Skip to main content

tv   Fast Money Halftime Report  CNBC  July 14, 2015 12:00pm-1:01pm EDT

12:00 pm
bottom of a cycle. the bid isn't that high considering where the stop has been trading recently. >> is it a trial balloon? >> i wonder if it is a trial balloon to see what people say. but we'll see. >> that does it for "squawk alley" on this tuesday, let's get to headquarters, scott wopner and the half. carl, thanks so much. welcome to the halftime show, let's meet the starting lineup. stephanie link is here along with jon najarian and pete najarian. our guest host for the hour is mario gabelli, the chairman and ceo of gamco investors, our game plan looks like this, chip wreck, why intel shares were slapped with a sell today. the man on the street is with us, live. bankroll, top investor anton schutz on whether financials have what it takes. stocks have had a
12:01 pm
four-straight updays in six months. what the s&p is going for at this hour against the backdrop of disappointing earnings and retail data. who better dissect it than mario gabelli. as you know, we have had some developments over this past 20 minutes. in twitter. on reports that are now being questioned and perhaps even shot down officially. dom chu, you have more on this? >> now it is now being shot down officially by the folks over at bloomberg news, the reason why we're talking about this is if you look at an intraday chart of stock shares, we saw an 8% to 9% rise on the heels of what at the time was at first glance viewed to be a bloomberg news report that twitter had fielded or was talking to bankers about possibly fielding some kind of a buy-out offer. it was refuted by bloomberg as a fake story.
12:02 pm
from a fake website so think of it like what happened with avon and the other fake regulatory filings, alleging that somebody was possibly interested in the stock. twitter shares were up by about as much as 8% to 9%. they've given become a lot of those gains. bloomberg is denying the report that they came from a phony website with a domain that did not even match or bloomberg news's website as well. so that's the latest right here, you can still see shares up by 3.5%. maybe there are some holding out hope that there's a deal down the line for twitter, back to you. >> no official comment from twitter at this point? >> none that we've gotten so far, we continue to monitor the situation and bring you a formal statement if it does come down that line. >> dom, thanks. let's get a comment from one of the most well-known twitter analysts around, bob peck is the internet analyst over at sun trust, joins us on the phone. bone i know you ran out of a
12:03 pm
meeting so thank you very much. as dom said, it appears to be fake. bloomberg said it didn't come from them, what's your overall reaction to even this conversation about a possible deal for a company people keep speculating about, is going to have that as its next move in we don't think it's likely. a couple of reasons why. one is, if there were a potential deal on the table, we don't think they would have gotten it through the whole ceo transition. we think the you're selling at recent lows and they're starting to roll out new products, they think will hit and therefore drive the value up. if you look at the premium cited in the article. it's only a 20% premium. why would you take that here. we touch base about industry contacts, they don't think it's that likely and even anthony nodo, the ceo said recently at a conference they have not hired bankers. >> the stock has moved above the 50-day for the first time in many months. before this fake story was put
12:04 pm
into the market. why was the stock moving in the manner it was prior to this? and what does it say for the near-term trajectory do you think? >> i think a lost clients are looking to see if the stock has bottomed out that expectations for 2 q are about as low as they can go we've cautioned investors on two things, one we don't know if the user metrics can actually decline for the first time ever. number two, is the guidance could be week if they're going through this transition. we think it will take a couple of quarters and sometimes try to bottom-feed. >> you want to make a call on who the next ceo going to be? >> we've narrowed it down to four people. >> have you narrowed it down any more than that? >> no, but still adam bain leading the list. >> say again? >> we've narrowed it down to those four with adam bain leading the list. >> i got you. stay with me for a second. i want to go to our dom chu at our breaking news desk.
