Transcripts For FBC Markets Now 20130315

Happy friday. I am Melissa Frances. A lot of headlines to go up to speed. Do jpmorgan ignore the warnings . After new Senate Report after the huge trading loss. Melissa and other mechanical problem with Carnival Cruise lines the third in a month. Lori what is your vice . All day we look at the business of vice. Melissa we have the brains behind the medical marijuana vending machines is is the future prescription drugs as well . Lori en you may like the wings but we know what you like hooters. [laughter] with the famous american brand going overseas. Melissa lets head to Nicole Petallides at New York Stock Exchange it is down 37 points on the session. Still a winning week with eight consecutive sessions were up 10 Straight Days and today is one where it takes a little breather now where it goes over the line 50 times but has been under pressure for some time. The s p 500 is slightly lower but we have Consumer Sentiment in they are feeling bleak and as were getting get it is quadruple witching friday with options expiration. Comparing Dow Jones Industrial average also has a winning week on wall street getting back to those levels from a for the financial crisis. Lori jpmorgan executives are grilled on the london loss rich edson is following it for us. They say they got a wrong but the panel is not letting up. Three point five hours of testimony started with the 16 senators better left is just one. Friday on capitol hill. Senator john mccain said it is hard to except series irresponsibility has been assumed by senior management. But senator levin tries to get at is with a trading portfolio recording a loss of 12 million in one day it was a loss of 600 million so that is where we are with testimony. Also jpmorgan size and shape. To the management of jpmorgan and the trading desk attitude that it was too big to fail to drive up the risk portfolio . Not have all but this was an egregious mistake much regretted not putting reliance on too big to fail. Much early testimony was on the former chief Investment Officer said she was still was lost to which it blames the london office. For those are not cooperating right now in their outreach from the rich jurisdiction. Jaime dimon is not here today either. They said they had heard from him last year over different panels and if todays hearing produces a reason to call him they will. Also to refer this to the Justice Department. Melissa tonight we break down the hearing with the stress test was too exclusive interviews we have sheila bair and dick bove nobody knows the Banking Industry better. We will have them here for reaction. Lori business controversial the business of vice even by pornography scandals standards in making a name for himself and attracting interest from khieu wall street players Charlie Gaspar reid now hit set off. Today and i actually searched for pornography and did not get it get into trouble. This is a serious story. A huge conglomerate he is like the new larry flint with new York Magazine but what is controversial is not only does he offer the pay for porn but by reading to create the hubs like they used to the of porn and steal stuff that is copyrighted from hustler and watch it for free he sells advertising it is extremely controversial in the porn industry like i said it could be part of a part of life but this thing was fascinating and austrias involved. These are not minor players but one company, they came with the 167 million financing. Then the loan was syndicated wear wall street is the publicly traded hedge fund vehicle. It is involved in the enterprises that it is interesting not just because they do porn but it is pirated. U2 has problems. Melissa how secure is the business . Nine u2 there is ftc actions if you take me fox news or fox business to put it on is a good chance you will get a call to take it down. Saturday night live clips are hard to find because it is copyrighted. But with the porn industry the Justice Department do not clamp down on this. There is no enforcement of copyright laws because it is porn. If there is companies could have a problem with those of finance them. Some people at fortress apiece but sold it. It is bouncing around up there. When it comes to the bottom line and wall street would step up to the plate for something so controversial. Not because they are involved with porn. It is the stealing of it. And we should point out i have numerous calls out to the Founding Partners and he ill has no comment. If they syndicated completely or tangentially involved, i am coming back get 3 30 p. M. Lori what are your bookmarks . Mine are pretty lame. [laughter] all debris track how you can look at other people since. We have jeff flock on whisky trail. Looking at the Tobacco Industry, lets kick things off. Drinking on the job by hopeless jack daniels. If i dont make sense i have an excuse. The ground foreman had an incredible run. Show me what is inside. What am i looking at . It is fermenting it in six days that goes into the barrels. Amazing. I wish you could smell this dont get too close you could collapse. It gives off heat it is 10 percent alcohol will get all of these. This is becoming a huge but the high end of the Super Premium bourbon has taken off. Consumers want Higher Quality product with complexity and flavor. That is what we provide. Lets put up the stock. Over the last five years it has taken off because bourbon is it is big again. Did general manager here bourbon you drink you should look into it. Lori it is a guy survive for being with Melissa Frances every day . Melissa that was not necessary. [laughter] drink up. I will try bourbon again it used to give me a headache maybe it was the cheap stuff. Melissa the Tobacco Industry takes a hit with higher taxes and more americans quitting is investing too much to risk . We have robert gray off. Good afternoon. Fewer americans are smoking all the 19 percent are smokers and the price of cigarettes have more than doubled. See may not expect to see that over the past decade decade, the big tobacco producers Philip Morris will morris here in the u. S. And others outdistance the s p 500 when they reinvest the dividends and one statistic to jump out come over the past five decades is a paltry a group take a look returning almost 20 per year. 840,255 thank you to s p four crunching the data. There are a lot of risks involved their steady dividend payers but bell have fairly large debt loads we know about litigation risk and regulation and we will talk about that the next hour with a face is in california. Back to you. Melissa what is business without wings . We have the efforts of expanding the hooters brand spirits this is what a down day looks like. Back at the New York Stock Exchange down 40 points. Lori carnival faces another problem with one of the ships. Melissa dave negative killer that will let you scroll with your eye. Lori lets check the metal as we go to break. My mother made the best toffee in the world. Its delicious so now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never really thought i would make money doi what i love. [ robert ] we eated legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. And his new bossold him two things cook what you love, and save your money. Joe doesnt know it yet, but hell work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. Hell start investing early, hell find se good people to help guide him, and hell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense. From td ameritrade. Getting and checked on the new york stocc exchange with Nicole Petallides watching boeings. Looking good today you can see it is up 1. 