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Welcome to foxbusiness.com.
Live Chris cutter Tracy -- with you on -- Wednesday good.
And just really disappointing all the folks out there watching.
We are down by 822 point margin right now.
In other words -- big news on Wall Street.
And I -- for the full screen up thank you.
That's that's -- it's -- continues yesterday was big time -- aware of it between corporate earnings that you had economic data that continues to disappoint today it's.
I guess it's really the same thing corporate earnings continue to be pretty darn good only have a few disappointments here in their -- was not exactly glowing report that that's affecting the Dow.
Did you expect that now let me sales were down gut and I know you get -- -- -- granite you know well you -- them to as much as as much as that was disappointing it was.
It didn't -- the Dow it and -- bawling because we just in the farm grow air show and we know what was going on that it can be delayed.
Of what they -- get believe that the final tally was when he -- 1001000.
In sales from that -- kill the largest issue of the world so.
Not so horrible football and that's why they weren't just did you know dropped off the face of the -- But in law in general I think -- mostly gets beat quality -- -- Gonzales.
The corporate side is great the economic side is not great in the -- war's gonna continue at least throughout earnings season the rest of you know this month.
Next couple weeks and that's -- gonna drive the market and probably drive it.
Yeah -- sideways you know I'm looking for it didn't greenhouse -- an email out from military that since he came out this morning.
And we got more information on thin -- the financial regulatory reform and how it's not nearly as bad as we all thought.
And the anticipation was that it would help banks stocks today and it's clearly not doing that at all.
But as far as.
When the rules of -- kick in and you really will look at it -- when he eighteen before we start the battle our way yes so it's almost a joke of the -- -- beyond those been totally watered down.
I'll find -- -- before the show's over but.
And in the amount of debt that they have to hold not nearly as bad as everyone.
-- somehow Williams joins us right now once again always happy to have a a southerner.
On the show as we know presently is financial advisors joining us right now hey Tommy how are you.
And Greg have you -- would do it just well loved what what do you think it would treat him just talking about BL Allison got a total war go and all between economic data a corporate earnings and it doesn't seem like at least at this point today yesterday one side is really winning that's -- Well I think it'd be difficult to win it the earnings are strong in and everyone anticipated -- I think the markets probably -- price for that.
And the real economic data that everybody is looking far doesn't come out until Friday and that's the big.
Second quarter GDP number the gross domestic product -- of course the university of Michigan's consumer sentiment numbers so.
I don't think we say in the real the excitement yet but but is coming here a couple days and everything and everybody be anxiously net.
But -- it is -- rat the is you know is his -- in the market unbelievable.
When the and -- anemic most -- RI and that vacation at some point.
So they don't put people move in this market are really your traders right -- institutional players.
Did the little guys -- his game.
Well probably not the little that really hadn't -- -- -- for a long time and we're we're looking now more than likely -- a sideways market everybody's looking forward to trade in -- range.
And for those reasons you know the -- -- the whole theory -- they -- you've got to be very very tactical very pro active.
Are you can't make money in this market and I data very many people really are that I'm gonna make money over the over the near term unless they do have some type of -- discipline and some type of investment brought.
This -- Health Care Reform that burner.
Now financial regulatory reform back burner -- -- -- -- focusing on taxes.
We talk about it all day law on the books tax bush tax cuts will be be allowed to expire -- some Democrats come to the table in support of keeping them going.
Will someone -- be allowed to expire what are your thoughts on the bush tax cuts and how what ramifications this will have for the market ended 2010 going into 2011.
What I think it's a great topic because.
Politically you've got an interesting situation you've got congress that's fixing to go -- now.
Racing as are you say it -- in a New York I think about to go on risk that I this out with -- in it.
Yeah that's right and and so up.
You know where got to bail recess then they're gonna come back for a short period of time and they're gonna have to then prepare themselves to campaign for reelection.
And and they have very short period of time after that to do any type of tax reform -- I don't think -- wanna go home right now and and and and run an ad campaign based -- own.
Removing the bush tax -- their battle raising taxes or who promotes people so.
I think that the market has priced the end some.
Tax increases and as that doesn't happen more than likely.
Because of the -- this political timing issue.
Then we're lacking is a little bit of a bounce in the market just because taxes don't sayings.
But who knows this is America you know anything can happen and as some of these things can happen very quickly.
You know in overnight sessions in the middle of the night and some smoke filled back room somewhere.
And you know you talk about overnight sessions brings us overseas as well that's certainly not finished.
What we're not getting -- big good news out of China that we've been looking for you know over the last couple months we still had the I mean I guess.
The stress tests are done but to me they didn't do anything to begin with so -- you know how -- -- global the rest of the world play into the economy here at home for you.
-- channel looks like it's slowed down at me that you be paid many drops from hand haters something you know it's hit it if everything there relative.
They the stress test I think only seven banks proved to be.
Not as strong as they wanted them to be and then some that -- them and others were.
-- -- and then somebody comes I've been in and says well the tests weren't that stringent.
Anyways so who knows but the important thing is three weeks ago everybody Europe was going to go -- it is particularly Greece.
