Jul 19, 2016|
Full Show 7-19-16 by The Financial Exchange
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I. This is the financial exchange with Barry Armstrong and chunks of you're exclusive look good business and financial news affecting your day you're still leave your world. Stay informed and up today about economic and market trends plus get breaking business news and every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. Well. Hello everybody Barry Armstrong and chuck with you here on Tuesday and good news there's not always mean. Good news for your stock price and of course I'm referring to Goldman Sachs I saw Goldman Sachs a couple of hours ago report earnings that were. Profits for the for seven to 4%. In yet moments ago I look at the stock price down a buck a share some things just don't make sense to talk. Well I think that. With with this the big thing that you do continue to look at when you're looking at all banks. You know you you're still concerned about wrecked it and its potential impact there and certainly that something. Which are by Goldman's guidance that we're gonna be paying attention to and there are that you. Investment banks so they need high trading volumes and they also need a lot of you know IPOs in mergers and acquisitions. And that second piece I think is one of the critical ones there. When we talk about it in front of their earnings announcement is a quote from Goldman Sachs. The firm's investment banking transaction backlog. Decreased compared with both the end of the first quarter of 26 team and second quarter of twenty feet or so ago they don't have as many deals in the pipeline is what that sent. It and let's explain how Goldman makes money because let let's use the Monsanto buyer deal or he could use our. With a big IPO they just land line all line twelve Leo and those guys so it lets use line between Leo because those are two recent IPOs. If Goldman or Morgan Stanley or Merrill. As the lead underwriter on that initial public offering you know they're making a commission reaping the gorillas in their make and commission on that offering. Of anywhere from what five to 10% of the offering amounts of the let's say. They can make it in a couple different places because they'll get compensation first in a lot of cases directly from the firms in that they are involved in either a merger or acquisition or IPO with but also if you're talking about an IPO they gonna song it's their call to make money commit on commissions selling its their clients as well. Because they could sell it out of inventory camp exactly and buy for ten dollar sell for twenty exactly well it yet this this all begs the question. Bill jockey did it leads you is Goldman Sachs goes so goes that hole. And NA activity marketplace. So you have to wonder if Goldman Sachs because they are the gold standard right there they're the number one investment bank in the world. So if they're struggling you have to question mortgage stay it would have been at Citi Morgan Stanley yet and bank and Maryland. Yeah they they'll specialize in different areas Goldman tends to be strongest just done a lot of years you know we talk about health care companies. You know big. You know more more traditional brick and mortar type companies Morgan Stanley tech desk is what it widely acknowledged as the premier technology. Desk as far as IPOs in mergers and acquisitions go but they only governors that specialized in. And all these banks have a venture capital arm as well so. They'll go we end Goldman Sachs might go in and try to think well looper let's use Hoover an example days someday Cooper will go public. Well who knows me you know is there any they're Goldman Sachs is going to be involved in the labor. Going public deal whether it's. They may not be the lead underwriter who you be demo Morgan Stanley. Are those the two banks that are doing the most business. I would guess it you you you may seagate joint. You know drop line and a right there but. Morgan Stanley is effectively Morgan Stanley is is the company that was you know first underwriter on FaceBook first underwriter on Twitter that they're the guys that people go to just because they have such strong track. And they've made don't 5% of the company from their VCR as well and they like to get out from that position right and Gary liquidity so they can move on to the next deal so. If it'll be accuracy but really Goldman Sachs shares trading down. Yet Goldman just to watch talk about how big that VCR has gotten. According to the research firm CB insights and they've participated in a 132 different fund raising rounds in private tech companies since 2009. Now in this is an article that I'm reading here from 2015. What do fidelity. Yeah that's the thing that people Soros how much money fidelity there heavily involved in that it is to a speciality in a lot of the tax stuff they are heavy hitters these days they are. And they're good at it they've got some some people that are very talented. Our let's move on housing because you're not gonna have an economic recovery in my opinion. You're not gonna have an economic recovery in the SEC and big uptick in housing permits and housing starts. Housing starts number came in pretty strong is up with four point 8%. For housing starts like that number. Permits number up one and a half percent still not pulling enough permits. Non permits have lagged starts for a few months now and that is something that does get a little concerning because you can't build a home eventually if you don't have the permit for so. You you had some additional permits that had been up pulled back in I think last fall and early in this year than but it hasn't been a great trend as far as permits go. Over the last two to three months now it's been a little bit disappointing there. It's confusing but it would it demonstrates. It because if you're builder you're gonna pull permits if he can make money. Yeah these guys can't make enough money yet and that's writing a poem permits even though we keep hearing you talk to real estate professional they'll tell yet. Hey demand exceeds supply well. Yeah it may be the pricing isn't there to get the guy with the shovel. Off the ground he's not willing to go in and build a spec house so pricing might be part of it I also wonder we've talked at length about the shortage of construction. And I wonder that plays into his well and that. Companies say look I don't know for me to be higher I don't wanna have this permits sitting here that paid for was that costing them right disease and get the guys to work you just. You don't wanna pay you may have a carpenter that says fly 140 bucks an hour not thirty anymore. I wonder if you just seeing talent moving disbursed to other areas where they're just not interest at this point then maybe I don't know stopped work at at some point either. Everybody's got their price right. So you're gonna get people coming into the construction trait if you pay enough money. The it's if it all boils down to. Two win win these guys' skin can