8 . 86. 17. Looking at the 77 reminder that battery will have no components now trying to get it to fly there conducting test but it could be the next week or the following week they have been grounded since jittery when the battery, fire. Look at the fiveyear charge its an annual high we have not seen from levels of 2008. And i stayed for those hot on boeing. Melissa is the consumer back . Consumer sentiment fell to the lowest level since 2011 but a couple of days ago the 10 sales jumped more than expected that prompted my next guest to raise the forecast in joining me now for j. P. Morgan, you raised the forecast at 2. 3 from one point five. Holcomb . Those retail Sales Numbers are doing better than expected. We started the year with a decent increase but as it turns out consumers kept spending. It is of its of a surprise was stronger spending. Melissa and the number one forecaster is impressive but you changed your forecast with retail sales but what drug Consumer Sentiment . Those numbers all are all over the map will last Consumer Confidence number and their rasmussen numbers are sideways they are all over the map it is hard to say. This morning the referenced government policy concerns for you get a lot of sequester concerns in that number so that may drive the drop we saw. And maybe theyre getting concerned. One of the big concerns is the payroll tax hike 77 american sought taxes go up but then you wonder about to the wealth effect going up after day. Out is that reconcile . Were pretty confident with spending in the First Quarter but we think it is positives of incrementally it is a little more supportive but marmalade the drag from taxes is more. Enough so why did it take the edge discrete steps up . That is hard to figure out. The First Quarter forecast where do we go from there . We have a pullback of second quarter. That is somewhat technical inventory may be built up too rapidly maybe we hit the sequester but over the next year rethink gross gets better above trend eventually. The Housing Market is supported and hopefully the head wind will obeyed as we get down the road. Lori more trouble for carnival. One ship is stuck the other is limping home. Melissa liz climate is sliding california with an estimated 13 billion porn industry. We will go inside the penthouse 3d studio and here is the founder larry flint. Next. Copd makes it hard to breathe, but with advair, im breathing better. So now i can be in the scene. Advair is clinically proven to help significantly improve lung function. Unlike most copd mications, advair contains both an antiinflammatory and a longacting bronchodilator working together to help improve your lung function all day adir wont replace fastacting inhalers for sudden sptoms and should not be used more than twice a day. People with copd taking advair may have a higher chance of pneumonia. Advair may increase your risk of osteoporosis and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure before taking advair. Youre still having difficulty breathing, ask your doctor if including advair could help improve your lung function. Get your first full prescription free and save on refills at advaircopd. Com. The new pope failed to protect priests who challenged the military dictatorship. Today marked the second anniversary of the syrian revolution. Rebels took to the streets to protest Bashar Alassad back in 2011. Today with the death toll nearing 70,000 and more an than a million refugees, the u. N. Warned that the Syrian Crisis continues to get worse. Those are the news headlines. Back to melissa and lori. Lori rick, thank you so much. S. Not words you shoot with fire, malfunctions and delays. Nearly a month after thousands of passengers stranded on carnival triumph and one day african val dream became stuck in port in st. Marten, carnival legend hobbling home to tampa due to a propulsion problem according to carnival. Passengers expected to enjoy grand cayman, will get 100. Thats rich. Excursion credits and 50 off a future cruise the Pr Department for carnival is working overtime. Oh, my goodness. Is the death of the brickandmortar bookstore killing off the adult magazine business . As we continue our business of vice investing day, liz claman is live at penthouse three destudios in chatsworth, california. Liz . Are you laughing in. Let me tell you something, nobody is laughing here. Weve moved upstairs in this 38,000 square foot in 3d studios in chatsworth, california this is the cave. This is the he had at this time edit woman they edit 17 adult movies every single week. There is Million Dollars worth of equipment in this room. Is not a surprise they are pouring money and capital into the broadcast opportunity content here. As you pan along, you can see here, theyre ingesting 3d, what has been shot as 3d films into 2d so they can promote it for 2d and 3d and comes out in the 3d form as well. It is only 3d studio anywhere. Why are they putting capital in this . The pornography magazine business is money loser. It used to be 80 of the revenues, now less than 5 . Not just at penthouse. Hustler magazine known as the hardcore pornographic magazine is struggling. Larry flynt told me in a fox business exclusive, the founder of hustler magazine. He makes the pretty dramatic prediction that hustler magazine may not exist in the next two years. Where will the revenue come from . Larry flynt says it will come from the sexual toy retail side of it. Listen in. The stores, Retail Stores are fabulous. We have a whole array of items. And it is no longer just a place for people go to shop. Its a destination. A destination . Larry flynt says to my at 3 00 p. M. Eastern in the long form interview you cant miss because it is a fox business exclusive. He wants it to be the saks fifth avenue of adult retail. Okay . So he is says this is where they are making so much money, hundreds of millions of dollars. In fact, he has got a big store in london doing extraordinarily well and boy, what about the casino business . He talks about that and much more. They want to go big in vegas with a hustler casino. You will hear from marine layerry flint, 3 00 p. M. Eastern. Between then and now the male porn star who is the hottest thing. James dean. He is coming up at fox business 2 00 p. M. Exclusive. Lori saving that for two . No, no, no. Melissa liz claman. Thanks so much. Lori well be watching nonetheless. Melissa absolutely. Lori you cant win them all. After eight Straight Days of record closing highs the dow is pushing lower. The new record dow, the new record the dow may break if we close in the red today. Melissa 25 Million People are eligible to purchase medical marijuana legally in the u. S. Were going to introduce you to a man that is profiting by making weed more acceptable. Accessible . Lori stocks now as we do every stiff teen minutes. Back to the floor of the New York Stock Exchange. Nicole petallides, the win streak is not only record youre keeping an eye on the dow today. So much to talk about the Dow Jones Industrials and the market were seeing so far. If the dow closes lower today, friday, it will be the first time the dow is down on a friday, this year, in 2013. Every friday has been a happy one for the bulls. So today may be the first one of 2013 to have a down arrow. Just talking