Transcripts For KQED Nightly Business Report 20130914 : vima

Backfire on retailers . That and more for nightly Business Report for friday, september 13th. Good evening everyone. On this friday the 13th investors werent superstitious about buying stocks. The major averages were up. The dow wrapped up the best week since january and the s p 500 had the biggest weekly gain in months. September is historically the worst year of the month for stocks but not this time. Looking at the score card at this Half Way Point for the month, the dow and s p are up by 3 or more, but that could change depending on the outcome of crucial decisions in washington over the next few weeks. First a Federal Reserve meeting next week and policy makers could decide to trim back on the feds Massive Stimulus Program and the issue how to fund the u. S. Government and the debate on the debt ceiling and what the white house decides to do about syria, another biggie. Today the mood on wall street was upbeat, the dow rose 75 points, the nasdaq up six and the s p 500 added five. In the commmodities the price gold lost more than 5 this week to close just above 1300. Those rising markets, susie just mentioned not just this month but all year really fig e figured in twitters announcement it submit add confidential filing to sell shares to the public but stock offerings havent all been winners. In fact, some have been anything but. Seema mody looked at the numbers for us. Reporter tweeting, yelping, tagging, social networking is certainly hot right now but is it a smart investment . With twitter announcing yesterday via twitter it had filed for an ipo, wall street is drawing parallels between that company and other recent social media ipos, many of which have rough starts. Four months after facebook listed on the stock market, it lost half the value. Analysts were skeptical of Mark Zuckerbergs ability to make prices. Shares tumbled more than 18 due to the slew of downgrades and disappoint pointing earnings. Groupon had a great listing soaring on the first day as a Public Company but the coupon site lost a staggering 86 in one year. What went wrong . One concern was groupons entire Business Model that had a low barrier to entry. That was then and this is now. Facebook, pandora, groupon up double digits over the past through months thanks to more users, a stream line focus on mobile, commentary from wall street and silicon valley. I think recovering, proving that mobile can generate revenues, it makes sense for me to figure out now and take advantage of the market. The streets growing appreciation for how broad social platforms can generate revenues can potentially help twitter when it trades on the market. But investors are paying close attention to how twitters ipo will be handled by Goldman Sachs. What will Goldman Sachs do that, you know, Morgan Stanley in terms of the way the price, the ipo that, you know, ed essentially got facebook to under perform for awhile. Reporter there is one advantage twitter has, time. It may be a Younger Company but twitter has been able to learn from the trials and transcribe la tribulations other companies faced wench faced. We could have turned to twitter to see if investors were interested in buying the stock, but thats so last year, so instead, we hit the streets the Old Fashioned way with cameras. I would absolutely invest in twitter. They have such a broad reach. There is so many people tweeting all the time. It has such a large market penetration. Its a trend up and i only see a Bright Future for it, so i would. I think i should invest in instagram instead. Going to be more profitable investment, i think. Our guest tonight is also bullish on twitter. Kevin land already owned shares of twitter through a closedend fund. Hes founder and chief Investment Officer at firsthand capital management. Kevin, nice to have you on the program. You already own the stock, but for people who dont, we know what hype does to a stock. We saw that with facebook, so if somebody wants to own twitter, do you think that they should get it right on the day of the open, or wait a little bit until its been around for awhile . Well, i guess for any investor, it depends a great deal on the price. Its a Quality Company and its likely to be in our view an emerging blue chip and a great growth story, but there is no investment no matter how wonderful that cant be over priced. So you really have to take a look at the numbers once they are out, run the numbers and see what you are paying for that. One thing i think of when i think of initial publish offerings, the Investment Bankers make money but whether you, the individual investor will make money or not is kind of anybodys guess. As a general proposition, do you think its wise for people to go into ipos or buy because its hard to get those ipos to buy immediately after on the open market . Well, youre looking at youre talking to someone did not buy google on the ipo and regretted it since. That would have been a great investment. There are some cases when you absolutely should. I guess the thing to look at is the ipo day is the first of many days that that stock will be publicly tradeable, and so while there is no reason that you cant buy it that day, there is no reason you cant buy it the day after, as well. Some of them have taken off since the ipo, whether you look at linked in, yelp, facebook, is it time to take profits in the stocks, or is there still more to be made . Well, you