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tv   Countdown to the Closing Bell  FOX Business  September 20, 2012 3:00pm-4:00pm EDT

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look at the dow jones industrial. fighting back from a 75 point deficit today, and so almost coming to the flat line and above it again. i mean, now we're up two points. that will be the 17th time since about 1:37 p.m. eastern. we have to tell you this because we watch the clock just for you, that it's moved up and back and forth on the flat line. we have a weak reading on jobless claims that initially sent stocks down lower by 71 points into the red, but we've turned tails, and right now, it's companies like microsoft, kraft, and chevron. we are watching those for you. exclusive fed speak right here on fox business. did you see peter barnes' interview? it was crucial. boston federal reserve, telling peter today there are signs that the feds' quantitative easing strategy is working. here's a bit of it right now. >> we've some improvement in the
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stock stock market, mortgage rates down, long term assets go down. that's what we expected to find, and that's what we've seen in preeftion periods taking these actions. liz: here's what's going down on financials. some of you just feeling better about getting invested in them. they are under pressure today. pushing them under water? ubs downgrading citi group, goldman sachs, and morgan stanley from a neutral to a buy. we have a billionaire, self-made, who is not shying away from the financials. jeff green tells us in a fox business exclusive why he's tuning out the noise and betting big on the banks. jeff greene coming up. day two on what i decided to call can't decide trading. a lot of movement, but no real definitive moves. traders at the new york stock exchange and the cme. to have seen a deficit of 71 points and then to mark it all
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the way back up, cross the flat line 17 times at last check, what's that say about the psychology of the markets now and for the investor who is watching you? >> well, i have to tell you, traders are confused as to why we have the rally. numbers were not good. i think overall, news out of europe and china has not been good. we have a little bit of a disconnect. clearly, i think the housing market is still the thing pushing us. we have real estate, and four ipos did well, the first being over 40% at one point today. i don't know where it's at now, but it was almost 45% at one point. that really speaks to the strength of the news on the housing market has in this market overall. liz: very true. glad you brought it up, equally happy you brought up china because while everybody, most of you are sleeping, china came out with manufacturing numbers. you saw it in the cme pits, and
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the manufacturing numbers slowed down for the 11th month straight. that slammed the shanghai stock definitely. how much of that has to do with the color me cautious trading we are seeing today? >> it has to do a lot with it. look at global pmis, they remain under 50, and below that contraption level. that's a concern. we saw that in the treasury market this morning spiking from the highs, and now we backed off a bit. it's a cautious tone for a lot of traders with a lot of confusion. yes, we have the additional stimulus really from a global perspective which is what drives us. there's a little bit of euphoria, and we are reprizing risk based on the risk of real global growth. liz: right. again, notwithstanding in the interview with peter that if the fed jumps in, what do you know that we don't about weak data? i want to get to the imex because before we flipped to the no
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november contract, it was floundering. it's at $92 a barrel, and the new contract, what's that tell people invested in oil stocks ache exxon and chevron, and a apache, ect.? >> it's critical moving forward. if it breaks the $90 level, it's 86. stays at 90, supports, does not breakthrough, we're back to the 100 range for oil. that's the number right now, $90. i think the weak economic data in china got the market to sell off initially. stock market got stronger as the day went on, helping the crude oil contracts head back up. liz: why isn't gasoline coming down in lock step with crude? please? somebody? >> because it never does. liz: i know. >> takes time for the unledded gas to come down in price as the crude oil or the raw materials
