tv Countdown to the Closing Bell With Liz Claman FOX Business May 6, 2015 3:00pm-4:01pm EDT
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trading than liz claman. "countdown" with liz claman starts right now. liz: the company that went from a $500 million valuation to 4.5 billion in less than a year? we'll introduce to you a san francisco start-up that is disrupting the way companies manage employees. benefits and the ceo parker conrad is the luckiest guy on the planet. what he plans to do with the new $500 million cash infusion. did the pilot of the doomed germanwings plane which crashed in the french alps make a few practice attempts before he carried out the real thing? crashing to kill. think the bird flu won't affect your turkey craving? november, thanksgiving is so far away. you are wrong. millions of you could be buying year old turkeys or forced to occur tofurkey. as the dow goes negative for the year. let's start the "countdown."
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but we begin with stunning breaking news. how it apparently was. that's the cover of the "new york post" right after the super bowl indicating that tom brady of the new york patriots must have known that the balls that he used were deflated to give him an advantage. the nfl released this, a 243-page report of the investigation, the nfl commissioned on this issue, and the report concludes that new england patriots employees intentionally deflated footballs in the afc championship game. nfl officials started investigating the patriots after they defeated the indianapolis colts by a margin of 38 points. look at what this report says among many bombshells. we have concluded it is more
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probable than not that jim mcnally, the officials locker room attendant for the patriots and john participated in a deliberate effort to release air from patriots' game balls after the balls were examined by the referee. now here's what some consider to be the worst, it says that tom brady was generally aware of what was going on, this is the quarterback, tom brady, despite what he had to say back in january. listen. >> i have no knowledge of anything, i have no knowledge of any wrongdoing of any -- >> nobody did anything? >> very comfortable saying. that very comfortable saying nobody did it. as far as i know, i don't know everything. i also understand that i was in the locker room preparing for a game. i don't know what happened. liz: well, this report, more than 200 pages is very clear about what happened. there is damning evidence in it. joining us by phone, former nfl
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player erik coleman who used to play for the new york jets. eric, you have been supportive because you were waiting for evidence like the rest of us. let me tell you in this report, i want to show you what the officials said and, in fact. this from an official, when game official anderson and other members of the officiating crew, this is before the championship game against the colts were preparing to leave the locker room to head to the field for the start of the game, the balls and this is a quote, the balls could not be located. it kind of disappeared. it was the first time in anderson's 19 years as an nfl official that he could not find the game balls at the start of a game. erik, it appears, according to the report, that the equipment guys were deflating the balls. what do you now say about tom brady and the patriots? >> before i was trying to reserve judgment, but you know, based on their past of cheating, finding different
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ways to gain advantages on teams, it's appalling. you know? this game, it was a cold game, there's no way that tom brady didn't know the psi of the ball. the quarterbacks deal with the footballs every play. they know if the ball is extra hard, soft, they have a good relationship with the footballs, and you know, for this to come out this way, it definitely is disappointing. liz: this is what's going to steam you. before the new york jets game in october, which was before the indianapolis colts game, apparently, this jim mcnally, entrusted by someone to deflate the balls, got ripped into by tom brady because the balls were not properly deflated supposedly, and they have texts in this report, i'm going to read this one. after he got yelled at by a, quote, angry tom brady. there are cameras in the locker rooms. this is from mcnally. tom sucks, i'm going to make that next ball an f-in balloon,
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meaning, i'll make it inflated properly, not the way tom brady would want it in a cold weather climate such as new york or new england. so maybe the jets were victims because the patriots won that game too? >> just like the -- when they got caught filming people, i'm sure that wasn't the first time they did this. you know, those footballs, when it's cold out, they are very hard to catch, very hard to throw. they're brand new footballs. and the kickers do whatever they can to doctor the balls to make them less slick. for a quarterback, for the ball to be deflated would be a big advantage in gripping the ball, and help him be more accurate with throws in the cold weather. liz: of course. >> that's very disappointing. liz: check this out, erik, a whole bunch tests and to me somewhere really negative for tom brady. looks like tom brady was
