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tv   Fast Money Halftime Report  CNBC  April 15, 2015 12:00pm-1:01pm EDT

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markets, the indices don't seem to be moving in reaction to oil the way they were a few weeks ago. >> we mentioned netflix tonight, sandisk, the other earnings we're going to watch, worst performer in the s&p in the first quarter. that does it for scott ail li. let's get over to scott wopner, halftime at hq. hi carl, thanks so much. welcome to the halftime show, our starting lineup for today, jim levanthal the president of asset management. josh brown is the soer of ridholtz wealth management and john and pete najarian are the co-founders of option monster. under fire, why former yahoo interim ceo ross levinson says marissa mayer may not be long for the job and what the company needs to do to survive. >> oh my god. >> sizzling stock, as shake shack shares surge on apparently no news.
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who else but josh brown is on the case? we get to the bottom of this burger breakout. we're going to get to ross levinson in a moment. but first having a good day in the markets today. following an outlook fund-raiser intel that wasn't as bad as some had feared. and especially the big jump in crude oil today. carl just telling you about that as the end of "squawk alley." josh, crude is up five days in a row. on the call that our guy joe terranova made yesterday looking pretty good. he made some moves in his playbook that are paying off big-time. this looks maybe it bottoms in. >> the most hilarious thing, the xle is now the third best s&p 500 sector year-to-date with almost a 4% gain. some of the smaller areas within the oil stocks, in double digits for the year. crude is off the march lows by about 13% or 14%. these are the types of things that if i were to tell you two or three weeks ago that would be the case, you would have mocked
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it. that's how the markets work, they're designed to frustrate the maximum amount of people. >> pete, good sign for the market if oil has found a bottom? or not necessarily because of the impact it could have on the consumer? >> it's going to cut both ways, judge. we all know that. finding ourselves in some sort of a bottom if indeed we have obviously broken out of the range, it was 48-52 today, now it's trading 55. we've seen the integrated names getting incredible amount of option activity. chevron, conoco. the last couple of trading sessions we've seen it, exxonmobil as well. huge moves, very rapid moves to upside. let's not forget, we're starting to get help from health care. merck, pfizer and the financials. jp morgan, goldman sachs. it just isn't about oil. the fact that we're seeing a nice broad participation to the upside. cheap volatility, you buy it, you ride the bull. >> doc, back over 5,000 on the nasdaq. intel's revenue outlook, not as bad as some people thought it
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would be. >> certainly they performed given what's been going on with pcs in general, judge. so intel heads of a to them, nice job. >> i think the stock is up not even on the earnings. i think it's the outlook. revenue outlook, i think surprised some people. maybe the worst is over in pcs. >> yup. and if they can get some margin back, judge, that doesn't hurt, either. to the point about crude oil just because that is such a big story, all year i've been saying 45-60 now we're back to almost 55 here, judge 54 and change. i think 45-60. if people want to get too giddy as it goes towards the upper end of the band, up around 60, i'm going to say sold to them. >> our other big story, the call by ross levinson that a major shakeup could be in yahoo's near future. he's now executive chairman of
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tech company scout. live today in los angeles. ross, welcome back. >> thanks, scott. >> so this is a pretty big deal. you call this yahoo's moment of truth. >> i think you've got a confluence of events happening. the subheadline could be mr. smith comes to sunnyvale. jeffrey smith is pushing a lot of buttons as an activist investor. i lived through some of the same experience when third point dan lobe came in i will tell you dan pushed a lot of the right buttons. he called for action that was needed within the company. we, i would say we knew a lot of that action had to happen. but when you have somebody pushing those buttons, you have to act with a lot more thought and a lot faster than maybe you might want to. so and i also think the second part of this is that yahoo will spin away from alibaba. so it will be somewhat of a stand-alone entity. you still have the yahoo japan stake which i think starboard has asked for a solution there. so when you put all of these
