tv Fast Money Halftime Report CNBC August 19, 2016 12:00pm-1:01pm EDT
finally after 15 years, momentum. >> next week, of course, jackson hole along with some earnings, best buy, toll broeb brothers, hp, medtronics, dollar general. a lot to get to in the coming days. enjoys weekend. over to scott wapner, the judge, and "the half." guys, thanks so much. welcome to the "halftime report." i'm scott wapner. our top trade this hour, viacom bombshell. word outgoing ceo felipe daweum is leaving. and following the money, julia boorstin. >> reporter: scott, a number of pretty shocking numbers in the last chapter of sumner redstone and fip illpedauman's leaving viacom. expecting him to be paid to step down immediately, that's on top
of $491 million in total compensation dauman brought home from his past decade running viacom. among the iest of all ceos in the country over the past five years, particularly shocking considering viacom's underperformance. par underperformed s&p 500 as well as redstone's other media giant cbs, and look at compared to viacom's market cap over the past decade. amazing this, this is not dauman's first golden parachute. reportedly paid $150 million back in 1999 when cbs merged. now soo fe they combine yet again to bring in min medvez to
both companies. >> and with us as well, ubs private wealth management and one of barron's top 100 financial advisers. steve weiss what do you do? highest paid ceo over the past five years. viacom shares up 8% over that period, over the last three years down 43%. >> look, this is so clearly a corporate governance issue, because the ties between philippedauman and ceo and personal ties with redstone, too integrated to be able to distinguish. definitely isn't being rewarded because of what he's doing. >> viacom, look at it as an investor, outrageous. >> why it's corporate governance. great photographer and pictures of redstone or paying to get him out of there completely. obviously, not a great photographer, because they've lost in digital race to everybody else. good riddance.
look forward -- look back, move forward saying this was good thing. however, here's what i'd say -- most of this is being borne by sumner redstone, by far he's the largest owner of the stock. he's made this decision. look, it's a good property. i don't think you're going to see the two remerge. i don't think you'll see one ceo here again. the question is who can replace him? that's wide open. >> doc what do you do with this? >> i agree. >> $72 million. $150 million in '99 after cbs merged with viacom. more than $400 million that he's earned as ceo. >> well, he's a poker player, and he obviously is pretty good bluffer. but what happened with this pay package, judge, is exactly, i think, what steve outlined. for a shareholder to suffer -- >> poker play jer a bad metaphor. >> no, no. he is a poker player. >> he's counting the cards. >> he is, but that's what good poker players do.
he met sumner redstone because of his poker play and because he was part of an investigation that was going on with the sec. that put him in position to be an advisers to mr. redstone and ultimately become ceo of this conglomerate. he got paid well the first time, as julia said. paid almost as well the second time and to get rid of this guy for $27 milli$72 million is a r error giving the stock is up and however. million shares. this is not viewed by the street as much as people might look at it and say, look, this is crazy, outrageous. it is, but to make this thing the chapter, to close this book, i think it was worth it. >> i have a slightly different take, which is that if you own this stock, shame on you. you've brought this upon yourself. this has been an obvious governance nightmare. there are probably chapters in textbooks at ivy league schools
in these programs talking how absurd a structure like this is. consider redstone's trust owns 80% of national amusements which in turn owns 80% of viacom, which in turn owns 80% of cbs. had i say percent i mean voting rights. what kind of a clown do you have to be to believe that you're going to get any kind of governance in a structure like that? so if this is a big position of yours, then you have basically said, i don't care about my own voting rights, and i would not say that this is something that we've seen the last of. look at what the technology giants are doing right now to protect their own control over their companies. the split at google. >> alphabet, facebook. >> things at facebook. right. you have not seen the last of this. right now facebook and google, scott, can do no wrong. nothing but success. that won't always be the case. ultimately there will be issue where is those companies run into a stumble and shareholders