know, if you look at the tech landscape, its really sort of a tale of two groups of stocks. The older has been around so long they struggle to show any growth at all, or kill acle or or cisco. The few stocks out there and it is few because its so hard to go public, the people will pay really high multiples when they see growth. If you look at sales force. Com or linked in or others, they are expensive and there is kind of this growth in between where reasonable growth plays arent that common. You own some of the shares through a Venture Capital fund. What do we know about how much money twitter makes, and whether they are growing profits at a nice pace . Do we know . We dont know much, and that makes it much tougher, and thats frankly why the venture game is so much tougher. You have much more limited information, and everything is a chore. The research is much more of a chore. Just getting your hands on shares is much more of a chore. Thats what makes that game much more rewarding, i suppose. All right. Lots of good information. Thanks a lot, kevin. Have a great weekend. Chief Investment Officer at firsthand capital management. Susie, president obama is losing h losi losing his chief Economic Advisor january 1st, spurring a longtime democratic policy prowill be replaced by a top oval office aid jeffrey zince. Jp morgan chase is facing a mull knit tud of legal investigations, so many in fact it needs to beef up oversight of itself. The biggest bank plans to spend an additional 4 million and commit 5,000 extra employees this year to help clear up compliance issues. Thousands of colorado residents are being evacuated from their homes after 15 inches of rain fell in just three days turning mountain streams and creeks into raging rivers. 90 miles of interstate 25 have been shut down to drivers. Rocky Mountain National park closed to visitors and three deaths have been attributed to the flooding. Colorados governor sign add disaster decoloration. A devastating fire on the jersey shore wiping out dozens of businesses and a popular boardwalk that was just rebuilt less than a year after being wiped out by super storm sandy. Scott cohn joins us from seaside park. Reporter they were so close to a come back, at least they believe, emotionally and economically. They limped through this season but made it but now tonight, seaside park new jersey stands as the very definition of a cruel twist of fate. It was more like a forest fire than a building fire ripped by 30 mile per hour winds hopping from rooftop to rooftop like tree tops destroying everything in the path. They fought it like a forest fire, too, twice cutting giant trenches through the wooden boardwalk to keep the fire from spreading. The boardwalk only just rebuilt for around 20 million after hurricane sandy. I really thought i was going to throw up. How much more are people going to be expected to take . Reporter they only just reopened the boardwalk memorial day weekend and business was only a fraction of a normal summer. The hope was they could eke out a little more in september and october. We fought broken equipment all summer and what we lost in the storm and business was down 2 3rds and just getting up and running again june 1st, first day and now this. Reporter horrible deja vu for her whose two amusements flooded by the storm are now gutted by the fire. Its just like here is something else. Reporter the fire is believed to have started underneath an ice cream shop closed for the season. The family that owned the chain for nearly a century said our hearts are broken. In all at least 30 businesses are gone and it could be weeks before there a dollar figure. We have an obligation now to get aggressive and rebuild, and i will not permit all the work that weve done over the last ten months to be diminished or destroyed by what happened last night. Reporter even as they struggle again to get back on their feet, investigators are considering the possibility that this disaster wasnt an accident. Investigators felt it was real important they maybe get video of the immediate area just prior to the fire. Reporter its far too early to know if the fire is suspicious and if a region that proclaimed itself stronger than the storm is stronger than this. It could have been a lot worse. There is some sole list in that. The fire could have spread north into Seaside Heights, the Seaside Heights boardwalk is open and a festival is scheduled to go on. Todays events cancelled but the next two nights they will try to eke something out. Scott, after sandy there was federal money there to help those folks rebuild down there. Is there anything like that available this time, or do they have to depend on private insurance . No, there really isnt anything like that and it is about insurance and one of the things the state tried to do as a result of that is had their insurance authorities down here to try and get payments to the Business Owners as quickly as possible. Fortunately in a lot of ways, it is only commercial structures but of course, thats the life flood of the economy here. Scott cohn reporting for us tonight, thank you very much scott cohn. Coming up on the program, how badly do Airline Passengers want fast wifi in the sky . You might be surprised at what flyers are willing to give up. First, a check on how the International Markets closed today. Dozens of jetblue flights were delayed this morning because of a computer failure. At least 40 flights were held up for an hour and a half. They blamed an issue that prevented it from releasing planes from gates. The system was restored by 10 30 a. M. But the delays lasted all day long. Air travelers are willing to put up with a lot of inconveniences including flight delays and rising airfares but one feature is becoming a must have on flights, reliable Online Access in the air. Jane wells took a look at what some airlines are doing to supply better wifi in the sky. People want to get online at 30,000 feet, and Airlines Want to make money off that. Very similar to not having water on a plane. If you dont have connectivity, it feels like not having water and passenger expect it. Reporter a survey by honey well found 90 of the u. S. Airline passengers think wifi should be available on every flight. 