, i believe, judge. i'm betting the stock gets back into the mid 60s. i'm not betting it goes back to 80. i'm thinking it can get a little momentum from the burton guy that came in who is -- so i like the stock. but again, i'm in it. so of course i'm with murph on this one. >> you have to find risk with an option trade as opposed to common stock because this thing is getting run over. >> let's find out who you think won the we debate. tweet us at cnbc fast money use #bull or #bear and we'll give you the results at the end of the show. natural gas today sending
prices up almost 2%. for more on that we go to jackie de deangeles. >> heating and the cold weather has taken that gas demand to an all-time high. thats a spiked the price. brian soot land at the cme, will more cold weather ahead keep this rally alive in natgas? >> we'll soon find out. look at the temperatures going into this weekend. especially in chicago. calling for rain this weekend. and next week temperatures should be actually be higher above average normal temperatures. so we'll see if this cold weather continues to push it. i worry that natgas has has a nice run, up 23% since november first. we saw a we tremendous drop in inventories. i wonder if selling pressure is coming in we drop below 425 next week. >> jim, do you agree with that? traders are telling me five, six bucks in the forecast but it doesn't look like it's going to materialize at this point.
>> natgas has had all the reason in the world in the last three days to bust through and make an assault on that and it didn't. this morning buying gnat gas to me seemed like tantamount to going to buy a snowblower in the middle of a blizzard. we're pricing in cold because we're in the cold. i looked at the weather forecast for ten of the major cities around the country. everything seems like it's starting to warm up tomorrow. i would be a seller of natgas. >> for more, check out the live show. firstname.lastname@example.org. we're going to hear from wells fargo's gina martin adams. she was bearish in 2013 but is she ready to buy if for 2014? scotting back to you. coming up, after record year for etfs what are investors pile into now? next up we've got the krrks eo of wisdom krceo of wisdom tree. and 50 cent is coming up after the break. live from ces, the consumer electronics show out in vegas.
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welcome back to the "halftime show." we want to go to julia boorstin now out in las vegas with news about comcast. >> that's right, comcast ceo brian roberts speaking today announcing some positive news about comcast video subscribers saying that in the fourth quarter the company modestly grew video subscribers for the first time in 6 1/2 years. now, this is the first quarter in 6 1/2 years that comcast has added videos subscribers. brian roberts says it will take some time to grow for the whole year but it is a, quote, exciting reversal and encouraging sign. this follows 26 straight quarters where comcast lost video subscribers. over 10 of the last 12 years they've improved on prior years results but this q-4 was an
important one for comcast to turn around the video declines. it will not make all of last year positive but it's just referring to q4 and it is a positive turn around. sco scott, book over to you. >> pos titive reaction. media companies have done well over in last 12 months and our parent comcast is in that mix of stocks that has participated in that rise. >> done well and most of them also have the additional mma premium attached to it. i go back to a name cablevision. cablevision is the one name undervalued. i think there's opportunity there. >> it's the big pipe into your house, judge. not just for viewing but also for the high speed internet. you've got to get that somewhere. whether you're getting with twc, charter, like to joe's point, cablevision, comcast, you've got to get the high speed cable in your home, then you put up on the wi-fi and so forth and
that's what all of these smart tvs run on. the japanese spoemt is short. the next guest company benefit fred that more than most. jonathan steinberg, ceo of wisdom tree has run including the japan equity fund live from new york. >> happy new year. thank you for having me back. >> thank you so much. >> this trade alive and well as far as you see it over there? >> like you said, it had a lot of momentum in 2013. make sure it creates in the early part of 2014. it continued to have momentum. 104 and change. that should support some strong earnings for the japanese market. >> put it in perspective for a little bit. the numbers are big. if i recall there was more money flowing into that etf than almost any other over the last year. >> in fact, only the spider took
