Twitter using the handle at jj real money. I just mentioned twitter. Twitter set its ipo price at 26 a pay. But thats what the big boys will pay. Regular investors get their first shot at it sometime thursday morning. And their bids will be on the womens of the market. They could pay more or pull a facebook and see their shares drop below the ipo price. Its symbol is twtr. Its valued at 14 billion. Thats a lot. Some would even say overvalued for a company that has not made actual money. The pros judge these things by mayoring the stock price to the companys revenue. The to come is more than 12 times what it estimates its sales to be in 2014. Thats pretty high. Nor context the s p 500 price is 1. 6 sometimes sale1. 6 times sal. It pushed the dow on wednesday to an all time high. Whatever gain you use common sense tells us that you invest in the stock because you believe the company is going to turn a profit, hopefully one day. That day has not arrived yet for twitter. Twitter brought in revenue of 422 million mostly on ads it runs on users feeds. That sounds good but that wasnt enough to head off 134 million in losses so far this year. Now analysts seem to think that twitter to turn a profit in 2015. Whether you think its a good time to get into twitter now or risky at the moment. They are making a huge splash with their pio. Will you buy stock in twitter . Why or why not . No, as war len buffet says if you dont understand the business dont invest. And jeff said 1,000 investment in amazon as ipo price equals 239,000 today. A 10,000 investment today would be worth 2. 3 million. Youre talking about amazon by the way. Tell me what you think by tweeting me or leave us a comment on facebook. I know you dont want all this stuff. What you want to know whether or not you should buy the stocks. Scott kessler heads up the research team. Hilly cramer serves as chief Investment Officer and managed more than 5 billion in private equity and publicly traded investments in her 25 years of investing. Welcome to both of you. Scott, we gave all this information price to sales, but my question really is people buy stocks because they think stocks are going to go up. What do you think of twitter at 26 . Thanks for having me. We put out pipo research on twitter and we engaged in the same analysis that you highlighted looking at price to sales, price to sales to growth rates in sales. The conclusion that we arrived at is that twitter would be adequately valued at between 11 and 14 billion. You indicated that the pricing suggestion the valuation much higher than that, so the implication is that, like we said in our report, twitter could be from a valuation perspective stretched from the start. And that means, hillary, you made this point. That there is a price at which its worth investing, and this could be all over the place. Who knows. This thing could shoot up by 10 tomorrow, but thats not basis my viewers should be basing their decision on whether or not to invest in twitter. Thats right, but your point hit at the matter, this is not a profitable company. Its innovation. Its the next step up beyond facebook. Its important with its viral aspects, retweeting and all that that it does to society, however its not worth 14 billion. Twitter will drop, even facebook, zinga, linked in. They dropped after ipo. They have all been below their ipo price three months later. There is a price in which you should enter and wait for the stock to fall and understand the big picture that institutions get these shares, and some flip them and share the shares for a profit when the stock goes up the first day of trading, big mutual fund, they want to book some profit by december 31, dont be surprised if, indeed, as you said were going to see volatility, but in the long run if twitter can figure out how to make money and real money and be profitable and have the growth rate, then you could see twitter continue to rise. But thats yet to be scene. This is no amazon as the point you made. They werent making any money either when they started. Scott, 26 is what it will price at. That does not bear much of a relationship to what a guy like me would pay for it if i buy it. It might be more expensive. It might be less expensive. If youre a regular investor and you want a piece of this action, and youre not satisfied by tweeting about it, is there a number that you would say somebody should get into this . Well, like i indicated. We have a valuation construct that we feel comfortable with. Im not asking you to tell my investors to buy stocks. Im saying is does this make some sense from a valuation per special difficult . Absolutely at some points. But its fair to say from this contexts what my experience is, at ive been covering Technology Stocks since the late 1990, and i can tell through is a phrase that has become very popular over the last couple of years that comes to mind. That is fear of missing out. Fomo. It seems given the market appreciation and all the interest in stocks people do not want to be at parties and picnics and wherever else over the weekend and hear about how their friends made all this money on twitter and they didnt. Fear and greed. Thats absolutely the case. Thats the most important thing investors to do. Sit on your hands and wait. Wait for the entry point. The good news for twitter because its a real company and there are 500 million tweets a day, there is, as scott said, a value. Maybe the value is 15. If the stock comes down, the investment banks that are bringing this Company Public will eventually start to support twitter. Research analysts will come out with information. And then well be able to get a sense of its value. Exactly, and the stocks should stabilize and start to go up. If you want in on twitter, really want in, you can get your feet wet tomorrow, but the real way to go for it is to 90 of your position just wait it out. And thats a good point. If you want to buy a few stocks, but dont back up the truck on things like that. But most of my viewers should not be backing up the truck on any individual stock. Thats right, unless an investors wants yield and income. Thats when you want to look at individual stocks. But even there, e tf and mutual funds , you cant get anything today in treasuries. If there is a chance to make money and times are stuff tough for people, but thats the wrong way to go about it. Thank you. Thanks. If youre one of 113,000 californias who have Blue Cross Blue Shield youre in luck. Your policy