about march alone, this will be the first down day of march. Every single day of march had an up arrow. Something different today. Also dont forget. There will be heavy volume going into the close with the options expiration. Back to you. Lori okay, thank you. Melissa so theres money in the green rush. That is what our next guest is calling the recent expansion of the medical marijuana industry. His company, med box, they sell medical marijuana dispensing machines. Here is med box ceo. Thank you so much for coming on our show. I understand that your company though is looking to expand even, these dispensing machines, go even beyond medical marijuana. Is that the longterm plan . Thats correct. It is the shortterm and the longterm plan. First of all thank you for having me back on. Nice to see you again, melissa. And you have hit the nail right on the head. Our company, medbox, is really a Value Proposition not just in medical marijuana but certainly in Traditional Pharmaceuticals and in health care as well. Our technology specifically provides the ability to basically store inventory control and dispense Prescription Pharmaceuticals and herbs. So we have potential technology for every place in the traditional pharmaceutical and health care worlds, whether it is a Retail Pharmacy or a Doctors Office or a Large Employer or a hospice or a prison system. Melissa yeah. So you, can set up a whole dispensery. You do every sort of consulting beyond the vending machine we saw. If someone tries to set up a dispensery in california or where else it is legal youre able to do that . How much of that business is yours . I say currently half of our business. Chairification. We dont sell vending machines. The technology we have and the medbox equipment is tool for pharmacies and pharmacy staff. It sits behind the counter. For all intent and purposes is the safest way to store inventory control and dispense the medication. Melissa what is the barrier to entry . That seems like other companies can come by and do as well . First and foremost we have very, very strong and broad patents we defend vigorously. And number two, i believe that the difficulty for most people, which we do, we help a lot of people start from ground zero all the way through turnkey dispensary. The difficulty in the states that started to come on and start to legislate medical marijuana you find there is a limited up iner about of licenses in each state. So i believe the process of making application which is so very important and which is what we excel at and were the most successful in the industry is the key, is really the key point and the key focus of getting you that license. Melissa do you see this already with other controlled substances, this kind of dispensery . Not particularly. I may not understand your question. Melissa vending machine type technology, in terms of having to have a card and in order to keep track of drugs as theyre being dispensed. It seems like a nobrainer. I see its application to medical marijuana. I see youre trying to branch out to other types of drugs. Do you see it already for other types of drugs . Oh, yes, for all the pharmaceuticals. Melissa, you have got kids, ive got kids. Who has time to wait for 15 or 20 minutes in line at pharmacy counter. Typical pharmacies are still kind of ancient in the way they do business. It is competent sensitive for them. Anytime you automate the process and use medbox technology we provide a safer, more secure, certainly more convenient for the patient and consumer and more Cost Effective way for the Retail Pharmacy chain to really dispense the medications. We have. We believe the technology we have can actually evolve the entire pharmaceutical industry and the retail model. Melissa yeah. It is really interesting. I know your stock trades overthecounter. Getting a lot of attention now for this reason. Doctor, thanks so much for coming on the show. We appreciate it. Thanks some more. One quick question to let everybody know, were filing our form 10. Well be a fully reporting company in a matter of weeks. Thanks for the information. Nice to see you guys. Byebye. Lori the business of vice, hooters brand going global, the Molding Company of the hooters restaurant think wings and hot pants were big. Melissa right. Lori hot pants. I was thinking of menu item. Melissa no. Internet gambling is legal in only three states. That could soon change. Some Public Companies are ready to jump in. Dennis kneale on the push for online wagering next. All stations come over to mission a for a final go. This is for real this time. Step seven pointtwo one. Rify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Good afternoon, everyone, im sandra smith with your fox business brief. It is a bearish day on wall street, putting the dows 10session run in jeopardy. The s p 500 is also backing off from its near record closing high. Even as the point gone faces budget cuts and forced employee furloughs the department spends nearly a billion dollars a year on Unemployment Benefits for former troops who left the military voluntarily. Eligibility for military compensation requires only that a person serves in uniform and was honorably discharged. If you didnt bother filing a federal tax return for 2009 you could be missing out. The irs says it will claim 917 million in unclaimed funds if those people fail to file their taxes by april 15th. The deadline to also file your 2012 income tax form. Thats latest from the fox business network, giving you the power to prosper. Melissa we have some breaking news right now. The Securities Exchange commission announcing that stamford based Hedge Fund Advisory firm, intrinsic investors agreed to pay more than 600 million to settle charges it participated in an insidertrading scheme involving a Clinical Trial for an alzheimers drug jointly developed by elon corporation and wyeth. That 600 million is the largest ever settlement for an Insider Trading case. Lori jackpot. Online gambling raking in 30 billion in revenue each year worldwide but only three states here in the u. S. Allow it. Dennis kneale here with the big push to legalize online poker in america. How are you doing. 10 million americans play poker on line . Lori really. Federal government thinks this is forbidden activity. Only three states legalized. Senator alphonse today maut damato, senator pothole. He is for the alliance, with a nationwide federal push is needed. He figures this is time to come into the 20th century. Get a listen. There is lots of revenue that can be raised. When we talk about the internet, were using it for everything. Imagine what were saying is, get into the 21st century. Let people play. Theyre playing throughout the world on the internet. And if you want to see the honest games are honest, have a regulatory system that was rather easy to set up, particularly if you set it up the way weve seen it done in europe and in other areas. Does seem a little late . People have been playing poker online since the 1990s, guys. Government is only two decades late. In addition to fight whether to legalize there is second fight. Who will dominate the new Online Gambling world. New up starts and Online Companies or incumbent casinos. New jersey approved gambling online poker you cant do it unless you have a casino license in Atlantic City. New jersey favored its own incumbent casino companies. Senator damato group, backed by overseas Online Gambling companies they dont have casinos. Lori what do gamblers a anonymous folks alliance say about gambling. I would say theyre against it. Wall street analysts say to buy gambling stocks, certain component of the Customer Base are addicted. Lori why starbucks is good investment. Melissa do you play poker online. I dont trust cut computers. I want to play with guys that can a he had my face up standly. Lori dennis doesnt have a poker face for sure. Melissa lets check the markets. Nicole petallides on the floor of the New York Stock Exchange. You are watching a big loser in todays session. I am. And i suggest dark sunglasses for dennis when he plays poker. Lets take a look. Were looking at ultrabeauty. This Illinois Based Company they did well. This is the outlook below analyst expectations. It is down 16. 