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things together, you've got the yahoo core, sitting by itself and i think you're going to really have to articulate a very clear plan, a real strategy, not strategicry, a real strategy that says here's who we are, here are the stakes in the ground, here are our goals, here are the numbers we're going to hit, here's what we're going to do with our staff. here's what we're going to do with our focus on product and here's what we expect the products to deliver. >> number one, have you spoken with smith over at starboard, at all about the situation? >> yeah i've met, i've met jeffrey smith before. as know, i spent a lot of time around wall street and with investors. i have no relationship with them. i've read and listened to his interviews, he was on cnbc yesterday. you know, i could say i lived part of it with dan loeb and third point. so i know the pressure that comes with that. and you know i think what i've
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read from starboard is asking very base i logical questions. and i think frankly, i think the company has handled it pretty well. i think the company is engaged. they haven't been antagonistic. i think the company wants to make changes and is doing it. marissa has reduced some head count. she's gotten rid of some products. i think the question is, is it fast enough, as the market continues to grow, all around yahoo. what's yahoo going to do to increase its display advertising share? possibly increase its search share? marissa has talked about that a lot. and what is the plan that you can, as an investor, i can put a stake in the ground on and bet on? >> so, there are a couple of ways we could go here. you basically suggest two things that could happen. number one, yahoo gets bought, and number two, that marissa mayer is out that she will no longer be the ceo of this company. now one of those two things is going to happen. what's more likely?
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>> well look, i do think it's a bit binary, say we take japan out of the picture and you've got a yahoo stand-alone asset. when you look at the stock price today, about $31 a share is alibaba. $5 a share is yahoo japan and $9 is the core business. if marissa can get this company growing, in an effective way, i think it's a great outcome for the company. she could ride off into the sunset as a hero. and everybody is happy because the stock will likely go up. if the stock, if the company and the stock continues to sort of struggle in terms of growth, multiple double-digit growth rates. and you're sitting at $9 a share with $5 billion to $10 billion of cash on the balance sheet. this is a likely target from a strategic acquirer, a media company potentially.
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a soft bank potentially. or private equity bands together and konls in, wants to buy this company. if private equity owned this company. you would probably see some dramatic changes, which could include marissa stepping down or deciding she put her four-plus years in. got the company, you know focused on mobile. got the company focused on certainly growth areas she believed was the right path and it's time for her to go do the next thing. >> the stock since she's taken almost in almost three years is up 190%. maybe it's just time, is it time for the haters just to go away? doesn't that count for anything? or no? >> well look, as a ceo of a big high-profile public company and yahoo obviously courts the press as well, you know, the press tends to build you up and treat you as a big star and then the press tends to rip you down, look it happened with we could name dozens of ceos this has happened to. i lived through it with carol bartz, who i thought was a very,
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very good ceo, did a lot of the right things. they built her up to be the savior and then tore her down at the end. marissa was built up to be the savi savior. said last week in an interview with eric jackson. one person cannot change yahoo. yahoo is about the 12,000, 15,000 employees that are there, the senior management much you've got to have a strong senior management team around you. and the stock growth based on most reports is really keyed to alibaba. so i'm looking forward to yahoo being a stand-alone business, because you could, i think it's a great undervalued asset. if you do the right things. so i'm excited to see what happens with the stock. i, think it's a company with a billion users, four and a half billion revenue. a billion potentially $1 billion of profit. that's a great asset to go run. and the people there are terrific. >> i'm sure, you are still obviously somewhat critical about where the business is
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relative to where it was and i guess what she's done in the last three years, or in some respects hasn't done. and i'm sure you expect that i'm going to ask you a question that there are bound to be those out there who hear all this and say, well of course levinson doesn't think that marissa mayer has done all that well and that yahoo hasn't done all that well, because he's not there any more. and that he didn't get the gig. is it a fair question to ask, ross? >> i've been asked it a lot of i've been asked it on this show a lot. think i've been on record as not being super critical of marissa. think she did things coming in that no other ceo coming in could have done. she brought an energy, an excitement to the company again. she was able to attract a lot of engineering talent. and again, i think she was given a very long leash to build that company, it's now almost three years. can you look at the performance, it has not gotten to where i think a lot of people thought it
