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tv   Fast Money Halftime Report  CNBC  December 13, 2013 12:00pm-1:01pm EST

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that's good. >> they were pretty good. >> wednesday's the news conference, of course. markets are relatively flat overall, after three days of loses. top gainer, adobe, up over 10%. >> and with that, that wraps it up for us this week, simon. have a great weekend. >> you, too. let's hand it over to the "halftime," a very special "halftime report." ♪ >> throughout time, there have been rivalries that lived in infamy. >> hold! >> and in 2013, "halftime" has hosted some epic bouts of its own. >> you think i want to invest with you? okay, let's move on -- let's move on -- >> i wouldn't invest with you if you were the last man on earth. >> -- you're trapped in the past. >> the loudest voice in the room is the guy who has the least to say, that is you, my friend. >> announcer: today on the "halftime report," a throwdown for the ages. eight fierce traders in an epic battle for profits, glory, and
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the title of -- trader of the year! the "2014 playbook playoffs" begins now. >> playoffs? >> nooo www w! >> what's your prediction for the fight? >> pain! ♪ all right, live from cnbc world headquarters, welcome to our main event. "halftime's 2014 playbook playoffs," i'm scott wapnerment all eight of the traders are here ready to unveal the picks they hope will be the trades of the year. stephen weiss of short hills capital. simon baker of baker avenue asset management. john najarian from joe terranova, mike murphy is with rose cliff capital and columbus advisors, and pete najarian, optionmonster, and
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josh brown, and stephanie link, jim cramer's charitable trust, and the let's talk about the rules of the road. each trader gets a pick of five picks, and three will be unve unveiled right here today, and to find out the other two, you have to go online to the playbooks are designed as longer-term holdings, however, ten trades are allowed throughout the year. we'll be keeping track of the trades, and their performance. but today, each trader must defend his or her picks to the competition and to mike santoli, who's playing the role of referee, and to you, the viewers. to play along, tweet us with the #playbookplayoffs and the twitter handle of the player you think deserves to win. don't think of me as the judge today, i'm the commissioner. let's get to it. [ laughter ] first up, the man with the best ponytail on wall street, pete najarian. >> debatable. >> he hung up cleats and an
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option co-founder with over 20 years of experience, and here's his 2014 playbook. >> 2014 is going to be the year of the return of spending in technology. as far as my top three trades. number one, financials. i love the financials, but i'm looking at kfn, which is kkr financial. seriously, pete, kfn, i don't know what they do. my second name i'd be focusing on, is hewlett-packard. i think 2014, it's actually got room for another double in the stock. >> pete najarian, love you, brother, like an armenian brother, printers? everybody has a printer. >> pete najarian likes hewle hewlett-packa hewlett-packard. it's an old company. he just turned 50. that says enough. >> lastly, exposure in the energy space. i think 2014 will be the year for bp to catch up, make up, and surpass the big three on four here in the u.s. [ meow ] >> this is more of a snoozer. >> so to vote for pete, tweet @petenajarian wi
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with #playbookplayoffs. why are good things going to happen for hewlett-packard in 2014? >> meg whitman laid out, it will take some time, but for 2013, they've done a magnificent job. when you look at where they trade as a multiple to the cash, the cash flows, it's a company, where are they going to grow? the enterprise, storage. when you look at where they're stealing market share right now, it's coming away from dell, coming away from others, and because of that, i think hp has room to go, $36, $37. >> and i have mike santoli next to me, the referee. we mentioned the stock's already had a huge run. >> it has. if the cash flows work, if they actually are stable, it's still cheap. i do have a question, though, about kfn. >> yeah? >> stealth rate rise play, is that what we're talking about? i like the contrarian instinct. >> what i like about them is they're a play on real estate, but also a play on energy. there's a lot of exposure there. one of the best management groups around, i think blackstone had a great year, kkr sort of lagged.
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i think when you look at the dividend yield of 9% and the fact if they can get up to book value, which i think they can, that puts them about 25% gain by year end. >> i know weiss was skeptical of this pick of hp. >> i was, but by skepticism, it's turned, i took a closer look, and what's happening here is i was looking too much at consumer business. commercial business has stabilized, they have e.d.s., low margin, improving margin, and you can see a $4 multiple and a 10 multiple on the four bucks. >> wait a minute. >> that's 40 buck, my man! >> you're bullish now? >> nice, weiss. >> i took another look. i wouldn't say i'm buying it. >> you should! you should! >> if you want to have money at the end of the year, you buy it now. >> your brother was also kind of laughing about the bp pick. you called it a snooze, doc, why? >> well, i called it a snooze, judge, because it's, in my world, boring. it's a great stock, but it's kind of boring. however, just like jpmorgan, this has been a bank.