2 . This is no small stock. This is 73 stock obviously, closer to 74. But their guidance is missing expectations. Youre talking about everything from fragrances to the cosmetics. They have names such as chanel and elizabeth arden, loreal, hair care products, full hair service salons inside. Their outlook as they plan po expand and the like and hitting their numbers. Back to you. Melissa nicole, thanks so much. Samsung has a new phone a lot of people are talking about it. Well see what kind of threat this may be to iphone. Lori and it is not just the wings sauce that is hot. Hooters going global. Well talk to the man who is taking the brand to places like south africa and brazil. Weve completelyntegrated every step of the process, making it easier to try filters and strategies. To get a list of equity option. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Melissa so samsung unveiling its latest smartphone the galaxy s4, which it hopes will be an iphone killer. Shibani joshi has been following the story. How is the industry reacting to the launch so far . Iphone killer it is not is the consensus on the street. Apple shareholders and employees and apple phone owners can breathe a sigh of relief. Dean munster, one of the analysts on wall street from Piper Jaffray saying he is not touching apples forecast result of s4 as unlikely to meaningfully impact iphone share of the high end over the full year but do expect it to take share from other android phones. The s4 was unveiled last night a big party across the street from us in radio city music hall. It has great features. Has nice screen, faster processor and nice bells and whistles. The Company Believes it has great traction for consumers and it is about take the Enterprise Customer and taking over share from microsoft, google, blackberry and others. The chief product officer from samsung spoke to me about the enterprise on tuchbt here is what he had to say. We think enterprise is a huge opportunity for us this year. We need ad platform to do that with. Having the galaxy s4 with nox gives us a solution to compete in the enterprise market. Nox is their corporate Data Security system. The phone goes on sale the end of april. We think it will be sold for 200. All the details will still come out. Melissa good stuff. Shibani joshi, thanks so much. Lori so many choices. Melissa some choices. Lori becoming overwhelming. Hooters, how is that for a segue . Hooters switched up menu items adding new salads to lure more women customers. My next guest is appealing to new countries that hooters traditionally not had a presence. This ceo, mike pruitt, the Holding Company for hooters joins us much more there expanding the iconic sports bar in emerging markets. Great to see you, mike. Thank you for having me, lori. Lori isnt that why youre expanding into places like brazil and south africa and hungary even, because u. S. Sales are not as robust as you like . It is more than that actually the maerm marriages are growing faster than the u. S. And as, many u. S. Brands have found, they want to grow they go international. Lori let me ask you about the u. S. Obviously you know hooters was thrown into the public discussion over the weekend on saturday night live. As you know, hooters eastern had a response to seth meyers joke, adding salads to the menu and changing ink tear i dont remember design of the stores is like trying to attract whim to a sex dungeon playing a dell in the background. Hooters responded to that. It gets to the core issue that hooters is struggling here in the u. S. Hooters is going through a transition. The company was bought two years ago. We have new owners. My partners and i are minority owner of it. Were doing things to add and appeal to more people as well as weve announced, i was just in houston yesterday, we remodeled our restaurant there. It has been open for 20 years. Lori is it working . Are you attracting more women . Are they ordering salads . What is the feedback so far . Yes, definitely. The feedbacks been great. Our online feedback, our Customer Survey feedback has been great. And as we talked about international, internationally weve always had much more of an appeal to all consumers. In each market, weve already added items that are very unique to the market, whether in south africa, brazil or australia. Where were involved in. Lori so when you open a store or the hooters restaurant opens overseas in Different Countries is being billed and sold as an iconic american restaurant, a sports bar with gorgeous women . Well of course were fortunate because of the brand, the brand is wellknown and iconic worldwide. When i went to south africa before opening i didnt have to explain what hooters woos to anyone. We had instant success, instant recognition. What we take for granted here as a sports bar experience is not taken for granted there. Weve had a lot of success in each of the places we entered. But most importantly the reason theyre attractive is the eye merging, the emerging countries, the middle class is growing. In brazil alone, 30 Million People have entered the middle class since 2001. Lori is it more or less challenging to hire servers in brazil and hungary and south africa than it is here for the Hooters Restaurants in the u. S. . We have no trouble finding servers whether here or international. Lori mike pruitt, thanks. Thank you for having me, lori. Lori of course. Melissa coming up which tobacco stocks can light up your portfolio . Morningstar thomas malarkey and Bonnie Herzog join tracy and ashley next. You dont want to miss it. [ male announcer ] this is joe woods first day of work. And his new boss told him two things cook what you love, and save your money. Joe doesnt know it yet, but hell work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. ll start investing early, hell find se good people to help guide him, anhell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense. From td amerrade. Tracy good afternoon, im tracy byrnes. Im ashley webster. With two hours to go stocks are closing in on another record week. The dow is heading for the fourth straight winning week. Were down slightly at moment. How should you play this record market right now . It is a question we hear every day . Big money strategist tom sowanek shares his tips straight ahead. Tracy making money from others pleasures or even your own. Were looking at business of vice, smoking, gambling, pornography. This hour it is all about tobacco. Well look at stocks which light up your portfolio. Ashley i quit years ago. A look at one of americas biggest cigarettemakers, Reynolds American. The Vice President will tell us how the company is transforming itself primarily with Smokeless