make a profit or not and evidently the profit motivation for a home builder is not there yet. If it was we'd see more permits being built because he talked to any real state professional they'll tell yeah biggest driver on your community this week and when there's an open house yet you'll see him. They got netbooks we've speculated yesterday we are talking about Netflix because we knew they were reporting earnings holy cow they got smoked. They did in the big reason is that their user growth. Was to say the least very disappointing added just a 160000. Subscribers in the US below expectations of 500000 now and one and a half 1000008 international markets below the expectation. A two million abroad this was the lowest subscriber growth that they have had since the second quarter when he fourteens were going back two years now to find the last time that they were growing at this pace. The stock punched in after hours trading down about 15% opened up in a similar range and today as well. What day you what do you think the problems with there the you know I I look at their product and it's and yesterday I don't think there's a problem. You don't think that brought. I don't think there's a problem I just think this one we talked in the salute kind of circle back to we've talked a lot about growth stock and the dangers of the the stock still reported again it's it's quarter that is showing growth it's not kind of group of people wanted based on what they've been doing before. But this was a stock that was priced at 300 times earnings are there's well. If you don't hit everything just how you're supposed to rate that's why you see a 15% dip so. I just struggling international. That's as they and a year ago or just a few quarters ago they are saying they're gonna grow by like three and a half million. And now they come in and their grown adamant but that's a big miss you know it it is a big minutes but. From my perspective you'll get their revenue growth rate there's still grow revenue 20% Euro freedom that is a big number in today's day and age. And from my perspective. You know I take Philippines okay. Looking at the annual data here okay this is a company you know done about eight billion dollars in revenue over the last twelve months here. It's you know the market cap is 36 billion dollars so it's trading about four and a half times sales. You know this is like it's it's still little price immediately it's it's a bad company by any means whose price to. Well let let me ask you two questions. Related to that. Is Hulu a viable competitors yet I haven't tried it. Tucker I don't think so yet now that there adding more caught original content though they're they're offering at Nokia I mean it's it's it's a different platform Hulu was not designed for. The same experience as net I would about in his. Amazon. I think that's right on par with Hulu the quality content on Amazon is nowhere near it isn't known yet nowhere near Netflix but I think it's on par with Hulu dad's company users can be on the Amazon platform at the same time. You know how like Netflix like it might five I've got five user minds. How many hour on Amazon you know it's all according to Hamid prime membership and you're allocated to. Pretty December ones though. I don't think you can share a prime membership I can't do it up and I like is he my prime I'm definitely using your blog item right play zone you can't delegate your prime membership to. A B. On the account or something like that prime you can share with four people for. Well I'd I'd I'd like to note in his agent that it probably see you pick yet accurate data from Amazon or Netflix we will tell you with victories. And others it'll tell you how many people lost what they raised the price memory talk about pricing yesterday. No and but they they don't need dual again that the big thing that matters is going to be the tray in the next few months here and what what happens in one quarter. But you know people like to freak out about this like all of a sudden this tells a different story about Amazon and everything is changed here than about Netflix that everything's changed. Everything has changed companies have good quarters in backwards just like everything wasn't perfect and the day before everything's not falling apart today so. People like to overreact in the stock market that is really the price you pay for owning stocks that you have to deal with that short term fluctuation. If you were a believer in Netflix before this certainly. Again this is not something that is going to dramatically impact the company if you start C 234 quarters then he starts and OK maybe we've got something about one quarter. Doesn't make company. In our next segment we are going to provide you with evidence seven reasons that the US picture is still weak we're talking about the US economy. Jeff Cox from CNBC joins us next on the financial exchange from our insurer match dot com studios. Every time the candidates speak it could affect your bottom line if Piero election Tony sixteen is already effecting you right here on the financial exchange this is the financial exchange radio network. Hi this is very Armstrong from the Armstrong advisory group my team and I spent hours evaluating investment opportunities for our clients because we want to help make sure that you make Smart decisions when it comes to investing many of -- owns several energy company stocks and if you do you need to call us today at 803934001. And ask for our free guide this free guide in detail will explain how changes to this sector can possibly affect your investment strategy oil prices remain extremely low and that's had a huge effect on the global economy call us at 803934001. To get our free guide on energy sector investing and let us help you learn more about the changes that continue to take place that's 803934001803934001. 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Medicaid irrevocable trust some folks are. Apprehensive Todd about transferring highly appreciated assets like real estate or stock into an irrevocable trust because they hear their beneficiaries. Will get the step up in cost basis upon their death. Is that true yeah and it's not true. And it's not true because as many people think when you're transferring to again that word irrevocable. Security gate. And that's true if you didn't make a gift that you would have this carry over basis and you would have lost the stepped up. But the way these trusts or draft of the way we do my Cushing in Dolan is we make it an incomplete gift to the trust. That way you can put up 500000 dollar home that vacation home up on the late in there without paying a gift tax. And because it fits in complete that's how you get it and number one and number true you retain the right to the income from these trusts. That causes you not only to enjoy the income but cost the and that trust to be included in your state when you guy. In the gross estate not the probate estate rate. Thereby receiving that all important step up in basis and for all you folks that means that it eliminates. All the built in capital gain. On the property that you put in there when your children go to some. Get the facts about protecting your assets avoiding probate keeping your money in your bloodline and reducing your state taxes. Request this brand new guide from Cushing handle in the top misconceptions. About Medicaid irrevocable trusts. 