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i mean, they've got $43 billion, $44 billion holdback that's kept them performing as they would, and now the holdback is ending. even though it's a snoozer, i like it in 2014 a lot, especially versus the competition, total, chevron, exxon mobil. >> they've lagged and the reason i like this pick, jon, we're talking about a year long. this is not my world. i hold things normally about two weeks and that's a long hold for me. but when i'm looking for something that will go for the whole year, you get a 4% yield, i like the restructuring, i think they're going to finally be able to put that deep-water horizon behind them, and because of that, i think the stock actually catches up to exxon, conoco, all of the biggies. >> all right. we shall see. thank you, pete. >> you got it, bubb. next challenger has the top-rated twitter account, according to "baron's," "wall street journal" and "time." he is the co-founder of ritz holder, give it up for josh brown. >> 2014 is the year that revenue finally returns. my top three picks for this y r year, first and foremost, the banks.
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the xlf etf is the best way to play broadly net interest margins climbing, banks making more money, yield curve steepening. my second idea for 2014, the chinese internet is going to be the focal point for growth investors, kweb is an etf that owns all of the largest chinese internet [ whistle ] >> kweb? >> you just need ali baba. >> my third pick is the solar energy etf, tinker symbol is ten. >> are you kidding me, josh? solar? >> all right. well, to vote for josh, tweet @reformedbroker with the #playbookplayoffs. tell us about kweb. is this an athletic, like a. rod? >> if you want to make money in 2014, you need to think how big of an event the ali baba ipo will be. yahoo! is very well known. what's not well known is a
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brand-new etf thallows you to o the internet plays. you get all of the names instead of single-stock risk, and they run up big time by the time ali baba comes out as one of the largest ipos in world history. >> let me ask you this, thougina direct play on the valuation -- >> this isn't about ali baba. it's about a recognition of how big the chinese internet will be. >> right. >> there are 591 million chinese people doing e-commerce all day long. they spend about $190 billion last year, and i have to tell you something, only 40% penetration there. it's growing 20%, 30%, 40% a year, depending on the metric. this is a world of 2%, 3% world gdp growth. this is the way to make money. >> simon, look at the names in here. baidu, so fun, yuku. >> you know -- >> what's not to like? >> josh, insightful, really
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bright, three etfs in the playbook, i have to check the rule. there's 25 names in there. i bet ten of them -- ten of the names are -- no, sear yusly. seriously. check the rule back, is this about making money or about informing -- >> let's talk about the particular etf. the problem with the chinese companies, 10 probably won't be a part of the portfolio next year. >> why? >> why? i went over there, we had a lot of portfolio companies over there. i still don't trust the numbers they're doing there. the accounting sucks. and i really don't trust the numbers. >> -- on the new york stock exchange, they conform to our rules, and 70% of this portfolio are larger mega cap stocks, it's not what you're referring to. these are companies that conform to nasdaq listing, and they're earning so much money, it's almost embarrassing, versus u.s. social media. >> and pick two adrs non-etf. >> how about we pick something where money is going, and not get caught up -- >> josh, thanks.
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we'll see how it goes next year. we'll get the stock ref's call on this one after the break. first, over to seema for a check of the year. >> shares of the oil company may be liable for up $14 billion in environmental cleanup and health costs. twitter hitting all-time high after they announced tailored audience, a new move into more direct advertising, and senator harry reid announcing they'll begin debating the budget deal tuesday of next week, following yesterday's passage of the ba bipartisan deal in the house of representatives. we'll be back with more after this break. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution,
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♪ > welcome back to a special edition of the "halftime report." before we went to break, we heard from josh brown, mike santoli, and pete najarian, and you have a couple of controversial picks, hp, and josh with some controversy for etfs. >> it's close. i give pete a slight edge. and actually, i disagree with the idea that etfs are somehow a trick. you're handicapping yourself a little bit with the
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diversification, so i do think i like the contrarian element of pete's picks, and also, i think, hp has a decent chance to surprise the skeptical street. >> smart. i just want to let you know ahead of time. >> it surprised me. there you go. >> do not be fooled by the next competitor's pleasant demeanor. if she's not dominating competitors during the "halftime" debates, she's running the portfolios for jim cramer's charitable trust. before that, she ran research. please welcome from, stephanie link. >> 2014 is going to be a year of global economic improvement. eaten is my first pick. it's a truly global industrial play. and the next pick is starwood hotels and it's an upscale, leisure, hotel company, strong pricing power and great management team. my last pick is citigroup. >> citibank? citibank had a great year. [ bell ] >> twice. i'm not having to say my ideas -- >> isn't that cute that both steven and stephanie have citi as one of the top trades?