in more money in etfs in 2013. you know, that theme, that hedged equity, we have another fund hedge hegj, it's a sister product to dxj, it's the european exporters hedging out the euro. it started with 30 million in assets, ended with 650. and has about 700 million now. again, both of these are strong dollar plays which is a theme that we're investing against. we just launched a new fund of bullish dollar fund, usdu just at the very end of last year. we think the dollar is something that provides a lot of opportunity in 2014. it's downtown, i saw that you guys also launched something that could be interesting play on rising rates. that's a really hot button issue for advisers like myself and for investors. they want to know, is there any money to be made in the bond market, what nontraditional strategy might work. could you just mention how that product works and why it might be useful? >> what we've done is we've
licensed the bark clay, aeg, and created two funds for each of these indexes, zero and negative duration, both should benefit from rising interest rates. these are tools that investors can use to hedge out their interest rate and fixed income exposures without having to sell their funds which probably have very significant capital gains. i would go to wisdomtree.com. we put out a lot of research on how to play rising rates. >> can you comment on the kind of flows you're seeing overall and how they may correlate into how investors are feeling overall about this market given the great year we just had? >> i mean, in 2013, as an industry we took in about 190 billion, a record for the industry. you know, it's very early in 2014, but there's a tremendous amount of cash and at a minimum etfs are taking market share from other structures.
mainly mutual funds and hedge funds. i think we as an industry will continue to participate. whether you see robust flows in multiple structures and money flowing more freely, i don't think we're there yet. >> from the seat that you sit in as the ceo of that company, how do the markets look to you? how do you feel about what you see developing here? >> you know, i'm in a very blessed place to be focused solely on etfs, to be the only publicly traded sponsor of etf funds. you know, we see growth. we were the fastest growing publicly traded company asset manager in 2013 and we benefit from the structure. in terms of, you know, robust volumes on securitys, you guys are following it as close as me. you know, it's not that robust. there's still tremendous money on the sidelines. etfs are taking market share from those other structures. >> from your perspective are you seeing the negative, the
pessimism surrounding the emerging markets largely a lot of it tied because of what's going on with japan and a strong u.s. dollar. i think collectively right now the investment community believes the emerging markets are not the place to be. do you see that? >> joe, in 2013 we saw outflows in almost all of our emerging market exposure. so there's no question that market sentiment being negative to emerging markets were reflective in etfs. we were not immune to it. we have put out some research from valuation stand point saying that emerging markets are showing some attracti ivive valuations or emerging market small cap did have positive flows. our brazilian real fund at the end of last year did take in some significant money. so we are seeing some nibbling, maybe there is a bottom forming for some investors in emerging markets. >> see you soon. >> thank you. >> jonathan steinberg, wisdom tree ceo.
one man hoping to make a big splash in has vai gas, 50 cent, is unveiling a new high end headphones. julia, good to see you again. >> scott, thanks so much. 50 cent, curtis jackson, thank you for joining us again here today. so you have these new headphones. >> right. >> sms sport. what makes them different? >> concentrating on durability and making sure that it actually has high quality sound. sms stands for studio master sound. we go through a process of records and studio and take two or three days to write the music but so much longer that you feel comfortable with it before you can present it to the public and want to hear it the right way. >> so you also have some nustar wars branded headphones. "star wars" seems like a random thing. >> lucas films and the brand "star wars" is such a big brand. they've done so many amazing things in technology with the special effects and n. actual
films that it keeps people coming back. we want to be -- i watch those companies and i want to be like that for the way people enjoy music with sms audio. >> the lucasfilm for audio. >> right. >> now, you also -- one of your rival headphone companies, beats, recently announced their going to get into the music service business. they're going to have the streaming music service. would you ever consider going from headphones into streaming music? >> no. i don't think that was a good idea. but those are -- those are my friends. you see my eyes, they get a little uncomfortable when you say rival because i love them. >> but you still don't think it's a good idea. >> i don't think that particular venture was a good idea. but it's obvious that, you know, beats itself was an amazing idea and it's working. you understand where it's organic for us to have passion for music because that's what we do. >> scott, do you want to jump in? >> curtis, i want to ask you how you feel. yo
