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Foxnews.com I -- today it's Thursday right yeah I -- This Tuesdays are not a good day for me I thought it was Tuesday today's there's act of good -- in my world the -- well.
To update -- it it it's Donald yet you're right it is something it was -- this morning at since pulled back it was higher this morning.
Biggest retail sales offset some of the jobs that -- mean then I don't know you.
It amazes me jumping point out this morning that the ADP report is worlds away from the government's report so the market was brushing it off yet but let me ADP report is good.
The market rallies on -- and I don't know what that.
-- -- all -- -- the the weekly report is is -- that the government weekly initial jobless claims report is miles away from what we are hearing the government monthly.
On nonfarm payroll report is going to be tomorrow -- -- and -- -- joins us right now from Raleigh.
Certified financial planner partner Gordon asset management hey Todd how are you.
Pay go well thanks for having me what do you make of this do you do you -- a disconnect here -- some of the smaller jobs reports we get basically this weekly report.
And the 630000.
Or however many jobs I'm hearing we're gonna see tomorrow morning at 830.
Yeah I think there is a disconnect I think there's a bigger disconnect in general.
With unemployment you know we lost eight and a half million jobs in the recession and now we're I think we're gaining on average maybe -- 150000.
-- -- still got a long ways to -- But yeah -- there is definitely a disconnect.
So hot how do you see in this market these days you know we got so much going on no one knows what to blame anymore.
Do we blame the BP disaster do we blame Europe do we just blame.
You know lack of fundamentals and where do you see it.
We remain cautious for our clients there's no surprise we've seen a rally over the past.
Months because we have -- zero interest rate policy.
In the Fed up to trillion dollars into the market but now the -- taken that away.
And and you know we're cautious debts at all time highest percentage of GT GDP.
And consumer household that's pretty high as well so I don't know there's one keys to blame but its influence of things.
Todd all right I hear it seems every other day did it differently I -- stocks -- cheek and then the next day your stocks are expensive relative historical values.
How do you see it and how do you come up with -- it with your thought process.
There's two things one is the long term.
Dividend yield on the S&P 500 to around four and a half.
Today it's -- two which means doctor expense of another thing the price to earnings ratio of long term average over a hundred years.
Is about sixteen today that -- on the S&P five -- 21 to 24 which means stock for expensive from a valuation basis.
So -- in the camp the stocks have for the room to fall and geopolitical.
And economic -- don't help that.
So what are we seeing long term then -- camera you inequities are you on the sidelines and basically what we do between now -- the -- the year.
Yeah long term selectively we like company -- and as as a percentage of current assets S&P 500 companies have all time record cash levels but I think you have to be selective I don't think you want to buy an index.
We have for our class for parking money in two to 3% municipal bonds tax -- not a bad place to be.
I you can get some of those that are pre refunded by the US treasury so -- -- very little credit risks.
But then high quality bonds where we're kind of plan on the sidelines here we don't think it's time to be a hero right now.
You know a couple things I notice that we're making you cautious Todd -- your notes.
The US debt as a percentage of GDP and European -- neither of those are going away -- it is not going to change we're gonna be in debt for a long time.
And the European issues that has had taken me.
Years decades to change their way of of living -- had you deal with those issues when you know they're here to stay.
Absolutely we agree it's gonna take a long time -- You know we had the biggest credit binge.
-- that we've ever seen and so is gonna take a while the deal the hangover.
So the way you play it as -- you beat your safe we actually like US treasure treasuries we like gold.
Like high quality fixed income and then selective.
Stocks companies that are paying the dividend that have a global brand.
And and and -- and a healthy financial position.
How do you play then the tax credit could increase is into the game there.
Had a week planned for that we don't know if there's an estate tax we know taxes are going up.
To begin -- not to -- -- before the end of the year what are you telling your clients.
-- on our client suite run a lot of 401K money is to double down in your 401K take advantage of the Max.
Deferral -- you're not already because taxes are going up.
And you you want -- fund that in a pretax basis if you can but also as I said.
Municipal bonds that have to be high credit quality you're avoiding federal income taxes and if you bomb in your own state state income taxes as well.
So I think that's a good play there also some closed end municipal bond funds that -- make sense have a higher distribution right.
Todd thank you sort of -- any taxes are going up -- it says -- -- -- right.
-- -- where in the camp that we think taxes have to go up entitlements are probably going to be means tested.
So we -- prepare for it and there are vehicles that you can use to prepare for a reason for our clients.
We'll check -- Gordon asset management for those holes on -- thanks dot.
Thank did I time -- -- certified financial planner of course is part of got a -- Asset managers well -- beautiful Raleigh, North Carolina you know what -- that experience once in Raleigh, North Carolina.
In my lifetime I actually road trip to football games following hurricanes and I mean.
Following a hurricane -- a couple of hours behind a hurricane to -- Actually relative to an NC state football in -- once about two or three hours behind Hurricane Fran why came on board because we're going anyways was also let you know -- You purposely other arcane don't you said you worked on Friday night hurricanes you know that -- -- -- -- -- -- plan to leave on Friday night but in the right.
It's some time on Wednesday it's like taking his hurricane that might strike and -- it strikes and it goes up the coast and you this year we're -- on Friday night anyways.
See you follow it up there.
You have been it into town after hurricane know these.
He eats and he does not gonna eat as the water the electricity does not and eat.
Yes that's what I said for like 48 hours but we did when the -- settlements.
I'm just hit an -- question why go it's college football what kind of question is that it's -- question that well I've got we have.
Rest of my life I don't get it coming out at.
We have a huge showed today bigger than the normal -- usually Thursdays are monstrous.