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>> stephanie link has been paying a lot of attention to what i'm doing, er go, she's tweeting what she likes. >> so let's talk about this pick, eaton. a great year. up 30%. why? do you like it? >> i think it's got a lot more. 2013 was all about auto and aerospace, which i still like those themes very much, right? but 2014 is going to be about nonresidential construction improvement, and i think that's 60% of the company's total revenues. they got that from the acquisition with cooper industries. cooper hasn't even begun to be synergistic just yet, so cost synergies, and revenue, and similar comparisons. >> murph, what do you think on eaton? >> when i saw it, i thought it was a safe pick. in the last quarter, they missed on revenue, and i think what you're banking on for next year is a lot of things that are kind of up in the air still.
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so it's talking about a lot of expansion that may or may not be there. so if eaton gets on track, it could have another 10%, 15% year. i think to redo what they did this year, meaning getting plus 30% for 2014, is going to be very hard. >> you see, that's the whole point of the cooper acquisition. so you have a floor on earnings, and upside. 35 cents in earnings upside potential in 2014. 45 cents of upside potential in 2015. and, as i said, they have auto and aerospace exposure, right? that's been good, but what's not been good is non-res construction and truck. and both of them are at the trough, and that's the upside for next year. >> i own it, also, and i agree everything stephanie says. >> oh, here we go. >> that's really rare. >> i wonder if that's priced in. the acquisition happened -- >> this company trades at a discount to the multinational industrials, because it's been a one-product company, and they're now expanding again from cooper and a lot of different end markets within electrical. so i think that as they actually diversify, that multiple goes
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higher, in addition to the earnings, as i talked about. >> we'll see what happens with eaton. joe, citi, perhaps not surprising. steph talks about citi, the banks often on this program. >> i agree with t i think growth will be there in the financials. the only question i would have with citi is the 60% revenue exposure they have to international. does that concern you, emerging markets slowdowns, citi's exposed? >> that's why i like it, because i think 2014 you'll see upside to the emerging market growth. >> what's not understood about citi right now? that's what i would say. >> it's the cheapest bank of the big five, trading under tangible book value, which is very rare. the r.o.e. has upside, as much as 250 basis points, maybe 300 next year, and that could lead to better-than-expected earnings, and i don't think people are expecting 25% earnings growth. >> strong cases. the next competitor is the ceo of rosecliff capital with more than 18 years of experience under his belt. and the only trader to quote jay-z on this show, mike murphy. >> 2014 will be the year of the beginning of the end of qe. and the best trades for 2014,
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number one, is micron, mu, massive upside because they continue to take market share. >> mike murphy decides to step into micron, of course, de, you're a little late to this name. >> good luck with that one. >> number two is gemworth, long-term care premiums are going up significantly, book value is 29, a lot of upside. lastly, facebook. facebook hasn't begun to scratch the surface on their earnings potential. the stock will continue to move a lot higher for next year. [ bell ] >> facebook, my friend? facebook's done, it's not going any higher. >> my 2014 playbook is bulletproof. >> bulletproof? well. to vote for murph, tweet with the #playbookplayoffs. micron. >> huge performer. >> you think it has a lot to go? >> a lot more to go. micron is now number 3 in the mobile chip space, so the number one company is still shut down. they're over in china and burnt to the ground in october. so number two in the space is samsung.