8668485699. Pull free 8668485699. Do yourself a favor call and get this free guide right now 866. 8485699. Securities are securities America ink member in PC advisory services are securities America advisors. Are represented our advisory group and securities America companies that. Knowing this there at the charts graphs and numbers all day and just listen to us it's the financial exchange with Barry Armstrong and chuck signed up on the financial exchange radio network. The stock market has been honest hair and that would lead one to believe that the economy is doing to improve or is doing very well right now. Jeff Cox from CNBC. Joins us now and is going to provide us with seven reasons that the US picture is still weak and I read the article. Holy cow I couldn't agree with you more Jeff Arrigo. Thanks very. Yeah there are a number of concerns about their dad I think it's important that investors not get complacent because we have this sort of block pushed her June employment number word whether maturities 7000. Positions created according to the government's counter number of things that don't show up in the government's report that I felt were really important to point out all just a quick laundry list of them personal income tax receipts down eleven point 3% over the pastor. Corporate income tax receipts down 16%. Federal excise tax receipts down zero point 8%. State's sales tax collections are up only 2.5 percent which is the lowest level in two but three years around lowest level Earl holding tax receipts down 17% Joan the jolt reports surfaced that trouble construction falling. And that they wage growth when you computers against inflation rate. Actually was negative in June so still a lot of things to be concerned about this force the jobs climate goes and in the US now. While the one that strikes me the most is corporate income tax right because if corporations. Are paying 16%. Less income tax. That means they're slowing down their trimming mirroring their budgets because they are they're trying to retain profitability and that's it that's a staggering decrease. Yeah it will locate we we know that corporate profits haven't been doing well work on 45 consecutive quarters of the Pennington doing accounting. It's earnings decline and so things are getting tight area we can't we can't just point which companies is that they couldn't. Cut anymore so and so they had to grow their top lines Edward they had to generate more sales and have a hard time doing that. And and and you know would we see with the results or that the income tax receipts aren't doing well there that there is in a boot there's just. Not reflective of a robust jobs climate. Let's talk about that the personal income tax receipts dropped eleven point 3%. I mean it is the north normally you would correlate that with income levels right because of the lower tax rate that means it if he didn't come. Our TV income tax receipts are down 11% that means incomes are down a lot. Exactly and that's showing up in some of the other data again oh when you look with the quality of these jobs that are being created there are basically this collaborative of being created them in low paying industries or hearing about these skills gaps that companies are having a hard time. Finding workers for the higher paying jobs so they're not getting killed. Bored watching the productivity levels as well if there was that we we've been real stagnation as part productivity goes. And again as it is just showing up that. That a concern growing and of course you know what what does this all mean of course it means that inflation is not there that means that the Fed which one of the normalized. Interest rates this year coming get offered to move emergency measures are buying more more ammunition to not do that. Now which would it. It begs the question though why has the stock market rally to such a degree in the last two weeks. Well I hate to say this very and look there's been one big reason that the wondering whatever but he. Product that you just freak out over the breaks it was really counts Sylvia related companies. Justification. First for US and mesh to sell offer or expect that went on to AB CTV. There's been you know and that this was all happening and told people to go out and buy it particularly by its small cap stocks which outperformed. Productive and better than they have been major averages have. So I think you know that's one part of it I think the other part of that hate to say this is that I think we're back to bad news is good music in which we keep waiting to get over that hump went. One good news can be good news put it it just sort of looks like. All of the global. Tumble that's going on and all of the issues that we talked about before with the lack of wage increases and then and it's still the slack in the job market because people believed that the the spigot stricker remain open as force central banks go and I think that's really fueling. A lot of enthusiasm you know we're going to continue to get very easy monetary policy. Very good very it would Jeff thank you very much for joining us which are pre. Our web era expert Jeff Cox CNBC joining us on the financial exchange and you know the thing that. Is perplexing to you in at least the way I was taught I've been doing this you know. Since 1984. And I've been in the market since the seventies. What I've always thought is when you see a market rally like the one we've sat. Yup right loaded I think we're up about 7% year to date on the Dallas via absentee six yeah that. To me historically. There's always meant that good times are coming ahead. Meaning you know you look out to you know 1218 months down the road right the last half of 29 2017. Should be pretty good. That that that's how I was taught that that's that would be the logic behind a market rally in July 2060. So. I'm just gonna take us back in time a little bit. If I can actually get this to work now easy nudity though it is it is not easy to get this to work here we goes on taking us back in time to watch 2007. In Boca. And 2007. Saw a year to date Eric full year gain of four and a quarter percent in terms of god. In terms of capital appreciation on ESP an additional one half you know one and three quarters percent. As far as dividends you're talking about a 6% total return. On the S&P that year in 2007 in 2007. Aren't well that 2007 also. Had a peak on the S&P brown 1515. In mid July before going down to about 1430 so we saw about it. And then it rallied back up over the next couple months there from almost doubled topping. Rated at fifty Ira you up and will promise you look at the the year after that. Market didn't