Skip to main content

tv   Countdown to the Closing Bell With Liz Claman  FOX Business  March 13, 2015 3:00pm-4:01pm EDT

3:00 pm
melissa: i don't know. thank you to my producers in the control room and the lovely ladies on the set. i hope you're making money today. liz claman is here with "countdown." take it away. liz: we hate to say it, but we told you so. today the whole world learned what fox business viewers already knew back in january, the feds would look into the potential stock manipulation of herbalife. the probe investigators are looking into statements by people hired by bill ackman who has a well-known short position. herbalife is a pyramid scheme. today, ackman defends himself to another fox business reporter here. we have dierdre bolton on that outright saying herbalife. ackman says won't exist within two years. so what happens next? not the kind of charge chevy drivers were hoping for.
3:01 pm
they're recalling many cars due to a monoxide poisoning problem. the cause of that problem and whether it's an issue that could affect other electric vehicles. and... ♪ liz: just 48 hours ago we asked the attorney for marvin gaye's family whether happy sounded strangely familiar. what marvin gaye's close family members now think. we'll find out about their efforts of trying to stop blurred lines, deemed by a california jury deemed as a knock-off of got to give it up. this one is not ending. the last hour of trade. big sell-off. can the markets mount a clear comeback. start the "countdown." ♪ liz: talk about a freaky friday.
3:02 pm
breaking news. the dow and s&p are on track for their third straight week of losses. the longest streak we've seen in two months. only the russell 2000 seems to be closest to the flatline right now. it's up this week. and fort last five out for the e out of six weeks. watch the russell. we have all the may do the stor. the fed would look into stock manipulation in connection with herbalife. dierdre bolton speaking to bill ackman asking him how the high stakes battle will end. he pointedly answers her. adam shapiro has been digging into health risk claims associated with lumber liquidators. and jeff flock joining us from chicago on the bad news for gm. another recall. this one has everything to do with a potential harmful side of fuel efficiency. so let's take this one by one. breaking news in the
3:03 pm
bill ackman crusade against herbalife. bill ackman taking on activist carl icahn when he told dierdre bolton this afternoon, he thinks icahn is stuck with 17 million shares of herbalife, a company ackman is betting against and has said is an outright pyramid scream. this comes after reports that he cried foul in order to plummet the stock price. charlie gasparino had the scoop back in january. listen. >> this is what we do know about what herbalife is trying to do in terms of their financial, their counterattack and legal aspect. they're trying to prod regulators to go after ackman to file some kind of stock manipulation charges. >> guess what, today herbalife's stocks piking, people that pershing hired. ackman denying investigation at least into him. who will win?
3:04 pm
the shake maker or the shake hater? first we start with charlie gasparino. charlie, ackman is in the cros crosshairs. charlie: a little prop for you. an herbalife protein bar. very good. i made this point at the time in your show in january. it's extremely hard to prove. we should point out the wall street journal story did not advance beyond what we said. company progressed regulators to start an investigation into market manipulation. what we know, those regulators and the us attorney's office at the time, in the form of the us attorney's the law enforcement agency in the country, it's now going and interviewing people based on what herbalife said. we don't know if they started an official investigation. ackman has said, he did not receive a subpoena. remember, we're a few steps beyond this being nuclear for ackman. even if they did start an investigation. very difficult to prove. that said, we should point this out about
3:05 pm
mr. ackman. just so, you know, no fan of mine. he doesn't like a lot of stuff i report. but here's the bottom line. he has pushed this thing in ways that make other short sellers sort of blush. he has hired people. he has hired whistle-blowers have been on his payroll. he has done stuff with politicians so they would go and lobby the ftc. >> secretly recorded things. >> i don't know about that. >> well, he said he did. >> well, whatever. nothing surprises me about what bill ackman has done to take a company. i'm not saying anything wrong to do with short selling. >> they do their investigative work. >> he's pulling out all the stops to put this company into bankruptcy and lay a lot of people off and hurt it. when you do that, well, then you better expect a lot of scrutiny on your methods. i will say this. it always struck me as odd that he was this emotionally attached to attacking this company. if you saw him during
3:06 pm
one episode, he cried on-air. liz: we have breaking news, charlie, on this. herbalife is commenting to fox business. we received this. here it is. bill ackman is doing his best today to obfuscate the story, which is that the wall street journal has credible sources telling them that his campaign is under criminal investigation by the doj. the department of -- hold on. this is from. despite his appearances, that truth is out. the rest of the story about his misguided antics will follow. charlie: let me make this point. you know, bill and i butt heads. let's make the point. we don't know if this is an official investigation yet. we know they're kicked the tires based on what herbalife told them to do. that could be -- >> have we heard from carl icahn. charlie: i put a call into. i will say this about bill ackman. i've never seen a short seller. and i've covered them all. who broken ron.
