Losses, but some encouraging pmis in europe, especially in spain. Our map begins with twitter. Being slapped with a big downgrade. Sirius xm moving the other way. Liberty offering to make the service a wholly owned s subsidia subsidiary. Apple reportedly snapping up snappy labs. Apple is close to breaking below its 50day moving average. And to buy jose banks, 57. 50 a share. Twitter downgrade. By Morgan Stanley to underweight from equal. Citing growinging competition from facebook and google. The call comes two months to the day that twitter priceded its ipo at 26 a share right here. The stock is now at 140 . This is scott, the analyst at Morgan Stanley. Wellknown. Helped take Facebook Public and now feels they have the advantage in this race. I think facebook, robert pack, sun trust, who was the first guy to say listen, twitter could be amazing. I criticized him, saying is he trying to get the jump . He was. He really pushes facebook today. He downgraded twitter before. I think people are struggling with how to value twitter. Given the fact that i said something on friday, i never thought it was going to be continroversial controversial. I said twitters much more expensive than facebook. How . By every metric. Why would that be controversial . When people love a stock, they love a stock. I wasnt going to play solar city. Twitter says were not going to let 1999, 2000, were not going to be pushing stocks. Facebook does have value and an article in the wall street journal, hey, guys, were a public company. Lets get serious. Dont mean to take away from your serious scoop, facebook is so much cheaper than that story in twitter. Encapsulated that moment where he really transitioned. Suddenly, they said mobile is is not only important, but theyre going to figure it out. So rarely do you have executives saying listen, we were caught totally unawares. You see it in football. Look, we just did not anticipate the pass. In this, we do not anticipate emotional, but were going to win and then they win . That team at facebook is very undervalued still. Couple of other interesting calls embedded. Google, price target goes to 11. 72 from 10. 75. Calls youtube the most underappreciated asset of that company. This is the largest. Ubs says the target is 1300. Theres so much leverage here. So many things that google is doing. Every time you turn around, google has evolved in something they havent even started monotizing yet. I think that company has the most irons in the fire of any company i looked at right now. Around the world. All right, well see. I think their target, ms is the target on twitter is at 33. Youd have to see some blood letting to get back to those levels. 14 times revenues. 84 times ebita. If you get on board here and start rationalizing, i remember during 2000, youd say, at this point, in 2010 numbers, the stocks cheap. Im not seeing that rationalization for twitter. I applaud the analysts for being able to say this one, we cant figure out. Wall street typically tries to figure out, if they cant, they come up with a rationale. Doesnt mean the stock wont continue to go higher. Got a soft float, got a lot of very sided investors. I find that twitter is thought of what look at all the things that could happen. First facebook thats happening. This is like amazon. Amazon ever said you know what . We are doing so well we could offer dividend. The stock would be cut in half. You want to growth to be in the twitter does have unbridled growth, but we cant value it. Finally, it does come on the heels of a lot of downgrades. Cell gene. Met life, going into the new year with discipline . Ive gone through the cell celgene downgrade. I wish they would have chosen the keystone name to not been celgene. Theres a lawsuit involved. Theyre saying when it launches, it isnt that good. I think that the street is still fighting the upside. They just dont want it to happen. Boeing has a contract announced this week. It was breathtaking. This was a monumental move. They just dont want to get behind this market and i think thats a shame because they could be very helpful in the stocks that could be undervalued. At least theyre going after the stocks that are overvalued. Lets talk about a stock that comes up on your show. Number one. It is going to be up nicely this morning. Liberty media lake late friday made an offer to make the service a wholly owned subsidiary. The deal as offered i is. 7. 076 of a liberty c share. Now, these dont yet exist. Theyre going to change them for the as and bs, then issue as well that ratio of said c shares to sirius holders. You would end up with holders owning 39 of Liberty Media, which would be the 100 ownership and also, the stake in charter and the live nations. But not quite a pure play. The argument being made, were giving you a liquid security, a slight premium. Of course, they control the company, but it will require a special committee to negotiate on behalf of this minority holders annual vote of the majority of the minority. To approve it. Best guess is they go up a bit here in terms of what theyre willing to offer on that rh owe, bump it a bitten, and then get the deal done and it will enhance their Balance Sheet to the ability to be able to borrow more or free for a run at Time Warner Cable. If you own sirius, then you are going to own this new security. If you buy here, how do you know youre not overpaying . Well, youre making a decision on not just the largely the prospects of sirius and to some extent, there are some other assets. Shareholders say weve got a pretty liquid security to begin with, but libertys argument, 100 ownership. Even better perhaps or more than we are right now. They already run the management. There are a number of arguments theyre going to make as to why its your benefit, but youre right. You may be want to be careful here. Its running up in part above the price implied by where libertys stock isctatioexpecta. Now, the lmca that were showing on our screen, what is the relationship between that and the potential new stuff . 