12:05 pm
>> quick update. per "reuters," twitter has denied the report of any kind of a potential deal this according to a twitter spokesperson, so "reuters" is reporting that twitter is on the record denied reports of a potential deal citing a spokesperson. so it was fast and they came out and said it. so again just to bring you the update. twitter denies report of a potential deal. so says a spokesperson from twitter. back to you. >> dom, thanks. bob i'm going to let you run. i don't think it's worth dwelling on what obviously is a fake report. great to have your insight on what you think the near and perhaps even long-term play is for twitter. i know we'll talk to you again soon. >> bob peck over at sun trust. i'm going to turn to you mario. not so much about twitter specifically. what does it say to you about the markets that this type of thing can happen and move the stock in the maern it can. we've seen it with avon and now we see it here. you go back to a time period where people would say heard on
12:06 pm
the subway. they were saying that this is what they overheard going from wall street to midtown and they would come back and then speculation would run rampant. this is just the modern version of that. except who is doing it is an interesting thing and the interesting dynamic. so what safeguards should we have? common sense? should we try to have a finger on a trigger that is a hair d trigger in terms of making instant analysis? yes, all of the above. it's going to happen again and again. somebody at one minute to 4:00 will watt to be the headline. >> we talk about the markets in general, there have been so many cross currents lately. we're about to get into the thick of earnings season. you've had greece, china have issues in their market and concerns it would roll into the economy there. and then hit the global economy. how do you feel about the markets as you sit here today with us?
12:07 pm
>> i'm a fairly simple person. earnings, multiple, psychology. so when i look at earnings, obviously you pointed out alcoa kicked it off and today jp morgan and wells fargo and so on. you'll have more, currency, energy, those are the headwinds, the martians knew about it. when we go out the balance of the year, the touchpoints with regards to the global economy. the u.s. despite the soft retail sales in june i think will continue to do well. the consumers' wealth is at an all-time high. they have two sets of debt that are troublesome to me, one is the student loan issue. we have a problem with that we have to address that and the other one is subprime car loans which i'm probably more concerned about than most. and then beyond that the spending power, wages are rising, jobs are rising, confidence is rising, we have the higher over the next 12 months of 21 individuals running for office. 20 and over, the last count.
12:08 pm
>> the number is about to change in another howe hour. >> you get a lot of headlines on that and are we going to stoke fears, stoke emotions? we have the psychology of the market. we get into the balance of the year, 2016, the euro is going to be okay incrementally relative to the drop so that becomes less of a concern and a big portion of the s&p earnings are nonu.s. based. >> you're saying by the euro being okay -- >> it's not going to drop -- >> the dollar is going to weaken? >> drop from 138 to 110. is it going to drop down to 95? so what. that's incrementally less onerous, than the drop from 138 to 110 as we're reporting earnings and converting earnings. in addition to that, draghi is going to have the economy doing better in the northern part and obviously you have the question about, you know, the third time will it work. okay. will the greeks come to an agreement? and is there a contagion on the periphery?
12:09 pm
those are the issues we've been thinking about for five years. china is a little different in the sense that it does have a significant impact on the global economy. the u.s. is 20%. china and japan are 20% and china being two-thirds of the 20%. >> and the question is they would have to have a commanding economy, that has to be shake an little bit. on balance i think earnings will be quite good. and yellen will raise rates. it will help the net interest margin spread and i'm okay. there's no margin of safety. where's the safety net? so scott, those are the elements that we look at on balance for the year, same as we said in january and on your show. plus 5%. >> i said were you going to dissect it, who better. you dissected it. >> psychology is important in terms of our government. >> mario, how do you feel about guidance? earnings guidance when we hear
12:10 pm
from the company? >> one of the challenges we had is that we had a large number of individuals for a long time on the sell side that would challenge management and hit them and the rule fd coming in about ten years ago has diluted some of that large companyings on balance are still you can connect dots. i think wells fargo had 440 analysts covering it. i had a company in my office yesterday, bassett furniture. where are the bargains and how do you focus on this? and why is one doing better than the other one. what's the company? so i don't have any particular insights so far in terms of the industrial companies. i think that the third quarter will be a continuation, a good insight on what's going on in the industry americans, slowdown in terms of their sale, maintenance repair-only type service. that's a good question. we're still tweaking that a little. >> let me get you before we go to break real quick and come
12:11 pm
back and we'll talk a lot more. it sounds like you think there's going to be a u.s. catch-up trade between now and the end of the year? >> no, i think -- i think 5% for the year is fine with me. i think over the next ten years, if you buy a mindless investment in an etf, you'll be able to do a 5% to 7%, including dividends. the question is what's that worth? unless inflation rising substantially and the companies can have the pricing power to pass that along in terms of nominal growth. i think it's okay. hopefully we do -- tearily higher than that. >> are you looking to do what carl icahn did with netflix? you've had some stocks, time warner, cvs, o'riley are now at new highs, are you looking to take money off the table? >> unlike carl who has the perfect world and he controls the money, we have 2,000 clients and we're separately managed. if somebody goes from 3% holdings to 6% because o'riley
12:12 pm
has gone up six-fold. we'll trim up a little bit. in the independent of that we have one large position in directv and the government is really acting very quickly on certain issues like the merge wer at&t, it's amazing how they drag and drag things out. so you know, we can blame other countries for being slow in terms of rules and regulations, we should look in a mirror. >> take a quick break, coming up, analyzing the analysts, from amazon to coke and intel. many others, big names seeing big action from the street. we break database the calls, including a sell rating on one of pete najarian's favorite names. >> what? impossible! and forget jp morgan, wells fargo or citi, one of the top managers on the street has an under-the-radar play. he says has much more value.