And it pays and aides tell column appear.
And and now that seems to have sorted out -- -- so -- really and truly.
Let's look at the GDP numbers -- for the second quarter but that they things look pretty good and and Indies earnings that.
That are around beating expectations.
-- that that couldn't be happening in consumers weren't out -- -- in -- and businesses more now also investing in their companies.
Tommy like tech names at this point times halfway through and a little more than halfway through any season.
Well I do I think -- tech now is a -- sector.
There has been a obviously a slowdown over the last two years.
There's a lot of cats sitting around both in individuals' pockets and enough corporate coffers.
And a lot of these businesses just haven't -- -- -- technology and imagine that.
If you if you're software and hardware any evidence is is two -- three years old and you operating.
In a prehistoric.
I think a lot of companies they're going to be spending money if if if our corporation -- did computer services consulting hardware software etc.
I think -- -- pretty excited about my prospects going forward.
And there -- -- quite a number of companies that.
This in the smaller -- -- -- smaller by being in there -- so small cap ties that.
I think -- do.
Exceedingly well but I allow wouldn't just about them and held them our about him with a specific investment process and map -- Feel like he can't vinyl than anything any more these days Tommy thanks so much for sharing your thoughts with us.
What I'm glad to be here -- at bank Gallaudet board is being against it and.
And I just liked it.
Remind people that yes he is from the south but he doesn't mean Boston Johnny Williams president of Williams of financial advisors he's thrown everybody represented makes all the top 58.
Have a big -- yeah Europe and very much so be nice -- is that happy birthday.
I'm Tom Allen and Tom and I just love did -- say.
The result of very high level economic.
I think -- in saint -- -- Mean that just says -- that -- is -- very Smart and educated men and say fix and two in a very Smart I don't.
I think he's fixing what -- is fixing the place of fits and go here where you -- so are we -- -- -- break up with it's we go to break if you're from real south the real dirty dirty saudis say fit that.
Maybe go to right thing -- But -- backpacks -- -- com live Tracy Byrnes Chris pattern Dow down twenty points I really think of the a lot worse I'm kind of think in this some of -- victory considering all that's gone on break forties and ruled the upside again -- and -- -- -- -- -- -- -- -- -- -- -- -- -- -- actually -- -- it's -- pretty well.
Even though I was still stick to my guns and my story that there's like ten people trading in this market -- all ten of them are responding very well.
-- put out to LA right now -- lemurs with us.
PC -- chief economist talk and asked about some data at.
They say I guess on truckloads right -- to determine how the economy's doing.
You have this data is.
Diesel fuel and at 7000 truck stops all over the country record and minute by minute basis.
OK so it's.
-- -- every time a truck stops to fill out that's how we can we can extrapolate that out Cincinnati you know whether or not they're transferring goods how the economy's doing.
There were called the Paulson the commerce -- -- four refers to the interstate says that -- leaders of the system.
And the product flowing along interstate that's -- but it will move the product the current their country's economy as a girl.
Look at tons of data as as I know -- -- you think about every single day.
There's something new coming out of -- the Commerce Department.
But what not how is your report PCI mirrored or maybe different from some of these other -- that have come out.
Then show us that the that in the economy is slowing you the last couple months.
Well our headline number in June is -- brother bad we had a great day which is up 3%.
But we lost about half of and in June and in the context of a lot of rather weak.
Economic -- and mansion and also all the trash talk about double bitten the decline in trucking activity in -- as a source of concern.
So where -- we now what do you see -- say the next you know for the rest of the year.
Well -- -- the finger and understand this the 21 century data so.
Which allows us to drill down into it geographically and on a day by day basis so when I got that big negative number in June.
Into context of all those things that worry us about the economy -- set I got to dig into this and find out whether isn't real or just some kind of anomaly.
And what I discovered is that the trucking activity.
After Memorial Day is -- not only on Memorial Day but on -- Tuesday and Wednesday.
Following Memorial Day usually -- Tuesday and windsors are in man.
But this year we have Memorial Day on the 31 through June -- -- Tuesday and Wednesday following Memorial Day were.
I usually it's in May this year the Tuesday Wednesday were in June.
Causing parents Trenton mayor -- -- a bit -- and more weakness in June as a consequence of that Memorial Day affect.
That was one thing.
That may June has seen worse than it really was but the second thing is the first separate Jews were that we just -- The second half inch June notre connectors are -- rather nicely and we think that that is likely to continue in July we still feel.
A relatively optimistic about the economy going forward.
Ed what do you see in terms of blood diesel fuel prices does that have any impact -- -- -- -- we had to have wild swings and a couple of Summers.
But does that have any impact on what you see on a month to month basis.
We're talking here about volume diesel fuel transactions.
The crisis and what where you're raising is a possibility that.
When prices go.
The goods are shipped with lower volumes of fuel because they drive slower and -- try to conserve.
We worried about that yeah couldn't find any evidence we -- -- effect in 99 and I.
And that kind of kind conservation force that might contaminate -- -- that seemed to play a role but they play a role slowly over time.
