Questioning where your growth is going. Yeah. Whats happening . First of all, i think we need to control the narrative a bit. When people refer to the last Earnings Call we were for q3, plus 22 on the top line and plus 23 on the bottom line. We narrative we taught about is where we saw operating income. Fourth quarter, great back to school. We felt good. What weve learned though and i think what weve seen is this business is much more. We have a Growth Company. Current outlook has double digit plus growth which is close to industry in sector leading amongst the leaders there. Our business is so young, our business is really just getting started. We look and you think of the opportunity we have is that we do need to make certain i understand investments and this isnt investments be damned. Im the larger shareholder. We remain committed to it. We have a great business and a great brand. And were going the keep driving stands it. You yourselves, a, quote, juggernaut. 20 straight quarters of at least 20 Revenue Growth until the streak was just broken. Can you get back to that level or is that in the past now . I think youve got to look at the record of success our company has put up. Think about 267 consecutive quarters im not sure if the streak will ever be broken again. If it is, i hope it will be us. Thats how we think about it every day. This is about what we looked at with the retail environments, we looked at whats happening in north america, business sense, primarily north america 85 of our business but lit be more than 20 , outside north america last year. As we continue to grow and find these other arteries of growth. North american retailers isnt a very difficult place. I think weve looked at some things that we could probably do better as well and so these are not things that are things outside of our control but a lot of things outside of our control. We are a top line Growth Company. We are a bottom line Growth Company. We understand both of these metrics. I think investors have learned over 11year record of success the last 6 1 2 enjoying 20 top line growth. More to come. Youre the ceo and the founder. This is your baby, so to speak. Yeah. When you watch the stock do what it has for the last two earnings perr periods, the stoc is half of what it was a year ago. Yeah. How do you deal with that . How does that make you feel . This is business is passionate. Bris can never be emotion approximately. When you look and understand what the longterm vision of the company is, weve had a great run as company. Again, 11 years public. Weve seen it all. We lived through 08 and 09. Weve seen highs and lows. I would not bet against under armour. If theres a message for shfd shareholder, look at what weve done for 26 quarters. If you had to tell me 26 years ago we wake up in 2017 and have a company approaching 5. 5 billion dollars in revenue, the suite of some of the most Premium Sports in the world, i would probably tell you thats a pretty good story. The reason i wanted to wait a week is touk about this company plays offense. This company throws punches. Thats what we do and its how we continue to expect to be able to run again. We feel good. But there are tweaks. And this is not to say the world is rosy. This is to say like any company, and a great stat. A great stat. Our business doubled in the last three years. So we are 2. 3 billion in 2013. Finished just under 4 or 5. 8 billion. Companies that double like that. Things happen. This is not an excuse but the players havent changed. It doesnt mean the team is different, the outlook or ambition or upside is any different. It means we are running forward and building a fastgrowing company and were building one thats here to stay for a very long time. You just said tweaks. What needs to be tweaked . Are you spending too much . What particularly has to be tweaked . When you look at the calibration moment that were in as business and so there are things you have to worry about. Growth does hide a lot of inefficiency. And i think theres some opportunities for us to be better. This isnt, again, we have a great business. When you look down at the pieces and you look at the momentum of growth and you look at this year we had womens business cross a billion dollar, footwear business cross a billion dollars. Those engines are in place. We look at the business and say theres always opportunities for companies to get better. We think about ways we can do that. It is. When we look at the new heads and what we need and how do we streamline the business and the operations that we have, i think theres opportunities in every company. And so this doesnt mean this is more than just lets turn off the lights before you leave the office. But there are things like that, too. People didnt have to think about that as much because of what growth does and what growth means to our company. You know how this is, though. Your growth by any measure is better than impressive, obviously. When your stock is trading at a particular valuation, some people want it to be at a specific level of where its always been and the moment it slips people start to question where you are in your overall strategy of becoming as youve said repeatedly, the Number One Company in the