How come in new company with lots of competition is worth 2. 5 billion . Varney and company is about to begin. Charles is with me. Two stocks, we are going to hit right off the bat. Two names, widely held, dow stocks, they seem to be scrambling to reinvent themselves. I am starting with ibm. The chief executive officer made it clear, she said and i am quoting, she said they are not back sitting hardware. They are staying with hardware. That is not much of a reinvention. Charles if i am a shareholder looking at 2013 and i see your hardware business was down 18 and Gross Margins were at 35 to 39 my question is why not. They are accepting some of their architecture, sold them for a song. They did admit they had Serious Problems and want to focus on data. Theyre going to have to make major acquisitions. I dont think they can do this stuff internally. A lot of hot companies out there. By your way back into the game. When ibm had similar problems, six years later everybody thought they were going out of business. They can reinvent themselves, but if they wait too long it will be a slow and arduous journey. Go out and do something, show me what youre going to do. Stuart mcdonalds expending their own test. How is there makeover doing . Charles same thing. They all had heart attacks, just four years later it was 14. The same scenario. They did the coffee thing, they did a whole bunch of changes. The good news is they are growing around the world. Americans taste is changing. The stock is up big today. Stuart we are listening to, Charles Payne. If youre looking for big movers, look at the retail group. Most are flat because the dow is up 32 points but the retailers, some of them are taking it on the chin. I will start with american eagle. The weather rears its ugly head. They say the Severe Weather hurt demand. Profits up at urban ou outfitte. The stock down 5 . To target, being sued by swatch. Target illegally selling watches that topic is products. Target doesnt matter. About 61. Checked the big board, the overall market is pretty flat, up 29 points. Guess what, they found a way around the foodstamp cuts. They are doing it. There is a rule that says you give 1 the person who gets the 1 signs up for food stamps. Maybe 1800 per year. York added 6 million for heating, and extra 500 million for food stamps. Where is the cubs . Republican from louisiana. I am not blaming you, why cant you stop this kind of thing from happening . The whole country want to reform food and cut it. We instituted 40 billion cut with a lot of reforms in this and we could not get it through the senate, the whole thing fell apart. We had a compromise bargain between the house and the senate, this is what we get. Stuart they are gaming the system. They are gaming the system. We have not only burgeoning entitlement programs, we have waste, fraud and abuse through all of these programs. Stuart it never changes. I chair the Oversight Committee on ways and means. 4. 2 billion per year in fraud every year. It is because Social Security number is not required. We passed legislation in the house and we cannot go the senate to go along with us on this. Stuart even when the source of that fault is staring you in the face. Staring you in the face, latent. It hurts these programs, it hurts the integrity of these programs and there are those who actually need help and the money does not go to their hands. Stuart you cannot cut it back much either. I have to ask about obamacare. I have asked all our political guess the same. Most say we want to kill obamacare, we want to repeal it. I say yeah, you want to, but you cant. And you agree with me, dont you . I do in the sense we will not get the senate to go along with that. We have had some success, the entitlement Longterm Care Program repealed, it took me three years. I had no democratic report to start. We really cast sunshine on the faulty premise this whole thing was built upon. Over time i introduced legislation and lo and behold we got it passed. Stuart there are some republicans who say repeal it, repeal it, repeal it. Ted cruz said we can repeal it even with president obama in the white house. It is impossible, congressman. The president will not sign onto an appeal. Stuart we are stuck with this thing, arent we . Until 2016. Stuart and then it will be difficult because parts of that law, keeping those in getting rid of everything else. We have it around our next, dont we . This is what happens when you try to reform one fifth of the economy with massive legislation. Many unintended consequences, complications, we have seen not only faulty policies but really bad rollout. Stuart thank you very much for joining us. Why are you in new york . You are from louisiana. It is cold. Had a couple of meetings appear. Talking to Energy Analyst trying to get insight. Stuart a pleasure to have you on the show. The l. A. Times reports apple is pressuring major record labels to offer new releases exclusively through its itunes store. They want their stuff to be apple first and nowhere else. That is what they want. Exploiting a strong market position, isnt it . Nicole, check out the stock, please. Nicole it has been the behemoth over the decade but that isnt slowing. Up 1. 4 , working with the Record Companies trying to see if they can have a little grace to beat out spotify and others. We will see whether or not they can use their multiples to do that but trying to beat the streaming services. Your smart phone is now like the sony walkman. They want to try and control the downloads. Have the users with smart phones are streaming a little les lessn that are doing downloads. Stuart i just have to figure out how to use this thing properly. Nicole details. Stuart thanks, nicole. We appreciate it. Time is money. He is 30 seconds worth of headlines. Microsoft xbox one highly anticipated scifi combat videogame released today. The Company Hopes the release will boost consul sales. So for the playstation for has been outselling the xbox one. The chairman wants to buy up tmobile. If a deal happens, it would combine the number three and number four wireless companies. An app that can tell you how you are feeling. Speak into your smart phone and 20 seconds later it gives you an emotional analysis. I bet you cannot wait for that one. Not a good sign for the millennial generation. 