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would get to. i still think there's an incredible runway with that company. i think she's an exceptional technologist and technical paetsch. it has to do with the people in the company taking her direction and building the products. i have absolutely, i've known marissa mayer for a decade. we worked with her when i was at news corp. i have nothing but respect for her. i think take her out of the equation for a second, and just talk about the company. and i think the company's growth is not matching the market, period. that said, i think it is, i've said this on the record many times, it is a really, really tough business to go run and grow. this is a 20-year-old company, and you unfortunately i think you have to do a lot of things you don't want to do as a ceo. which is focus on territories, focus on products. and more than likely as we were about to do, when i was at yahoo
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through both the carol bartz, then scott thompson era, we were going to reduce the head count in certain areas and probably beef it up in other areas like mobile and engineering and media. >> 12 months from now, is she the ceo or not? >> i think it's completely in her hands. i'm hedging a little bit. because it's not right for me to sit here and say she's going to be the ceo or not. i think if she performs, she's absolutely the ceo. and if the stock after it spins out stays in and around this area, i think starboard and others will turn the pressure up dramatically. >> 12 months from now, has somebody taken yahoo out? >> if the company does not perform, yes. >> ross, we're out of time. i wanted to ask you about netflix. we have earnings after the bell. you want to give me a comment on a company that seems to be hitting stride in. >> i'm a huge fan. i think reed and ted sarandos and the team have done everything right. think they're going to do very
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well on earnings. i think hbo is now very much in the game, i'm an ex-hbo employee. i love richard plefler and john lucas, richard if he ever called, i would go work for again. he's got the company humming and that's going to be real kpet toigs netflix. >> you own either yahoo or netflix? >> no. >> you got to spend more time with us. >> we're getting a preview of all of the big numbers expected tomorrow. plus, shake shack up almost 30% since its ipo. one of our traders has been in that name since the beginning. but does he think it's a smart buy? plus where in the world is the best place for your money right now? five-star fund manager makes the case for -- europe. traders are not exactly boarding a plane just yet.
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time for our trader blitz, four trades on, four stocks making news today. first up, delta airlines reporting an earnings beat. >> richard anderson, this guy has been all over this. financially, operationally, the best record quarter for q 1. they've got the head winds and everybody knows about those. they've also got the tail winds
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of the lower price in oil. that's been propelling them as well. traffic counts were very impressive. i like the name. got up over 45, it's backed off in trading towards 44 right now. think it's a buy. think it's going to 50. >> jim labenthal. >> csx? >> it's a tricky play right now. it was a good earnings number and the overall report from csx. the price of natural gas at $2.50. all the utilities are using natural gas instead of coal and for the eastern railroads like csx, and norfolk southern, that hurts a lot of their traffic, i would be very cautious on csx. >> doc, smith and wesson. >> bad weather didn't keep people from buying guns and that's why they raised guidance. they raised guidance margin estimates. gross margin and so forth. this stock is already traded triple normal volume and it's pushing up over 12%. this is just a fantastic quarter for them. >> josh, what's your read on the google deal over in europe? >> i mean, what will end up
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happen something they'll settle with the european authorities, and there's a new person there that's trying to make a name for themselves that's fine. they'll write them a check for $1 billion. the stock has been on the down trend for a while. i don't think it's down because of this news specifically. i think there are bigger issues surrounding the stock. specifically regarding mobile, et cetera. i would stay away from it, i think you'll get a better opportunity to buy it closer to 500. >> you'll get more clarity tomorrow because the eu's antitrust commissioner will be on "squawk on the street" at 9:00 a.m. a first on cnbc interview. coming up here next -- the najarian brothers so thing something unusual in the housing space and something got a little out of hand at the ecb this morning. he said. >> he said -- >> but we're talking to a five-star fund manager who says ignore that and the other noise from europe. it's getting stronger.