are set up to get the next rude awakening they really have no control over what happened. >> bring in outspoken viacom shareholder eric jackson, managing director, live in toronto. eric, good to see you again. >> hey, i guess i was one of the clowns that josh was just referring to. >> well, i have you on the stock. >> my favorite clown, though. >> listen, i mean, you know, of course a governance nightmare josh has been saying, and we're outraged like everybody else about the golden parachute for philippe. that's why my firm got involved last january. why we put out our 99 pager on why it was outrageous philippe kept getting paid and things needed to change. now you see seven months later that report i think really catalyzed a lot of action and feelings amongst what the shareholders and media to wake up to this. so why do you want to still own it from here? this is still one of the most, if not "the" most undervalued
media stocks that is out there, and what should give you confidence that things will be different going forward? i mean, obviously, it's a better day-to-day. this is a liberation day for shareholders philippe is gone. a better day there are prit and competent directors coming from to join this board. so obviously, redstone has played a bigger role over the last few months and hopefully that cons atinues and gives shareholders much more confidence than in january. >> and i agree. agency agree. activist working. to dr. j's point, it's pervasive in this industry and why having investors forced the hand of management, it's important. when we block look at great lea somebody focused on shareholders and employees, right? and focused on delivering value over time to their customers,
and if they do that consistently, they're going to merge as some of the great leaders of alltile. guys like bezos has done this consistently. >> i'm not going to pretend i'm an expert on mr. duly, ceoo. is he the right guy in your mind to extract more value for shareholders? >> what's good about tom dula d, people see him as a moneymaker. bad about dooley. one of our critiques of viacom, a corrupt culture run by a corrupt lawyer. and doesn't have relationships to bring back the john olivers of the world and so on and so
forth. if he's going to be the ceoo going forward, not sure he is, the board needs to do a search, he needs talent around him. there are high-quality talented folks connections to writers and directors that would be interested in joining his team. those weaknesses have is to be covered up if he's staying on. >> what was your initial reaction, curious when you heard about the 72 million dollar number, and then when you take it into context of the full pay package, whether it was the $150 million in '99 or in total more than $400 million? do you feel like a sucker as a shareholder here? >> well, sumner redstone is very generous to the people he trusts. it's been a kick in the pants for shareholders for many, many years now. at viacom. fine when it's working and the stock's up, but you scratch your head when you look at the stock chart of viacom over ten years and in the last two years, as you said, the stock is down
basically 50%, yet this guy is still taking home, you know, pay packages that put him at the top of all media ceos out there. the $72 million, it wasn't a surprise, because he had just signed an extension a year ago with this board to stay on another three years, and he's a corporate lawyer. so he put in protections for himself that if they axed him, he'd get paid. the question is, do you want, as a shareholder, turn the page and move on to what's next? that's what we want. we're happy with this outcome and looking forward to what is to come. >> you said in many ways, getting the ball rolling with that 99-page letter, what? about a year ago? maybe less. >> seven months. >> yeah. eric jackson, appreciate the time. >> thanks. on the heels of the dauman depap cher, other ceos, which are earning their keep? for that bring in jeffrey sonnenfeld. good to talk to you g. to be with you, scott, and great show so far. i have to say that i would just
disagree slightly if i could with eric jackson. >> please. >> saying this is shareholder activism at its best. this is one time we really needed shareholder action, of course, the redstones were passive too long with controlling 80% here, but it was finally the redstone voice, and wise investors like eric jackson, and others, who finally start to speak out that made the change happen. this guy, he was not only being paid a lot, he was paid $85 million last year, which is more than bob eisner of disney and jeff of time warner and miserable. viacom down 50% since he was there and everything creatively down. the digital revolution, we know, but killing the great progress that he had. so, and not to imagine driving out great talent along the way. >> maybe, though, jeff, the activist was a little better late than never.