will not be canceled under obamacare. Not yet. Ill talk to the man who made that happen. And finding the right ceo to make or break the company. Keep it right here. Every morning from 5 to 9am Al Jazeera America brings you more us and global news than any other American News channel. Find out what happened and what to expect. Start every morning, every day, 5am to 9 eastern with Al Jazeera America. [[voiceover]] no doubt about it, innovation changes our lives. Opening doors. Opening possibilities. Taking the impossible from lab. To life. On techknow, our scientists bring you a sneakpeak of the future, and take you behind the scenes at our evolving world. Techknow ideas, invention, life. Determining using some sort of subjective interpretation of their policy as to whether or not your particular report was actually abusive, because if it doesnt contain language that specifically threatens you directly or is targeted towards you specifically, they may not consider it abuse. They may consider it offensive. And in that case they just recommend that you block that person. I dont want to minimise this, because i mean, theres some really horrible things that are on line, and its not its not just twitter, what has happened through social media and the anonymity of the net is that you see websites, hatefilled websites targetting all sorts of groups, popping up. There has been a huge number of those that exist as well. [[voiceover]] every day, events sweep across our country. And with them, a storm of views. How can you fully understand the impact unless youve heard angles you hadnt considered . Antonio mora brings you smart conversation that challenges the status quo with unexpected opinions and a fresh outlook. Including yours. vo Al Jazeera America we understand that every news story begins and ends with people. The efforts are focused on rescuing stranded residents. vo we pursue that story beyond the headline, past the spokesperson, to the streets. Thousands of riot Police Deployed across the capitol. vo we put all of our Global Resources behind every story. It is a scene of utter devastation. vo and follow it no matter where it leads, all the way to you. Al jazeera america. Take a new look at news. Blue shield plans to drop 100,000 customers in california at the end of the year because their policies dont meet obamacare requirements. Now under obamacare plans must include things like pediatric dental care, maternity care, a bunch of things that has to be done. Main have policies that dont meet these mandates. But dave jones stepped in this week and threatened legal action against blue shield unless customers were given more time to shop around been their plans were canceled. The insurance giant backed off giving these people until march to sort things out. Joining me now is commissioner dave jones. Thank you for being with us. We appreciate your time. Let me know why did you this, first of all. People were going to be dropped off. They may still be dropped off. They just have a little more time now. What made you get involved . When we looked at blue shields policies earlier this year we discovered they were not in compliance with law. Their networks were inadequate and their rates from unreasonable. Blue shield informed us they were going to leave the jurisdiction the department of insurance. When you leave you have to provide 180 days notice. Blue shield only gave 90 days and the. We required the extra 90 days. We know a lot of people are going to lose these policies, and theyll have to do Something Else under obamacare. In some cases theyll get these subsidies, but in many case many people who sure themselves on their own will pay 30 more for their insurance. In the end what will happen to those folks who were going to be thrown off their plans. They get to staton their current plan until march 31st. That saves 28point million dollars. Some of them are going to want to move to the Exchange Products where theyll enjoy a subsidy, but all of this could have been avoided. There is nothing in the federal or state law that requires the termination of plans on decemb december 31, 2013. In fact, Health Insurers could have allowed their customers to renew. The whole thing could have been avoided, and frankly it should have been. Tell me how they could have allowed their customers to renew. They can only renew for a short period of time . The law said new plans cannot be sold afte if they dont meete requirements. But they could be renewed. But for individuals and families they decided to dump them all out. I opposed it, the law doesnt allow me to stop it. However when i find notice violations i can follow those. And were scrutin scrutinies ing other companies. Are there only two regulators. Two. And worse than that, blue shield got the legislature to give them a special legislative loophole that allows them to pick their regulators. When we found that their policies were out of compliance, their rates were too high. They said thats all well and good. But were leaving and going to the other regulator. And i dont have the authority to stop it. When the license company can pick who its regulator is, that law needs ton changed. Free marketers will argue if you get into a position where you have one regulator and you have the ability to tell insurers that their fees are too high, that messes up the market. In california we dont have that law either. There is no authority in state law to regulate Health Insurance rates. 35 other states have given their commissioners that authority, not in california. I have that authority for auto insurance, other insurance, we save consumers a lot of money, and my term 1. 