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greasing will hand of this guy, mcnally. mcnally requests that the needle, the needle used to deflate the ball, the needle be surrounded by cash and other items. quote, this is mcnally, remember to put a couple of sweet pigskins ready for tom to sign. better be surrounded by cash and new kicks, meaning sneakers or it's a rugby sunday. that is a reference to a rugby ball, he won't like the deflation or inflation of the ball. what do you think should happen to tom brady, considering this report put together by law firm paul weisz by the nfl that tom brady was aware. what should happen to tom brady? >> they have to come down hard. this isn't the first time the organization has been caught cheating. liz: suspension? what do you think? >> suspend him for a game or
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two and definitely a fine. guys put in a lot of work to get to the playoffs and to be cheated once you're in the playoffs, it's an injustice. liz: my gosh, how do you think the colts feel today? it could have been them with the super bowl. >> i think when deflategate started, the players said they had gone the beat by a fairly large margin and the balls probably didn't have anything to do with the outcome of that game. leading up to that game, like you said, against the jets, close games they were probably in that having the balls deflated helped them. liz: erik, thank you, i know this isn't the best birthday present considering it was your team at one point they could have been inflated or deflated balls. happy birthday. erik coleman, former new york jets player. happy birthday. i encourage everyone to read that. breaking news, janet yellen
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helping to pressure stocks lower today in a speech this morning. janet yellen, the fed chair warned that stock valuations were high and could pose a danger to the markets. do the traders agree? kind of fun to ask our traders what the favorite market indicators are that they follow. maybe the side window rear one? traders at new york stock exchange, cme group and the nymex. keith, if it's not what janet yellen says, what do you look at for a trading indicator? >> one of the more obscure indicators and charts that i follow is the city economic surprise index which tracks the macrodata in the u.s. and globally. doesn't necessarily track consistently with economic rises and falls but takes into consideration all the estimates by all the economists that are looking at particular market, and it gauges where the actual macrodata comes in against the estimates, which is interesting in the united states, we've been disappointing on the estimates of the data. liz: and it looks like a big
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sell-off. is that a sell signal that somebody is looking at the economic surprise index, they started to see it fall. would that have been a stock sell signal? >> maybe, maybe not. hard to gauge the index in the last year and a half. if you look at charts, the s&p 500 over the last ten years, they correlate pretty well. until we get to 2013. that's the big problem. i always look at it, think it's a forward looking indicator that tells me there may be issues out there. i'm not sure it is all that today, but certainly it's worth keeping an eye on for me and part of an amalgamation of data against the obscure charts and the notable charts. >> ira, why the sell-off, is it janet yellen saying the stock market is overvalued or dangerous at this point? >> of course she is, and it is overvalued and it is go away, and it is a situation where interest rates around the world are climbing.
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people aren't realizing the bund went up from .07 to .5. liz: what's your indicator? what do you watch that's smarter than what janet yellen says perhaps? >> i watch several different things. the dry ship indicators and overlay like the other guest was saying, i overlay 10-year notes on gold. they have tied themselves together when. futures go down in the note, they go down in the gold. take that chart up, it's unusual, but tied itself together for a year. liz: you see the maturity line and the gold line which, of course, is the blue line. i don't know why we didn't make the gold line gold. jeff grossman, we saw oil hitting a new five month high, jeff. >> yes, it did. i have been touting that for
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the last several times i have been on. i'm not surprised we got here. again, about the indexes, i am a simple guy, looking at lundberg gas survey. liz: the lundberg gas survey? that's not so simple. >> it's not as exotic as the ones the other guests mentioned, but i'm look at the trends in gasoline consumption. liz: well, the trend when it comes to prices is definitely up. >> well, a couple of weeks ago, everybody was sure that we were going to see it three handle in the crude oil, again, i was staying wasn't, there wasn't possible and all the things fell into line. weakness in the dollar. the stock market hung in there a bit. consumption is looking strong here, and we're on our way to peaking around memorial day when we can look at the gas season and take it from there. this market is really healthy. we hit my objective, i think the elevator hit the top.