12:13 pm
12:14 pm
12:15 pm
we are back, big bank earnings getting hot and heavy with jp morgan beating the street on the top and bottom lines. wells fargo, results mixed. with us to break it down is top fund manager, anton schutz who run as fund rated four stars by
12:16 pm
morningstar, welcome back. >> pleasure to be with you. >> give us the play on jp morgan and wells, please. >> well you know, both and i'll put them together. both companies kind of came in very close to expectations. it was you know, it was kind of a so-so quarter. didn't beat on anything. you know thick was a little weak at jp morgan. mortgage wasn't all that terrific at wells fargo. there was tax gains. looking under it, we're waiting for rates to rise. so that whole fed play. why the stocks rupp, why people want these stocks is because they're waiting for rates to rise. waiting for margin to improve more than two basis points. under it all, the companies continue to get ready. technology is huge. you saw jp morgan have a lot more usage on telebanking. you know, passing internet banking in terms of speed and adaptation. and you know, they've both worked on their balance sheets. i think the real issue is going to be when rates start to rise, how many of those deposit does they hang on to and how fast?
12:17 pm
what's the velocity of those deposits leaving. how fast do things drop to the bottom line. people want stocks for the future. not for this quarter. this quarter was ho-hum. >> pete najarian told me that citi was among his top pick of the big banks. is it yours? >> bank of america is among the top 3iks. i would love to buy citi on a pull-back, with all the events going on internationally, whether it's china or greece, citi is going to be a little more correlated to those events. but it's certainly a name i like a lot and i would love to buy on a pull-back. it's been one of my favorites over time. i think bank of america, a little more domestic focus. think they're going to put up a good quarter and i think the bar not that high for them. >> a name which you like and i've never heard of before, yadkin financial, ydkn. you want to tell me why you like this as one of your top bank plays right now? >> well you know, it's all about what's going on in the south.
12:18 pm
and it's all about what's going on in north carolina. it's going from the 10th largest state to the sixth largest state. people and businesses are migrating there. this is the largest independent bank headquarter eed in north carolina. they're pure north carolina play, they're in charlotte and raleigh-durham. two of the country's ten largest, fastest-growing cities right now. the economic winds are in their sails. and it's a very valuable franchise. management has talked about the word optionality. they're very shlder-focused. if they can buy another small bank and add value for the shareholders, fine. if they sell at a big price to one of the super regionals, fine. think we can make money for this either way. i love names whereky own them fundamentally. and i come in monday morning and a fifth third or somebody else could own this company. >> what's the tangible book at yadkin? >> tangible book is growing really fast. so tangible book is 11 and change. but by the end of the year, it's
12:19 pm
going to be closer to 13. >> so you're assuming that -- >> you think that the takeout would be at two and a half, three times that? >> yeah, two and a half times book is very possible here. because you know the earnings power of this company is very high. they could earn $175 next year. so if you put an upper teens multiple on that you could end up with something in the upper 20s, low 30s. >> your basic model is play the local banks in north carolina. centimeter somethiuth carolina, florida? >> and that's why our portfolios have performed well. we've had a number of takeovers this year. >> no patting on your back. come on, you're entitled to do it once. >> we appreciate having you on, anton. >> anton schutz. this does make for a good conversation, guys. pete. about the regionals versus the big guys. mario, you've largely placed your bet on the bigger banks. pete, what about the regionals? >> well i place might bets on
12:20 pm
the trust banks, okay? so i've always liked the bank of new york. state street and northern trust. >> you like wells? >> i own those in part because i felt because of dodd-frank and the footsteps they would not have the lack of transparency. so i happen to like jamie dimon forever. the big play for us is obviously the takeover plays for us are the regionals. south carolina, north carolina, because the way that i govern their states, texas is terrific, except for a minor issue short-term and florida. you know, rick scott is doing a fabulous job down there. i want to know who is down enter so the canadians can buy them and other consolidators can be there. >> i like jp morgan. if you look through the numbers, loan growth was one of the areas. when you look at city and bank of america still yet to come, i think citi, there are going to be a few headwinds for city. you look at the loan growth and refinancing and m&a. thick is going to be tough.
12:21 pm
the rest will be strong. that's why i still like citi. >> he liked it, too. >> he preferred bank of america. think the problem now for bank of america is i think they're a quarter or two away. i own both, i would love for anton to be right on bank of america because i own the stock and the options, i think in the shorter-term citi has more bang. >> their cost versus management controls, that's why you want to own the stock in the near-term eventually you will get the loan growth and operating leverage. for jp morgan, the one derivative call was that equities did quite well. that bodes well for morgan stanley they've got a more tilt towards equities versus fik. >> i read it as softening up the outlook a little much, the outlook was challenging on any softness in the stock, which you're not seeing, it's pressing up to a new high. i think you pick up more of that stock. as far as wells, the thing that had me a little you know not so
12:22 pm
happy was the net margin interest, it was down pretty substantially year-over-year. they said that, margin loans and loans in particular to homeowners aren't looking like they're going to be picking up in the next half of the year. >> n.i.m. was up two bases points for both of them on a sequential basis. we haven't seen sequential, we haven't seen anything like that in years. >> it sounds like a two-inch rainfall in california, you'll take it. >> i will. at this valuation i will. >> coming up, intel's rough year just got a little rougher. the stock down 18%. gets a rare sell rating today. stock act pretty interesting, we'll show you that next. plus the analyst behind the call joins us, liquid assets, we know mario gabelli likes a little bourbon in his portfolio. now he has a new liquid play. what it is and how he's playing it.
12:23 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. if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer.
12:24 pm
hurry, before this opportunity cools off. share your summer moments in your mercedes-benz with us. can you tell what makes them so different?. did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. you don't even need a cerebral cortex to understand which is better. now, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized. can a a subconscious. mind? a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
12:25 pm
12:26 pm
oil prices in focus after iran and six major powers signed an historic nuclear deal. jackie de angelis at the nymex with the futures now crew. >> a very interesting reversal in prices, seeing a spike especially in wti. anthony gra zaisani, you're seea rebound? >> just a little. think it has to do with the dollar and the anticipation of a draw, when the supply numbers are released. later on today. but i think with the iranian oil coming back on the market there's only one way to play this and that's to sell it. 54, $55 are the levels i'm looking at to get short. >> brian sutland. what are your levels and how do you see the trade moving? do we move higher from here
12:27 pm
before we go lower? >> yeah, i think anthony has got those levels right. i expect about $3.50 bounce off the lows, probably up to the $54/$55 level. ultimately oil is headed to $50 again. i think it needs to retest in the 40 range we saw six, nine months ago. so that's a possibility in the cards here that we eventually trade below 50. >> tune in to the online show, we'll talk more oil and also talk to peter bookvar who will tell us why the second half could be a little rocky for stocks. you don't want to miss it. >> what's your take on oil, energy stocks, big oil. some are moving in anticipation of getting more business. >> i don't know if the deal with iran will be pushed through the congress, okay. hard to see how it would. without a lot of safeguards, and in god we trust, everyone else i want to verify. in any event, oil is rising, the
12:28 pm
saudis indicate they keep pumping, from my point of view, i have a lot of money invested. one billion cars on the road in the world is 250 million in the united states. if you use it and drive more, that consumes parts, that's good for certain of the companies. so -- >> such as o'riley. i'm preaching my book and my church. i've been a parts person for a long time. we like the razor blade business and those company that are retailers have done well. almost priced for perfection, they bought back stock and they've done the cap strength like auto zone has been the leader, and o'reilly's, genuine parts are coming into that category. they control about 45% of the market for parts. that's, just one aspect. and europe as a company is benefitting if you want to go macro. i look at the bottoms up. >> what about you guys, energy? some of the big names are moving. many of the big, big oil
12:29 pm
companies. >> some of the names could perform. people have been staring at yield and i know refiners continue to be one of those performance areas as well. to mario's point. how about a goodyear tire when you're looking down the track of where things are being used, that's one of the areas as well, on top of the auto parties as well. >> as far as the refiner trade that pete mentioned and yesterday joe terranova was talking about, i worry that a lot of the easy money there has been made. i think a lot of the shorts have covered. i've seen the short interest drop dramatically in valero and tessoro, i think now is not the time to get into those two stocks. you wait and get into the e & p side. >> one day away from delivering alpha and a big year for activist investors. what can we expect from heavyweights like bill ackman and carl akhan this year. calling it the yogurt trade. mario gabelli is capitalizing on america's health craze.