predict anything that was coming so supermarkets not always right. Know that the the market is not always right just like back in the you know early 2009 if you go to the market over the first three months to does not news that. Man this looks bad now well yet be a pretty much you know one of the greatest bull markets in history over the next seven years to this point. So markets can be wrong markets tend to be irrational over short periods of time. And this is what I always caution people on if you say well look it in the last two weeks the market's been bad it's telling me this. I don't know if it necessarily can be viewed is that kind of indicator is markets can get things very wrong over short periods of time look no further what happened right after the break first two days of terrible and all of a sudden we've had a great rally for the last three weeks now so. I tend to look more at the what's the market tell me in the long run. And you know we have seen a lot of resistance in this range yet when he won sixty on the S&P 183185. On the Dow. That's telling me something you might not be might not be quite right there. Somebody made 500 million dollars on Netflix on the declined to talk about that when we return from our insurer match dot com studio. Making your Smartphone even smarter. Dell logo mobile lab by surging financial exchange show in nineteen Jordan who who played store. This is the financial exchange radio. Good work. Hi this is very Armstrong from the Armstrong advisory group I've spoken to you in the past about various sectors of the economy to help you understand the many changes that continue to take place because I want to help you make Smart decisions in your overall investment strategy the energy sector has seen its shares of ups and downs over the last few years and as a country we rely less on foreign oil than any time in the past fifty years but it's come at a price oil costs have dropped significantly and many of the super majors are cutting costs and shutting down wells as they try to outlast other producers if you own energy stocks and you'd like a more specific understanding of this sector call us at 803934001. Ask for our free guide on investing in the energy sector that's 803934001803934001. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- If you're looking for a great deal on a new counter program you should check out the -- rewards program to leader bank is now offering is -- checking account along with the companion savings account and as long as you qualify you'll receive three benefit first you'll get a savings rate of two point 05% annual percentage yield up to your first fifty K all of your ATM fees from you some other banks will be reimbursed and you'll get 1% cash back by using your debit card -- -- credit purchases just sign up for these statement with the account direct deposit at least 1000 dollars per month and -- eight debit transactions per month cult leader bank right now at 8776917900. 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And AT CH or visit us online and ensure a match dot com. Its financial exchange at your fingertips. Thanks succeeding six AB it's that financial exchange on the financial exchange radio network. For this segment of the financial exchanges. Brought you apartheid leader bank it's not too late to get a great rate. I don't hold mortgage leader bank has some of the most competitive rates around call 8776917900. Or visit. Leader bank dot com for more information trivia is brought to you by Arnold's lobster and clam bar located on you threw six in east ham Massachusetts. Arnold as a great rob. Call fives early 2552575. Or visit them online at Arnold's restaurant dot com. Where played trivia for a fifty dollar gift certificate. To Arnold's. Which queen song was released in the year 1976. And became an even bigger hit. After it was featured in the 1992. Film we means the world you know the answer to that one. Well in your true rock and 68680. Is our tech's number. Which queen song was released in 1976. And became an even bigger hit after it was featured in the 1992 film. Wayne's world. Again our text number 68680 the prize is a fifty dollar gift certificate. To Arnold's. Chuck somebody made 500 million bucks yesterday on Netflix stock by shorting the stock and I know a vast in this that path. But tell our audience or teach our audience if you will. About shorting strategy so if you're quite certain. That accompanies gonna go down and now you have. Reason to believe your analysis tells you this stock is overpriced you can short the stock and make a ton of money doing. You know what shorting a stock is not the way to the mechanics actually work. Is you effectively. You borrow a stock from someone else who owns it at the moment and what you do is you then sell those shares back into the market. With a promise to buy them back later and give those shares back to that person that closed out the transaction you pay interest on the shares while they are out in the markets are you are paying for the privilege to bar them. But effectively in the case Netflix you borrowed them you sold them if you sold yesterday sold them at a hundred dollars a share before the year before trading was closed. And today you do if you buy the shares back at 85 neat giving back the person and you've made that different as you've only borrowed the money. Could it really borrow the shares for one night for your interest is very little this that you did it overnight now a lot of short sellers they may have held Netflix short for the last six months and they may have paid four and 5% interest on it so in that case if you paid 4% interest in you made fifteen at least a net eleven when it's all said and on but that's that's effectively how short selling works. It can be very dangerous area dangerous right you can you can lose that 15% you eat you could lose that cluster paying interest that time so if the stock goes up by 15% you close out policy bad pay 4%. Now you're at 19% so you'd actually lost more. During that time who can be very dangerous but as easy with Netflix here you know can actually work out where to. Retirees. Be aware why while the board of trustees of the Social Security trust funds. Estimates. That the 2017. Cost of living adjustment will likely be very small to flat. From point 7%. Down to zero the adjustments are based on increases in the Consumer Price Index you know I've been talking about this for what sixty days now. That we did not think. That retirees. We're gonna get a bump in their Social Security benefits how can you predict that it's only July of 2016. All the calculations are done by the end of September. That pretty much are so we've got about two months left to go. At this point in this continues a trend that really has been present since 2010 the cost of living increases for the last six years now or rather last seven years from 201002011020123. Point 6%. 2013 one point 720141. Point five point 151 point seven. 