3:07 pm
i've never seen a seller spend this much on a company basically trying to reduce it to dust. really an amazing story. (?) liz: let's get to what he told fox business today. bill ackman is not a billionaire investor because he shies away from a fight. today he was denying a probing by the fbi. dierdre bolton standing by right now. you spoke to ackman personally during the program. very interesting interview. dierdre, what jumped out to you the most here? >> the range. as you've been discussing. this is a two-year fight as far as bill ackman and pershing square is concerned. there are other people on the other side of the trade. of course, ackman is betting against the future of herbalife. i was surprised by some of the language he used. i mean, he said essentially herbalife cannot function. there is no future for this company as a legal company. he even put a time frame on it. here's what he told me.
3:08 pm
>> i don't think we'll be here two years from now. i think this thing will be resolved. either the business will have imploded or the government will have shut it down. >> so you hear that there, liz. i mean, essentially he says that the company will not last for two years. a lot of moving parts to this. it's worth noting that the prosecutors and, in fact, the fbi are interviewing people, as you rightly pointed out, who were hired by pershing square. there's also numerous investigations, numerous probes, i should say, against herbalife. so essentially, for two years, both sides have been volunteer si vociferous. you've heard ackman say, i think icahn is stuck. people on the board. even if he wanted to get out of this as a long or someone betting on the future of herbalife, he can't. >> you broke the angle of that one, dierdre. charlie: one thing i want to say, based on the interviews that took place with ackman
3:09 pm
today, you would think the news was herbalife and not ackman. talked a lot about herbalife. he didn't talk a lot about the potential stock manipulation of -- that's the news here. we know he's getting -- liz: he denied it. charlie: i'm saying. it's one thing -- the story is that bill ackman may be under investigation at some point. it's not that herbalife is under investigation. we know that. >> time will play it out. you can check out the entire interview that dierdre did with bill ackman on also ris "risk & reward," 1:00 p.m. on fox business. now we get to another heavily shorted stock. lumber liquidators. working hard to dust off its image. the flooring company striking back against a 12-day old "60 minutes" report that sent the stock plummeting. adam shapiro on the story. adam, first a conference call. now they're offering free test kits at a flooring scale. >> the stock is down 15%
3:10 pm
in trading just today. let's talk about those kits. they announced they'll offer air testing kits within the home to any lumber liquidators customer who thinks they have the flooring that was at the center of this "60 minutes" report. only 1,000 out of 6,000 potential customers have requested those kits. at the center of all this is the test for formaldehyde that "60 minutes" used. according to "60 minutes," "60 minutes" did real world tests on the lam laminants. dr. philip of mt. sinai hospital calls those levels unsafe. now lumber liquidators has gone on the offensive saying, absolutely not true. that in real world testing, their floors are safe. and i went to the california air resource board. that's the standard that is set in california and also nationally. i went to their website to find out about these tests.