This show is huge.
We're gonna talk to -- a call.
Well we're gonna talk about what's going -- cars that all the card details yesterday's sales last month -- outstanding that's a little beasts -- that -- time.
Gary Blair and -- Gary Player.
-- legendary play is going to be and that -- -- -- -- like happily married my dad.
We made for fifty years six kids went on mentioned -- last -- to take a break we'll be right.
I welcome back foxbusiness.com.
Live Cotter and burns -- in the -- slipping a little bit here now about 27 points he started the day just about flat and as you can see from the graph.
We've been in green on most of the day and now what taking a little bit of of a mid day smooth here you know we've got a lot of dates July jobs and -- Sammy -- to right.
Yeah and actually you can see the market be disappointed in these numbers because we've seen these numbers up.
For awhile now and then we get you know stores like Costco Wholesale saying that seems -- sales fell one point 9%.
And they missed.
No I'm sorry I felt this stock fell one point 9% because they missed estimates BJ's wholesale.
Lost two point 8% and he starts again heard today.
And basically what they're saying it -- reflecting what you're gonna see going forward that people are still sit back we talked about this earlier consumers not -- Now famous say they want to pass the baton to the consumer the consumer -- ticket.
Are you getting a mixed bag though Kazaa what do I thought I saw good things from -- scenes earlier today -- sometimes some retailers are actually giving us and.
Not disappointing and you think maybe come.
You -- having some missed mixed expectations because I think that's part of the problem -- -- -- -- that we've seen that over the last few months where they come out with numbers.
And some meet expectations some miss expectations and we're having a hard time setting expectations.
Are coming out of this session.
What they aren't -- -- -- but you don't know what has set the bar.
But you're right I think the retail numbers in particular all things have been the most confusing because -- -- good summer back.
We -- Tiffany great numbers Burberry Greek -- -- locks are doing great somebody's got their buying and beyoncé -- That they're shopping but yet Costco BJ's yup this is really smells like -- -- okay so it's jobs.
-- a little -- we had eighty.
OK nothing great that we had weekly initial claims and nothing great either still pretty long that number tomorrow the big number.
Retails -- nothing really mixed about the autos and build this that joins us right now on the phony senior editor at Edmunds.
-- observer dot com bill would you agree with me in that regard it looks like the autos are full steam ahead.
That says he does well let's -- was they've all been that bad but that given everything that went on in the on any -- the other global turmoil.
I think what sport ought to be the auto -- that -- but right now everyone -- take it and run.
He's I think expectations are so high we decided that I had -- we don't not a set expectations to meet their set so high.
I mean really for cars I guess right now -- we're out what lake let -- point six mil for many years they go out at the notion again their knees -- -- You know everybody all over the -- one what -- -- -- to be right.
-- -- right around eleven billion a little bit over 111000008.
And I think everybody so that has been.
-- -- -- -- -- You know without the -- weapons you know I think there's -- -- water to go under the bridge.
So right now it everything the little one settled in a little bit but if it affected most of the major our company.
Double digit gain -- month compared to last year.
It's bad FaceBook -- that.
Bill -- still the Big Three by Big Three units I was floored.
Are getting rid America -- Arab member high school and -- -- -- a Mercury monarch was on the horrible piece of machinery.
Why is Floyd and getting rid of it done at this point times in the same reason while the other is on changes interview that was.
Yes -- -- and very three moderate things have changed since 1980.
-- -- I think -- I think most of you know everybody you know politically yeah yeah.
When you insight bowl.
And and I think what what it is is that that sort of redundant but.
According -- -- -- stopping.
Is the most.
Widely thought stopped vehicle is the most city in other words this is is the vehicle -- -- you aren't satisfied ever.
You get to that point where you know your own your own customer and nobody else then and I think that's where it is right now Mercury.
I think I think -- been split right now but Mercury was born -- that make it this visit whether they were -- -- in.
New product the Mercury but it is something with that.
War because there it is operated now were a lot of support what -- Blowing it was either investing make that commitment was do it and given the -- been given what everybody's looking at the Mercury.
-- -- -- I think they don't like boy was it the.
Okay it's it's been one all year since the government to go over GM how do you think they're faring.
Oh yeah I think it is if they anything but good thing right now about -- -- foot -- for yesterday -- -- barely a year ago -- little more than a year ago of these.
-- -- -- the Rick Wagoner says that -- the opening -- the bank of the it was so.
They've been you know -- would effectively dead nobody would fight art of bankrupt -- And does it out of the -- the statement being that every month now that did you know that reasonably well thought out they.
-- the company -- they've really downsized the company.
Wind it down maybe it is something that -- -- indeed what the board now and you know but on the it was it was on.
You know Sergio Marchionne was very bullish letting nobody.
And really believed him a couple of months ago and prices actually had a couple pretty good months so -- climbing -- a huge hole.
But a 100000 vehicles is step number one you like the direction that they're heading in.
Our guys think -- be you know he's the best we'll get all the direct and specific blood problem right -- and the other.
-- -- -- -- -- -- -- -- -- And I -- that there's bail out -- this -- of the year has been rather heavily reliant on we -- yet though.
We've got to watch those numbers is here is on because if it was thirty -- per cent range that is a little failed.
Part of me that's really not where you want to -- he would be down somewhere a lot of birdies certainly in the other -- right you know about 45.
Well everybody worked in the fight but right now are all well running well in the -- Which we built it and I think that -- -- -- lot.
Billy -- about Toyota Toyota went to a PR disaster with all the recalls.
Started giving out all these incentives basically no inches and practically given the cars away.
To -- their status can they keep that up.
I don't think but if it.
There's there's really ought Peru of things sort of coming together with four right and I think.
That'll be the company that in the next month -- really be.
You know -- -- a Bellwether for the entire in this city.
Because there is that it felt not you know really -- India now.
They backed off a little bit it -- but the fact is that they had the month for the that we're really.
Outside for the -- and almost unprecedented.
It hasn't really stepped down at -- with it being the every but he also.
-- -- But now it -- -- -- but wondering what really is going on in the -- of up.
And what is going on in the market right now that this sort of like every rival mark.
Yeah and and it's -- if I may -- you know for -- -- it was I I don't feel comfortable on the skyline drive one that was the sentiment.
Now I have all these other dealers get practically again given the cars away for free -- -- even Acura is doing these -- lease deals and they never do.
So it almost begs -- question well why should I go to Toyota.
Exactly it I think it -- the nail right on its basic public suggested yesterday.
That that lot of what.
What they went on who or at least bump -- in any -- that -- -- if -- -- Did you know after they're really -- state of being part of that the opposite.
Number one up but what of this quality and find it at -- -- value of all the things that they've you know it does a lot of other often.
Out there it's beat -- many many helpful but at -- three or what is that number and that it that they that -- speak with the branch.
Thanks bill good stuff as always thank you build -- -- who is the senior editor Edmonds.
Dot com I'd like to point out that -- is doing these -- Actor got.
It -- -- -- and we've got LA and -- when I get a cell -- you know of course Verizon is gonna get the iPhone any day now probably tomorrow.
Every night -- -- here with -- CEOs Sonic Solutions I was gonna talk about how a lot of these CEOs -- getting hammered.
You know -- -- is on the hot seat that you care about PP but.
Well Dave is that nothing wrong to get up put on the hot -- block of the show -- -- -- think -- see if we talk about it but the environment here the economic environment is -- conducive.
To making deals because Sonic Solutions you guys just bought Divx.
How long of a process was that and how how much to look at the market and say we need to hold off for now as the.
Right time to do it.
But I think we usually look at what's in the best interest the customers so we intend look at a transaction around market events or anything else in this particular case it's -- really fantastic team of people at that -- a critical moment where.
Con -- delivery is is moving quickly to electronic streaming downloading.
-- is by far one of the leaders in that space as are we so that the to make sense all right I think we will.
Normally look at a transaction like that and the terms of our customers and timing -- this was this -- a good time it's the right time for us.
I live -- the need to clarify that sonic.
-- -- Then -- digital media that you but I think it's necessary don't yeah I do you Bernard joins us now by the suffer company but actually -- we -- you would never have any synergies there doubted that a lot advisable so what's the goal onion is it just to continue to create -- Easy immediate delivery and get it out there for people and pretty -- I think you that continue on that case it.
Yes we we we have we really our company's always service seven studio so we focus on the Hollywood studios.
Helping them deliver formats whether it's a dvd or CD or Blu-ray.
There is a massive shift taking place to electronic delivery.
And you know the end result is how to give you know high -- the movie quickly efficiently.
At a at a reasonable cost of consumer and so the technologies in place now.
Studios are certainly willing to do you know interesting things as far as business models.
And more important I think to consumers understand -- now this is a complicated story for five years ago but trying to explain to.
My parents or if someone who doesn't use a lot of technology that that you could stream a movie.
You can make that statement and actually understand -- now -- in this so it's an important time in and in this space and it.
But every decade or so you see these kind of windows where.
The fundamental shifts are taking place and we're and we're right in the -- right now.
It seems very confusing because of -- a lot of devices are coming out left and right.
And there's also there isn't a what's the word I'm looking for.
-- the platform is not consistent in other words to different kinds of cellphones.
That you've got dvd or Blu-ray which one is gonna win out.
You know the iPad vs you know maybe -- HP is putting out this what seems like what we're we're not where we were DVR in beta Max just yet.
But we're sort of in that position where you've got to be nibbled apple and Adobe for example we don't want to use flash well now you've got two different platforms you -- is very got to be on top yeah.
We're well -- we actually are unique position -- -- our job is to solve that problem so we sit above the storefronts and the hardware providers and basically.
And you think that -- a cloud where you've got multiple different files that.
That an end user can stream or download any device so.
TV Blu-ray player across retailers so people like blockbuster or you're doing great numbers with their with -- digital.
Format to best buy.
And that contents is is essentially Gmail for video we have what we're doing is making it simple so you don't have to know the -- is he -- know which -- he goes on and in essence the studios are providing rights to allow that mean that's.
If you didn't have that yet a year or two ago -- got movies coming -- electronically.
The data come out on dvd the studios are allowing you to move that content between devices to make it easy compelling.
So that the you're actually in a moment in time where everything's in place to pretty much say.
You don't have to worry about you know with software service which device.
You know we we're striving for the ubiquity incompatibility of a disk and the next year I think you're gonna see just a fundamental shift in the way that that works at our jobs listed new bill that -- -- price offered -- to deliver.
But to what -- I mean what -- science there for twenty years you doing something right so what do you see that in the next year what's going to be different for me.
Next year this time -- right now when I try to get something on my -- You will you what what you actually have right now is delivering product in storage and go to best buy actually today.
By product that will allow -- it is to put your name and password into your account.
Stream -- movie posited go to your another TV -- different brand Blu-ray or manufacture blog and bigger name and password on -- it.
I'm actually we're delivering two different streams QB you know that.
And you're gonna you can do that with yourself -- so big blockbuster -- -- great application software app that we work -- them on that.
You know delivers -- blockbuster experience on a on a mobile.
Mobile Google phone with from HTC.
-- differences and it in a year from now you actually know that so this is these products have literally to start hitting you don't see a lot of marketing you'll see a fair amount from best buy in the coming months.
And as they start to launch and trying to educate you I think the fundamental differences -- actually understand and realize that it probably isn't as complicated as you may have thought.
We have the CEO -- and AMC theaters coming on soon is this the demise of the theater.
No not at all that any day an -- I just said I don't know it is I mean I have -- I'm not -- You know waiting in the wings.
We have some software that he needs so good but I've got to get this sales had on -- -- meeting read this interview but.
No I -- looked at the theaters benefit I think the most from this you've gotten you've got windows electronic contents our job is to help power.
That at at theatrical level someone who is wants to see a movie after the fact that the Peterson just another retailer I think you're gonna find theater chains.
Entering into electronic sell through -- streaming the same way you think.
Of any other retailer and and we've we power -- relationship with Cineplex which is the largest -- Peter -- and Canada.
And they are.
You know they've announced -- partnership and obviously they're planning on.
Doing something around -- the notion of delivery of some of of contents so I think you'll find that.
You'll see more and more theater theatrical.
Chains and others participating in the states and -- lead up to them decide and explain how.
It just quickly is a great deal as a cash stock deal -- thousands -- 85 cents in cash and about a half -- shares sonic so that you had.
DVX people came out OK guys that are they did -- people -- getting the name right first the -- people.
Critics anymore either got another issue -- other there we've we've worked with a -- time -- still there that I mean that name the name.
In the -- themselves are I was I was excited about Iraq I trust me they were alive I'm still trying to get the caffeine in my system I.
Hey there -- there.
This is is in San Diego still there are doing well that brand will exist -- get -- and and let the net result -- is a good deal we have a we have a combined company that has zero debt.
You know cash flow positive profitable company we're we both have the number one position and and a and a space that -- we're uniquely positioned and on it and I think that that seems excited.
We're excited and -- -- a year from now when we're here and I'll hopefully see you with your cell -- pausing your movie and having it and managed easily -- And -- well then -- a lot of -- -- CES on solutions.
Good deal tax review thank you in Atlanta with.
I've sat with a smile on -- huge -- that's an accountant and sorry sorry.
That's good stuff I I hope that we get to a point where I can actually figure out what to do with my phone.
I hope so too -- -- and wouldn't work -- -- in the break.
-- -- -- All right here we go we are down seventy points -- -- On the Dow Jones Industrial Average that Kama is work is miserable today as happy as Tracy and I -- the content is -- exactly -- in the opposite direction.
The market moves for the wrong reasons sometimes than it comes to his senses around to -- this is the sensible hour of the day now colleges -- -- on it and it doesn't that cause it's actually not it's not as possible tie anyway I'm gonna tell you what's.
Thanks it's not -- Global.
Up 6% actually a lot is that is up today believe enough fiscal second quarter earnings were flat.
Revenue fell -- revenue was much of -- much less than expected I have to say but they were able to raise their forecasts.
Demand for orders hire good news guns or stock up pier I imports the stem -- may well every so it's a -- Still around -- RadioShack today against -- Denton.
At that and all -- you want pioneer closed radiate in the near dark liquor stuff that's and I where am -- gonna get my wicker furniture millennium -- -- -- Since -- sales surged legacy -- one -- order the new of these surge I don't know.
Consumers and -- stores shares went up about 15%.
Fuel cell energy they may well fuel cells.
They just signed his big contract with California utility for use of the product at PG needs big too big public universities then.
The -- -- twelve point six million that was really good news for the stock.
Excited I love this is also -- battery maker believe they're not posted better than expected sales growth mostly believe it or not.
Do you strength in the transportation segment on both think -- vision of ours we talk about cars.
Lot of car -- yep yep yep.
Separately though the president and chief.
Operating officers going to resign not sure what that's been stuck if anything and finally sonic wall sonic seems to be very popular company -- these days this is sonic wall one word.
Network security provider.
It's going to be acquired.
Deals worth about 717.
Million dollars to suck up about 26% on the news that's good staff need.
Day but a big movers and -- Britain desperate -- -- we had some big -- you know -- -- -- gains on David this because it's kind of funky.
Yeah I don't see yes John Forbes CEO -- health miles is here where this could -- -- could see you okay they'll do first of all that.
We are focused.
In this country now on health care and on.
Preventative health care although probably still.
Not enough even though it's been -- discussion here over the last year are we focus -- enough and that's part of what your company does yeah.
We were creating the good driver discount for health insurance and health insurance is the only insurance -- -- -- that doesn't have.
Pricing links between our personal choices.
And our our prices for the coverage so we're fixing it what we do is very simple we pay people to do healthy things.
From an employer's point of view it's three things it's a software system that tells them which employees are doing the right kinds of healthy activities how much to pay him.
And it does the transactions form and it gives them a quarterly report of what their company biometrics are doing compared to industry averages.
That helps them do the actual management of the the preventative wellness it hasn't been done today from an employee's point of view.
It's it's a set of upload mobile activity measurement devices up odometer as -- -- -- heart rate monitors.
It's a personalized web site for them where they can see exactly how much activity they've done and how much cash.
That they get for doing that activity it's up to Tony 500 dollars a year in cash for doing the right thing and the third thing is -- social network.
At -- one point we've got -- -- or 600000 members in the US.
Up to 3000 challenges going on people competing against one another on activity.
Governor Perry from from the great state of Texas challenged all -- other governors to beat he and his staff on this platform you Governor Schwarzenegger was on it.
Governor Palin at the time.
And Butch -- from a from -- one.
-- -- Let's talk about how though there's been content to trust factor I think your first well virgin help miles as part of Richard Branson's virgin empire so you're yeah if you will of the largest tech company correct tech health -- compared -- -- under his umbrella -- He is he's very into this -- -- so it makes perfect sense that he's part of the CU coming -- -- late the consultants are speaking bring your.
A program in him.
Institute it and it's not like it's happening and part of it was -- from playing soccer with my kid while hiding now fight play ten minister for two hours what.
The beauty of it is that you know activities ubiquitous.
So what it does is gives you the choice to get your activity by playing soccer by going ballroom dancing you don't have to go to would -- -- log in -- -- professional to get credit.
All you have to do is move it's it's probably the single most important.
Factor for preventing -- -- wearing something you argue where either up odometer or you'll carry I think Celeron or in your purse in your pocket.
Or if your swimmer tri athlete you can Wear hurry monitor all -- -- global.
They're all encrypted so that the upload can't -- -- with and they all on the other side deliver real -- the people are using.
-- -- you know.
Paying adults to quit smoking or lose weight is like paying students for -- forgetting aids you know we've heard about that we've been talking about that this behavior you should.
Be involved in any way -- it's almost like.
You know the goods the driver displays on it's like looking at a demolition driver and saying if you go to defensive driving school you change your ways of paying money.
For those of us were not overweight.
Who've never smoke before.
What's in it for us.
Us lawyers -- it for you today you're paying for everybody else your -- on the road.
No question there's effectively.
The same -- -- entire organization now I know it yet this sets up perverse incentives you know if if you're trying to it.
On a day by day basis decide whether you're gonna eat that 48 now through buying washing -- two bottles of -- if I know that.
You -- Jessica the tri athlete in the cube next door is going to be helping me pay for my bad decision it's easier to make the other thing that's happening now.
Is that what you say makes perfect sense but the result that you're looking at a long way away.
I mean that that did that outbreak of type two diabetes.
There might be twenty years away for you.
And that's that's a difficult thing to bridge the day to -- decisions with right so what we do -- we help people be able to have a device that they can look down -- -- I do my daily part because in the aggregate across years of not doing the daily partly it's that the super expensive catastrophic medical claims fall out.
Right so we help with the daily part we'll pay you daily to do the right thing.
Seattle about perverse incentives I am a mother of pastries and for some -- people like Chris and I will work out 56 days week we have between 500.
You -- so it.
I could see how it could benefit both sides I also like the notion of the social aspect of it he -- -- like in house Biggest -- campaign.
That's exactly almost peer pressure to.
Extent that it fit and and that's what keeps the system honest as well yeah -- a lot of -- the world -- -- I know that might to huddle I know that my coworker is isn't cheating the system.
There's a self reinforcing honesty dynamic companies that -- without a 125 different companies.
That use it and what we see time and time again are people that are watching each other.
And helping each other that's the that's the beautiful thing they think they help each other a long.
Today in most to me in most employers that that's -- and it doesn't take place because there's no real way to know what you're doing what you're not doing.
Okay you the government can print money but studies 125 companies can't what does that 2500 dollars come from the bulk of it but it is funded through premium shift so this is -- suspected.
Making a market for fair pricing in your coverage so fuel.
Do you -- 56 -- We workouts and at the end of the year you'll accumulated all the credit you need for your next year's -- 500 dollar discount against her premiums.
Somebody a sister company may decide I don't -- him to do with this select my lifestyle the way it is what your employer can do is say great I'm just an offset one against the other and make it cost -- for me.
From -- -- perspective it's still cash do you.
-- you're paying a premium today your -- contribution towards your health care here.
You pay a co pays well probably.
And so you know what we do is we offset one against the other and for the CFO that's a beautiful thing because of that that makes it a net neutral spend for the and they don't have to spend for the rewards and it's by far.
If you're gonna pay cash for all of the rewards the most expensive part.
I like it Steve I had -- -- had -- companies can't touch and find out whether or not they can be part of it.
It -- vice Versa do you go out they selves you know we reach out to them and vice Versa I think most of our customers these days are just.
Folks have worked in other virgin health miles customers and they'll come in and say this is -- gotta have that I was earning my -- wanted to hear but reach out to virginal miles dot com.
The other thing you know we we think that employers since most of our working hours are waking hours are spent at -- sadly.
Employers have an import responsibility to help.
Help their employees and help themselves to get ahead of this 10% per year increasing cost line.
So that national employee wellness month is this month it's just kicked off by virgin.
I'd encourage employers to go out and look up national -- wellness -- dot com.
And it'll give me some tips on on what you can do to help your employees to help you get ahead of that causal linkage chain.
It's you know.
It's good stuff Steve I'm -- for Steve Forbes CEO of urgent -- miles to now thanks very much to to get to people move it.
Then -- -- my.
Innocent people around here that that could -- our -- to face -- sky we got it.
Rick Jackson and he's got -- by yeah it's gonna tell us if we're broke and we -- I know I brokerage and about the rest of the world.
States are about a 130 billion dollars broke in the next two years that's the budget deficit they have to come up with -- say they have.
Raises many taxes as they pretty much can raise and they have cut as much spending as they can possibly cut what you're looking at now though they're going to have to -- -- more -- have to make up.
These budget deficits that are constitutionally obligated to make of these budget deficit so.
What you're going to see is probably more layoffs probably more cuts if they tend to some of the benefit plans that they -- their state employees.
And that's something they're going to have to do the next couple of years and -- 130 billion dollar estimate that's only if we don't see it double dip recession so it could possibly get worse.
That's great news rich Edson.
Is embarrassment time as good stuff.
I mean you know what it.
No I want to make changes -- so there's no way we're gonna see any changes -- it where -- -- get better anytime soon because.
As much as ever want to -- up -- luck -- -- at the end of that.
Right and if you look at some of the short term problems that you see here -- -- state budget spending.
Grew in 2007 over 2006.
By about nine and a half percent and it's now you're seeing cuts for the first time in thirty years -- overall state spending.
I -- now it's anywhere from you know four 678%.
And that's something.
That's -- it's fairly rare but when the times are good states are spending a lot more money year -- year when times are bad they're forced to cut back drastically so there's really no.
Steady growth in state budget deficits in state budget spending and that's something that they're probably going to have to tackle a lot of these problems.
Were brought to the forefront because of the recession they -- earlier but these issues of state pensions and state workers and benefits.
All of that needed to be addressed for for some time and they knew they had to address -- just have to address it earlier because of the recession.
Yeah they're going to be asking for bailout money to exceptionally -- for taking care of all the -- Thanks guys thank you rich ever break with a lot movies.
We love -- and of that and like very good.
-- and -- the moment.
Are down 47 points made a little bit of a comeback here middle of the show -- Matt -- is -- this.
And there there are no G easier GMs on your -- the Sox Lexus and you're digging deeper aren't just.
Come on it and run out of names at this point but that's all good.
They're actually three names I don't want Obama give it to match looking to buy it and they're the -- that they they are out there and the first encore capital group I just bought last week.
Debt collection company.
And the reason I bought into this that you got a great charge had great earnings -- release a business might think about it.
When times are bad this can be little bit better because obviously you know there's a lot of people default so -- -- business generates the -- or visit the problem as an eclectic as much default.
Now when it's picking up.
We -- numbers come out that auto loans to -- -- the best level and you know an eighteen months he has seen so that it actually collecting more earnings were fantastic so.
If the economy improves this -- -- actually do well because in -- bad times they've built their business now they're gonna grow internally after all the business they bill people start paying back their debt I'd say you're reaching for names them.
Well because the big names really you're not finding value there -- -- not you know and there's a lot of value in this market because this market's down 12% from the heights but a lot of strong Sox are down 20/20 5%.
Just because they -- 200% off the well and the people are taking profits are yet to try to find he's Smart cat names that are actually value right now in my mind DST -- DuPont Fabros Technology it's a little about that come detection technology -- -- are not the only data centers where a lot of tech firms rackspace for example the big cloud computing firm they just read a lot of space from them in Colorado outstanding in Denver.
And they use their special data centers.
To how -- cloud computing and if it's a player technology to -- time to play on real estate as well so.
It's a really nice mixed again stocks held up much better than the market.
Over the last couple weeks as well.
And I love this MW -- visionary and supply feel like we been talking on by the animal health on -- -- This never clay it's -- crazy because I think.
When times are bad -- back -- your kids -- educators and comfort Suzanne by the what they need and your pets.
But don't give up stuff for yourself when you're darn -- I don't have any pets and never will.
I don't understand a person but I know America loves their little -- -- data should be -- products to all the vets throughout the US.
Revenues increasing -- -- by 25%.
PE died in nineteen.
I should looking at a firm that really has as great fundamentals -- another one of the great story to it as well.
You dig -- in right now 12% as you mentioned down or are you waiting a little bit as were all over the place up a lot of points -- down 200 you know it's crazy what put out a report yesterday said the -- the market most investors right now dilemmas we sell everything or hold -- -- my dilemma is.
Do I buy everything right now or just sit back away and I'm I'm I'm -- to start picking up some names.
Everybody sat here two months -- one at 1015% pullback now that it's here everybody doesn't want it so here's your pull back take advantage of it or -- -- the market my mind.
And the club and finance I do like that I have John Adams -- -- put -- on -- one virus are just seeing the flyers game last night and that's my voice and harassment yeah.
-- I was told -- senate where there Matt McCraw the but -- and that we're gonna have to go to movies I was there a couple of days ago that -- they would -- look at this guys can make funny Gerri -- CEO and president of ANC.
With this now from Kansas City did they -- and that's.
Did you perceive that for having me on the program I -- -- tell -- and mean.
Pretty much through this whole recession -- theater stocks theaters have held up people still looking for an -- Even -- the increasing ticket price.
Still come -- aren't that.
Yeah that's the that's a reality the the truth of the matter is that as you look at the many entertainment options for the family have to individual -- were -- have.
Theaters and going to the movies -- remain -- pretty reasonably -- particularly when compared to some of the live entertainment of some of the other sports venues.
Even have prices gone up and there's been a lot of publicity around some of the pricing on some of the premium formats like 3-D in the -- not.
The fact of the matter is that come to the movies is still pretty reasonable price four.
How much are you relying on blockbusters because that he lets face it -- whether it's Iron Man stool -- whether it's you know avatar before hand and it just seems like.
These up production in -- houses are putting all their rigs in these baskets and you obviously have to be reliant on them coming up with good movies and providing you -- -- contact.
There is no doubt this is an industry where we rely on them to provide us a competent and the big movies are always the core of the business and what attracted big masses of people to -- with theaters.
Very -- dependent on us though you know we are the ones that are the forefront.
Of those investments with them movies get a lot of bus before they open and then what happens in the box office.
Has tremendous impact on day -- reputation of that movie.
The longevity of the movie whether or not it's gonna have -- into some of the secondary and tertiary markets like home -- your broadcast television.
A lot of those kind of opinions get formed not just from the movie itself but in the success that anyone will be named joy the box office.
It's meant processes -- Bob is right -- to its online now makes it a lot easier.
He's the 25 new IMAX theaters is that the next logical step for you.
Absolutely we've had a -- long term relationship would -- will be an opening up.
Other theaters are inside of our weather -- -- us out of -- theaters for the last couple years.
We were -- committed to -- building -- -- 10004.
IMAX auditoriums inside of our circuit.
Well we're now saying is after having had the experience over the last three years.
Frankly after watching our guests enjoy the IMAX experience as much as they have.
Without that it would make sense to -- a couple of things on number one.
Is increase of footprints from the 100 or so that we had already committed two and number that is gonna come close at 215120.
-- just in the US but we also announced it would have been looking at some opportunities in Canada.
And frankly it's all predicated on the kind of acceptance.
That are guess have shown in the -- election.
That they've shown for the IMAX movies.
-- look at this -- -- move that is coming.
Down the -- -- just the sheer body to next year it is very clear to us that the big blockbuster movies are going to be in the IMAX format and the ability to provide that kind of experience to our guest.
It is what sets us apart.
-- the end of the day we need to provide people a reason to to leave the house and com.
And enjoy the movie you know theaters and IMAX is probably the best manifestation of that that big screen that -- sound.
That kind of different geometry.
If you see a movie in IMAX IMAX 3-D four out of -- it was a different experience.
Then seeing that movie in any of the format.
3-D -- General focus on that for a second here is that a flash in the pan or is that something that you -- looking to invest in because you see you know long term possibilities there.
Now we we don't think it's a flash in the pan the behavior that we've seen now from our guest.
Would indicate that he's here to stay frankly that technology.
That is being deployed behind 3-D now it's far superior to any technology that was used ever in the past.
So what we see is people not only enjoying it through the experience more but also willing to pay for it more.
We've actually doubled down on 3-D we are today have almost 750 of our screens equipped for -- We anticipate that between now and a -- year from now.
Would get about 15116100.
Of our screens.
In 3-D social we're very much looking now for the 3-D format to remain and to be a big part of the industry in the years ahead.
Even though you still haven't people coming and they're still willing to pay there's a fair amount of people -- -- You know backing off saying hey I don't have to go to the theater I'll wait -- it comes on Netflix I'll download LD VR -- how that affected business.
There's no doubt that all of these forms of entertain -- to -- who won another.
The truth though when you step back and look at the facts is that some of the movies that are coming out into their home video market have had relatively little effect on that theatrical box office.
-- -- -- -- -- I enjoy the best year ever that we had in 2009.
I think that's indicative that people when given a good piece of content.
1% of dot com dent in a format that they can enjoy -- gone out.
It's all interactive are sure some people are gonna miss the movie and -- theaters and and go watch it and -- for it to come out at home.
You know we just did a little experiment about to -- through -- to go and our our first came out in dvd.
And we brought it back into some of our IMAX -- screens are frankly piggybacking on some of the publicity and some of the advertising that was going to be used.
To launch it into the dvd market.
And -- we saw was people coming back to the theater to enjoy the IMAX experience to enjoy avatar in the best format that you can watch it.
Which is in in a big screen in one of -- towards.
So yet people that like the movie that bought it for the home but that also wanted to come and see it and -- -- street again.
I think in the end so long as we can maintain that engagement with a customer we're all going to be better off.
Today Tracy's got a bunch ankle -- is running around it cost -- more to feed them at the theater that does for me to go out to stake it sparks.
You're not being fair and now I'm getting a rally at the all right but it happens and I told me hey it's expensive.
B I guess what really I really wanna get too was how important is that for you in terms of you know your bottom line it is that.
Does that go right to the bottom line and that's part of the ancillary you know thing of going to a movies it's really important to you when you're you're.
Dallas -- UP announcing already.
-- you got it exactly right we are really into businesses when you when you stop and not take a careful look at RP NL.
On our balance here for that matter ready -- sitters PNL or or or balance sheet.
Part of our business and about two starts haven't really had -- revenue line column from the movie exhibition business itself.
That's a money that we -- the box office that as I think most of you know.
Comes in a revenue share model between us and the studios.
The concession stand it's really the profit engine for for our company as well as the other exhibition -- -- out there.
Yes some of the price perhaps there are higher than you would anticipate but they're really no different.
That in any other entertainment any -- and that's because that that profit margin in the concession business.
Is really what's driving our ability to build for the future is really what's driving our ability to finance some of the conversions.
For the digital screens -- the -- -- This technology is wonderful.
And he's great and it's very engaging and fortunately none of its chief.
So it's really the combination of the theatrical part of the business on the concession.
That enable us to have put forth the money that it takes to keep some of these movie -- vibrant and places that are welcoming to the guest.
Real quick you get sponsorship money from a cold call for example -- Mars -- at -- candy companies to help you with that.
Now I'm not really not sponsorship money per say we do have given the size of our business.
Some very favorable deals off from -- from our major suppliers Coke and -- mention too that -- are among the top list.
-- in particular.
If I was to single someone -- will be -- they really do a fantastic job of supporting the exhibition business overall.
They are very active participants.
They advertise -- our screens that provide us all manner of expertise in terms of the beverages on the equipment to dispense those beverages in the war theaters.
They're really -- a a great job.
In terms of helping us figure out how to best service -- -- so it's not the sponsorship money Irsay is not it's.
Not in the traditional sense but when you look at their level of investment that a company like Coke.
Puts behind our business.
It is it is great to have a partner like them in the mix.
Flat -- there's something about movie popcorn you can't replicated.
You can charge fifty dollars are being.
That and I'm gonna dive in my kids and I had -- -- on it and it's -- Atlantic this -- Jerry thanks similar surveillance that's.
Thank you for having me on the program enjoyed it -- that CEO and president of AMC entertainment and has -- that I was there in the night -- Unnamed beaten we're gonna go to break now am I think about popcorn tonight.
Game of golf.
Yeah cold drink compress cold compress -- Gary Player is here with this of course golf legend let's not forget he's an -- -- -- -- don't -- -- is right now -- -- yeah.
Good to see him.
-- Tracy tell -- -- the book don't show who you you're you're taking your experience is not only golf.
But in life you've been married for fifty years very successful business.
And you're able to tell anybody else out there -- you're golfer -- and does anything you're doing life.
This is how.
You can avoid choking.
This related -- -- lasted seven interest together that she should you do a lot of speeches throughout the world.
And sometimes you -- 500 people how you do it aren't you just choking and -- assassin look.
You -- -- -- gonna bone and make it negative or positive I see what I do I've -- -- -- must say.
-- level these people and they liked me in the lens -- done like no way to make them like me.
And I -- I'm speaking to friends now you can get all nervous to start choking up but it all comes from a little seed yet.
When you playing in a big event like you had a chance to win them Austin's I was put.
My mother died and I was -- my father -- -- gold mine 121000 feet underground my brother went to war.
At seventeen to fight to the Americans and the British and the -- truly sickening and -- -- Exercise.
Eat properly and be positive don't be negative and set when you struggle in life and you have an opportunity now.
To win the -- -- I'm not gonna stand and say well can I get this ball in the hole I'm gonna say.
Look I -- look I struggled.
I'm not gonna lose Obama would -- and so you have the choice.
But isn't surprising was having a choice how many people -- negativity David lives happiness is contagious how many people do you see a continuously have beaten.
Not on this show -- never had a like -- -- one of the outside has about one as -- collected from whom we don't have our view is yes because relates to what you're saying it.
-- was there ever a player you play with.
A groundless -- that you often played.
That was -- that you enjoy playing with more than others because of maybe -- attitude because that they weren't always negative -- in the -- -- what had in debt -- that does that make a difference when I played I would.
Say Jack Nicklaus I mean he was seeing the greatest golfer that ever lived and I never -- through a -- on the sword -- -- sort of misbehave.
He was perfection and what an athlete and I really enjoy playing it and when you when you beat him I begin there will next play chairmanship in England twice entity seeks out.
He put his arm around me -- really.
He made you feel good.
Because he was so good that I mean -- though was a gracious loser and that to me is very important but I think what it goes back to and it comes to choking.
In sports and being a contribute -- to this great country the greatest country in the world.
Are not given discipline.
A lots of love.
-- to have respect and a good education they grow up they become a Knight made to their parents.
And they really with the obesity that's taking place probably the biggest -- in the United States today.
Obesity and childhood obesity not have -- -- at 1246%.
-- 55% of -- The it's it's how would you grow up under those conditions can -- eventually be in a position.
We really good at discipline you've got to have courage and you're gonna have been through -- the grinding mode.
To do this how can you do -- if you if you think that season.
How do you do -- how do you make that adjustment that's part of the book and they'll -- me you wouldn't go to parents say if you have not instill discipline up to this point -- -- how you can do it -- certain ways -- and let's let's let's get this voted in the right direction.
I think when I found my bag -- great to pieces if -- ever find yourself doing something wrong if you irritable with somebody.
We do you don't sign the little photograph of the lady that you should just sit and a -- T position.
Like that and you start and they start saying to yourself I shouldn't do -- -- -- this I've got to do this and you say shake the titan.
That's what you were doing then it means something just to say well I'll tell shouldn't -- that the next thing you sit down you have a big -- you forget about it.
And set -- is a reason if you look at why would look at the golf tour right now these Asian woman coming across and beating them.
-- it's it's to me it's it's just doesn't make sense look at the tennis.
Wolf from Russia.
-- eleventh -- hits this great sporting America this great sporting nation with all the facilities not know the countries had and you cannot accept it.
Because those countries had a tough.
Another grasping the opportunity.
But we had it really just talking about this the other -- because I -- slow I'm getting my feet -- in.
Children sports I have three little kids rule of watching them in Little League.
And they take it so seriously and Christmas thank is my son is nine dictates a lot of personal responsibility for what he does he -- -- thirteen it's -- It's -- the ego hits maybe as you're seeing a sense of entitlement starts to come what why -- -- along the way then.
Well I think that the parents it all comes back to the parents you've got to make your children.
Say a prayer some -- would it -- religion is just how -- you ought to live in this great country of America.
Just teach your children to be grateful for the opportunities.
That they have -- that and explain to them and sit down and -- And a lot of other countries and on this opportunity at all and take advantage -- -- don't just expect it to happen you -- -- actually.
Educate the children it's not -- I became a vegetative.
I feel so good and so strong.
And much more energy and more lift.
I didn't know about it was you could be educated to -- and things -- it's every not a lot of time but can you explain you gave some tips talent and luck can only take you so far life so what else.
You -- to have dedication and application and have a Honda you could have a house leader of the knuckle Wyman in -- -- going to do well you gotta be starving.
-- Augusta National the closest thing to have an honor.
Well I hope we're not -- hit on the head -- -- the up up up okay great speed thanks but -- it is -- -- to -- -- -- -- golfing -- of course and author of the -- Don't choke check it outs and if I may receiving end of the south African sportsmen of this century.
Very added that it must not set basically.
Going -- looking -- -- soccer on okay back for the little cup final.
-- it's going to be fantastic I that's gonna wrap it up for us karma not so good now 53 points and today -- --
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