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so when you're apple, you're a google, these guys are putting a lot of orders in through micron. micron made a major acquisition that will help them next year. but i expect they can earn $4 a share in 2014, so a 10 multiple on that, this is a $40 check. >> since i'm the commissioner, you must like that david einhorn is in this name? >> i do, absolutely. after i called in with the realtime trade at $18, einhorn came on the show to say he had a position in it. >> pete, so you're taking him on on this name. >> not -- >> really, he is? >> you're saying he's late to the party. >> i'm not saying you're late. there's plenty of room to the upside. what's the biggest catalyst going forward? is it because they made the acquisition and they are part of the apple equation? i think it goes to 30, but what do you think makes it go to 30? >> partly the acquisition, but the catalyst is hynx. micron is taking market share, and getting pricing. lastly, remember, if you're running apple or google, you don't want to be giving all of the orders to samsung still.
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that's a fact, that samsung is number two, moving to micron. and this is still, although it's had a major run, looking at a value stock. >> what do you make of the drop 10% in nan prices? >> it's tough to predict where the price is going to be, but there's enough room here, trading at a single-digit multiple, even if prices come in a little bit more, micron can still expand. >> simon baker, he picked facebook, right? twitter has been stealing the thunder, at least in the stock market lately, because it hits a new high almost every day, including today, by the way. >> that's the baby in the pack. still too nascent. i'm on board with michael -- or with murph. >> that a boy, simon. >> quick question, where does it go next year, the next catalyst, the tv opportunity, instagram, how does it go higher from here? >> it goes a lot higher, and really the main thing is the use of mobile, the ad dollars they're bringing in, and i think facebook will print over $75 a share for 2014. >> all right. we'll hear from the referee on the other side. more playbooks are revealed next. murph, thank you.
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let's talk about what's happening with the playbook playoffs, and we're keeping track among the twitter sphere, and it's a neck and neck between all of the traders who have presented. but we've seen josh brown tick slightly ahead, just a hair below where they are now. some interesting tweets coming in from the viewers. there's fun ones, obviously, a spoof of warren buffett. stock oracle tweets in, messing with pete najarian is like getting hid by one of my railroad cars. he's voting for him in the playoffs. and another fun one here, again, from brandon card, a great pick,
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lowest of all of the big oil firms, texas knows oil. a hash tag for you. and, of course, another one here from patrick, kudos to the reform broker for thinking out of the box for the playbook playoffs, and wund more, just to kind of get things round the out here, who won the first half of the playbook playoffs? santoli is saying that right now, but this one, i vote for the lincolnator, hope this is correct. a lot of interaction, and the tallies are still going, but, scott, i have to tell you, right now, lots of the tweets coming in, and a lot of votes coming in. i'm not going to tell you the numbers just yet. but still, first place, right now, josh brown. >> all right. our sideline reporter, dominic chu, thank you so much. >> scott, can i make a suggestion? >> yeah. >> you have extra operators before i go on? to handle all of the votes. [ laughter ] >> seriously, josh, the three picks, to remind everybody, in case you're just joining us, the etf that focuses on chinese internets, it was the heart of your play here.
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the solar etf. solar etf and financials etf. >> yeah. but listen, they're etf, oh, no, you can't have -- that was my simon baker. [ laughter ] listen, can you have etfs if you think there's a huge beta move happening with the sector, and that's what my bet is. i don't know if most of the stocks i've heard here today, hewlett-packard, eaton, i don't know if they'll -- >> totally disagree. i think there's far more upside, beta goes to yahoo! not to -- >> china is -- [ overlapping speakers ] >> kyna is the hauottest intern market out there. you have to be a pro to pick the stocks. >> i don't want the single-stock risk. i want the general lift in that sector, when people start hearing more and more about ali baba, they're going to be 800 million internet chinese users in two years, and all of the companies could work. >> you guys remember glenn
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kacher of lightstreet? >> yeah, i know him well. >> the core plays that have done really, really well for him, a lot of the stocks have done incredibly well. what does a referee, mike santoli, think? >> i have it right now as pete, steph, josh, murph. that's my working ranking right now. steph's portfolio is not going to win in a straight-up market, i don't think, but it's very defensible, good fundamental drivers. murph, i think it could all work, but i'm wondering if your initial stand for momo, just stylistically concerned -- >> really? >> -- average performance up 137% for 2013. >> absolutely, and a lot more to go. >> we'll see. >> traders are competing here on "halftime," and another important stock competition we wanted to tell you about that's raising money for a really good cause. portfolios with purpose is bringing together the investment industry's biggest names in a fantasy stock competition where entry fees are donated to charity. last year, the organization raised $198,000. names like leon cooperman, rich
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pzena and jamie dinan, and we'll talk to each of them next thursday on "halftime." it's a big week for us, and we look forward to all three gentlemen being on. find out more by going to we'll be right back more with "playbook playoffs" after this short break. over the nexs the united states population is going to grow by over 90 million people, and almost all that growth is going to be in cities. what's the healthiest and best way for them to grow so that they really become cauldrons of prosperity and cities of opportunity? what we have found is that if that family is moved into safe, clean affordable housing, places that have access to great school systems, access to jobs and multiple transportation modes then the neighborhood begins to thrive and then really really take off. the oxygen of community redevelopment is financing. and all this rebuilding that happened
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could not have happened without organizations like citi. citi has formed a partnership with our company so that we can take all the lessons from the revitalization of urban america to other cities. so we are now working in chicago and in washington, dc and newark. it's amazing how important safe, affordable housing is to the future of our society. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.
