Skip to main content

tv   Power Lunch  CNBC  April 27, 2022 2:00pm-3:00pm EDT

2:00 pm
as you think arms can be a fixed rate for five, eight, ten years and we have seen it double over the past three months and that's huge people are looking for a lower rate and the rate on an arm is looking at well over 5% for the 30-year fixed. again, those loans are not as risky as they used to be and they are a good option and if they'll stay in your home for five to ten years. >> that does it for u everybody. "power lunch" starts right now ♪ ♪ ♪ good afternoon, everyone welcome to "power lunch. i'm tyler mathson. here's what's going on on this week day we are tracking the technicals, uncovering value and finding oversold stocks that have the potential these days to rally. plus, the power player tillman
2:01 pm
fertitta, he's back and the multibillion empire includes restaurant, hotels, casinos giving him a unique view of the consumer of rising cost, of labor, the vital component of the economy's health and we'll have an in-depth interview with mr. fertitta later >> hi, everybody we saw the dow a moment ago off session highs. we were around 420 at those levels and pretty even across the major averages after yeste yesterdayary after these really awful session. microsoft is long those results after the bell last night really changed sentiment. you can see the shares up almost 7% today that is certainly uponihelping dow, and it's offsetting the damage from boeing which is the worst performing dow stock today and one of the worst in the s&p after an earnings miss and a report investors are very unhappy about.
2:02 pm
boeing shares down 8.5%, ty. >> that's a day for seattle companies or seattle area companies. the s&p down more than 11% so far this year. the index'sforward p-e ratio has fallen from above 21.5 in january to below 18 today. that could make some stocks look attractive if you're hunting for value, but the key is to avoid the so-called value traps. let's bring in sarat setting sethi. let's give the viewer an idea of what's the difference between a true value stock one selling below its intrinsic value and a value trap that may be selling at a low price because it deserve a low price. >> right you have to parse it in a couple of different ways. one is -- the easiest way is to look at the balance sheet.
2:03 pm
value balance sheets start to deteriorate because they are less than what you expect. we have cyclical industries and they can end up as value traps because the business itself is deteriorating and margins are coming down and what investors had basic be basically forecast and they did not take into account the the higher interest rate costs and then you see a multiple contraction and some of those stocks, tyler, end up with high p-es. that's because their earnings keep on decelerating and the stock price is higher than the earnings. >> is higher than the earnings so look at the cash flows, what's happening there look at the margins and what's happening there. can you name for me today, and i'm not asking you to be mr. nasty here because that would be the furthest from your personality, can you name for me today a couple of stocks that
2:04 pm
are in that category that are not value play, but value traps? >> i would look at a couple of the stocks that we talked about before, but more of the stay-at-home stocks. opposite of that, the companies like a peloton peloton has really become a value trap in the sense that where are the margins going to go are they going to be deteriorating? what are the cash flows going to be of this business and the multiple used to be price to sales and now it's still price to sales, but investors are demanding cash flow. they're demanding earnings and they're demanding really free cash flow at this point. so i would look at companies like that that two years ago the extrapolation of earnings was so high that today it's kind of like how are we slowing down the deceleration >> interesting some of the stay at home stocks, classic example there being peloton. all right. we've gofr are covered the ones
2:05 pm
be value traps and the ones that are knocked down and may have potential to move back up as people focus on some of the fundamentals what are they? some names >> look at general motors last night. what did they say? our forecast for this year will be $7 billion to $9 billion of free cash flow here's a company if investors are fearful of a downturn they are forecasting a real cash flow business and they're talking even in the $13 billion business and the thing about gm is they have a strong balance sheet. tyler, one of the things they've done is they kept the cash and they're reinvesting back in the business and they're reinvesting into two parts of the business and one is the current business and the next is the ev business that they expect over time to produce over the next two years and you've got a company that's investing in the future and has current cash flow business and is trading at six times earnings and this was a stock that was $60 and it is now 40 and
2:06 pm
expected to earn close to $7 this year and they're forecasting that things aren't that bad the key to the stock tyler in a slowdown compared to what we had before is what is the discipline of a gm and the other auto companies? we've seen that in the airlines and that's yet airlines had rebounded and we need to see that in the other companies so that when things actually stabilize and they catch up to all of the supply chain issue, will they go out and produce as many cars as they can or will they then say we will produce as many cars as we can at a profitable margin similar to what the airlines are doing this summer >> i want to get a quick thought in because i don't want to lose out on your other choice which is cvs for me, is it a retailer is it a health care stock, which is it? and how do you price it and why do you think it's a good value >> so 12 times earnings, $40 billion of cash flow coming down they delevered and they're doing the opposite of a value trap they're getting to the stage where cash flow will be growing
2:07 pm
opinion i think it's a combination of the health care multiple and companies like etna or companies like united health at 22 times. they're trading at 12 times plus, you have a re-opening play people will go visit the labs and the doctors and they'll get their things so a combination of those two and they're cutting down their stores and 10% of their stores will be decommissioned this year again, 12 times earnings and the market's down to 18 and it can come down some more and you want companies promoting cash flow and single digits this year and double digits the year after i like the story along with a nice, growing dividend. >> sarat, you are always all over it. sarat sethi, thank you >> thank you. let's turn to the charts suggesting the nasdaq 100 is reaching some critical territory. the index is rallying today, but it is down 10% this month and our next guest says the trend could get worse before it gets
2:08 pm
better let's bring in bell garj ul on good to see you, bill. how much worse, do you think >> kelly, when you take a step back and you look at the key timeframe and it's the rally off the march 2020 lows and this is when risk assets around the world bottomed, and you look at something like the nasdaq 100, it was the key mover and driver on the way up and it's been the one that's been most disappointing on the way down and now it's at a point where you really need to get back above minimally 13,500 in the next week or so. maybe you give it to the end of the fed meeting of may 3 and may 4, but the bottom line is that the nasdaq 100 has to rally pronto to just sit here isn't good enough the onus is on the bulls to move the market higher, otherwise, we will have another big move to the down side, to the mid range and the whole rally off the march 2020 lows which comes in around 11,800. >> 11,800 and we're talking
2:09 pm
around another 1300 point decline or so in the nasdaq so you want to see a rip roaring, a pretty strong rebound in the pretty near-term to upon the scenario >> you could make the same argument with a number of major indices and starts it looks like today today -- it looks like a decent day today because you're getting a bump to the upside, but this isn't good enough like i said, minimally, i want to see the nasdaq 100 back above 13,500 in the next week. i don't feel like you can breathe a sigh of relief until it's up around 14,000. to just sit here really just further entrenches the trend which is still to the down side. >> the s&p 500 chart, you think, looks better with some of the same dynamic playing out here? >> absolutely, kelly
2:10 pm
i wrote my notes that i expected the s&p to bounce. you bottomed around 4100 and it's the fed 24 lows and i'm not surprised at all that the market is moving higher and 40 and 50 points doesn't do it and you have to get back in the s&p around 4450 and 4400 before you can step back and see the market is okay. to sit here in the 4100 area seems that it will go lower and where does the next stop take you? >> the objective from the january highs will take you around 3950 and 3900 >> just to close things out here your view of apple is reminiscent of all of this thinking it basically hit your target at the highs and you in it's me reverting back to fair value which is $12 below current levels >> yeah. i mean, look apple has followed our path almost perfectly and you hit the target off the march 2020 lows
2:11 pm
which is the key driver in the u.s. equity markets up around 180. now it's in a mean reversion mode and that can take you all of the way down to 135, 120, and so i still don't think that that's down on the down side either >> all right we will leave it there bill, thanks so much we'll leave it there >> my pleasure. >> bill strazulo visa shares and the recovery in travel spending and riefral paypal on deck its stock is higher today, but down 72% from its 52-week high actually, paypal has turned negative our top analyst will tell you where to find opportunities in the payment space, plus, three battered stocks in the nasdaq 100 that could be set to rally a trader will name names later this hours and as we head to break a look at the bounceback in some chinese internet names including -- i just love saying this one, pin duo duo, alibaba
2:12 pm
and baidu. ♪ ♪ your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.
2:13 pm
2:14 pm
as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ welcome back to "power lunch. paypal set to report with the stock down 70% off of its highs and take a look at the older payment name, the visa, mastercard, amex of the world, they're outperforming the paypals of the world and is it
2:15 pm
out with the old -- no, i should say, is it out with the new and in with the old? lisa with moff at nathanson. you say you like these three networks, kind of in one, two, three order here for the first time in years. why? >> yeah. that's right it never happened before we had lined up, visa, mastercard, amex, one, two, three. that is primarily driven by the recovery in travel and that's what threw visa's bigbeat last night to give a sense for it pre-pandemic international travel was almost a quarter of revenues for these three networks and for visa it's still only about 15% so there is significant upside still to come to revenues as travel remixes back into the business and the key thing is those are revenues that come in at nearly 100% incremental margins and so they flow straight through to the bottom line and that affects visa, mastercard and amex. it's one of the cleanest, positive catalysts we've ever
2:16 pm
seen for these stocks. in addition, they also on the margin benefit from inflation because their revenues are tied to the dollar value of payments and they're good stocks to own in a rising rate environment particularly amex because they've got net income balance sheet exposure. >> sure. on the flipside of things let's talk about paypal which has been breathtakingly bad and people are wondering what's going on with -- is it an execution story with venmo, anecdotally? i have people telling me to zell them now we know what cash app did to make inroads there so is it a business model story or is it macro headwinds that have taken the rival block which has taken it up a similar amount i know you don't cover robinhood, but that stock in single digits yesterday. >> yeah. the reality is for paypal it's both, frankly. this whole group is definitely in the, you know, fallen angels
2:17 pm
category these were stocks that were huge during the pandemic. the business got a big boost from people being stuck at home buying things online, et cetera, and you know, and we're seeing the natural kind of trailing off of that growth across the whole group. in addition, of course, in a rising rate environment these are high multiple stocks in the terminal value so when you're in an uncertain rising rate environment they're difficult stocks to own, period. paypal has a bit of its own goal going on they've had pretty significant execution issues over the last six to eight months and more recently, the cfo announced that he's departing the company to go to walmart, so there are deck chairs moving at the senior levels and investors are sitting on sidelines waiting to see what the new leadership team will do coming in and also, you know, how they're going to re-invigorate the growth of paypal and start executing better s venmo is a great example where
2:18 pm
they've got great assets and haven't been able to drive the business performance that we expect >> what are those execution issues and my sense as an old guy is that venmo was the hot new thing a year or two agoand has it lost its edge and if so, why? >> paypal has had a bit of a chronic problem with being really good at strategy and getting initiatives off the ground, but then sort of losing them when they get to about the 34-yard line and not pushing them all of the way through. venmo is a great example fantastic asset and wildly popular brand and yet they have struggled to monetize it in the same way rival cash app has been able to monetize the product in addition, paypal has these prominent promising partnerships with international firms like mercado libre and yet the international business has been the weak of the part of the business over the last couple of
2:19 pm
quarters >> it was stuck in the mud, sounds like. >> exactly lisa, thank you so much for your time today appreciate the insights. >> thanks, tyler thanks, kelly. >> you got it. lisaelis we have a market flash for you with beyond meat as a mcdonald's executive announce es the m.c. plant burger is a new item shares of beyond meat are currently up nearly $6 they took it away there -- >> it was moving higher as you spoke. >> plant burgers are a big deal. it's the best possible scenario for some of these companies to land a big contract like that. we've seen efforts with dunkin that haven't always necessarily panned out so beyond meat shares are still at, what a little bit below 40 and their high was 200, and there's absolutely been a reset and it couldn't have come at a better time for beleaguered investors
2:20 pm
>> caterpillar set to report results in a week of lots of numbers and industrial rival ge promoting serious inflation pressures, could cat face the same clause. we'll take a look at the nasdaq 100 names with serious potential upside and we celebrate financial literacy month did you know that? featuring some of the cnbc contributors and here is cnbc contributor anna valdez on how source of growth can empower ideas. ♪ ♪ >> my journey through financial literacy started when i arrived here i came from mexico city. i was born and raised there. i studied there. i realized coming into this fabulous country that there were possibilities of growing my business through, you know, access to capital from banks all of the way to vcs and all of these sources of growth that could empower a fantastic idea that probably wouldn't have happened in another country. that was my journey from mexico
2:21 pm
city all of the way to here becoming an entrepreneur and becoming financially literate.