And are really very material in a month a month or year to year basis.
Like you -- LTL shipments and things like that.
-- be appreciated outstanding information -- to keep tabs on you throughout the rest of summer and the fall as we begin trying climb out of this recession banks there.
Thanks there McDermott -- winner from the Anderson school of business that's CLA.
-- I -- I will clarify that LTL is less than truckload Chris is making fun because the first story ever accomplished -- it.
In fact it was financial world magazine went when he debunk the love in six months after three months after his job -- -- My first printed journalistic piece unless than truckload -- -- You've got to go out in person did you -- heels and everything -- got stops along the New Jersey Turnpike can talk to truckers and not think that I had to make phone calls and talk them out of the -- and I know it's in bad Mexican descent with the same button -- being -- you -- wonder editor of working for.
You put me on the story lifting yet yet and -- -- Not a citizen says he's crazy yeah it hasn't flying -- I was -- -- pit exchange does it mean to call -- -- it would have been better what they'll look like Iran.
You know -- glove on the sacks and everybody's an act of kindness I am but.
-- -- -- -- -- Feet restaurant -- in very strange places.
These are going to be popping up in places that you didn't -- -- that you can think ranking -- before superb example public parks.
Public parks he used to be pretty good public -- that's what they -- therefore you start seeing.
Parts charging to park park -- raise their camping fees and all those little things -- all gonna start to go up of course your property taxes are certainly gonna go up.
Some of them I -- we really wild in Newark, New Jersey.
Newark, New Jersey that they're trying to region to spies at the work that.
Trying to make this prevent gentrification that.
-- stadium going on -- they play ball games -- apparently.
The city workers are going to -- -- now to our favorite is there will be no more for us and then it you did -- that.
I notes it said they -- they.
Can be spent in Alabama but it's an exorbitant amount of money on both papers say it anyway plus I got millions.
-- you could vote paper mine -- -- seriously it's like a ridiculous amount of money until it was everybody has to bring their own toilet paper.
In the work.
So little things like the taught you know when you have to pay for the quarters in the told singing yeah I don't know if you've noticed you probably don't you know using here -- much but.
A corner gets -- like a whopping.
Seven minutes now seems like -- aren't going right ahead.
Fourteen -- just -- running into the dry cleaners or something stupid like that that's gonna go out and knows this is my favorite though.
They don't once the dog free zone yet you let your dog run -- actually charge it to run forever.
Well that makes -- Because you'll do anything with period for you build anything well so you -- that was -- you know the meters here in New York -- it's no -- the change -- credit card -- -- so much it is the parts.
So -- if you gotta come in like plugging your critic -- slide your credit card in the thing and now.
It didn't see him fifty times -- -- you talk on why this morning about how.
Raising the taxes doesn't necessarily.
Raise money sometimes and oftentimes it's evidence is evidence -- right.
So you got a local basis he -- You know that.
But -- you don't want that you expected to raise camping fees.
And a camping right now is the economical vacation wouldn't do it from a -- -- -- it's economical vacation is not economical anymore for -- -- -- -- -- sleep -- -- -- know what I -- it.
We just parts -- on the public parts of public -- in public anymore of that you have to be exclusive to some extent where.
You have to be able to afford to go as far as I'm not saying that part is in charge -- twenty bucks that go.
You know play game -- ball obviously it's going to be pretty -- without -- very exclusive exclusionary.
But the same time.
You're already paying for the parks your tax dollars is -- I had paid more yeah.
Like and then -- do this and now I know men do you we pick up on Saturday morning and go play football yet -- -- president have to pay a.
Each individual that neither China that's just lead -- serious commitments he knew that the commitment to -- -- in yeah.
There you know -- had to get up off your lazy butt and get off the couch and get out there and play today at a pay to play.
That's up all the more reason -- needed when it's a break.
You know we have on the show later on we accepted -- -- I was a -- right now actually have -- as of right now ready.
This fights going on down in Louisiana -- -- what's gone on.
Well you know I tell you I'm -- a very instinct community may be here that here and chickens.
Tackle on over -- there's chickens there's what this is it.
Very unique community is in the and Anthony and then they call you -- -- -- right you've been fishing here how long.
-- -- and it grew up ailment that yeah now you think you this area and -- -- we walk over here you your -- ever.
And I look at I see a lot of crab traps on the shore -- obviously have been able to do much.
No we actually shut down in and -- were at -- BP.
It right now you could make more money for BP you and you would grab them right night.
I mean they pay and -- paying good and they all pay and here's the problem once this oil gets cleaned up now they're not paying no more and you've got to worry about what what's gonna happen that well.
Then you save you money and you go back vision.
Now are you worried though that you know people are gonna thank Jesus is this -- safer not show more about that -- mean.
-- -- They all kind of stuff former TV so mean people at least get to that that try it.
But I think -- be okay.
But I appreciate very much thanks talk to us.
That's the -- that's -- -- it is boo -- the issue right now is that.
You know they'd like to get back open they'd like to be -- again nobody wants to really be working for BP you're getting unemployment or or.
