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tv   Fast Money Halftime Report  CNBC  October 30, 2015 12:00pm-1:01pm EDT

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>> i'm just a big kid. >> jane, happy halloween. thanks to you, jane wells, in oxnard, california. auto no, no, no, wrong movie, jane. wrong one. that does it for "squawk alley"." let's go to headquarters with scott. >> josh brown is here with -- there's a method to the madness of that music. i'll tell you about that in a minute. our game plan looks like this. linkedwin. following its blow-out earnings report, how high can that stock fly? rbc's mark just raised the price target. he will join us live for the reasons why.
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>> it's reignited the debate of growth over value. a perfect day for us to have an investing legend with us for the full hour. mario gabelli. mario, welcome back. >> thanks, scott. good to be here. >> you're the one i'm talking about. >> it's great to have you back. thanks for coming in. >> delight to be here. we're having this incredible month. the best month in four years for the market. are you surprised where we are today given the down draft that we saw in the market and the kind of volatility we felt? >> well, we expect at the beginning of the we're that you would have a hiccup with regards to a pullback in the market at some point wrush didn't know what the dynamics were. as we've got into july and you started looking at the impact of currency on third quarter earnings, both in temz of exports as well as the relationship of translating the earnings and revenues into u.s. dollars, and you know, the street is worried about the folks at the top. the second thing was the final
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impact of energy and the disaster that occurred after thanksgiving of last year. then all of a sudden stocks rallied when the bad news came out by and large, and so that's a tip-off. bottom line, 0% to 5% on the we're. nothing changed in terms of thinking where the s&p would be. >> do you think the move or the comeback in the market is justified? have the fundamentals changed in the world to the magnitude that would lend you a rally like this? >> well, let's start off with some dynamics. the world is $75 trillion. the united states is 25% of that. the consumers continues to do well. wages are rising. jobs increasing. the wealth of the consumer at $100 trillion. minus the debt. europe is improving. draghi is doing his thing. russia is stabilizing for the time being, and then china. this article in the wall street today, those two babies, indicate what's coming out of china. right now 40% of china is consumption. the united states is 70%.
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if we grow at 10% a year, which i think they can do over the next five years because they focused on it and then the rest of that country grows verz what it was growing before, you are talking about a global impact growth in china of 6%. is it worthwhile? yeah. are we going to solve all of our structure? the united states is a dip and a deficit that are just awful. bottom line, i think it's going to be okay in 2016. >> i think there are some large investors that would like to see china do even more. david was on the network thorping. i would like to listen to what mr. tipper said, and then we can react to it on the other side. >> the chinese surprised with lower rates. you know, there were a surprise too.
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>> do you think the economy here is strong enough to offset what additional weakness came out of china and the emerging markets, or are you still concerned that you could have an economic issue somewhere down the road maybe sooner than people think? >> economic issue in the united states you've had it in the energy sector, and that's going to continue until the saudis blink. secondly -- or the consumption rise. secondly, yeah, you are going to see the pluses come in in 2016 that you haven't seen, and that is the end of the impact of the currency dynamic in terms of impacting earnings. i'm looking at the stock market. i think the earning -- the u.s., you know, obviously we're a country that is awol in terms of america with our leadership, but that's going to change in nine months or a year.
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>> sarat, you're surprised sort of where the market is. >> i'm surprised it came back so quickly. >> mario, when we entertained the question over the last few weeks, and we've heard it from others as to whether value is back in favor that growth which has beaten value hand over fist for many, many months is reversing itself. value guy.