2:22 pm
(driver) conventional thinking would say verizon has the largest and fastest 5g network. but, they don't.
2:23 pm
they only cover select cities with 5g. and with coverage of over 96% of interstate highway miles, they've got us covered.
2:24 pm
welcome back to "power lunch. i'm dominic chu. we want to bring you a market flash on mcrshares and on pace for over two years trading at its lowest level since december of 2020. that company provides paymentech techs for businesses and a reported quarterly earnings that came in under expect eggs and it slashed its guidance for the full year, as well and the results can serve as a microcosm, if you will, for the current economic situation globally with ceomichael hayford attributing the disappointing results to high inflation, rising interest rates and the war in ukraine and the spread of the omicron variant. even as the company saw revenue growth in key segments it wasn't enough to fend off the macro issues tyler, kelly, i remember when it was national cash register >> back over to you. >> let's go now to bertha coombs for a cnbc news update. tyler, here's what's happening at this hour
2:25 pm
lawyers for the parkland school sheeter want the judge to end the penalty trial if she dismissis 100 potential jurors from the jury pool nicholas cruz would get life without parole it could get started because of errors she made during juror questioning. dr. anthony fauci says the u.s. is out of the pandemic phase of covid infections and hospitalizations he told "the washington post" america is transitioning to a period of slower covid spread as the disease becomes endemic. microsoft says russian government hackers have carried out doenzs of attacks against ukraine. the hacks began more than a year ago and may have laid the groundwork for russian military operations in ukraine. become over to you, kelly. >> bertha, thank you very much let's get another check of shares of beyond meat which are halted on volatility as tyler mentioned a moment ago the stock was soaring on the
2:26 pm
back of news that the mcplant burger will become a permanent product, and it's a beyond meat product. the shares re-opened at 25% on the session. about a $9 pop here to $45 and change with a major positive catalyst for bynd. ahead on "power lunch," we've seen how markets are reacting to growing inflation and economic uncertainty, but what about consumers are businesses seeing any signs yet of a slowdown? tillman fertitta owns restaurants, hotels and casinos jnss xtithe country heoi une wh his view on the economy ng ultra! with 5g ultra wideband in many more cities, you get up to 10x the speed at no extra cost. plus six premium entertainment subscriptions, included! like disney+, music, gaming, and more! (mom) delightful. (vo) saving you over $350 dollars a year. and for a limited time get a 5g phone on us! no trade-in required. (mom) amazing. (vo) this is the offer you just can't miss!
2:27 pm
verizon is going ultra, so you can get more. when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade
2:28 pm
my fellow xfinity customers. aren't just made for traders -they're made by them. hi tim. the biggest week in entertainment is almost here. watchathon week presented by xfinity rewards. with free access to stranger things from netflix. the boys from prime video. hbo max, starz, and peacock. just say watchathon into your voice remote and get ready to watch. i love you. i love you. i love you all. there are lots of choices when it comes to your internet and technology needs. but when you choose comcast business internet, you choose the largest, fastest reliable network.