Or file a claim with BP at the same time if they get back too soon.
They're concerned it.
You know some of these.
For the fishing grounds may still be contaminated.
And we may have a problem but at this point no tests that have been done thus far have shown any contamination event either -- Fisher any shellfish oysters.
It's all been good -- -- just hope it continues that way.
-- -- -- -- -- all have you seen any kind of money out of the you know the the Feinberg fun that's supposed to be sent an accounting helping them out while world while basically business is down.
Some of them have but as you just heard from Anthony he's getting paid as one of the vessels of opportunity and -- same boat right behind us here is not -- that program.
But that vessels of opportunity -- -- about 2000.
-- sounds like a lot but you know.
There's certainly a lot more vessels -- that out there and those guys are doing well there Macon yeah they'll make a pretty good money more money than they probably would have been grabbing her fashion.
But you know that's going to run out here very soon.
Jeff thank you -- I Chris Chester and.
LA all of Louisiana.
But that's so -- they're not getting checks they're getting.
Opportunities where right where it right it's a percentage of the overall.
Fishing community down there that is working.
Helping BP with the -- and that's and I was a lot of others like that's my buddy and others who could back then right that's it there it's a vessel of opportunity or nothing.
Right now I believe you are correct and they're waiting for those who have not been compensated for a long time now what two and a half months days are waiting for some type of compensation or.
App vessel to become a vessel of up to what is -- fifty.
I can't take a break.
We'll be right back.
I'm back at -- this is dot com my -- burns Chris cutter -- only down fourteen points.
Six points better than it was before so that's something -- actually could see these small little -- said it's taken back to flat line.
And based on economic data and again right now we'll take it even though earnings have been kind of off the charts.
Before we move on though please tell us -- right.
I will -- actually caught my -- a couple days abilities in catching my -- and my ire.
Over the last couple of days Senator John Kerry announcing today that he will they actually he announced that he reached out.
Any department of revenue in the state of Massachusetts.
Probably reached out to them because they were threatening investigation.
It did this yacht right here this is a seven million dollar yacht that by the way it was built in New Zealand.
Not using American labor.
That is was -- delivered to him.
In this Rhode Island port -- large.
I was a slap he has a seven million dollars that's it right there -- -- -- yet okay.
It's actually owned by LLC based in Ohio I believe I'm sure for tax purposes.
-- but it's right now it's in a dock in Rhode Island.
That's because in 1993 -- -- repealed there docking tax would -- -- -- it is an annual tax that you have to pay.
On a boat to docket in that state run -- doesn't have it.
Massachusetts does we know that he has a home in Nantucket and apple has been seen off the shores of Massachusetts by a number of people here since March.
Therefore he would have to pay taxes to the state of Massachusetts.
-- using that boat off the shores of Massachusetts.
If the department of revenue were to go after him they threatened to go after he said I reach out to them.
And paid the 500.
Thousand dollars that I -- apparently in taxes.
Decide if -- stop selling is trying to hide the boys avoid paying taxes on the both legal yes.
But from somebody who says anybody making over 200000 dollars a year is gonna pay more in taxes.
When these bush tax cuts are allowed to expire to meet that angers me.
And I was very angry about -- -- practice what you preach you want people to pay more in taxes pay your share everybody rich people making more than 200000 dollars a year you're rich you pay your share well -- you pay your share.
Seven million and it -- -- -- 47 million dollar boo -- congressional leader and you marry -- money.
-- and that's what he did but haven't.
There are plenty of folks out there that are making plenty of money that are saying let's tax everybody makes over 200 yeah.
-- any other way I don't get meanwhile -- put my yacht in Rhode Island again.
It is not really Kosher when it comes to practicing what you preach in my mind -- -- little unhappy about that that's fair and a little happy till about.
It's almost like you get caught with steroids and you that you admit it's a logo on people's IA admitted yes I did steroids -- even caught.
-- was already brought to everybody's attention that he was putting his boat and Rhode Island not to pay taxes they -- I reached out to them I reached out to them to give them the money because it was the right thing to do.
Massa but that's right it's like -- -- -- general.
Jerry Brown now coming out saying we have to stop the 800000 dollar.
-- -- now populist movements.
And one last thing on that Terry is not up for reelection this fall he will not be up for reelection until 2014.
So by venture but it -- forgotten about it.
-- planning time on his tax free vote.
What is moving this market right now down eleven points I had to pick Eastman Kodak to start with you and I have a thing with Eastman Kodak and -- The stock with nine lives I act every time it's it jumped -- to -- it's -- today which makes sense to me would generally the stock is up.
Didn't go to -- narrowed fewer charges higher margins.
But unfortunately -- results of those sort of expectations were -- expecting -- -- -- another one of those stocks but it was performing differently isn't gonna buy always on the way that they were done but now they're released more vital.
I looked it's I because many cities because this morning -- accompany their -- is WD-40 they make WD-40 to stop squeaking liquid that's it.
-- you find out what they're also law -- 2000 -- since.
Spot shot the carpet cleaner.