2 billion for those other product lines. Insurance companies are still making reasonable returns, and i think we do need to have that law for Health Insurance and hmo. There is a ballot on the 2014 Ballot Voters can pass it and that would give me Additional Authority to regulate rate hikes that are injuring californians and businesses. California. Thank you, ali. And mike, what is your story . You were one of these guys who didnt qualify for a subsidy . You wentgot onto the website and what happened . Well, i received a letter from Anthem Blue Cross, and it said that my policy was discontinued because it no longer qualified under the terms of the Affordable Care act. At i did go on the California Care website. Its very complicated. It was down for about an hour. I was able to come up with a few plans that i might qualify for. No subsidy, of course, but i wasnt able to get any kind of prices or anything like that. If i dont get a new plan by december 15th, Anthem Blue Cross will put me on a comparable plan that does qualify, and my premium will go from 483 to 961 a month with an increase in my deductible. Now is that for exactly what you were getting, or is that the anthem plan that will then meet the obamacare mandates with all those coverages that your may not have had . Yes, its an them plan that will meet the essential elements that required under the Affordable Care act, but the deductible goes from 3,300 per person to 5,550 per person with an increase in the premium. I would assume the reason you take the catastrophic plan. Youre a physician, and you know the Healthcare System pretty well. Yeah, i mean, i had that similar sort of plan for 19 years. Ive had two children under that type of a plan. My son had surgery. So those are things that i could not take care of myself, but i was adequately covered by that plan. And it worked out extremely well for 19 years. You did try to shop for cheaper option. Is there a sense that there is no cheaper option for you out there . It is such a complicat complicatedobviously you dont want me to go into the details but it is unbelievable complicated website and systems, and it was breaking down my six family members whether they were minors, adults, employed or unemployed and came up with four individual plans. Not one for my entire sixmember family. It was ridiculous. Ultimate ly ill have to go down to my Insurance Agent and have him help me out. Im in the business and i couldnt make sense out of it. What is the sense that it gives you of the whole thing . Does it taint your view of the obamacare . Well, you know, the system we have now is broken. There is no question about it. But there has to be a change, but the way this is happening, and the way that many of us are unable to keep our plan even though we were promised we could, its really not the right way to go with b about it. I was hopeful and optimistic, but im disappointed with how this is happening out. Mike disano is a physician joining us from chico, california. On the hunt for a new boss. A little late for you to apply, but you should care about this company and the person who is going to lead it. Audiences are intelligent okay, how many ceos of fortune 500 companies with you name . Bill gates, not for more than a decade. I know you want to say steve jobs, but you cant. Jamie dimon, okay, you win. I know you can probably name a lot of big Public Companies especially if you have any sort of investments in them, but these Matter Companies matter. They make products you buy and employ people. A lot of them. Exhibit a, microsoft is about to get a ceo, only the third one in its 38year history. You know the first guy. You probably know the second, steve balmer. But who is going to be the third ceo of microsoft . Here are three men of five who have made it to the short list since microsoft board began looking for a replacement for steve balmer. Just last night they broke the exclusive details for the final short list. She joins me now. Thank you for being with us. Thanks for having me. Why do we care about microsoft and who the ceo is . We care because microsoft is one of the Largest Technology companies out there. They have a shareholder activist that is looking to get a board seat. Steve balmer, bill gates, and microsoft is all over every security out there. Windows applications, you see service tablets. I dont know if you have a surface tablet but thats one of the items out there. People are talking about microsoft like it needs oh turn around, refresh or something. And investors that weve spoken to said that bill gates and steve balmer for the last 38 years have run microsoft as though its a privately held company. They havent listened to investors or spoken with investors at different events. They need to put someone in there to turn it around and make it competitive again. Which is why one of the first names on that list isalmullaly. He averted a bailout of ford in 2009. Hes completely transformed the culture there. Thats the kind of thing that investors are looking for at microsoft. Remember lube gersner who did the same thing at bim, he came from ma business co that was my nex of all those candidates, alan mullaly is the only who has nothing to do with tech and silicon valley. Thats right. In ford theyre having to install technology in their dashboard so he clearly knows something about it, and hes friends with steve balmer. These two go back for a long time. Theyve close connection. There are a couple of other candidates. I think investors would be reluctant to say that steven elop is the person that they want. He went left microsoft and then went to nokia. A lot of say he ran it into the ground. And there are internal candidates. There is tony bates. And there is one satya nadella. Do we need someone who will excite microsoft again. To make it an exciting company. Theyre looking at microsoft. Theyre looking at windows, and theyre looking at their consumer advices. Theyre wondering were going stick with this. Mobility, so i think thats a big issue for the next ceo. That ceo needs to make its mark and the board is having a difficult time trying to get gates to be on board. I hear that. Nadia, correspondent at thomson reuters. Thank you. Will you buy stock in twitter, and why or why not. Tweet me and follow us at aj real money or leave a comment on our facebook page. If you want to see more about tonights stories. Go to our website. Free advice for you. If twitter does well, youll have other chances to buy it. For other companies that could i rocketed out of the gate and never looked back, ive got other companies that dont. Just because someone wants to sell you something doesnt mean its right for you. If you study twitter and you understand how its going to make money and you think its a good value at a picker price, knock yourself out. But dont feel pressure to buy a stock because everyone is talking about it. I dont think nonprofessional investors like you should be fooling around in individual stocks in any meaningful way. If you want to be in on the action, tweet something and watch coverage of the first day of trading all day tomorrow. Thats it for our show. On thursday, spilling the secret of taking control of your online presence. Im ali velshi. Thank you for joining us
comparemela.com © 2020. All Rights Reserved.