Skip to main content

tv   Fast Money Halftime Report  CNBC  October 28, 2014 12:00pm-1:01pm EDT

12:00 pm
earnings coming after the bell for facebook. >> gopro up 7% today and twitter well off lows, down just 10%. >> a lot of of movement in the tech space. that as well as the overall nasdaq rally is something the halftime will pick up from here. let's send it over. welcome to the halftime show. let's meet the starting lineup. steven weiss, mike murphy, pete and john najarian are co-founders of option monster. the tail of two techs. twitter dropping, alibaba popping. the latter becoming the largest publicly traded non u.s. company. the former down big after earnings disappointed the street. concerns of slowing user growth. twitter first.
12:01 pm
>> yeah. big disappointment in the user growth. only up 4.8%. a year ago numbers. that was disappointing. i think now this selloff today provided incredible opportunity. i actually jumped on some of the calls in there today. and in terms of alibaba i love what jack ma had to say about that company as well. >> you are looking positively at -- >> i am. absolute will i. i look at the numbers and i think there are ways they are going to be able to move that conversion rate into mobile space still. and when they talked about ad spend, and bob peck has been a bull on here. he was discussing the idea that as they have sold off you can see still there are area where is they got gains and where the gains are going to come is from the brands that are liking what they are seeing. >> jim cramer made great points this morning. of management a really great product someone else could do a better job with.
12:02 pm
poor execution. what is your take? >> i agree. and twitter is something a lot of people can get tired of. it takes your time and i was on it the other night for a first time in a while and said why am i doing this? there are so many better things i can do with my time. but you can't compare their business model to alibaba. i'd much rather go with alibaba and growth company, that kind of multiple twitter has aren't supposed to see such a slowed down growth. so to me until proven wrong i wouldn't go near it. >> revenue doubled. mike are you liking? >> i don't have a position either way. looking at the pull back in the stock. so i'd be on pete's swied thide that. but i'm more with steve on major concerns about the business. >> do you own facebook. >> i co- >> so you do have a position relative to facebook. you are a buy over facebook rather than twitter. tell me why.
12:03 pm
>> facebook's business, they are executing extremely well. but to your point, facebook versus twitter. if you remember back what is it now? 18 month, a lot of people were questioning facebook's business model and whether or not skuk zuckerberg was really going to be able to create a grown up company. the stock was high teens if you remember and now north of 80. i don't know yet whether the guys at twitter are going to be able to create a company to compete in a real way with facebook. 40 to mee me is a key level. then i would take a shot on it. >> doc you took a shot too? what are you seeing that the street is missing. >> number one, i look at the recent range. 38-56 is the past range this past quarter. and obviously it bled off well into this earnings report. which was i guess the tell. and then today got all the way down to 41 and change.
12:04 pm
i thought that was a little over done, judge. i don't think peters thiele, co-found over paypal, i don't think he's exactly right that these guys don't know what they are doing or they are sitting around smoking dope. i don't think that is the case. i think this is one of the stories that plays out. and it is obviously not as mature as facebook to. murph's point that is more mature. but still some 360 some odd million dollars in revenue. the growth rate as far as mobile, the transition to mobile has been immense, massive for these guys. >> you are given more opportunity -- people are buying yahoo today. they are buying apple. that's all time high. they are moving into alibaba today. the question is are there just better buys right now for your buck than twitter? >> i believe there are. i think these two -- sorry doc. go ahead. >> that was to the panel.