12:30 pm
even doing some due diligence in the break with his own container. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.
12:31 pm
[ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪
12:32 pm
12:33 pm
hello, everyone, i'm sue herera, here's your cnbc news update. house speaker john boehner weighing in on the nuclear agreement with iran. he calls it a quote bad deal that would provide billions of dollars of sanctions relief to tehran. without preventing it from acquiring a nuclear weapon. but he insists that he has not prejudged the agreement. best buy, the latest retailer to offer black friday sales in july following amazon and walmart. the consumer electronics retailer is holding a sale on july 24 and 25 on its products. a new study by harvard researchers suggests by treating more americans with cholesterol lowering drugs, more cardiovascular events could be prevented. right now the drugs are only being prescribed for patients with over a 7% or greater risk of cardiovascular disease. the british open is back in st. andrews in scotland.
12:34 pm
even though back surgery has slowed him down, tiger woods is assuring everyone he's going to be around for a while. he said rei.t. is not an option and he's confident he'll be a contender this week. we shall say. back to you, scotty. it's been a tough year. >> let's do our calls of the day, five big calls on five stocks. gopro upgraded to overweight at barclays. they say their skepticism has turned to optimism. >> not just because the stock got a heck of a lot cheaper. share price cut in half and then some. it makes a nice $3.50 move to the upside on heavy volume, obviously people paying attention and picking up some gopro on the cheap. pete, amazon, ubs upgrades it today, they bump the price target up to 550. stock is up 50% this year. >> it feels a little bit late, maybe? >> you think. although what they point out in
12:35 pm
the note is that the growth they're seeing in the fulfillment area. they're seeing some of the monstrous growth that you're seeing in terms of the prime. that's what tomorrow is catering to, the prime day. this is the holiday, the 20th anniversary of the an zmazon itself. when you look at the name and break it down, can you see all kinds of growth, especially when you look at where prime can go from here and the penetration levels. it makes sense, they are late on this call. >> six firms have initiated coverage on fogo to chow, three holds, three buys. >> i had to call josh brown, he is our food expert. if i want to an upscale brazilian i'll call gisele. this stock got upgraded by everybody who san underwriter. judge, listen, this is important, i'm talking to you. when just the underwriters upgrading, the only one who didn't was deutsche bank. why not? because they overate too much
12:36 pm
greek food. very nice. >> you know i'm glad you stopped there with gisele and -- >> and greek food. >> i was going to call -- >> we all are. coca-cola, catching an upgrade over at ubs, $48 price target. what's your take here? >> it's kind of interesting. the stock hasn't done much, it's been trading range since 2012, from 37 to 44. if the company can execute on productivity, on refranchising, on getting better pricing, on product transition, the story might work. but at 20 times forward estimates i think the stock is pricing in a lot of good news to be honest with you. i think pepsi is the better buy, i think their 5% organic growth rate is going to be one of the best in the entire sector. and i'm willing to pay a higher multiple for that. >> mario, i turn to you because you don't have coca-cola as one of your top holdings, but you do have dr. pep centre. >> i'm a ddp guy. i grew up drinking that stuff.
12:37 pm
-- dr. pepper. i like the stock, we owned it before it was bought by cadbury. it spun off, we own it again. it's a good cash generator. however, both of these companies have to think about health and wellness. natural and organic. and the elimination of salt and sugar and in their particular case substitutes for what they're putting in their diet drinks. so even though i drink ddp, diet dr. pepper, we are sensitive about these issue. and all of them should focus on one company. >> i'm with you on the ddp. it's good, right? >> focus on one company, and that is yogurt. you think about fermented milk, it's a $500 billion business today in terms of dairy products, it goes back to the neolithic age, a long time ago, before me, before a lot of other money managers. essentially the yogurt part is $83 billion growing because of health and wellness, you've got to own necessarilythesnestle's
12:38 pm
mills, i have a feeling if i'm nestle's and general mills having their meeting today. i want to own it. >> you own nestle, you own general mills? >> i own everything. i will never speak for something i don't own. what do i look, crazy? >> you didn't say dannon. >> they've charged analysts to go to a meeting, $1300, it was insane. i don't understand what the ceo was thinking about at the time. and so he and -- >> that's a lot of yogurt. >> that's a lot of yogurt. at three cents a share, we would have to sell 300,000 shares to pay for our analysts going to the meeting. >> you want to do the intel call here? yes or no? yes? okay. finally, intel downgraded to sell over at bernstein, $25
12:39 pm
price target. stacy rascon the analyst behind the call joins us now on the phone. good to talk to you. >> good to talk to you. >> a rare sell on a big widely held name. why make it today? >> i'll admit the timing of it is a little inopportune. that being said this is a second note in a week we've written on for intel. last week we took our numbers down on weaker pcs, which wasn't a shocker. at the same time we highlighted a number of indicators that i would call circumstantial. that suggest to me further deterioration could be happening. layoffs, weird executive departures, a big expensive nonaccretive deal. reports of processes and product delays. i did not take my rating down at that time because those were circumstantial data points what happened since then is we got information that may not be quite as circumstantial. there's some signs that highlight the possibility of a disappointment in intel server business, the data center business. that's the last sort of leg standing on the bulk piece on the stock. i think there's a chance of that
12:40 pm
disappointing now. that's enough to push me over the edge. today we took our numbers down, cut our prospect for data center. we took our target price down and downgraded the stock. >> negative synopsis there. i've got pete najarian sitting here in front of me. you agree? >> when you add up everything that he's talking about right now, scott. it's very concerning, obviously and the data center, that's where we've actually been looking. isn't that correct? i mean we've been looking at other areas trying to move away from the pc. moving towards wearables, moving towards the data center. moving towards big data in general and this is obviously something that i think is weighing on the stock and that huge, what is your assessment in terms of that monstrous buy? the big m&a they announced, is that something that's weighing on it in your mind as well? >> i think the buy was defensive. there's no upside, they're spending a bunch of money that they don't have to get zero accretion, a defensive move to protect the data center business, abobut i don't think
12:41 pm
drives upside, think they're looking to prevent downside. >> bernstein's stacy rascon. mario, no the into big tech, old tech? not into it? you don't like it? don't own a lot of it. >> yes. you're right. >> why? >> we don't have a core competency in that area. we like to do things that we've done for a long period of time. having compounded knowledge in industries that we have a pretty good insight into. vendors to boeing and airbus. digital, the content distribution. of entertainment on the global basis. those are examples and industrial products, the stuff that we talked about before in terms of where do we like what we do. we're having a 40th automotive annual automotive conference coming up this year. we have about 26 vendors to boeing and pump valves and motors, you know type of conference and we have one on let's say companion pets, cats
12:42 pm
and dogs. so when you think of gabelli, think about going to the dogs and cats. not the techs. >> what do you think of the call? >> i think it's kind of late. the stock is down 16% year to date and it's trading at 13 times forward estimates. if you believe in estimates. i get that, maybe estimates have to come down. i would like to know why data center is so much weaker. who they're losing market share to not involved in the name. toin like kind of some growth and some value in tech. like software security. and at looking at pull-backs in that sector to be buying those. i like cloud, those stocks continue to just run really hard. and i do think there's some value tech that you can own. and i point to something like a cisco. which you get software security by the way. and you get enterprise spend and it's also very attractive. >> can you have a hewlett-packard doing spin-offs and what are the spin-offs going to be doing so there's some financial engineering which creates short-term interesting pockets for us. >> the whole notion of is value going to come back into favor in the market. it's been a growth-driven
12:43 pm
market. those are the stocks that everybody is talking about. the netflix is the world of the ones that are running. does value come back into favor or not? >> i hope not. i mean 1971, '2, '3. the whole world went to the nifty fifty. value was dead. 1999 it was go went to a $20 million market cap. value was dead. we bury value all the time. i like it i'm not here to bury it or praise it. i'm here to be practical. do i sound like julius caesar? basically we are looking at what is a business worth, we're buying a business, can i preserve my clients' money over the next ten years, create and maintain wealth? how do i do it tax-efficiently. do i have a company where the ceo comes to work every day and allocation of capital, the trade-off between shareholder compensation in terms of buy-backs and dividendsnd versus the growth in cap ex and r&d.