Products. Tracy but first, top of the hour. Time for stocks as we do every 15 minutes, Nicole Petallides on the floor of the New York Stock Exchange. Hey, nicole. Tracy and ashley, looking at a market coming under pressure. This is market were not used to seeing too much of after 10 days in a row of gains for the Dow Jones Industrials where weve been setting one alltime record after another. Even the s p 500 came within a couple points of its alltime high, closing high that is. The Dow Jones Industrial average sitting around that 14,500 mark, down one quarter of 1 . Also, we should note some of the names that are helping the dow. Bank of america and boeing are doing well. Bank of america working on a buyback. Also looking here at jpmorgan which is a name thats under pressure on the Dow Jones Industrials. Looking over in washington at the london whale and the whole issue with that, couple manied with the fact that you had the stress tests coming out and determining capital payouts to shareholders. The Federal Reserve telling both Goldman Sachs and jpmorgan they must fix those flaws. Goldman sachs today though is slightly higher. You can see actually up slightly. It is up. 8 . That is nearly a full percentage point, up a buck 29, at 155. 31. Those are some names were looking at. Despite the down arrows of course were looking at weekly gains. Every single trading day in the month of march has been a winner for the dow. This will be the first one with a down arrow. Back to you. Tracy nicole, im impressed that the greek is wearing green. Well see you in 15 minutes. Ashley a green greek. Tracy i guess. We have breaking news for you. The Securities Exchange commission announcing that stamford, connecticut beiged Hedge Fund Advisory firm, Cr Intrinsic Investors agreed to pay more than 600 million to settle charges that it participated in insidertrading scheme involving a Clinical Trial for an Alzheimer Drug being jointly vesseled by elon corporation and way act. That was a while ago. 600 million figure is largest ever for a Insider Trading case. Cr intrinsic is a affiliate of steve cohens sac capital. Charlie was all over the story when it broke. Ashley he will have the very latest. The Tobacco Industry is under fire amid higher taxes and more americans quickly. Are the tobacco sellers feeling the heat . Robert gray in the lone wolf silk garr company in santa monica, california. Robert . Ashley, thanks so much. Get a load of this. How much taxes pay into the price of a pack of cigarettes, it varies wildly and widely across the nation. Look at graphic if we can show you. In new york state more than 50 of what you pay for a pack of cigarettes for 10 bucks and change goes to taxes. Most of it is state taxes. That is why is varies so much. California, five bucks and change for a pack of cigarette. Virginia, 29 for what you pay for a pack of cigarette is due to taxes. Were at the lone wolf cigar company. Were joined by david wyss. He is the owner. Coming from lone wolf mcquaid, chuck norris and jim belushi were the founders. Do they ever come down. Theyre busy in their own lives. I try to maintain daytoday operations. How difficult is it operatings as an entrepreneur in the Tobacco Industry typically in a state like california doesnt have the tobacco infrastructure and support in the State Capitol say like down south. It is difficult to operate in the tobacco field, you spend a lot of time in the back room with the cpa, bookkeeper, and your attorneys trying to remain compliant. That is a big challenge for time. Its a big challenge financially. I would do a little more expansion if i could. If i could hire more people and probably create more jobs if i didnt have to put so much energy into compliance. David, we talk about the 30 on wholesale prices of cigars is in taxes. How could this state possibly do Something Better . You say, by maybe not raising taxes as much, they might get more money out of it . I think if you regulated cigars separately than cigarettes and actually put a dollar amount or cap on the cigar, that would be very helpful as they have done in oregon and connecticut very effectively. Even raising revenues. Ashley, as we send it back to you, david here tells me that he has got a 50 cigar in his pocket and 1,000 lighters. Those things are still selling even in a sluggish economic rebound . They sure are. A lot are going to international clients. Davidoff cigars range to 40 and dupont lighter is 1,000 plus we still seem to sell things in this market. People take their cigar smoking pretty seriously. Ashley the rich get richer. Send one of those things my way. Robert gray from santa monica. Absolutely. Tracy so many stocks are trading near 52week highs so are they too hot to touch . Joining us Bonnie Herzog director and senior beverage and tobacco analyst at wells fargo and thomas malarkey, Senior Analyst at morningstar. Bonnie, i will start with you first. Are they hitting peaks . Should people play around with the stocks . I think so. Over the longterm i expect more upside. When i look at companies i cover is i Like Altria Group and lorillard. Al true altria group has more levers to pull, from net price appreciation accelerating this year. I think you will see some upside. I also see them over the long term, they have one of their costs being eliminated. Federal buyout fee is going away at the end of 2014. So youre looking at eps expanding if they let all of that float to the bottom line by anywhere from six to 8 acceleration to eps. Tracy to be clear altria different than Philip Morris international . Yes. Altria, i cover both. Im speaking of altria group. Tracy lets talk a little about lorillard. You worry about them because of whole, they rely on newports basically, Third Largest u. S. Manufacturer. If they come down on that, what happens to them . Correct. I am a fan of lorillard much like bonnie. If the fda were to come down on Menthol Cigarettes it would be quite devastating for lorillard. But i think that is highly unlikely. I think lorillard and Philip Morris international are good values at these levels and also one feather in lorillards cap currently of the major u. S. Tobacco players has the greatest exposure for the ecigarettes, a burgeoning category but only represent 1 of total tobacco cigarette sales. Tracy well talk about ecigarettes later on in the show but do you worry the ecigarettes will take away from the true Cigarette Company . No, people will smoke forever . I think what youre going to see in the next decade i think consumption of ecisg could surpass consumption of traditional cigs i expect existing manufacturers will play a big role in that. Lorillard has first move vir advantage with acquisition of blu. We expect the sector to probably double this year in terms of sales. Im estimating overprobably a billion dollars of revenue. Tracy from ecigarettes . Ecigs. Tracy they have to get in there to stay absolutely. Similar to the Beverage Industry which i also cover. The Energy Category is obviously very small and grown yes, considerably. In terms of where coke and pepsi play a role in that or not this Industry Needs to consider that and play a part in this. Tracy thomas, do you worry about the Regulatory Environment . I mean the u. S. Is coming down on the tobacco companies, on of course, you know targeting cigarettes to kids under 18. Are you worried that will affect sales at all . I think sales, unit sales are likely going to continue to drop 3 to 4 per year for Cigarette Companies as they have since the 1980s. The American Tobacco companies are wellversed in dealing with their regulators and i dont think it is going to be any immediate impact. That said, Philip Morris international, which is. More geographically diverse and sells a much greater volume of cigarettes than any u. S. Manufacturer, i think is probably better suited to face wider regulatory headwinds than the overall u. S. Players. Tracy again, it is about taking advantage of overseas, right . Bonnie herzog of wells fargo and tom malarkey of morningstar, thank you both for being with us. Thank you. Ashley coming up, 100 years after camel cigarettes debuted, Parent Company Reynolds American is transforming itself to meet the changing customer demand. The Vice President morris moore is our next guest ahead. Tracy will a Adult Entertainment star be crossing over to hollywood . Liz claman is live at Penthouse Studios with james deen coming up. See how oil is trading at the break. Up slightly 93. 