12:05 pm
>> i believe these guys are in it for a trade. i don't think they are taking a the long-term position. >> right. >> that's one thing. i'll leave the trading to them. in terms of buying companies i'd rather buy more fully fleshed out models like facebook and al lab regardless of the valuation. >> expectations. >> expectations are high. >> at 5:00. >> hopefully for murph they will. >> yeah i think in this space in the social media space 12 months is an eternity. facebook in the last 12 months has gone from a show me story to a can't miss story. i'm almost questioning. i sold calls on my facebook stock going into that report. because i'm wondering if just everybody is on the longside where zuckerberg can do no wrong. >> getting crowded. >> it is. and nothing wrong with hedging yourself. i just have ha hard time seeing
12:06 pm
what gets facebook up 8, 10%. any slight slipup pulls the back into the low 70s where i'd add to my position. >> as they move the stock down what. did they do? it started buying. professionals are out there telling us that was enough. the stock is going higher. >> next guess is one of the analyst who is downgraded twitter today. anthony diclemente is on the phone. welcome back. is this about slow growth? management. >> caller: when you have a stock that trades at stratospheric multiples you need things to be accelerating. when we upgraded the stock earlier in the year, you had user growth. you had engagement, monetization per user. you had all of knees key metrics
12:07 pm
accelerating. and as soon as the second derivative changes. as soon as they start to decelerate you need to get out of way because the valuation is so stretched. so i can speak more in detail to those but that is basically what i saw in last night. like, if i basically changed the shape of the trajectory of my model, whether user growth, monetization per user it changes to such a large degree that effects the valuation to a decent amount. >> that is a big call. when you as an analyst i would guess anthony get to that point, the story becomes fairly serious. how low -- or what is your price target now on the stock? >> caller: what we looked at was how many users of twitter globally will there baa b in three years. and previously i thought there would be 450 million and now we're modelling 425 to. that came down and that takes
12:08 pm
2017 earnings down when you blend in monetization changes from 2.15 to 1.90. we get to 45 dollars on the target price. so i really buy the stock, it's got have a three handle on it for me. and i know najarian and you guys are looking technically but i'm looking more fundamentally. i'd buy in the mid to high 30s or so. >> are you confident the current management team is the right one? >> caller: i am. i think they are focused on the right strategies. my comment is there is a lot with this platform out of the control of the management team. it is a real time network. and we have to talk about what is the total addressable market. what is the ta.m. we think they are going to over haul the time line so it is not reverse chronological necessarily so you will see
12:09 pm
context and relevance like when you pull up facebook, there is a contextual element to what posts come up. so that is kind of an example of a product we may hear about at analyst day in a couple weeks. but do keep in mind that a lot of the senior personnel at twitter are new. so you had the ceo who had left the company and a bunch of new hires and promotions including the head of product. of course the cfo. and they have changed the organizational structure really quite recently. and change can be great thing. but change introduces in some cases uncertainty. and in some cases uncertainty is not great for a stock. so we'll see how management and the products transition over the next quarter or two quarters. but for now i'm just going to take a wait and see approach. >> appreciate the time anthony. thanks. >> caller: any time. >> as we said, herb greenberg is out with his own bold call on twitter today. he saids the company should sell
12:10 pm
itself. here is herb. good to see you. people talked about i don't know maybe twitter should take some of the cash it has and buy something. you are saying they should just put themselves up for sale. that's really profound what herb is saying. unfortunately we can't hear it. what do we think about twitter going up for sale. >> nothing really noo new. the twitter the market cap is up 30 billion dollars. so it is not just so easy to say whose going to come out and buy them. a think a lot of companies probably took a look at twitter before they came public and had a chance to buy them. i think now even though it is off a high of 75, to pay give ate 20% premium over current market to. pay 40 billion for twitter?
12:11 pm
i don't know who does it. >> alibaba maybe. >> alibaba is one of the few that can. >> google. >> google doesn't have the multiple. >> apple? >> doesn't are the multiple. it is not an apple thing. >> reel wool try to get herb back. >> it's the best i i've ever heard herb speak though. >> coming up. you shouldn't throw in the towel on oil. and elon musk on the offensive. the tesla ceo corrects the record on sales and the stock is on a tear. leading the gains in the nasdaq today. phil lebow breaks that down. and up next, maybe one of the most oust outspoken ceos, john legere branings his us against e world strategy.
12:12 pm
but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
12:13 pm
12:14 pm
tesla surging after musk took to social media to knock down reports that last month's car sales were sluggish. he said the article in the "wall street journal" was incorrect. it was a record high worldwide and up 65%. phil, what do you make of the
12:15 pm
back and forth? musk certainly isn't shy to take to social media when he feels like saying something. >> absolutely. and when you can mix apples and oranges, why not. elon is a hundred percent correct with what he's saying in terms of the month of september being a record month. first we don't know for sure. he has the data so we have to take his word there. and the key here he is saying the month of september, the "wall street journal" and words auto statistics are year to date in the united states. so you are comparing two different areas here. and the ward's auto statistics, those are correct as well. year to date. registrations of model ss are down about 20%. how can that be? remember they are sending more model s to china, europe, north america outside of the united states.