funny you mention iger and buko bukous. i'm looking over a five-year period, mentioned viacom shares up 8%, you have disney and time warner up 203 and 202%, respectively. these are the, the outperformance overwhelmingly dramatic. >> oh, yeah. look at disney. and iger, since last august, took a little bit of a hit, frankly, persuaded him to come with me on -- talked about espn and performance, but he was -- [ inaudible ] about -- [ inaudible ]. >> jeff, i hate to do this to you, but your phone's dropping out. i know you're on a mobile phone. >> oh. sorry. the stock has just -- up 5 opinion% since he took over. it's five times better than the dow as iger has done spectacularly well with pixar, with marvel, with lucas film. he's really earned his keep by
revolutionary moves. >> i'm going to attempt one more question. if it breaks up, have to let you go. forgive me if i need to do that. >> sure. >> how much should stock performance matter in these equations? how much should it be weighed deciding whether a ceo is doing a great job or not? >> studied ceos over time and actually looking at certain personality traits you can predict as much as 12% to 15% of their accounting performance on the spot price. it really matters. people like -- like mark zuckerberg and ingenuity, profoundly transformed their businesses. decade of boeing, and for decades, just ended add boeing, spectacular performance and a lot of times wee reluctant to get caught up in the great person psychology. swisher is afraid in technology, celebrate the titans too much and there's something to that
about celebrating the great person, but when it comes to many of these companies and to huge transformations, you've got to realize that disney was not doing well before iger. that boeing was certainly not doing well before jim mcinerney and the single veds individuals made a huge difference, and honeywell up almost 500% since he was there and transforming the business is that the ceos vision what carried the day here. >> jeff, appreciate the time. thanks for calling in. catch you again soon. >> sure, thanks. and jeffrey sonnenfeld. i ask you, one of the top barron's advisers. when making decisions on what stocks to add into your portfolio you take these kinds of things into consideration? >> looking at fundamentals of clul -- >> fundamentals is a business matter, but execution matters, too, and consistency of that execution matters, and if you have a leadership team that has been able to consistency execute
that is what drives value over time. >> but stock prices are only one part of the equation. for example -- >> of course. but how big of a piece of the pie should it be? >> absolutely critical. you can't have a c rated ceo and own a company. eventually he's going to destroy valuing the company as we saw at viacom. but on the other hand, you take a look at john stumpf, gets no credit -- i wouldn't say that. no visibility. avoids the limelight. jamie dimon gets all the limelight. the market awards him a much higher multiple saying you're a much better ceo than jamie dimon. >> part of that structural in the market, though, right now. etf investing kind of driving the vaults, somewhat a -- >> but -- >> people add value and don't get recognized is your point. >> exactly. look at net interest margin. much higher, look at price to book. much higher wells fargo. look at return on equity.
much higher at wells fargo. >> ceos have to be visibility and likable. >> credit rating. not saying visible and likable. a highly coveted stock than jamie dimon and jamie dimon is a great ceo. also how they run the company, not just about the stock price. >> right. just to interject quick. interesting you have bezos on your list. no one doubts the genius that is base sew bezos. look at it through two prisms. earnings per share, different story. profitability of the business is different necessary been than the way you look at stock performance but both are important. >> why it's a matrix and bezos created an industry, online shopping and brought the rest of retail to its knees. they have to succumb to what his business model is. >> he changed the game. that's a different story. >> one of the best there is. >> sorry, josh, didn't mean
interrupt you before. >> should be said a lot of the stuff is backward looking's if yahoo! had acquired tumbler and turned it into an up-and-coming facebook, saying she's a great ceo. no one is saying that now, obviously. that's an important point to needs to be brought ow. >> wait. let me say. that's one instance. >> yeah. >> where stock performance doesn't tell the whole story. >> we say this is a great nfl coach because they went, you know, 14 wins this season, and if they have 9 wins the next season, maybe they weren't so great. >> cook a great ceo. stock done so well. we had that debate the other day. >> interesting, tim cook's "weekend update" interviw "washington post" interview, ends with succession. not because i might
ceo, says he could step off a curb. and you see hundreds of billions coming into factor-driven, rob mention the etfs but it's beyond that, separately prged accounts, et cetera. doing it quantitatively. oh, is this a good ceo on a qualitative basis, quantitatively, do i want to own stock where is ownership is this concentrated in a trust controlled by a 90-year-old? and these stocks are screened out. when you look at comcast up 66% over the last three years. disney up 65%. time warner up 42% versus viacom down 40%, you say to yourself, what's one variable here that's different for viacom versus the others? well, viacom ain't making quality screens. the etfs are not accumulating that stock as the same time rate accumulating things like time warner and comcast. an important point that needs to be brought out. >> quickly.