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it takes to make unledded gas come down in price. we'll probably see that, but we'll see it in the next two to three weeks. there's a delay in that. liz: no delay when it shoots up for crude. suddenly the guy's there is changing the numbers, but anyway, thanks, gang. thank you for being on the floor show, a perfect segue to the discussion about the fact it's been a very wild week in the energy market. oil prices are down nearly 5% for the week already, and let's shake it up with the team. get perspective on the energy sector and why it matters to you. pat, one of thee most thoughtful and intelligent investors i know joining us for the hour today, and, pat, you say energy countries are price takers, not price takers and that's why you don't like them. >> at the end of the day, you sell natural gas, crude oil, at the price of the market. you are not in control of your destiny. if i have to be in energy, i prefer to own a company like
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national oil, selling the equipment, and 90% of the deep water rigs out there, so they pretty much set their prices. i like businesses that control their own destiny. liz: that's a point i have not heard made in the past. it's true. headline driven, and opec is thrown into the picture, very much -- well, you know, call it what it is, a cartel. >> exactly. commodity prices are hard to forecast. how many folks a couple years ago thought we'd have natural gas down to three bucks? not too many. liz: sandra, you watch it closely. you have more on the trade when it comes to energy. >> well, and to pat's point there, exxon mobile came out to explain the huge play into natural gas they made, a huge investment, and then natural gas prices only went down. because of the selloff, investors use it to buy stocks. the stock has been on a tear in the recent oil, really has not hurt it much, near a 52-week
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high, $92.50 a share. it was $77 just back in june. it's now well above the 200 day moving average, and the pe on the stock just ten, guys. seven out of the 20 animal cysts say it's a buy because of the broader performance against the stock market. exxon up year-to-date, and s&p is about double that. chevron also underperforming the broader market up just 11% this year. credit switch said 135 is their price target, ubs reiterated they are buying, and guess what? the pe on chevron is just eight. they are cheap stocks right now. liz: i'd take 11%. i've had worse investments than that. rich, it was a year -- a year -- feels like a year, but a week ago tomorrow that somehow inside the beltway maybe the administration is worried about what was happening in the middle east to tap the strategic
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rereceivers, and the administration said no way. there's the impact of other things aroundus as well. >> that's right. we talked about energy regulations here my awhile, the continued fight goes on, and this time, energy and the environment, and this evening, the house beginning considering a bill to curb rules on coal mining and carbon regulations. republicans running on this saying government rules reduce energy production and slow the economy. for coal alone, the federal registrar says there's more than 1800 final rules, and nearly as many proposed. democrats in the white house say cutting back on regulations pollute the air americans breathe, and the water we drink. the white house says the president will veto the bill if it gets to his desk. liz? liz: melissa francis and i both grew up in california. i know you remember in the 70s, you couldn't see the mountains. well, today, because of certain regulations, the air is so much cleaner in los angeles. i mean, there are good sides to that, but, again, you're in the
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energy capital of the world in houston. what's the number of one thing they are talking about there? >> well, they are talking about basically how much better their economy is than the rest of the country, and maybe they don't want to brag about it, but we do. that's why we are here too check it out. the economy grew at more than 8%, 8.6% n 2011, and they replaced all of the jobs that were lost in the recession. we want to find out what that's about. a lot of has to do with energy,t back in the 1980s, last time we saw the oil bubble burst, 87% of the jobs dependent on oil and gas. they diversified a lot since then and learned a lesson. now it's half. we will talk to rich, who just moved up on the forbes 400 list released yesterday. he moved up ten spots because the net worth increased by 3.3 billion or 3 billion i think was last year. can you imagine that? i didn't make $3 billion last year, liz, did you?