3:11 pm
here's what they say. indoor air testing will not necessarily indicate whether the flooring is emitting levels of formaldehyde. you can have the floors properly tested, but these tests are difficult and expensive. this may be something that lumber liquidators can use in its defense against "60 minutes." short sellers, they are having a big rally against lumber liquidators. short interest in this stock is that its highest level in almost three years. the stock way down from its peak in november of 2013 when it was $113. now trading -- what's the latest -- $30. then we have the cuts. goldman sachs. jeffries. all cutting their price targets on lumber liquidators. liz. >> it's dropped its rating entirely. it's not even rating it. we want to let everybody know. this story is far from done. in one hour, we have the chairman and founder, tom sullivan, we will
3:12 pm
ask him questions others have not asked. has he been to china in the past 12 days to look at this situation? why isn't he offering refunds right away? this is a big issue here. he's fighting back at the moment. the stock right now struggling down about 15, nearly 16%. the closing bell in 48 minutes. sell-off here. we have a potential problem with carbon dioxide -- carbon monoxide poisoning from a hybrid electric car. gm is recalling more than 60,000 chevy volts. what's the latest? we have a live report. el pollo loco. the mexican fast food chain, healt healthy earnings. checking out with steve sather on whether his first month after his ipo were his worst and how he fatback here. the stock is squeezing the shorts. ♪
3:13 pm
3:14 pm
3:15 pm
3:16 pm
i'm almost done. [ male announcer ] now you can pay your bill... ♪ ...manage your appointments... [ dog barks ] ...and check your connection status... ♪ ...anytime, anywhere. ♪ [ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. liz: a fox business news alert, the recall nightmare continues
3:17 pm
for gm. yes, gm is recalling now more than 64,000 of its 2011 to 2013 chevy volts over a concern that the car is so quiet, people are forgetting to turn it off, leading to a build-up of carbon monoxide. so far, general motors is aware of two injuries stemming from this problem. jeff flock has the latest. i remember this started happening with very quiet other cars that ran on gasoline. >> well, this does. the volt runs on gasoline too. that's the peculiar problem with this one. this is a problem with electric cars. the thought they need some kind of sound that let's you know when you haven't turned the vehicle off. well, here's the problem with what happens with the chevy volt. this is in the gm statement as well. if a driver, this is their statement to us. if the driver exits the vehicle and inadvertently leaves the vehicle on, the high
3:18 pm
voltage battery will drain after a period of time then the gasoline's engine kicks in to recharge that battery. the problem is, what if you've left the car in a garage. god forbid, what happens if you fell asleep in the car and it kicked on. you didn't know it. you're asleep. your garage is filled with carbon monoxide. gm says two injuries have been reported as a result of this problem. the issue, of course, becomes, liz, is this a problem with other vehicles? still trying to track that down. there are other plug-inhybrids out there. to the best of our knowledge, it's just the volt having the problem kicking back on when you didn't know it and building carbon monoxide. >> kicking back on is a different story than being too quiet. jeff flock, thank you so much. general motors down about one and a quarter percent right now. today, yeah, it's friday the 13th. i'm the person who walks under ladders. i'm not superstitious at all, but the market is
3:19 pm
having bad luck. all three major indices heading for weekly losses. biggest losing streak for the dow, but also for the s&p in two months. let us look at imex crude. down 2% to the 46 level. actually 45.15. the lowest since january 30th. the energy sector was the worst performing sector this week. for everybody who thought oil bottomed to 48, not close here. how do you play it traders at the new york stock exchange, cme, and imex. right off the bat, we begin with, which part of this market do you like at? is this a buying opportunity? we saw triple digital gains yesterday. >> it's a great question, liz. at this point, you're looking at triple digital gains today. what's the fed going to do on wednesday, that's what it comes down to. these little moves are looking for something that move the market. it's the strength against the us dollar
3:20 pm
against the euro. liz: that's a 12-year high of the us dollar. last i looked, this thing keeps plummeting. a dollar, five. we have it at 1.477. >> the strength of the us dollar are hurting corporations that are multinationals. you're seeing it in the averages right now. >> i'm wondering if it isn't the us dollar or once again oil moving in tandem with -- stocks moving in tandem with oil. we're looking at a very cheap oil price in the after market session. nobody wants to go into the weekend long here. >> it seems that way. i was surprised there was not that short covering rally, at the end of the day. that's usually what we have before a weekend, people get antsy about that. the story, definitely the strength of the dollar. the dollar is weighing on both the market of the equities and the oil. so much so, it's really become quite obvious now. granted, there maybe an easing next week.
3:21 pm
we'll see if those work in tandem. that will give a little boost to the oil. but it's a market under tremendous pressure now. and, again, this news coming out that, from europe, news on our inventories this week. nothing is helping right now. again, we have a market that really is looking weak. but, again, i always say it's darkest before the dawn. when they look so bad, they'll probably buy. >> todd, what is the trade you make today that will make you money next week? >> well, i think regardless of what the fed says next week, they're not going to have any action. and the market is tired of their words and their language. so i think the back end of the treasury curve is a safe place to be. i think even if the fed tightens at some point in 2015, it will have such a small residual effect on back end treasuries. there will be still scarcities. you'll still have buyers. buying the back end of the treasury yields is
3:22 pm
still optimal. ten years over 2%. ten years where they're trading. >> all right. i don't know. can we see the 30-year. 2.70. unchanged at the moment. great to see you will of you. walk under ladders, will you guys? they're like, no, we're traders. we're superstitious. closing bell ringing in 38 minutes. call it el pollo loco. shares going nuts after its latest earnings reports. can it keep up without planting a flag in the northeast. bring it east, guys. we have the ceo in a fox business exclusive. ♪
3:23 pm
3:24 pm
3:25 pm
3:26 pm
>> neil cavuto talking to the biggest names in business. the most important names in politics. big name celebrities. cavuto the first place people turn. only on fox business network. ♪ liz: oh, boy. you need to see this one. investors are going loco for el pollo loco. the stock jumps 12%. burning the short sellers. better than expected
3:27 pm
earnings. pretty fascinating story. shares at the fresh mexican food chain are up about 20% this year. but they have fallen some 34% over the last six months. remember, they went public back in july. so this beat on both the top and bottom lines. surprised a lot of people. a beat, by the way, that was a healthy beat. is el pollo loco back on track. can it beat chipotle with its crazy chicken mentality? steve sather with us in a fox business exclusive, the ceo. this is a bigger trick, steve. we have the dow down 195 points. you guys are far and away bucking the trend here. right at the start here, we have to ask, i mean, this is a company i'm very familiar with because i'm from the west coast. but what brought you to a beat on both the top and bottom line? >> well, liz, first of all, glad to hear you're a fan and have had the product and enjoy it. liz: oh, yeah. >> we know our chicken is almost -- we call it
3:28 pm
addictive and cravable as are the rest of our products. you know, we started out about three and a half years ago with a strategic vision on all aspects that we were getting to revitalize our brand from -- we always had great chicken. we added to that some tremendous products such as our quesadillas, new salads. the balance of the menu. we've gone through. we have a new hacienda design. we remodeled half our stores. so it's all these efforts that we've done over the last three years that have been lifting the brand. so we had a very good year last year from the time we went public in the summer through the fourth quarter. we're very pleased, as you can see with our fourth quarter results. liz: i mentioned it was heavily shorted. i believe it's about 47% of the float where people are swirling around you guys hoping you'll do poorly and you have not. at least in this most recent quarter. but it was a go after the july ipo.
3:29 pm
and you would fall on 34% over the last six months. you talked about the new menu additions. do you think that's what pulled you up from the bottom here? >> well, as you know we priced at 15. opened at 19. closed around 23 or 24 the first day. then it shot up in that initial three or four weeks in the high 30s, even 40. then came back down into the 20s, where it was about 24, i think, yesterday. and up much higher today. so we're -- we're well above what we happened for our ipo. we're focused every day executing our plan. so i really try not to focus on the stock price. i focus on our execution, which is growth. did you know, we're going to into texas, we've opened three stores in houston. we'll open an additional five to seven this year. and we're moving on to dallas with new sites that will open up the first part of 2016.
3:30 pm
liz: okay. >> expansion. liz: huge part of the united states on this map that is clean or at least missing you guys. i say missing because i went to the one i think in sunset about ten years in the '80s. i was working at channel 2 news. sunset and vine. that brings me to chipotle. you probably bristle at the comparisons. it's a much bigger market cap. are you the david, and is chipotle the goliath? we know how that story ended. >> first of all, we don't try to compare with chipotle. we think they're a great brand. we're happy they introduced burritos and tacos to the entire country. when we're ready to come to the northeast, you know, the consumer is certainly ready for us. we have very high quality food, as does chipotle. people ask ask always ask, when are you coming to the east? ultimately, that can
3:31 pm
said, we're focused on the southwest right now. and very heavily in the texas market, houston and now dallas. we've got about 300 trade areas we've defined in the southwest region that we can expand to in current markets. so a lot of room to grow. we're at 416 stores right now. about 60% franchised. and 40% company. franchisfranchisees we embrace them. they're our partners. >> friday the 13th should not be superstitious for you. you're up 11%. i appreciate you coming on exclusively here. >> great. thanks, liz, and come on back to california. we'll get you some chicken. >> no, you come to new york or new jersey. okay? i need you to open in new york or new jersey. steve, thank you. >> i'll work on it. liz: good to see you. steve sather. ceo and president of el pollo loco. that stock is bucking the down trend. we are down.
