Everybody wants that the meantime, cant they do Something Else to appease investors in this follows on the heels of bill miller, legg mason, financial times, says keep every dollar cash on your Balance Sheet but use the free cash flow, paid out a dividend on the free cash flow, the stock would go up 50 . Bill miller the past 24 hours, bethany mcclaine 200 marco rubio is out this morning on twitter saying the number of chargers is driving him crazy and moving closer to samsung. His response in the state of the union. I think time for a congressional investigation into the most Successful Company on earth. Its really time to house on American Activities Committee part two. Briefly stated this idea that einhorn and bryce said he has brought up the company they considered and punted on is the idea of issuing, at no cost, a perpetual per preferred to stock to exsig hold hearse pay you about a 4 yield. Said another way, around 25 multiple, right, 4 yield, you can back in on an eight multiple stock. A blended multiple pullup . Yielding 4 . Maybe the part we are not paying enough greed dense to is the fact that he maintains his position, einhorn, owns more now than he says he ever has. Didnt help his performance last year. Came in with rather pedestrian numbers, especially given he was right on a number of big shorts, yet at the end of the and yet he did not manage to put up numbers that were notable. I have got a solution for him. You can always sell the stock. Dont like what they are doing, you can sell it. I mean, this isnt necessary i say that because i understand. We go back to gordon gekko, teldar, whatever. Say this underperforming stock, they got to do something, we put it in play. Do we want to put this a until play, so to speak, with the perpetual preferred . Call up tim cook, a question does he think tim xook doing a great job . I didnt hear, yes, i think he is. I think there is a i think that if we had an i shall unit proxy didnt want to increase the dividend, that would be more radical. Did approach him with a novel idea, i think we should all think about novel approaches to a large cash position. My novel idea they buy twitter. My novel idea they buy netflix. I have a lot of novel ideas i think would move the stock up because it would increase the growth rate. A novel idea of doing perpetual preferred dont preclude the other though. In this case, preferred is just a yield. In other words, only on cash, not even distributing the cash poor to pay that yooe yield. My idea is to have the fed reserve increase the rate for 3 and the earnings explode. You there go you there go intellectual exercise. I love a good intellectual exercise. I took classes in intellectual exercise. They are exciting. Tim cook, listen to conference call, tim cook is happy it. An activist campaign mounted on the company. Isnt that what it is . Slight what it s you have got the biggest Market Cap Company in the world, still exceeds exxon. Yeah. Exxon. Widely distributed share base. I have no idea how they are possibly going to really think they can mount anything thats going to work here conceivably, other than public pressure, but we will see. Do you think the stock is down this much because they dont do anything with the cash or think because the growth slow they missed a couple quarters ago . I think the growth slow and also because it is changing hands, not doing anything with cash but so not attracting enough value in investors yet. Paying a dividend. I have said to them they should i wish odd larger dividend. I wish they did more of a buy back. I think they should put that cash to work. It has not been depression mentality . I dont know. Im not in their heads. I feel like theyre in a mode that just says theres a rainy day and we will be ready. I think this is a thermonuclear rainy day with a blade runner kind of thing to worry b acid rain kind of day. Ridley scott does apple. Yes, in the end, their analysis, if you are a large shareholder and the stock is not going up, youre looking for something that can go up, here is a novel solution. Guys, return capital this way using your Balance Sheet. And the fact they bothered to put on the proxy saying, listen, you there is an idea completely off that idea you have come with is just a real stinker so we are not gonna do t obviously what one of the key stories of the day. Some of the other stories we are following this morning takes us to samestore sales what a january for retailers. Several big names blowing out estimates for the month, despite all those worries about the payroll tax. Who won . Who lost in the cramer knows. Former treasury secretary bob ruben in a rare interview on squawk this morning has words about too big to fail, the sequester and how he missed the crisis at citi. Is it time to say goodbye to the u. S. Airways brands . A deal looks close for amrs american to take it over, become the number one brand. Does consolidation mean Airlines Just got more attractive. We start off with the retailers, january report card, macys posting an 11. 