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we may have to sit back for the next couple of sessions. everyone is talking 65 and $70, time to temper our judgment about that. liz: temper your judgment, stocks are cheaper, if can you look at it half glass full or half empty. keith is laughing, he knows i'm right. was a major red flag missed in the hours leading up to the deliberate crash of the germanwings jet in the french alps? more importantly could it have happened in the u.s. with our rules and regulation for pilots, and to protect pilots? we have a former head of the faa, one of the top officials there, and he has stunning perceptions on that. days after i asked burlington northern's executive chairman matt rose about train safety. one of his trains derails, causing the evacuation of a small town in north dakota. that happened earlier today. we'll give you the details. xecutive
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chairman matt rose say about what burlington is doing about safety. if you eat turkeys, get your b plan ready, millions are socked away in freezers, millions lost to the bird flu. will you are forced to bid on one on ebay? you need to see this well in advance of november. we've got it right here. don't move. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night.
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. liz: fox business stock alert. if only you knew what i'm going to tell you, you could have doubled your money and then some. shares of a biopharmacompany shot up 125% after alexian pharmaceuticals said it's going to buy it for 8.4 billion dollars. the deal will give alexion experimental treatments for rare metabolic diseases. up 112%. we've got the volume pretty significant for both of the companies, alexion moving down about 9% at the moment. we are about to bring you the richest investors in the world. thousands of hedge fund managers, d.c. insiders, wall street bankers gathering in las vegas for the seventh annual
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salt conference. fox business is there getting all the exclusive introduce. here's some. >> no one wants to go down in the history books as having taken that decision. it is because of a massive accident. the positive outflows, capital controls and alternative iou currency, that's what it's going to look like. those are the circumstances, messy in the short-term but containable over the medium and the long-term. >> the market is higher than it's been. you can always find value in the market, look harder for it. the opportunity provided by the opportunities for activism in terms of being so receptive to stockholders, we're seeing more opportunities. >> very effective, a lot of the suggestion that friendly activists make are being implemented much more quickly with this positive attitude toward the action. liz: maria bartiromo speaking to all of those, she's there
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tomorrow morning for opening bell. our own charlie gasparino was digging and scooping, joining us now live from the salt conference, morgan stanley senior adviser gary kaminsky is also there. give us the dirt. i guess it was a secret fund-raiser in town for hillary, too. >> what's great about the conference is the confluence of politics and wall street very, very, very usable information here. here's what we hear, what fox business learned is hillary clinton was in town last night, that's the speculation, it was all over the place at major parties at salt, that she was in town for a major fund-raiser. the big question is whose home, we heard it was a gazillionaire, whose home was it? this isn't confirmed by the clinton campaign, we haven't gotten this confirmed by the mystery man. we heard it was at the home of
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steve wynn, that would be very interesting. steve wynn has taken interesting positions contra to the old boss, barack obama, the president. we're going to see if we can confirm that. clearly last night, we hear she was in town, and the rumor is that was at steve wynn's house, we're looking to confirm. that guys, i'm going to bring in gary and eric here. gary first, we were at the same parties when we heard. this guests at one of your parties at salt. the fat cat rich democrat friends. >> thanks, charlie. >> they left to go this thing. >> as you know, i'm a republican, charlie. what we do know, i have absolutely no idea where the fund-raiser was, what i do know is it was several people that were coming to an event that you and i were at that said they did need to cancel because they were going to a hillary get together. >> and rumored today, it is steve wynn, if it is wynn, that will be a big story.