076 of new share, which is just that, thep you get 21. Theyll do a, essentially a stock okay, the two most popular. Thank you for mentioning. I think that taking advantage of the last quarter perceived to be weaker. Saying listen, this acquisition, this is brilliant. Im just going to tell you. This is approved. Yes, it did. You like the management of this team. You like greg buffet, historically. I dont mean to put you on the spot. Extraordinarily in depth when it comes to financial maneuvers, no doubt about it. And strategically. Many believe they have a very strong and well what i think is is interesting here, jim, on the conference call, well talk more about this shortly, they said theyre fully behind the strategy and theyre not afraid of their competition and they are happy to get in their ownership stake because they believe and if any thought it would go the other way, which it would be spun. Pandoras going to get a 6 pop as well. Wonder what that says about the radio market as much as libertys own maneuvers. Theres a renaissance here. We see a lot. So, renaissance in cable, tv. Lots of areas of the market were written off going into the last six months of last year. The insurance stocks. Doing a lot of chart work and seeing holy, cow, there were areas where people just said, this business is dead and im alive. I happen to think by the way that sirius is a great monopoly. I will throw one idea out at you, which is once they consolidate this, if that occurs, which is likely, nothing says that liberty wont try to buy. Oh, man. Right . Oh, man. Thats got to be something to think about. You boy,s, you know the spot fi pandora universe. These are loved. Youre talk iing about cult status as a user. Once youre in that ecosystem,al la apple, its very hard to get divorced. I was with with someone this weekend, is this Coleman Hawkins in jazz. No, its whatever spotify is playing for jazz. My kids, i asked them, please buy me all mozart. So true. Its goin to be a fun space to watch. When we come back, mens warehouse, man, this story goes on and on. Should you like the way it looks . And speaking of m a, stay tuned for an exclusive interview with libertys cfo. Take one more look at futures as we kick off a busy week. Jobs number on friday. Yellin possibly confirmed today. More sidewalk on the street from post nine in a moment. And they eventually went away with the promise of getting higher. Next thing we know, we get the pack man defense. Mens warehouse is the bigger of the two in every way. It can also borrow more and has moved ahead to an offer of 57. 50 and going after two board members. The window on those nominations is open. I think until january 17th. Two are more important. The two that are up,57. 50, want to sell, that remains up to a question. Its not an insignificant multiple, jim, but there are those who say it could be higher. Clearly, neither one of them wants to be the seller. Both want to be buyer. You look at the hurst deal. In that deal, look at this fire. What happens is the acquirers keep winning. This would be a fabulous deal for mens warehouse because they would own this category of discount mens apparel and that, if they own it, thats a win. Mens warehouse goes higher. Todays not a win for cnbc. Did you see how many jos a. Banks mens warehouse has their entire board of directors up. To want to come back with its own tinder offer, although financing for banks is more in question. The its the smaller of the two questions. It had come in partnership, but raising the money for a tinder offer would be more tenuous, but the entire board of mens warehouse comes up not a staggered board, so just something to keep in mind. You are going to like the way you make money if you own mens warehouse. We do have ge buying a unit from thermo. A little spectrum for sale. I wonder if were going to see the coffers open up a little bit. Of course, monday. Remember what we used to talk about. You come in, the bankers would be working. What did we call it . Merger monday. Maybe somethings changed here, david. Maybe we no longer shrink to grow. Maybe we grow to grow. Well see. It does have a feeling that this year, i dont even want to go down that road. But ml has been the ceo, saying we do this Charitable Trust thing. Gm said, dont you listen, the man is saying the company is being recon figured. You think thats a reason to not be in it . Thats a reason to be in it. Yield is 3. 2 . This is not a bad piece of paper to own if you think the pmi ur ozone number which came out this morning is going to be good. Ge is going to be related to energy and health care. Well used to own our company and some of us be compensated to a certain extent, which didnt work out that well. People dont care about how were compensated. No, they dont. They dont even care to have us compensated. How do you get those two for one suits . My suit, its like i got to mortgage my house to buy a suit. I had a from meet the press. I got to tell you, i could live in it. It felt like butter. Jim loves his clothes. I do. I love clothes. I love clothes. Real quickly, i think i confused people on the liberty sir yous. Take a third of liberty. Youre going to be tripling the amount of shares, so that ratio,. 076 is off of a third. So take the stock price, cut it by a third, then apply said ratio. Get to what its worth. An sat question. I got to go get my tutor. I apologize if i confused people. Im sure that cleared that up. Im going to defer you. When we come back, making money on the first monday of the new year. Get ready for cramers mad dash as we count down to the opening bell. Take one more lock at futures. The dow has not had two days down consecutively since december 11th and 12th. More in just a moment. Hi, im terry and i have diabetic nerve pain. I worked a patrol unit for 17 years in the city of baltimore. When i first started experiencing the pain, its, its hard to describe because you have a numbness. But yet you have the pain like thousands of needles sticking in your foot. It was progressively getting worse, and at that point i knew i had to do something. When i went back to my healthcare professional. Thats when she suggested the lyrica. 