48 a barrel. Well be right back. Today is gonna be an important day for us. You ready . We wanna be our brothers keeper. Whats mber two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. Some of the worlds cleanest gas turbines are now powering some of americas biggest cities. Siemens. Answers. We asked total strangers to watch it for us. I appreciate it. Thill be right back. They didnt take a dime. How much in fees does your bank take to watch your money . If your bank takes more money than a stranger, you need an ally. Ally bank. Your money needs an ally. Ashley today we are talking all about the big business behind vice. Drinking, smoking, Adult Entertainment and more. Who better than charles payne. Charles, covered it on Varney Company this morning. So what vice angle, charles, of a long list . I covered it last night in real life. No. I, almost all of it did in its open special way but the gambling stuff really hit home because we had jeff mall. If you ever saw the movie with kevin spacey . That was him. Yeah, that was him. In fact kevin spacey was him. And m it guys and they went he was one of the main characters in that, kevin spacey but the counted cards and got kicked out. We have him on varney a lot. It is really amazing, so much of the human psyche, human aspect, psychological aspect of it, especially when it comes to gambling, everyone i think has taken a shot at something every now and then and idea, a, can you win at this stuff . This is one thing i did. I was asking him about, you know, what can we win at, if we go i play blackjack, i swear i do very well but have to play 3 00 in the morning just me and a dealer. Otherwise forget about it. Table full of people, kill the guy at end. Dont take a hit at 19. Take a listen to jeff. I mean, the odds are against them for sure. I mean the other things that theyre saying about legalizing, i. E. , poker i think people can make money on because that is not just inherent advantage. Youre playing against other people as you say other suckers. But in the case of casino gaming which is like the craps and roulette and those types of things, no, you really cant make money on that. Essentially, what i had said is, at, some point he was saying odds are stacked against you when you go to casinos. Ashley sure. They have the advantage but for me it is not necessarily they have the advantage. Maybe mathematically they do we cant control our own greed. I was joking. Go to the bus stop in Atlantic City, tonight, 12 00 at night, 1 00, everyone at the bus at some point they were up. They didnt walk away. Brought 20 bucks. They had 30. Brought 300. They had 450. They were up. Human nature and they walk away. Ultimately the only place you can really win when playing against other poker players and house is taking a cut. Who is the biggest sucker or the worst. If you look around and cant figure out who it is it is you typically. I hate that casino poker. I dont know if you ever play. Really endurance. You have to be prepared to sit there, tracy for hours and hours and hours. Tracy i dont know how to gamble. Really . When i was growing up as a kid i was good at clo. I will have to teach you guys. Three dice. Bring in 100 bucks and i will bring the dice. See you later. Ashley thank you very much, charles payne, after our money. Tracy i know, really. All right, well, speaking of money lets check on the markets. Quarter past, Nicole Petallides on the floor of the exchange. Hey, nicole. Charles payne promise to double my money . I like it. Lets talk about krispy kreme donuts. Krispy kreme is under pressure here. Fullyear profit estimates they are forecasting are below analyst estimates. You can see the previous day, right, a pretty steady day throughout the day. Only to see it open lower today and tick lower throughout the morning and try to make a comeback. The company for the latest quarter, reported lower than expected earnings for the fourth quarter. Coupled with this outlook below analyst estimates. They are facing very high costs they are noting. Also, the opening and refinancing of stores is hurting their bottom line some that is Something Else you would know. Back to you. Tracy thanks, nicole. Well see you in 15 minutes. Ashley on deck, Electronic Cigarettes, we were talking about them, they are burning bright. Njoy ceo, craig weiss will be our special guest next. This is multibilliondollar inentertainment industry. Liz claman will be one of the biggest stars. James deen next. Whats next . Hes going to apply testosterone to his underarm. Axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become egnant, and children should avoid coact where axiron is applied as unexpected signs of perty in children or changes in body hair or increased acne in women may occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. See your doctor, and for a 30day free trial, go to axiron. Com. Ashley the market for tobaccofree Electronic Cigarettes is igniting with some analysts projecting sales reaching one billion dollars or more this year. As their popularity grows so does the call for more regulation. We have the president and ceo of njoy, the leading maker of ecigarettes. I saw you here in the studio a number about months, craig. I was fascinated the way the cigarettes work. Lets get to the headline. The possibility of a billion in sales this year. What is the appeal . Were able to provide smokers what they crave, the things they like about smoking without the things they dont. You have according to the cdc, 70 of the 46 million smokers are looking for, you know, alternative. Theyre looking to either quit or reduce the smoking consumption. Were able to provide them something that is truly satisfying. Ashley these are Battery Powered devices that heat a liquid nicotine solution and smoker is taking in the nicotine vapor. Is it addictive and how does it compare to cigarette smoke . Well, so were providing them with the nicotine, that is the part that smokers, that is the part that they crave that theyre addicted to but were not providing nicotine in combustion. That is how they typically get the nicotine in cigarettes. Obviously they can get nicotine in fda approved drugs like nick codetermine and nicorette. Those are not been very effective what smokers want, smoking experience, hand to mouth and part of the ritual of smoking that were able to provide. Ashley very quickly before i get into regulation, how much do they cost and how long to they do they last . We sell the product for 7. 