2016. To zero that's worth thinking right in line so this you know it's very different from what we saw in the ninety's and early two thousands. We're generally getting anywhere between about to happen 3% of the ball beach year. Today you're just not seeing that because the way that inflation is calculated there just doesn't pick it up. And folks the average monthly retirement benefits as of may was thirteen hundred dollars in 2014 the most recent data that I have available. 61%. Of beneficiaries age 65 an old war over said that Social Security accounted for at least. Half of their income and for 33%. Truck Social Security was more than 90% of their income. That is part of the problem the other thing you have to remember is seen got this flat premium or flat. Amount that you're receiving from Social Security yup your Medicare premiums boarded eagle you know every chance they get those things are going up. They do now. I believe that for a lot of people if you are not getting a cost of living increase won't a lot of people have that hold harmless provision were now more than that if you happen to have a view well yes they will. But if you turn 65 next year. If you are a new Medicare for all you get hammered with a hold harmless provision is in Medicare you're not familiar with that. If there is no cost of living increase the premiums for everyone already on Medicare don't go up what what happens is that the people go on a new enrollees. Get him but here's the other thing that occurs is they catch up to you eventually. Because if you right here in the back and what she finally do go oh that's right so let's say you have because I could see a scenario where you get a modest increase. And January 1 of seventeen I wouldn't be surprised if there is little or no increase in eighteen. So then all of a sudden you'd get your 3% increase wealth and son of a gun. You could be in a real pickle when you get. Down the road because they're gonna recapture and recalculate your Medicare part B premium. So that's that. It there's no free lunch there is no free lunch and Social Security. Like today if you're relying on it for a big chunk of your income. You can be and Burry. A big problem. Let's see I have an announcement on be half a liter bank atoms groceries here here is. You know this actually is relevant the long term effect of bricks it. They has yet been felt but if you look closely there's one thing that you can take advantage right now. 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Well the investments in those pension plans they tend to be very income focused because they need to be able to meet requirements each year in terms of how much they pay out. With a problem is that as interest rates go down. It exacerbates the funding problem that we have with a lot of pension plans to have you have a plan it's only 50% funded right in all of a sudden the amount of interest that you are getting on bonds the holding their goes from five to 3%. You you potentially have a problem with paying your people that so your funding level. Not change based both on the rate of return as well as your immediate funding level what you need for that year. You may have to sell some things in order to meet requirements but you may not be allowed to sell certain things because of how the plan to set up. Low rates create all kinds of. Problems which NATO's you guys wants an inside skinny here some stuff that nobody knows Calvin Johnson the patriots. That's coming at them now this is stuff I've never said before there. Apparently doesn't want. This is an opportunity if you work for company and I seen this have happened for it I thought happened back in there. Gosh head speed ninety's but when interest rates drop like this truck if you're in a plant and defined benefit plan now we know you and I've talked about that many employees left. In traditional course and 20% now believe what. But if you happen to be one of those lucky employees buyouts. We knew it would interest rates drop like this you you're buying out becomes much larger yeah right so you may have looked at your lump sum option. Maybe haven't looked at it for a few years in a few years ago your lump sum option they said Tia well gee if you retire we'll give you 700000 bucks. Companies don't communicate that T you have to go in and inquire of the company as to what my lump sum option is. You might have you might your lump sum option now might be a million bucks because no one you're older right your three years older than you war warriors the company and that interest rate is lower and the interest rates or so if you eat it this is just a little advice if you happen to be covered. By one of those plans where you have a lump sum benefit option you really need to make that call because what could happen chuck is if interest rates go up. That lump sum is gonna go down and you be working for free. Right you could end up working for free for 45 years OSHA because you didn't take the lump sum option so. It's it's worth the effort yes that but I think you have to go to you're human resources department is they don't volunteered the information to. It is something new to go to eight charts say I'd like to have a lump sum pension calculation done for me. Yeah it's it's something that you. You've seen a lot of cases that lump sum does increase in some cases pretty significantly. Depending on your age and the specific plan. So definitely something to consider right now if you. Are covered by one all right up next we have two things for him the world have the answer for trivia question. And we will also be joined by David craftsman from the Motley Fool he has two terrific stocks that you're gonna wanna think about. That's next from our insurer match dot com studios. Breaking financial it's. The financial exchange which Barry Armstrong and chuck saga on the financial exchange radio network. If you go the last that protection planning you'll get more than fifteen million results -- post makes sense of all that information could you believe and where do you start Cushing in Dolan the experts and elder law have written a brand new guide top misconceptions about Medicaid a remarkable trust this guy details thirtieth the most common misconceptions about using irrevocable trust to protect your assets did your free guide that 8668485699. Think you have to give up all control think again think you have to ask permission from your kids to use your own money not a chance I think you're going to have to pay higher taxes if you wanna miss duress that's unavailable for nursing home costs nothing could be further from the truth look there are a lot of so called experts out there on the Internet coming to you from all over the world get some information from a law firm that has been helping families like yours -- nearly thirty years called for your free guide today 8668485699. That's 866848569. Million you can also download the guide on our website at legal exchange showed dot com. Hi this is very Armstrong from the Armstrong advisory group I've spoken to you in the past about various sectors of the economy to help you