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the energy space right now. as i believe oil is about to break out and surprise a lot of people. >> well that was joe terranova yesterday. and it is having a break out today. it's up over the fifth straight day, about 4% or so and his new moves in the playbook already paying off as well. range resources up 5% today. joe adding that yesterday. concho is up 2% and eo go which he's been in before, he's back once again, up .5% or so. a good call by joe. >> a good call. a bold call. obviously this is directional on oil, he's gotten it right so far. listen, i don't know him that well, but i think i know him well enough he'll take this off quickly. he's numbable, i don't expect him to ride this up and down. >> you're still in the lead up 12.5%. >> i'm watching behind me. i'm seeing what's going on. >> so is dr. j, john najarian. you've made a trade in the energy space as well.
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>> i flipped out of a stock, ruckus wireless, flipped out of that. took profits and moved on just like gym is saying. think you have to be nimble. so this one was a winner, judge, it was kind of dying out. maybe it goes higher. i decided to take that one off and go after ev energy partner, yes they are in the oil space. i like them double bottom on the chart. when josh pulls this one up he'll like it. as far as volume. they're there in spades, it hit on the heat seeker. we saw unusual option activity in june and september calls at about the 16 and 17 strikes. >> it sounds like a plug. >> i feel like you asked the portfolio and he started getting into product details. >> next he'll offer up the book. >> would you like a free book with that? >> how much does heat seeker go for on a monthly subscription?
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>> $495. >> i wand want to know if the genie will make any real-money moves. >> we talk about the integrated names all the time. the paper has been short-term though, judge. i probably should be more aggressive entitle portfolio in terms of trading but i'm aggressively trading other names, conoco phillips, in and out. exxonmobil. in and out. there have been great trading opportunities with oil. >> we've heard you talk about that a lot on the show. where is oil headed next? is a bottom in? let's get the view from futures now and jackie de angelis. >> good afternoon to you. scott. that's the million dollar question today as oil is certainly defying gravity at these levels. highest level we've seen since january 2nd. jeff killberg what's the next level to watch for the upside with crude? >> i want to see it close above this level. last time we closed up here, we're looking at the may contract in crude oil futures, 55.85. last time we saw the close was
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christmas eve. i want do see two or three days of consecutive closes above. the trajectory is still lower. i'm not convinced to get bullish on oil right here, right now. >> jim told me last time we spoke that crude was going to go back to its normal relationship with the dollar. it hasn't yet. they're both up today, what's happening here? >> let me be the first to say the correlation, the inverse correlation between crude and the dollar has broken down, perhaps that's because both have established a range and neither move has been alarming because all of those moves have been within the range. you guys mentioned the word breakout on the show. i don't think it's a breakout in crude until the may contract settles above 56.5. to me this is appropriating the upside of the range. it may break out, but i would sell it and say it says in the range for a while longer. >> i'm sure we're going to be talking about crude on the live show tomorrow, 1:00 p.m., futures now.cnbc.com.
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>> we're talking about the thing on killberg's face. >> john, don't be a hater. come on. >> i love it, killer. >> mrs. killer loves it and that's all that's important, judge. >> all right, you go with that. >> we'll see you soon. >> european equities outperforming the u.s. so far this year in a big way. a five-star european fund manager joins us next on the best place to be right now. don't forget to visit cnbc.com/halftime for all of the trades and analysis from our team. when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.
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. hello, here's your cnbc news update this hour. aaron hernandez found guilty of first-degree murder in the deadly shooting of odin lloyd. the former new england patriots star sentenced to life in prison without the possibility of parole. iran's president lashed out at saudi arabia's continued airstrikes in yemen. accusing them of bombing the he 0 pressed and killing women and
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children. hassan rouhani said the saudis were slaughtering the yemeni people. more demonstrations calling for $15 wages and the right to unionize in the fast food industry. protesters lying down in front of a mcdonald's on the upper west side of new york city. it's just one of about 200 protests that are planned today across the country. and people in scranton, pennsylvania are, investigating vandalism at the grave site of hillary clinton's father. authorities say the headstone of hugh rodham was found toppled on monday, coming a day after the former secretary of state announced her candidacy for president, the stone has since been put back up. that's your cnbc's news update at this hour. global investing now, where in the world is the best place to put your money. katrina dudley joins us, with franklin templeton. most heavily weighted in the uk.
