Where the stock goes from here the Investment Committee is ready to go. The Halftime Report starts right now. Welcome good to have you with us on this thursday our Investment Committee at the table, joe terranova, steve weiss, the najarian is here, megan chu with Wilmington Trust and also with us our senior economics reporter steve liesman. We begin, where else, where the story is stocks following the worst day of the year. Big concerns that the trade war is threatening to push the u. S. Economy over the edge so weve got 60 of the s p, a little more than that in correction territory. Thats 306 out of 505. What should you do in the market today . Today you should do nothing. What are you doing . Im looking to sell further on strength, and heres why. I think the situation continues to worsen and the goal line continues to be pushed out a lot of people took comfort in monday when the president tweeted about delaying some of the traffics some of the tear i was until december i actually tho
Michael farr, ceo of farr, miller and washington. Mr. Wonderful himself, kevin e oleary himself the markets have turned south. The Dow Jones Industrial average is down 158 points about 3 4 of 1 . The nasdaq is your big decliner. That is down 1. 73 well get more in the tech weakness coming up the yield on the ten year note is in fact inching a bit higher today. John najarian you pointed out before the show that there is a lot of things we can point to but that euro was weak what is the root cause of what we are seeing today . I think some of the comments from draghi and some of the things that have been going on over seas, not the lack of growth i know kevins going to hit on that for sure because thats one of his big points about why you should be invested in europe, but i think people just decided to take a little off at the end of the quarter here, kev i think the europe spillover came over into our markets, brian, because buy room or sell news, it was virtually assured perhaps wells
45 days. Have we gone too far too fast. We would agree. Currently it trades around 20 times ebitda and linkedin was originally approached to be taken out around 17 time answer ultimately got taken out at 21 times. Once something is broken, the bankers and the companies will look at 30, 60, 9day moving day averages before the news was broken. And if you look at those averages and put a 40 premium on that youd get to 25, 26 taken out. Thats 3 to 7 upside but the risk that you alluded to at the beginning. Show if something came out that a process was busted, was never occurring in the first place drop down to below 18, a 25 drop so we dont like the risk reward setup. Sure feels like were walking toward a deal but youre not convinced its going to happen. Yeah, were unclear is a deal is about to happen but more of what were trying to quantify is what is the risk reward for investors and whats the upside. The other thing we pointed out in a note yesterday, whats the boards responsibility. So