12:16 pm
that means canada, mexico. and as a result there are fewer vehicles available to be sent to those who have ordered here in the united states. as a result registrations are down. the bottom line is this. people saw this news yesterday from wards and they said well, what is going on here? is the model s completely going? falling apart? are sales dropping off considerably? no. that is not what's happening here. there are fewer model s vehicles available to be shipped and as a result fewer are being registered here in the united states year to date. so that is what's happening. and i think elon musk as any ceo does when they look at data says wait second that is not accurate. he goes to social media and says here are the numbers we have. he is saying september. we don't know those september numbers yet because they haven't reported full third quarter numbers. >> thanks phil. we have another ceo coming up whose not afraid to go to social
12:17 pm
media when he had a thought. let's trade tesla though. >> tesla is your prototypical momentum stock. and a lot of these have break-in down over the course of the last few weeks. tesla, you have to be careful. look at the snap back of today. and to me it looks like it does have support under it. i still think it can bounce off and go higher. >> when you say record sales all it means is you sold one more than the last record. so you can't go by that. to me it is much more expensive than other auto manufacturers. >> you are making a bigger bet. more risk for a bigger reward down the road. >> and i have no idea. it's like buying gold to me. i can't value it. >> but if you want beta you buy tesla. and if you want something that's bottomed it's something like gm that finally bottomed. >> or cool. >> cool comes a lot of volatility. >> from elon musk to another,
12:18 pm
john legere. first on cnbc interview. he's alongside julia bororstin. >> moments ago you wrapped up your company's earnings call. the big head line is you posted surprising user gains with a surprise loss for the quarter. how can you manage the on going cost of the subscriber games. >> i'm not sure who that was a surprise to. we are thrilled. it was a record quarter for the company. 2.35 million net additions to the company. and when you go down every piece of the growth was beautiful. 10.6% service revenue growth year over year and we beat consensus growth by 400,000. so it was in a range we're very comfortable with it. we reiterated guidance for the
12:19 pm
year. which is the biggest barrier for us. postpaid net ads we raised guidance off the charts and whan tand. i think overall people were quite happy. >> certainly a strong quarter. lu looking beyond the fourth quarter how can t-mobile continue to compete with at&t and verizon when they are so much bigger and starting to offer some of the same discounts you are. >> yeah. you know, actually they are not. they are offering various forms of trickery to lock their base in. because they don't know what to do. and what i like more than anything is after two years that i've been doing this, you know, the calming question is, hey, they are so much bigger. what are you going to do when they beat you up? this is it kids. we're porting on a postpaid basis about 2.2 and 2.3 to one. every day 2.2 customers come to us from them. and one goes out the door. so we can compete. they are not used to competing.
12:20 pm
>> do you think you are going to need to bid against them to raise capital? >> first we have more spectrum per pop than anybody. we have 1.6 mega hertz per pop, which is well more than they have. the question on spectrum is low band spectrum over time. and i believe washington really understands that for real long-term competition we all need subone big hertz. we are rolling out a 700 heg hertz band and a delay in the option with the 600 mega hertz which gives us time to grow and there is a lot of discussion about roaming rates which is good as well. >> you have shaken up the industry. and done away with contracts and other things. what is your next big move? >> it's so big that if i told you you would fall off the stage. we've done seven uncarrier moves. four this year. and they start with a philosophy
12:21 pm
and they are all structural changes and there is more to come and they will be big and even you will switch to t-mobile. >> thanks john legere for joining us. scott back to you. >> thanks julia and john. coming up the jox versus the musicians at the msg. should they split sports and entertainment? the stock is on the move and we're live at the garden with the latest. also trader blitz is getting spicy today as buffalo wild wings reports earnings. nothing like fied food and beer to boost the beneficial. does the stock have staying power? in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work.
12:22 pm
because the future belongs to those who challenge the present. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today
12:23 pm
today today and everyday. call today, for an appointment today. are the largest targets in the world, for every hacker, crook and nuisance in the world. but systems policed by hp's cyber security team are constantly monitored for threats. outside and in. that's why hp reports and helps neutralize more intrusions than anyone... in the world. if hp security solutions can help keep the world's largest organizations safe, they can keep yours safe, too. make it matter.