99. The usage of the product depend on the smoker. So some people get one pack. Some people get up to two packs. Just depends how frequently they use it, how deeply they inhale. Theyre very happy with the experience. Ashley so, get to regulation. The if. Da doesnt regulate them right now but that could change this year and you say the regulation is not a bad thing . You know, njoy supports reasonable regulation of the category so that, people when they go to buy the product have confidence that what theyre buying is what they think theyre getting what they think theyre getting and there is some regulatory certainty in the environment. That is something we support. Njoy is a big fan of regulation. We, right now do a lot of selfregulation in the sense that we require all of our retailers to age verify their customers to make sure that no one who is buying the product is under legal smoking age. Were only interested in adult, committed smokers. Ashley craig, finally Big Tobacco Company is looking for alternatives. Theyre on the ecigarette craze. I imagine your company would be an attractive target for a buyout. What do you think of that scenario . You know, i hope were attractive to our consumers at the end of the day. Because if somebody is interested in us that will be a byproduct of our success. Were very focused on, you know, our mission and our mission is to obsolete cigarettes. We want to do that by providing smokers with a truly satisfying alternative to the product theyre currently using. Ashley certainly appears to be working now. Thank you so much, craig weiss, ceo of njoy. Thanks so much for joining us today. Thank you very much. I really appreciate it. Ashley all right. There you go. The other issue too, we ran out of time, there is effort to try to have them taxed at the same rate as regular cigarettes are and there have been some efforts among some of the states. That is another issue to consider. Slapping on taxes with normal cigarettes. Tracy shouldnt surprise anybody. Ashley no. Tracy it is estimated that the Adult Entertainment industry is a 13 billion business made up of magazines, web sites and movies. All of which need actors and models to fill. Content needs more of them i guess. In a fox business exclusive. Liz claman is joined by the actor who is so popular in adult videos he is crossing over into mainstream entertainment. Liz is at penthouse 3d studios in chatsworth, california. Hey, liz. Tracy, thank you very much. Were now in the hallways of this cavern news 38 how square foot studio. All the cameras ready to shoot a scene right here with this gentleman. He is james deen, one. Rarest commodities in the world. Like a 28 carat, colorless diamond, a porn star who is crossover. Can you come on . Sure. He is a mainstream star, you were in movie the canyons, with Lindsay Lohan. He is doing other things. Do you have wont or other jobs or because you love it . The idea of leaving adult films to leave Something Else is counterproductive that is not my goal and dream. How good is the business for you right now financially . There is a lot of issues because of piracy and stuff like that. All Entertainment Industries are suffering a lot of problems due to piracy. Music, mainstream films, tv, everything. You know, the advertising on tv goes down because of tivos and dvrs, stuff like that. Movies people dont pay to see. Everything has a package deal with lunch box. Stuff like that. The experience is still there with the popcorn. People go to see that. You have nothing but the big blockbusters. Music, everyone makes the money from tshirts and going on tour and stuff like that. The adult film industry, we dont have a tour. We cant go on tour and you know, have tshirts. People will not wear a vivid or penthouse shirt. Some people, less more than others than those two companies. For the most part it is kind kind of impossible to make money other than selling our product. Were like cocacola in that aspect. If someone pirates, cocacola and cocacola was free, cocacola would not make any money. Im sure cocacola would not have the comparison. We have a hard product like cocacola does. If cola given away for free, no one would buy cola anymore. 100,000 plus twitter followers. You were in the movie, the canyons with Lindsay Lohan and Paul Schrader who is a name. Given the, given that opportunity to more mainstream stuff, would you take isnt. I did take it. But more opportunities coming your way because of that . Depending on project. Something, the canyons was made with heart. It was independent feature made for the desire to make a great movie and not be dictated by studios and have to do things. The idea was to make a movie for the sake of a making a movie and make something as good as you possibly could. I would love to be involved in projects like that. I dont want to do like transformers. Getting tweets who is this guy. As we finish up youre a nice jewish boy from california. Pasadena. Your parents okay with that. Yeah. I told my parents i would enter the adult film inindustry. Parents are rocket engineers from that is a, correct . Yes. Mom and dad are proud. James deen, good to see you. Thank you. Good luck with your career thanks so much. He is huge star. I was getting a million tweets. He james deen you can add to his twitter. Somebody with a steady paycheck and pay his mortgage and make a lot of money doing Adult Entertainment industry work here at Penthouse Studios. Coming up at 3 00 p. M. Eastern, fox business exclusive with one of the men who started it all, larry flynt. Iconic founder and chairman of larry flynt productions. You know hustler well through the media. He is the one. He makes big predictions of all kinds of levels of the industry. He is still going strong at age 70. Ashley larry flynt. Great stuff, liz. Woody harrelson was playing larry flynt in the movie. He was great. Should be interesting interview. On deck a record week for stocks. Where will they go from here . Omnivest chief Investment Officer tom sowanick shares his picks. Tracy at the break were down 45 points. Look at winners and losers on the s p 500 today. Directv up almost 6 . Bank of america too up almost 4 . Well be right back. And. Stocks down beheaded for another week. Nicole petallides at New York Stock Exchange the. Everybody was used to the green on the screen. But lets see what happens. This seems the pressure is on. With get going up almost 2 this system up is under pressure the batteries in another work on a new design and they could be flying by next week and with extra Safety Measures with the 787 dreamliner. Tracy the dow has extended the run at 10 but the s p is closing another record high from 2007. There is definitely more upside. He joins us now. University of Michigan Sentiment weaker than expected, inflation picking up, does this were you Going Forward . It does. It is not driving Consumer Sentiment. Congress walked out two weeks ago and let somebody else deal with it. That maybe effecting and idle they get greedy managers are fully invested or retail diana and there is more upside. Tracy you are worried about march 27 budget deadline that affects the consumer. Then maybe . The real surprise to the market if ryan can carve out a deal with obama. That would be a surprise. If not it is more of the same. Tracy any version of combe by yacht would help. To a new high. Then what happens. I think so we keep going all things week to be a 1700 by the end of the year. Tracy that is terrific news. Does japan worry you . It does but in a positive way because the new head said previously they will do anything they can to get inflation and out of japan not just through quantitative easing but Corporate Access government has stated they want Pension Funds to rotate iito other currencies. This is a major major change from december 5. I was there december 6. Tracy that is why you came for these. With the Municipal Bond funds we have the ultrashort bcf. There is a good chance will get at 115 it actually depreciates at 96 today a fairly substantial move. Me up 34 since december 6 with room to go you are a light of sunshine. Ashley more of the business of vice with casinos popping up all over the country like las vegas and Atlantic City. The Golden Nugget casino and hotel how important is gambling to the local economy . It is critical of supplying 34,000 jobs. 27 maybe they will get on the table behind me there spending money and in Atlantic City has a hard time but others are doing pretty well. What fuels the sales higher . 