Transcripts For CNBC Squawk On The Street 20140324 : vimarsa

CNBC Squawk On The Street March 24, 2014

Is sometimes good news. A big week for ipos, more than Ten Companies set to go public, including king, maker of candy crush. How Many Companies expected to rally when they start trading. Apple in early talks with comcast about a new streaming television service. So the big question is this the apple tv weve all been waiting for . First up, s p hit new intraday highs on friday, ended up closing to the downside. Over the weekend, on cbs sunday morning jim cramer offered best advice on best ways to achieve Financial Independence and secure retirement. Take a listen. How do you go about managing your money . First, theres two different kinds of investing. And thats why you should have two different portfolios. Youve got your retirement portfolio, selfexplanatory, where you want to keep money in tax favored vehicle like a 401 k or individual retirement account. I. R. A. For short. Nice work. Fits what youve been saying about the market having two personalities, too. Exactly. The people, discretionary accounts should consider the higher flyers but one of the things thats worried me, weve seen, lets say, all of the crm companies, Cloud Companies, theyve been getting killed while new Cloud Companies, that i regard as their inferior spurred up in the marketplace in the ipo. Senior Biotech Companies annihilated last week but not new ipos. That not tenable. Something has to give, and give this week. You cant keep having the second tier ipos do better than the first tier existing companies. You think fridays reversal was im watching gill add, henry waxman, i knew him from the early days, writing a letter, exorbita exorbitant. The Insurance Companies welcome it versus the cost without it. A gill add shouldnt be hit the way it is. Charges come in, watching the 50daybreak. This has to change. If we dont see the big biotechs stabilize here, and i dont think they will yet, because i think sellers come in immediately when they see them up, then this whole ipo window i mean weve got way too many ipos. Last week the ipos were so thick that you could not keep track of the amber roads and the paylocities. Salesforce. Com is down. You cant have two markets. House divided will not stand. Bracing for another big week in the ipo market after we saw a lot of companies skyrocket in their debuts last week. We mentioned king digital, maker of the popular game, candy crush. Cbs outdoor americas, advertising unit of cbs. And Delivery Firm grub hub, raising anticipated size of its ipo to 178 million. Cbs outdoors the big one here this week. It is. Thats the one that seems the most credible. I have to tell you, when i did comps for candy, for king, it not expensive. Making a lot of money. Doing well, if they use if they use the range, if it doesnt go nuts, people are going to say, hold it zynga, no. This is a Better Company than zynga. Why . They make money. Because they make money. Zynga was losing do you know zynga had players dropping out, even as it came public, they came public too late. The business was rolling over. This company, candy crush, hitting this is a very important game that is still moving up. So, if they price it where theyre talking about, that should not be the calamity. Im far more concerned about any company that claims cloud. This morning cisco says were cloud. Ibm says were cloud. Cloud is something that makes it so a Company Makes less money, not more. We see this software service, they do human capital, the niche of what we saw software as a service for last week was truly worrisome. If these companies were so great, why didnt workday buy them . Why didnt cornerstone buy them, oracle . Theyve always been a quiztive. But not these companies. I dont trust these companies. Take a look at fire eye, goes to 96, security, unbelievable. Stop the target thing, if target listened to them. 96, goes to 82 on 14 million shares and goes to 68. When did we last see that in one other time i ever saw that, 2000. You cannot do these stocks that go up big, do a secondary where the sellers are so happy to sell, no matter where, and the stock gets killed. Fire eye, a great company. But a big explosion on the float on that fire eye. Yes. Thats what causes things get loose. Yelp today recommended i think yelp is a terrific company. I do not want to see a second, gigantic yelp secondary. We had one before. What that says the insiders are like, all right, hey, we know our stocks inflated. Anybody thinks that their stocks inflated, you have to wonder why youre buying it it. Yeah. Jmp outperform. Yes. Yes. I look at yelp every morning, i have a restaurant, its powerful. You dont want to run afoul of it and the app is great and mobiles great. Again, its an expensive company. You dont want to see big secondaries. Cisco, spending a billion over the next couple of years to get into Cloud Computing services. Too late to take on amazon . Bad news for the rack spaces. Rack space, i dont trust. Its always too late to take on amazon. I was out in seattle last week. Yes. Some of the they were grateful zulily could beat amazon. You need to come in against an amazon with a superior product. I dont know how cisco does that. I just dont know i mean at that particular aspect of amazons business is extraordinarily good. Interesting piece in the journal telegraphing what cisco may be up to. Another piece in the journal, apple stories in the news. Apples in early stage talks with Nbc Universal comcast with a service that would stream apple content to tv sets bypassing webrelated congestion. Secondly, apple considering a muse exserviic service to comp spotify. Apple sees sharp decline at itunes store. Sounds leak the comcast talks