tv Making Money With Charles Payne FOX Business September 23, 2014 6:00pm-7:01pm EDT
moody's chief economist john land sky will be with us. don't forget to dvr the show if you can't catch us live. have a great night, we'll see you back here tomorrow. ♪ ♪ charles: lots of big news moving markets today. here's what you missed: first, the latest on the isis airstrikes in syria and the government's crackdown on corporate inversions. rich edson in washington d.c. >> the president's announcement that we have attacked through airstrikes targets in syria, not only those isis targets that the president laid out a couple of weeks ago, but thal corazon terror group, why the u.s. expanded its campaign. there are now some in congress who are calling for a congressional vote and authorization on this expansion. and meanwhile, the treasury department laying out new rules that would make it more difficult to have a corporate ip version, something treasury has been saying and a number of
republicans are now opposing that. charles? charles: thanks very much. now let's get you up to speed on what went on in the market today, nicole petallides from the floor of the new york stock exchange. >> charles, it was selling a across the board, even the nasdaq which tried to give it a go, in fact, sold off as well. the dow finished lower by 117 points, closing at 17,055. the nasdaq was down 19, and the s&p 500 down over 11 points. there are concerns about china's growth, concerns about europe, the manufacturing and services sector. also it is the end of the september quarter, and, of course, we have geopolitical concerns of what's going on over in syria and isis in particular. we had some names that gave it a go. apple, for example, had its second highest close ever. on the other hand, alibaba hit new lows. so you do have a mixed bag. i should note that there is weakness here on wall street, and nyse stocks seeing 53-week
lows -- 52-week lows. actually, the highest level of the year. we had some winners including go pro and facebook. and, hey, bed, bath and beyond was looking pretty good in the afterhours after its earnings report. those are some stocks to watch. charles: thanks a lot, nicole. today with payne's pros we've god hillary kramer, susan sullivan, small business expert. we're going the need your expertise. and, of course, hitha, we need your expertise every day. i love that dress. not sure what the statement is, but i love it. [laughter] tracy burps and matt -- tracy byrnes and matt mccall. airstrikes against isis and this new group out in syria and iraq, overnight the u.s., saudi arabia, bahrain, the uae, jordan and qatar, there was a financial center, supply trucks, armored vehicles. now, the action saw the debut of
the $335 million f-22 stealth fighter from lockheed martin and tomahawk missiles. gold was up slightly but less than 1%, not as much as you would think. i think there are greater issues facing this market including the white house's stance on inversion deals. it hurts just a few companies directly, but the use of executive order spooks the overall market, so let's talk about investing. as a big issue and a threat that exists, let me tell you, the middle east is one thick. i've been cautioning there's going to be a huge arms race centered in asia. there will be trillions of dollars spent on weapons, and we're going to talk about the investments there. but first, matt, the action, we're officially at war. how did that impact your investing, and how do you think it impacts the overall market? >> i don't want to say i ignored it, but i didn't look at it too much. the ip version situation is pushing the market down because you saw what sectors are affected the most; pharmaceuticals, for example. they did rally back though.
my bigger concern is the fact that the market itself is selling off. you're seeing now, you know, as nicole mentioned, most lows on new york stock exchange all year. you're seeing a breakdown in the market, and i look back at the last two septembers, we had about a 3% pullback each month. charles: new highs versus new lows, hillary. i've got to the el you, the s&p -- the russell 2000, i think the number's like 10 to 1. for a lot of old school investors, that is a red flag right then and there. going to war officially, the inversion news, how does that impact the market? >> well, right now the market is telling us that we are going to do okay. also the price of oil -- charles: so you have no problem with another triple-digit loss on the dow today? >> i don't. i don't, and i know the indications are bad because of the breadth of the market, but at the same time we have to look at the kind of stocks that are coming off; deere can, caterpillar, utx, united technologies. they're coming out because of fear in asia, china. i think the marching orders are
keep investing in the market because we're not worried that the oil supplies are going to be interrupted. charles: susan, i want to ask you from a small business/main street point of view, this sort of atmosphere, okay? we're back at war, the corporation -- president taking on corporate america again. how does that set the mood for main street investing? because we know that's the epicenter. that's where all the jobs are created, that's what's been lagging. >> well, i think, first of all, all americans are relieved we're finally taking a stance and not twiddling our numbers. i also think small businesses don't want the government in their business, so that's very nervous. but they're still struggling, they're still worried about the challenging economy, and as one of my friends on facebook wrote, as long as people still need their dogs groomed, i'll be okay. i think that sort of sums it up. [laughter] charles: all right, let's sum up this segment. a lot of these stocks are already up. hillary, anything that you would talk to someone who says, okay, listen, the middle east is one thing. this arms race is going to go on
for at least a decade. how would you profit from it? >> buy raytheon. it's really about communications, reconnaissance, sensors. raytheon is really the best of breed when it comes to the large defense companies. charles: hitha, did you have one? >> i've been sort of bullish on boeing for a while, but i think boeing -- charles: you know, it's been trailing the rest of these guys. i thought i'd like it because i'd be paid off from the commercial side of it. what about you, matt? >> i like lockheed martin. they're flying that bomber for the first time, and i think they're going to be using it a lot more, unfortunately. charles: time to blow the whistle here. let's open up a page from partnership's investment playbook. here's the big question. it's been the big topic beneath the surface. has financial engineering finally run its course, and if so, what are the implications for this rally? investing 101 says companies reward shareholders in two ways. they can pay you a dividend or
buy back their stocks. dividends, of course, those are the checks and amount. the buybacks make your slice of the pie bigger because they reduce shares outstanding. in the process they also help to bolster your earnings per share, and for many, that is the key driver of stock prices. last year american companies bought back $500 billion of their own stock, and so far this year ain't been too bad either. 275 billion. these are levels not seen since 2007. of course, we know what happened after that, right? corporate insiders, this is interesting. the insiders have been selling their stock a whole lot metropolitan they've been buying through mid september. 23,000 of these executives have sold stock. it's the lowest ratio of buys to sells since 2000. corporate buybacks have never been known for perfect finalling, but these insiders -- timing, but these insiders have a mac for knowing when to sell at the top and when to buy at the bottom. it's kind offed, but all of a
sudden wall street is leery of buybacks even though it's played a major role in this rally. some point to the financial sector, though, they say think back, they bought $207 billion of their own stock between 2006-2008, then they needed $250 billion from the american taxpayer the next year to bail then out. tracy, some of these massive buybacks, they are a form of legal manipulation, if you will, financial engineering if you will. there's also some positive impacts with respect to accounting, but people are becoming leery. >> two things; they affect earnings per share and your corporate taxes. earnings per share, it's basic fractions, right? you have your total net income over the period divided by shares outstanding. if they buy back, the earnings share gets bigger. it's that simple. char charles they just manipulated the bottom line. >> again. fourth grade fractions. now, on the corporate tax side they're taking on debt to buy
these shares back, so when you take on debt, well, you get a tax deduction for debt. you get a deduction for that. meanwhile, though, if you keep the cash on your balance sheet, you pay taxes on that. even if it's in a money market -- >> tracy makes a great point. >> so for the company, it's much better to do the buybacks. keep in mind for the shareholder, the buyback is actually better -- now, you know i don't believe in these things at all, because to me, a share buyback is living with a girl, giving her the dividend and forgetting the ring. charles: the company's paying tax -- >> and then they're paying tax on it as well. charles: right. >> they don't pay tax at home until they sell the stock. charles: hold on one second. go ahead, hillary. >> it also depends on the specific company. charles, you mentioned the financials. home depot, they're out there buying back stock and borrowing money to buy back stock. so on one level tracy's saying, absolutely, if there's a benefit to it, what happens when rates rise? it's going to be so expensive,
we're going to see a lot of companies really get hit. but then you have jpmorgan and the financials. cheap stock, it makes sense for them to go -- >> the rates respect going anywhere anytime soon -- aren't going anywhere anytime soon which is why they're doing this. charles: even apple, one of the richest corporations in the world, if not the richest, borrowed money to do this kind of thing. >> right. >> but there's also a lot of corporate greed involved here, too, because a lot of time the executives are doing this to line their own pockets. charles: that's what i want to talk about it. does anybody find it problematic that the company is buying back stock as the executive is selling finish. >> right. i think the executive should not be allowed -- >> and if you're an investor, wouldn't you want them to invest that money, mergers and acquisitions, jobs, r and r&d? >> only if there's an opportunity out there to do it. you're not going to build a factory just for the heck of it. [inaudible conversations] chorls. charles: hold on a second.
let matt finish. >> let me finish there, jeez. the cash level right now is 91 weeks of net income. they're sitting on a opportunity of cash. they must do something with it. charles: so let me say this, matt, the fact that they're not putting this money to work in a proactive manner -- building plants, hiring people -- is that an indictment on the economy, and if it's, does that say the market should be lower? >> that's a concern because it shows there's not opportunities to spend this money. that's why they're buying stock, they have no other option. >> they announce that they're going to buy back shares over the course of the next three years, and there's no accountability to that. they get this pop in the stock, everyone's like, yeah, they're buying back shares, but they don't have to. i have a list of companies who from 2013-2014 said, no more. charles: we had the top ten names on the board that bought back stock, and it's been with inconsistent. exxonmobil, intel. so there's no real science to
when they buy this stock. haphazard at best. so i think if we're looking for insights to the market tops, i don't want use corporate buybacks, but i do worry about all the insider selling right now. >> okay, charles, it's fascinating. the ceo of dupont, alan coleman? what happened here was she exercised her options, she brought in $31 million, immediately sold it, so she got taxed at a higher rate. in the meantime, she's selling her shares. nelson pelts is coming in saying dupont has to get split up. if this woman is selling her shares -- charles: is that a red flag to you? >> it tells me there's a problem. charles: guys, i'm going to go back to one that was a huge home run, now it's pulled back. it's a leading platform for operational intelligence. i know it's a tease. i'm going to give you the name and the investment thesis, so stay with us if you want to make money. ♪
over 12,000 financial advisors. so, how are things? good, good. nearly $800 billion dollars in assets under care. let me just put this away. how did edward jones get so big? could you teach our kids that trick? by not acting that way. ok, last quarter... it's how edward jones makes sense of investing. ♪ ♪ ♪ charles: all right, guys. got to blow the whistle right here. let's open up a page from payne's investment playbook. what happens when hot companies turn decidedly cold? i've got two big household names
everybody knows, many people have them in their portfolio and, obviously, they are struggling. now, there's a lesson here. there's a business lesson, and there's a management and investing lesson. in the past year, whole foods have seen their shares down dramatically from $65 to under $40 a share. now some people are saying it's a potential takeover candidate. that was almost unheard of a couple of years ago. here's the big problem. it seems like the love affair may be over. you know how we monitor retail sales through comp store sales?. the next year, 6.9%. and then this year every quarter it gets lower, 5.4, 4.5, 3.9. where's the love for whole foods? management is doing a whole bunch of things, they're going to get the apple pay, instacard and, of course, that always impressive loyalty program. well, starbucks is another one. it's been in a rut just as well. and reports now say they did
testing, get this, of beer latte. it's similar to that popular guinness milk shake that tracy always has around st. patrick's day. i don't think it's going to be enough to turn these guys around. again, look at this same story, comp sales stores drifting lower and lower and lower. all right, guys, the next real, real deal. what do you make of that, guinness, ice cream? [laughter] >> no idea. charles: no? okay. super, you're the business expert. let's talk about this from a business management point of view because, ultimately, as investors that's how we should evaluate these companies. >> right. charles: what's going on with whole foods, and how do they turn it around? >> you know, i think it's a very desperate attempt. you know, it's a very, very tired strategy. it's a copycat strategy. if you really want to break out, you've got to give your customers something of value, something that they can't get anywhere else and get them to change their buying habits. this is a tired strategy. the apple pay, what percentage of people are going to be using
apple pay right away? i don't think it's going to work. charles: on that note, hitha, is it inevitable that, ultimately, you just fall out of favor? i know we get it a bunch with the teen retailers, but we get tired and move on. >> sure. and it's up to the retailer to keep revamping. with whole foods they're missing the mark at their pricing power. they are way overpriced with the organic foods, and market share's being taken away from places like walmart who are offering organic food at 25% less than what whole foods is offering. so when you're having kroger, walmart, any of those grocery stores stocking all this organic food and organic lines, that's where -- charles: i remember walmart tried that organic thing like five years ago, it was rotten bananas. >> brands do go away. and so all my, like, my favorite steroid friends out there, all you have to do is they jabot,
and you know exactly what i'm talking about. i had those pants, if i wore them now -- [laughter] there are certain brands that go to brand heaven. charles: but they are cyclical. keep them in the closet. [laughter] >> if they stuck with their core customer and they listened to their core customer and focused on what they do best rather than trying to steal ideas that are already being done from other -- [inaudible conversations] charles: i want to ask hillary, you know, for me it peoples like they were a victim of -- it feels like they were a victim of their own successful everyone's catching up to them. is it possible to turn it around? does it take a takeover for the stock to pop? >> it would be the only way, charles. the stock looks like it's cheap right now, but it's not. and operating margins are 6.7%, and they keep getting narrower. the competition and, yes, walmart has gotten it right. and every supermarket we go to has gotten it right. and there's a trend towards local now as well. charles: let's shift a little
bit, talk about the lessons, investing lessons on this. many people, myself included, i'm always telling you, hey, buy what you know, you know? think about investing where you shop, where you spend money. people might say i spend money at whole foods, and i got whacked. the fact of the matter is people are finding new locations. i just don't think people thought about it when they switched from whole foods to the other place that maybe i should be switching that in my portfolio. i'm also not a fan of this copps capitalism in whole foods -- conscious capitalism. also what are the winners when you think about this? it's the companies themselves, the united foods. those are the kinds of names -- matt, you had a grand slam a month ago with the -- >> andy's got taken over. i love white wave. i think if you're just shopping at whole foods now, you're late. i like stkl, private label fruit snacks, nature's findest, pure nature, not a bad looking chart.
flying under the radar. charles: and the symbol for white wave is wwav. hitha, something here. you probably make your own organic foods. >> i try to. charles: when are you going public? i want to invest in you. organic food, soap, compost. >> so it's similar to white wave, i like hane because as we were talking about, whole foods isn't the only game in the market out there. there's walmart, there's kroger, there's all these -- shoprite, hane distributes out. so you're going to see -- charles: the symbol is hain. >> yes. charles: we're talking a picks and shovel approach to this. instead of picking which supermarket, they all have to sell the same products s. there a different approach? >> who has growth potential and who's mature. i like sprouts farm, sfm. sprouts has the potential and management claims they can grow
quadruple from where they are now in terms of stores out there. and whole foods might make a desperate attempt to acquire -- >> this company's stroking. i can tell you whatever you want to hear. [laughter] charles: hold on a second. knox. >> spokesperson, but you can get all this on amazon prime. charles: by the way, it's nice to think that sprouts may grow. [laughter] all right, guys. my first stock idea's going to be soon. it's a volatile tech name, i'm going to tell you right now. you love these guys when they go straight up, but this one, i think, is going to be worth the ride because i think it's going to be a grand slam again. we'll be right back in three minutes to make you money. ♪ ♪ you know, if you play football for a long time like i did,
man when i got shingles it was something awful. it was like being blindsided by some linebacker. you don't see it coming. boom! it was this painful rash of little blisters. red, ugly stuff. lots of 'em. not a good deal. if you've had chicken pox, uh-huh, we all remember chicken pox. well that shingles virus is already inside of you. it ain't pretty when it comes out. now i'm not telling you this so that you'll feel sorry for me. i'm just here to tell you that one out of three people are gonna end up getting shingles. i was one of 'em. take it from a guy who's had his fair share of pain. you don't want to be tackled by shingles. so please go talk to your doctor or pharmacist. talk to your doctor or pharmacist about your risk. i have $40,ney do you have in your pocket right now? $21. could something that small make an impact on something as big as your retirement? i don't think so.
♪ ♪ charles: all right. let's get down to it, help you make some money. the stock recommendation tonight, i've mentioned it before, and while i want to go back into it, i'd like to see you go back into it if you're still not in it. splk, it was featured on august 28th. $45 right how there it went -- right out there, it went straight to $60. you see it on your screen, a little bit under $55, it's one of these high-flying tech names that matt talked about earlier in the show. they have been getting hit. particularly this company, they're focused on application software. cloud, digital intelligence,
internet of things, i.t. operations. they do a lot with microsoft infrastructure. they do monitoring, security, all of that stuff plus compliance. it's in all the hot spaces, and the stock, well, remember earlier this year it got ahead of itself? it was up huge, 93 insider sells, 1.8 million shares of stock. it beat a hasty retreat from that all-time high, $106. but the revenues were up 53%, 500 new customers, bass pro, china university of hong kong, dell, dropbox, the bank of portugal. a pretty wide, global breadth of customers. t guidance for the full year ahead of wall street, operating margins, i think, are going to continue to expand. it's right around that 50-day moving average. i'd like to see it hold here. your next leg to the upside should take it to 60, but this time i'm looking for a breakout to take the stock north of $70. it's very volatile, so we'll take it one step at a time. it's good for short term,
long-term investors as long as you can deal with extreme volatility. hillary, what do you think? >> i love splurge. we've been in it a -- splunk, now the right time to buy it. it's about understanding your data, and so that customer base will continue to grow. everyone thinks this is an expensive stock -- charles: why? >> because it's trading at 18 times revenue. i think that oracle will step in and buy splunk, so they have catalysts behind it that could also give it a lift and, yes, once it breaks out from a technical standpoint -- charles: what do you think, hitha? >> that was my question. i don't think they're going to be able to compete with hp and ibm, so i thought maybe it might be a takeover target. >> bingo. >> i like that the technology is great, big data is really big -- no pun intended. but hp and ibm, i feel like they can't really compete with it, so the only other option is for it to get acquired. >> i have to agree with hillary, i think oracle is a great
acquisition, prime target for them because oracle needs to do something to get its, to reinvent itself, to keep moving forward, and i think it'd be a great match because the -- charles: real quick, matt, yea or nay? >> kerr plunk. charles: i think that means buy. let's check in with neil cavuto right now and see what he's got coming up. >> richard branson right here in the studio, he's one of the leading voices behind this big climate rally that's been going on pretty much across the globe. i'm going to be asking him the if he thinks protesters are making noise or really making a difference. all that and his plans for space tonight, 8 p.m., fbn. charles: thanks a lot, neil. i'm a little jealous about that one. all right, listen, the biggest payout ever to a whistle blow e and it actually answers the question how many -- ask we're going to answer the question for you, how much money can be made off six degrees of kevin bacon? i know it's convoluted. we've got the answer for you, and it's no game.
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know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. charles: so get this, on monday the government paid anonymous overseas whistleblower a record $30 million to help uncover an ongoing fraud. now, obviously, that is a whole lot of money, and, well, there's a lot more where that came from. this policy of misfortune allows the sec to pay informants up to 30% of the money they recoup from these investigations. matt, with that type of incentive, we may see entire neighborhoods starting to spy on each other. who's going to go to work? everyone's going to be like, what's going on? >> well, no. and i can just see these junior brokers thinking something's going on. the sec can't do their job
already, now you have this on top of it. it is a joke. i was looking out for the clients, i was defrauded. if you're that much of a good samaritan, do it for free. charles: a lot of these times they're actually involved in the crime, and they still -- >> and that could very well be the case with that ubs guy back in 2012, $104 million. ubs ended up paying about $p 00 million -- 700 million in penalties, but $104 to rat out your firm, i can't imagine you're ever going to work in the business again. charles: you don't need to. [laughter] >> sure, we need the se,. -- the sec. the more they can prosecute and it's not just insider trading, it's mortgage-backed securitieee faith there will be in the u.s. stock market, the more we will have investors x it's all about transparency. charles: when i started on wall street, every building down on wall street, there were maybe
every floor had a different brokerage firm. there were hundreds and hundreds, and i watched the sec put them all out of business while there was a worldcom, an enron, a bernie madoff. they had no problem crushing little firms with two or three offices, but when it came to the big boys, they looked the other way. >> you are absolutely right, charles, but now in the past two years it's different. >> exactly. >> look at the list of -- [inaudible conversations] >> i agree with -- charles: i'm not impressed. hold on one second. >> they tried to change their ways. >> i agree with what matt said. you should do it because it's the right thing to do, because you encourage the behavior tracy just said. somebody is involved in crime, then they benefit from it. charles: 30% is too much. >> $30 million is ridiculous. charles: let's put a cap on it. >> but let's really call out the situation. the situation is the sec really needs a revamp. if they were doing their jobs properly, they wouldn't have to pay these people millions of
dollars to go and do the investigating. >> they're still behind the 8 ball. can we just say bernie madoff one more time? you're going to have to knock the organization down and start all over again to fix the endemic problems. >> it hurts the little guys like me. it doesn't matter to jpmorgan, they pay $700 million, it's fine, they move on. >> just like small business, it nearly puts you out of business. charles: let's move on to the second policy of misfortune. parents of students are putting themselves so deep in a hole to pay more college, right? in the meantime, though, guess what the universities are doing? they're shelling out bigtime money for an hour of singers and actresses. larry king, kevin bacon, william shatner: look at the money these guys make and not to say hillary clinton at $225,000. that's what she charged the university of nevada. now, full disclosure, i do do a lot of speaking engagements, and i do get paid by universities,
and i am a little bit jealous bit the list -- i'm not getting kevin bacon money. [laughter] tracy, there is a point it seems like where colleges and universities, i mean, do they have no shame? tuition is sky high, and these kids are coming out of school with massive debt. do you have to give kevin bacon $70,000? >> or tony bennett $110,000? [laughter] i hope he sung an entiral women. charles: -- album. charles: the kids don't even know who he is! >> and the sick irony is we don't have money for scholarships? let's do the right thing. look, tuition is up because it's so hollywood. you need a sushi bar, a spa in the dorms these days. all that stuff is the reason -- >> i love it. i think it's fantastic because i read the article about kevin bacon. it was like a packed house, people were loving it. if that inspires one kid to go do something -- [laughter] >> how does this benefit their education? >> exactly. >> come on. they need to go -- >> inspiration.
>> no, no. he talked about his kids and his anniversary. and here's the thing, here's the end of the day, you and i are paying for that speaker because when those children can't afford those tuition and they get their student debt and they default on it, guess what? guess what? >> tuition has gone up 162% since 1994, and the speaking fees, activity fees, 450%. i mean, something needs to get cut there -- >> they offer you $70,000 to go speak, would you go? >> uh -- >> yes. >> yes. [laughter] >> a california university paid $7.5 million in speeches in -- charles: how much? >> $7.5 million. charles: that is a lot of -- [laughter] >> that's way out of control. charles: listen, kevin bacon got ripped off by bernie madoff, so i don't blame him. [laughter] hillary, do you need a quarter of a million bucks to talk to these kids? >> no, they really shouldn't. princeton, harvard, oxford, many of these universities don't have to pay a dime. barbara bush was very inspiring,
my commencement speaker, and that's the kind of speaker we need. remember steve jobs' speech at stanford? those kinds of speeches should be remoralized. charles: big screen the. >> and call it a day. charles: listen, i tell you what, when it comes to speeches i remember when jack figure to china. i think he got 2.5 million. charlie it was like taking candy from a baby. he said he suffered ten manuscripts and took questions after that. that's my idol. i would have to say, i have spoken to corporate world myself. i've gotten paid a lot of money. >> i was wondering how you got that dress. a demographic disk. when you won't pay for the clothes. you know what, believe it or not i might come to debbie wasserman's defense. make you sure you send me your questions or comments about the show. i love when you get -- stevie
inged. >> listen i know certain industries like the tv industry, we get clothing lownsz maybe she should get an allowance maybe because she's a woman. i just can't feel sorry for her. i can't cry any tears. [laughter]y any tears. >> i spoke to donna brazile who ran al gore's campaign for another piece i was doing on campaign financing for clothes, and she was saying for campaigns the democratic, dnc does not fund anything. when you're on a campaign, clothes, they just don't pay for it. so in this instance, yeah, i agree she shouldn't have gotten payout. when you're on a campaign and even if you're -- charles: no, but she represents the entire party. >> it doesn't matter. i think she shouldn't get an allowance. she makes enough money to go ahead and pay for clothes and, by the way, you can get clothes
that look great -- >> she's awful. she's more than mean. charles: she's mean, she's a mean person. >> let's call a spade a spade here. part of the reason you get an allowance in certain industries is they want to control what you wear. so if she wants the money, then the dnc all should be able to say this is what you have to ware to represent us. i don't think she wants to go there. >> listen, we'll give you clothes, but we have to change that geri curl. [laughter] charles: maybe she forgot the do rag. >> i agree with you there. >> one point we need to brick out is -- bring out. charles: a double standard. >> it becomes a subject matter for the media. men, we don't talk about your haircut or your makeup or -- [inaudible conversations] >> i think it's fair to talk about the double standard. charles: that gets a lot of attractive women on tv and some nonattractive women -- look at that bright smile. >> i was going to talk to you
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endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. >> all right. time now to address your questions on the market. curious about a stock industry. always ask me on twitter. it's ask payne hashtag. now the last days you've been asking about a lot of stocks.
a lot of them are down. cheetah mobile. it's a stock symbol it's been an unmitigated disaster. i actually think there's going to be a place to buy it. in the last two days, we're adding gtag yesterday. almost at the exact bottom. plug made a huge reversal today. i'll try to tweet this out if it happens during the day. i know it's an unmitt gable disaster. what would you tell people who bout it now and have been crushed. >> it would be good to buy more shares. >> where? >> it's finding a bottom here. there were a lot of companies thrown under the bus and now we're going to see a rotation back. >> 50 percent today closing a low today, how is that finding a bottom? why is this a bottom? >> for me, i think what's happening -- we've talked about
this yesterday in the show. nasdaq's stocks are down 40 percent or more. these are docks that are held typically by individual investors and the selling gets to the point where it just triggers a tsunami like dominoes. it's not like big blue chip names. i think we're seeing this with cheetah. >> you don't know when that's going to end. >> you don't try to guess the bottom. that's why for me personally. i think it's oversold. i thought it was oversold three months ago. >> what they're saying, what the market is saying, with these small caps is that we don't trust this. we know they're not as liquid as the big guys. so you're seeing a total rotation out of the small guys into the big guys. everyone is unsure what is going to happen. >> the market are less sophisticated people who don't have to stomach the volatility. they become their own worst
enemy. >> apple led the day. >> nasdaq went positive twice day. all right. guys, also got the -- some great emails, and i want to highlight a couple that i got last night and this morning. one was with michael. as a financial i sympathies with your emails. while i don't receive nasty emails. average returns should be 10 percent should be easily attained. rihanna it meant a lot to hear you acknowledge the difference in a market last night. we hold onto our nasdaq stock trusting companies are wot the wait. sometimes in the dark. thank you. i want to say, first of all, this is exactly what we were talking about if you want to be less in the dark you have to know the fundamentals. you have to know it's a top line growing organically. do they have power?
are they expanding their margins? that makes it easier to hold even when your gut is saying golly. admittedly i do that every day, it's my job. it's one of the big things you have to do, if you sell every time the stock is down, ultimately you'll never make money in the market, but i appreciate that guys. and, by the way, there will be loser. to michael's point it's not always as easy at his seems. hillary, you have a thought on that? >> yes. >> when do you take a loss. >> you take a loss if a stock is down 50 percent or more, you can cut it down, but it depends what it is. ifit a small cap, i'll hold it for the long run. you can go 60 percent and come back up. >> you know what, because we're going to be -- your ego takes a hit, down 20 percent maybe i'm wrong. but i'll move to the next one. >> i regulate 90 percent of the stock i've sold.
most people would jump out a window if their stock goes down 50 percent. budweiser continues its new role as the social conscious of america with a great new commercial to prevent drunk driving. it never hurts, of course, to have a cute dog. >> hey, i'm sorry. i decided i shouldn't drive home last night. i stayed at dave's. i'm back. i'm back. yeah, i'm back. >> will that make you drink responsibly? >> you know i don't like beer dogs, but i love dogs. dogs and babies are always great. >> seems like bill clinton was out today talking about things that i'm very passionate about. corporate greed. i hear you. believe me you don't want to miss it.
>> well be it's that time of the year. bill clinton and new york city blaming slumping wages on low minimum wages and, of course, corporate greed. in fact this is what he had to say, company after company takes more of its profits and spend on dividends and less on sharing with the employees broadly. although i wouldn't be surprised if in the next five years it didn't start to change again. i saw jack on one of our panels that he thought his investors would place money over the long run if he places his customers first. i got to tell you this is an attempt to make the corporate balance sheet part of the public domain and it misses the much more broader point. we must get our people prepared for higher paying jobs and we also have to make sure that we don't give them so much incentive and that we don't lure
them into a lifetime of higher minimum wages. what do you just, tracy. >> i think bill clinton should take a finance class. by giving dividends you're helping the shareholders. you're creating wealth. >> maybe someone is running for office. september historically a tough month for the market. if your taser is down, don't sell it. don't are not. this week, i want you to think about reading with open arms. buy low. sell high. when they go low, i know investors typically scatter they get bummed out they want to sell them both. i think the action today. particularly in apple, particularly facebook. the smart are looking something to buy right around this time. i want you guys to do the same thing. think about buying further weakness. as always, thanks a lot. fantastic show.
if you can't watch, dvr us. you don't want to miss a moment of making money. i'm going to do hand it off to my man, tom sullivan, lou dobbs. great name. keep it right here. fox business. in the islamic state for the first time ever launching the air strikes on the radical terrorist group in syria. more than 200 air strikes came in three ways the first of which started last night at 830 p.m. eastern time and the islamic state was not the only target. american warplanes and tom hawk crews missiles also bombed the command and control headquarters of al-qaeda off shoot called the khorasan group that us officials say was plotting immanent attacks on us interests. the second wave sta