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five-star templeton fund. given the dramatic outperformance we've seen in the europe versus the u.s. >> you've seen the best performance in the european markets in 15 years. it's definitely outperformed the u.s. markets. what we've seeing and what we really see that people are missing is most of the rally has been a multiple expansion raly. and we haven't yet seen the earnings catch up to that. and so we are starting to see sell side estimates coming up and we don't see the market appreciates that. >> what you're telling me is that despite the great gains, it's not done. >> it isn't done. think there is a much more upside here. you could have a pause after you've had such a significant rally. you could always have a pause, but we see earnings upgrade as the next leg of the rally. >> give us your view on the obvious threats facing greece and for more eye, russia and potential further incursions in
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the ukraine. >> you've identified the two big risks to the european recovery. in terms of the russia ukraine situation, the good news it's it's stabilized, stability is what we've needed. >> do do you see it staying stable in. >> i do. that's positive because of the impact it has an germany. last year we saw a lot of, disenfranchisization of german corporate. they stopped their spending, it's rallied back as a result of the fact you have stability in the region. in terms of greece, that's another question i think it's a big question. that people are focused on. greece needs to agree do a reform package. >> i was going to ask you about that. isn't it possible that greece can continue to get worse and it doesn't matter? similar to some of the bankruptcies we've had here in the united states where the broader economy just rolls on and you know, greece gets resolved one way or the other, some banks take a hit, some governments take a hit. but everything else kind of
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stabilizes? >> i think we're in a different position today than we were three, four years ago. when you had more than just one country that was looking to fall if one of them exited the eurozone. here we're just talking about greece only being the country that may exit. i think it's a little bit of a binary scenario at the moment. if they exit, obviously the stock market there probably has more down side than it does at current levels. but if they decide to stay in, there's a significant amount of upside in greek stocks. >> parity for euro if the slide continues in. >> the range is the 1.05, 1.10 level it could reach parity. >> what breaks it. >> if you see an increase in interest rates here. it would be u.s. dollar strength that results in euro weakness, rather than having a further weakness in the euro. the one thing we do need to pay a lot of attention to is global managers are significantly underweight the european region. if we start to see those funds
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flow back into europele you could have some support for the euro there. >> katrina -- it seems like we've at least in my purview, we've been talking about this for at least three months. and the flows have started to cam back to the european equity market. you don't see it that way? >> the flows are started but the managers are still underweight the region. they've corrected it slightly. but i think there's still a long way to go in terms of equity flows. i think a lot of investors need to be aware that to gain the actual benefits of the stock market appreciation, you need to make sure you're invested in some way that hedges the currency. because obviously a number of investors were, they saw the stock market go up. they gave back all of those gains to the u.s. dollar appreciation. >> that was one of my questions to you, katrina, as far as the fall of euro being as steep as it was, probably did keep a lot of folks from actually taking that step. which was smart. that it kept them from doing that. quickly, crude oil, when it's over 100, putin can be a little more threatening than he can when it's down here. if we do break out to the upside
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in crude, do you look for that maybe to give him a little more oomph so he could fight back a little more, as far as destabilization with what's going on in ukraine? >> i think putin is a risk in terms of what's going on in his mind and i think trying to predict exactly what he is thinking is very difficult game. i do think he will, you're right, get some more confidence, but i think the economy has suffered significantly as a result of the decline in oil prices. he needs to stabilize his own economy first, before he takes the next step. >> he's likely to play it smart rather than rattling sabers too much here? >> i think he's rattled enough sabers, he showed a position of strength to the rest of the world and showed them that russia is still relevant. but i think now is stability is all we need to continue to see european earns recovery. >> katrina we appreciate your time. by the way there was news out of china as well if we're talking about areas of other places in the world that have outperformed the united states,