12:24 pm
welcome back. time now for our trader blitz. four trades on four stocks making news. first is buffalo wild wings. soaring after beating estimates. increased same store sales. one of the catalysts there, the stock is up big. >> over 15 dollars last i checked. same store sales numbers were phenomenal. and largest short interest since july. i think that is providing pop as
12:25 pm
well. >> pfizer beat narrows forecast for the year. pete you own pfizer. >> yep. >> you own merck. >> at pfizer i'm disappointed in this stock. not performed well. generic competition is the biggest issue they face. they have tried to address this various times. the astrazeneca deal. in a month they will have another opportunity if they want to revisit that. that is something i'd be watching. unfortunately the generic competition is killing them. >> you like merck over pfizer. >> yeah. i still look at it as a yield. >> coach is falling despite beating estimates and growing sales internationally. >> not much positive to say. however the stock made a new low. if you want to find a positive look at china. sales up 10%. north america down, japan down. but if you want to buy so you can have something to trade
12:26 pm
against. put so a stop in right below where it's trading now. >> i think it is in a death spiral. out of fagsz. you deal with fashion you get hurt with fashion. got to pick the next trend k koelz is falling. >> why do you want to own anything but mayssys? >> just go with macy's. >> and we're going to look at how trading finished up across the pond. and also we're going to preview the feds decision on interest rates. are we really going to see the end of qe? steve leaseman tells us next.
12:27 pm
how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪
12:28 pm
...the getaway vehicle! for all the confidence you need. td ameritrade. you got this.
12:29 pm
it's a fresh approach on education-- superintendent of public instruction tom torlakson's blueprint for great schools. torlakson's blueprint outlines how investing in our schools will reduce class sizes, bring back music and art, and provide a well-rounded education. and torlakson's plan calls for more parental involvement. spending decisions about our education dollars should be made by parents and teachers, not by politicians. tell tom torlakson to keep fighting for a plan that invests in our public schools. welcome back. we were in the little midst of our own conversation. well t european markets are closing now.
12:30 pm
let's check in with simon hobbs at the new york stock exchange with a wrap up. don't let our off camera conversation get in the way of news. >> i can't hear it so i have no idea. hey this is good gains around europe today. real solid broad based gains. we've got a political problem still of concern in greece and that is down again. but everyone else rallied strongly partly on expectations of what the fed will do tomorrow. and sweden, one of the few central banks to be left independent today cut interest rates to zero, it is so worried about deflation. 16 companies reporting in europe today. four of them, ubs a top gainer. $1.9 billion provision but capital shares look good and wealth management above expectations as well. lloyds, another bank, this time in the u.k. staggering. they missold payment protection for years. they took another provision today. $18 billion of provisions for that particular faux pas.
12:31 pm
they are cutting 9,000 jobs. and lloyds is one of the top losers. standard charted are cutting outlook because of problems in korea and china. the other sanofi. they have a problem with pricing diabetes drugs in the u.s. and they have been hit badly down about 10%. that said, scott, actually europe is reporting earnings above the united states. the gross is 12.6% in local currency terms compared to 6.7 here. if you are a u.s. investor you see it throw the eyes of the euro though and it doesn't look so pretty. back to you. >> the countdown to the end of qe. just under 24 hours until the fed is expected to announce an end. we all remember the so called
12:32 pm
taper tantrum in the summer of 2013. is history bound to repeat? or can the rally continue even without the central bank's help? steve leishman joins us now. >> what is the music? is it taps for the end of qe? star spangled bander. >> to some like strike up the band. >> are they going do it or not? >> it's done. it's definitely done. they have been trying for a long time. >> some of the data has gotten squirrely. >> it has. the durable goods number was a little squirrely, although the shipments still suggests 3.1% growth for the third quarter. we're not off that track. the confidence numbers today through the roof pretty good. still an effect i think the fed will see on lower gas prices to come. what you did have is because of the volatility and what happened with europe and concerns there.