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steve wynn's very critical of president obama. >> that is true. >> people say when she gets in office, she's going to be accommodative to wall street. we shall see. i want to bring in eric here. there's going to be an interesting private dinner tonight which i snuck in through the back door, thanks to gary, with former fed chairman ben bernanke is going to be speaking and hosting. i'm sure it will be very nice. when you talk to people around here, including people like you, there is a lot of anxiety what ben bernanke brought. he was the architect of quantitative easing, 0% interest rates, and the possibility that we're seeing a major asset bubble in either stocks or junk bonds on wall street week. carl icahn. we will say it happened on wall street. i'm not going to be like the certain guy on cnbc and steal your thunder. you broke it on wall street. cnbc wouldn't do that. i'm a mench, okay, carl icahn
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said a bubble in junk bonds. cnbc wouldn't do that. what would you think about that? what would you ask bernanke? you would pointedly say what the hell did you do over the last eight years? >> the interesting thing about his policies is not necessarily what it did to the u.s. but it rippled everywhere. when he introduced all the things and pushed the dollar down, it pushed the bank of japan, the ecb and you see it rippled across the world. now that you elevated equity and bond prices, how do you get out? >> not good. usually that never ends good. if you're the average investor, what you're hearing from the pros, when this thing ends and it's going to end. the market is going to correct, it's going to have to stabilize. they're going to have to raise rates someday. it's going to be nasty. >> charlie, the biggest concern, we heard it yesterday, the three of us were at a session, without getting too technical for the viewers, it's about liquidity.
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>> it means if you want to sell your stock and someone is on the other end, buy it. the price goes from being 10 to 0 or.1 which is not good. >> and the chairman bernanke has been doing a lot of the speeches now. obviously he's in the private sector and sneak a lot of private events and talking about his concern. >> right. >> now obviously -- >> we don't know specifically. we will know tonight, when you come back on air tomorrow, you're going to know. >> we're going to go on liz's show and breaking news how he says he's going to get out of this thing. i will say, this usually collects $20. >> is it more like $200? >> people don't break his chops. guys have money in the game, skin in the game, whatever cliche you want to use, they will break his chops, don't you think? >> he's going to have a hard time. you hear liquidity, it's an issue in every conversation now. >> the average guy doesn't know what it means. you can't sell your stock.
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if you sell ibm at 10, it goes down to a lot less because no one is on the other end. why don't we have that? rules on regulations and bubbles on printing money on extremely low interest rates. >> they are not leading the banks, they can quietly step away when things get bad. >> why aren't the banks in it? dodd-frank. i will say this, the fascinating thing here, we're all talking about, ben bernanke, interesting thing is the fact that hillary is in town. if steve wynn is hosting hillary, that is fascinating. liz: how about this, charlie. what do you think of this theory? maybe it was elaine wynn, steve's ex-wife to annoy steve wynn, that's my idea. >> by the way, it is very -- that's a good point. it is very possible. we don't know where she was. we know on day schedule she is
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now in san francisco. you can make that move and do a fund-raiser after vegas. that's what everybody is talking about here. that and quantitative easing and ben bernanke. that is what's so great. >> a couple of things talked about. >> what else? >> oh, veronica, you know, it's gary kaminsky invited by veronica vein. >> you cut me off, i can't talk, liz. it was all me. liz: it was all you. and tell gary, if he can hear me, to get a cell phone photo of you with the fanny pack. we want to see you by the pool with the fanny pack, gary. >> you don't care about steve wynn? you care about me with the fanny pack. you guys are killing me. liz: thanks a lot. charlie gasparino in vegas. closing bell, 35 minutes away, another unbelievable twist in the tragic story of the germanwings copilot who intentionally crashed a plane in the french alps.