12:44 pm
and we think about this all the time. the ideal world is a growth company growing 20% a year buying at five times ebita. >> coming up, mario gabelli talking liquid assets, we know he likes bourbon. stay tuned to find out what his new play in the space is. speaking of conferences, a line-up of hedge fund titans a at our delivering alpha conference tomorrow we have a preview coming up next. at ally bank no branches equals great rates. it's a fact.
12:45 pm
kind of like shopping hungry equals overshopping. if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. share your summer moments in your mercedes-benz with us. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the 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.
12:46 pm
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. ask your doctor about cialis for daily use and a free 30-tablet trial.
12:47 pm
at ally bank no branches equalsit's a fact.. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. on. on. it could've been brenda. . coming up on power lunch at the top of the hour, the prophet marcus lamonis, will be joining us for two hours. we speak with an investor in iran oil. he said there's another secretary that are will get a major boost and shares of twit remember twitter are spiking off the false highs. russell big cap names are near
12:48 pm
or in correction territory. the stocks that are keeping the market afloat all coming up ahead. we'll go for a quick break now, and halftime is back after this. a new sea chance to tryew look. something different. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ the 2015 cadillac srx. lease this from around $339 per month, or purchase with 0% apr financing.
12:49 pm
12:50 pm
we are back. less than 24 hours away now from cnbc, and institutional investors delivering alpha conference and tomorrow a who's who of investors lining up so
12:51 pm
what can we expect from the hedge fund heavyweights? kate kelly has the rundown down from the new york stock exchange. hi, kate. >> hey there, scott. we do have a full roster of major activists showing up tomorrow, and with their strategies returning nearly 6% on average so far this year, that's the hfr index, the activist index, much better than the s&p. theirs will be presentations that people really want to watch. early in the day bill ackman and nelson peltz who can talk about any number of names but lots of intrigue around ackman's latest target which would account for 15% of his firm's capital or roughly $3 billion. we know he's taking a big stake in know mad foods, the british acquisition company and perhaps he'll say more about both of those. keith meister, another big player and two of his biggestiums, yum brands and williams company seeing lots of action. yum reports after the bell. meanwhile williams is fighting
12:52 pm
off an unsolicited bid from energy transfer energy which has so far undervalues it and delivering alpha wouldn't be complete, scott, without a closer from carl icahn who is hopefully going to debate larry fink on the subject of activism itself, something i would like to see and hopefully he'll shed light on his recent decision to dump shares of netflix and maybe give us his latest thoughts on apple. always constructive ideas there. >> kate, looking forward very much to that, all of us are, in fact. kate kelly, we'll see you tomorrow. >> we'll be live from delivering alpha, tune in for jeff gundlach's reaction to janet yellen's testimony on capitol hill and i'll moderate the discussion between carl icahn and larry fink. go to for all the details. you want to make a comment? >> i think that's a great debate and lots of interesting dynamics, but i'm on the side of carl icahn on this one because my -- i happen to be involved in a couple of interesting dynamics
12:53 pm
in a proxy war, and my list investors, they don't -- spe spend the lip service on how they vote. they just don't get it. or they get it. tops down. they have a political agenda, not an economic agenda. i work for my clients on an economic agenda and what they did on some things is mindless. >> icahn may vote more on the side of activism than conventional wisdom would tell you. >> i would like to see the scorecard. as rashied wallace once said the ball don't lie so let's look at the numbers. >> why don't you come by and sit in the audience. >> i'm, unfortunately, migrating to some other place but would love to do it. it's going to be trick. you'll be the best moderator of that and i would bring some everlast gloves for both of them. >> love you, mario. >> he's referenced caesar and rashied wallace today. >> it is what it is. >> phenomenal. >> rashied, the ball don't lie
12:54 pm
and the boat don't lie. count it. >> i'm looking forward to tomorrow. look. i think it's a great debate to in a current marketplace that we're all in, and i think there's certainly more than one side to the story. >> we agree, and that's why we're having our version of this called a tug-of-war between cap activists and capital allocation. >> all right. >> and you're welcome to that, too. >> thank you very much. >> you're welcome. >> but it's, unfortunately, during your show hour. >> probably not going to make that. >> rain check? >> these are one-offs. >> all right. coming up, mario gabelli has the trade you literally cannot live without and your game plan for second half is up next. hungry equals overshopping. hi. hi. hi. hello. hi. hi. hi. hi my name's josh.