12:33 pm
you have had in the fed survey they step down and now pushed ahead when they think the fed will raise rates. when are they going to do it? the average looks for july 2015. ahead a month. looking for getting rid of considerable time in december 2015. balance sheet decline a month later and the terminal rate, the end of the process, the average expected is 3.3%, q 4, 2017. >> do you think the market is ready for that. >> i do. >> look what the market did from bullard. the s&p is up 5 1/2 almost 6% since bullard. >> right. a couple things. first if you don't know qe is ending, you haven't been paying attention. and there is no doubt the fed wants out of this. and it's not like it doesn't have tools if the economy were to show weakness again. and that would be extending the period for when they begin to raise rates. and also if you look, notice
12:34 pm
where the market is, that is our fed expectations. the blue line for the fed funds rate. just .9% end of 15. 2% end of 15. and the third quarter is 3.3%. very shallow, very extended. and the fed can bring that down. that is another policy tool they have. >> quickly around the horn not. questions but comments. is the market ready for the moment? >> it is extremely well advertised. not only that. it's been advertised for a year, for two years. and people should rejoice that it is happening finally. so i think the market is more than ready for it. >> the market embraces it. i think the rate wills stay low for longer like was said. and i think there are plenty of opportunities stocks over bonds right now. and look around at big cap tech, some of those names, intel, microsoft, hewlett packard. and even in the pharma. we talk about big pharma all the time. i always consider amgen.
12:35 pm
>> do we think a bigger selloff in bonds or stocks tomorrow? >> neither. i don't think the market reacts to this news in a big way. >> when did you stop beating your wife? a bigger selloff in bonds or stocks. they can rally even. >> it's a non event. >> three quarters of respondents think the ecb does quantitative easing. average date of february 2015. so it is not like we're without a net here. there is a policy that the market believes will be in place shortly to address the number issue out there, which is european weakness. >> i want to believe that the market is ready to accept the fact that qe is ending. i'm a little skeptical based on the way the market has reacted at times that thought. also bullard suggesting things should be pushed out a little further and watching the market
12:36 pm
rally by 6% since he said that. >> one of the big concerns was ebola at time. >> agreed. huge. >> and in our survey in terms of risk of different things, european weakness was 2:1 a bigger threat. >> and market could respond negatively if the fed doesn't end it. >> right. we'll talk you do tomorrow for sure. >> if bonds or stocks fall, when they fall. >> thanks steve. i didn't say that. dom chu. >> get guess who's adding more noun their stock. ibm added additional $5 billion to their stock repurchase. in addition to the 1.4 billion they still have on remaining stock purchase programs. so again, ibm one of the companies talked about often as the serial repurchaser of stock now adding more to that. and pointed out in "new york times," since 2000 ibm bought
12:37 pm
back about $180 billion worth of its own stock. >> now back to the fed. what could tomorrow's announcement mean for treasuries? let's go to jackie deing . >> the market has not necessarily had rational reactions to the fed announcements. we are expecting to see qe end tomorrow. but the question is how will it shape out in the bond pits? >> i think what the fed has to say is going to be mil milk and kookzs and a pat on the head. the last time the fed ending a meeting was above 20 0u. we know it is going to end. i think they are going to push out raising rate because that is what everybody's paying attention to now. >> jim said earlier this morning he thinks rates rise before falling again.
12:38 pm
where do you think. >> i'm o on the camp with jimmy. if you see multiple days of the equities market selling off, three or four days of the triple digit points then you see rates go lower. but if the market remains normal, trudges higher u you will see rates high higher. >> for more on bonds look at the live show where we'll sbeek to macnei curry and the peter slif schiff. >> i'm sure he'll say as he did most recently too that the economy is a disaster. ask him about that too. jackie thanks. see you at top of the hour. coming up herb's back. we're going to get his take after the break. and plus something unusual is happening and it has peat najarian watching out for sol flares.
12:39 pm
and can billy joel not live in harmony with the knicks? we're going morgan brennan for that story. >> the knicks kick off tomorrow. but today msg is kicking off plans to potentially split into two publicly traded companies. what that means after the break.
12:40 pm
tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do.