13 would be willing to give up in flight toilet privileges in exchange for Faster Service but of then many dont pay because they feel the service isnt fast enough or spotty. Virgin america or jetblue are examples. Reporter here, gogo is announcing a system it will roll out on Virgin America which will for the first time combine go gos ground based towers with satellite space its renting. Information you send will go to the ground and information you receive will come from above. This solution will be 20 times faster than what most of our planes do today. Reporter jetblue meanwhile will provide on board internet using high capacity satellites providing enough band width passengers can stream movies from netflix. They call it a 3 billiondollar market growing 20 a year. There is so much demand and with satellites so much capacity, commanding the online skies become a new age arial dog fight. You can see what the natural demand is. Land the plane and when you hear ding, ding, ding, the first thing people do is reach in their pocket and gept their device. We want that available in the air at 30,000 feet. Reporter jane wells, anaheim, california. Intel was the first performing dow stock today and thats where we begin the market focus. They are upgrading to buy as higher performances in cheaper micro processors than competitors and raised the price target to 30 from 27 and shares up more than 3 to finish at 23. 44. Shares of utla reported a 28 rise in earnings and improved revenue. The chain which sales makeup, perfume and Skin Care Products reported double digit Profit Growth for several years as the Company Opens stores. The stock soared 17 to 117. 53. United Natural Foods also having a strong day. This Specialty Food distributor reporting growth amid Strong Demand for organic food and boosted the Sales Guidance for the year. The stock gained 13 67. 73. And viral farma hired Goldman Sachs to explore a possible sell. They are said to be interested in the rare disease drug maker. Viropharma is trading at the highest since 2001 and soared 28 . Our market monitor guest expects stocks to do well this september. They have so far even though there could be bumps along the way. Chief Investment Officers, cecilia welcome. The first half of september has been dog gone good in a month that often isnt but there are a lot of things looming over the next couple weeks in washington that could derail it. Do you think stocks will continue to make significant headway for the rest of this month and the rest of this year . What weve been seeing is that there has been the same factor that is influencing the interest in stocks is what was hurting the interest in bonds over the last couple of months. Since the feds started hinting it might be tapering the monthly bondbuying program, investors have been worried about Interest Rates rising and sells bonding, all types of bonds and fixed income and there is a lot of money that is sitting on the sidelines looking for someplace to go. I think thats starting to get into the equity market and that will help through the rest of the of this month, september and going forward. But as you said, there is a lot of news coming out, a lot of things going on so we expect volatility to continue and we like volatility. It gives us an opportunity to buy at an great price. You have some you think will benefit in this volatile period. They are all traded on the new york stock exchange. You got four of them. Lets run down the list. The first is petroleum and resources corp, a closedend fund peo. Tell us why you like this one. We like when they trade at discounts and these are Investment Companies like mutual funds but trade on the stock exchange. This particular one is trading at more than a 15 discount to Net Asset Value and its indicated it will payout at least 6 of market price annually. Its got some Large Holdings you might recognize. Exxonmobil, chevron, schlumberger and we like it at the current level of 27. Our sale target is around 30. This is one of the longerterm recommendations. Cecilia your second choice selling at a 10 discount to the Net Asset Value, but if Interest Rates are going to rise, why would i want to be in a Credit Income find dynamic or not . Well, you know, this one is managed by pimco. They have a very good reputation. The fund was structured in a way that they can invest across any type of income market. So not necessarily only bonds. They are currently in Corporate Bonds and loans. Some of these loans adjust with the rates going up when Interest Rates rise and you know, pimco is a great name. Most of the funds trade at premiums. This is an unusual opportunity to buy a pimco fund at a 9. 