are in early stages, and people are talking with everybody all the time. Right. Whats important, people have been saying when is apple going to do something tv . This is something definitely. If you go back over the history of what steve jobs did, he was not cooperative. He was saying, by fiat, here what happens were going to do. Comcast, Parent Company of our network, cannot be ruled. But a cooperation for a box that is more intuitive than your current box, i think, would be welcomed by a lot of people. A lot of discussion how it gets around the Net Neutrality rules. Who retains closer relationship to the consumer. Do you log in with comcast or apple i. D. . I dont know. Netflix last week complaining, after they had a deal with comcast, did they anticipate this and say, hold it wait a minute, maybe our deal isnt as good as what apple could be doing. Apples being prickly, watching everything that is said, i dont mind that. One thing they will not like, they will not like the comment this morning from ubs saying apple could surprise the upside here q3 launch. They are adamant, no one knows how theyre doing, so stop making projections. You have ubs note, that is moving up the stock, and you have the comcast news, and i would say both are not something you want to hang your hat on, because there are many discussions and every attempt that ive seen to gain what apple is going report has failed. Be careful, apple, on the way up. I think sellers come into the name. Thinking of a tweet someone sent to you saying amazon should have bought netflix early and wrapped it into prime and you said, youre right. Would have been something. When netflix when netflix was at 100 or even 150, this is what you need. Netflix retains its glow. Would have been unbelievable for amazon and netflix to combine. All of the way up, people thought netflix was expensive. I didnt. Now i think its it too late. Too late to buy netflix. But also too late to take on amazon. One corollary, twitter is shutting down its Music Service apparently due to lack of demand. I wonder whether or not you think theyre beginning to put some caps on twitters Growth Potential . You know what . Twitter has to make an acquisition, too, and make it so you dont come on to attack me. Got to be other reasons to be on twitter. Of course being facetious. Twitter needs more people on twitter the way that they watch tv. In other words, hey, im not going to tweet but i want to know. I find, for instance, when i watch twitter, it says, you got to put on right now, put on this Wichita State game and drop whoever im talking to, see you later, ive got to do this. Twitter, a couple people im following, they tell you what to watch, what to put on. Twitter has to become your service for people who want to follow to break out. This music thing is not encouraging. Twitter has been a stock thats been its own bear market. Back to 50, not too far from 70 a while ago. Finally, after last week and all of the yellen madness i was off but you were working hard, you were on the road the dax, nikkei, russia, brazil, have taken a spill. Yes. Some people might be wondering how long until the u. S. Has to follow suit, or do we have to follow suit . You mentioned at top china, pmi was bad. Stocks doing well thursday and friday were considered to be china plays. That seemed to be misdirected to me. I think that got to focus on europe. I saw france pmi, i said, france was a big gap. I dont think you can keep these separate for too long, unless we get tremendous u. S. Data. We had strong u. S. Data but not so strong we should forget about europe. What happens, one day we come in, europes down big, we say why didnt we heed that . Im more cautious about europe, the froth and ipos. Im cautious that the idea where people are buying stocks related to china. Chinas not doing better. I think theres another decline in growth in china. It doesnt sound to me like you think 1900 is in the offing . No. Im concerned. Id love to see banks go up. We have ccar, the Regulatory Authority which is able to return banks can return capital. And low multiple tech did great. While youre away you saw microsoft go higher, hewlettpackard. Why are they going up theyre cheaper than sales force. Give me something else. No, i dont see any signs those companies are doing so well. Oracle did not deliver a great quarter. Barely got hit. Its regarded as cheap tech people say, why did i like cheap tech . Buyers remorse in that group. Keep in mind as were on the cusp of earnings season. Last week. Thank heavens march madness ends as Earnings Seasons hard to look at baylor and focus on lululemon. Make your choice. Well talk about the 16. When we come back, rebounding economy is encouraging people to invest in themselves once again. Who is saying this . Whats the uncommon indicator hes talking about . Stick around for that answer. The coceos of warby parker are back. Setting its sights on bigger growth. One more look at futures. Moderate upside after the intraday reversal friday. More squawk on the street in a moment. We want to update you on the search for flight 370. Chinese search planes spotted several objects in the indian oh than could be debris from the missing plane. Ian williams live in perth, australia, with latest. Good morning. Reporter good morning, carl. We had two potentially significant sightings of objects in the ocean today. But as of tonight, neither have been confirmed as being related to flight 370. Now, the first was spotted by a chinese plane, which was flying at 33,000 feet, was on its way back from perth, having joined the search today. They reported seeing two large square or rectangular, white objects below the surface as well as a field, an array, of smaller white objects covering