12:41 pm
welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*? big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win,
12:42 pm
no matter what business you're in. today there's a new way to work. and it's made with ibm. coming up on power lunch. a busy hour, exclusive with three ceos from three different sectors. whirl poole on the state of the consumer in biotech. the kre of receptors. his stock is up 45% on the day at this moment. and idti is up 20% right now on the day. containing the outbreak. we have the individual who goes in and cleans up ebola in new york. he was at that bowling alley. you have to hear what he has to say. and is the era of the high end condo coming to an end? scott, we had a good night with the skins last night.
12:43 pm
>> oh yes we did. oh yes we did? speaking of sports. excuse me. i choked up at that win last night. madison square garden is soaring. morgan joins us life from outside madison square garden. >> msg is considering spinning off its live entertainment from sports and media assets and creatic two separate publicly traded companies. one can real estate holdings including madison square and productions like radio city and the other owning the knicks and other tv holdings likes msg network. they announced a first ever stock buyback plan. and announcementing two nominations to the board. it comes after a record 2 billion dollar sale of the
12:44 pm
clippers. and companies trying to recognize different value for their businesses. and the split would make the assets more attractive while letting the more capital intensive business find cost savings as a rape. and mario gabelli, is delighted and giving clarity to holdings. scott back to you. >> hedge funds have been very active as you know. kate kelly has been digging through that. making phone calls. what did you find. >> right. an interesting player not yet gone active in the past. jat capital management, run by john thaler. some of the biggest holdings are like like yahoo, twitter, facebook. they two travel leisure, gaming and so on. but this msg is the first activist situation. they made a filing in august
12:45 pm
that was strikingly polite talking about boosting value and apparently what they wanted is much of what ended up happening or may happen as of last night. between separating out more valuable assets like the knicks and apparently the $2 billion sale of the clippers sparked a lot of conversations in terms of unlocking valuable nba franchises and then in addition to the board like a nelson peltz. that was the dolans who had a long-standing relationship with him. but peltz is a vote of confidence for the activist community in general. >> sure. >> i think the feeling is that the old way of doing business will not prevail if you have a guy like this who doesn't suffer fools gladly and see it is value unlocks. >> so we don't know who weather the move to put peltz on spurling on the board is an attempt to either soothe or
12:46 pm
thwart the activist j.a.t. >> i think it's going to plakt j.a.t. or other activists potentially. we don't know who's gotten into the stock in the last couple months. at the same time it is not the slate necessarily they would have had in mind. so an activists activist. right but also somebody with ties to the dolans and spurling as well. trying can be darn tough as you know when they are involved with a pepsi or la zard or any other names. >> peltz is the real deal. >> and it's tough. and he'll continue at it until he gets what he wants. >> everybody bullish on the desk for this? >> i want o see how it unfolds but i'm not buying it up here. it's had a big move. and other teams for sale. the nets the hawks. >> sell the news today. >> these things don't happen
12:47 pm
overnight. nelson peltz yeah and his track regard speaks for itself. but these things take time. after this rub up today, be selling it. look to get back in lower if you want long-term. >> it's a sell today at this level. and i think you are going to get much better opportunities below to get this stock back. >> do you agree with your brother, doc? >> surprisingly, yes. >> yeah big shock. >> he didn't ask if you agree with me doc, she asked if you agree where your brother. >> i agree with stephen weiss and murph. >> you got to know the management is going to remain the same. there are additions to the board but even if you have slightly more attractive assets with a higher multiple separate prd others you still have same guys running the show. >> thank you. well speaking of deals and shakeups, let's get back to our big story of the day. herb greenberg is back with us
12:48 pm
for the big call on what the company should do next. herb what you said earlier was one of the most profound things you've ever said. unfortunately we didn't here. what i said is they don't need the pressure distraction or scrutiny of being public. a and/or as i wrote on rae money today. jerks like me taking them to task because they are a public company and they are not quite doing what they need to do or perceived need to do. so i think this in case you have a tremendous brand. let's remember, twitter is a great brand. and why this isn't part of some other company like google or someone else who has the cash, can fold it in, let them do what they need to do behind the scenes is beyond me. >> whose the most likely purchaser? who would make the most sense. >> caller: before they went public it was -- before it was public it was google.