>> iger at disney, jamie dimon at jpmorgan, howard schultz at starbucks. look at it. his performance nome buying the company from the founders, but then his performance through 2000, then took eight years off. the performance during that time is very telling, because the stock, it moderated higher, but if you look at the whole of this tenure over there. >> buying the ceo as much as you are the shares in the company? >> yes. absolutely. and -- >> the capital you're investing is in both. whether the person, male/female or -- >> as a leader, too. mark bennyoff through physical press, a big and brilliant man, has brought sales force not only and made a lot of folks rich but he has really changed the game with that software service. >> we got to go. could keep talking. but we do have to take a quick brat. a lot more ahead, though, on the "halftime report." >> announcer: plowing through wall street.
shares of deere on the move. josh brown has been behind the stock. see what he's doing next. plus -- the tool hedge funds have that helps them really stay on top of all of the trends. from oil to retail and beyond. far beyond. scott wapner and the "halftime" gang are coming back in two minutes. services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry
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tractor sales, though, slurpisl falling 14%. josh, own this, like the name and staying in the name? >> yeah. look, buying cyclicals at a cyclical trough is not exactly -- you don't have to be a genius. something that smart investors have done for decades. deere is clearly in the midst of one of the worst environments they've ever seen. i think it's the fourth straight year of lower farm income, which has never happened before outside of the 1970s. so it's as bad as it gets. people are letting their equipment run longer, not replacing it. you've got depressed economies in places like latin america. it's all bad, but that's not a revelation. everyone understands that. why you're able to buy the stock in the 70s. i've been saying since the '70s and continue to believe, the reason this company is not selling off ob depressing news is because there is a sense that things probably have to get better at a certain point, and
it's worthwhile to own a name like this with a 3% dividend yield. not in egregious valuation to wait for that. ultimately, when the cycle turns, ag gets hot again, equipment replacement cycle begins you won't have a chance to buy the stock. a quarter, two quarters in advance. >> staying in? >> absolutely. buyer on dips. makes sense it stopped at 85. 87 resistance. we can get above that. you'll see a triple digit stock price. >> to me, this is one of the issues with mark. not deere, a great call, you've stuck with it. i've avoided it. it fundamentals deteriorated, holding it up, i believe, an etf. must be in some etfs. to so stocks like this have these kind of moves on this kind of earnings report, like we saw with macy's. >> guide higher for fiscal year earningses. >> they did. see if they guide down and see caterpillar hold, and some coming out of finance, there's
something wrong with the market. what's wrong with the market is the machines. eventually that's going to kem home to roofrt and we'll all pay for that. these have neuromoves scare me about the market. so i'm not playing this. i just don't think it's a place to be. >> all right. do footlocker now in our blitz, soaring beating on the top and bottom lines, better than expected same-store sales as well. josh, the scoop? another one. up 11%. >> i was in footlocker two weeks ago, walked out with three boxes, just with myself, without the kids. what people are wearing on a daily basis do they have a grocery cart? >> everyday basis what people are wearing. wearing it to work. a category that is expanding its day part to borrow a term from the fast-food industry. so you are used to seeing mcdonald's, doing breakfast, too. revelatory a whole need net they can meet. a new line of business. with footlocker, it's not just sports. it's all day. so that leads to a lot more sales. we saw something similar at a
dick's as well. the apparel ask beyond the shoes. a great name. it's a company that's managed to figure out the web rather than become a victim of the web. that's rare in specialty retail. >> semiconductor maker cadmium on the move. >> before we get to that, i came on, four pairs of returning shoes and cross-running shoes from nike. get to wear them 30 days. don't like them, return it. a better proposition for me than foot locker. >> chiles sid sizes. >> my kids are out of the house. they do. >> and game-changing. allowing people to wear air jorzjorz jordans to work. >> only air jordans. >> how i feel about that. >> so cadmium? >> begging the -- to buy it. make some money. keep resisting. >> shouldn't resist. >> bought $2 million worth of stock. i like it, just got through cap ending cycle.