you're trying to launch a new line of headphones. beats audio is out there, much more established at this point. how do you view another company like that with another hip-hop star doing a product like that and trying to compete? how difficult is it to put your flag down when a pretty big one is already there? >> well, i think it's not really difficult for me because i'm active and involved. it keeps the interest. dre is obviously a legend and for me the biggest records i've had in my career outside of in the club, you know, records like ao technology and this is why it would also be interested in being involved in high-end audio products, also. he's actually equity owner and creates the signature sound for sms audio. we are out here at ces, this is the third time. i'm more comfortable with it. i've had success all over the
world. we've launched in 58 countries. so i feel really good about it. you'll see that it won't be long before you change your tone of voice when you talk to me and talk to me like i'm number one instead of like i'm number two. >> you mention that timber land is a partner. you have a basketball star anthony as a partner. do you think you need other celebrity partnerships to raise your profile? >> when the actual product is a sports product and it has sweat resist stance and water resi resistance technology, it's cool to bring someone in that actual area and carmelo, they're all interested in investing in different ways. professional athletes have the extreme passion for music. they have to take their mind off the time to disically discipline themselves to be that good. and it's the same concept of what we do on the treadmill. on the treadmill, 30 minutes is done so fast because your music
took your mind off of how long you're going to be there. >> you have so many different businesses. you have a fitness book, your energy drink. how much -- of course, you have your music. how much time do you have to run this business? you're ceo. how involved can you be? >> i exercise the whistle while you work concept because i enjoy what i'm doing. i may seem like a workaholic on some levels but it's because i love what i'm doing. if you think about it, you go to film and television, you go to media when ever you relax. you go on vacation, you're going to have some sort of music, film and television involved with what you do during that actual point you're on vacation. and when i actually take a break i find myself looking at things that could be considered research for what i do and it inspires me to do different things. >> running out of time, but you're a businessman. you have your fingers in all parts of the american economy. what's you're out look at the american economy? do you think it's positive? >> i can't -- for some reason i can't kind of get my hands
around -- grasp the idea of anything negative about america because i've travelled so often, that i've got a chance to see what people really admire about america and it's the people in america. it's because it's such a huge difference between the haves and the have-nots. we will see places that mirror the states, the 1% or the higher level class live that we have here and their lowest level is lower than ours. so they admire us. >> and what do you have planned next? you have all of these different businesses. what's your next big business? >> for me, music. >> more music. >> back to music. my full focus this year, i will be, you know, really active in music. >> we look forward to hearing more. curtis jackson, thanks so much. scott? >> in speaking of music, curtis, how do you feel about what beyonce did releasing an alum
straight on itunes? is that something you think is going to be a game changer? would you consider doing the same thing with your next record? >> i think it's -- it was really smart to actually do it. it takes the pressure off established art i.s first week sales by launching a record without even putting that marketing campaign that was there in the past. and you know, we would have to partner with companies and have all types of brand connections and extensions going on in order to put together the finances that were previously provided by the major record companies. so now you see the adjustments to how people consume music from technology. this is what ces is. you walk around here and take a look at tomorrow. you know what i mean? that's why i actually make it here instead of the other conventions. some people go to avn. some people go to -- what is it? the clothing convention? the magic convention. but i make sure i stop by here.
>> but is what beyonce did put more pressure on you to make that one-on-one with your fans in social media? >> no, because i've already been present on that end. it's fun. i think it's starts -- it allows us to do more. >> great. >> to work more and put more material out. >> great. thanks so much for talking to us today. really appreciate it. scott, back over to you. coming up, the stock looking into the crystal ball to find out what unusual activities are going on. see what dr. j. sees next and how you can capitalize on it. that and much more when "the halftime" show returns. [ man #1 ] we're now in the approach phase.