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all right. four traders have presented. this is mike santoli's leaderboard as we speak. pete najarian in the lead. stephanie is second. josh brown third, mike murphy fourth. according to mike santoli. the next trader used to tackle quarterbacks and defenseless receivers, and now is tackling options activity. he is co-founder of, and here is dr. j's, jon najarian's, 2014 playbook. >> 2014 is going to be the year of innovation. that's going to be the key. starting with my number one pick, broadcom. 50% of their business is telecom. the rest is going to be broadband, high-speed internet
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and the like. the next one, baker hughes. fracking. that's the innovation side of what they're doing. >> i'm pretty sure, jon najarian will go with intel. it's looking more and more like an old broken-down steel foundry. >> intel is an interesting pick, because people say it's not innovating. yes, they are. >> intel. [ meow ] >> of course, you did, jon, because i loved it forever, but i can't believe you stole the name from me. >> jon najarian, you left all the risks behind you when you left football. you need to get some beta, buddy. >> the vote for jon, tweet with the #playbookplayoffs, and talking about intel. seems a controversial pick, as you call 2014 the year of innovation. >> well, innovation with the bronxton, it will be huge, because everybody wants to get into tablets -- >> the broxton. >> the bratwurst, the what? >> the broxton. it's a significant driver for intel. we've already discussed with
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simon the 40 million tablets, because everybody said, oh, they missed tablets. no, they didn't. they just weren't there at the beginning, but tablets aren't over yet. and you look at broadcom, again, two tech plays in communicati s communications, judge. i think that is the key for 2014. >> josh, a broken-down steel foundry is how you referred to it. >> yeah. >> look, the stock is up 19% year-to-date. it's been somewhat of a stealth move, wouldn't you agree? >> 19%, but most tech stocks are up 30. the thing with intel, they put a manufacturing guy as the ceo, rather than an innovator, and my worry is that they're going to focus on things like manufacturing chips for other companies and try to focus on things like that, and that's not really what drives the stock's price. especially in the tech sector. people want to see growth, topline specifically, and i don't think they get it this year, bottom line. >> i think they do, josh, because like i say, everybody else that's been getting into tablets has been behind it. intel is now about to lead, especially in android, both intel and broadcom stand to really benefit from android,
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because that's where the emerging markets are, 75% of those operating systems are android. these guys are right at the heart of it. >> steve weiss, what do you think about the number-one pick? broadcom, stock is down 14% this year. >> i don't like broadcom. if you didn't read the painer today, google is coming out with their own chips. but i think the overall portfolio, my dead great-grandpa will have more movement than that. [ laughter ] there's no beta. there's no moving, you're going to lag -- >> oh, there will be beta and baker hughes, another stock we haven't talked about, with fracking and every other way that -- >> that's the beta play. >> energy out of the ground. >> jon, fracking, that's great, but the north american margins have been under major pressure for the entire group, not even schlumberger can do well. >> which is why they're doing as well. >> when do you think they can prove? >> 2014. >> hmm. what's the catalyst? what's the catalyst? >> all three of the stocks are leaders in 2014, not laggards like josh said. intel's behind, because what you got -- >> what's the catalyst for
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intel? >> oh, yeah, the 40 million tablets. that's at the investor stage -- >> that's not their market. that's qualcomm's market. >> no, that's anywhere market! >> on the low end, the atom chip, they barely make money -- >> this is not about the atom chip. >> i want to hear about -- this is so controversial, i want to hear from the referee. >> from a portfolio perspective, betting on two disadvantaged tech players to come back and get it right and actually convince the market is a lot to ask, and move the needle. >> you don't like momentum and you don't like the laggards. >> i like the instinct for the laggards, but you have to mix it up. >> yeah, that's a flag. >> that's a flag. >> on behalf of everyone, thank you for giving them a voice. >> doc, thank you. >> let's go to the next playbook, a man that breaks bread with every single heavyweight in the financial industry or so he says. [ laughter ] or so he says. he's currently the managing partner at short hills capital, and before that, he was the co-head of institutional research sales at lehman and the co-head of equity research at solomon brothers.