semiconductor processing chips. a great story and will reap the benefits. a lot of up side. >> steve cone, 5.4% stake in square? one of the largest stockholders. >> passive. maim that announcement, are not expected to be able to go hostile or anything else. an investment by them. probably not an activist investment but it's going to draw folks in along with steve because he's so smart. >> all right. talk about the eem, up 5% since end of july. when you upgraded the group to overweight? >> that day, actually. >> right. >> so the thesis remains intact. one of below valuations. rates low because of uncertainty surrounding brexit and central banks globally, what they're doing. abundant liquidity. and volatile commodity prices broadly stabilized.
thesis has to stay intact and night cyclical. >> related to zika, breaking news. florida governor confirms a second area where local transmission is occurring of the zika virus in miami. that is about a 1.5-mile area of miami beach. they say they have seen five cases of local transmission via local mosquitoes there in miami. the second place the other is that area in wynnewood in miami. now the question becomes, will we see additional travel guidance for that area of miami beach? >> the latest. holding a news conference within the last hour on that very issue. thanks. before the break, s&p sector, check. there it is. tech is leading the way. a bit of a down day for the zp giving back about 4.25. more "halftime "bak in two. announcer: alvin and the chipmunks want to remind you--
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what company does all this? exxonmobil, that's who. we're working on all these things to make cars better and use less fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here. all right. welcome back to the "halftime report." years from now when we look back at the rio olympics the bad behavior by members of the u.s. swim team will probably be overshad oove over -- probably overshadow the medal count. hopefully this will be the final chapter of watergate. andrew? >> reporter: thank you for that,
scott. we do hope this is the final chapter. ryan lochte taking to instagram finally to say i'm sorry. issuing a statement on the social media platform, but already should note the apology isn't necessarily receiving reaction he may have hoped for. all over instagram and twitter reacting negatively calling it a non-apology pointing to this language in this statement where he seemed to excuse the behavior that he was apologizing for. let me read it to you. this is what he said -- it's traumatic to be out late with your friends in a foreign country with a language barrier and have a stranger point a gun at you and demand money to let you leave. that getting people somewhat frustrated. should also note, though, a spokesman for the ioc said at one point 8 million people had gone to twitter on the handle complaining about the incident. saying, clear the brazilian population felt humiliateed by this incident but i think the brazilian population will accept his apology and we want to put this matter to an end.
it is unclear how lochte's three sponsors speedo, ralph lauren and airweave will react. we have put calls in to them and are looking for statements from them. the other swimmers involved in the saga, gunnar bentz and conger returned to the u.s. and connor soon returns after reaching agreement in the rio court to pay $11,000 to a rio charity. a statement out in the past ten minutes from the state department of the united states saying they had been in contact and worked with the brazilian authorities, praising brazil and the way they have put on these games. talking a lot more about the economic implications for lochte, sponsors, his career, the ioc, perhaps what this means for l.a. 2024 and that bid. doing that in about an hour on "power lunch," scott. >> andrew, thanks so much. the latest live in rio. sue herera now has the latest headlines. >> hi. thanks so much. what is happening this
hour -- donald trump campaign manager paul manafortee vines resigns. his firm lobbied on behalf of ukrainian political figures in the u.s. and never registered as a foreign agent and required under federal law. earlier this week, trump brought in a new campaign manager and a chief executive. a terrible bus accident in newark, new jersey, kills one driver and injures 18 passengers. the two commuter buses collided just after 6:00 a.m. this morning. officials suspect one of the drivers ran a red light at the intersection. the cdc is warning contact lens wearers about the dangers of eye infections. a new report saying one in five eye infections related to contact lenses results in serious eye damages saying the most common mistake, wearing the contacts too long without cleaning them. friday cute video alert. oh that is so sweet. a rare pair of albino lion cubs
have been born in crimea. their mom is sick. being cared for by zoo workers, but say they are eating well and are getting stronger. altogether now, let's all say, "ah." there we go. >> adorable for sure. sue, thanks. >> you're welcome, guys. a new tool for hedge funds emphasizing pictures and data. interesting story. coming up when "halftime report" coming back in two minutes. hey nicole, this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. perfect driving record. until one of you clips a food truck. then your rates go through the roof.