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. liz: it has been a month and a half since the copilot of that germanwings jet purposely crashed the jet in the french alps killing all 150 people on board including a bunch of high school students visiting spain. french air accident investigators are now reporting that the copilot, that guy, andreas lubitz practiced a controlled descent that morning
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on a flight to barcelona. why wasn't this descent detected in the earlier flight and is this something airlines should be on the lookout for now. joining me now former faa official scottbrenner. as best as we can understand, going from barcelona to where they were going, to germany, is sort of like l.a., san francisco, it's a quick flight. >> right. liz: he was on the same one hours earlier and suddenly descended without being told? how do we know? how can we prove that was a practice for what horror was to come? >> sure, every commercial aircraft out there is equipped with two black boxes. one called the cockpit voice recorder on, a two-hour loop, that records every sound going on inside the cob pichlt the other one is the flight data recorder, on a 25-hour loop, that can create any data point in an aircraft on. flight from dusseldorf down to
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barcelona, after he had gotten clearance from air traffic control to begin his descent. the main pilot was out of cockpit. the copilot, this fellow here, puts the normal descent but programs it into 100 foot descent. he wants to take it down to 100 feet. because the descent rate is so slow, you don't feel that. nobody noticed anything, he turned it back oput it down to 100, that's what our flight data recorder told us. liz: could this happen here? that's what people want to know. there were all kinds of warning signs that this pilot, should not have been flying. he had shown signs of depression. there was a doctor who banned him from flying, yet there are a lot of protections from pilots. some very fair and important, could this have happened here in the u.s. or are our regulations different? >> you would hope it would not. and because the doctors, lufthansa knew this fellow had
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a mental illness history, and you would have hoped they had a program where they were regularly reviewing his mental health. the problem is here in the u.s. is the doctor that's treating you for all your daily illnesses or any kind of mental health problems is not the same doctor who's going to certify that you are safe to fly, and so it's incumbent upon the pilot to be honest. so when he goes into the medical examiner who's going to renew his medical certificate to fly, he has to tell the doctor exactly what is going on with him. if he chooses to lie, other than a big fine and potential loss of airman certificate, there is not much else can you do. it's upon the professionalism of the industry to be honest on these types of things. >> if we cut to the chase, i'm hearing you say it could happen here. >> no, absolutely. if somebody is determined not to reveal mental health state at any time, whether under a doctor's care or not, yeah, absolutely. liz: scott brenner, former faa
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senior official. we appreciate your expertise on this very tragic situation. >> thanks, liz. liz: closing bell ringing in 27 minutes. dow down 146 points, negative for the year. why is superstar venture capitalist marc andreessen, why is he obsessed with a certain start-up, thanks in large part to him, this start-up is worth about $4.5 billion. he's put so much money into it. up next the object of andreessen's bci, the crowe of zen fits and the incredible story. another train derailment, days after the head of burlington northern railroad told fox business that safety is a top priority.
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. liz: time for the "countdown" news flash, a train carrying crude oil in north dakota derails and catches fire. five tank cars came off the rails and the nearby town of heimdal was evacuated. local officials said there were no injuries in the accident. burlington northern train is owned by berkshire hathaway, of course, a warren buffett company. just last week at the berkshire hathaway annual shareholder meeting, skied matt rose, the executive chairman of bnsf about the very issue of rail safety. >> we have advocated for a stronger tank bar, and increased the amount inspections on the railroad, and we also decided that bnsf will slow down through metropolitan areas of over 100,000 people. we addressed this with a three prong approach, prevention, mitigation and response. at the end of the day, the american public needs us to be
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successful in this for a number of reasons. domestic oil production and getting it right and being able to handle it the right way, the safe way, but also being able to produce it here at home is a huge idea. liz: we will keep you updated on new developments about the evacuation and the derailment. how many cars did tesla sell in the quarter? you'll know as soon as we hit the warning bell and we get the earnings after the bell from the electric carmaker. tesla comes out after the bell. investors eager to hear plans from elon musk about batteries in homes, the giga factory, too. investors will be listening for news on the model x sport utility vehicle that tesla hopes to sell this summer. he said about 9500 cars sold? i'm venturing to guess they did better than that. he hinted in early april. we did better than that.