Lot of other great -- negativity from W forty hot digital radar I think.
52 week high yesterday WD-40.
That that it was Scott WDs what's aside.
-- get them.
It's definitely yes I had the media see that's cool all they hit 52 week high yesterday and all you think that -- forties I think it's up your dad used to get rid of every -- We -- -- your dad I music.
It's the same it's the same product but they make a bunch of other price.
I think he's very well that -- when I do it it's all over the place and that's just wrong on some of the that was my thought on a us company like he's been put that you would think -- they have to been bought by somebody like Chad -- yeah the big -- conglomerate now still W forty and go -- strong.
I will say though that my little can't -- camera is -- -- -- a video camera it's on my desk that I get to use it it's this pickle Family Dollar Stores this stock just keeps rocket.
Up today five point 8% because.
Activist investor Nelson Peltz disclosed.
Today that he adds a six point almost 6% stake in Family Dollar Stores that is clearly vote -- confidence he's saying it's undervalued.
Says if you will -- to get out there.
And at the comedy there's ways the company can improve itself but it's undervalued its undervalued now -- regularly been undervalued a year ago break break break the roadways are -- CB Richard Ellis Group actually this kind of life makes you go -- in second quarter profit.
They have prior -- restructuring charges last year whenever they saw the second strongest revenue growth in two and a half years this giant commercial.
Real estate broker -- come out real.
-- they topped Wall Street and expectations that stocks about it in half percent I'm still on the fence with a little commercial real estate world.
We talked about Wyndham worldwide earlier this is -- S&P 500 leader.
They're rocking on their steam -- rental business you can -- swap out.
You know if you're in a vacation weeklong vacation home company -- -- -- -- it via -- eat your share.
-- time it got thank you them.
You -- that I don't blanket.
As far as their rent and their rental businesses well they lower tax rate -- -- stable currency impacts everything beat expectations.
And they're doing it to Angelina share buybacks in the long at all major that -- S&P 500 leader.
Nine point 3% rise on the stock and finally sit maker Silicon Image up over 25% today again they swung to a second quarter profit.
They've had more than a year of quarterly losses.
Beat top line guidance they just let it out of the park for the first time meanwhile said the stock -- weekend will -- -- but to anchor.
Final thought our SA measure of our growth fund joins us right now from Indianapolis Bob welcome to the show.
Thank you what do you make -- these last few days now four days in a row on the Dallas a little bit of a rally here in the -- the Tug of war between.
Corporate earnings and economic data and it's hard to tell who's winning at this point is it.
Well we had that nice surge up to 111000.
And then made -- floor dropped out.
We fell back that is the market held firm at 101000.
And we're a long only funds so we don't short stocks -- I I would be very they're very afraid if I was shorting stocks right here it it it does look like this -- it was that they caught fire.
It does okay -- you're not and the double dip camp by any stretch them.
No no not at all not at all.
Bernanke basically laid it out for -- the Fed is going to be very accommodative we're gonna do everything they can.
They keep the train going down tracks and I think that.
We might have a slow growth economy.
But I don't think we're going to have you know negative growth.
And you know -- though the forecast is still firm you know maybe two to two and a half percent GDP growth this year.
And 33 and a half maybe even for next year.
Bobby don't discriminate when you look at stocks for the our growth fund do you in terms of -- size or anything like that and the union cast a pretty broad -- don't you.
Yes we do we did that the fund is only two years old bit.
We started this process in 1987.
And we literally look at every stock.
And anything that has -- earnings report is fair game and what we're really looking for our company's.
That are growing 25%.
On earnings so so so the stocks that that I want to talk about today will all have these characteristics.
They have to have it up 25% earnings quarter.
Vs last year's quarter.
Up 20% revenue.
Quarter vs last year's quarter and they have to be tracking -- below twelve times earnings.
And those are pretty high hurdle so we're looking -- we were talking about Eastman Kodak earlier in the show.
Were looking for companies that are growing like apple or Google.
But trade at a multiple like Eastman Kodak and we try to mix those together.
And we've had some very good results over the years doing this.
So -- -- assuming your picks now.
Cliffs Natural Resource on the top of the list.
So you're saying that yeah we are looking at a 20%.
Top at 20% top line growth.
Vs last year that -- they're going they're they're going bad or better.
And this stock is estimated in 2011 to -- over ten dollars a share.
And it's trading at 55.
And about a year and a half ago the stock was -- hundred employment.
And they mine iron ore and the car companies are not roaring back but ought -- Sales have been pretty good and a lot of these steel companies are seeing increased -- -- and auto companies did not shut down for the summer like they usually do.
They kept everybody going.
And steel demand is up and so iron ore demand is up and we think this stock is very cheap.
On a ten dollar earlier trading at 55 dollars.
Coco is not me chocolate producer personnel they have kids -- call it isn't college in you know what Bob we've seen some of these colleges really excel.
Over the last couple years in Korean Corinthian Colleges is the -- you've got your idea that's Coca.
Yet Carinthia and the this.
I wanna tell your viewers -- -- very speculative stock because the shorts are all over it and and you have some some very Smart people who are shorting this stock.