7 discount and yields at 8 . Lets look at the next two, see if we can squeeze them in. The mouth foul, nvg, same story, big discount. Look at the chart there and see the big drop there. It seems risky like tyler was asking you in a highinterest rate environment. Its a 13. 5 discount. The under lying muni nice tip is under pressure. The under lying sector is over sold, the discount has widened. We think this one is ready for a shortterm trade. This is an opportunity to get in at an attractive discount. Its at 1212. We like it there. We would be a seller at 13. 20 and we think that will happen over the short time. Thank you very much. I have to ask, do you or your company own any of the investments mentioned . Yes, i dont own them. The company has clients in them and openend mutual fund has these, as well. Thanks very much. Chief Business Report<\/a> for friday, september 13th. Good evening everyone. On this friday the 13th investors werent superstitious about buying stocks. The major averages were up. The dow wrapped up the best week since january and the s p 500 had the biggest weekly gain in months. September is historically the worst year of the month for stocks but not this time. Looking at the score card at this Half Way Point<\/a> for the month, the dow and s p are up by 3 or more, but that could change depending on the outcome of crucial decisions in washington over the next few weeks. First a Federal Reserve<\/a> meeting next week and policy makers could decide to trim back on the feds Massive Stimulus Program<\/a> and the issue how to fund the u. S. Government and the debate on the debt ceiling and what the white house decides to do about syria, another biggie. Today the mood on wall street was upbeat, the dow rose 75 points, the nasdaq up six and the s p 500 added five. In the commmodities the price gold lost more than 5 this week to close just above 1300. Those rising markets, susie just mentioned not just this month but all year really fig e figured in twitters announcement it submit add confidential filing to sell shares to the public but stock offerings havent all been winners. In fact, some have been anything but. Seema mody looked at the numbers for us. Reporter tweeting, yelping, tagging, social networking is certainly hot right now but is it a smart investment . With twitter announcing yesterday via twitter it had filed for an ipo, wall street is drawing parallels between that company and other recent social media ipos, many of which have rough starts. Four months after facebook listed on the stock market, it lost half the value. Analysts were skeptical of Mark Zuckerbergs<\/a> ability to make prices. Shares tumbled more than 18 due to the slew of downgrades and disappoint pointing earnings. Groupon had a great listing soaring on the first day as a Public Company<\/a> but the coupon site lost a staggering 86 in one year. What went wrong . One concern was groupons entire Business Model<\/a> that had a low barrier to entry. That was then and this is now. Facebook, pandora, groupon up double digits over the past through months thanks to more users, a stream line focus on mobile, commentary from wall street and silicon valley. I think recovering, proving that mobile can generate revenues, it makes sense for me to figure out now and take advantage of the market. The streets growing appreciation for how broad social platforms can generate revenues can potentially help twitter when it trades on the market. But investors are paying close attention to how twitters ipo will be handled by Goldman Sachs<\/a>. What will Goldman Sachs<\/a> do that, you know, Morgan Stanley<\/a> in terms of the way the price, the ipo that, you know, ed essentially got facebook to under perform for awhile. Reporter there is one advantage twitter has, time. It may be a Younger Company<\/a> but twitter has been able to learn from the trials and transcribe la tribulations other companies faced wench faced. We could have turned to twitter to see if investors were interested in buying the stock, but thats so last year, so instead, we hit the streets the Old Fashioned<\/a> way with cameras. I would absolutely invest in twitter. They have such a broad reach. There is so many people tweeting all the time. It has such a large market penetration. Its a trend up and i only see a Bright Future<\/a> for it, so i would. I think i should invest in instagram instead. Going to be more profitable investment, i think. Our guest tonight is also bullish on twitter. Kevin land already owned shares of twitter through a closedend fund. Hes founder and chief Investment Officer<\/a> at firsthand capital management. Kevin, nice to have you on the program. You already own the stock, but for people who dont, we know what hype does to a stock. We saw that with facebook, so if somebody wants to own twitter, do you think that they should get it right on the day of the open, or wait a little bit until its been around for awhile . Well, i guess for any investor, it depends a great deal on the price. Its a Quality Company<\/a> and its likely to be in our view an emerging blue chip and a great growth story, but there is no investment no matter how wonderful that cant be over priced. So you really have to take a look at the numbers once they are out, run the numbers and see what you are paying for that. One thing i think of when i think of initial publish offerings, the Investment Bankers<\/a> make money but whether you, the individual investor will make money