2:29 pm
you choose advanced security. and you choose fiber solutions with speeds up to 10 gigs available to more small businesses than any other provider. the choice is clear: get unbeatable business solutions from the most innovative company. get a great deal on this limited time price with internet and voice for just $49.99 a month for 24 months with a 2-year price guarantee. call today. what goes down must come up and today it must go up 314 points on the dow. we have 90 minutes left on the trading day. let's get you caught up on the markets, stocks, bond, commodities and a look at the state of the economy with tillman fertitta let's begin with bob pisani and the rebound. magically, he appears behind me, bob. >> tyler, all i have to say is thank heavens for microsoft and visa microsoft far and away the
2:30 pm
earnings report of the week. apple coming up shortly. there's microsoft helping turn things around. revenues beat, guidance was okay cloud was strong right across the board strong consumers are looking great. that's what essentially the takeaway from visa and both of them, you put them together and they're 200 points on the dow just those two stocks and alphabet not in there and missing on revenues and google advertising was below that and we're not far from a 52-week low on that, but a lot of damage has been done. there are a lot of big-cap stocks that are at 52-week lows. boeing's there and that's killing the dow for 100 points and verizon is terrible and straight down. j.p. morgan, the big money center banks are down and they're one of the worst perfor performers and down 20% on the year although flattish today. same time, no break for cathie woods. most of her stocks are at 52-week lows and unity software, roku, shop pify, twilio.
2:31 pm
the things they have in common is they either don't make money or they have very, very high multiples and very little money, actually and that's what the new low is for them include snoops as for the s&p, we're well off of the lows and we essentially went right at the closing arch 8th and that was 4171 and we were right at it and a few points above that and as you can see that's 40 point away and tyler, we break through that and mentally, a lot of people will be in a bear market. >> thank you very much let's go to the bond market where yields are looking for direction as inflation and growth concerns linger rick santelli is tracking the action for us, rick? >> yes, tyler. yields are up today, but as you look at a one-week chart of fives, you can see they've drifted lower and they've drifted off the low-yield basis and all maturities and i will draw your attention, we are
2:32 pm
hovering right around 280. we had a very iffy auction of 49 billion of those five years and the high yield closes 298 and you can see how much we've drifted. if we look at a month to date and it closed at the end of last month at 234 and if you open the chart up and the high-yield close was the 19th of april and it tried to go to 3% and we closed at 2.94% and that was the highest yield close since 2018 and even though we drifted a bit, the amounts are small if you look at the big action today, it's actually foreign exchange the dollar is definitely king in the moment and look at the dollar on pace for its fifth lowest close and it represents close to 58% of the dollar index and you can see it's going back to march 17 before you find a lower close and remember, it's been since december of 2002 since we've traded parity and
2:33 pm
many believe that could happen and finally, the reverse side of this is the strength in the dollar look at this chart if we stay above the middle of the chart those highs from march 2020 right around 102.80 and we're above that now and will be the highest close for the greenback since early 2017 wow! kelly, back to you >> that's a great story. rick, i'll pick it up. thanks very much. the energy complex closing up for the day and huge moves in russia's nat gas space as russia halts gas to bulgaria and poland pippa stephens >> hey, pip. >> russia is weaponizing energy by turning off the taps. gazprom says it will be halted to poland and bulgaria until it makes payments in rubles storage is 80% full and this is the first step and consequences would be much more severe if russia cut off countries like germany or italy it spiked 20% at one point
2:34 pm
before pulling back to 108 euros per mega-watt hour putting that move in u.s. terms at the high those prices were equivalent to $40 per mnbtu. ursula von der leyen called it to blackmail the eu with gas shy iterated it is determined to move away from dependence from russia as soon as possible here in the u.s., nat gas prices are also jumping up more than 3% and crossing above $7, producers in lng names like eqt and range resources are all rising the more muted the move for oil which is slightly negative here with wti at 101.71 tyler, back to you >> pip a thank you very much let's turn to inflation. labor and supply shortages and all of the perfect storm for travel and leisure companies and with demand soaring, can the leisure and enter tanlt industry keep up with higher demand
2:35 pm