world. Yeah. Scott, lets slow down. One thing is really important, this company grew 870 million in revenue last year. Grow another 600 million in revenue this year. Were going to make more than 300 million. This is not a company on the ropes. Like anyone, i think Operational Efficiency is critical for any business. Recalibrating at those moments and opportunities to do it, yes. We look at things like when you see the growth and the amount of people who dove in to athletic wear, this isnt something restricted to just being sold to Sporting Goods. leisure and athletic wear is in a Broader Market appeal. Where we think we could do better, we look at the frukt weve had on the floor and weve relied on things like 55 hoo e hoodies to sell and think how innovative, how much build needs to be in there because the same hoodies that sold a year ago are not the same hoodies that will grow this year. Find lifestyle and more opportunities beyond the athletic fields. Those are opportunities for us. You look at the bets weve made and we can probably debate the time of how weve made those bets but whether it was moving from performance of a lifestyle. We launched under armour sportswear collection which will help us fill that gap that lifestyle opportunity. Kids want to wear our brand. Ask the people out there, your kids closets, they have under armour. They love under armour. Theres no brandish shoe here. When we look and say our competition has a third 2040 of their business, two major competitors, in lifestyle. For under armour its less that 5 this this isnt we dont know how to do it or make lifestyle product, we do. Give us the platform. Give us the time to do it i didnt want under armour to become i never want us to be a one trick pony. Were not just about growth. Managing and tefrerring that growth has a lot of things that go into it. Its everything from the retail environment thats out there, which there are good retailers. People have survived this. This is us taking account inlt for our own actions, first and foremost. But there are things that went ever when we look at the growth whether weve got a new system with s. A. P. , great partner of ours, help us connect 200 Million People we have in the connective fitness platform in the database and giving us information about sleep and exercise and how that will form in decision to help us sill more shirts than shoes. Weve got a lot of longterm bets that are in play. Wish they would happen faster. The shift from north america to rest of the world. The shift from one of our retailer which was the Sports Authority last year. And we made the decision to move into kohls but we didnt do that until 2017. Do we anticipate they would go out of business . No, thats not something we thought about. Welcome to business. You look in my eyes and tell me do you believe this is the team thats done this for 21 years, 11 years public and knows how to win . You know, i think a lot of people they bet against tom brady the other night, too. Learn the hard way what thats about. You did. To continue your your analogy, you did lose a key teammate. Your cfo is leaving. And thats going to unsettle many folks on the street after, what, hes only there for barely a year. Cfo left for personal reasons. Hes still there. Hes a good man. Naval academy grad. Were really proud of some of the others that weve had. And brown, our head of sourcing, came from bf recently. Duncan kcmo came from the mad thing about business is when listening to people press release, weve got 15,000 teammates. Weve got an executive team that is robust and full and same people that got us here. One of the lessons that we learned and we know, you ask is this the end . No, this is not the end. This is a company that we understood the same things that got us to the billion dollars is not the same thing that will get us to 5 billion. We take these moments and have it without just the Innovative Growth weve been able to love and feel is because we dont want to press our product into a market that is now back so price focused, we dont want to be the 30 option in the store, we want to be the 75 premium that drives innovation. This is an opportunity for us to unfortunately i dont think youre getting the press release of all those that stay. That is the world of hr welcomes to theres when you bat you typically theres not everyone is going to be there for a number of different reasons. Just the position in and of itself, having to go through another cfo, structurally, does that delay the way you would allocate capital, the way you would think about those types of decision, having to be potentially put off because you have a new person in the seat . No, i dont think so at all. Our Growth Strategy is intact. The investment pieces for under armour is intact. Weve changed the top line and said, you know what, we dont think its best thing for us just to declare were just going to grow because theres a lot of things that have come up. A lot of it ask outside of our control. In the last two years, the last sorry, the last 16 months, you know, weve had over 5 billion of top line revenue disappear from our industry. Is that going to have an affect on under armour . 85 in north america. Again, a little less than eighty next year. You look at that growth and like, yeah, were on rest of world because international, 63 for thus year. China taking stephan cu curry t tours and people are demanding the brand. Its not every place but north america. North america is a good place, too. Again, the growth were talking about is still double digits and something that were excited. So we want to get people and make sure they know we are a Growth Company. We remain one. But were prudent in our investment pieces and the way were going to make thoughtful investments to ensure we become a 10 billion brand. Getting to where we did and through 20 years in history, very proud of it. But the mission that we have has not changed. Our vision is to be that 10 billion brand. Unfortunately weve got a 10 billion business 5 billion Business Today where were investing in infrastructure to be a 10 b10 billion company. Were to the doing that without any thought, either. Like were doing it very thoughtfully. If theres things we need to do, we are prepared to make the difficult decisions. Thats how a company lives 20 years in business and especially the way that under armour has. Do you feel like you need to win back, so to speak, wall street support . Youve had, i dont know, at least ten downgrades of the stock since earnings. People seem to be running for the hills. Obviously investors have been selling the stock. Analysts have been taking undo it by sffairly dramatic levels. Our record of success, if you want to start a business and you want to give us money and say, you know what, i believe in under armour, im going to bet on the jockeys. Theres a number of jockeys. This isnt a oneman or onewoman company. There is a team of people. And i tell you right now our team of people, theyre pissed off. Yeah, they feel it. This is one of those things when you win and win and win, 26 quarters and when people are piling up our difficult quarters its not a fact. So we had a tough time in the Fourth Quarter. I think we came incredibly transparent about it. We gave it great logic as to why it happened, great logic of the deep root cause were taking action for and addressing. Well address that in 2017. Wall street can count on us. Theyve always been able to count on us. Our track record and our history is worth something. We build up enormous amount of credibility . Yes. Trust is built and dropped and its lost in buckets. Do we have to spend some of that credibility and equity . I believe we probably did, but this isnt no ones changed, no ones picked up the a new hobby. This is the same Growth Company i think that people once knew and, you know, were proud of go get it. My team at under armour couldnt be more excited and angry and ready to go. Youre the top jockey as you say. Sort of the terminology that you used. One of my pan lists suggested that maybe you should pull a jamie dimon, use the opportunity to buy back your stock when it got hammered so much as a sign of credibility in the market, support, belief, et cetera. Im wondering if you did do that and, if not, if you thought about it or you will. These inflexion moments in time, like these are these points, these opportunities, like this is an opportunity for us to change the way that we run our business. The not just be growth driven but to truly build a company that is as a company thats as great as our brand. Again, we have a good company. We have people working hard. Bejust need to tighten the belt a little bit. Give us the opportunity to do that and impress you. Were not looking at buying back stock i mean, you personally. Theres you know the point i make, jamie dimon steps in and buy and all of a sudden the financials and jpmorgan stock, this new sort of lease on life as a result of what that means in the marketplace. Of course. Optically if nothing else. More importantly has been my commitment to, you know, our company, is that ive remained the largest shareholder. Ive had lots of opportunities to sell my stock but i havent. I just like being at under armour and i believe the opportunity is so much greater than what people have seen. I believe we have the opportunity to be the number one brand in the world and our competition knows it. People have fun. Continue to kick us a little bit. Thats all right. Because weve demonstrated like we are we are we can demonstrate our own toughness and we can take it. But we want to run we want to run this company and if investors need a message, were not going anywhere. My two feet are planted this this company. My Management Teams two feet are planted in this company. Everybody has a little chip on their shoulder right now and we look forward to making right. I want to talk more broadly about the Retail Business you clearly somewhat have to be caught up in. You said on the earnings day that, quote, numerous challenges and disruptions in north america retail tempered our results. What are the specific challenges that you along with these other retailers seem to be not only dealing with but having a hard time over democrats comecoming. I pause to be the mouthpiece for the whole industry but ill tell you what happened with under armour. Number one, yeah, the closures had an impact on something that we thought would come back more dollar for dollar. That wasnt the case. We have to be more creative and inventive of how to get the money. Number two, we look at ourselves and say under armour has sold and created a commodity of business, whether its coldgear mock, basic base layer for cold weather or the hood disand other things, just become these key items. I think in time is that i believe in the Fourth Quarter that we werent as aggressive as we should have been. And i think we got into, consumer are going to show up and buy our product. It wasnt just because of lack of theres good product on the line. We just allowed some of the more basic product to make it to the floor because it was easier. Because the consumer always bought this. The come modization of the basics and expanse of where its going in the retail Distribution Channels is minimized the need for the consumer to get it from the under armour from there. That combined with promotional environment that had two key competitors, they were 40 and 50 off restrictively. We find ourselves in position saying to we chase price down and this is where we were in the Fourth Quarter. What we found is we might have been late to the party and then we started to say, weve got to move these goods because we cant we have a business to run. And as we began to do that and 15 to 20 of other pricing our product moves. This is not a brandish shoe. Our product moved but it moved in a number because the consumer is trained for that. Another stat i lovednt the Fourth Quarter is the Fourth Quarter our dtc business was 40 of our business. And so you look again at the moves from wholesale to district consumers. We have great wholesale customers. Were going to continue to do busine big business with them but we need to control our destiny. That means having a relationship with them. We want to be the premium player in their stores. Youre not going to waulk in a store and find under armour at 40 off. Its been dismal experience for a lot of people and its not the brand that wanted to be and its not the opportunity that we have. Broader point that im trying to raise is that youre forced to do things because in some respects consumers have been, even if youre selling premium brands, consumers are so used to paying less for almost everything since the crisis. Is that going to change . I mean, weve demonstrated a track record of being able to sell product at full price. Its one of the things that when we broke into Sporting Goods we started in the equipment section because thats what under armour was in 2002. Equipment to apparel section. Maintain margins, able to keep. Weve created a category, created our own pie, new pie, we expanded the existing one and created this new pie in performance. Perform machines is in a lot of places. I dont know if that definition than thoroughly told. Fourth quarter, we could have done a better job telling it. I will tell you as we look out 2017 is that you are see great story telling. You will see a highly the themes that are running through my company right now, edit. Simplify, make ua simply. Thats whats written on the white boards in my office. Dont forget to sell shirts with shoes. Make it simple. Edit. Being more efficient, running a better company. Were thinking about launching 15 or 20 colors. I bet theres only six or eight that are really great of that shoe. Its making the hard decision in the front end that allows you. Proliferation is one of the first things that happens as business grows. I saw it when we crossed the billion dollars and had to tighten the belt. Now another point, bigger company, bigger ship that doesnt turn quite as fast. Make decisions and make them quickly. We know the right ones to do. We know what happened and we know how to fix it. Its clear to me from listening to you if you want the to call it the pain of having to go through this over the last couple of quarters and watched what your stock has done and then come talked about it at some level forced you to thinknt different ways of adapting to the way you run your business in the future. Youve talked about that in this interview today. I dont know if you want to call it humbled or whatever, but it cant be obviously great to watch your stock do what it did. Youre on overwhelmingly positive person. But no doubt has changed at least somewhat the way that you think about your company and the way you want to manage it into the future, no . Look, someone asked me that question. So tell me has this humbled you . My first reaction was, id like to think i never needed to be humbled but we all probably get over our skis from time to time and its good to have your wings clipped a little bit. When i think about what happened and immediately my reaction goes to, i feel wiser. I dont believe there are surprises in life. I think that it is what we do, is that theres always signs for things and the lessons learn fred where we ended q4 in 2016 to the things that we could have done are theyre not easy, theyre not there. And they are definitely, it is it is chess, not checkers. We need to be thoughtful about the way we approach 2017 in that exact samt way but we will apply the lessons as a Management Team that have been arena, been in the battlefield. We are bitattle tested. Are we pleased for our shareholders, these are things we cannot control. We can control our business and consumer, we can control is the relationship of the story telling and amazing innovation we put in our product. You will continue to see that as under armour. I hate to think of us as just a stock and i know people do and i get it. The growth of under armour for a long time. We know how to do this, i guess would be my message to you. Give us an opportunity. Give us a chance to come out and prove to you theres nothing drastically changed at this company. We feel good. The fundamentaling are in place. The team has never been more energized. Were going to run and build a great big business. Great big business. Lets talk a little bit about President Trump because you were in the room with the president a couple weeks back with a number of theother ceos. First off, your impression of the man himself in that context. Highly passionate. He definitely to have such a probusiness president is something thats a real asset for this country. People should grab that opportunity. He loves to build. I dont think theres any surprises here. When you look at the president b. He wants to build things and make bold decisions. Im a big man of people who operate in public and it rate versus think, think, think, think, think. Theres a lot i respect there. A lot of voices out there, a lot of people that a lot of constituencies in the United States of america. Theres a lot of things that are issues that are coming up that are very serious, very deep. Not quite as simple as going to be solved in just a day or two or one piece of legislation. So im encouraged by that debate. Im glad america is engaging in it. Steve used to run saks was on cnbc this morning kalds prospects of border tax xo sten shul threat, his words, to retail. Do you feel the m same way . 60 million jobs humans that work in retail in this country today. There will be an absolute effect from the border tax. So, you know, one thing when we think about, you know, some of the things being proposed, the border tax would have an absolutely very, very difficult affect on all companies in the consumer space, particularly retailer, brands like ourselves. Again, im cautious here to not try to be the mouthpiece of our industry, mouthpiece of under armour. When you ask me about the new administration, number one thick to have a voice and explain because the one thing that i believe the president does want to do is not rurt business. Taxes because of manufacturing, there are Certain Industries that just dont have no such thing as apparel industry that exists in america today. Today its less that 5 of a par real purchasing in the United States was manufactured in the United States was built in the United States. And when you look at sort of whats happened with that narrative, you know, weve taken actions in baltimore. Already started our own domestic manufacturing. Pushing towards these things. But i was in ohio in 1988 when i watched 187 sewing operators lose their job because the factory was pulling out to mexico. We gave up on this a long time ago. I think the i teintent of what e president wants to accomplish is important but pragmatic approach to work with companies to get this across the line. Youre certainly trying to do your part with the billions youre investing on the baltimore water front where you will be manufacturing more stuff in the United States than you ever have in the past. Once thats all complete. Yeah. This is over a long period of time. If it gets to billions. This isnt a commitment. Cap x is something we filed in. Changes since what we found in running a Better Business in 17. But, yeah, its very important to us. I believe fundamentally that the definition that the expectation that consumers are going to have of any brand, particularly a consumer facing brand, is going to drastically change over time. Theyre going to have higher expectations. Of course it will be the Double Bottom line. It will be shareholder return, all the things that matter but its also going to be what can we do to make a people want a reason to buy a product and it cant just be like the athlete and what a superstar. Its got to be that were doing things. At the heart and soul its a job. City garage in Baltimore City that we built. We got a workforce developing Training Center there. All of these targeting and purposing towards bringing manufacturing back here. This isnt just an american u. S. Domestic story or one administration because the people of south palo want things built in brazil. Globally, its the same message. We can do a better job, we expect to do that. Your guy braid dy won the su bowl. Winners win. Another great guy, hats off to arthur plank and the falcons and the whole organization, too. They got the two best teams got to the playoff and we saw a great football game. And julio jones, another guy that is a great asset. Tom brady is a special human being. He demonstrates things for all of us. Were proud of our partnership with him. Brand new sleep line of product we Just Launched with tom, too. Bring innovation, eight hours of everyones day, a third of their lives they enever talk about. Kevin plank, thanks so much. Thank you very much. Kevin plank is the founder and the ceo of under armour. Of course, heres what else is coming up on the Halftime Report. The new big short. Andrew left unleashing a new position, shorting Motorola Solutions. The stocks reacting right now. Andrew left is standing by. Plus, two market heavyweights weigh in on how the market will fair during the first part of the trump administration. Scott wapner and the Halftime Report are back in two minutes. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Welcome back to the Halftime Report. Im john harwood in washington. We have just seen the conclusion to one of early political dramas of Donald Trumps presidency and that is the confirmation of betsy devos choice to be education secretary. Mike pence just cast the the Vice President just cast the deciding vote in the senate. 50 50 50 tie. All 48 s voted against devos. Two voted no. All remaining republicans voted yes. The Vice President is the presiding officer of the senate,s that power to break ties. Mike pence has just done that. Despite the all night long talkathon by democrats, the attacks on her as not being versed in public schools, being an advocate of private schools and not the Public Education system in this country, she will be Donald Trumps education secretary. Early win for donald trump. And thank you very much, john. Appreciate it. Heres whats happening at this hour, everyone. Iranian leader eye tollia khamenei telling an audience of military commanders he is thankful to trump for refeeling, quote, the level of political, economic, moral, and social corruption in america. Several Government Air strikes hit a rebel held town in southern syria. One young child was killed. Several others injured in the strikes. A youeuthanasia drug is fou in dog food. They are recalling five lots of 12ounce cans of hunk of beef au jus. One dog died and four others became ill after consuming the product. And lady gagas super bowl halftime show was lucrative for the superstar singer. She sold 150,000 digital albums and songs in the u. S. On sunday. 1,000 increase over the day before, according to nielsen music. I still cant get over that jump. Thats the news update this hour. The Halftime Report is back after a very quick break. Shift in Human History grean is happening before our eyes. Sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Its league night . saved money on motorcycle insurance with geico goin up the country. Bowl without me. Frank. im going to get nachos. Snack bars closed. Gah ah, ah ah. Im goin up the country, baby dont you wanna go . Im goin up the country, baby dont you wanna go . Geico motorcycle, great rates for great rides. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back to the Halftime Report. Shares of Motorola Solutions are falling today. Theres a look at the stock. Down nearly 5 . That after noted short seller andrew left of Citron Research released a report critical of that company. Mr. Left is back with us today live from los angeles. Welcome back. Nice to see you, scott. Why Motorola Solutions now . Well, ive been looking at Different Companies and who is completely viscously, egregiously ripping off the government and saying how could there actually be a change. What i saw with Motorola Solutions was a conflict of actually three things. First of all, extrotheyre goug the u. S. Government. No way around that. Number two, theyre doing it at the expense of Law Enforcement. And most portly, number three, theyre doing it at the expense of innovation, which is what our Law Enforcement and Homeland Security needs the most. How much of this and im sorry, its one of the first things that i start thinking about when you look at the kind of thesis that you have in this stock, how much of this is trying to take advantage of a president that you yourself know is not afraid to weigh in whether its by twitter or otherwise, against a company that he deems to be charging too much for a product or one that you say, quote, is gouging the u. S. Government . I mean, one thing is taking advantage and another thing is understanding shifts in the marketplace. What im doing is understanding the potential shift. I think congresswoman anna eshu mentioned that 5,000 radios to our police is completely ridiculous. So just like the farm suit cap industry it was out there. Before the whole thing came falling down, it was out there. Congress people knew it. People who were involved knew it. So the secret of motorola charging 5,000, 6,000, 7,000 for a walkietalkie, for the same that might sell for 600 or 700 in the uk. We have a president who also is very Law Enforcement friendly and a president who would look at this if you look at what hes talking about with the f35 program on lockheed, thats a joke compared to whats happening here. This is a low end walkietalkie for 6,000. So Motorola Solutions, since you brought up the u. S. Versus uk radios and the prices and the discrepancy of those prices as key, at least one key metric in your overall case, they say and im reading straight off their thing. In your report you compare two different radios. One thats made and sold only in europe and another for the u. S. Doesnt the u. S. And the uk have completely Different Technology standards . How is that fair or even a relevant comparison to make because of those different standards that they have . Are they apples and oranges . No, not at all. Theyre both on lmr,. The same exact standard right now. Whats funny about that, that would be as if i said to you, oh, one phone you are using a cellphone is on sprint and the other cellphone is on verizon. How could we compare these two. You know, one of these electrical appliances you plug into this adapter and the other appliance you plug into the other adapter. Im discussing a noncompetitive business that they have in the United States that is competitive in the uk. Thats the difference. The handset they make in the uk, theyre resell mostly from erickson. On the same exact lmr technology which, by the way, is moving to lte which will eventually make their business in the u. S. And their business in the uk complete dinosaurs when it comes to when i say dinosaurs, they will be involved in lte, just not at the same crazy margins theyre generating right now. So maybe trump didnt spur you to do this. Surer, you say people have known about this for a number of years. Hes simply the president , im saying, is the catalyst, if you will, to help with your short. Right . Every case needs a catalyst. The catalyst is once this gets attention. Absolutely. Hello. There are so many different catalysts. Hi, can you hear me . Yes. There are many different catalysts here. The first catalyst is potential political intervention. The second catalyst, just the inevitable technology of evolution that were seeing in the industry. Theres no question with that. If you read the report you will see. Its a very clear report that shows that the u. S. Government is overpaying for legacy situations with motorola. Thats it. Theyre not innovative. The sell side will never say this is the most Innovative Company for Law Enforcement. Theyll say they use the word legacy. When i hear legacy i think blackber blackberry, ibm, xerox. Thats what i think of with legacy. You think this stock is going to be near cut in half, your price target is in the 40s. Oh, i think you know, in the next three weeks we have the barcelona mobile world congress. I think people are going to be able to show their Mission Critical pushed to Talk Technology which is going to make everything we know and everything motorola knees as profit look like a dinosaur in only 2 1 2 to 3 weeks. Andrew, appreciate the time as always. Have a great day. All right. Do the same. Is it t citrons andrew left. Hes had a big impact today and hes flying against most of wall street with a lot of upgrades that have recently come out but gartner said handsets worldwide, even if you thought that they werent being gouged, the government, our government in particular, the fact that handset sales are projected to be flat except perhaps in emerging markets, tells you a lot about what the Downside Potential is for a call like this. No wonder its trading eight or nine times normal volume. The two key words i come away with right now, legacy he uses that in a negative way. And also when hes talking about what he sees about gouging, that is everything that mr. Trump, President Trump is all about, right . So those are two factors that make you say, you know what, this is maybe nothing to touch for a while, especially on some of the stats that jon is throwing out there as well. Eventdriven investing. Its eventdriven because of the president and his willingness to weigh in to this stuff. He brought both of those and weved both of those into it. Barcelona worldwide conference, thats going to be huge if indeed the push to talk, judge, if that is pushed at the level he says it will be at that conference, thats not also want to let you me cnbcs jeff cox had been in touch with Motorola Solutions. They send along that point to make for mr. Left. We understand they are going to send a statement along shortly to officially respond to what mr. Left has said and what his report has laid out. The gross margin the thing thats concerning. How can a gross margin in europe be 9 , United States, 83. 6 . That gives credibility to his argument. Gouge. That makes a very compelling argument. Now, he says 45 is the right price for this stock. Possibly its 45. Possibly its 35. But if there is a price adjustment its going south. Its not going north. A lot of stocks to talk about today including a big upgrade for caterpillar. Also ahead, were going to let the traders weigh in on under armour after that exclusive interview with kevin plank. First, tyler matt son has a look at whats come coming up. Coming up on power hope you will join us. Backlash over President Trumps travel ban. Whats at stake for Silicon Valley. Companies are agitated out there and elsewhere as well. Plus, why buying a home has never been more difficult and why the problem is getting worse. Disney earnings are after the bell and well tell you the one key met troik to watch and what to do from that stock from here. Halftime report right back after this. To watch and what to from that stock from here. Halftime report right back after this. To watch and what to from that stock from here. Halftime report right back after this. R to watch and what o from that stock from here. Halftime report right back after this. Ic to watch and what do from that stock from here. Halftime report right back after this. Were back. New York Stock Exchange with the Halftime Report. Look at shares of caterpillar today getting a lit bit of a bump. Of course theyve had a great run. Barclays today upgrades the stock to overweight. Bumped the price target to 110. Its our call of the day. Steph, youre long with stock. Theyre late to the party. Yeah. They are. Definitely late to the party but if you read the note it was actually kind of interesting. All of their end markets are still very depressed. Its not just mining. Its oil and gas. Its a lot of their end markets. The only thing starting to do better which is a leading indicator is after market. After market orders have improved in the last couple of quarters, which is one of the reasons why i got more bullish on the name. But here its a little its not as compelling. Takes some hutzpah. Stock is up 40 . Im explain that to you later, peter. I like it. 40 in a year. Yeah. To go outperform on it now. You know what, if you look at it theres only 42 of the analysts out there who have buys on it. Only nine buys. 15 holds. 4 sells. So the sell side still is not really enamored with it because they want to wait and see. Wait and chase. I dont think you buy it here. But i think on weakness, you can pick but on weakness you can be picking away after it. More after this break. Welcome back to the Halftime Report. Im courtney reagan. Crude oil down 2 . Bob, is the story all about supply concerns . Not completely. We are 91 done with the opec supply cuts. One month in to a sixmonth agreement. Remember, this is supposed to be an average over six months and 91 is cut. And crude oil 6 lower than the january highs. 100,000 extra barrels in the u. S. Has been offshore alaska. Not shale yet. So opecs got trouble and looking for 50. 75. Watching them closely and, anthony, what do you think . Can oil break below 50 bucks . We are right around 52 right now. I dont think it does, i think we go higher from here, actually. This is the bottom end of the range. Opec cut more than a Million Barrels a day. Thats more than they have in years. So im looking positive for crude oil prices. Very interesting. Opec surprising some of us. Join us on futures now with relength ka patterson. More after this. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at esd. Ny. Gov and her new mobile wedding business. Tte at first, getting paid was tough. Until she got quickbooks. Now she sends invoices, sees when theyve been viewed and tada, paid twice as fast see how at quickbooksdotcom. All right. Stocks are not that far off the lows of the day. It is a gain of 30 points for the dow. Interesting stuff today from goldmans david costan. It locks fading to 2,300 at an absolute level, the market trades at the 90th percentile for the index. And its rarely been this expensive in the past 40 years. Buy that . Believe i mean, what do you do with that . Theres the same problem of dow 20,000. S p 2300 appears to be a ceiling for the marketplace right now and pulling the market to the downside in a corrective capacity. Corporate tax cut, the fiscal policy issue, thats still out there and the put underneath any correction. Seth cl clarman put out a letter to his investors regarding trump, trumps policy, the president , says, quote, xush rant investors have focused on the potential benefits of stimulative tax cuts while mostly ignoring the risks of americafirst protectionism and the erection of new trade barrie barriers and could be inflationary. Doc, this goes back to the conversation of investors are sort of blind to some of the risks that are out there regarding the trump presidency. Yeah. I dont believe they are. I keep saying, judge, that i believe this is a second half story with the taxes and perhaps even bleeding into 2018. And thats because this is a very thick book that youre rewriting as far as the tax code. As far as some of the other things, could he all of a sudden snap his fingers and do a tariff or something . Sure. I dont think hes going to, though. For all the people that thought a week ago the trump rallys over, well, you know, several hundred points higher. Still going up. Maybe more bark than bite. Yes, sir. Final trades. Out to you guys, disney. Earnings after the bell, iger on at 5 45 with Julia Boorstin on cnbc. Check that out. Take your position. I own it, the stock. Unbelievable amount of options trading in here and i think iger signs up for that. A final trade, joey . Would be, again, as i said yesterday long amg technology. Up about 4 after a good quarter. Nobody owns this, only industrial nobody owns and certainly buy it, e her son electric. Gold continues to go high. A little bit of a move. Highest move in three months . Yep. Thanks so much for being here. Power starts right now. Thank you, scott. More on the big interview of kevin flank. On the menu, the dow and nasdaq at record highs and a legend sending a big market warning over President Trump. The details on that coming up. The growing backlash of the president s travel ban. Could bit the tip of the iceberg for Silicon Valley . Obama 5. 0. Must see pictures of the president hanging ten with a famous billionaire