or not is kind of anybodys guess. As a general proposition, do you think its wise for people to go into ipos or buy because its hard to get those ipos to buy immediately after on the open market . Well, youre looking at youre talking to someone did not buy google on the ipo and regretted it since. That would have been a great investment. There are some cases when you absolutely should. I guess the thing to look at is the ipo day is the first of many days that that stock will be publicly tradeable, and so while there is no reason that you cant buy it that day, there is no reason you cant buy it the day after, as well. Some of them have taken off since the ipo, whether you look at linked in, yelp, facebook, is it time to take profits in the stocks, or is there still more to be made . Well, you know, if you look at the tech landscape, its really sort of a tale of two groups of stocks. The older has been around so long they struggle to show any growth at all, or kill acle or or cisco. The few stocks out there and it is few because its so hard to go public, the people will pay really high multiples when they see growth. If you look at sales force. Com or linked in or others, they are expensive and there is kind of this growth in between where reasonable growth plays arent that common. You own some of the shares through a Venture Capital<\/a> fund. What do we know about how much money twitter makes, and whether they are growing profits at a nice pace . Do we know . We dont know much, and that makes it much tougher, and thats frankly why the venture game is so much tougher. You have much more limited information, and everything is a chore. The research is much more of a chore. Just getting your hands on shares is much more of a chore. Thats what makes that game much more rewarding, i suppose. All right. Lots of good information. Thanks a lot, kevin. Have a great weekend. Chief Investment Officer<\/a> at firsthand capital management. Susie, president obama is losing h losi losing his chief Economic Advisor<\/a> january 1st, spurring a longtime democratic policy prowill be replaced by a top oval office aid jeffrey zince. Jp morgan chase is facing a mull knit tud of legal investigations, so many in fact it needs to beef up oversight of itself. The biggest bank plans to spend an additional 4 million and commit 5,000 extra employees this year to help clear up compliance issues. Thousands of colorado residents are being evacuated from their homes after 15 inches of rain fell in just three days turning mountain streams and creeks into raging rivers. 90 miles of interstate 25 have been shut down to drivers. Rocky Mountain National<\/a> park closed to visitors and three deaths have been attributed to the flooding. Colorados governor sign add disaster decoloration. A devastating fire on the jersey shore wiping out dozens of businesses and a popular boardwalk that was just rebuilt less than a year after being wiped out by super storm sandy. Scott cohn joins us from seaside park. Reporter they were so close to a come back, at least they believe, emotionally and economically. They limped through this season but made it but now tonight, seaside park new jersey stands as the very definition of a cruel twist of fate. It was more like a forest fire than a building fire ripped by 30 mile per hour winds hopping from rooftop to rooftop like tree tops destroying everything in the path. They fought it like a forest fire, too, twice cutting giant trenches through the wooden boardwalk to keep the fire from spreading. The boardwalk only just rebuilt for around 20 million after hurricane sandy. I really thought i was going to throw up. How much more are people going to be expected to take . Reporter they only just reopened the boardwalk memorial day weekend and business was only a fraction of a normal summer. The hope was they could eke out a little more in september and october. We fought broken equipment all summer and what we lost in the storm and business was down 2 3rds and just getting up and running again june 1st, first day and now this. Reporter horrible deja vu for her whose two amusements flooded by the storm are now gutted by the fire. Its just like here is something else. Reporter the fire is believed to have started underneath an ice cream shop closed for the season. The family that owned the chain for nearly a century said our hearts are broken. In all at least 30 businesses are gone and it could be weeks before there a dollar figure. We have an obligation now to get aggressive and rebuild, and i will not permit all the work that weve done over the last ten months to be diminished or destroyed by what happened last night. Reporter even as they struggle again to get back on their feet, investigators are considering the possibility that this disaster wasnt an accident. Investigators felt it was real important they maybe get video of the immediate area just prior to the fire. Reporter its far too early to know if the fire is suspicious and if a region that proclaimed itself stronger than the storm is stronger than this. It could have been a lot worse. There is some sole list in that. The fire could have spread north into Seaside Heights<\/a>, the Seaside Heights<\/a> boardwalk is open and a festival is scheduled to go on. Todays events cancelled but the next two nights they will try to eke something out. Scott, after sandy there was federal money there to help those folks rebuild down there. Is there anything like that