for a power play view of the industry let's bring in fertitta entertainment chairman, this say power lunch exclusive. we've been missing you i know you've been busy. welcome back >> it's great to be back i just haven't had a lot to talk about, tyler it's good to be back today >> let's talk about a couple of things i remember about this time two years ago you said that you thought that the economic recovery would be a 2022 phenomenon you're looking in your business, you're looking pretty prescient on that. is that what you are seeing now in hotel, in restaurants in live events >> business is very good, tyler, but it even got good at the end of last year and of the world came back just like we thought it would, but it even came back better, but where the consumer is outspending money in all
2:36 pm
aspect, hotels, casinos, conce concerts and sporting events and it's good and it's just the costs are up and it's been better in some places. here's a definition if you take the east coast and the west coast, same-store sales are still down 10% because the lockdowns for so long has changed people's habits where in the rest of the country from the south to the north to the midwest you're up right now 7% to 8%. so business is good, but it's just lagging on where the lockdowns were the hardest on the east and the west. >> i think -- i think you're exactly right, and i obviously, all roads lead to me, but i think that people in the new york area got into the habit of going out. they'restill a little gun shy, but it's coming back it really is let's talk about inflation and it cuts in two del tirious ways
2:37 pm
to an entrepreneur like you. one, it rises import costs and food costs and rents and labor costs and so forth, and for the consumer, everything gets more expensive and you go to a steakhouse now and we're coming close, close, close to the $100 stake because your input costs are much higher. this is what people have to understand, please forgive your neighborhood restaurant or wherever you go for two reasons and i'll join a cheat sheet like our president does, but for '19, beef is up 30%, pork is up 30. king crab is up 100% lobster, 50, fish, 30, schrifrm, 10 and grains are 120% and hourly labor is up almost 20%, and we don't have the hourly labor that we need. so usually when a waiter had two
2:38 pm
tables or three tables now they have four or five, so i feel sorry for the consumer that they're paying a lot more and they're probable not getting as great a service, but it is what it is, and it's nothing that your neighborhood restaurant can solve for you, and so please be patient with them, because it is expensive. people still say, i can spend less when i go to a restaurant because if i go to the grocery store i end up buying so much more and i'm shocked we hear that all of the time >> it's true i went and tried to buy a couple of steak, not big ones and it was $24 for two little small ribeyes. they were delicious, by the way, but whatever so do you think -- >> and we're not cooking them for you, see >> no. i'm cooking them on my own grill, my overpriced oven with the million dollar renovation. at any rate, let me ask you, do you think these higher prices are here to stay
2:39 pm
>> tyler, i've never seen when prices hit you always have items that spike every year from lumber to seafood, to whatever, oil, but if it stops staying flat from a six-month period to a nine-month period and then it tends to stay no, i do not see a lot of your proteins coming down drastically. the bipgest that i've ever seen and i've been around a long time, but it's never going back to where it was in '19 i'm hoping that we can get back down into the ten to 25% range, but you've basically priced king crab out of the market where nobody can afford to buy it and you've got to see certain item comes down and it is ridiculous
2:40 pm
what a steak costs us today even at the grocery store. >> let's turn to a couple of items that bear on your business more directly ask one is the sale of golden nugget online gaming to draftkings a deal that you announced last august is that transaction on pace to close and it was supposed to be an all-stock deal and given the fact that draft kings' stock is off substantially since last august. have you had to renegotiate the terms and will you close it before '31 and will you get a billion and a half out of it >> well, it was done as an exchange ratio and so we are getting the same amount of share, but think, it's not the -- the value isn't a billion and a half dollars anymore it's not just draft kings. if you look at every other online gaming company out there
2:41 pm
it's universal even if golden nugget online gaming would rnn't be trading because of the exchange ratio, we would probably be somewhere approximately where we are today also so you know, it is what it is and i look at this as a long term hold and i will be one of the largest shareholders of draft kings and i think it's one of those stocks because it's a tech company you've got to remember that. it is on it's technology, and you're going to look up and it's going to be just like an amazon or a tesla or one of these other tech stocks that you're going to look back to $50 to $100 in the next if you years. when you turn the corner like all tech companies and become profitable, they become real profitable and i saw that myself operating going golden nugget online gaming. i love that they'll be funding
2:42 pm