12:49 pm
>> some said apple. >> well anybody's guess. you could have apple. this morning jim cramer said yahoo. anybody out there if they could take this and allow it to grow the way it teed to. and that is the issue. the companies become public and damaged goods and i'm concerned it is going to become to facebook what burger king is to mcdonald's. hewlett packard to i p.bm. all these companies that are number two. and that doesn't need to be a case if you are private versus a public. >> [inaudible]. high increasing burn rate these day. >> herb thanks. >> caller: take it easy. >> coming up paul sankey of wolf research joins us why the oil plunge is lightly short lived. they're still after me.
12:50 pm
get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪ they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable.
12:51 pm
12:52 pm
wi-fi access in more places then ever before. all your favorites in the cloud and on every device. a home you control with the touch of a finger. news and entertainment that informs and delights in ways you never thought possible. comcast nbcuniversal bringing media and technology together for you. welcome back. oil prices trading around june 2012 lows. even though major firms have been cutting their price targets this week one top analyst believes you shouldn't get too negative on crude.
12:53 pm
paul sanky is managing director and top analyst. how low is oil going to go? >> i think the is a good chance it bottomed. seasonally this is a low. we think it is a terrible time to go negative right here. we are a month away from an opec meeting. we think the saudis may we trying to scare other members to making cuts with them which is why news flow is bearish. >> what would you buy today? >> if we are right it will go up you can buy almost any oil stock and the more leverage the better. just because of the weak demand and the fact that the balance isn't great. we prefer eog. we like restructuring and cash returns to shareholders. we like hess and pure dividends. conoco phillips or european names. >> you make the case that if you are wrong and oil prices continue to go down even as much
12:54 pm
as 25% more that you can still make money in oil stocks. that could be counter intative to certain people. why do you say that? >> the equity market is good at discounting what will happen next. in the previous six major down cycles for oil if you had bought the oil stocks 25% above the lows you would have made money over the next months. the equity market discounts the moves. that was a pure analysis. it is not our view but what happened in the market. >> it is interesting that as you see oil coming down there is the spread so people would naturally say i wouldn't want to buy a refiner in that environment. you would say otherwise, as well. >> that's right. if brent rallies we could see the spread rewidening. that is discounted in futures. if you look at the future strip you will see that they widen
12:55 pm
quite dramatically going forward to the point of buying refining. the concern is somewhat weak but we see the stocks perform really well. >> i have to run. is there a best in breed name for a refiner you recommend? >> we are putting hope in the new ceo at valero. >> we will see you soon. >> coming up unusual activity in solar stock. pete is going to break down that trade and that is up next on the halftime show. keeping a billion customers a year flying, means keeping seven billion transactions flowing. and when weather hits, it's data mayhem. but airlines running hp end-to-end solutions are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming -
12:56 pm
and are ready for it. make it matter.
12:57 pm
ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need.
12:58 pm
start building your confident retirement today. well, you know how we normally do worse trade on the show. i guess last night if you are a cowboys fan was a worse trade but best trade is the redskins. tony romo took a nasty sack at the beginning of the second half and hurt his back, as well,
12:59 pm
unfortunately. local hero colt mccoy led washington to an overtime win, the loss snapping the cowboys' six-game winning streak. washington is 3-5. it was a huge win on the road. rg 3 is coming back soon. dallas is still in good shape. they are 6-2. romo's back could be an issue. we hope it is nothing serious. >> good thing he had faith going into the game last night. >> did. >> any comments? >> unfortunately, redskins can't play the jets for the next half of the season. when something unusual happens the options action is in the solar name. pete is co founder of options monster. we like to remind you 57 times a day. >> the november, they expire on the 7th. the 21 strike calls. this is volatile stock buying calls tonight.
1:00 pm
started buying them around the 50 cent level. >> final trades. >> american airlines long. >> ual long. >> made it on time. "halftime" is over. "power lunch" and the second half of the trading day start now. today on "power lunch" the american and global economies through the eyes of three disparate ceos. they represent the consumer discretionary sector, chip sector and bio tech. you will get information all in the next five minutes. i'm supposed to stay here. don't go anywhere. the man who cleans up ebola in new york city. what does it cost? who pays the bill? how safe is it to do? all those questions will be answered today. an

71 Views

info Stream Only

Uploaded by TV Archive on