enis really built into theat foundation of the company. whole foods market is engaged with pg&e on many levels, to really reduce energy and reduce our environmental footprint. for a customer like whole foods, saving energy means helping our environment, and we can be a part of that. helping customers save energy is a very important part of what pg&e does. we can pass those savings on to the environment, the business, and the community. pg&e really is an expert in saving energy, and that partnership is extremely exciting. together, we're building a better california.
welcome pack to "halftime." oil in rally mode. there it is -- well. all right. kind of flat today. more than 22% since early august. overweight or no? >> still. 16% year to date. i think that, you know, the market continues today. i think the original reaction was just due to the magnitude of the sell-off in energy prices and weeb got over sold, weiss and i talked about that a lot on the show. obviously josh disagreed with us. a little bit there. >> on what? >> mlps. >> no. the answer in a portfolio. the answer is no. same at energy. i agreed with you, energy is undervalued. i'm long the xle. my point, you don't need the tax
ramifications of mlps. i'm still right. >> no, no, no. no, no, no. while you're not getting the 8% yield. >> i don't need the 8% yield. 8% yield in a security they dropped 70%? no thanks. >> not to digress. >> without total return. >> not to digress, as non-opec supply comes off-line and we see a macro recovery continue to accelerate, we still like energy. >> are you done digressing? >> i'm done digressing and i won't do that again. >> that's fine. these guys can not do that again. speaking of energy, match be having daily access to worldwide activity for trading tips? the latest innovation data driven hedge funds are using to get a leg up. the new technology is expected to be available later this year. we're joined now by james crawford, the founder and ceo of orbital insight. nice to have you on the show today. welcome. >> thanks. happy to be here. >> interesting stuff you're
doing. looking through some of the satellite images. you want to tell us exactly how this works? >> so, yes. so satellites have become much more available. old days only available if you were basically a government agency spying on another government, satellites used to cost $500 million or more apiece. we're launching cube for a fraction of that court and seeing dozens of satellites go up on nearly a monthly basis. what we do is take the imagery from all satellites companies around the world, put it into one artificial intelligence-based system and do a tremendous amount of data science on top of it to finally come out with an understanding of what going on in the world, and that could be crop yield, could be cars in parking lots, could be oil in oil tanks. >> giving them, the way i understand it, sort of access to images, mostly on a weekly basis. it sound like the holy grail of what you're trying to do is give funds access on a daily basis so you can get as realtime as realtime could be? >> yeah.