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check your credit score, check your credit report at experian.com. good day, everybody. hope you're staying warm. coming up at the top of the hot. blisteringly cold weather enveloping the country. we've got a top weather person who forecasts not for tv but for wall street. hear what he's saying about the weather in the weeks ahead and how traders are and can bet on it. the u.s. attorney set to hold a news conference on the $2 billion settlement with jpmorgan over the bernie madoff case. we will carry it live. and to the electronics consumer show in las vegas. we will be joined for the hottest gadgets.
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so we created internet essentials, america's largest low-cost internet adoption program. having the internet at home means she has to go no further than the kitchen table to do her homework. now, more than one million americans have been connected at home. it makes it so much better to do homework, when you're at home. welcome to what's next. comcastnbcuniversal. welcome back. our resident stock swami was fine on blackberry yesterday. the stock is soaring today. where are you on the trade? we knew it would be a short time. >> it was a short time because they were buying weekly options. they expire on friday this week. so i said it would probably be in less than 24 hours or maybe even a couple days. i'm out already. these options have tripled since the big player who was getting in here bought them. >> what do you see today? >> today, it's pot and not the
legalized marijuana, but the fertilizer company. maybe they need it for the pot. p-o-t. strong unusual activity in this name. >> you will be hanging around for how long? >> this one is a little longer. not just like the weeklies. they're out in february. maybe it will be a whole week we'll be in this trade. basically they bought in the money and at the money option. >> you an option only or equity also? >> stock and options. >> okay, thanks. from stocks to pot, it may soon be possible to invest in marijuana through a private equity fund. josh lipton has that story in oakland, california. hey, josh. >> reporter: hey, scott, yeah. we are here at harborside health center, a medical marijuana dispensary in oakland, california. you may think that it's easy to sell marijuana. the demand is certainly there. but this is actually a tough business. states like washington and colorado have legalized recreational marijuana use but federal law, remember, has not changed.
marijuana remains illegal. as a result, a lot of banks are reluctant to do business with marijuana shops. they worry about breaking federal laws. they don't want to loan these businesses money. marijuana shops could have a new source of financing soon. executives of "high times" magazine have announced a new private equity fund to invest in marijuana related businesses. the ht growth fund is planning on raising $100 million over the next two years and making investments in the $2 million to $5 million range. it's easy to see why "high times" wants to get into the weed business. the legal marijuana market is now valued at an estimated $1.4 billion. i can tell you, the treasury department is telling cnbc that discussions with the department of justice are ongoing to clarify these issues, so your local bank could soon be supporting your local weed shops. >> josh lipton, out in oakland, california. doc, you have a quick trade on this one? >> yeah. it's tough to find real market
cap in some of these names, but medical box, m-d-b-x, where it's basically a point of sale and very secure way to deliver this, it's the biggest one in the space. >> you got to weed out a lot of smaller companies. >> you do have to weed out -- >> that's an over the counter stock? >> it's an over the counter stock but trades about three quarters of a million, million shares. it's a real stock. about $50 today, i think. >> be careful you don't get smoked. >> i would say you're good but you're actually not. we'll take a quick break and do final trades. [ male announcer ] this is kevin. to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again. and now i've got to take more pills. ♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪
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micron is up today, right? >> let's debate it. >> you still like that name? >> it's a lot of upside. >> final trades. josh? >> yeah. i like first solar on the dip from yesterday. >> doc? >> gds. worth the trade. >> joey? >> i shorted sears today. >> have a great rest of the day. "power lunch" starts now. "halftime" is over. "power lunch" and the second half of the trading day starts right now. >> good tuesday afternoon, everybody. welcome to "power lunch." rally time on wall street. our first big gain for 2014, up triple digits right now. let's take a look at the dow, up 118. the s&p 500, two-thirds of a percent. u.s. attorney going to hold a press conference in just a few minutes on the $2 billion settlement with jpmorgan in connection with the bernie madoff case.