2 billion property, reorganization, the so the smallest amount of money ever changed hands so they are under pressure. Theyre doing everything they can to pump out the numbers. Ashley what is coming up tonight . We will talk to the general manager of this property he also works in las vegas so to make comparisons. Were looking at the dynamics and the government loves have the tax revenue. The best for last. Guess what happened when we played blackjack . I 11,000 but i never played before i sat down to take a rest they helped me to learn and every hand i played i want. Played six in a row and won every time. Ashley the drinks are on you know, how. [laughter] i did not really put any money down. Tracy you were making me nervous. [laughter] the irs is on the way may be another career. Ashley and though willis report tonight live from Atlantic City. By 6 00 p. M. She will be a billionaire. Tracy get a private lesson in blackjack could be helpful. Inhaling profits looking at us Cigarette Market next. [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. Twe price. Invest with confidence. Request a prospectus or summary prosptu with investment information, risks, fees and expenses to read and consider carefully before investing. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Hm i am shibani users she. Seat at the of told lawmakers he does not bear for the person responsibility for the london trade for jpmorgan and she was among several current and former executives testifying on capitol hill today. With another Carnival Cruise ship reporting problems at sea. The legend had technical difficulties prompting them to cancel the trip back grand Cayman Islands now will go directly to Tampa Florida it is expected to dock on sunday will be given excursion refunds and 50 off future cruises and 100 back. This is the latest from fox business, giving you the power to prosper. Ashley how big is the business of tobacco . Reynolds, the maker of camel cigarettes has more than 1 billion last year it is also a transforming itself by building the smokeless brand including a digital cigarette. Joining us now is of Vice President , m. Morris, thank you for joining us cigarette volumes are falling more americans are quitting consumers are feeling the pinch how do position yourself in a challenging environment . Thank you for having me on there are definite challenges with the broader economy but we have done quite well. With 2. 7 less than you predicted wear those volumes falling and are you having to raise prices . With this longterm secular decline for several decades the industry and thus put up the cigarette category with at the r. J. Reynolds subsidiary so those do brands have held together quite well. Looking in santa fe mexico it is that a 20 premium and they see volumes grow weighing over 10 percent so we have seen good results. Ashley you would focus more on those Smokeless Products but i know the markets are growing but will they grow more . I believe they will. Look at the smokeless tobacco category it has been growing about 5 for many years our brand grows twice the industry rate. Is a already out there . Yes. We have been very limited distribution now we really looked at the Electronic Cigarette category and we see a lot of interest by a smokers but not adoption. So be redesign the product to address those issues and we believe we have a product that the consumer is looking for and we will expand as they move through the year. Ashley government regulations, it is a difficult to market the product . Out you get around that . The get traditional tobacco clearly there are market restrictions but if you look at that space that is not currently regulated you dont have the same type of restrictions. Ashley thank you very much for joining us today. Tracy the dow was down 50 points to get a check on the market with Nicole Petallides at New York Stock Exchange. First look dapple with the new phone but up 2. 1 it is up 9. Dont forget yesterday we talked about apple has revolutionary products down the pipeline as well. Sunday that the buy rating but could turn profitable with the smart phone sales. Back to you. The business of vice cigars. How taxes and regulation are impacting business next. More winners on the nasdaq. Apple is up 2 . This is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. From capital one. Boris rns unlimited rewards for his Small Business. Can i get the smith contract, ease . Thank you. Thats three new paper shredders. [ boris ] put em on my spark card. [ garth ] boris Small Business earns 2 cash back on every pchase every day. And now when this fifth defeat and. Cigars are not just for the next guest with a 50 yearold Family Business she left her career as a lawyer and joins us now how taxes are encroaching on the cigar industry. When millions of dollars per year you put out our regulations preventing you from taking it to the next level . Unfortunately they impose serious burdens on Companies Like my own. With 0. 40 on the importation all of the taxing positions are 85 some states create a problem for us and now the uncertainty of the future and the preoccupation is the profit margin is jeopardized by this type of taxation and we have to consider. Tracy at one time cigars were ever wear including Arnold Schwarzenegger and i feel it is not in public is that because they are more expensive and hard to get . From schwarzenegger was at our factory in miami 15 years ago and was an avid cigar smoker then i am not sure about now but smoking bans are creating problems for those due where cigar lovers could then there was of big boom 20 years ago also other Economic Conditions there are cigar lovers out there. Yours are a the one to get the less they live to the contra the issue is cuba it is very similar to that in cuba so the Dominican Republic and nicaragua and those would be in the Dominican Republic where we have our factory cuban cigars are good as well but i am proud of ours as well. Tracy 84 being with us. To circumvent the u. S. To get a cigar. Especially in that part of the world but if you go to but since we will not invest in stocks would but there is a lot of money to be had. A hustler and an icon with various the 100 million was clinton will talk about the business of vice. Cut down to the closing bell is next. Cheryl cassone is here. Dont go anywhere. [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade