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Hi Tracy Byrnes Chris -- welcome our new digs you can watch -- on foxbusiness.com.
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It's cool the most -- contacting together I was Italian sailor that your intent today right yes -- -- -- -- up under ninety points.
Why not it's up we had some good news that we act and we had a lot of good earnings.
And the economic data was all that Correa -- housing number.
Is independent -- it was still down five point 1%.
Existing home sales.
Better than expected I guess I want as -- all that matters right which he had the whole concept of better than expected look I get it I understand that's what it is -- way it works with.
If we're better than we were last here in this -- -- I wanna keep bringing up the Delta Airlines example but.
Delta revenues 17%.
Better in the second quarter of this year than it was last year.
But they disappoint.
Those sold off I am all we're trying to do is get better we're trying to come off the lows of this of this recession.
In need whatever however you want to call it.
Late -- terror.
Or late fall early winter into spring 2009 lows of the recession summer coming off those lows we continue to get better and better and better sequentially.
Is that good is that we're looking form.
Absolutely but I mean there's got to be -- way to judge right there's got to be some basic comparison and there's got to be some way to say.
You need great -- you did I mean it's a game and so -- you got the rules of the game I don't know and that's where the analysts come and I suppose that did get they want to be paid for something again.
I mean I would be -- almost looking.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That if they hit.
Here -- both.
If I can deploy a senior vice let an ugly executive vice president Donald and -- I'm I'm very happy when I talk about commodities dumb I'm gonna parkas -- Global futures vice president because that's what the firm in life.
So I had a look while we get into all -- -- -- thing as Chris mentioned we had good earnings we had good earnings from even UPS and I thought that was we talked about this a little bit earlier in their move and product.
That was important I had -- -- more stuff here.
-- more stuff you're buying more stuff Continental's numbers were good I mean all around -- so we've seen without a pretty decent day as earnings.
An accident spyware the busiest days of the earnings season.
Today in general -- between during the day and after hours we have become includes.
Caterpillar in the -- mobiles -- -- them not to long ago you had very good chemical company earnings.
And -- especially in some others three and his abilities like the Dow Jones Industrial Average and they had a good good -- -- and you know you wonder.
Whether every day is -- -- headline.
And every day is -- you -- And whether or not a lot of people seem to be just momentum traders these days instead of long term invest we'll tell you see that's exactly what I see -- gold.
And I see more of driving gold that I see it in copper.
Copper seems to be.
Very interest thing copper held up yesterday when everything else -- often in that complex.
You had unusually good surprisingly.
Outlook from housing and then look what happened with Fiat and Chrysler.
And General Motors from doing so well in China.
Copper held up a lot better and then all of a sudden people discovered.
That -- copper.
Could be cheaper than buying property in the USC that the end -- and that's called arbitrage isn't that lets look.
-- play on global recovery golf course that is -- and that's a major play.
And it seems to be more of the signal.
Than a lot of other things golf course you'll -- good jump up.
And in spite of bed used in crude.
Crude oil today was up two dollars.
And gee -- you're not gonna have 7980 dollar crude unless there's real demand some place.
And it's certainly coming on the heels of when they stop the leak so you have storms coming.
Again you have anticipation.
You have folks that say hey it's a summertime maybe I -- -- buy heating oil for the winter in the longer term out.
And gee -- we're getting a real good two -- market everything.
-- see this overall market these days then.
I just heard that there's going to be another silver ETF does seem to be more and more -- being registered.
I think that could help silver.
I think silver.
Is as you know we quote poor man's -- on the floor of the exchange on the other and -- as a bridge between industrial demand.
And investment demand and now is it the best of both worlds or will one -- -- of one you know.
That's that's interest -- an icy silver hitting twenty bucks I think over the longer term are -- getting.
In -- with the PS.
I don't know for inundated but I certainly think it's like having a Starbucks on every corner really is is when -- you're in the article why is that bad -- a bad thing because.
Does -- add to volatility.
Does it confuse the market place is very confusing to a lot of people because there are so called plain Vanilla ETF yes and then there -- double triple leverage.
ETFs and it seems that the plain Vanilla ones really.
Live up a lot more to what the investor expect that in some of the double triple -- there.
An explosion NET SE TF are created after the mutual fun.
Pretty much the -- mutual funds came crass and down because they got caught up with all these fees probably in the late ninety's that's when ETS -- -- front.
They're -- hey we're here you can -- -- every day and we're cheaper.
And that's when it started and I agree that it got back -- -- faster not as crazy because now use that -- well I didn't happen because now you're getting paid yet but if the -- -- in ETF for just about any segment of the market and yes these are by no means cheap as a matter of fact they could arguably more expensive.
Dennis Pacific mutual -- and that -- been left.
Very careful about that yes they have -- and you tend to -- -- ETF a lot more in an -- and then that's more dangerous yes and I think so I think that it removes an element of long term investing.
From the thought of anyone.
Because ETFs are more used -- hedge funds and professionals to hedge against other positions absolutely.
-- you and I was talking before the show started about how you know this looks like.
It's just people getting in and out of the market real quick real -- players and -- -- were able long -- later yes those were in -- for the long haul are either in it or their out of it.
And an absolutely right and are -- seem to see that in the in the open interest in gold.