the losses for the next few years. >> that sounds good. get someone else to fund the losses let's talk a little bit about the spac deal that you -- you characterize it. i would say you walked away from -- you have been remarkable at the number of times you've been public and private and public and that was yet another way to go public again why do you think the company is better staying private what happened there? you had to pay a million dollar break-up fee, as i understand it -- as i understand it would you ever again consider taking these businesses private through a spac walk us through what happened and why you made the decision you did. >>. >> it was a lot of different decisions, and you've got to remember when i decided to take the company public again it was
2:43 pm
in the midst of the pandemic and as we came out of the pandemic, and there's a lot of different reasons and it was going to be a controlled company that i owned 70% of the stock of and you know, i even think you get excited or saying, gosh, you can see you will own 380 million shares and you get caught up in it, but also the business changed and our business got better and you sit there and you think i'm one of the few people in the country that own 100% of a company that will do a billion dollars in ebitda, and you know, you just start talking to family members and i had an opportunity to get out and you start looking at all of the regulations and the new filings and who will be on your board and who will not be on your board and are you doing this and are you doing that the government is into running
2:44 pm
companies that they shouldn't be doing today and tell you how to operate your companies >> public companies. public companies. >> yeah, but even as a huge, private company, but so what a public company is made up of shareholders of americans, okay? and i still don't think the government as long as you're following all of the rules that you should be doing to protect the shareholder, i don't believe that we should be so much into social issues and we have to make as much money as we can and that's what capitalism is all about and doing the right thing and being charitable and being a diversified company and we try to do all of those things as a private company and i would have done it as a private company, but at the same time, the main reason was it was a different time and like i said, you have a
2:45 pm
company that's going to do a billion dollars in ebitda and you own it, why go share it with the public just keep it yourself. >> yeah. you've taken on a fair amount of debt, as i understand it what does higher interest rates mean to your -- your cash position, your carrying costs of that debt, really quick. >> well, i mean, it definitely has an effect and we are an extremely liquid company, but if you're not going have shareholders and you want to grow, you have to do it through debt and through your own equity. >> right >> so a private company that's growing is going to always carry more debt than a public company because you're not out there selling shares. >> right right. >> but we're -- we have debt, but we have a tremendous amount of cash flow and we have a tremendous amount of cash on our balance sheet. >> yeah. >> and we're out there right now looking for big deals to do. >> you've got to get your capital from somewhere and as a
2:46 pm
private company, that may be the debt market. next time you come back i want to talk to you -- let's make a deal here. let's have a conversation about the role, the appropriate role of companies, public or private, like disney, in speaking out on contentious social issues because i know you'll be interesting on it. tillman fertitta, we'll make a date thanks so much, my friend. >> thanks, guys. appreciate it. >> we have a market flash on beyond meat which has had a volatile hour. kate rogers has more for us. kate >> hi, kelly, and the stock initially halted and then rallying on that fast company headline we're getting an update from the mcdonald's side saying the headline was misconstrued. the mcplant has been a part of the global core menu lineup since november 2020 for markets to pull down if they choose to there are no new updates in the u.s. meaning a permanent menu
2:47 pm
addition in the u.s. is not being announced and that headline was misconstrued there and this came from a conversation with ethan brown and morgan flatly talking about the future of the partnership there and flatly seemingly announcing that they were confident in the future of both beyond and mcdonald's working together and the overseas success of the plant and not saying that it was going to be a permanent fixture in the united states and beyond meat's stock has taken a beating and then valued on those head luns and analyst his talked about a tepid franchisee reaction to the plant saying that a national rollout was likely not imminent. definite li definitely a story to watch. back over to you. >> they were up 25% on the hopes and they were up about 5% right now so they've come back down although not entirely. they're back to 37 and change.
2:48 pm
coming up, other beaten-down nasdaq 100 stocks that could be ready to rally our traders has some nesam to name in today's three-stock lunch. ♪ ♪ the ground she walks on. or in this case, stands on. the new anti-fatigue comfortmat from weathertech is a gift she'll appreciate all year round. it makes standing comfortable in the home or office and comes in a variety of colors and finishes. and for mom's vehicle, there's cupfone, floorliner, cargoliner, and seat protector. show mom that she deserves the best with an american made gift from weathertech. mom's gonna love this! happy mother's day from weathertech.
2:49 pm
at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.
2:50 pm
♪ ♪ i came, i saw, i conquered. (all): hail, caesar! pssst caesar! julius! dude, you should really check in with your team on ringcentral. i was thinking like... oh hi, caesar. we were just talking about you. ha ha ha. yeah, you should probably get out of here. not good. ♪ ♪ ♪ ringcentral ♪ ♪♪
2:51 pm
another name we are watching or i should say is carvana, halted twice in just the last few minutes. according to "the wall street journal," apollo global management put up $1.6 million to bolster the company the stock collapsed 75% in the past year and it's still down about 2.5% today on these financing details. >> all right up next, major nasdaq 100 laggards that could turn into leaders. we will tell you about nose in just a moment.
2:52 pm
2:53 pm
2:54 pm
. welcome back, everybody. we are looking for some buying opportunities among these nasdaq 100 laggards names like nvidia, match group and alliance down 30 % but have 70% of analysts with a buy and potential of 20% upside. which one is the best buy? let's bring in larry glazer, a managing partner at mayflower
2:55 pm
advisors your favorite of these three stocks here, what would you go with which one do you pick at the bar? >> sure. it's been tough sledding in the nasdaq and there is no question that when the sledding gets this tough and the vix gets this high, you need to pick a leader in the field and stick with quality and that's nvidia. the future is all about chims. the future all about data centers. this is a leader in that field the smart money likes data senators the analysts like the company. all the right moves for the future close your eyes, hold your no-fly zon disturb hold your nose. >> you are not going for matchbook. you would look at align here >> match may not be a match to your portfolio it's about in real life today. and that match is an online story. i want to be in the offline reopening stories. with the line, it's all about the mile, right. you go back to the office, we want nice teeth, a smile goes a
2:56 pm
long way align puts a smile in your portfolio. earnings are coming out. it's an exciting time. they have done an amazing job cultivating cosmetic dentistry it's a premier brand i like the story and i like it because it's not supply chain. it's not dollar. it's not china it's not all the nonsense that's affecting the -- >> it's teeth, man >> that's align there that layer isry is fan of, find the rest of the names with potential upsiden our cnbc pro website. >> more "power lunch" is next.
2:57 pm
insights illuminate better choices. allowing us to see differently and do more. with kpmg you have the people and technologies, to uncover insights and turn them into action. when we act on insight, with the right people by our side, opportunity is everywhere. let insights reveal new opportunities. - in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates
2:58 pm
and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at try it for free at ♪ ♪ try it for free at - [man] i got my degree at snhu for my family. - [man] this degree is for me. - [man] i did this for my partner. - [woman] my siblings. - [woman] my daughter. - [man] my son. - congratulations, dad! - all right. - [announcer] no matter who you get your degree for southern new hampshire university can help you get it done. with low online tuition and multiple term starts per year. so the best time to get started is right now. visit
2:59 pm
the day is almost here the cnbc stock draft airs tomorrow we got celebrities we've got "deadpool" star ryan reynolds,star of "real housewives of atlanta" in candy and the gang, candy burris shark tank's kevin o'leary and two-time nba champion david robinson and the st. peter's peacocks, remember them from the ncaa from the board room, macy's ceo terry lundgren and cnbc favorites tim seymour, stephanie and delano congratulations to last year's winner, andre igodala of the golden state warriors. at any rate, the realstar last year was, of course, jim cramer. he is sort of a different
3:00 pm
division his two stocks outran the others. >> on the program he said fordham amc would be his pick. jim will be with us, melissa lee to talk through the picks and, you know, give us some stocks. >> the stock draft is tomorrow to get you ready for the nfl draft later that night. >> closing bell starts right now. ♪ looking forward to it, guys. stocks trading in a wide range today. off the highs but holding on to the gains. most important hour of trading starts now welcome to "closing bell." right now, dow's up 200 points we got as high as 457 but did negative at one point in the session. it's been all over the place looks like the gains are holding here the s&p 500 up half a percent. we are down about 2% for the week at least on the nasdaq which has been really the eye of the storm lately on earnings and selling. it's up today, a third


info Stream Only

Uploaded by TV Archive on