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liz: no. >> we'll see where he has money and where he's investing next and what he sees happening in the energy space. liz: you want to hear that, but he's doing well under the current regulatory environment. i like to hear those stories. how did you do it? thank, gang. a discussion i hope people learn from, definitely, the closing bell is 51 minutes away. the sectors, some of you just recently got the courage to invest in, and suddenly getting singed. the financial sector feeling the heat today with a slew of negative headlines like downgrades and significant job cuts, but the sector climbed 20% this year. should you still be buying? is there more to climb here? we're asking billionaire investor, jeff greene, if he's buying, holding, or selling shares at the big banks, and which does he think are the best right now? ♪
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liz: shares the pharmaceutical company up 16%. this is up off the highs of the session after a massive sell off yesterday, and let me show you that. there's the prior day, you can see the move to the upside today. following the announcement that aetna cut its coverage on the drug axar. it took off more than $1 billion of the value yesterday. many analysts considered the selloff to be sort of an exaggeration of the policy change. doesn't matter. the markets perceived it the way they did. this morning, jefferies cut the rating on quest corp. from a buy to a hold. the stock, the one year here, the stock down 11% over a year, down 30% year-to-date. tough 2012 # for questcor. what's grabbing your eye now? >> looking at food stocks,
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conagra raised dividends. look at the stock here. today, doing well, up roughly 7% now, but moving to multiyear highs, levels that were back in 2007 for conagra. you all are really familiar with the company, slim jim, peter pan peanut butter, and huntz ketchup. earnings more than doubledded and raise the the forecast. that's why there's a move of 6.5% to the upside. this comes after we heard from general mills this week also; right? cheerios and general mills is winner today. food companies are shining on a day where the dow is in the green, but virtually flat, back to you. liz: thank you, nicole. we appreciate it. there's overlap between wall street and washington lately, and you know why. it's all about money. charlie has details on wall street's support of republican presidential nominee, mitt romney. am i just supposed to ignore
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this -- >> look at this. i can't see, i don't know. liz: cut me, cut me, rock, rock. >> cut me. liz: they say it looks like i punched him. that's what the booth thinks. oh, yeah, that's what happened when you disagree with ms. liz. you get in a fight? >> no, i got a clogged pore. liz: cnbc trying to take you on? >> friends of mine, so, no, he wouldn't. lucky he's smarted that he wouldn't. joe is a friend of mine. as much as we rib each other. it was a thing. liz: it's a thing. >> it was a zit, that's what. they ripped apart my face to take out. liz: oh! [laughter] >> they tell fox business network, it's been a rough week
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for romney; right? all of the 47% comments, polls that look like president obama's pulling away in the battle ground states, and it's a tight race. what's going on? when that happens, you go to the donors, particularly wall street donors. they are fickle. they side with the winning side, and, you know, they've been big with romney for a couple reasons. the president's own low poll numbers going into the race, but president's policies. they are against dodd-frank, called "fat cats," and that said, they are fixing. the romney campaign people are scrambling from what i understand following a rough week to shore up that support asking the big wall street donors, are you still with us? are you going to jump ship with what i'm hearing from the people inside the campaign, and top wall street guys, people that i know, still supportive -- supporting the candidate romney. they are not jumping ship. that's the good news here. they are not jumping ship. he's maintaining his support on
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wall street, and they thought that was shifting back to president obama: from what i understand, that is not true. people are still -- wall street is still pretty much supporting him. i think by 2-to-1 margin, and they tell me they don't see that changing now. who knows about the future. we are getting from the wall street is a lot, a lot of agitation about the direction of the campaign not being aggressive. liz: a do something change? change management? >> be more assertive. go toe-to-toe with president obama. stick up for the 47%, but say it why it is because a lot of country's depending on big government, i'm against big government. go after the president on middle east policies. wall street executives say you want my money, i want to -- i want to hear some feedback. they are asking for meetings with romney himself. now, the interesting thing is, you know, romney is basically what they tell me, cloistered among top advisers. i think his wife is one, by the
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way, not such a bad adviser, but, you know, they want access to them, and they are not getting it, and -- liz: they don't want to throw good money at someone who is not taking the bull by the horns. >> this is why they will not jump ship, the alternative is not good. i don't think president obama in the second term will be prowall street or probusiness or cutting taxes. i don't see him. i mean, here's getting there by attacking private equity, by creating class warfare. i don't they they will do a 180 #. anyway, the wall street guys are discouraged, letting them know it, not jumping ship, and the other interesting thing is they are basically putting some money behind other candidates, and they really like the chances from what i understand of linda mcmahon, the wife of the wwe ceo vince mcmahon. she's running against a democrat in a traditionally democratic state for a senate seat.
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doing well in the polls. jack welsh, the former ceo of ge is holding a fund raiser for her tonight. liz: backed from romney after the comments? >> no, she didn't back away. she's going to jack's participant -- apartment you should know. liz: i was not invited. >> either was i, but i find out these things. that's tonight in new york city. liz: thank you very much. closing bell, up nine points, ringing in just 39 minutes. we can't see enough of that lovely eye. >> you don't like my eye? liz: feel better. the season's draught causing food prices to sky robert -- skyrocket as the world's population goes past 7 billion. talking to both a farmer and financial adviser, ron carson, about his feed the world investment strategy, but, first, we head down to the farm where
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fox business is gathering one of the smallest hair -- harvests in more than five years. >> exactly? see that combine going through the soybean field, well, i'm in that, and you don't believe i'm in it? now you believe it; right? this is the soybean harvest, worst in nine years, we'll talk to the people bringing in the harvest when we come back. stay tuned. something you'll see only here on the fox business network. you know that; right? ♪ tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong.
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liz: stocks finally turning up the heat and cranking up the coffee market. we have been talking about this for more than a year. the seattle-based company will
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start selling what it calls the single serve brewers this week. the price will be $199. in april i's ceo howard schultz every time about this i asked him once again if starbucks would be eventually jettison or cut off or scale back its relationship with green mountain coffee roasters, this is what he said. >> it will be a big business for starbucks and it is complementary to our partnership. the relationship with green mountain is brewed coffee and espresso based high pressure machine. we will sell it this holiday giving dubbing boost for the holiday season. we are supportive of the green mountain business. liz: that is not the way the markets see it. look at shares of green mountain coffee roasters. they are proceeding this as negative. they are tanking down 9%. tough for green mountain. there are other companies that we decided to looking to to see
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who would stand from to benefit. their specialty retailers who will sell them. where will be be available? bed bath and beyond by next week. get in line. they are not just doing cups of coffee but cups of milk as well. see what happens. let's move from copy to grain prices. farmers are speeding up the hardest after a long summer of route to get through a system of high prices. jeff flock in illinois. >> this is a combine running through a soybean deal you see that actually doesn't look bad to me. >> 80% of a normal year. this is in a low 40s. >> when we put the sharks up we are seeing soybean prices come
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down. we were off $0.40 a bushel. prices coming down. price is still pretty good. >> we did prices a couple weeks ago when the market was stronger but that is a weather dependent. >> you sold them. there is a better price. if you look at the other tractor that is gone up over there. shea helps you especially when you are trying to move fast. >> she is an integral part of it as much as i am. >> this is classic. i leave you with a shot to the left. off of the market already sold and more than they are getting today. has to be smart. they have to work smart, not hard.
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liz: i love that work. love you, jeff flock. that is a lot of love at fox business. >> my next guest has firsthand experience on investing and farming. t aren't owned a farm and he will outline that for you. and a management group founder and ceo at a fox business exclusive. looking at what you saw what is happening on your farm and have you been able to capitalize on the price contrail left from the drought? >> it is. you have to be nimble in your marketing. pretty fortunate. finally it changed so much. you look at the picture, made me want to be back on the farm. prior to the drought was a compelling story.
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from rice to grain equivalent, we come of with a new candidate each year. as warren buffett says, find something in front of it. before the drought we thought this was a powerful trend. record stocks going into this year. and crisis mode coming out of it. liz: trout or no drought there is massive demand. tell people how to capitalize on that. let's start with atco which is a farm equipment company, why that over d. year? >> we own beer, and in one of the strategies and in another strategy. and sit 70% undervalued and looking for companies to benefit from productivity gains. we need to have equipment that will allow you to keep costs down both the year and addcode
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do that. is a compelling evaluation. liz: it is up 18% year over year. then you get to the fertilizer and engineering companies. and the potashes of the world. >> you look at what happened even on our own family farm we used to hire workers to cut the weeds out and round up ready soybeans and spray it and it makes it efficient and reduces the cost and the ability to moisture. [talking over each other] >> not an inexpensive company. we think it has real legs and technically it looks really good here as well. liz: it is up 37%. potlatch is down 11%. >> there was some debate whether the drought, previously applied
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to the fields, and potash. and the incremental return we get. and technically potash doesn't look good. >> and -- [talking over each other] trimble is in the navigation business. precise. not to precision. we can run our columbine through satellites. hour, has the guidance, how many bushels of a particular area. it is sophisticated. and strong technology, marketing and be able to get a feel for what happens and when he should
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rotate. liz: imagine this guy with farm equipment. good stuff. please come again. robert karlsson saying don't go into specific grains but stocks that helped in growth. closing bell ringing in 27 minutes. financials feeling the heat as we told you but billionaire investor jeffrey green is going to tell us why he thinks the financials are worth buying right now. that is next.
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robert: watching shares of oracle falling ahead of the earnings report due after the closing bell.
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shares of the stock fell up 20% this year. they expect earnings per share $8.79 and revenue $36 billion and change. investors should look for key signs of business. software out performing art ware side. oracle's cloud strategy continues its acquisition and finally investors should keep in mind june through august typically oracle's weakest quarter. don't miss "after the bell" for full coverage on oracle's earnings release in 30 minutes time but now we continue count down to the closing bell with liz claman. liz: let's get to nicole at the new york stock exchange. you have your eye on a couple things here. nicole: taking a look at consumer stocks. what is interesting is they are doing well on a day we have seen oil pulling back and people think maybe they have more cash and you see some names on the move and it is worth noting of 15 top performing stocks in the
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s&p 500 are consumer related. names we all know very well including what we talked about that makes lin jims, dollar tree and limited and o'reilly automotive. consumer stocks doing well. liz: i hope someone is spending money on you. it is your birthday. nicole: thanks. liz: happy birthday. it is a bad day for banks. ubs downgraded morgan stanley, citigroup and goldman sachs. wasn't the worst call in the world. they downgraded to neutral but bank of america is cutting 16,000 jobs according to the wall street journal. all of this on the heels of increased threats of cyberattacks and some getting inside the chink of the armor. getting into a fox business exclusive to tell you whether he is dealing with big banks and
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then billionaire investor jeff green. thank you for being here. jeff has been very bullish on the banks. are you still? >> absolutely. if you look at bank of america, citigroup and morgan stanley all three are trading at 65% to 71% tangible value. i can tell you with what these banks went through tangible values are pretty conservative calculations so if morgan stanley wanted to shut the doors and fire their employees the stock would be worth 50% more than $17 it is trading at today. still very compelling value. liz: when jeff talks about book value, book value as you say is almost like the greener number. warren buffett looks at it as assets and liabilities and if the company were to be liquidated which we are not saying they are you still like them including bank of america because with thousands of
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layoffs does that weaken the bank or do they focus on the merrill lynch which would be at rainmaker. >> i can't tell you exactly who they are laying off and why and i assume they're making intelligent decisions and consolidating jobs and locations and making themselves putting themselves in a position to be more profitable. these banks are so well positioned for the recovery we are going to have. no question we have a cyclical balance sheet and we see it, multifamily and housing but there aren't that many banks out there that will be cutting up this high to make mortgages and auto loans and whether it is bank of america or citigroup they are in excellent shape to make huge profits. liz: did you add your position on a day like this? >> i have a position i am comfortable with. last time i was on was after the j. p. morgan london whale thing happened and i did have it at that point and if the stock went
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down after that it is up quite a bit. liz: do regionals excite you at all? smaller banks? >> i don't know have any position in regional because you can't invest in everything but you have to look at every regional bank on its own merits just to see what they're tangible book value is and what their business model is and make a decision from there. liz: do you care who wall street might be backing? charlie gasparino said that wall street money is still flowing to mitt romney because, quote, consider the alternative that obama is not friendly enough to wall street and he would do thing that would crimp their profits like push through the volcker rule and dodd-frank. >> if you look at what has happened to wall street since president obama took office wall street has come from being near bankruptcy and liquidation after lehman brothers to making almost record profits. the president of the stock market is an all-time high. president obama is very good for
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wall street. president obama has been good for the stock market. there is certainly leadership issues lacking in both candidates and it is unfortunate that there is so much weight put on to the president is. our problems are due to much bigger issues like we were not prepared for the high speed industrialization of china and we wish the president could wave a magic wand and solve the problem. we need the leadership skills of ronald reagan or jfk to bring americans together and understand it is an economic world war out there and we need to fight and win the war like we do in the olympics to win the gold medals. liz: you work your way through college. i like to point out that you come from a perspective when you hear about mitt romney jumping to 47% and he clarified it. some stick by what he said and there are a lot of people on government assistance. where do you stand of that? >> when i heard that my mom is
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85 years old and lives in south florida. she has to get in front with her friends who are part of these -- go out and get some jobs and contribute and don't be so lazy. it is salinas to talk about 47% of the population. when you look at who is in very is disabled and veterans and people who served our country and come back unable to work at all. it is senior citizens who worked their whole lives and are on social security. there are always people who take advantage but i was a candidate for the u.s. senate in florida and visited people who were on public assistance and food stamps and i can tell you none of them want to be on public assistance. most americans want to work and take care of their families and feel good about themselves. the problem is those manufacturing jobs i do so well when i was a kid have disappeared. we have to get together as a
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country and put americans back to work and that is not going to happen with continued low tax rates. it will happen by the government has to be involved and that means to have national infrastructure banks and fund private-sector to rebuild the infrastructure of the country and create good paying jobs where americans have dignity and work again. liz: bigger issues to tackle here. great to see you. thank you for coming on to tell us he's invested in the financial. appreciate you being here. jeff green leader and a billionaire investor. closing bell in 14 minutes. we will hear from packed dorsey about the high price you may be paying for safety in treasurys and corporate bonds. plus xbox that are in a sector that is not as risky as you think. [ owner ] i need to expand
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liz: how many of you got into things because you thought they were safe investment? we will talk about the cost of safety. many traditional safe havens are getting more expensive. pat dorsey is back with ways to get safety in your portfolio without the high prices. the fine safety. >> most be fine as it doesn't bounce around a lot awry will get my money back. treasuries for example. the question becomes if you are buying a ten year treasury and one.8% you will get your money back but after inflation you will probably get lost for ten years. >> what about quicker potts? >> pepsi recently sold a 30 year bond at 3.6%. would you lock up your money for 30 years at 3.5%. liz: i might be dead. >> that is my point. people i thinking of safety
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month-to-month not will that help me achieve my [talking over each other] >> exactly. liz: if you look at that you look at things like consumer staples, tobacco and high dividends. what better investments than what people watching feel are traditionally safe? >> big picture you're changing dividends focus on dividend growth, not current yield. people want it now and utilities have gotten overbid. focusing on companies with lower dividends with better growth like kinder morgan -- liz: it hasn't live from houston. >> williams cos. very similar. regular corporations that own pipeline and each yield 3.9%. kinder is growing at 12.2% and growing 20%. i would argue that is a better
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total return than the utility at 17 times earnings yielding 3% that grows as inflation. liz: i remind our viewers that rich edson was that williams in a fox business exclusive because they were getting into nuclear power and unless they were getting some deals when it came to that so there are opportunities over all in those names but what about technology? when you look at dividends technology has ever taken the traditional dividend payers thanks to big names out there. do you like the past means giving dividends? >> cisco is a great example. john chambers finally find out what the crew training for dividends was and greater than 70% ceausescu yields 3% and has 13% cash yields. free cash flow divided by what you pay for. liz: jump from the chart but up 20% over the past year. everybody says john chambers is thinking of leaving or the company doesn't have massive
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direction. i thought it was pretty expensive. the got a contract. >> chambers walking down a long-term run at -- unachievable to reasonable in high single-digit and initiating the dividend and turning to shareholders. the other tech stock is cheap, oracle has that pulling dividend and seeing larry ellison return capital to shareholders in a meaningful fashion would be the final signal of this idea on silicon valley that is an admission of defeat. do declaration of victory. liz: the company is no longer a growth. >> so profitable i can give you money back. liz: thank you very much. by the way -- [talking over each other] liz: after the bell, stay in the green room and hang out. >> keep an eye on europe and the backlog. liz: europe and the backlog.
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pat dorsey upset about captive advisers president. closing bell ringing in six minutes. we are clinging to the flat line slightly above. don't forget to follow me on twitter at liz claman. follow the entire show at fbn count down. i will tell you the stocks today up more than 40%. giving a boost to the yellow affect. stay tuned. copd makes it hard to breathe,
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things like yelp and zillow. can we count again? let's talk to david asman. >> we are going to get the oracle earnings at any moment. as soon as we get them we will bring them to you live. let's go down to nicole at the new york stock exchange. liz: let's look at the stocks that are up-and-down. reporter: there were some tough expectations on oracle. but you are seeing them under some pressure. david: let's talk about oil. freefall has stopped for the moment. has oriole have found a bottom here? reporter: who can tell if it is at the bottom. oil has been lower, lowered, the consumer stocks have been doing ve w

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