tv Street Signs CNBC August 12, 2014 2:00pm-3:01pm EDT
that could exacerbate some of the moves. >> you took the words out of -- this for the first time in several days really feels to me like an august market day. >> yes. a summer day on the street. >> that will do it for this edition of "power lunch." thanks for watching. see you tomorrow. have a great afternoon. "street signs" begins right now. some people hate corporate buyouts, but can they actually be good? and the mad man jim cramer joins us for it. plus forget surveys. real small business owners are here to give their take on jobs and the economy. why another car review company coming out saying they cannot recommend a tesla, and we're going to celebrate the amazing life, of the great robin williams. >> we will, indeed. can you hear those crickets? it is real quiet out there.
i have the three major -- down for the very first time in three days. 2% away from the most recent. let's get straight down to bob pisani. bob, wake up. i know you don't have much to do down there. it feels like the market is struggling for a bit of direction today. casinos media. and not just the problem of atlantic city. boyd owns the borgata, the big competitor to the revel. revel is closing shortly, but
look at caesar's down 15%. there is an etf for that. it's call the bjk. that's been having some trouble recently. it's not just atlantic city gaming in vegas i just want to point out media, bought some of the tv stations have been weak. these are small ones, look at this, down 3%, 4%, 35%. that's weighs on them today. finally i want to point out what's been going on with the oil stocks. brent crude near the lows for the year. we're seeing that xop. that also is down again today that trend has been terrible. es that's what oil in general will do.
listen to what jim cramer had to say on mum "mad money" last night. takeovers needs to happen. they can spur the growth that's required to really ignite the stock market. it's time to get busy buys or just keep on dying. >> i've done so much. andy destrain, red. i know, you just -- i have to rein in the -- >> maybe the best movie ever. connect the dots. for what i see a constant moving
up price to earnings ratio. general mills had no growth this quarter, okay? and pinnacle foods didn't have a lot of growth. and general mills, birds ice, you own that aisle of frozen foods, you're not going to compete against each other on price. next thing you know, you have reason to own which is where it is right now. you need to get growth, not just dividends. really are ripe for the kind of acquisitions that ire talking about. when you look at a clorox. i think clorox is a great american company, but there's -- i want to say no growth on these, i'm not saying there's
no -- no, there's earnings per share growth. we're tired of that. we need to get retches go higher. the way they go higher, there's a whole bunch -- >> and to back up, haven't you said that make unilever -- >> it can't be procter, because one time they blocked that merger, but here's a good example. why did i like it so much? the has decline dramatically. >> they're divesting ragu. they're saying they want to get over. >> they need to get that organic
growth up. they're diluting the whole organization. it's got a -- >> it may be fun to play mental game. fantasy football is nearly upon us. a coca-cola buying mcdonald's. >> that's like really bad for your food merging with really -- >> clorox buying campbell's soup. >> no, no, really unholy cocktail. seriously, though. they bought this company -- this bold -- it's a organic and natural. they have very good vinaigrette. but campbells needs to be with hain. general mills needs to be with
white wave, because white wave has growth. that's plant-based soy and almond milk as well as the horizon brand. you need to be affiliated with organic and natural if you're viewed as being nonorganic and natural, or merge with another company like hillshire brands wanted to do with pinnacle. >> and you can be the adjudicator to a discussion we were having before the show. i was saying it's not just my imagination that recently what we've been seeing it's not just the start -- >> that's exactly my thesis. i mean --. look at the debate. i agreed with you. >> that was the extend of our debail. >> we were also debating about
whether or not a number of deals have recently been tax inversions maybe id dove-tailing that it's good for their growth, what you're saying. >> when hillshire brands first announced pinnacle. both went up. while the morning went on p tyson was -- wanted them very much. hillshire brands was amazing. >> very quickly. i was driving my car, listening to "squawk on the street", 9:00 to 11:00 eastern. route 1, i know it's disgusting. i almost drove into a tree, because i heard you say there's a rumor going around that whole foods could be a target. >> what i was saying is that i see people that -- i see lots of
option activity for the second time in a row and that people are saying that someone would be taking a stake, or they're going to be a takeover and that's quint essentially almost impossible for me to believe. because macke and robb are great managers. it's a challenged area right now. i would rather bank with them than sprouts or fresh market, than fairway. they'll figure it out. kroger does have a lower p.e. and higher growth rate, but the idea you can come in and run whole foods better you guys, that's ridiculous. activists, what are you going to do better? takeover? no. let whole foods be. i don't like the takeover chatter there. it seems not right. an activist could say i think you ought to slow store growth -- >> and good you didn't drive into a tree. re quickly who do you have tonight on "mad money"? >> i want to talk about, how do you get a vaccine for ebola? what do you do? you go to charles river labs,
and that's who does -- in particular the one we have seen. and you say, listen, we've got this vaccine, can we try it out on rats so we can give it to people? the fda is fast-tracking people -- and them a total play on the fact that if you run a company, you no i know you're very pro-regulation, you want regulations up to he trinet says that's great for us. he seems very pro-regulatory. >> please -- >> do you even believe in helmets to stop concussion in the nfl? >> my ears have padded any head blow i'm taken just fine. >> you have to be like one of these guys. >> i had a full head of hair until ten years of rugby. jim, thank you. it is a big theme right now, global risk.