12:55 pm
kelly. my name is raph. steve. my name is anne. tom. brian. krystal. and i am definitely not a robot. i'm one of the real live attorneys you can talk to through legalzoom. whether it's for your business or your personal life, don't let unanswered legal questions hold you up. because we're here. we're here, we're here, and we've got your back. legalzoom. legal help is here. heart health's important... you may... take an omega-3 supplement... ...but it's the ingredients inside that really matter
12:56 pm
for heart health. new bayer pro ultra omega-3 has two times the concentration of epa and dha as the leading omega-3 supplement. new bayer pro ultra omega-3. i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? can a a subconscious. mind? a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul?
12:57 pm
can a business be...alive? at ally bank no branches equalsit's a fact.. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. well, we've been telling you it's no secret mario has been a fan of bourbon stocks and now he has a new liquid asset he's betting big on, and that is? >> it's water, and it's not new, but it's an area that we've
12:58 pm
identified and we have a core competency in for the last probably 10 or 12 years, not because i saw that -- remember the water world or as a movie or as a story, but essentially we consume 90% or 80% of our water for agriculture, 10% for industrial and the rest we consume. we're sensitive about it because we're running out of it. >> xylum is the name you like. >> since i started falling it with janine in the '60s had a reputation for spinning off companies. xylem has a new ceo pat decker and the company will do 1.80, 180 million shares, xyl is the symbol, somewhere around 36.7 and over the next three years this company has a big tailwind of demand. >> interaction with people on twitter all the time and somebody asked us to ask you about the health and wellness
12:59 pm
play and whether you like haines celestial. >> i think there's an extraordinarily high degree of sensitivity. if you read "consumer reports" you'll start seeing how people look at the whole notion of health wellness, how to -- what foods to buy and where to buy, it and hain has done a very good job in terms of positioning it self. lost site of the metrics short term, not a big position, but have it on my screen. it's around 66. i don't know where it is. >> it's at 68 and change. do you like the ceo? >> yes. >> owen simon? >> he's done a good job. >> three hours to go in the trading day. give me a final thought, if you would, just on what you think the balance of the rest of the year is going to look like. >> well, except for geo~ political with putin, ebola coming -- no. that was last year. and your interest rates, in other words, there's some unknown like you had last year in thanksgiving with the valentine's day equivalent to
1:00 pm
the thanksgiving massacre. i don't know what those will unfold. there's always something that can go wrong. notwithstanding at end of the year the market will be up, anticipating 2016, and my stock i'll give you later. >> you want one? >> yeah. you have an enormous tsunami with 20 and over that spent a lot of money on advertising and the stock is scripps, ssp, 28 million shares or minor. ew scripps. >> thanks for inviting me tomorrow. >> "power lunch" begins right now. >> "halftime" is over and "power lunch" and the second half of the trading day starts right now. >> scott, mario, folks, thanks very much. welcome to "power lunch." so who will be the first u.s. company to get into iran hours after a deal is inked? we are going to look at the financial implications. >> earning season begins. several big companies reporting today. we're focusing o


info Stream Only

Uploaded by TV Archive on