7 jump in samestore saturday and raising guidance. Stellar results from some of the retailers. Such a mixed picture. Some guys kohls, people decided their clearance is moving the stock up nicely. Gap strong happens moved. Consistently great job. People talking about Urban Outfitters doing a great job, doesnt seem like the stocks right now are moving the way you would think they would. I dont know how many people are counting on this particular month a short month, bleedover from the holidays. The rate of beats, 59 is the strongest since august, which was 86 , thanks to mkm partners. The number of them that have outpaced expectations is pretty big, relative to everything else. This is historically the one month i dont care about valentines day matters for retail. I think one of the takeaways from the Conference Calls we have had, companies lost a day or two. I had irwin simon, he lost a day or two. Ralph lauren talking about losing a day or two the numbers arent that bad for the first you look at the last quarter, which does matter. The economy not breaking down there is the take away. I thought macys was an interesting report. They talked about bringing new inventory in december to serve the january and postholiday shoppers and that seemed to work, they say. Online sales were also big. Thats important to keep in mind because macys calculation, they include online sales and the samestore sales calculation. Look at the online sales, up 49 in january, year on year, huge jump there, that add 3 to the same store sales numbers, that really helped fuel the beat. Remember this week, citi upgraded macys andgets and some others on the basis that they have more home merchandise so they can participate in the sort of recovery in the market, the housing market. Here we are, up again. Funny, macys did not cited no one for a long time. This number really does pop versus the others. Herb greenberg did a story yesterday how limited didnt move, despite a good dividend. Stock down versus the numbers. Macy seas the standout. I think some of the guys who have done consistently well, like gap, are doing consistently well. It is just kind of a really bizarre group of thing to see kohls break out here, see macys break out, this is kind of a return to the Department Store as opposed to the individual funny you say that ron johnson on our air yesterday vowing to go positive comp in fiscal 13, did he draw a bit of line in the sand there and some people were left shaking their heads afterwards. He is very positive man. He update us how far along he is . Accident get a percentage. Interesting interview. He is positive better than being negative. One of the few losers, ann taylor, minus one versus a 49 estimate. Hard to find big misses in the space. Specialty store thing. Ann does worse. And i think macys being home goods does matter. Things are fine. The fact is we did have a payroll tax increase some people were very worried about. I dont see anything in these numbers that indicates that matters. When we come back, we will hear what bob ruben told the guys on squawk this morning. Wait until you hear what he has to say about how he missed the crisis at citi. Expedia shares doubled the past year. Ask the ceo how he plans to keep the momentum going. Futures relatively flat today, moderate upside at this moment. Squawk on the streak live from post nine of the nyse when we return. The momentum going. The momentum going. The momentum going. The momentum going. Ask the ceo how he plans to keep dont wait for president s day to save on a new mattress. Sleep trains president s day sale is on now. Save up to 500 on beautyrest and posturepedic. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. Sleep trains president s day sale is on now. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep expedia shares doubled the former treasury secretary robert rubin a guest on squawk box this morning exclusively. Asked about sandy wilds call to break up the big banks. Too big to fail is an enormously important question. Came up in 1990 when a group of banks were in difficulty. I think its an enormously important question. I think the problem is that if you look at what sandy had to say, and i have a lot of respect for sandy, but i think that if you followed sandys path and you broke up the banks in some fashion or other, as hes describing, the risk isnt going to go away. The Systemic Risk, the too big to fail risk will simply move from one place to another place. Interesting to see the divergence of opinion between the guys who saw different things, jim, in your time together. Would have liked to ask the former treasury secretary what happened with the cdos at citi under his when he was there i think that theres some interesting stories lately about the cdos and not just from a complete failure to appreciate the risk of the super senior tranche, a made up word, that sunk that bank, more or less sunk that bank he was the risk meister. He wasnt paying any attention when he was in the Chairmans Office at citi, which i think he said. Im still curious what the follow s you split up the big banks, where is the why, why is there still a too big to fail risk . Its risk of both of these institutions failing at the same time. Does it make a difference if it is one Large Institution or several failing at once in the stress of the system, theoretically, could be similar. A lot done to raise capital, to raise capital. European banks werent forced like we did with treasury secretary geithner to raising a huge amount of cash, we still see Systemic Risk in a spanish bank, for instance. Now, you know, i applaud what santander doing, raising lots of money around the world. It is hard to really fault the american banks for what they do. Do we want ten jpmorgans. Anyone remember the great antitrust case against ma bell, broke it up into remember, we had all this great southwest bell. Put them back together. At t going out of business. I want to know about the cdos and why did justice decide with email wes knew about raising a lot of good questions. Still people who say we should have let a lot of things fail and the system would have recalibrated itself in a real way. And people saying aig wouldnt fail. One guy. A lawsuit. Its past. We should move forward. Optics continue to be miserable. Today in the paper, rbs, ubs, jpmorgan, its the cover