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tesla up about 4% for the quarter so far. the painting vincent van gogh created while working with paul it was sold at sotheby's, came in believe it or not below the record for a van gogh which stands at 82.5 million dollars. that had sunflowers in it. the one that sold for that much. british citizens heading to the polls in election that could mean a new leader and new political direction for the country. a few of the issues rising up, fish, bacon and beer! joining me now from lees england, jason pharrell, give us a sense on the ground. >> we're here at the last fiscal rally, at this campaign, in a small theater containing a
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thousand people. fairly small for an end rally of any campaign in comparison to a u.s. election, but given a very impassioned speech why he wants to become the next prime minister of the united king dom. the problem he has and his main contender, david cameron, neither of them are likely to get an outright victory. the polls suggest they have around 35% of the votes. and the reason for that is that there are smaller parties such as the scottish nationalists and u.k. independence party that wants to take the u.k. out of europe, that have a large proportion or reasonable portion of the vote. so somewhere between 30 and 35% of the vote is held by the smaller parties, that is causing a real headache, constitutionally, we don't know what government we're going to get at the end of this. whatever happens, it's likely there will have to be negotiations. one of the larger parties is likely to have to bring one of
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the smaller parties on board in some way, but they are deeply, deeply divided, especially with the nationalists, and it could be that at the end of this, we have to go into another general election. liz: yeah, sounds like a little horse trading there. one of the candidates is promising beer for all. jason, great to see you, thank you very much, senior political correspondent. we need to get to the avian flu, that outbreak has caused 21 million turkeys and chickens to be killed. could we have thanksgiving without turkey? jeff flock, i'm going with the tofurky. doesn't sound good here. >> reporter: tofurky day, you can't get bird flu from tofurky. take a look at numbers, it's begun to get crazy. 24 million birds, chickens and turkeys, it takes about five months to grow a turkey, and the problem is nobody knows where all this stuff is going to end.
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the outbreak of avian flu. just yesterday, another outbreak in iowa, hormel's jenny o unit laid off people in minnesota because they don't have enough product. here's the good news in addition to the fact that perhaps that humans have not gotten this. there's a lot of turkey in storage right now. take a look at latest numbers from usda. about 23,000 tons of turkey breast in stores. all frozen turkey, 173,000 tons in what i like to call the strategic turkey reserve out there. it's possible that we won't have problems this thanksgiving. we visited a poultry operation just when this outbreak really started to gain steam, liz, and you know it's very difficult. once you get obviously any kind of outbreak in one of the operations, very difficult to stop the spread. you got to kill everything. it's not pretty. liz: no. jeff. this and order the frozen one,
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. liz: guess what? we have come back 70 points, 7-0 points. when you look at this, down about 118 for the dow. had been down 195. we have the transports and the russell punching up into the green. regardless if you say liz said we're negative for the year on the dow. my next guest says so what! don't worry about the uncertainty, now is the time to stomach stocks and battle the bear. john buckingham is famous for
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saying he hasn't seen a sell signal since 1977? what about 2,000 or 1999 or 1987? >> certainly, stocks are going to go up or down, but the problem is you can never time when it get in, when to get out. we focused on buying undervalued stocks and being patient and not trying to jump in, jump out. the market will drive you nuts if you think about just think of today's trading. liz: yeah, people come in and say you should look for undervalued stocks. teach me right now, ways to find an undervalued stock? >> we look at p/e ratios. liz: what's too high a p/e ratio. >> that's the interesting thing, dependent on the insurance industry. if you are a biotech company it might trade at 30 or 40 times earnings. liz: 50 is too high? >> general speaking right now. liz: what is undervalued now?