we've been moving closer and closer to real time, and a lot of our data is available daily. you often have to take a moving average to get real accuracy and use ton a weakly or monthly basis. counting cars or oil tanks. >> how much do you give out? >> we don't give that out were you contracts with dozens of firms as well as multiple government agencies. >> james, so you say 60% accuracy rate, but in terms of -- so they're not using this exclusively? obviously, one data point in a matrix of analysis? >> right. >> take storage tanks, for example. what percentage of total storage the iea would use, for example, do you kov through satellites? >> over time we cover it all. the subtlety is we don't cover it all every day or every week. so if you look over a period of months we will see every oil tank in the world. and so, but if you look on a
given daily basis we're not getting anywhere close that. the interesting thing happens as we've been using digital globe at slights for years as well as airbus and a number of others, planets start to come online a new start-up in san francisco, we will get to the point, except for clouds, we will eventually see every tank every day. right now the current data products are based on seeing tanks every couple -- individual tanks only every few weeks. >> what does it cost, say if i'm running, i want access to this information, what are we talking about? >> we don't give out the actual numbers, but it is variable and depending upon the frequent siff updates you want and say the number of retail names want to cover it can be very affordable. or if you want daily access to detailed information on every retailer in the u.s., a bit more pricey. >> are these government satellites also or just private satellites? >> it's a good question. so, like, the digital globe sad lights we use are often used by the government, by government agencies and available commercially. >> one more -- >> a lot of newer satellites are
purely commercial as a second afterthought sell to the groft. most satellites are duly used. >> i'm sure you talked about this with counsel what do they say about the fairness of select information using essentially piggybacking on government satellites to give information to those that can only afford it, versus the general investment public? how do you handle that issue or examine that issue? >> good question. >> it's a were question. satellites are none owned by the government. >> the parts leased by the government? i understand. >> right. the government is one of their major customers. interestingly, we we also used lens. the information is available freely to anybody. the advantage we offer with respect to land, we have the aie expertise to pull more knowledge out of that satellite information. the imagery is freely available
to anyone. >> james, appreciate the time. thanks for joining us. >> absolutely. happy to be here. >> james crawford with orbit's insight. not new. not the first time we've heard about whether it's analysts or hedge funds, trying to get access to this kind of data, whether looking at parking lots. >> uh-huh. >> and you'd think, especially ahead of retail sales, ahead of the -- oh, whatever the -- energy reports and stuff, judge, those would be days when it would be extremely helpful to have this kind of data point in addition to whatever else you'd get. >> and you have to applaud the investment in a very tough market to developing an edge. an inside edge, in making investments -- >> take that data -- tough, and say what does this mean from a position standpoint? but a lot of smart people are working hard to identify pockets of opportunity in the market. >> i got you on that. you, steve, raised the
interesting issue. wondering how the individual investor should view stories like this? >> well -- you know, it's difficult. it's difficult. but on the other hand, you know -- look. i'm a capitalist. so i believe that investing is a professional gain. it's not, should be a hobby for a sport or shouldn't trust it to professionals. to me this points out, not that it's evil for somebody to engage in this, but why typical retail investor is ill-suited to be an investors going into an etf or passive investing or turn active investment over to somebody like rob. >> such an important thing. >> right. >> because over the last seven to ten years, markets have been driven by macro policy. and as you start to see some of the largest part of these indices have gotten quite expensi expensive. utilities, tell coase, where's
value in a market and how do you uncover it gee normous energy invested in that and i think ultimately as policy diverges and prices diverge harks to pay dividends. >> all right. did you know it's been 12 years since google went public? next up the stock's exceptional run and what traders were doing in 2004. can't wait to see that.
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report." 12 years ago, google listed. up 100% in those 12 years. soaring from $23 billion to $530 billion and also in 2004, "mean girls," the hot movie. run of "friends" frended. usher tops charts. and the launch of facebook, and dr. j, still in the bits at the cboe. >> yeah? >> where's the photo? don't have a photo? >> you did. on the far right. >> i missed it. my bad. >> had the jacket -- >> the guy with no hair. >> there it is. >> with the goatee. >> yeah. >> a lot has changed. >> there it is. >> who owns google here? surprising. why is that? >> that's a great question. i've owned it in the past. i can't give awe good answer, and -- >> i've been in and out of it in the past like a drive-through window, wished i stayed.
a stock that came pup lick what people at the time were says 80 times earnings dialed back from the original valuation, and actually sold off in the first couple days, which sigh think is interesting, too. >> it being a tough ipo to place for a number of reasons. >> what was it dutch? >> yeah. >> so the underwriters hated that. >> exactly. nobody knew how to deal with it. >> do you notice how josh has to take everything back to fast food? like a drive-through. this trade was like a drive-through. >> all right. steel stocks dropping on a downgrade. do experts agree or is now the time to jump in? we'll do that next. "halftime report" with scott wapner is the place for market moving interviews. >> you don't call a company a sewer because the company made a mistake. >> real money. >> we are short both tesla and solarcity. >> real debates. >> people think that globalization has hurt businesses. it's not. it is technology that's hurt businesses. >> competition's a good thing. i don't want to have -- i don't want to go back to a single marketplace. >> the most profitable hour of
the trading day. >> i love this show. all i get to do is tweet about the show. i'm on the show! this is like the greatest moment of my life! >> "halftime report" weekdays at noon eastern. narrator: the best place to find adventure... kubo: come on, this way. narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even.