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the growth rate in china slowing to its lowest rate since 2009. the rate slowing to 7%. here's former treasury secretary hank paulson weighing in on china. this morning on "squawk box." >> i'm not surprised by the growth rate and the growth rate isn't really what i look at. i look at the source of the growth. china has had great economic success as we all know. and you know, taken hundreds of millions of people out of poverty. second largest you know economy in the world. and this is a company, a country that has a growth model that is running out of steam. >> all right. growth model running out of steam. stock market that has doesn't appear to be running out of steam at all. who has thoughts? >> i would say that the national past-time in china right now amongst the urban middle class
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is stock market speculation. you've goat $385 billion in margin right now. which i think is at 2 x number over what it was six amongst ago. you've got millions of brokerage accounts being opened up shanghai on fire. hong kong stocks on fire. the ling between the two, mainland investors investing outside of the mainland for the first time ever. they've going the capital markets renaissance. you haven't seen speculation forever like this in their stock market since you have to go back to '07-'08. i don't believe there's a serious wealth effect as a result of that think there's a lot of temporary excitement about china. i would not say hey this is the beginning of a brand new thing economically speaking. >> all right. coming up, shake shack stock surge. say that five times, doc. >> shake shake stock surge. >> is now the time to buy?
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josh brown owns it. he eats it, his thoughts, next. >> lives it. plus we go under the radar for some moves you might be missing, one of them on a controversial website called ashley madison. "halftime" back after this.
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coming up at the top of the hour on "power lunch," where are the opportunities in the market? three growth stocks to buy now. one even got an young grade today. will fast food workers across the united states staging one-day strike to demand higher wages. the food stocks that will be impacted the most. and china's stock market up 25% so far this year. but is the bull run coming to an end? worrying new data on china's economy, can you trust the numbers? is it worse than maybe investors think? lots of things coming up, top of the hour, for two hours of "power lunch." now back to scott.
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well shake shack having a pretty nice run this week. hitting a new high, surging yesterday despite a pull-back today. josh brown is a big fan, take a listen. >> open 10 to 12 stores a year u.s., partner overseas, i think this has the potential to be a very big business. i think you want to watch a name like this for more opportunities. you want to buy it when it comes down. you want to buy the dips in a name like this. it's not by any stretch of the imagination cheap. so the cheaper you can get it, the better off you are if you go into the position over time. >> which you are. >> i am. i wanted to come back to 40, i'll buy more. >> might not get the chance. >> yeah. might not. you know one of the things of a company like shake shack and one of the things i've learned in the 15 years i've been investing, trading, is -- >> the 15 years that i've been eating burgers. >> way longer -- i wish it was only 15 years. >> in the extensive research
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that i've done over the past 15 years in burger joints across this nation. >> 15? >> go on. when the consumer really loves the brand, and they show absolutely no signs of stopping loving the brand and they continue to line up for the product, they even pay for the product when you raise prices. et cetera, et cetera, the signal there is -- valuation takes a back seat, at a certain point valuation will be an issue for this stock. but by then, the momentum investor no longer wants to be in it anyway and you'll get the signal technically. until then, this is a name, with 15% of the float short, think they're getting steam rolled right now, i would continue to buy dips. i own it from the date of the ipo, i won't be a seller. >> because you may not get a chance at your 40, because you're still so optimistic on the fundamentals of the company, do you bite the bullet and do you tell people to buy it here at 58.35? >> no. because the good news is, we're in a market with a little bit of elevated volatility versus what
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we saw last year. you're going to get a crack at this thing down more than it's down today. you're going to get those opportunities. but you've got to have it on your list and you have to be serious about it. if you're not someone who going to be in front of the screen every day, there's nothing wrong with setting stop buy limits, but this is the type of name that will give you opportunities as time goes on. i don't know if you need to race into it after a week like it's had. >> do you have any idea why it would have been up 12% yesterday? >> somebody big needs to cover. it's a huge short position for a very small flow. it's a $2 billion market cap. and you've got i think 15% at least as of last month. maybe it's even more now. >> well when something unusual happens, who else but the najarians try to find it, make a little money on it, pete you're up first. >> owens corning, we've been talking about at builders, some of the derivative plays, this is one of those. construction supply, i'll tell