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russian media reporting that a convoy of 280 trucks left moscow earlier today supposedly carrying tons of food, medicine and power generators to the russian-backed rebels in ukra e ukraine. the fear is it could be a trojan horse style move to get more troops into ukraine. they say it's part of an agreed international humanitarian effort. ukraine says it's not certified by the international committee of red cross and at last word those trucks not being allowed to go into the areas they want to.
gentlemen, great to have you with us. matt, you say in georeply wall -- why would it suddenly become a safe haven when basically it's not been even during all these events as being very long in a range stuck between 1280 and 13 there have been circumstances, if you look back at 2011, it can be a place i think it would be a better play, but gold could be a safe haven. >> gold is a better play for currency volatility. if currencies look like they're unstable. >> especially related to the dollar. i think when you look at gold, though, it is something i would view for speculators.
about i think, sandy, you're on the same page, but you do not like gold longer term, right? >> gold has done something like 11%. so i believe in reversion to the mean. if gold should do 2% or 3%, it's due for a bad decade, i believe, looking forward. the other thing is if you look at the end of qe-1, you saw gold rally and oil decrease. if you look at the end of qe-2 in 2011, you saw the same thing happen. it's almost like that's playing out in front of the us. sdploots you know, one thing we do not do a very good job of, we don't do enough of the good news
stuff. we try, but there's so much going on, we forget that corporate earnings are at record highs. how much do you see the u.s. economy recover even through all that's going on outside of our borders. we found out the -- i think you'll see much more growth in the back half of this year being a fundamental bottoms-up stock picker. we've seen 90% of the s&p 500 companies report, when you see this gee os political tension. >> talking of buys, let's go
shopping. let's go micro. first of all, you just mentioned you liked the dividend paying stocks, like what? >> i like j & j. i like apple, a story like one k, i -- it's one of the biggest natural gas distributors. i they these are types of companies when you can play the geopolitical concern. even with all thee opolitical unrest, demand has gone down slightly. investors are complacent. the biggest areas of concerns are the nondifferent paying stocks like amazon or others. these are the guys i think are ready to get kicked in the shin, and i would not want to hold them. sanchez energy, what do you like about it? and who are they? >> they're in the eagleford
shale as well as the tuscaloosa marine shale. tony sanchez, the ceo just bought 106,000 contiguous acres for about $639 million that shell had paid a billion for back in 2010. with that acsays, they doubled their product and acreage. you see energy pulling back. it's going to show up. and here it is trading at 30, so a great opportunity. >> you better hope it grows. let's take another look at the mark. stocks are moving lower. let's look at the chart there. about, we're just talking about a little movement here, but
wanted to keep you updated, but that is what we do. >> this is live. let's prove it. we are about to head to the front lines with the check on the status from my gosh, real business owners. >> we found some. plus throughout the show, we're remembering the life and the genius of the great robin williams, starting with this unforgettable example of free-form comedy that earned him his first oscar nomination. >> good morning, vietnam! hey, this is not a test. this is rock and roll. time to rock it from the delta to the dmz. here's a news flash. today president johnson passed a bill basically saying his daughters could not drive in a conversable on public highways. can you tell us what you've learned about the enemy since you've been here? >> we found out we can't find them. we're out there and we're having a major difficulty in finding the enemy. what do you do to look for them?
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after failing to find a buyer. morgan brennan joins us. this marks the fourth casino now this year to say it will be closing down. than we started the year with, and of course this one is getting so much more attention, because it's a $2. -- that everybody from governor chris christie on downexpected to bakley bring in a new era. how much of this -- >> and more coming. >> how much is online gaming versus too much supply verse, as i've heard from people that actually looked at the revel to consider buying it, the revel was designed terribly. >> i would say as something who
was stayed, i would say the design was not optimal. putting the casino multiple floors and the hotel, and a lot of unused space that probably pushed up utilities bills, that is definitely an issue. i've heard that anybody that potential will buy it will have to put in anywhere from $100 to $200 million just to redesign it. however casino saturation is at play here. that's why you're seeing so much close. well, i don't -- we'll have to wait and see, but fitch actually fitch ratings put out a report a couple weeks ago and they flagged two more casinos that are are still open, but aren't profitable. that's resorts and golden nugget. but going back to something that brian said before, online gambling in north carolina, that was expected to bring in more retch, and actually cannibalize away from these. that's actually been
underperforming as well, looking at the same report from fitch, 120 to 130 million is what we're on track for for gambling revenues. it keeps you off the roads if sometimes you imbibe at the casinos, but you're not supporting the bellhop, you're not supporting the chef, you're not supporting the parking lot guy. then i've got thousands as a residence of new jersey. now it's going to be a hulking problem in the middle of atlantic city. that kind of blight breeds other problems. you have this giant mall next to the meadowlands called xanadu, which is just sitting empty, 2 hill million square feet of empty space with the stupid
indoor ski slope that they forced them to put in there apparently, which is what bankrupted them. new jersey has to fix this stuff. these kind of eyesores are bad for everybody. the showboat casino right next to revel, is also closing, so you're talking a massive track of vacant property, and you talk about jobs, more than 6,000 jobs are being lost between the three casinos closing. >> there's the human side. thank you so much, morgan brennan. >> all right, we have seen videos of robots make hamburger, parent robot bellhops may be take your bags to your room. josh lipton, tell us about it. >> sully, i want to introduce you to my new friend. his name is allo. he sounds a bit like r2-d2. he is the hottest technology to hit hotels. i've been here today at the aloft hotel in cupertino, california.
guests can call the front desks. the staff then loads up the robot with the goods, and sends him on his way. using wifi, allo calls for an elevator makes his way down the hallway and delivers the goods. the hotel tells me this is just a pilot program, but if it's successful, they say they'll roll out these robots to 100 properties around the world. the robot designed by a start-up called savio, which has big-name backers, the ceo has great hopes. >> there's all these places, hotels, elder care facilities, hospitals that have a few hundred robots, but no significant numbers s we think that's a huge opportunity. >> importantly the robot isn't here to roe place employees or take their job. the idea is he will be here to assist those employ uses. they can go on to more important
tasks while he sort of roams the hallways delivers goods to guests. >> but there again go the human jobs. josh lipton. twine gear can only -- >> street talk is coming up. >> you will want to see -- stick around. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. ugh. heartburn. did someone say burn?
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people couldn't buy on them for years. they raised the rating as a result of abercrombie cutting costs, and also improving merchandise. the note says a & f testing the close, and it's working. finally it's moving away from the new edge listen preppy look. >> that's over. never in in australia, but it's over. >> you don't have new england. >> that's very true. taz mania is a big look for us. their target on urban outfitters is 48 bucks, about 30%y urban outfitters is trading now. so oner lick coming to the rescue, if you will. there you go. positive call.
it's about 20% above the current price, the average target is just 66 bucks, so they're out there being a little more aggressive on first solar than other firms, but keep in mind this was a $180 stock back in early 2011. >> our under the radar name of the day is icu medical. what do they do? they're a developer of medical technologies, as you might get from the name. upgraded. >> and ray jay believes that icui, that's their ticker, the remargins will rebound next year, and pump sales should stabilize. five analysts cover the name. from street talk to talking numbers. let's talk not about a stock today. that's normally what we do. let's talk about 100 stocks. is it setting up for a fall? let's welcome in matt mailie.
and matt, your note this morning is why we're doing this segment. you noted in the middle of your morning note, it looks like there's a head and shoulders pattern, for the uninitiated, that's generally not good, is it? >> no, because the market -- any mark or surges stock, when you make a series of higher highs, and higher lows, it's very positive. then you can get the right showd a lower high, and then if you break the neckline it gives you a lower low, so that can be very concerning. the right shoulder is just beginning to form, but with the weakness in the semiconductor shot, which has been a good leader for many, many years, that makes me think there's a good chance we will test that neckline sometime in the next week or two. >> we have the nasdaq 100 already up by about 9%.
andrew, do you see much more up side from here? how is it looking? >> overall we're still bullish on the market. you know, it's paid to buy the pullbacks, so we're still buying the pullbacks so, you know, fundamentally we like tech, it's a good sector, we like large cap over small cap. we think nasdaq 100 is a good way to play it. one of the constituent things, it's actually so 3 names, not 100, so three extra for your money there. >> we always try to get 3% extra on "street signs." that's our motto. "street signs", where we give you 3% more than you expected. >> next year we're going to upthat. always aiming to please here. be sure to check out the online edition of talking numbers. i give 99% on that show every day. >> nuance communication getting hit hard.
they posted revenues, and there seems to be some recurring factors the last few years. let's bring in herb greenberg. editor of reality check and cnbc contributor, what are these recurring factors, sir? >> this is so front and center. it comes down to this is an issue this is a company for years has said it's transitioning to recurring revenue model. every quarter the company says, you know, we're not doing as well, because the recurring model is still in transition, this is a roll-up. this has always been a roll-up. it makes growth through acquisitions. on the last earnings call yesterday, ceo paul richie said something i thought was very interesting. you didn't get. that's the point here. these companies ultimately have
to grow on their own. internal growth without acquisitions at nuance, it just isn't there. it's getting a little better, but when you compare it on aier when it was really because, it's still negative. this was originally a red flag on my watch list. it's now a yellow flag. except carl icahn is there. and when someone like icahn is there, you just don't know what is going to happen. the company made two comments. they used the term shareholders value. we're going to do something for shareholder value. for that reason you sit back and say there's risk this would go lower, but what lever are they going to pull here? >> we're waiting to see what lever they can put. whether or not it gets a little better or a whole lot better. >> we missed revenue, because we didn't make enough revenue. >> what the heck? >> yellow flag, nuanced
communication, thank you very much. herb. and the real reason the labor market isn't improving fast enough. we'll be -- to get the real state of the economy, the real pulse check from the ground. after a year-long honeymoon, the love already starting to fade a bit to the tesla model s. we'll explain why we say that, coming up. tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions. tdd#: 1-800-345-2550 you read this. watch that. tdd#: 1-800-345-2550 you look for what's next. tdd#: 1-800-345-2550 at schwab, we can help turn inspiration into action tdd#: 1-800-345-2550 boost your trading iq with the help of tdd#: 1-800-345-2550 our live online workshops tdd#: 1-800-345-2550 like identifying market trends. tdd#: 1-800-345-2550 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how. tdd#: 1-800-345-2550 sharpen your instincts with market insight from schwab
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three of our favorite things are coming up on "closing bell" -- pisa, candy, and kellie evans. >> i feel like there's an insult coming. >> that hurts. that hurts. >> everything he says is genuine. >> you're my peoples -- that's not true. >> we do, guys. only one of them is actually food. that's domino's pizza. candy crush reports earnings at about 4:00 also whether you
would trade higher pay for a better 401(k) match. i don't know how the two of you feel about this, but a lot of my friends never had a 401(k) match when they started owl out and they've fallen behind to where they might otherwise have been. reviewing the tesla model s. the results were really not good. give us the dirty details, phil. they're very clear in saying it was a nice vehicle. they loved the feel of t they loved everything about it except for the problems that occasionally we are popping up. they called them minor quirks, a number of them. they said in the year of owning the model s, it developed a number of minor problems.
here's an example. you look at the door handle for the model s, it's flush inside the door, when you press on it it's supposed to come open. it didn't always happen for "consumer reports." they notified an over the air software update, the door then opened up. these are not major problems. still when we talk to "consumer reports" about their year of ownership, they made it clear that the little annoyances could certainly build up over time. >> whether or not it's a big or small problem, it's an inconvenient. as many cars as you can buy that are problem-free, so it will be interesting with tesla as the time goes on. >> tesla did honor the warranty. we contacted tesla about the review from "consumers reports." it said we take this top of mind and strive to go above and beyond the expected level of service.
so the bottom line is this, mandy and brian overall a lot of problems popped up but they were minor. that's what "consumer reports" saw from its one-year ownership of the model s. thank you very much. edmunds also out with a less than glowing review. they call it technologically brilliant luxury sedan, but problems with the car makes it hard to recommend. ed, i think the tesla is spectacular-looking, technological marvel as well, but when i hear edmunds talk about drive train issues that is nerve-racking. >> we had a couple instances where -- well, one in particular we were left stranded to where we had to have the car flatbedded back to the service
center, those are the issues that we look at and say that would give just about anybody pause to have this as their daily driver. it wasn't a very common issue, most of the issues we had like "consumer reports" were minor, but there were a lot of them. a car that we paid over $100,000 for, that's going to be a problem. >> no kidding. someone i know quite well, who was going to buy a tesla has decided not to buy a tesla after reading some of your outcomes and your results and your findings. if the car dies on the side of the road, how can you possibly pay that amount of money for that kind of car if that is a potential thing that could happen to you, ed. >> yeah, and it's also worth considering the fact there are a lot fewer service centers nearby. we were lucky enough to have one very close to where our offices are, so these small problems didn't turn into very big problems, but if you're far away from somewhere that can service the car, you have that issue of just getting to a service center to fix a small problem.
you know, these kinds of things are individual buyers will have to weigh on their own. >> i want to be clear, too, because we're talking about the car, we're not talking about the stock. tesla technology is in fact going into the new versions of the mercedes. have you had a chance to review enough electric mercedes or any other electric cars? i'll defend tesla a bit. who doesn't expect growing pains? >> well, we've had several electric cars prior to the tesla. none of them have had this number of issues, in terms of a year-long test. we've had some minor issues as well with some of our electric cars, but this one was certainly basically to the point where we start questions whether someone a normal buyer would actually want to put up with this many issues, whereas the few electric cars we had before, it was nowhere near that amount. >> lofty goals, i know elon musk wanted to work towards the goals of a car that never needs to be
serviced. they a ways to go. >> i'll take some heat for it. electric cars right now are primarily third cars for rich people. that's it. i'm sorry. if you need a car every day -- >> the reliability needs to be 100% if you've got a commuter car into a big report offering more reason for economic optimism, but are big owners feels the hope-ium? >> plus, plus, plus we want to again remember the incredible career of robin williams. he was best known for his comedy, but it was also scenes like this in the drama "goodwill hunting" which owned him his only oscar, amazing and hard to believe. >> i'm not kidding you, will. that's why i'm not talking about a girl at some bar 20 years ago and how i regretted not talking to her. i don't regret the 18 years i was married to nancy, the six years to give up counseling when he got sick and i don't regret the last years when she got
really sick. i sure as hell don't regret missing a damn game. but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device, up to the cloud it goes, back down it comes, sounding better. we break down the walls of creation and we give music creation for the masses. ♪ ♪ unlock the creativity in anyone. with the ibm cloud. the ibm cloud is the cloud for business.
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driving the hopium? let's check in with our small business roundtable. drew greenblatt, and a.j. martin. drew, let's start with you. i see that you're hiring. how many people are you hiring and are you able to find the skilled workers that you need? >> we're very optimistic. we're very bullish. we think the economy's coming back. we're like the canary in the coal mine. when people start buying big washing machines and $4 million cleaning systems for their precision parts, people buy the baskets from us. so, we're seeing nice upticks in capital expenditures from entities like pharmaceutical, medical, as well as automotive. a lot of automotive action's going on out there. so, we're hiring people. we're trying to keep up with the demand. it's a very exciting time at marlin. we just had our best six months
not only with revenue, but with profit, and to keep up with demand, we hired five people, a shipper, a machinist, several robot operators, a mechanical engineer from the university of maryland, and our biggest investment ever. we bought our biggest welder, our most expensive robot ever in july. >> i do want to get on to the robot part, but i want to back up to the second part of my original question here, drew, and that is, are you finding the skilled workers that you need? because part of the findings were that it was difficult to get qualified applicants for open positions, i think like 42% said it was hard to get the skilled workers they needed. >> you're spot on. you nailed it. this is a big challenge for american manufacturing right now. there's a massive skills gap where we have needs for very talented people that could understand a blueprint, you know, understand what a tangent is or a radiei so they can make
a great part. however, those people are not being pumped out of our high schools these days and we need that talent, and that's a big mismatch. our schools have to step up and provide these kinds of people for us. that's going to slow down the recovery and slow down the economy's big pickup. there's over 600,000 manufacturing jobs right now that are open, and it's a shame, because these are good paying jobs. the average manufacturing job in america is $77,000 a year. that includes benefits. these are good middle class jobs that we need to fill. >> drew, thank you very much. move on to david martin of h.j. martin & son. hey, david, you are very leveraged in your firm to commercial real estate, retail, et cetera. how are you seeing the economy right now? >> it's very strong. we're very busy right now. weatherwise, it was a tough winter for us, so that pushed schedules back in spring and summer, and now we're meeting those schedules and executing as a team.
but like the previous person was saying, installationwise, we're seeing a lot of workers that need to be filled in the trades as well because a lot of people left during the recession. >> are you able to interview people and just not get them to be able to take the job, or are you interviewing them and saying these people are not able to take the job? >> our core team is pretty strong, so my father and i made the commitment that during the recession, we would take jobs for less margin so we were able to service the customer when everything came back. but right now we're trying to extend ourselves nationally, and hiring is very hard right now to meet the demand in summer. >> is that -- you know, some people say that's because firms need to do more to help the skill set. it can't be the government's job. is h.j. -- what are you guys at h.j. martin doing to help people get the skills? if you've been off work for a year, you can't blame somebody for losing basic skills that they might need. >> correct. we partnered with nwtc, a local
tech school, and a lot of our installers go through that training along with dale carnegie for the soft skills needed in an open remodel setting. so, we structure it our own, like you said, because we don't rely on the government for our business. >> david it was a real pleasure. i want to note here, mandy, david was a great guy. you know why he was on the show? i was in green bay and i needed caulk. literally. that's the caulk noise. >> caulk, yeah. >> and i walked into his retail store, not knowing they had a multihundred million dollar business and we ended up chatting. >> you're the guy from cnbc! >> david, so thank you. good luck to the packers, by the way. one more enduring example of the late great robin williams' talent. his turn as the voice of the genie in "alladin." >> oh, all of ya, come over here. big group hug, group hug. do you mind if i kiss the monkey? mwah! oh, hairball. well, i can't do any more damage
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the worst company this month, a company that did do a deal, walgreen. best 21st century, worst walgreen. does that mean anything? probably not, but i found it interesting. >> it is interesting. and thank you very much for watching street signs. >> "closing bell" with dominos ceo and kelly evans, who we don't like anymore. back after this. i think we've got to send some pizza the way of the "street signs" team. welcome to the "closing bell." i am kelly evans down here at the new york stock exchange. >> pizza or an ice bucket, one or the other. i'm tyler mathsen in today for bill griffeth. welcome, everybody. it's a day where the market can't seem to make up its mind. it feels, kelly, like a real august day. we'll take you through the final hour, along with these stories. a convoy of russian trucks, are they carrying aid or arms? unmarked trucks. the world and the markets want to know t. the situation in ukraine