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do you think that we are in a paradigm shift, a sea change over the types of stocks that are going to lead this market over the next 12 months? >> i don't look at it. i look at it from the point of view, when i buy something, i want a margin of safety. i'm worried about the price of the stock relative to its intrinsic swrersz its market value. then i'm looking at financial engineering, okay, and in that context i watch my p's and c's. since we got on the show last time, precision cast. >> they have a mark cap. all of the ones in the world at $200 billion. facebook, google, and amazon,
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1.4 trillion, and we're worried about the companies and the internet growing and not paying for the highways they're using? you know, is that growth, or is it stupidity? independent of that, you know, the c's continue to go. financial engineering is alive and well. bottom line, i like growth, and i like value. in the year high in the percentage of s&p stocks that were above the 50 day, meaning in a pretty deliberate up trend you are now at 78% of names above that 50 day. you are at 53% of s&p stocks that are above the 200 day, so you could say that a little bit more than half of the s&p is now back in an up trend on an intermediate term bays basis, and that's, by the way, where we
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were in august just before the correction. i think the technicians are to some degree more sanguin, and the next phase of this is the buy backs. you know, a lot of corporate buybacks are actually backend loaded. whatever their board has authorized them to do, if they haven't finished it before the end of the cal tar year 2015, you could see an additional boost from there. the technical setup is not quite as dire as it was a month ago. forget about the speed with which the markets come back. look at the breadth and the width of the comeback. almost every sector is involved. >> we learned, i guess, right before the show, or at least i --s that you bought more netflix recently. some 300 more shares or so. why do you continue to believe in that story? >> i like subscription revenues, and i enjoy using the product, and it's part of the content and distribution that i look at, and there's nothing wrong with owning 1,000 shares of a stock that's up $40 billion. >> that's a good enough reason. doc. >>dy increase my percentage by 50% almost. >> right.
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mario's portfolio is not littered by full of media stocks. cable vision, cvs, i believe. >> cbs is the other c that i think clearly the ceo has done a fantastic swrob. it's got great cash, and it's a good tail we understand, and it's materially under valued. there's an event that has happened. >> he understands content, and, you know, tlaz lot of organizations that he could partner up with. >> do you look at netflix almost like a hedge -- >> the stock is around $48 for the voting stock. $43, and i think that's one you got to own. >> do you look at netflix almost
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as a hedge because the whole narrative right now around the cable companies is that cord cutting is going to accelerate. maybe it already has. then netflix is sort of always looked at as on the other side of that bet, meaning people will just use netflix and they'll do without the 900 channel that is comcast provides. >> it's irrelevant. you have dirt roads, ferrari and -- you need speed to deliver your content and the government policy -- the policies in the united states have been tilted towards helping the internet, but the market cap of those three companies is seven times the size of the market cap of the entire companies in the distribution business, in the cable business, so speed is important, and that's why, you know, you watched where heed the time warner charter, comcast, and those stocks are being lifted on a global basis. malone is consolidating. the cable stocks. you want to own anything that
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malone has a finger print on. brian roberts and so on. netflix is part of whatever i'm going to have, and the consumer will win. okay? and, you know, even paramount start trying something with number five or whatever it was. forget the name of that movie. >> paranormal. >> you mentioned ferrari. did you buy the ipo? >> sflu like the royalties. if you put a 16 multiple at 20% multiple, that is a 5% cap rate. that is an important part of the value. if i owned feeat chrysler. sfroo last part before we take a quick break. we mentioned pep boys and now fer ar where i. you've been right on the money on the auto parts. >> i've been on the users
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o'reilly. >> o'reilly. >> auto zone, advanced, and genuine parts. swren win is lagging because they have more of the automotive and the outside of the united states. however, the oe companies, those that supply components, we're having a conference in las vegas next week, and we're having the professor at west virginia and unr, university of nevada reno to talk about the diesel. you said you are an event driven guy. >> johnson controls is doing a good job in the battery business and to separate that company one step further. there are a lot of subsets in that. from my point of view the one stock that will be taken out sometime in the next five years and it's going to be emerging between -- which is owned by case new holland and navistar, and their stock is $12.
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they're 80 million shares. it's got an extra dip. >> which way, though? >> not necessarily. i'm trying to buy lower. so are they? we'll be back after a quick break. john and petition can't agree on what to do with the banks. we'll have mario make the call on this sibling rivalry. and the social media stock that's quietly killing it.