18 of people ages 1825, only 18 of them, less than one in five can answer for or five basic financial questions correctly. What do they ask . Jennifer is here, you have the questions, youre going to post those questions to me. I am putting you on the hot seat. Stuart if i get them wrong i am really up a creek. I want the emotional monitor thing, i want everybody feeling really good about this lineup. Suppose you have 100 in a savings account earning 2 interest, after five years how much money would you happen that account . Stuart multiple answers . More than 102, exactly one or 2, less than 102 . Stuart more than 102. You got it right. Number to come much in the Interest Rate and a savings account is 1 per year and inflation is 2 per year. After one year with the money in the account climb more than it does today, exactly the same or less . Stuart it is less. You are doing pretty well. He went to a good school or mom and dad helped you out along the way. Number three, if Interest Rates rise, what will typically happen to bond prices . If Interest Rates rise, what will typically happen to bond prices . Stuart that will be the tough one for a lot of people. Interest rates rise, bond prices fall. When i was 18, 19, 25, i didnt know that. It tricks people all the time. Number four, true or false, stuart, a 15 year mortgage typically requires higher Monthly Payments than a 30year mortgage but the total interest over the life of the loan will be less. Stuart correct. Good job. Stuart that is relatively easy. Last one, buying a Single Company stock usually provides a safe return than a stock mutual. Stuart safety comes in a basket of stocks. Mutual fund would be safer than buying microsoft, which is what i did all those years ago. I however, when i was that age and not so sure would have gotten four out of five. Might have gotten three out of five. Youngsters dont understand. Charles we should be fair to millennials. The older folks are doing better but millennials are stressed about debt and here is the interesting thing. They are financially satisfied as the boomers. Stuart i give these folks credit. I dont think i i would have gotten four out of five when i was 20 years old. I might have gotten two out of three. It is interesting, another thing came out that said 11 states have received Financial Literacy because we are not teaching that. Charles how do we get that changed . There seem to be a couple of states mandate kids learn this in school. I feel it should be incorporated in l. A. Relevant for people, not just talking about it. It is so great you bring kids together incorporating it in their daily lives and doing real things. I was teaching my fouryearold money at two and a half. Stuart for me it was cleanse. That was interesting. Im glad i got them all right. And all night talk upon by the senate of Global Warming. How does Glover Norquist think about that . He is next. Stuart you know, stocks are pretty flat this morning. Something about the price of gold hitting real steady. That is where we are right now. Know the greek yogurt, looks like everybody is into it these days. The comp he wants to sell a state that values the whole thing. 2. 5 billion. This is a relatively new company, it has a lot of competition, so i am wondering about a valuation, but your angle is the American Dream. Charles the u. S. Market for greek yogurt over 7 billion in 2012. And they created this. He is from turkey. There it is. He came over here, his mother used to make yogurt from scratch, because its disgusting. It was watery, an opportunity came for him to buy a plant from craft. 1 million that did about 2 million in sales, didnt make any money. He didnt know what to do, told thehim to apply for a loan, he t a small business, spent two days with the business plan, but 10 of his own money, it took two years to retrofit this place, he brought over a master yogurt maker and a 1 Million Investment and will value it at 2. 5 billion right now. Stuart that is nine years ago. Charles somebody from turkey who was here. He revitalized the community, brought together whole industry by himself, the American Dream lives and i keep telling people people not born here can see it better than anybody else born here. Stuart his name is charles you told me to say with confidence and everybody will believe you. Stuart 30 democrats ended there all night talkathon. This was essentially a publicity stunt to push for a carbon tax. We have Grover Norquist with us. I know exactly what you think of the carbon tax, so dont tell it to sharply. Just for a second lets assume they got a carbon tax, they get what they want, what with that due to america . Tell us. Make us uncompetitive in the world. All energy and everything that has energy in it, pricing is out of the market. It would be more difficult to compete. Stuart you think there is any chance a carbon tax, do you think theres any chance eventually we will get there . I dont believe so. If the democrats were to capture the house of representatives in the next election, we will have a carbon tax. As long as republicans hold the house and if republicans take the senate it is even more certain. No, they will not be a carbon tax. What we just went through was a 15hour fundraising effort. This was cooked up at one of his come his promise to give 100 million to democrats