available this time, or do they have to depend on private insurance . No, there really isnt anything like that and it is about insurance and one of the things the state tried to do as a result of that is had their insurance authorities down here to try and get payments to the Business Owners<\/a> as quickly as possible. Fortunately in a lot of ways, it is only commercial structures but of course, thats the life flood of the economy here. Scott cohn reporting for us tonight, thank you very much scott cohn. Coming up on the program, how badly do Airline Passengers<\/a> want fast wifi in the sky . You might be surprised at what flyers are willing to give up. First, a check on how the International Markets<\/a> closed today. Dozens of jetblue flights were delayed this morning because of a computer failure. At least 40 flights were held up for an hour and a half. They blamed an issue that prevented it from releasing planes from gates. The system was restored by 10 30 a. M. But the delays lasted all day long. Air travelers are willing to put up with a lot of inconveniences including flight delays and rising airfares but one feature is becoming a must have on flights, reliable Online Access<\/a> in the air. Jane wells took a look at what some airlines are doing to supply better wifi in the sky. People want to get online at 30,000 feet, and Airlines Want<\/a> to make money off that. Very similar to not having water on a plane. If you dont have connectivity, it feels like not having water and passenger expect it. Reporter a survey by honey well found 90 of the u. S. Airline passengers think wifi should be available on every flight. 13 would be willing to give up in flight toilet privileges in exchange for Faster Service<\/a> but of then many dont pay because they feel the service isnt fast enough or spotty. Virgin america or jetblue are examples. Reporter here, gogo is announcing a system it will roll out on Virgin America<\/a> which will for the first time combine go gos ground based towers with satellite space its renting. Information you send will go to the ground and information you receive will come from above. This solution will be 20 times faster than what most of our planes do today. Reporter jetblue meanwhile will provide on board internet using high capacity satellites providing enough band width passengers can stream movies from netflix. They call it a 3 billiondollar market growing 20 a year. There is so much demand and with satellites so much capacity, commanding the online skies become a new age arial dog fight. You can see what the natural demand is. Land the plane and when you hear ding, ding, ding, the first thing people do is reach in their pocket and gept their device. We want that available in the air at 30,000 feet. Reporter jane wells, anaheim, california. Intel was the first performing dow stock today and thats where we begin the market focus. They are upgrading to buy as higher performances in cheaper micro processors than competitors and raised the price target to 30 from 27 and shares up more than 3 to finish at 23. 44. Shares of utla reported a 28 rise in earnings and improved revenue. The chain which sales makeup, perfume and Skin Care Products<\/a> reported double digit Profit Growth<\/a> for several years as the Company Opens<\/a> stores. The stock soared 17 to 117. 53. United Natural Foods<\/a> also having a strong day. This Specialty Food<\/a> distributor reporting growth amid Strong Demand<\/a> for organic food and boosted the Sales Guidance<\/a> for the year. The stock gained 13 67. 73. And viral farma hired Goldman Sachs<\/a> to explore a possible sell. They are said to be interested in the rare disease drug maker. Viropharma is trading at the highest since 2001 and soared 28 . Our market monitor guest expects stocks to do well this september. They have so far even though there could be bumps along the way. Chief Investment Officer<\/a>s, cecilia welcome. The first half of september has been dog gone good in a month that often isnt but there are a lot of things looming over the next couple weeks in washington that could derail it. Do you think stocks will continue to make significant headway for the rest of this month and the rest of this year . What weve been seeing is that there has been the same factor that is influencing the interest in stocks is what was hurting the interest in bonds over the last couple of months. Since the feds started hinting it might be tapering the monthly bondbuying program, investors have been worried about Interest Rates<\/a> rising and sells bonding, all types of bonds and fixed income and there is a lot of money that is sitting on the sidelines looking for someplace to go. I think thats starting to get into the equity market and that will help through the rest of the of this month, september and going forward. But as you said, there is a lot of news coming out, a lot of things going on so we expect volatility to continue and we like volatility. It gives us an opportunity to buy at an great price. You have some you think will benefit in this volatile period. They are all traded on the new york stock exchange. You got four of them. Lets run down the list. The first is petroleum and resources corp, a closedend fund peo. Tell us why you like this one. We like when they trade at discounts and these are Investment Companies<\/a> like mutual funds but trade on the stock exchange. This particular one is trading at more than a 15 discount to Net Asset