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why analyst mark mahaney is getting more bullish on linkedin. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?
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i'm a customer relationship i'm roy gmanager.ith pg&e. anderson valley brewing company is definitely a leader in the adoption of energy efficiency. pg&e is a strong supporter of solar energy. we focus on helping our customers understand it
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and be able to apply it in the best way possible. not only is it good for the environment, it's good for the businesses' bottom line. these are our neighbors. these are the people that we work with. that matters to me. i have three children that are going to grow up here and i want them to be able to enjoy all the things that i was able to enjoy. together, we're building a better california. we are back. bill ackman holding a conference
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call on valeant hoping to defend the company as the stock continues to fall. our kate kelly is here with the details. he is a major shareholder. that's why he is on the offensive today, and it started a little after 9:00. last i checked it was still going. >> still going on. >> bill ackman style. >> it's been another long one. three plus hours at this hour. many people that ackman had a lot to explain. overall, he gave a lengthy defense of the pershing square investment and 21 million shares is one of the hedge fund's largest. based on another negative stock performance so far today, the firm has now lost, we calculated arks an estimated 1.7 billion dollars on paper. ackman said while he thinks valeant has under -- and even took a swipe at their p.r. firm, that it was a good business model with the superlative management team. they should have an investment grade status within five years. he argued, among other things, and was working to replace its specialty pharma business given the severed ties with -- here's
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what else he predicted near term. number one, more negative press. two, additional scrutiny for regulators and politicians followed by some sort of fine. a fast track ad hoc committee report. the up shot? while this has been a damaging reputational moment for the company, this is arkman in his own words, the dramatic decline in the stock price, the front page stories all kinds of negative press about the business and various assertions. we think the valeant business is quite robust. short seller citron is predicting in a tweet that valeant would go to zero and had a much better chance of going to herbal life, and -- >> in fact, andrew left of citron will be with us on monday at noon exclusively clearly to talk about the continuing story. that's kind of what the bulls are up against. the continued news flow,
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potentially more damaging information coming out from short sellers or whoever else. >> he is referring to the continued headline damage that he is expecting to see. however, his broad thesis is that this is a strong company. he likes the margins. he really likes the ceo mike pearson. he said again on the p.r. front he thinks he comes off as a bit gruff. sometimes that turns people off. valeant didn't disclose the $100 million option to buy filador. that came as a surprise to a lot of investors. >> it doesn't sound as though either arkman nor many of the other parties even if they knew
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about it, they didn't quite know the extent or how deep or the exact revenue number or thing like that. maybe it would have influenced their own decision making when making the investments. it's hard to know. >> valeant has argued, including in a conversation between a director and ackman last night on the phone, that they didn't consider the filador relationship to be material, so they opt d want to give much disclosure beyond a footnote or two. most people didn't know about that option. we now learned, of course, that the specialty pharma business in general is about 7% of the net revenue of this company that they're going to have to replace pretty quickly. so some obviously over the last couple of weeks have noted the irony of this whole ackman long deal in valeant while somebody else is knocking the company down as it relates to herbal life and his own campaign against herbal life.
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>> target and jp penny. that's herbal life's pr. pr team. they're watching this all closely and maybe having somewhat of a smile as he is forced defend a position maybe understanding sort of what he is up against. obviously it's getting a little bit testy there. >> kate, thank you. >> thank you. >> so much to -- you need to follow the story. >> mario, you don't own a valeant. >> i would follow kate's comment away. charlie follows warren buffett's long intellectual answer. i have nothing to add.