to promote his Global Warming series, and this was to make him happy. For the 15 hours the democrats talked, they got 6 million per hour. Stuart it is an irresistible pot of gold for any government. Not just democrats, a lot of governments would really like the idea of a carbon tax because you can take money off of just about anybody everywhere and it is easy to collect, just a cash cow. You have to believe it is attractive. It is certainly attracted to politicians who want to spend more money. It woul to be toward the valued tax because as soon as you have a carbon tax which the industry which the folks who did not want it in their industry will turn around instead of a 10 tax on energy why do we have a 5 tax on everything and then 5 would grow as it has in europe 10, 15, 20 valueadded tax. Stuart lets not forget our colleague once said the best form of raising money would be a gas tax. He approved of it. How about that . You have 10 seconds, good dont be too nasty to charles. Bad economics, bad policy, bad thinking. Other than that, an interesting idea. Stuart youve used that line before, i know youve used that line before. He missed one here, everybody does. Stuart good stuff, appreciate it. Check this out, more geewhiz on varney company. One of the best pingpong players going up against a robot. The robot built by Chinese Company eventually lost the match 119. More on varney coming up. Its a growing trend in business do more with less with ss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. See whats new at projectluna. Com [ male announcer ] youre watching one of the biggest Financial Services cpanies in the country at work. Hey. Thanks for coming over. Hey. [ male annouer ] how did it come to be . Yours . Ah. Not anymore. Its a very short story. Come on in. [ male announcer ] by meeting you more than halfway. Its how edward jones makesense of investing. Stuart president obama peering in a funny or die video. This plays into the crevice of ed kleins book the amateur about the president. Yesterday he had more words to describe president obama. I think we can add two more adjectives about immature, somebody who things because they want something they should get it and that certainly describes obama. He things he should get certain things but he doesnt work for them, he doesnt reach out for them. And then there is a delusional president. This president has shown some signs of delusion. Stuart kind of harsh words but we as asked if he thought the president actions were amateurish. We got a few responses. Obama looks just like an aflac commercial, a lame duck hawking insurance. This one saying i call him an amateur for hundreds of reasons. Shameless nonpresident ial approach. Yes, an amateur for name that of actions and policies we welcome all and all comments especially if you disagree with me. It might just fly well i might say. But a couple of hall of fame shortstop this program in recent weeks and we asked to name the best short stock of all time. Here is what they told us yesterday. Who is the greatest shortstop of them all . Dont be modest, go ahead. I wish i could be ozzie smith, so i will say ozzie smith. The greatest compliment in my time. I was able to have similar success as him being a taller, bigger guy but ozzie smith would be my guy. Stuart we asked ozzie smith the same question last month, heres what he said. Stuart can he be objective, who is the greatest shortstop of al time, he would say derek jeter, wouldnt you . Well, probably. I would probably say it is a matter of opinion. Stuart ozzie smith is a gentleman. I think he is a great guy. Were awaiting derek jeter to weigh in on this program. You never know. Charles i think he will come on. Stuart we should ask him. Cannot call it government motors anymore. Why gm took so long to respond to and ignition switch defect. The stock has been down. Green mountain Coffee Roasters changed its name to kuerig green mountain. Charles probably 20 Million People in this country who bought a kuerig and never knew it was public because it was always called green mountain. Stuart our producer bought the stock on your recommendation. Charles that is why i am still on this show. Stuart do you think your doctor should know if you own a gun . President obamas nominee for Surgeon General wants you to have that conversation in the examination room. The judge is next. Are you still sleeping . Just wanted to check and make sure that we were on schedule. The First Technology of its kind. Mom and dad, i have great news. Is now providing answers families need. Siemens. Answers. So ally bank really has no hthats right, no hidd fees. Nts . Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. Stuart remember when we put jcpenney up there . Now citigroup says buymac that thing. 9 per share. The predawn deathwatch at five, right . First tim cook, now it is Richard Branson. He chimed in saying they should get out of our way. Now theyve released 7 million metric ton of Carbon Dioxide over the years. Sandra smith has joined us. What do you say to this two top executives saying dont buy my products if you are a denier, fly my airline. Do you think that could be a good move on their part . Sandra a lot of times they kep their emotions or personal beliefs aside and they buy it on the finances of the company. Now Richard Branson tim cook are saying not so fast. You should be thinking but these kind of things. In fact Richard Branson say more companies should follow what apple is doing. But i got all worked up looking at Richard Bransons footprint. Lets tape omak kee keep in mins preaching more businesses should be green has more than five states and homes across the globe which he does not fly commercially. He has multiple private jets, sometimes maybe only one flying on that jet. Many cars when he gets to those destination