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About six plus minutes before the opening bell. Some Research Moving stocks this morning. Elon musks solar setting, another one, that he owns. Goldman sachs goes from whole to conviction buy capitalizing on fast rooftop growth. This is a hard to value stock, but i know that if you want to go to rooftop way and you can get your electric into the grid, this is a remarkable company. I know people who have used and loved it. At the same time, it is hard to figure out what is it is worth, but goldman says it is a terrific economic leverage play. Dont worry about it. Dont worry, be happy by solar city. Conviction buy. Didnt even go to buy first. Now, what is the Business Model here . Theyve put the things on the roof . They finance it. And you know, david, theres a whole generation of people we often forget who just really believe, i put in on my roof. In some state, i can get a rebate. Other states, its so impossible. Youve got to look at state by state, but some give you a credit and a lot of people are going to criticize this, saying this is just another opportunity to capitalize on what the laws are that are pro solar, but boy, i wish the government did this. Youve got to take a shot, i suppose. Lets talk ebay. Last year, this stock did not perform well in contrast to amazon, for example. Been a stock my charity struggled with and basically gave up on. Earnings are at risk. Now, we often think about this company, paypal, got great growth, but visa and mastercard, particularly visa, because mastercard is going to be split because theres too much excitement. This was one of the winners come out of internet 2. 0 and it just has no momentum and a great manager, youve got to be careful with this stock. When they say the numbers are at risk, i think they mean it. I think its going to be dangerous. Morgan stanley again, the one with the downgrade this morning. Goes back to that level, david. A lot of people have been saying reverse head and shoulders. I only mention this stuff because the charts have been so right from 2013. This is going to disturb the pattern. I think you need to trend or sale ebay based on this particular downgrade. All right. Meaningful research. Were going to be watching it in the post market, which begins less than four minutes from now well be talking to greg maffei on his companys offer to buy the rest of sirius satellite. Opening bell coming up after this. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Youre watching squawk on the street. We just got news from fedex. Its announced a 2 billion note offering as well as an acceleration of its sharing purps program. Going to use the proceeds to fund that share. I think its up 2 in the premarket. What a remarkable 60point run. Some were unhappy with the way that business has been rub. Can we please focus on underperformers . This is one of the great perf m performers of the particular era. No doubt. Not a Package Delivery company, but again, this is the big theme from 2013. I know there will be people out there who say this is phony. Its all because of the fed. You know what . You can go sell a million shares of fedex right here. I dont know whats phony about that. Gains last year are 50 plus percent. Unbelievable run. Theres a look at the s p. Nice breath at the hope and at the big board, the National Committee on u. S. China relations here for the fifth annual forecast of chinas economy forum. A lot of people taking pictures on the floor. At the nasdaq, sprouts, farmers market, celebrating one of the high profile ipos of last year. I was buy the whole foods yesterday in brooklyn. Theres a lot of competition in that seg m. I like the guys from sprouts very much. I still say whole foods because of mackie and we are seeing, when i talk about whole foods, i know im regarded as being worshipful, but i think that the problem with the idea of being worshipful is people dont understand the power of this thing. Okay, the power of the theme is so incredible and let the walter rob, people regard this as the play on health. Just like gmo. You go there because of Good Housekeeping seal of approval. Thats why that stock is still buying. People are saying no. Go watch what walter robin said on mad money. This stock isnt done. And the expansion accelerating. And this cannibalization thing. Wrong. This is not the donner party. You like their cook book, didnt you . Thanks for going there. Great. Weve not touched on apple yet. This purchase of i think its called snappy app, this app that allows you the take pictures at 20 to 30 frames per second. But the stock, jim, back below the 50day. The chatter is theres something wrong at apple and i can tell you, look, you know what . So sh let it go below the 50 day and then buy it. Its just not an expensive stock. It doesnt have googles momentum. It does have things in the pipe that maybe blow away, but apples not an expensive stock. It did have a Straight Line shot from 380. Were almost back to that level to a tenyear over it. Yeah, actually, we are. Interestingly. Well see. He greatly diminished going into the, were aways from the meeting, but going into his proposal now. The fear here is so palpable. This is a firm standpoint research. But suddenly, theyre on the map because they have this. I think tim cook is going to show people stop doubting us. Really . Yeah. Why do you think that . Because i think that the new products are fabulous. What new products . Tell me. I love the phone. Those arent new. Well, theyre going to have new it ration comi