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you what's judge, stock is towards the upper end of the range. trading around the 43 level. buyers come in today buying their going all the way out to august for the 42 call. so you can see those here. this is where they essentially have been started. they started to make their move in here. started to push this up. it's trading around 3.50. 5700 of these, we don't see kind of paper very often. i expect to see the name move a lot higher. >> your holding period? >> at least two to four weeks because of the fact they're going out to august. i feel like it gives me a little more time. if we can break through the 352-week high, i -- 52-week high, i think the options have an opportunity to double. if that happens, i'm out. >> doc, what about you? >> cit, strong unusual activity in this name. it's pushing out, out in october at the a strike. but take a look at the stock. up $1 today. it had a nice pop last week. it looks like it might want to push through the 48 level that's been resistance. if we can get through there. if you take a look at the
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october 50 calls, those are the ones i bought. i also bought the stock today judge. they've been pushing these up all the way to right around the $1.60 level. i think it goes significantly higher. if this is a breakout. so that's why i'll probably be in somewhere around a month to a month and a half on these. >> well there's a little breakout right there. cit up 2%. guys, thanks. coming up, the winner of subzero's best short idea contest is here. stick around to find out what stock won him the title. what did he learn interning for a certain billion dollar hedge fund manager? e've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here.
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our next guest son the lookout for the best investing ideas around. using his platform of more than 10,000 financial professionals to do it. difficultian urendra is the ceo of sum zero, the a financial idea sharing platform. he joins us with the winner of that company's fourth-year contest. >> the contest was the best large cap idea. >> and travis coke is the winner, the founder of voss capital. travis, welcome. tell us about the spiff part of the contest? this is number four? >> the fourth that we've run. the restriction here was we wanted sum zero members to submit ideas on companies with market caps above $10 billion.
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we got a whole series of entries. >> how many entries did you get? >> almost 80. mostly from managers who run funds or run emerging funds, travis was one merginging funds. travis was one. >> like real managers? >> yes. and the members have to be on the buy side to qualify. >> a panel of judges and maybe a mix of allocators are the ones who pick the winners? >> typically the panels or the judges span either cios and endowments or pension funds as well as large every funds. >> we may have given it away, but it was to be short. royal caribbean. why short the cruise line? >> i think he didn't make sense for a variety of reasons. i looked back at the history of the company and they had negative cumulative cash flow over the last 25 years since the
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business's inception. in addition that, valuation is back at an all time high on a variety of metrics. for example, the enterprise value, the ebitda was surpassed in 1999 and the stock subsequently declined over the next two years. for a businesslike this where returns are consistently below the cost of capital, it should trade closer to book value, over 50% lower. >> this is a real trade in your fund. you are a young man and clearly the fund is probably small, but this is real. this is not just contest. >> absolutely. it's a large short position for us in the fund. >> you worked for lee cooperman as an intern many summers ago. he told me to tell you hello. what did you learn from him? >> i would say i am grateful to lee for the opportunity and i can say from my experience, all the stories that you hear about
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his legendary work ethic and intensity are true. gives you a quick story. i was there in the winter of 2008 and late december after the company christmas party, lee came back to the office at 9:30 p.m. on a friday night. of course i was there too, but i was a 20-year-old intern and not a 65-year-old billionaire with nothing left to prove. he works extremely hard. >> he does. well said. a track record to go with it. travis, congratulations and best of luck with your endeavors. >> thank you very much. >> what's next? do we know yet? >> we have to announce the warren buffett challenge. >> right, right. remind us again about that. >> one of the contests we ran, the theme was for members to select the next company for warren buffett to purchase. companies with large competitive motes and attractive valuations. >> you get a ton.