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>> the drugstore story is in the news where wal greens and rite aid. >> i'm basically the stock is down $3 or $4 this morning because of the earnings they released. >> on balance it's okay. don't forget, this is a company that got rid of tobacco, and they're lapping that, and that was good for some of my other companies. >> you know, this is a more speculative question. ackman said on the call he thinks jeff bazos and amazon should get into the subscription business, and what a better position. with e prescriptions. did that make any sense to you? >> i'm delighted that amazon has
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lots of things. >> ball bearings and have them at your house. >> it's not me. i don't know how to repair those anyway, but it's the -- it's my professional mechanic who is my installer and who does a fantastic job and is going to have a huge tail wind over the next five years. >> kate, thanks again. >> thank you. >> linkedin surging on earnings. is this the best social stock for your portfolio and super mario weighing in on our trader of the year. find out who he thinks is best positioned to take the crown this year. let's head to break and take a look at the biggest winners and losers in the dow this month. it's been a great month for the markets. there's dupont leading the way. up 32%. (patrick 1) what's it like to be the boss of you? (patrick 2) pretty great. (patrick 1) how about a 10% raise? (patrick 2) how about 20?
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(patrick 1) how about done? (patrick 2) that's the kind of control i .. ...and that's what they give me at national car rental. i can choose any car in the aisle i want- without having to ask anyone. who better to be the boss of you... (patrick 1)than me. i mean, you...us (vo) go national. go like a pro.
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we're back. shares of linkedin rallying after earnings just crushed the street's expectations. rbc's mark, a long-time bull on that stock. today even raising the price target joins from yous san francisco. welcome back.
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good to see you. >> good morning, scott. >> the stock has been sort of sloshing around. does this earnings report put it on more solid footing for some time now ahead? >> yeah. yeah, probably. look, there's a lot of controversy over the stock wrerl in the year. they had to lower guidance than they announced this acquisition. it turns out to be more diluted. had this linda.com acquisition. the question investors have to ask themselves is does it get any better than this? we think it does. 60% of the revenue is inflict flekted up. the other is still lagging. we think that's still the up side on the stock. >> how leveraged is this company still to the strength of the job market? >> it can still power through cycles, and it is impacted at the margins. >> talent solutions is just running away from the pack. can you tell us why?
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>> they've got about 400 million members, and they've cut this kind of network effect impact now. since they have so many registered members, the incentive for more to sign up and are now 40,000 of them that have signed up to use this as a recruiting tool, it just gets stronger and stronger. they have network effects, and they build up better toolsz for recruiters and they make it easier for, you know, potential job applicants to look at opportunities and also to professionally connect with each other. they keep layering in more functionality to the site. more network, more network effects, strength. >> is any part of the risk that because of all of the things that you mentioned and where the company is still trying to get to that they're spending a lot of money and maybe at some point it just becomes prohibitive to spend what they are. >> what i find interesting about the stock and why we still like it here as much as it is up today, as much as it is up over the last month, it's that we if to 2016. this is one of the few large cap
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internet stocks that will have margin expansion. most of them don't give you that. this one still can, and that should give you a little bit of support for a premium multiple. scloo john see whaz you do. he bought the stock either yet or today. yesterday ahead of earnings. has a question for you where zoosh quick one on the mobile. obviously, with all the information there is there, and i doubt that too many of the big companies that are using linkedin so effectively are use it on mobile. i think it's more or less people updating statuses and so forth and going on for the first time perhaps on mobile rather than desk top. do you think that mobile expansion is really key for them, or is it really a desk stop product primarily which is what i believe it is outside of that one application that i mentioned. i think this is a mobile first company. that's just this gigantic tsunami we've been living through for the last couple of years. it's only getting bigger. the businesses are dramatically shifting over to mobile. look at facebook. 80% of the revenue now on mobile devices.
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the opportunity for linkedin is they get more engagement by their uses to start monotizing that. that part of the business, 20% of their revenue, is still underperforming, but we think there's the potential for that to come back next year. >> facebook is pennies away from the price target. it's a small buy in our book, and the real -- over the next year is when instagram becomes material enough to move the needle. it's not this water. it's probably not the december quarter. there could be an expectations miss here, but we would be buyers of that because we still think they're very nice long-term drivers ahead. the one name in the internet space go to two names. facebook and google. facebook is the bigger beneficiary right now. you want to own the stock. you don't need to buy it aggressively. >> you should. >> you'll see the quote on twitter. are they going to deliver it?