of the business section. Still living with these things from five years ago. Emails and lawsuit, the put back issue back in terms of risk to investors out there, its still out there, amazing that we are still dealing with many of these things. This week alone, it seems it occurred years and years ago. We come back, count you down to the opening bell on thursday h you heard cramers idea what is am should do with the cash despite einhorns thoughts on getting rid of preferred. One more look at futures here. Great, everybody made it. We all work remotely so this is a big deal, our first full Team Gathering i wanted to call on a few people. Ashley, ashley marshall. Here. Since were often all on the move, ashley suggested we use fedex office to hold packages for us. Great job. [ applause ] thank you. And on a protocol note, id like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh im sorry guys. Ah sometimes the caps lock gets stuck on my keyboard. 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Now get 200 free trades when you open an account. A little less than an hour since David Einhorn came on our air and talked about apple and Cash Management that is part of the mad dash today. I got to tell you this does matter, apple is incredibly wildly held, because it has fallen dramatically, a lot of people got in at the top. I think theres two apples here. That is a apple a great engineering Product Company and whether you think tim cook is passion on doing a great job post steve jobs is one thing. But i think that they are doing fine. They did miss a bunch of quarters. Where einhorns really right is they are antishareholder friendly. I mean, if the ultimate thing that comes out on the proxy is we are against something that was proposed that is reasonable, shareholder friendly, that what does that say . What does the statement say . Why isnt the dividend bigger . Why isnt the buy back bigger . Most companies would not tolerate the treasury stance of apple. They would just say its not good enough. And i think einhorns right on that. Solution, all i can tell you is when you discuss with a company an idea and then you see a proxy, the proxy that your idea is wrong, given the fact that they have used cash, i dont know, intellectually, apples position cant be defended. Trying to head him off at the pass. Right. Right. Doesnt it say that whatever their reason is for saving this money, they havent communicated it effectively . Thank you. Right . Yes. There must be a reason. But say it. Say, okay, look, we are looking at developing they have said they could be opportunistic on acquisitions. I like acquisitions, because theres so many great social Media Company these could own, netflix would be fabulous to compete against apple, amazon what really worries me here is the reaction is so bad right now. He is just trying to fit, he is a large shareholder, he has got idea. Hey, put it up for an idea put it up for discourse. We will talk more about it after the opening bell. Also this morning, why are corporate insiders aggressively saling their shares . The reasons behind that trend and what follows suit and which stocks will be the biggest gainers out of the gate, especially on the retail front . Opening bell is next. Investor. Yeah, im a serious investor but im a busy guy. It used to be easier but now there are more choices than ever. I want to know exactly what i am investing in. I want to know exactly how much im paying. I want to use the same stuff the big guys use. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. [ male announcer ] at his current pace, bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an architect with two kids and a mortgage. Luckily, he found someone who gave him a fresh perspective on his portfolio. And with some planning and effort, hopefully bob can retire at a more appropriate age. Its not rocket science. Its just common sense. From td ameritrade. So much discussion on am, havent got tonight bank of england unchanged, appearance by mark carney in front of the British Treasury committee. Did you see that . Testifying for a three hours about nominal gdp targets. A good package . Did he get too much of a house allowance . Why did he take the job now . We had to hear he has got a kid in high school. He has got another kid moving out. It was a grilling. Brutal. You couldnt look at the guy for a while. Wow. So hard. Go into what draghi was saying. The dow up seven points, the first singledigit move since december 12th, believe it or not. October, we had a string of five of 11 singledigit moves. A long time since we have moved that little. Take a look at the opening bell here. S p at the top of your screen, the big board today, the harlem fine arts show celebrating black history month. The nasdaq, the consul general, the peoples republic of china, celebrating Chinese New Year this sunday the year of the snake. I dont know if that is good luck year or not. I nose dragson a good year. Extremely auspicious year. You are born in the year of the dragon it im year of the dog. Any idea, guys . No . Ox. Youre of higher stock. Lets hope. Every year to be that year. Fix said. I would point out that the chinese consulate, saks says people from china come n ralph lauren call said russian tourist and Chinese Tourists driving the ralph lauren success in europe, pretty remarkable and they made a point that latin american tourists are starting to drive things. These counsuls are not idle. Visas to come to our country, saks doesnt report monthly numbers. 1. 82, beat by 3 cents, 14 billion transaction, 14 yearoveryear for visa. New ceo, owning the quarter for the first time. Wells fargo downgrade . People are thinking this group