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give us names. >> i mentioned biotech. amgen, eclectic value stock, trading at the low end of peer group, if you look at biogen, amgenis fantastically priced, great pipeline, and a new cholesterol drug coming along the lines and reported stock earnings, the stock dropped 15 bucks. liz: why is royal caribbean on the list? >> has excellent greth potential and trading at a reasonable valuation. keep in mind, the overall market is trading at 19, 20 times earnings for a lot of stocks. stocks are in the same multiple. they have above average growth, and so i think there still is value associated with the good balance sheets and dividend yields as well. liz: john buckingham, remember, has had a better return record than warren buffett. you didn't go to the meeting. i didn't see you there. >> some of us have to work,
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liz. i'm sorry. he didn't invite me, either. liz: john buckingham. teaching you how to find the value investment stocks. famed venture capitalist marc andreessen goes in for companies who aren't stocks yet. he may have a favorite. zenefits just got a cash infusion of half a billion dollars that now values this two-year-old company at $4.5 billion. bigger than imax and companies like that? joining me zenefits ceo and co-founder parker conrad. great to you have on. what is it, what alchemy did you have between you and marc andreessen where he said suddenly i believe in this company? >> it wasn't just marc, a lot of other folks at the firm, and investors leading this round, fidel etand tpg as well. zenefits solves the problem that is common to any small
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business in america, which is a lot of the burdens of hr paperwork, compliance, that sort of stuff, we make all of that stuff go away. we do it for free, and we've been growing really quickly. i think a lot of folks looked at this and said listen, there this is a big problem for a lot of companies. if zenefits continues to be successful in this space, it could be a really big company. liz: you just said the f word, the free word. that's great. how do you make money? why does marc andreessen and other investors -- marc was an early investor in facebook, and whatsapp and the other names, oculus, buzzfeed, skype, twitter, pinterest. how does he see a payoff down the line if what you do is free? >> the way our system works, we take the disconnected systems related to hr, payroll, medical insurance, other benefits, time
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and attendance software, we connect it all up and give companies a single fleece do everything and the deal is we give the central hub system away for free and make money on all of the folks. the biggest one is on the health insurance side. acting as someone's health insurance broker. liz: i believe you guys are licensed as health insurers which makes it easier, that is one of the toughest things for hr, anybody that started with a new company knows they have to sit with hr and ask about the health care benefits and payroll benefits and all kinds of things like that. you at zenefits simplify it for small businesses. when you are a start-up, and people are giving you money, i won't say throwing money ought, giving money, it's tempting to burn a lot of that cash. how do you keep revenues up and not burn all the money and yet grow at the same time, parker? >> the way i think about, it we think there's a big opportunity here, and each new customer that we get we think is a great
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investment. going to have a great return over time. a lot of the costs in getting the customer are all front loaded. what happens, when you are growing quickly, you end up needing a lot of capital. on top of that, because we're going after s and b's, we're not going after the largest,000 companies, we're going after the five million businesses with less than 1,000 employees, a lot of pitches and questions we need to answer and need to build the big staff and all that requires capital up-front. liz: parker, good luck, when you have the vc's making sure you don't stumble and fall, that's terrific. have you done just fine yourself. parker conrad, come back again, thank you. company is called zenefits. great title. closing bell ringing in five minutes. ever heard of sharpy, papermate, linux, they are under one roof, rubbermaid. you can invest in it, we have
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lori: now we have come back more than 100 points. making it less obvious on five-year anniversary of the "flash crash." nicole petallides at floor of the new york stock exchange. >> we're looking at stocks right now. now down about over $2. adam: wheel foods we're expecting earning from them. they have been down here on the tock. >> it is looks higher, adam. liz: shares of herbalife.
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bucking the trend up 18%. [closing bell ringing] raise its outlook. very good numbers. bells ring on wall street. stayed negative for the year. the other indices hitting a one-month low. here are stocks finishing. adam in for david asman. russell making a gain of four points. adam: a guest says you might want to look at mid-cap and small cap stocks going forward. liz: why not. they're the growth names. we're waiting for whole foods and tesla. "after the bell" starts right now. liz: give it 11 seconds and the dow will flip to being positive for the year, by that much. just last 11 seconds, looks like numbers are settling to the upside at least for the moment. leah bennett of south texas money
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