several square miles. Now, an American Military p8 aircraft tasked with going to check that out but when they got to the coordinates they couldnt see anything. The photographs that were taken by the chinese are now being analyzed and were waiting for more details. Later today, an australian aircraft also spotted objects in the ocean. Described as a circular piece of debris, green, gray in color, as well as orange rectangle. Now, these have also produced a further search with an australian ship heading to those coordinates to try to check out precisely what that was. Now, certainly a lot of hope raised today by both of these sightings but still nothing definitive. Although, we may learn more in under an hour when the Prime Minister of malaysia has scheduled a press conference. Not clear what hes going to say, but its unlikely he would do that at this time of night unless its significant. Thanks for that, as interest in that story continues. Yes. This is look, obviously, you dont want to equate something horrible with march madness. If you want to get people go, give them your theory. What makes this more complicated, they lose thousands of containers that fall off cargo ships every year. I know. Well see what happens in an hour. I was on a plane coming back from seattle. Pilots come back and offer thesises everybody may have suffocated, theres an air problem, terrorism. The longer this goes on, i find it amazing, everybody has a theory. Coverage, in all of the papers, sayser thi eersays, thi york idea. Remarkably sad story it doesnt end. Cramers mad dash, the open bell. More squawk on the street live from nyse straight ahead. Defiance is in our bones. Defiance never grows old. Citracal maximum. Calcium citrate plus d. Highly soluble, easily absorbed. So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Anbe a name and not a number . Tor scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. music defiance is in our bones. Defiance never grows old. Citracal maximum. Calcium citrate plus d. Highly soluble, easily absorbed. We begin to rock steady steady rockin all night long just about 8 30 before the opening bell on a monday. Lets get cramers mad dash. Looking for keys to the market. Youve got one. Yes. Stratus, 3d printers part 0 the selloff. This morning, an upgrade. Those is jpmorgan, hold to buy. This has to hold because 3d systems, x1 annihilated here. If this can hold, youll see a maybe more money flowing back to speculative area that has been a source of tremendous pain. Interesting. New skin, youre watching, too. After this fine, people thinking that nu skin one of the mid Level Marketing everyone just says, listen, its just a company, dont ever label but only 500,000 plus fine. People felt that china was going to kick them out. Youre going to see herbalife trade up for this and because carl icahn is putting his people up three board seats. Next thing ackman, trying to destroy herbalife. Im sure hes going to say people going on new skins board from icahn herbalifes board. Herbalifes board. Because nu skin didnt get kicked out, i think ackman would sacrifice everything to destroy herbalife, including intimidating people from doing anything with herbalife. Icahn was willing to press this, given the fact that ackman is just trying to get this company to be bankrupt. Take it to zero. His hatred of herbalife and the ability to do it and people love what i see more people loving his decision to end herbalife. I find it amaze, its a hedge Fund Decision to end a companys life. You know . I think thats what he want to do, whether right or wrong. Sure. What strikes me, we had oneyear anniversary of the showdown on wapners show. How long can this go on . Until ackman takes the stock to zero. Hes got people protesting. He got the Government Authority to look at it. Sure. Ackman wont stop until it goes to zero. The people of herbalife, the board, its irrelevant because ackman wont stop. Its a Hedge Fund Manager who wants his partners to profit. Hes going to give this all of his gain but remember performance dictates. Watch it. Hell never finish until herbalifes out of business. A lot of people work for herbalife. But this Hedge Fund Manager decided to target this xp. I wonder if all hedge funds will start targeting companies and coming up with dirt on them. Its a new thing for hedge Fund Companies to destroy. The company doesnt care. Its not arthur andersen. So thats ackmans job. Hes going to say its going to implode himself. He wants it by the end of the year and it seems like a helpless animal. A caged, helps animal. Almost his moby dick. Some people think it is. I visited starbucks last week. I think people have to understand, a Hedge Fund Manager has decided to destroy a company and dont get in his way. He wont stop. Just call me there you go. Read the book. The opening bell a few moment as way. Squawk on the street, back in a minute. [ male announcer ] the founder of mercedesbenz once wrote something on a sheet of paper and placed it in his factory for all to see. Four simple words where the meaning has never been lost. The challenge always accepted. And the calling forever answered. Introducing the allnew 2014 sclass. Mercedesbenz. The best or nothing. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. On the street. Opening bell set to ring here. Interesting name, tiffany. Earlier in month, jim, citi took it to a buy and others following suit. Goldman goes from conviction to buy. I wanted to buy tiffany more. Then i said, maybe the Gross Margins tiffany is a place to hide of the high you know, people are worried about coors. Herb greenberg, contributor and reality check on the street saying be careful coors. A lot of p

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