For example which is down from say June 16 it was -- 600000 plus.
Today was like say 559000.
From the -- -- loss open interest.
When you lose open interest that means people -- voting with their feet and have left the segment of the market you know and because.
They are either gonna -- NE TF and stay in for longer term.
We're not going to roll over their positions from the longer term because they're concerned about the direction of the market.
And actually the direction of the market lately has been a little heavy for bold -- had headwinds -- So -- where it.
I mean since gold is -- Berkeley medal of choice guess where do you stand with it I mean do we do we still keep buying doing well -- That every time you have a major selloff in -- that seems to be the buying opportunity and they keep coming along whether it could be next September.
When there is a gold sales -- by the ECB.
Each year to sell 500 tons of gold.
And last year not -- -- member banks sold the gold but they could have sold.
Or some other headline that we don't envision whether it's coming.
Mark your government or whether it's coming out of Spain or someplace so what's -- what's -- -- when all the -- ago.
Oh well it depends when I've been saying that we're gonna stay like somewhere between.
1160 on the down -- to about 1225 to 1250 on the upside I think for the foreseeable future.
Even getting in and -- get out of it and I think that that's right what -- oil oil right now butting up against eighty dollars for only the third time since early may alien race doing well now what let me.
Give you another -- on oil are high oil price actually is another tax on the economy -- it is okay.
So but on the other hand oil has been down from -- 140 dollars to seventy dollars.
And and that should have helped now right is it -- to help I certainly hope so but now you have the storm's coming you have people being concerned.
And I know I quest -- it doesn't -- my car this morning -- -- stuff that's not seat.
Judge Gerald senior vice president -- your -- most of the additional parties.
You know I haven't vice president global futures RBC capital markets we alone wealth management.
Wolf look at what he's -- -- -- -- Thanks good to -- his statement examined rounds we get it done now down since it actually overt to Jeff block out Chicago.
Reporting on this AmeriCredit.
Purchased by G and Jeff I heard your interview with Brian -- this morning.
You know first tell everybody what's going on but I -- tell you I'm on your side -- -- -- was against it for us now live on it in and then we will -- -- debate it.
Followed through if there are no sides here get exact same thing -- we'd like to get our money back for General Motors that's the bottom -- already we don't want them to make stupid loans again because that's what happened -- GM AC here's what happened today GM went back and essentially bought its own captive finance arm that is to say remember GM AC when they had their own.
Way to make loans to people wanted to buy GM cars.
Most of the big manufacturers have -- Chrysler doesn't because they went bankrupt as well.
GM hasn't had one since they divested of GM AC and it went bankrupt so now they've bought AmeriCredit which is a Texas firm.
43 point five billion dollars that's partly our money by the way that they spent on that.
But they feel it's very important for them to have their own finance arm because that enables them to make their own decisions about who will lend to.
Ford could do this because they got Ford Motor credit.
They can essentially be a little more risky about saying -- you know Tracey she maybe he would make a lot of money over their -- -- the fox but.
You know she's got a good credit history and let's go ahead and make this loan to her because we think she's a good risk somebody else might not do that.
So that puts them in a much better position to increase sales and and really have.
More level playing field with -- competitors.
They already had a relationship with AmeriCredit they were -- so they were already making deals about 4000 GM.
Show rooms around the country.
If they were doing so well with that deal why -- they find the need to go ahead and buy it will -- now be making riskier loans putting them in jeopardy once again that's the big question.
Yeah I guess the other question -- I don't know really much about AmeriCredit at all here Jeff what are they.
Having been profitable what is their -- of loans look like now anyways that GM is bringing on C now -- book.
They've got about 800000.
Nationwide and they make loans by the way not -- -- the 4000 GM dealers but to about 111000.
Auto dealers around the country so GM will be in a position they're gonna continue this will be will be making loans to its competitors as well which is a sort of interesting point that I just unearthed.
And the last sort of interesting point that I found.
Not that this is that on common but.
It's -- on the AmeriCredit.
They are very clear about how they deal with the loans that they have out there -- got about.
Nine I think it's nine billion now in receivables.
They essentially securitize the loans buy and package being the -- packaging them into.
Asset backed securities and showing them on the open market so we -- the same sort of thing yes that you know cause trouble before not to say that it would cause trouble again hopefully they'll be smarter about -- this time.
And this is a company that.
As a pretty good reputation for doing this has been successful operated since 1992 so hopefully.
GM will not be twisting their arms and saying hey loan to -- over here who really can't pay it back as we want to really make assailed him.
That's what gets in the trouble.
Yes but you points you made some great points this morning with -- -- that issue or Bryant stands Brian's concern was that.
We haven't paid up GM AC and we have finished that's taking care of all this the government spending our money very recklessly -- not caring.
And the same time we want GM to go anywhere -- got a deal and make loans when he Coleman risky.
Maybe it's just taken a shot on somebody and you know what there's room for that -- Exactly I mean I think you know you can't really -- -- -- -- can't give them government help and because you've done that -- completely tied their hands and say you can't compete.
In the marketplace because you haven't paid us back yet very I mean your competitor Ford obviously has their own captive finance arm so -- many foreign auto makers.