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they better. those are the words from mark mahaney today. thanks for joining us. >> thanks. >> i know you were positive on the name last week, josh. that being linkedin. >> my attitude on linkedin has always been this is probably the company with the most defensible mode of all the social media names, meaning if you are in your 20s or 30s and you are still building your career, you can't afford to not be on there. especially if you are looking for work with a fortune 500 company or multi-national. talent solutions is what these people are using to vet candidat candidates. >> let's go down to the new york stock exchange and catch up with sim op hobbs, who is covering the european close for us today. >> europe cutting earlier losses into the close.
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top gainer today, airbus, boeing's main rival. announcing it's worked out with suppliers. how to aggressively ramp up production of the a320. 60 aircraft a month. boeing is expected to respond. meantime, the french carmaker renault more than compensated for the by the engines of vehicles it makes for daimler's smart brand in slovenia, and alliance partner nissen in south korea. british airways, iberia owner igb beating expectations today and raising guidance on strong summer travel and cheaper fuel. after a strong stock surge suj, the news frankly did more to boost the french and german rivals. what more, it's a big weekend for the greek banks. tomorrow the ecb will publish its stress test revealing analysts, say, a $15 billion black hole. the greek parliament will tomorrow also go through legislation to make up about half of that. clearly, big questions remain.
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have a good weekend. back to you, guys. >> the big earnings movers are up next in the blitz. plus, financials in a funk. when will stocks start paying off? mario tells us these are his thoughts coming up.
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hi, everybody. i'm sue herrera, and here's your cnbc news update this hour. >> the now smaller democratic field. in the latest nbc news on-line poll conducted by survey monkey, she hit the 50% mark for the first time since april. she is 20 points ahead of her nearest rival, which is bernie sanders. >> one person was killed and another seriously injured when a building being demolished in new york city collapsed. 60 firefighters are at the scene at midtown manhattan. police have blocked off the streets. the remaining section of an army blimp that broke loose in maryland and came dressed in the pennsylvania country side will be removed over the weekend. the sensitive radar in the blimp's hull will be removed today. currently crews are trying to
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cut a clearing where they can put the hull after it's taken out of the trees. >> the u.s. will send tles less than 50 special operations forces to syria to serve as military advisors in the fight against the islamic state. the additional u.s. troops will operate in a limited advise and assist capacity. the u.s. will also be sending additional aircraft to turkey. that is the cnbc news update this hour. back to you, scott. >> thanks. have a great weekend. >> you too. >> our traders divided on the financials and then the nagarian brothers had a spirited debate on the sector yesterday. >> let's listen. >> in a zero interest rate environment, i think that the up side is far more important right now than any down side, and here's why i don't think you're right. because number one, no guts fed. janet yellen and the fomc absolutely no guts. they've missed the window. >> all right. so mario, let's talk financials. bank of new york, you've got -- you have the big banks?
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>> let me flip a coin. it's a poor use of capital in the late 2007-twailt. they would not do anything. plus, you have sarbanes oxley, and you add the dodd frank, and i like the fact that that is a very good business model. >> he also like money managers, and it's another round of consolidation. love to hear what he has more
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bank stocks than i do. >> simple models. they can have huge up side if the rates -- >> well, rates have to go up, and the names will improve at some point in time. >> that's why i say to you doet -- >> if you believe the nims will will go up. >> interactive brokers. thomas, he has a lot of capital, and anyone that has a money market fund is paying negative cash flow. that's a plus. >> the up side there is huge. they talked to that affect. they'll invest more when rates move a little bit, and then the leverage, and they also have the money management business, the schwabs and td's is, and there's more up side. >> talk about conflicts. morning star is so conflicted
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it's absurd. >> you're buying -- i just want to make clear, you are buying lenar. >> i own lennar.b, which is discount from lennar because i like the housing market. is that clear? >> you -- i better make my travel plans. i didn't know that. we hanging out in beantown? >> i'm not going to make any further comments about anybody's travel plans tonight. >> coming up, no guts, no glory. it's a tight race at the top of our leaderboard and the battle for trader of the year. mario gabelli will weigh in on the portfolios next. you're watching cnbc, first in business wordwide.
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jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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coming up at the top of the hour on "power lunch" it is said to be the best month for stocks in four years. the major averages up 9%, but will the rapid gains actually take the steam out of any historic we'year-end rally? >> what's behind the plunging shipment of tablets. mortgage rates are on the rise. what will the impact be on the housing market? one ceo, the homebuilder, says it will be pretty good. for now, though, back to you, scott. >> sarah, thank you. stephanie link is leading the way now in our halftime portfolio competition followed close bibi josh brown and john nagarian. steph's portfolio up 11%. doc 9.5%. pete still in negative territory. mario, i notice josh brown has dr. pepper in his portfolio. one you have in yours as well. >> we have owned it for a long time. we like the pricing power and
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ddp, which is a favorite drink of mine, and they've done a good job going after the hispanic market. >> what i noticed also and i remember we had this conversation i think maybe the last time you were on, pete nagarian who is still in negative territory finally dumped out of american express. american express down 20% year-to-date. >> it was $82 or dollar $78. i still go out a little bit, and i bought some. >> we like it. i think it's cheap. the comps are going to -- costco are going to happen pretty seen. it's got a great global brand. people still want to use it. you have a have a long way to go. there's no competition. down the road people want their cards. >> they're being paralyzed. it seems like the management and the group that runs that company is paralyzed. they haven't done anything in the last year. >> i don't disagree with you, but i think the -- companies that sometimes you buy them for the brand, and now if things
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don't change, this is the perfect, you know -- >> they're going to articulate doing what they have. >> if you look at all the others, like if you look at master card, visa, which is about to rebuy its european -- former european subsidiary, if you look at even discover financial, they are brarchging out into areas, and they are taking much more advantage of the future of payments. amex probably a cheap stock, but i agree with john. it's not on the offensive, and i think that's costing it a multiple. >> we agree completely, and that is that master card, visa up 50%, and american express down 30. duh. so the question is what will happen a year and a half from now? well, the hope is that they spring a lot of money and they'll get results out of it, and as a result of that i think
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they will. >> getting ready for another big week of earnings. facebook, disney, whole foods. oh, it's going to be a big week. we'll talk about a number of those stocks. also, olympic snowborder and bronze medalist chris klug is here. get ready. he is getting ready to run in the new york city marathon this sunday. weelt talk overcoming adversity. >> on snowboards? >> and the great, great cause he is running for when we come back. you totaled your brand new car. nobody's hurt, but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it.
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we are back. our next guest diagnosed with a rare disease where the only cure was a liver transplant. then 18 months later went on to win a bronze in the winter olympics. this summer he hits the five bros to tabro boroughs to tackle the new york city marathon. chris klug. thank you so much for coming. i don't think people realize you are the only olympic medalist to ever win with an orgen transplant. 2002 salt lake was where you won bronze. when did you have the transplant? >> just a year and a half before. >> wow. the hindrance. physically what was that like
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that to not only train but so soon after the transplant. >> i was on a waiting list about six years. and the incision to my right oblique and 36 staples. miraculous recover. out of hospital four days later and snowboarding seven weeks later. and won by bronze medal a few months prior. >> and i've skied with chris in aspen. and used this tracker that tells me how was we're going. he's on a board and i'm on skis, he's going over 55 miles an hour down the hill and i'm trying to keep up with him. absolutely annen mall. the -- animal. >> i have great respect for anyone who could run a marathon. >> i'm not sure i'm going to win it but i'm going to go for it. >> tell us about your charity
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and the foundation and the goal. >> i was on a transplant wait list almost six years and realized the great need for organ donors in our country. there are about 120,000 people waiting across the country today. and we starting the chris klug foundation to educate people about the importance of sharing they decision and documenting that decision. i'm here today because of it. and one organ donor can save up to eight lives, and improve as many as fifty lives. the impact we can have even not here any longer is the significant. >> chris klug dotcom. >> we have ten people running the new york city marathon on on sunday and we'll raise over $40,000 for the charity. we do about 75 events nationwide on college campuses and events like the x gaims. really proud of the work we're doing. >> inspiring story.
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thanks for sharing it with us. good luck this weekend. just three hours left in the this trading day. the final trading day of the month. we're going to get thought as well from mario beginly. and set you up for your game plan next week in those earnings as well.
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all right. final thoughts from our guest host for the hour, mario gabelli. earnings next week, discovery communications is on the list for tuesday. do you like it. >> i like it over the next five years as part of what they're doing outside the united states as well as inside the united states. and 30 dollars is a barringen. >> buchb buying more lately. >> yeah. i'm increasing ownership, particularly as the stock went down and particularly as it stays down. >> what are your thoughts on other companies reporting? fit bit, a big one on monday. >> i like fit bit. i love it. i love the product.
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i think the failure of the first iteration of apple watch and all the apple haters out there saying they are going to succeed. eventually they will but everybody is going to the fit bit in the in the meantime they are going to own the space and i like the stock. >> i would say facebook is really the big one. >> wednesday. >> yeah. and mario, we were talking a little offline about it. but i'd love to hear your thoughts about the company that has now has approaching $300 billion market cap and really not that long in existence and hasn't even really been through a downturn. basically came public in a bull market. >> i'm not in the position of talking about facebook. we don't own it. but if you want me to use the "f" word, i will talk about flow serve. the stock selling around $43. 133 million in shares. and in the downside of a cycle. they are okay. low cap excellent relative to their ebitda. and two or three years down the
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road and you get a double. >> whole foods wednesday. time warner wednesday as well. >> i like what jeff buickis is doing and hopefully he comes forth. time warner came out the other day and the stock's done quite well. this time warner, which is content. hopefully they a flfully they h what they are going to do to justify they weren't part of the murdock family. >> and a lot of ups and downs. -- >> and you can add qualcomm to that too. a lot of downs. so interesting to see if there is a turning point. >> fire eye, doc? >> oh yeah. well anybody in this space. i've been in and out of this one. i'm not in right now at all. but ahead of those earnings if i see unusual activity puts or calls, i'd love to jump in. because this is one that does make big moves. >> i like hearing your stories mario about the trends you see,
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the bigger themes in the way you invest. internet security is -- >> yeah makes a lot of sense -- >> staying with us. >> yeah. and before snowden and before target and before home depot we assigned some analysts and they find some very interesting stocks like palo alto network. and other side we've been talk about the health and wellness and wrote a report recently on yogurt. this is a very scientifically advanced product. and general mills jumps out. but at the same time we go to the other end of the world. we bought a company which makes sniders pretzels. and we like them. and the finally a real healthy product for you is cheesecake factory. it is a very interesting stock. >> pretty tasty cheesecake as well. neither here nor there. i hope the box is full and not just a prop. >> it's empty.
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do you think i'm going to give you content? content is movies. not necessarily -- >> given the icon and. great having you. look forward to seeing you back. >> oh it's fun. >> few hours left and the best month in four years. along with sire ra eisen from the new york stock exchange. who said october would be scary? it's setting up to be the best month for stocks in four years. the major averages up 9%. but will these gains persist? over the next few months. has the year end rally been called into question? will october's gains take the steam out of it? is in the meantime, shares of valiant tank, the pharma giant making a major move to p

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