doc, the stocks have absolutely ripped. >> they've ripped and they've come off of that rip almost -- >> they've come back a little bit over the last month. but in six months ak steel is up 92%. >> true. >> letter x, u.s. steel, is up 160%. and steel dynamics is up 41%. >> judge, back at the beginning of july we had unusual activity in this one, put it in the halftime portfolio at the time i believe. the stock was $17.20. it hit $28 in like 15 or 20 trading days. and has come off just as fast right back down to $20 now. so i don't think it's a bad idea to pick some up here at $20.55 or wherever it is today. it's down 6%. this is one of those opportunities i think you take advantage of after that rollback. >> u.s. steel of the three technically is the only one where the slide was suspended at the rising 50-day, ak steel broke below as did steel dynamics. if i were to take a flight data
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ask your doctor about cialis and a $200 savings card stop taking cialis and get medical help right away. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. we are back. i want to get some thoughts ahead of what could be a pretty big week for the markets. janet yellen, jackson hole, how are you thinking about that as you assess where we are, where you think we're going? >> so we're in the lower for longer camp. we think if we're wrong and there's a change from that,
there will be some indication next week from the fed as to what they would signal for an earlier move. when you look at what's happened, the markets traded in the last ten days in a trading range between 2170 and 2190. i think they have been waiting to see what happens with the fed. they're looking for further election clarity. broadly speaking we have been waiting for a pause that kind of reflexes, i think we've seen it, maybe even a selloff if you get some surprising news next week. >> you think we're more apt to get a selloff at this point? people are sort of wondering where exactly are we? we're hitting these highs, we've come off a little bit, sort of spinning our wheels a bit trying to figure out exactly what's going to happen next. whether it's correction or -- >> we don't think so. >> -- slow melt up. >> we've seen a solid melt up after brexit, but that was based fundamentally on earnings. we think going into q-3 and q-4 you are going to continue to see the macro trajectory be
positive, earnings be more positive. companies are doing better than people expect. and markets grind up in the wake of that. i think it's tough to be a buyer today. we want to wait to see what happens. maybe it's base building, maybe it's a slight selloff. >> but you like it sounds like so you can take advantage of the opportunity. >> buy. take advantage. 100%. >> i agree. i think it's at the point where you want dry powder so you can deploy it when you get the correction. the market is fairly valued, arguably a little overvalued. but so is everything else. so what's the least overvalued? it's not credit. you've got the spread to the 10-year in high yield. that's egregious it's so rich. >> what needs to be brought up is that third quarter earnings and revenue now are slated to be up at the same time. and we haven't seen that for a quarterly expectation. >> in six quarters. >> yeah, you have to go back to the end of 2014. so that's a new development that i don't think gets enough attention. >> doc, give me your thoughts here. >> well, it's one of the slowest expirations of the year, judge. so people watching the market
know that already from the broad market. but from options standpoint, this is dead. i think it does pick up into next week with jackson. >> well, there's a look at the dow jones industrial average down 63 points this hour. s&p is down 8. have a great weekend. does it for us. "power lunch" starts now. scott, thank you very much. welcome everybody. i'm tyler mathisen. this is "power lunch." and here's what's on the menu. a martin skrel li like price hike on a popular life saving drug. it's hitting shares of one major pharma company at this hour. more on this developing story ahead. you know the product, i'm pretty sure. and throwing in the towel, trump's top campaign man says i'm done. more on the latest shakeup ahead. manafort out, lochte's losses, just how much might one wild night in rio cost the gold medal swimmer? "power lunch" starts right now.