And you know they're able to make their own decisions about who lends to and GM was never gonna launch -- -- successful IPO they've got to be a level playing field with everybody else that was certainly takes a step toward death.
Yet thanks man they -- death.
Thanks guys Jeff Flock on the forgo any GM acquisition rather AmeriCredit Jeff Williams misses were -- around titles you can make an executive vice president.
I was passing on those things -- -- -- guy but he's also in the gulf.
He's like you know walking through marshes.
Olbermann good report and they go man okay he's my idol OK you have an idea -- is tough now that he and I am having at daybreak.
-- -- -- I welcome back to a 195 points that isn't.
So what's been -- sharp stick in the united silly.
On my -- to keep this going on what we're sort of mean what data is that we peaked at about 10 o'clock we really -- -- -- hit about 200.
And we got a flat line great -- on the you can.
-- I tell that then you plateau up almost 2%.
-- flat so that's fine by me we'll -- -- right -- it.
We can't laugh at me because maybe I -- -- -- with you -- because I want to -- stupid movies.
And memo he's afraid that some of -- jump out of a back seat when I get the car.
And -- and I detective -- sometimes I would -- his -- my kids are not with me I checked the back -- I really did take -- nobody in that.
Well low low on this intruder heartbeat detector that I thought was.
If it's -- -- -- -- bad -- it can detect the heart rate of someone in the backseat hiding waiting to chop your head off.
Fiance and now it's going to -- options Keller had dinner wherever they -- -- shot that nobody took an option.
The only person that -- cardinal -- -- -- Yeah still -- close look how.
How Beatles -- -- you -- hard I don't know so -- it was part of this 550 dollar option package I -- everybody to the the packages -- -- I think none of them but I -- everybody else to quote them.
And it it's it remotely checks for a heartbeat -- the -- -- -- I don't know how it doesn't but it did.
One of every four buyers actually said hey that's agreement the nanny was put him listed easily military grade and it has passed away -- you -- driving around town but the reviewers of the fact actually -- ahead.
You know I as a manageable than watching too many slasher -- -- and what the heck.
I don't think -- it's a Swedish company I think the most peaceful nation honored.
We'll -- nothing ever happens the business on the part of -- being the safest vehicle on the planet rock.
-- I well.
It's not even -- -- -- -- I'll put it went -- -- -- the on the potential list of vehicles for -- in an expert -- apparently like it's gonna be -- that what the hell were they thinking we can.
Susan if it -- news today author of does this make my assets look fat I love the title of the book explaining what -- sold out.
I'm basically what the book is about it's it's a personal finance -- for -- and and its goal is to make but I like to say the unfamiliar familiar that I explaining investing through the -- like the lens of dieting.
Stay with just really to make it very understandable very approachable and take -- the intimidation factor.
From investing so more more than winning whale try and be an active participant in Iowa.
OK so it's set -- like a guidebook it's set up like a diet but and the metaphor lack.
Goes -- do with the bucks so for example -- Asset classes -- asset classes.
When people start to think about it -- the classes -- like food -- Fifty compare them and can put a picture in your mind so much easier for people Terry -- are so for example I'll.
Equities -- equities in my mind and a similar to carb to protein drink your body needs -- some pro team.
-- for energy.
And then it's and then your portfolio needs equities.
For energy or you stiffed you for the energy but let's say energy that's -- -- -- -- I'm so those kind of similarities that really built the picture.
In that in someone's head -- and so it's a much easier way to understand and it in the investment -- all too often we talk in a language that we all understand but the regular consumer.
That's -- -- -- hell I didn't understand that time is my question isn't why gender specific.
Well gender specific was really just because.
Just really tell because the diet analogy and because who I am this day though.
And really was really more or that.
-- The lid -- -- to I thought relate that exceed the fact that their pants are too tight what does that mean from investments or something.
Been and what but it really think in all honesty it's it's a book for everybody back and say oh but it's just really more because for the died announcing.
But on the other side of the fence is the fact that.
-- -- our site to control more and more of the wealthy -- -- expected around 60% of the wealth is gonna be controlled by women and we knew.
Luck and you talked to a lot of women out back there very well educated but they really haven't taken an active role.
In their wealth and a lot of times it's just as they don't have time -- -- working full time erasing their K it's -- -- doing it for them.
Or they just feel like it's so big that they'll never -- -- so they just stay away from it.
No send in because of that.
I decided that it was really important to focus on the women's side of the sentence.
And let's face it you can gain ten pounds anywhere that we can't exactly still a bit and the bottom line though -- -- that I thought was the most important part was that.
You're sick you say the only person responsible for you is you and I think that's an anything in this world -- we were sitting used to tell them -- all these new.
Consumer lending rules and only about -- -- at the end of the day you have no idea exactly you respond -- you can eat it carried us.
-- -- -- aren't exactly exactly in -- they gonna believe that and investments gonna have a twelve and a half for the secretary constantly.
You gonna get hurt at the end because there's no such thing it's the same type of concept right sounds too good to be true it -- com.
-- -- setting a goal Soledad for basic food groups -- that the buddy system get to sell financial calamity yet at.
Does the support system in place -- -- workout and -- and getting better shape.
-- what do you mean by stripping down to see your financial shape putting human.
Gas -- for me when I sat down -- the (%expletive) I was like okay.