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stephen weiss' 2014 playbook is up now. >> 2014 is going to be the year of rising rates -- [ whistle ] -- >> i guarantee you he will pick citigroup. >> citibank is very, very cheap, well positioned. >> international, 70% exposure there. >> great management. >> gnaw management team and great restructuring program. >> wow, that's the only thing they've agreed on in 2013. >> second, i play gilead. gilead gives you growth, it gives you a lot of growth as the pipeline comes to fruition in 2014, trading at almost a value multiple. and finally, an etf for you. tbf. tbf allows you to short the bond market, the longer end of the curve, because remember, i believe in rising rates. >> weiss, my first top pick in 2014 was hopefully you being a snappier dressing. 2013 was awful. >> all right. to vote for steve, twe tweet @stevenweiss, and let's talk gilead.
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biotechs, celgene, gilead itself is up almost 100%. why will it still work? >> great reasons. santoli, listen up. >> i'm listening. >> this will give you movement and value. i have 3.66 for next year's numbers, and then six bucks, and then eight bucks. they have 15 drugs now in phase two. they've got basically four or five drugs that are in approval in phase three, applying here, applying there. but they've already got earnings. this stock is going to double over the next year, year and a half. >> wow. >> 23 buy ratings, zero sells, up 85% this year. why -- how does the market look -- >> this guy is a bandwagon kind of a guy, right? [ laughter ] >> -- the motivation focusing on where stocks have come from? >> where it is right now, 20 times cash flow. >> -- market in '09, the point is -- >> if i had a dime if you said, it's not where they come from, it's where they go. >> and that's absolutely true.
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i'd be are rach man. >> thank you. thank you for gratifying -- >> you should get that -- here, 23 buys. sometimes the crowd can be right. this is one of the times. >> all right. >> here's one of the reasons, judge, he could be right. the hep-c drugs which are getting fabulous approvals, like 15-0 approvals, that will be a big drug for them. they've already got aids and cardio and a whole bunch of other drugs. >> cancer. >> i wouldn't be betting against him. >> yeah. even though they're up 85%, i wouldn't bet against them. >> what about the other pick, joe, shorting bonds? we think rates are going up. >> we think rates are going up, i agree, the bond market is not the place you want to be. the one headwind that steven may face is the parameters of the whole portfolio challenge of 2014, because i know steven's going to have to be active on it. can you be active enough in at some point in 2014 the fed tapes with one hand, gives back with the other, softens the guidance and we stall out in the bond market? >> i have conviction. i'm looking at 3.5% 10-year, so
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right now, around 2.80, the risk is down to 2.50 and 2.60, and my upside is 3, 3.5. >> it's over what -- >> well, 10-year and beyond. >> you're betting the whole portfolio on that thesis, because you're betting on citi for the same reason. >> no, betting on citi for other reasons. >> yeah. >> no. >> stephanie's right. >> wow. >> 25% earnings growth is nothing for citi. >> that's really something. >> all right. stephen weiss, thanks so much. let's take a takeout to check on the markets with seema mody, who continues to watch the action on the street. seema? >> major indices are trying to avoid the fourth straight day of losses. and in terms of stock-specific action, shares of adobe are jumping, with the software company reporting strong growth in the cloud subscription, called creative cloud, and honeywell shares are spiking after the board of directors approved $5 billion stock buyback.
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the industrial conglomerate has finished a $3 billion buyback from 2011. we'll be back with more "playbook playoffs" after this break. the american dream is of a better future,
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a confident retirement. those dreams, there's just no way we're going to let them die.