understand the many changes that continue to take place because I want to help you make Smart decisions in your overall investment strategy the energy sector has seen its shares of the ups and downs of the last few years and as a country we rely less on foreign oil than any time in the past fifty years but it's come at a price oil costs have dropped significantly and many of the super majors are cutting costs and shutting down wells as they try to outlast other producers if you own energy stocks and you like a more specific understanding of the sector call us at 803934001. Ask for our free guide on investing in the energy sector that's 803934001803934001. Securities offers you securities America incorporated member and SIPC advisory services offered through securities America companies incorporated Armstrong advisory group the securities American companies are not affiliated an investor cannot invest directly in an index past performance is no guarantee of future results hi everybody Barry Armstrong here for. The financial exchange and I'm joined by. And leader bank has an exclusive. Program for those of you who are landlords if your Cora collecting rent from one attendant for a 101 tenants. Zero it might be something that you wanna look into Jake talk to us about zero how long has it been around. We've been offerings he ran for almost two years now two years and his have been successful spent extremely successful we've. Offered its product to really target hardly in the hours were still collecting checks in paper form in this day and age. And the purpose of zero needs to really bring everything on the line between electronic but more importantly. Had to be said it and forget it so what's Elaine more hazard tenants that up. I'm really there's nothing that needs to be done until the leases over. The rent is automatically drafted from the Tenet's account can you choose the date of the month as it always the first of the month there could be the depth there that's a sign attendant on the fifteenth to defeat the fifteenth of every month yup absolutely so landlord cites the initial date. Whatever day of the month that is. It will be the same date every month that'll be collected how much does it cost the landlord to set this all so it's absolutely free if delaying or banks with us OK so if your idea landlord you have your bank account leader saying you get this is he rents service for when you get for free. That's you have a bank account elsewhere will still provide a service for small monthly charge. And if you ever decide to move your bank relationship over waive the fees that. Pretty pretty simple it's pretty cheap and it's a great product our landlord perhaps leave club. Lot of our it's called zero rent and the website for it is www. He rent dot net. Or you could call leader bank at 8776917900. To learn more 8776917900. Collect your rent electronically makes an awful lot of sense to me the phone number again 8776917900. Or visit. Zero rent dot net. Started. Stocked with Barry Armstrong in juts gonna fix the financial exchange on the financial exchange and radio network. Queen song bohemian rhapsody. Is the answer to our trivia question of data to number nine on the American music charts upon its initial release in 1976. After the song with featured in the 1992 film wings world it made it through the number two spot on the charts. Party unfair if I don't know I never liked Wayne's world. I knew I knew that was coming I didn't see it about I tonight at seven operate there and I knew what was coming so. In any case got from your report did have the right answer their Scott takes home a fifty dollar gift certificate. Arnold's lobster and clam bar located on US route six in east ham Massachusetts. Arnold has a great raw bar including Wellfleet oysters lobster rolls fried clams terrific onion rings. And more call 5082552575. Or visit them online Arnold restaurant dot com. For more information. Joined now by David craftsman for a little bit of stock talk here on Tuesday David thanks for joining us. Yeah David couple companies to discuss here both probably pretty familiar to investors the first one. Is Disney which is obviously had a difficult year largely because of concerns about some of their legacy cable TV products the most notable being ESPN. And the subscriber numbers dwindling on cares if you are bullish on this company or bearish. And actually bullish on business I think a lot of the fears about yes and in the media networks segment over is being. Think those fears are overblown. Let let's be clear yes and it's not going to disappear overnight I don't think it's gonna disappear. Over the next by the Spaniard in the cup and he didn't is exploring mobile and digital audio operator for yet again and that other media network segment. The most recent quarter operating income for that the networks segment was actually up 9% so all is really focusing on. Yet it and those concerned it is understandable that effect and it's still doing OK it's still a cash cow for Disney. In the meantime it happened three other segment that is. Biggio consumer product. And the park resort. Which are all doing very well especially video list that you do about it bill is bad is it about the here and sitting had a really strong slate of movies coming out. Resident here over the next several years as well I think. This dispute is over yet and are distracting wallpaper on that meant that success there were sitting in the other segment for the company. What are the odds that the big properties they own in the film business at this point for our listeners who are familiar with them. Sure will list here we've had utopia. The jungle book of course Star Wars which have numerous he coming out over the next five years. There have been made in yet kick start have marble but think Captain America. Doctor Strange is vendors. The really. This year has been very strong Purdue needs or as a Biggio goes and that the company if you look at the upcoming title the company has an act copier it's a really strong list. Turning now to the other company here electronic arts this one people probably not quite as familiar with to our listeners who don't know them can you give a little bit of background on this company. Yet that this is the video game companies that you might note Activision Blizzard. Electric electronic arts is the competitor Activision Blizzard the company has 300 million registered players than 200 countries that truly a global videogame company. It's most famous four at E. A. SPORTS division there you're talking about game like speak Madden NFL NBA live. Speaking of Disney what what occurred as an exclusive license with Sidney over the next decade to create start video game. We have the battlefront game per console. Like Xbox and PlayStation. The company has a star or mobile game which. In the most recent quarter the average player on this our mobile game played two hours a day or opening week to week. I don't know what that but that note. The productivity of the economy that might be