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>> we are waiting to see how it wraps up. we have a bunch of high quality names and the plan is to fedex warren the list of winners. maybe he will like that one. >> when do we find out? >> sometime in may. >> good to see you. coming up, three hours left in the trading day. we give your game plan for the second half after this quick break. [announcer:] what if one stalk of broccoli could protect you from cancer? what if one push up could prevent heart disease? [man grunts] one wishful thinking, right? but there is one step you can take to help prevent another serious disease- pneumococcal pneumonia. one dose of the prevnar 13® vaccine can help protect you ... from pneumococcal pneumonia, an illness that can cause coughing, chest pain, difficulty breathing, and may even put you in the hospital.
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. >> let's go under the radar with things the traders may have been watching. you are up first. >> caterpillar used to own this to the last earnings report. they have another report next week and the stock is testing the highs since that last one. based on dealer inventories and sales, i don't think they will outperform and i don't think you are supposed to buy it here. >> pete in. >> look at the lower commodities and the chemical names. a lot of people looked aside from those and they are under the kadar for sure.
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look at eastman and lyon dale and huntsman. many of the names. there has been unusual activity over the last three weeks in about every name in the chemical space. >> the photo is interesting on see a social media ipo of sorts. ashley madison, the site that allows you to meet people that are not your wife and husband in a discreet fashion. >> controversial. >> they will raise about 200 million u.s. dollars on the exchange in london if they get their way. that will be interesting to watch. i am doing due diligence on that this spring. >> you will have the george costanza portfolio. >> this is really bad. you know what else is under the radar? >> what else? can i leave now? >> you might want to. >> can i call my car and get out of here? >> no.
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we have a caller for you though. >> nice. >> sheri, are you there? >> i'm here. once again, i am watching something, another dating site. >> loyal viewer. sheri brown. sprinkles, you know i love you. did she hang up? >> i'm here. >> you're okay. what are we doing for dinner tonight? >> i don't know. >> i will get home at some point. >> talk to you soon. >> all right. >> you habitualed that well. >> you didn't give her your screen handle though. >> can i tell you something, she knows me since i was 15 years old. there is no shock or surprise at all. she knew what she was getting into. moving on. >> let's talk about earnings between now and the end of the day. you have the s&p 500 up almost
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11 points. you have the dow at 18,100. maybe they won't be as bad as we think? >> that's right. we were talking about intel earlier, but that's emblematic. i don't think earnings for the second half was that great. the reason it's up 4% -- >> of course not, but it wasn't that bad. >> you are right and here's my bigger point. the expectations were so low they were going to guide lower and just coming in with the expectations already reset and a nice little bit of growth in the second half of the year propels the stock 4%. that is emblematic of the stock market and we spent the whole furk on estimates and weak oil and we are realizing we lowered too far. >> nasdaq 5005 may be getting a chip bump. >> seems like it and it is i'm watching goldman sachs. we talked about the financials and it's at the highest levels it has been since 2008 going into this earnings.
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>> bank of america. mike made the case that he could make no credible case to own the stock. did they give you any reason to own it today? >> not enough, judge. you wanted to hear something more about the brokerage side of that business. it wasn't there. >> thank you, guys. thank you, josh. >> you're welcome. thank you in the back as well. >> power begins now. >> halftime is over. power lunch and the second half of the trading day starts right now. >> thank you very much. along with mappedy drury, we start the hour with two important questions and some scary video. >> yes. question number one, does google have a giant problem in europe? they are accused of violating antitrust laws. >> what happens if fast food companies are forced to raise worker pay? what happens to the menus? the cost of the food? most importantly the stocks. >> we begin with a

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