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♪ . >> from the airtight cnbc global headquarters, let's tell you what's coming up on "power lunch" at the top of the hour. three keys to 2014. we'll look at that, housing, jobs, and the markets. plus, the ceo of of two companies, a c suite. and cutting out the middle person. beyonce surprising everybody by releasing her newest record straight to itunes, google maybe going to start making its own chips, and amazon taking costco -- on costco in bulk sales, and we'll talk about what that means for consumers and investors and more.
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the "fast money halftime playoff playbook" continues after this. there they are. you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. anncr vo: introducing the schwab accountability guarantee. if you're not happy with one of our participating investment advisory services, we'll refund your program fee from the previous quarter. while, it's no guarantee against loss and other fees and expenses may still apply, we stand by our word.
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♪. welcome back to the "2014 playbook playoffs." next competitor coined the phrase "the data doesn't matta."
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you'll find him shredding goals for his hockey team on long island, but you can always find him at avertis, the chief market strategist there. >> 2014, the stortry will be all about growth, the search for yields has ended. what companies will you find it with? first and foremost is going to be apple. you will see in 2014 the return of the institutional money manager come back again. [ whistle ] >> joe, i'm glad to see you're finally on board on the apple trade. >> secondarily, in the energy space, eog resources. they're experiencing the growth in shale both on the oil and gas side, and then, last, michael kors. any better retail company delivering the growth -- we hear about the growth domestically in the united states, the expansion of the stores, the story in china. >> joe, you're a bright guy, but you're completely wrong on kors. it's priced to perfection. that was a 2011-2012, 2013 play, 2014, it's coming home to roost. i'm sorry, price perfection, one
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little miss, and now looks all the way like lulu. >> wow, a left hook from bakes on that one. all right. to vote for joe, tweet @terranovajoe, and let's talk about apple. a second-half story. like pete said. what carries it into 2014? >> it's about the search for growth in 2014. your good friend carl icahn is on to something here. i'm not even really factoring in what will be the capital allocation story. you'll see multiple expansion finally out of the company. the consensus estimates in terms of 2014 eps is slowly moving up. 43, 44, 47. you know what, judge, it will be 50. slap a 15 multiple, and there's the 750 ipad, iphone, the china mobile, the refresh system. we're seeing the adaptation into the enterprise space. enterprise is actually using this now. i love the story in 2014. >> steph, he makes a compelling argument. >> yes. >> do you buy it? >> yeah, i totally agree. i think you're spot-on. and we actually recently bought it ourselves. i guess the question i have for you is margins. i always come back to that.
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do you think that they've stabilized -- >> i think margins have stabilized, and, steph, that's all they have to do. and think lastly, the large-cap money manager. the p.m., they are underinvested right now, some great notes highlighted in that. i know it for a fact. they're going to come in and did will be strong. >> simon, what's your beef with kors? isn't this story just getting start? >> it's just it was a 2012 play, 2013 play. >> really? >> it's priced to perfection. >> this is a 2018 play. >> it has one slip-up, and completely going downhill. i don't agree they'll execute as well china. all of the management team has sold their shares. i think it will be a short next read, and if you go online and vote for me, that's my short. >> apparel and accessories, cheap on a valuation basis. >> compared to what? >> they'll do 350. a 2018 story. your friends in europe, 350 million in sales, the company's guided to a billion. >> it's not cheap, though.
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it's not cheap. >> australia. [ laughter ] >> thank you. the last contender from england. well, originally, at least. he loves soccer as much as he loves his wardrobe. he is the founder and ceo of baker avenue asset management, a firm focused on growth for for high net worth individuals, institutions and endowments. please welcome the mentalist, simon baker. >> 2014 butts the old, new and plain sexy. groupon has been beat up. 85% year-to-date. leader in e commerce. groupon has seen their best days. simon has more hair than me so he can pull his hair out. the old fedex. soros, paulson got in it. plain sexy. google glasses and microsoft glasses, i had technologies. women will wear them all over the place next year. >> simon, i think you have your beer goggles on. >> simon baker, stay in the uk
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and may attention to that market. >> wow. to vote for bakes tweet @simonbaker. let's talk about groupon. up 108% this year. you've made fun of some of the picks here saying that the ship has sailed. >> i just like -- >> why do you think this one keeps going. >> you save the best ideas last. groupon, some of the smartest hedge funds are buying groupon. it has no debt. $1.1 billion in cash. it's a turn around story. 2014 is when it will take off. barely scratched the surface. >> himx. >> a good joke about goggles. 2014 is about wearable googles. go to vegas and csc everybody is talking about googles. >> what are googles?
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>> google goggles. >> google glasses. >> this is the most important thing in i.t.. it's going take off. sexy little company. >> i want to go to the referee. help. >> wait approximately goggles. googles. identify been out with you before for giggles. you look better through the goggles. >> look, from a game theory perspective i actually think there's a lot of potential here. a couple of lottery ticket type move with two out of the three. but do i think that, you know, himx the movement has had zero fundamental support so it has to be all about above. >> look at the social media companies. you don't buy those gains? we talked about the continued momentum of those gains. this is one story that got going. stocks hit new highs in 2014. >> what case did he make on
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groupon? do you believe it or not. >> i believe in social media, 100%. the thing with groupon it's something that has very low barrier entry. a lot of big guys could get in there and squeeze groupon. >> they had their best four day sale since they went public in 2008. management is executing excellently. >> nice job. we'll get the referee's top playbooks when the playoffs return after this short break. ♪ [ male announcer ] this december, experience the gift of true artistry and some of the best offers of the year at the lexus december to remember sales event.
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this is the pursuit of perfection. at the lexus december to remember sales event. so when my moderate to severe chronic plaque psoriasis them. was also on display, i'd had it. i finally had a serious talk with my dermatologist. this time, he prescribed humira-adalimumab. humira helps to clear the surface of my skin by actually working inside my body. in clinical trials, most adults with moderate to severe plaque psoriasis saw 75% skin clearance. and the majority of people were clear or almost clear in just 4 months. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common.
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[ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year. this is the pursuit of perfection. welcome back to the
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"halftime report's" playbook playoff. here are some tweets from you. first at by bipolar trader says josh can win. surprise regis wasn't invited to the playbook playoffs and finally picks to be proud of. here this is another one. playbook playoffs i vote for beyonce. scott, i don't know. a lot of people are saying this. i'll give you a quick update. we have a tight race for first and second play. i won't tell you who they are just yet but still the votes are coming in fast and furious. >> let's go to our referee. you've seen the eight playbooks unveiled today. who stand out from the rest? >> very hard to pick a winner. i couldn't rank everyone. pete, honestly -- pete did not get this lodged from the first spot. i had the combination of
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catalyst, contrarian. pete, stephanie, josh brown as my top three. we want to keep going? >> pete, i want to remind everybody. his picks were kfn, bp and hewlett-packard. >> i appreciate that. >> this is like the pre-season odds maker. we'll see how the game goes. >> kfn for the dividend. >> i'm not buying it for the dividend. >> they never had growth like that before. >> this stock is well down from where it has been at the highs. >> listen, i'm going to throw it out. >> i want to point one thing out. if this was an investment committee here's your investment portfolio. 20% tech, 12% energy, 8 industrial, 8 discretionary, 4 health care, nothing else but short bonds. we have a lot of bets on that what happened this year is happening next year. >> let's go back to the dominic.
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>> we have a winner and the winner is pete najarian. >> congratulations. i think mike's point and john thanks for being with us. technology is the top sector picked by you guys. that speaks volumes about where you think we're all going to be in the gobble economy is going to be and perhaps the stock market is going to be in 2014. >> i think if you look back, a rate tightening environment, technology is either one two where opportunity historically. >> that sector has lagged. one of the worst sectors. not bad. still up 30%. >> improving economy to see this portfolio work. because the way the market is and what we're picking, tech is capital spending. >> the average stock was up 57% that was picked today. >> guys and gal, thanks for your
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playbooks. each trader has two more picks that are online right now. go to that does it for us. this game is over. we'll revisit the playbook soon enough. have a great weekend. we'll see you on the other side. "power lunch" starts right now. we got a big hour of power ahead. three keys to 2014, all in this one very massive epic hour of power lurch. topic number one, housing. one of the brightest minds says watch out it may be a very rough year ahead. topic number two, jobs. will we create more in the u.s. or are we about to hit a lull? the markets in 2014, do you need to start protecting yourself for a correction or will 2014 maybe be as good as 2013? i got my doubts there. doesn't get much better than


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