paired for the economy that people are Lebanese game. And that the company make mullet that revenues now through digital. You're talking about in game transaction digital download things like that all but mobile. The company has subscription for console game in the PC game. That the electorate are actually with was struggling a few years back but he knew he you know Andrew will sink in and use 39 years old at the time. He's really turned around accompanying now. Electronic arts is sitting on a net cash there's a two point seven billion dollars. Are keeping. Huge amount of precast. I like electronic arts I think there's still growth for the opera. Very good David thanks for joining us today. Forward David craftsman from the Motley Fool to takers on those companies Disney as the ticker. Now that's a business that seems to have staying power did despite what happens with media. Video gaming. Maintains it's that it doesn't it it tends Lakewood were watching what's going on in the media business rate with. With DVR. And Netflix and Hulu and Amazon in the impact that they're having a company like Disney. Rep electronic arts if you're good at the gaming business which is a really tough business to break into. It it seems like you're you that's that's only in impenetrable market. So it in up to this it's only become a bigger market as well I have a friend. Who was just out at a big convention in. In now Las Vegas EBO conference which is a bunch of new comic books and video game characters and so forth but he he sent me a video. Others note at this it's at one of the big arena is in Vegas. In literally there are 101000 people. Watching these two people competing in a video game and a big score like these it is getting notes now these online leagues and thinks for a video game. Is it 90% men. I don't know if that's. There's a fair amount of a woman who play video games through. There's I mean obviously it's overwhelmingly men but I don't I don't think it's 90% I would says that now. It's do we got so this is average game play this is from me pull up where this is from just to see if it's credible or not. I'd my understanding it was thought of gaming is being teenaged boys. But now and then he's definitely not Tina and also you let in colleges it's a huge problem because kids they're dormant playing videos and here's what we've got the average video game player. Is thirty years old now OK it is a 5545. Male to female split that's it while 5545. The average age or rather absurd 29% of players are under eighteen years. 32% at eighteen to 3539%. Are 36 years old while I'm surprised that I can tell you so I generation missed it. At 56. You know I was in my twenties probably when the first Mario Brothers Nintendo came out. Have played that a little bit and then let it all over a lot of Generation X. who was you know thirteen fourteen years old in the 1980s yeah. Lot of those kids are still playing today even though there in their forties at this point. Thanks for tuning in. To this hour of the financial exchange featuring chuck saga Tucker Silva and Barry Armstrong. From our luxurious insure a match dot com Steve. Hi this is our Armstrong from the Armstrong advisory group my team and I spent hours evaluating investment opportunities for our clients because we want to help make sure that you make Smart decisions when it comes to investing many do you own several energy company stocks and if you do you need to call us today at 803934001. And ask for our free guide this free guide in detail will explain how changes to this sector can possibly affect your investment strategy oil prices remain extremely low and that's had a huge effect on the global economy call us at 803934001. To get our free guide on energy sector investing and let us help you learn more about the changes that continue to take place that's 803934001803934001. Securities offered to securities America incorporated member of the SIPC and advisory services offered through securities America companies incorporated Armstrong advisory group the securities American companies are non affiliated and investor cannot invest directly in an index past performance is no guarantee of future results. 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Match to make sure you're prepared for the. Planning attorney potluck ski from the law firm a Cushing and dole and with your financial exchange quick tip of the day. Today we're talking about the top misconceptions. Related to Medicaid. Irrevocable trust. And taught a recurring statement that I've heard is that once you transfer your home. To an irrevocable trust you could never sell. Is that true it's absolutely not true and very let's think about how long we've been doing this right you know declines we share that they have started out here in Massachusetts. And then decided to move to Florida or to New Hampshire right. They can do it right you start your planning up here you put your house and you may live there you may have been living there for years and anyone I'm wolf. Absolutely that trust can sell the property. You keep your capital gains tax exclusion do you by the new house in the trust exactly you the money comes in the trust after you sell it. Now the money sitting in that trust you have the trustee write a check out to the cellar of the new place in the tape aura around Europe on the I'm on down in Florida are aware you buying it. In the new house comes directly into the trust. And the beautiful thing about that is. Let's say they've done this ten years ago offer except the trust at ten years ago they're not gonna start their five year clock over again most of the new house is protected about a five year look back the new house is automatically just as protected as the old one was so there's no hesitation in selling and no hesitation in waiting to do your. Get the facts about protecting your assets avoiding probate. Keeping your money in your blood line in most importantly reducing your state taxes requested brand new guide from Cushing handle it. The top misconceptions. About Medicaid irrevocable trusts. 8668485699. That's full 3866. 8485699. The yourself a favor make the call right now 866. 8485699. 