And but that doesn't go into our investment process we see the numbers the numbers are very good and why the shorts are shorting it did give the give the other side of it.
Is these for profit schools get about 80% of their funding from the government.
And -- government is going to crack down on.
How do loans -- are awarded.
And how -- degrees are awarded and then how this students pay the loans back.
And some people think this this was just a couple weeks ago that 50% of their funding could be at risk.
But as the programs in the big government standards have become come out in Hawaii it's shown that may be only 5%.
Of the students through loans could be at risk that the stock is -- discounted a worst case scenario.
And so -- ten dollars we think it is agree that the stock was twenty dollars just nine or ten months ago.
And the company's estimating her and even with the reduced estimates there's eight analysts that follow it there estimate -- about a dollar 95.
And they're on a June you're -- so we're already in 2011.
And an underestimate or almost two -- Let's let's look at ten dollar company let's anti tax lapses and -- western Digital's also on -- -- -- all the time time.
But let's talk about impacts lads it's the -- IP XL this is generic drugs.
You know I never know where you where to go with this it should we be in you know the -- are indeed companies that are coming out with new drugs in the experimental -- or should you be in the generic side that's kind of like the slow and -- Well Tracy I think the -- new legislation on health care is gonna really benefit generic drug companies.
And we were not familiar with this company -- their earnings report came out as we do our screening process.
And the analysts were looking for fifty cents last quarter.
They came in and they -- two dollars for the quarter and it basically made -- year.
And what were they got the jump -- everybody was caught flat footed big.
They they got the first mover advantage on a attention deficit drug called -- -- And so they're going up against the big guy generics -- and have.
And then they're they're they were able to get the first mover advantage and the company claims they have forty.
Products that are going to be coming on generic that they think they're going to be right up there in line and so this is off most people's radar.
But this company this year is -- her probably 3330.
And just about three weeks ago the stock was twenty and it's fallen back to seventeen so we think it's very timely at this price.
One symbol as a UERX.
The our growth fund a bomb out thank you sir we appreciate that's very -- information secret was -- was great in his front seat while our from my -- and managing manager of the -- growth when joining us from Indianapolis.
Lewis cannot ask a -- that break and Buffy doesn't it not a lot of hate you and our viewers come the president going on the view is it tomorrow.
I'd like your opinion.
She really doing this I mean I don't.
-- -- I thought I'd probably the president played golf a lot of promise the president going to White Sox games cheering for the cubs and that would have.
Bulls are eating ice cream having a sandwich it what's the name of the -- place and Edison a semi please -- and I -- tiger.
Could not I had any public any of that stuff -- -- -- yeah.
So logs that god I know I know the cleanup.
Bill Clinton when he started campaigning on MTV and each has its new generation the way things are done now you know -- fireside chats on the radio anymore.
You should go sit down on -- in the Braves.
But backpacks -- -- hi Tracy right is kind of I was ranting before we went to break that I personally think the president should take.
A one hour lunch break down on Wall Street innings in -- boardroom of some of our Smart Smart businessman and learn the ins and -- -- Many -- you disagree with me that you agree with -- that he can go eat ice cream play ball.
-- Italy's in the view about who picks up the -- -- -- governor talk about you understand as a big oil spill in wearing a financial crisis that's -- And because that view is dominated by it a liberal panel.
Well I mean that's gonna dictate the conversation also but that's fine -- -- I think you should do that to that you would you suggest makes a lot of sense.
But I know probably doing these things -- plot he joins us right now co-founder part of a lot chief executive executive search for Charlie welcome to -- Thank you for having me good afternoon all one thing we talk about from time to time -- maybe not very often has become out of this recession is oh.
We're venture capital stands where where the venture capitalist stands in terms of investing money are they feeling more confident and more comfortable going into startups and -- what have you found in -- the most recent survey.
It was the second time we've surveyed the venture community.
We surveyed over a hundred venture capitals across North America and we found that this year.
Is a lot better than last year when we did the survey and June of 2009 obviously we're coming off the bottom of the market.
We did it again this year in June and the optimism is way up.
You know we talked to a lot of small businesses during a whole crisis and many venture capitalists as well and they don't have money they just didn't know what to do with it.
Have the -- -- changed at all you know it used to be will take a shiny and now do you need to see a solid product you need to see him you know stronger sales trends in order for the DC's to actually jump in.
I think inherent in venture capital investing is -- backing innovation and entrepreneurs and many times.
All they have is a great idea and -- -- -- sketched out on a piece of paper they may not have a working prototype they may not have customers.
But that's where if there are high risks there -- high rewards and that's why venture capitalists back startups.
DC that's a catalyst willing to wait.
Long enough now is that that did the patients it has that sort of worn -- a little bit through this recession they want to return quicker rather than later.
Well certainly the whole time in a portfolios increased dramatically -- probably on average about eight years.
But I think the venture capital community has the patience -- understand that they're looking to build great companies it takes time.
Things like FaceBook linked in Google and didn't happen overnight.
So so what happens now going forward are you.
I think BC getting out there now or -- they just opening their doors and saying come come come come present us with your ideas.
I think that a deal flow or the generation of ideas not the problem that the venture communities facing right now.
The real issue was probably -- how do we get these companies -- cannot take them public or -- -- acquired.
And I would say that the window has an open sufficiently.
In the IPO market for.
The next overnight story that happened to a big multi billion dollar exit is probably going to be an -- -- -- market for the next twelve to eighteen months.
-- -- there's certain hot pockets where there are more investment opportunities or whatever there's more VC money being pumped into it right now.
Well we certainly saw that in the survey.
You know here in the US what we do really well now is innovation we're not the lowest cost of the best manufacturer.
So you've got a lot of really talented young entrepreneurs innovators coming out of universities.
And they grew up with the Internet they also care passionately about the environment so what we're seeing these investments where the utilization of technology.
Addresses problems or issues associated with environment.
So it plays really an intersection in the -- Internet and environment there's money to be made.
Hiring in the in the -- in your business and needed just seems like.
You kids at a college or people with ninety.
A few years in banking and finance RR a they have a hard time getting into work for BC.
Well our focus is information technology and -- actually can't address the other guy.
What I can tell you is that the demand for talent is much better and higher today than it was a year ago.
One of the things that we -- when we would talk to these start up businesses is to get your pants down.
-- it's eat you know -- -- one minute elevator pitch I gotta get -- front of you.
In this day of the Internet age is my -- changing -- -- -- -- via the web.
Address not to get in front of you to really -- -- my business.
I think venture capitalists back teams that -- people.
Who have great ideas and great plans but I don't think shipping -- in on -- PowerPoint or -- it out is gonna work you have to get face time with the investors because they want to believe.
In your story they want to believe -- new and wanna test -- see how do you hold up when times get tough and there are going to be tough times and start ups.
-- witnessing -- Charlie and I am sorry and Wal-Mart because I know we got to go.
-- Twitter and FaceBook and all the stuff I think -- -- you now I have so much more access to US CDC the DC used to be the guy that you you know.
Only your -- you in the bathroom that's the only way to come face to face with you right.
-- and you -- -- -- information how do you get through it Heidi disseminate what's a good idea and what is just it a shot in the dark.
Well bear in mind I'm not a venture -- I work a lot with -- albums and I think they each have a way of sifting through all the information using filters and staff and leverage.
The bigger problem is most of us don't have the band with the process all the information that's presented -- Regardless of the format.
So many times I think venture capitalists are gonna work the networks they've created they're gonna reinvested back guys have been successful before.
Or they may have a -- basis to where they want to invest and they'll go look and find start ups that support that thing.
Tell you came -- good news today thanks for coming.
Thanks for having me -- Haloti co-founder and partner -- see an executive search firm and they.
Work -- -- venture capital industry -- -- gigs a year because so many people have been an employee at that they've been sitting in their basements do little Michael bell action coming up with a new idea and that.
Get out there now there's money.
We're gonna talk to somebody who's doing just that in a little bit for that fear was here on the desk what is feverishly working the blackbird -- and that's a new -- just got this is is that that is -- okay so here you very simply put that new financial regulatory reform law allows the SEC.
It exempts them from the Freedom of Information Act a lot of people say this is not a big deal.
For years the SEC could deny a request for through the Freedom of Information Act.
If it was part of an ongoing investigation and to protect people -- whistle -- that's never been in dispute they could to redact the information they -- decline that we -- -- fighting court to get it.
The new law removes all of that and just says all they SEC has to do is say well.
No reason to know to the SEC has issued a statement.
Right we just got it here it is.
The new provision applies to information obtained through examinations or derive from that information.
We are expanding our examination program surveillance and risk assessment efforts in order to provide more sophisticated.
And effective Wall Street oversight.
The success of these efforts and this is the -- plan.
Depends on our ability to obtain documents and other information from brokers investment advisors and other register ends.
The new legislation makes certain.
That we can obtain documents.
From -- -- for risk assessment and surveillance under similar conditions that already exists by law for our examinations.
Because registry it's insist on confidential treatment of their documents.
This new provision also removes an opportunity for brokers investment advisors -- other registrant to refuse to cooperate with our examination document requests.
I think the criticism we going to hear about this is you can protect of those people.
You put a black marker Australia.
You -- out -- name are for instance when we both look like a big key to white paper to you when we obtain it through the freedom of information accurate on that please.
You don't see anyone's personal information on here -- see where this came from you don't know anything about this other than the the bid the very important part which is in that -- comes from the Stanford investigation.
Complaint didn't alleges he has he was fired.
As reprisal for reporting illegal financial activities.
That was 2005 folks this blew up in 2008 cost people cent billion dollars so they can now say.
To -- -- you don't even ask what's the -- The take away yet the take away.
Tracy -- if you go to the SEC they will -- -- you little woman go away don't bother us -- little.
You don't count your citizen of the United States who cared to let go away based on the language that's but it me and I don't you know that a little dramatic there.
The judge and everybody else -- interest that you -- is the legalese the boiler plate is a look at the language and say.
What they're saying is -- put it we're doing this for the sole purpose of protecting.
Those that I would have that I value their financial the -- of paper.
Private day today that is so but they already do that they only do that bingo.
Bingo they already Obama but now.
Now when they black it out or they fight -- in court yet there's -- fight anymore he's he's a ten steps to finally get the document.
Does that anymore but better now is that so little lost not -- But that -- well that's -- -- Here it is folks this is the new law it's and one of the 22200 pages in the financial regulatory reform law.
Well you know they sank the Titanic maybe we went down with a steady.
This -- but I think this -- -- and I know if they're athletic that in reading some of the stuff on the more than ever on them -- where they should leave Nancy.
This SEC scares me peace is -- at least not right American -- I'm an American college of art is that.
They made it -- one little -- here with little love Canada Ugly -- -- paired with the intent of slipping through it was diabolical.
From the beginning and I look.
And you -- those -- glee kids I am getting in late January that Bob but I love this is from today the new provision is just part of the U.
We've been hearing about now isn't it.
They're not transparent to pop noted that I don't know it -- you listen.
Lot of my colleagues.
Are saying to me why you think -- a big deal this is nothing you know it is a huge big -- -- -- the United States of America.
You have a right as a citizen of the United States of America through the proper steps.
Did dig into -- hold accountable the agencies of this government but now one agency at -- and one gets to say it's time to get that gets.
I want to read -- thing -- city seven says it's gonna go to the Supreme Court and can take -- -- right -- you guys -- rain in about this because I actually think it's -- thanks -- we're gonna go to break Adam Shapiro thanks for your great reporting.
We get back can I say you say whatever you want friends of Chris -- that's actually read -- statement.
Florida back to the show until -- really talking about entrepreneurial ship was doing right now Mike last former.
Fellow Georgia Tech graduate but he might Milan joins us on -- drama dot com -- -- to -- -- Good to see you we miss you in Atlanta Chris I'm sure you do -- tearing up golf courses left and right as you know.
You can't think Dixon you know -- he did in front.
Bracing for you Nixon did tonight I'm glad about that Barack -- I reckon he's right.
Mike you've got a good news site it's Geronimo dot com tells little about what it does.
Well it when we have bill Geronimo Chris we we had a few things in mind and and mainly.
Americans are some of the most generous people in the world however we have the least time.
So we built a system where we can raise real money fast for nonprofits and -- -- and 2005000.
Even 101000 dollars in ten minutes time.
Which is the amount of time it takes for an owner to list the property -- Geronimo and right now we're just asking.
Vacation rental owners.
To log on to Geronimo dot com and give us one spare week.
At their vacation -- to help their favorite nonprofit.
In my fantasy world in Miami.
And I go on your -- say and I -- you might -- give you a week you have to over what do you do.
Actually after hurricane season I would do that here a video weaken -- that.
A cancer have a week in November we would as you did as you listed your house.
We would basically be asking you what nonprofit do you want to support as you -- your house so the difference between Geronimo.
And most of that these ongoing BR BO type -- of the world that that currently -- properties online.
Is it just has a charitable component to -- -- -- you listed your house who would ask you Tracy what.
Nonprofit do you care about and where do you want the pro series ago we -- also rescued do you wanna get half of the rental back to you or do you want to all the go to charity.
What are you finding in this invited because I imagine people.
People want to give to charity but they were much more apt to -- in 20052006.
When things -- just -- along now they have an issues.
What are you fighting the reception has been.
Well I think actually it's created an opportunity because.
People are looking for ways to be creative to make up for the fact that they're not being -- terrible and other areas so they basically we have this underutilized asset namely a vacation home and let's put that to use charitably and we know we wanna help our church -- PTA or everybody typically has something that they want to help.
They might not be able to do that the way they used to but they have an underutilized asset that they can turn into a donation for their favorite nonprofit.
Mike though what's the difference between me renting an app of the week and taken the rental money and debt making that turn that into donation -- I have to go through you.
Well you don't have to I would encourage you if you if you could do that to do it we where you are building a brand that I think folks -- associated with giving.
With charitable causes and we'll have an awful lot of folks coming to our site looking to help a certain charitable cause and looking for a property so.
We we'd encourage owners give us or donate a spare week.
Now and help say the Gulf Coast effort between now and this August 7.
And then transitioning will be will allow you to help any nonprofit starting September 15.
-- I got about twenty seconds.
You started another start -- the last -- times had a lot of success with it sold to Comcast made enough money where you -- just got -- -- off in the -- why did back into it right now and it's so it's it's a difficult time.
Well I you probably -- -- -- from too many of your -- but we've created a for profit business that isn't really about making too much profit.
Were more about doing something that I think will enable owners to be charitable.
And find a way to convert their vacation rental into a charitable donation.
Might we got to run thanks man good seeing you again you know I think we're happy to see you back -- -- all this miserable in college to.
-- -- -- It was the and like my glass to a detail and graduate pastries and also check out Geronimo dot com that's really nice I didn't -- greats I really yes.
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