3:32 pm
everything from the much awaited apple roll out to the ceo who got a shout-out from janet yellen. here's what's worth repeating. >> ultimately, a year and year and a half down the road, the watch hits the inflection point. developers are out there, they've developed crazy apps that consumers will go out and want to buy the watch for it. if you can take that perspective, this is part of that road to a trillion. >> the issue really is, when you're dealing with a servener a private home, regardless of how well it's guarded, the more people that know, and now the world knows, the bigger the target. >> they filed this lawsuit, we finished it. but they started it. so we'll ask for an injunction. we'll try to cease the selling of it so we can reach a deal where we can share in future revenues. where the gate children can share in future revenues.
3:33 pm
>> we'll exercise every post trial remedy we have to make sure this verdict does not stand. we look at it as being in the seventh inning of a game that could go into extra innings. >> i think it's around looking at investments and the choices one might make. and looking at innovation. and looking at it more as a catalyst for driving business. those that figure out the catalyst side and those that figure out how to get ahead of their competitors is where we're trying to help companies. liz: with 27 minutes before the closing bell rings, you just saw pharrell williams and robin thicke's attorney saying they'll continue to fight. our reporting on that story sent shock waves through the industry. tonight, we ask the attorney from marvin gaye's family how his efforts of shutting down the sales of blurred lines are going and whether another legal suit may be in the works. march madness gripping the nation next week. for us, it's march
3:34 pm
equity madness. starting it right now. picking winners in the stock market. our fund managers are putting their brackets together. which stocks and which teams will come out on top? ♪
3:35 pm
3:36 pm
3:37 pm
3:38 pm
♪ liz: with 22 minutes before the closing bell rings, movie goers heading out to see the new cinderella movie. swamped. they may have to let -- they may have fewer theaters to choose from. nicole petallides is on the floor of the new york stock exchange.
3:39 pm
>> so much has consolidated. we are watching one of the movie theater companies. we're watching in particular carmike cinemas. the stock has been popping. you can look at that. you can see how it ran up today. that's a two-day chart there. it's a winner this year. this is under the speculation that they may be doing strategic alternatives. possible sale. they're not commenting. the reports are that they hired jpmorgan to do exactly that. these movie theaters, as you well know compete against netflix and apple. we've seen movie goers. the number dwindle. carmike tried to make it different in that they offer alcohol and food. and so we'll see what happens whether or not they can move forward with strategic alternatives or possibly a sale, but the question is whether the regulators will give us a thumbs up. >> thank you, nicole. if you're going to the south by southwest festival this weekend. which is uber hip or
3:40 pm
uber cool. they have declared it a drone-free zone following concerns about public safety and performance disruption. if you're looking for a great aerial shot of the festival, you'll have to settle for your iphone selfies and your selfie sticks instead. where is vladimir putin? melissa asked it. russian president has recently canceled public engagements sparking rumors of health problems, plastic surgery, or even worse, hash tags like where is putin? and #putinisdead. that's blowing up on twitter. russian television channel releasing what they call new footage of putin meeting with russian supreme court president outside moscow. the video that has emerged is old reportedly. #fake.
3:41 pm
old video. where is he? and its $9 billion of march madness. the basketball mania kicking off next week. from your office to the oval office, 77, 7 million americans will plunk down $9 million betting on the games. good luck. don't get caught. is the sale of "blurred lines" any closer to being clearly shut down? richard busch is the attorney for the marvin gaye family. he was on with us earlier this week. he intended to stop the sale. he is with us right now. he is the attorney for the gaye family. partner at king and valley. we wanted to bring you back on. what is the latest in the halting of the sales of "blurred lines"? >> well, you apparently missed me, liz. i'm glad to be back again. liz: okay. (?) >> we're planning to file a request for injunction on tuesday.
3:42 pm
liz: tuesday you will file. >> tuesday we will file. and we will be requesting that "blurred lines" be prohibited from being sold or exploited. this is not unusual. this is what happens when someone loses an infringement case. the damages were only fort past. in order for the gaye family to share into the proceeds going forward, something has to be worked out with mr. williams and mr. thicke in the record label to share with those proceeds. >> have you spoken with them? >> not recently. i've read all kinds of things he's said. i've listened to what he said. >> i think 36 international newspapers picked up his comments with us. shortly after we spoke to you, let us listen first to what he said when i said to him, we hear at least from the other side, that would be you, that they will not appeal because it was so obvious pharrell and thicke had ripped off their song. here's what howard king said. okay. we don't have the sound.
3:43 pm
forget that. he was adamant. he sounded outright bellicose saying he would fight it. he would fight it. he would fight it. >> let me say this about that. everyone who loses says they'll appeal. all it takes is a filing fee. but they don't have a valid ground to appeal this to the jury. are these jury questions. there are ways during the course of a trial that if someone thinks that the other side has not proven enough facts to submit something to the jury, they can ask the court during the course of the trial, to enter a directed verdict or a judgment as a matter of law. he didn't do that. he let all the issues go to the trial. sorry. to the jury. and the jury ruled. and i don't see any valid basis they have for an appeal. liz: richard, we asked you after the verdict. the verdict was 72 hours ago. whether you were done with pursuing new battles. another striking similarity between "happy" and marvin gaye's ain't that
3:44 pm
peculiar. to remind viewers. here's "happy." and then we'll listen to" ain't that peculiar." >> ♪ >> here's "ain't that peculiar" from 1965 ♪ >> richard, has anything changed in a possible second look at this similarity with a new song "happy"? (?) >> let me say this, liz. this was brought to the gaye's family attention during the first interviews that took place. caught them completely off guard. they don't have a claim for this. they don't intend to bring a claim for it. and they don't have a claim. they're not, in fact, the copyright owners of "ain't that peculiar." it was not written by marvin gaye. they don't i have a claim. they're not interested in pursuing one even if they did. liz: okay. that's news too. they did say it sounds
3:45 pm
awfully familiar. clearly for pharrell. and the rest of us have been enamorder with marvin gaye's songs over the years. please let us know what happens. by the way, our viewers should know, you were named litigator of the week by american law litigation daily. you won this case. not even one you were pursuing. thank you so much for joining us. >> a friend of mine. he's not feeling well. he has open heart surgery. he loves you. arman. one of my clients. he's laid up. has open heart surgery. i wanted to say hello to him and let you know he's a big fan. >> hope you feel better. here's a big kiss for you, whoever you are. richard busch, thank you so much for joining us. richard busch is the attorney for the gaye family and partner for the king family. at least someone likes me.
3:46 pm
closing bell ringing in 15 minutes. how do you pick a winner in this march madness. we're talking about this very volatile stock market. there are only 68 basketball teams. but thousands of stocks have their picks. both lined up. ♪ ♪
3:47 pm
3:48 pm
when it comes to medicare, everyone talks about what happens when you turn sixty-five. but, really, it's what you do before that counts. that's thinking time, when you ask yourself, how do you want this to go? see, medicare doesn't cover everything. only about eighty percent of part b medical costs. the rest is on you.
3:49 pm
so, get started on an informed decision. [ male announcer ] consider an aarp medicare supplement insurance plan insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, these plans could help pay for some of what medicare doesn't. that could really save you in out-of-pocket medical costs. so, call now and request this free decision guide. just a little preparation could mean a lot down the road. make sure you have the information you need to go long™. think about this -- do you want to choose your doctors? avoid networks? what about referrals? [ male announcer ] all plans like these let you visit any doctor or hospital that accepts medicare patients with no networks and virtually no referrals needed. hey, you've made health insurance decisions before, but this time, you're doing it on your own. so, the partner you choose is big. [ male announcer ] unitedhealthcare insurance company has over thirty years experience and the commitment to be by your side. call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only plans of their kind endorsed by aarp
3:50 pm
and nine out of ten plan members surveyed say they'd recommend their plan. having the right information is just smart. do you really want to leave something this important up to chance? [ male announcer ] remember, medicare doesn't cover everything. the rest is up to you. so, call now, request your free guide, and explore the range of aarp medicare supplement plans to choose from based on your needs and budget. sixty-five may get all e attention, but now is a good time to start thinking about how you want things to be. [ male announcer ] go long™. liz: in the spirit of ncaa basketball march madness tournament kicking off next week, we've decided to come up with our own march madness brackets for investors. which stocks will score the best returns for your portfolio? let's get ready to rumble. we have hank smith. he's the chief investment officer.
3:51 pm
on the other, we have jeff. circle square alternative investments president and chief investment officer. this gets exciting. except there are just dozens of basketball teams, but thousands of publicly traded companies. so let's just get right to it. we have four different match-ups here. hank, i want to begin with you. you're picking walt disney. jeff, against walton disney, you're picking j&j. why walt disney? >> they're hitting it on all cylinders. espn is doing very well. the movies are crushing it with "frozen." now there will be frozen 2. you have the marvel series. star wars will be coming. and the theme parks are doing very well. (?) this is a company with very visible double digital earnings growth. out at least three to five years. liz: jeff, how will you battle disney who hit a lifetime high?
3:52 pm
>> well, i think the name of the game right now is mergers and acquisitions. a company like j&j, i think has the greatest chance of having very successful mergers and acquisitions in pharmaceutical and biotech. paying at 2.8% dividend. a lot of the stability in the company. the ability to be a -- have sustainable growth in an environment with a rising dollar is crucial in j&j. liz: okay. second match-up, everybody. jeff is picking lending tree. >> these are two different sizes of companies. types of of companies. quick line on lending tree. >> peer-to-peer lending is the hottest sector in banking right now. the banks are having an existential crisis. they don't know who they are. they don't know whether they should lend money or how to grow. with lending tree, with this big consumer debt pile-up, a lot need to go to a different lender. and lending tree is creating
3:53 pm
products where consumers and small businesses owners can participate. liz: hank, jpmorgan. of course, we got through the stress test. that certainly is valuable. this is a tough stock so move here. >> well, it's the best managed bank in the country if not the world. it's a very reasonable, if not cheap valuation. they indicated a 10% dividend increase. and we think there's going to be more to come. the earnings at jpmorgan are just monstrous. and this is in a zero interest rate environment. imagine when rates start to normalize, what the earning power of this company can be. so you're not paying that much. and we think you're getting best in class. liz: here comes the third match up. du pont. autozone. hank, one line on du pont. >> the tryon put. when the market sells off dramatically. du pont holds up. spin-offs which they'll do with their
3:54 pm
performance chemicals this summer have been very good for shareholders. liz: autozone. listen, jeff, great momentum behind this one with the good auto sales. >> yeah, good auto sales. also, continually growing expanding stores. you also have a company that runs just about as efficiently as any company that i've ever seen. they'll continue to expand into places like mexico. and they'll continue to grow revenue based on capital investment that far exceeds anybody in the space. >> hank has united technologies. jeff fort net. here's what we'll do with these two. we'll bring both of you back in three weeks when march madness is in full swing and finally finishing up. we will then compare and contrast and find out which one of you won the brackets. it's going to be great fun. we appreciate you both coming on. once again, here are the picks. hank, walt disney, jpmorgan, du pont. and jeff, j&j, lending tree.
3:55 pm
and fort net. who are you picking for real march madness, jeff? >> i don't know. i think yukon. >> hank, you want to go out on a limb here? >> they upset kentucky in the finals. >> i go with uc berkeley. wait a minute. they're not in it. are they? my alma mater. thank you so much. good to see you. closing bell, five minutes away. lumber liquidators stock getting chopped again today. how will the company recover? what's the plan after the "60 minutes" controversy slammed the stock. tom sullivan president chairman of the embattled company. david and i will have pointed questions. we'll get you some answers. ♪ for our clients.
3:56 pm
it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use,
3:57 pm
you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to
3:58 pm
liz: coming off the lows by about 100 points at least for the dow jones industrials,
3:59 pm
david. david: not bad at all. we saw very big moves like lumber liquidators that we're going to have the ceo just moments from now. liz: we need to get to nicole petallides on friday the 13th. the big story is herbalife, hlf the shares saw a 7% gain. we had a big interview with bill ackman with deirdre bolton. not widely-held but widely watched, nicole. >> widely watched and widely volatile. you see a 7% pop in the story. the investigation was that, today, right here, the rebuttal, but right now, you see the stock is up about 8% at 35.97. david: tom sullivan is founder and chairman not ceo of lumber liquidators. he will be on in a moment. they're getting hit again today,. >> this is opportunity for mr. sullivan to give a rebuttal. the company stood by flooring and caught. that is what they continue to have do.
4:00 pm
right now the stock is down 15%. [closing bell ringing] liz: pandora, big gains. maybe they will be a target. we're watching this on friday the 13th. david: friday the 13th living up to the name and reputation until the last couple minutes of trading. we're still heading up triple digits on downside. all indices are down as you can see. a much improved market from where it was couple hours ago. we saw down over 200 on the dow. other indices were down much further. liz: the nasdaq getting hit by 21 points. that is a big clip. not as big as s&p or the dow. the dow is down nearly 1% on interesting day where there were big winners like el pollo loco, jumping after the beating the street. that is a heavily shorted stock. we also have lumber liquidators. david: "after the bell" starts right now.


info Stream Only

Uploaded by TV Archive on