You know for me when I -- to get serious for me to diet I have to really literally stand in front of the -- naked and just.
See it all there and that and get scared I didn't tell you how did you -- it is so simple you that exactly.
In -- family gave us.
That -- my asset is bear it and insane and say they it yeah yeah they get that save and am.
Is that that's when I get serious and so it's the same thing and I -- -- and when I look in the -- get serious and I seen.
What is it that I really want -- accomplish and how hard to I have to work.
It's the same -- -- you have to look at what.
What you have ready get real what race what is your balance sheet what is your income statement what is your cash flow look like.
Because only then -- now what is your situation look like today will you be able to.
Get what you want to my house.
In real quick that's very thing he's ever had people come to me and say look I'm this much in debt and my credit cards so what do I do and the other choice should pay off and then you can tell him look if you only -- an -- off every month.
It's going to take you 87 years to pay this thing off -- realize that I don't have a real concept of me how much in debt they're you know.
That's like that's kinda the one good thing that came out of the new rules though is because now you actually see on your bill -- now -- -- now.
That if you pay the minimum it will take -- 87 years yet if you beat it you get it done quicker -- and other does this make my assets look fat.
Excellent thank -- we want to thank you know you I love this fad diets to great -- but that doesn't work yeah.
About read some of them are absolutely so you set it up that flight of the ball.
We have crested -- to 200 on the day 200 every light -- crested -- 200 to mound it's 200 and we've -- -- -- above.
200 SE that's like a hiker saved CES 203.
On the metaphor on the -- right now and something's -- as market.
Hire a lot of things and move in the market hi -- attack.
That's an elite athletic Virginia everything's on junior will tell you know these -- taking metaphor of making sports things I really got back a bit well Caribbean.
This is right up my Alley -- back.
Apparently they recovered from prior -- -- this.
And the cruise operator says they're continuing to see more signs of travel tourism recovery and they beat expectations.
I've never been on a cruise that might be the next place.
Ernie sends me I have -- -- cruise and I cannot believe I did not stumble off the side -- that -- let this guy here I -- -- going -- -- yeah I -- you eat and drink and eat drink and sometimes gamble on lay around on the day -- really is some minutes.
It -- me.
Discount we've been hearing from all the bank's second quarter earnings up 91%.
-- -- -- had.
They continued to report growth in assets under -- -- is -- it's all -- stuff.
And believe it or not their investment -- to their being -- making money off of and of course they beat expectation.
And here it is this -- goes along with a low tech world we talked about earlier write home networking products maker posted better than expected quarterly profit on Wednesday so last night.
Keep -- strong revenue outlook on -- it's just kind of impressed.
That's a winning formula again that's what it is right say that this is you know future looks bright and -- -- AmeriCredit we're talking about earlier this is the finance auto finance -- company that.
General Motors is going to but pretty much with our money they put five billion dollar cash deal.
Aimed at financing.
Being close sub prime -- global non prime loans to suspect -- OK I consistently get.
I could this you know the dashed line in organizational structure it's not you know working for somebody to think this dash.
That's kind of what I just thought when you said that -- -- -- -- fine is just not -- floating around out there is somewhere else I.
I I am though and the continual supporter of sub prime anything as my first mortgage with subprime and so there's there's a market and there's a reason subprime was created -- the first thing to keep people shop.
BlueLinx is my little little cat played today it is up 35%.
Because cerberus offered to buy it out and I'm sure it is a good thing only with his service has -- greatest -- criminal.
But nevertheless -- shareholders very happy today.
It's a distributor of building products servers can't take it over.
And the -- up 35%.
Of course very famous for taking the bath with Chrysler.
Wallis -- the ball meets right now so that we don't talk about very often the maybe we should because reits have been flying.
Well the first step in 2010.
-- young is here is -- fully -- at analogic capital management allies there I don't good good to see you all why -- have -- performed so well the first half of this year.
I think in general there's still value left in the space you've got to remember that -- so about significantly almost 70% from its peak so.
I think there's still value left in these names in terms of commercial real estate holdings in general.
You notice I think -- -- -- on April 23.
So the reits significantly outperformed I think goes up about 19% vs ten for the S&P.
But conversely we kinda held our own on the way down so it kind of suggests that they're not this volatile -- her.
That goes down just as fast as it goes.
And the fact that we've held their own I think suggests that there's still value in and in a lot of these names.
Why is it because people are starting to come back and say.
The market's going to turn eventually and -- blown out.
Strip mall that looks like Vietnam eventually will because again so I should buy it now because up otherwise I don't I don't get it.
We know they still -- commercial loans are set to explode we haven't seen the fallout from that yet we see offices -- sizing.
Yeah and yet there's upside.
No I think you have to pick you have to be a stock picker in the space I think -- her office buildings in Manhattan for example I think there's a market for and I think they're still undervalued.
I think for the shopping center that's located in a very nice demographic.
When high income and high density.
I think there's still value left in those spaces now that lifestyle -- that was built chasing.
Rooftops and -- -- and you know on the outskirts of Phoenix there's probably not much value there so I think you have you need.
People like us to pick the right real state forward to.
Most of your names and explain to me at the same time specifically what you like about its most I was Saul Centers incorporated's BFS -- what you like about them.
And then why they fit into your model of hey this is what I'm looking forward -- in general.
Okay so -- senators is a pretty small company not many people know about them their relatively under covered.
They have a -- about fifty buildings mostly grocery anchored neighborhood senators concentrated around the DC and Baltimore area.
They have -- -- average demographic which is what the retailers look for.
In a three mile radius is about 75000 dollars per household which is pretty high you know which is significantly higher than the average but its trade -- -- trades at a discount to other public companies that have similar demographics.
So it's sort of an undiscovered name.
It's a retail name and I totally understand that we're still going through a process were to consumers -- leveraging.
So I can see the reluctance I'm -- -- used in Vietnam analogy but I don't know I think you unit.
Kuwait City in 1969 Vietnam that's that's the -- and I can't -- and then.
There's a lot of stores would you know do it and do without tenants.
And I think you have to rightly concerned about that but that's not taking place in in in these markets around the DC area would demographics.
That that that's all -- that so I think there's there's little -- -- nuanced story in terms of commercial real state.
It's not all falling apart and some -- great.
And you -- it indirectly.
Confirms that yes -- -- let me ask you before we go to your picks because I -- one more question about -- in general are you worried -- -- -- structure.
Because right now it's got this preferential tax.
The structure that you pass everything on pretty much and that's the other one -- -- shots owning them.
Are you worried that in the midst of all this financial reform and they're coming out everything about -- changed.
Well I think.
You're going through -- period I mean if you take a real step backwards that we're gonna have deficits both on the municipal all the way up to the federal level.
So presumably all of us individually and as entities -- going to be under greater tax burden sometime in the future.
I think you have to anticipate that but in that regard -- are not any different.
Than anybody else I don't think will be under more of -- -- as far as taxes concerned and any other corporate structure.
-- -- -- -- -- It is -- -- the bull's -- where everything exactly how.
Your -- -- from a geographical perspective -- -- senators Northern Virginia DC Baltimore area really strong right now as far as their economy was in real estate.
The next -- masters company and they seat.
In a development Santa Monica California.
Southern California sand stayed real estate really under pressure right there it coming up Alan we've been at Santa Monica not say unless -- -- carve outs -- -- one area it's -- -- it is great.
-- mean a lot of guys and sell out people in Santa Monica actually drive down the south coast plaza.
Two to go shopping I mean there there isn't a lot of retail around and that's one -- it's a nuanced story right if you -- California it's going the highest unemployment rates -- on -- Friday why would you be excited about that development.
And I say well it but look at Santa Monica there has been a new retail development there in you know god knows how long.
I think they were able to work with the community did to develop the -- right I coming by you guys to go out there it's going to be really exciting is three levels restaurants on the top floor.
That fact of the matter is it's under retail.
In that area it's a pretty exciting new concept it's it's it's one of the few miles they've actually been built in the United States in the last ten years.
And that actually it points to the other full story by reads right there hasn't been a lot of commercial real state.
It dismal housing built yet that's you know there have been a lot of office buildings -- and it hasn't been a lot of malls have been built.
So presumably we're gonna trough.
And we're gonna come out of this this recession there hasn't been a lot of things that hotels had a lot of malls have been -- You're gonna have a lot of lot less competition.
And if we recover I think you're gonna have a -- sustain recovering commercial real estate fundamentals in the good markets.
For the foreseeable future.
Don't think it's -- stock pickers market in the -- world as well consider we go from Santa Monica to Boston sure.
So that the again though it New York Washington basically big metropolitan areas against the -- taking a -- on.
Commerce pick it up again.
Absolutely I think right now I think you have a better chance the landlords in this dvd market in the central business district markets have a better chance.
Of raising -- than in the suburban market as of this.
You gotta think about -- who you have to look through the landlord to dependency.
Who are who -- -- businesses that are doing well right now it's the high margin businesses right you've you've heard stories that financial services firms hiring again.
So presumably the pickup in business is going to be better in the -- markets than it is in the super markets for the foreseeable future.
-- when you guys ask me for some of the names on the things I want to pick up what's teams.
The thing -- -- thing about Boston properties is that it's got about eleven dollars and cash and it's got access to very robust unsecured bond markets so.
If you're at it and people talk about this commercial real estate distress and I'm not.
A Pollyanna I think that there is going to be distress.
Opportunities in commercial real state it hasn't taken place as much as people have said it's taking place.
But it will take place sometime in the future and I think something like Boston properties it's a good vehicle for investors to ride along side with.
In or to take advantage shows about the stress because they've got the cash they got access to pretty inexpensive corporate bond market.
And I think you can take advantage about the stress through that through Boston properties annually to -- what is the minimum investment into the fund.
We don't have mutual fund we are primary we have vehicles separate vehicles for individual investors and but we've mostly in deference to national.
I'm just having 2.4 billion in assets under management yes.
Of great thanks so much thank you so much less having genuine -- -- -- -- capital management welcome reads today got a lot more he gets it about the rest of -- felt.
-- -- -- -- Really good went out masking -- I will tell -- -- Let's tease him.
Let -- back to foxbusiness.com.
Live Chris cutter Tracy Byrnes right at the end dot com as well as a Fox News Channel that -- website now -- ads on his -- you rooms page.
To check this -- -- most tragic and people out there.
-- -- -- Business lunch -- and that's a good one thank you you can do now is holding on at 200 in two points pretty much.
What do you say we plan we were hiking and we -- -- -- -- -- now and hundreds have been who's really calling the stupidest thing I sit all day will be like I didn't get it but now I get it.
I did tell me what -- your -- Well I'll tell you.
-- Forbes comes out their lists as we know when they came out their list of 2010.
That top ten sports teams by value.
In the top ten earning athletes now this is.
Beginning of July 2009 through the end of June 2010 that's sort of the Forbes's.
Athlete -- fiscal year that I still love the number one that sports franchise if you yes yankees.
-- to close -- the Yankees global -- -- -- franchise Manchester United.
It with a bullet by the way -- soccer team Manchester United.
Neither policy and I -- -- one point 835.
Dollars these are really high these numbers by the way -- -- -- cowboys one point 65 billion dollars that's something that has gone up a lot.
It is -- cheerleaders.
-- but one point six billion that's a lot of money have a lot more money for the Yankees -- I really thought cameras.
-- sign yet so close a crash.
-- the one that's interesting in the top tenants in terms -- teams were the Houston Texans.
Because he does -- -- soccer teams -- the jets and giants knew that makes sense of the Houston Texans -- and football team the NFL.
All -- all 32 NFL teams are in the top fifteen -- you an -- And -- youth -- just go with me on this one is that that's a long time ago.
The Houston Oilers moved in and -- in Texas -- franchise act right so is there with me.
All 32 NFL teams -- in -- only five baseball teams to NBA teams in the top fifty.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- With -- mining and -- have to have prompted surprising that only two NBA teams and probably I was getting guess those.
Yeah lakers yes and eat no knicks didn't excess that even though -- terrible -- gave another terrible.
There's still worth because that it's the values that you ran out I had baseball teams.
Yes yankees -- I don't think that the Yankees Red Sox and that's -- -- -- and that makes sense and that's in New York.
Cubs Chicago Dodgers LA it's the ones that make sense on human Iconia and -- Our athletes by the -- real quick top ten earning athletes number one.
Tiger Woods 105 million dollars an episode I still.
Well certainly this can't office what's illustrated saying he will make ninety million dollars in 2010 so still a lot of money Tiger -- number one.
Still number one called haters gonna let you let a lot of haters even on this show -- Tiger Woods now if he had some seven Nazis on this show Tiger Woods would never.
Not -- and yes.
Still make -- ninety million still.
You know my theory is he's gonna come out crying -- -- -- on endurance and I have no -- -- campaign.
These suvs get in Kansas gonna -- it.
Although that he's gonna do boxer Floyd -- Mayweather second Kobe Bryant third LeBron James was seventh let's not forget LeBron is making most of his money coming.
This upcoming yeah.
Even including this coming month though he's seventy before this deal did god he's going to be more like three or four after this deal with Kobe Brian sent the reason the three and -- -- Phil Mickelson number -- David Beckham number five the I like Beckham and you -- -- you have -- is number nine yes no Formula One drivers I was very surprised no Formula One race car drivers.
Because that's internationalist -- comes here other bar get hurt the sales and marketing jungle beat Kevin -- eleventh on the list I just thought I.
I thought Lewis who have done this list are you in it yeah I mean.
Here -- and myself out of it and it but didn't you know it's it's -- him these guys are working hard there and -- -- -- load of money.
It is a -- and -- it is being motivated its interest he -- -- too because -- merely tell brand destruction we certainly although BP and Toyota this year.
-- Nationalists here that's when he was seven wall streets of interest and let's have put together a list of the ten greatest brand disruptions in the first six months.
BP went from -- -- -- -- you a 100% and bring him value gone -- an amazing Tiger Woods wasn't on that list right I don't know that was that we're seeing by these numbers if you believe these numbers they're kind of book you know it's an art form it's not a science but.
His -- is still okay surviving hanging in there would you agree with that well branded the end of the day is about popularity right inning when you look at small companies brand isn't necessarily important when you're a tiny little accompanying -- -- about your product.
What happens is you get to be well known and essentially that brand starts to carry weight and of course Wall Street who likes to bet on everything in -- in any thing has to take a look and say is this brand and it actually adds value to the business or is it gonna detract fair and so they're -- constantly speculating trying to get ahead of it to figure out which way it was going.
I looked -- the list of -- one of the most interesting items on the list was Johnson and Johnson and McNeil right because we all remember what happened with the Tylenol scare years and years ago and then they managed to overcome that.
And actually bring trust back to the brand by the way they handled that now here we are again in the list is talking about McNeal and Tylenol within the scope of what to what it's doing to Johnson and Johnson's -- But I don't think the general consumer actually has a sense of that.
And when you look at the contradictions in what the general consumer does the probably the most interesting thing on the list with Toyota.
And we all knew about all the media hype about what happened with Toyota in what they -- done to their -- quality and while they came down on the JD power survey here they are in their sales are actually up.
So what does that actually tell you about what brand does to the actual commerce.
I think PR wise they got clobbered.
Just everybody knows these companies that lost a hundred billion dollars in brand value since January 1.
We qualify that well I don't necessarily believe that it's that it's -- science much like you said Chris I think.
This is Wall Street's way of trying to figure out speculative -- what it's going to do to their -- down the line.
And the fact is they can turn around simply by offering a product that is dynamic and something that the people are really interest to just quickly we're translating this into sales were basically what we're doing what we're trying to translate out trying to translated into sales and what it's going to be the stock -- it doesn't have an impact.
On profitability unless it's going to actually impact what they're gonna have to spend to make up the brand and that's the issue with BP right now they're looking in the amount of billions that they're gonna have to spend.
To get back to that place that truly didn't you know if we hadn't been for the BP -- who actually thinks of Exxon related to the Valdez -- that was many many years -- it doesn't stop you from going in the station in buying gas truthfully -- drop their price a little -- and they were ten cents -- gallon everybody else and everybody would forget about what's going -- Louisiana and to save ten cents a -- it's also the intangible that if -- -- he wanted to sell itself you know because -- talking about.
The value of the assets the hard assets that they have.
Plus the value of the brand out there Randy is zero -- that net intangible is zero the T get anything more than just that she needs the blue clear cut value with the yes of course but hands down the brand value itself from a public perception is going to be a smaller percentage than.
What the cost of the actual cleanup is gonna do and what's that's what that's gonna do to their balance sheet.
So it has some impact but not -- time and really.
But one of the best examples it's not on there but we -- -- talk about brand vs the product itself.
Look at what happened to cope when they change their recipe right years.
They went to the New Coke and everybody said they didn't like the product and all the sudden it had an impact on the branding yet today it has zero impact and they're still number we'll get a real quick comment about that though you -- -- them purpose.
Yielding brought attention to themselves mean everything they do is on purpose in some way but I don't know -- necessarily think about -- desired results and -- Cook the original -- that -- like today I.
Yeah actually opened the way these companies can overcome it is is connecting you know we talked about the last that I -- here it's all about empathy it's all about what -- they solving for the customer.
And if they can connect back with that customer on a direct basis with the product and with service that's actually going to make an impact in their lives the brand becomes secondary -- brand is just an issue of being able to have create loyalty among their loyal and -- -- people are always loyal that's white Toyota sales are.
-- we have to wrap up quickly Google.
That's kind of thing a kind of mean and at the end of the day did they lose brand value -- the I'm running a -- Google.
Well exactly they lost brand value within the people who actually care you know I always laugh at a company US to put do no harm in their motto so that they make sure that they do know are right.
So that's -- -- you know we're is their brand their brand is wholly recognizable it's the -- is being isn't even coming up anywhere close isn't yet.
And so until until people say well I wanna go do something else because of the way that -- that search is it is benefiting them.
Google's going to be the top ran a negative continue to stay in that place yet to an analyst with BP -- a little -- -- -- ought to have board get hurt in the sales and marketing general thanks for being on the things that -- -- him thanks again.
But I'm -- to continue -- -- -- Putting -- on BP and seamless plug up so that was -- intent on that list elevated and Google and Nokia and grandma were all Sony was on the Sony Sony adding that -- has struggled but certainly for fertility.
By the way on that list in the list was and was 1247.
Wall Street it's interesting web sites and they rejected it more out of luck than anything else -- daylight it is blood collection of -- his.
The guys -- I -- going out there and you're right now.
I love this bit -- title.
-- your story isn't fighting is back.
-- that say that again so why didn't let that make.
-- could -- yeah get Joseph Biden is here in Alabama I can AM I don't Biden is here.
I wish I we we just fed the video to New York of the vice president soaring the -- or incidents that are.
This is the strategic kind of planning area where they coordinate response to the oil.
I don't know if you've got that video if you can turn it around and show folks but I'm gonna stay alive and if you get the video let me know.
This is the area where the bloom is cleaned him and sent back out trying to prevent oil from coming into the short.
Vice president got a tour this whole facility but he also is meeting.
We fishermen and business people here from the Alabama area.
Also with the vice president and you might even consider perhaps even more important is the incident commander retired admiral Thad Allen from the Coast Guard.
And it to fifteen he's going to hold a press briefing.
And what's important about that briefing is we need to know if BP is going to one.
-- -- you -- the macondo leaking well site and if they are does that mean the cap on the well will remain in place.
Or will the valves on the -- be opened allowing oil to flow back into the Gulf of Mexico.
Because they're not going to be able to monitor the cap.
If they evacuate the site because of those tropical storms which may be -- this -- all of this is according to a beekeepers and fluid.
And they have made a decision yet Thad Allen.
Ultimately we'll tell BP what it's going to do what it's going to be allowed to do.
So we hope to learn that at 250 also have a speech from the vice president they say guys it's going to be 45 minutes long I -- it.
A hundred degrees here already in the sun tickets out of ray's going to be speaking frankly -- -- -- -- You see that podium direct sunlight I don't know very many politicians who like being in the.
And thanks man -- take days -- done and they need.
They say you've got a -- that is that's -- -- the one time you can say be safe and I am right there with -- because of the heat you know we want Adam Davidson you know.
Well -- let's talk yeah yes I'm with -- and Allenby said that night with a break we'll be right back.
-- transform myself before we come back.
-- the -- isn't dot com live trees America's got to Chris is gonna change in the -- -- the can you -- and have a question please telling what the hell might do what I've been complaining about how hot it is and I have carte Blanche.
To Wear this T shirt right now here if I want to and I still -- my time.
-- and a -- didn't.
No I don't think it's just naturally hot in here sound Pattinson is here founder of it's coming down in studios that Tom thank you -- -- us.
Now you're -- -- men's underwear is that what we're doing.
That's what we know you're out to compete with the count -- -- name Tommie Hill figures of the world and just dive right in.
We're the underdog but can't take on the big dogs -- do it.
We are you know there's there's never really been any innovation in men's underwear for the last season for your fifty years until a couple years years ago.
And I had identified an unmet need -- with men and the fact that they had problems with an undershirt -- -- -- Boxee.
They always come and talk to -- so guys -- talk -- into their underwear yep so we.
Created a unique man's undershirt that as a patent pending design and what makes pressure different is what you put it on.
It never rides up and never bunches up and and never comes on -- While eliminating all the excess fabric that traditional lenders -- south.
Now as a fashion.
Design as somebody's in the fashion.
Wouldn't you think island -- get into the continue to -- -- -- design suits -- at the very -- shoes or something that.
Seems like it might be little more exciting -- underwear why did you choose underwear.
A personal frustration that I had I Wear a suit and tie for ten years I have this problem myself of my undershirt and I did some research and talk to sales people in the stores that I wanted to be in and they said we don't have this year.
There's nothing like always open and open market -- essentially -- -- we really tried to create in that should be something that no one else is doing.
I had some samples made -- an amount to some friends that said -- these are great.
-- buy five or six of them so that's -- we really went into mass production.
And started filling that void in the men's underwear market.
See you are now and Nordstrom Neiman Marcus you basically high end is inexpensive share.
I would say it's it's higher than most but it's it's a unique it's equality garment -- -- feels great.
The -- the last two to three times longer than traditional undershirt on the market and the fact is they never lose their shape.
They eliminate -- they give guys a more tailored streamlined appearance and it's important to have that put together look no nothing designers how to.
Now you can't have that -- double that the cost is something that the country had to overcome and America's.
We -- here in the U I can get Haynes.
T shirts like you know.
Ten for a dollar at extremely angry young sand so that's the most guys to have just done their whole life and I've done in my whole life so now you've got to make a quantum shift to paying.
A lot more for one -- we're -- body -- Says -- retail from 31 to 36 dollars a share -- Traditionally guys are trying to Wear T shirt as an undershirt yeah not long enough there to beg you to stay tucked and you need so we -- all those problems are doesn't shrink it doesn't turn yellow as quickly as half of the way it.
And it gives you have a unique fit we're not just a brand we're providing a functionality.
And a true function that's never been done before and once guys put these on they really realize it's you know that the proof is in the pudding.
Well if I may.
-- got away with not spending a lot of money all these years you wind seems to fourteen times.
A woman -- -- ground virologist roughly 3136 dollars so yeah even things out so that's -- you should be -- in this and I usually for a 500 dollar shoes you Wear the same parent every day.
But a lot of the very expensive to see it's a very special and 300 dollars still allow me to remind you that would mean she's can get right up there which I'm not -- -- the site.
I'll have do you know the real Tommy John in baseball player Tommy John I do and you -- you ask you about that all they do they do my middle name is John and I haven't had elbow surgery hours during the mid -- high school.
-- -- -- At a -- Sean -- -- coming up -- -- that's that's why are you building the zip.
No no it's my first thing my middle name and it's really we thought it was a catchy name that would stick and usually -- people remember it.
What are you when you've got into this evening were you when you are a fashion person were you more of a business person.
You know I'm really 5050 blend almost in I've always appreciated fashion but I've always had trouble finding clothes that fit me off the -- And the -- it looked at this a spend a hundred dollars and try to make something that works for me.
And it works and that's really what created the opportunity for us to going to the business side and from a business perspective in -- men's underwear is very competitive.
You're battling extent with friends and department store buyers they have twenty to fifty brands calling them -- -- imagine trying to get their product plays so.
You know we feel very blessed to be in a position -- And then I didn't mean to construct a and that it because I'm thinking you know for the balloon -- Poll and then you don't have polo Calvin Klein I think that I mean isn't that we're living designer -- there -- wherever you know and saying is that if there's a lot.
-- my question is we had and -- and not get this woman's company not a black socks and went from black socks on I don't go ahead in most.
Most men Wear blue socks but most of their suits and navy -- around issues besides all she saw a black Sox commodity -- make that they would is that what you would.
-- leads his -- T shirts and underwear right now we really want to focus on men's underwear that's what we do best we've identified a couple segments.
In men's underwear and other.
Future -- that we think we can really develop a market out -- but.
We want to remain your core and do we do best there's a lot of unmet needs and problems that still haven't been solved in men's undergarments team which we are working on -- which week you will see in the market within the next year Dennis -- -- if you -- them back on.
-- he did Tommy John where dot com.
What I love to say self funded used with credit cards and little chance you -- -- -- often love lemon and I love it.
-- Patterson founder Tommy John thanks for being with us good luck if I mean it feels great does it would put on right now it's been modeling -- -- you do.
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