Value<\/a> and its indicated it will payout at least 6 of market price annually. Its got some Large Holdings<\/a> you might recognize. Exxonmobil, chevron, schlumberger and we like it at the current level of 27. Our sale target is around 30. This is one of the longerterm recommendations. Cecilia your second choice selling at a 10 discount to the Net Asset Value<\/a>, but if Interest Rates<\/a> are going to rise, why would i want to be in a Credit Income<\/a> find dynamic or not . Well, you know, this one is managed by pimco. They have a very good reputation. The fund was structured in a way that they can invest across any type of income market. So not necessarily only bonds. They are currently in Corporate Bonds<\/a> and loans. Some of these loans adjust with the rates going up when Interest Rates<\/a> rise and you know, pimco is a great name. Most of the funds trade at premiums. This is an unusual opportunity to buy a pimco fund at a 9. 7 discount and yields at 8 . Lets look at the next two, see if we can squeeze them in. The mouth foul, nvg, same story, big discount. Look at the chart there and see the big drop there. It seems risky like tyler was asking you in a highinterest rate environment. Its a 13. 5 discount. The under lying muni nice tip is under pressure. The under lying sector is over sold, the discount has widened. We think this one is ready for a shortterm trade. This is an opportunity to get in at an attractive discount. Its at 1212. We like it there. We would be a seller at 13. 20 and we think that will happen over the short time. Thank you very much. I have to ask, do you or your company own any of the investments mentioned . Yes, i dont own them. The company has clients in them and openend mutual fund has these, as well. Thanks very much. Chief Investment Officer<\/a> with thomas j hurtsvel. Retailers are looking for Holiday Cheer<\/a> in september. With days to go before christmas, will they find it . First lets look at commodities, currencies and treasuries today. Retail spending higher in august but not by much. It rose a modest far less than expected especially for the critical back to school season. Smallest gain in four months on retail sales. Americans bought more cars, furniture and electronics but held back on purchasing new clothing. After sluggish sales over the summer the same retailers are hoping for more Consumer Spending<\/a> around the holidays and everyone though its still september, yes, september, they are getting ready to get a piece of your christmas shopping. Courtney regan has more. Reporter teachers around the country still may be welcoming children back to the classrooms but retailers are wishing shoppers happy holidays roling out promotions like lay a way, hot toy lists and shopping discounts. Walmart began lay a way for purchases online or in store through november 23rd and walmart kicks off the holiday program. There is no fee to open the account. They are a are releasing the top toy picks and toys r us is offering cash rewards on some purchases and to bring shoppers back for holiday, the cash back earnings come in a form of e gift cards to be redeemed in november. Retailers are getting smarter about invenn tomorrtories and i 2009, 2010 they had way too much and this year they protect themselves by starting early, figure what the consumer wants and do lay away plans. Reporter while many say christmas in september comes from consumer demand, its hard to find shoppers to echo the sentiment. I think its terrible. They need to wait until after thanksgiving. Its a bit too soon. Im not thinking about the holidays yet. Its crazy. Reporter consumers got savvy diving for door busters early on and waiting to take advantage of retailers desperation and the subsequent deeper discounts the closer it gets to christmas. At a retail conference in new york sit think week, michael wise explained quote were finding the most important times of the year are getting bigger and bigger and bigger and the unimportant times are getting less significant. Good news for consumers checking off their holiday lists in september. For nightly Business Report<\/a>, im courtney regan. And there goes santa. Well finally tunnel, whether youre superstitious or not, youre likely aware today is friday the 13th, u. S. Businesses lose up warpds of 90 0 Million Dollars<\/a> because some refuse to conduct Business Activity<\/a> or fly on that day. Are you superstitious . Very. I will not fly on that date. Really . How about you . Not at all. Good combination here. Thats nightly Business Report<\/a> im susie gharib. For more on tonights business stories. Go to nbr. Com. Have a good vacation away from a week. Have a great weekend everybody. See you monday. Nightly Business Report<\/a> has been brought to you by sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures, viking river cruises, exploring the world in comfort. Captioning by vitac, underwritten by Firemans Fund<\/a> a lastminute scramble for hundreds of bills in sacramento. What passed, what didnt and what happens next. Silicon Valley Companies<\/a> fight back against the nsa Surveillance Program<\/a> in an attempt to salvage their reputatio reputations. Suspicious deaths and misconduct in nursing homes. The agency in charge of investigating now facing questions of neglect. Plus, from cuttingedge exhibitions to World Premiere<\/a> performances, sy reveals his Top Entertainment<\/a> picks. 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