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This is the financial exchange with Barry Armstrong and chunks of tour exclusive look at business and financial news affecting your day your city your world stage and owned and today about economic and market trends plus get breaking business news every day. And the financial exchange with the very Armstrong and she so. Well we've been trading for about an hour and a half and tougher than five dollars my target right. Brutal 4497. Recruit. Carroll book and hit a 39 are not doing it closer by the U. Target a little bit closer right now as it continues to us like a little bit in early trading today. Markets are largely flat Dow was down three points S&P is down to NASDAQ is down eight. Gold at the moment is at thirteen 31 up just slightly ten year treasury still that one point 57 handle pretty much the same place it's been for the last week. If we got to hit a deal yet on Yahoo! I mean I've been we've been reporting about the sale of Yahoo! for months now. Speculation. That it that it is recently as this morning is the top two bidders are AT&T. Verizon. TPG is a big hedge fund or private equity firm. Couple others that were in the running still haven't seen anything. Anyone who buys this company I've question their judgment. And us if you get it for free fun and he even India question why you do have to question because you look at some of the deals what we're learning news. Day by day we're learning some of the bad deals that were some Myers made one or that company did but what is Tumblr. The blogging service and they bought it for a billion dollars that rained down 60%. Joke it is I mean Yahoo! at this point in a guy. I was a fan of Mercer Mayer right you know you do great work at Google she came into Yahoo! in the first couple years it looked like she was making progress. Three years later and even looked even in tech on the first part of last year I was still trying to find silver linings there. Yahoo! was turned into a dumpster fire. I mean that there is no they re adding an Alaska that field and there is nothing redeeming about this company does it all done. Are we talking young or in general Yahoo! Yahoo! probably should get another new fires up and deeper and get another chance somewhere as I think that she should just because I think that Yahoo! Heidi. Tough road to begin with just because it was such a legacy name and legacy business that. I don't know of anyone could have really revitalize this company completely. Actually made a lot of bad like I remember. Watching her make the deals black doesn't make any sense to me. But I'm not a techie insider selling you know I didn't for voice my opinion but I sure didn't buy the stock now that the problem is just I don't know what you could've done to. Get this company. Moving in the right direction certainly with what she did I don't think that she did a great job by any means but. I mean you got to remember even when she came on in this company had been. Foundering for effectively. You know pretty much 2001 through 2012. There hadn't been any change in the stock price you'd been pretty much the same range. For almost fifteen years. Our local gossip monger is nobody other than mr. Tucker's Silva. He's up on all the latest gossip and Calvin Johnson no no we're we're gonna digress over to Roger Ailes. I've been reading that and to put this in perspective Roger ails the likely or not. What do job he's done. He put fox television on the and he he was the guy behind fox television look what he's bill T is built. A juggernaut. Television stations for the Murdoch family. Any news on whether he didn't handle that sexual or not seeing anything married now. Just a bunch of rumors floated out there last night I'd heard. Pretty loud lot of rumors that he may be let go this week. Murdoch family had enough. Been and it's all. It while. It started with a Gretchen Carlson story right she's the issues in news anchor at Fox News. And she's alleging sexual harassment that they're now that a number of other similar type claims several others coming out of the woodwork so. No news on Rodger real knowledge in office and going numb and I told you need. Pac ten or eleven news at this Toto I don't like big. Aria said it's valid strategy. To Augusta the patriot yes. It's still could happen no no no we're easy. Well you know that he had so many questions that he didn't want anymore pretty much self pity it's developed via that he's done. And other patriots and all the options little. What was Welker yes announcer if I think he's retiring and original Banja he became back last year gala the rams and yet new giant helmet on just try to protect themselves be looked a little ball and a few balls anyway. Fed officials gain confidence that they can raise rates this year at their meeting next week July 26 27 wouldn't be surprised Turks and they said we're raising rates a quarter report that would be surprise. I'd settle I think that you still can't this year I just don't think they will they've been so they'll listed as 60%. Likelihood of the rate hike. We hear that late two years ago all we all know we heard I will repeat on January 1 this year. Four rate hikes I was talking to a paid insider I mean a guy who has launch with these people right. On a regular basis my friend Korean and he sort of Barry they're going to be for rate hikes this year I've talked all these that he goes to an eight. Are we talking earth the year I mean like Saturn takes longer to orbit this and so you technically not wrong. But yeah it's I mean immunity. I'll believe it when I see an end its like Charlie brown and a good you've heard it really is the football edit the problem is at this point. I'm so cynical about the whole thing that I probably going to be wrong is that probably argenbright going now right but it's just. The don't think in July. It's July is that in the September I would rather they go in July though I soda I would rather they do I'd like. Like to see him go in July and I'd like Steve go in December and I'd like to deceive them I'd like to hear that. Dispel this notion that low interest rates are gonna help the economy. And I'd I don't buy it yet 88 I just don't buy it through the market curve ball go by half percent right and yeah do quarter percent in July. An adult you don't have to show your hand right ear have to sit T that's where they may well as though you do you ally guide why does you have to got expectations. I. I'd I'd rather see than to say look based on the data we've got we're going up by a quarter point. And will you know in September what we're gonna do in September and then let you know in December and I'd love to see him go July December. That'll happen. I think that the data that you're getting with inflation showing that it is building at this point there's a case to be made for again. I sit beginning here want to do likes what I'd like to see I stand by that I don't think you're gonna see. What is this guy do the ever the story in the Wall Street Journal a baseball scouting director is going to jail for four years forty years with what. Like if baseball is no crying in baseball. Well when you're hacking computers there is it's not hacking if you worked for the guy before and knew his past. As well was yeah. The wise he ordered jail perform years. Because that's what it's it's illegal it's still technically hacking it is unauthorized use so it is hacking. But pretty much the guy worked for the Astros went to go work here rather I'm sorry the cardinals cardinals. Had you know under the guise passwords they went in and pretty much went into a rival teams database and word you know messing around in there for. So the cardinals went into the Astros current yet the scalp from St. Louis Cardinals. Goes into the Astros databases. And legally and unbeknownst to a guy who had the password greatly the owner of the right yeah it was the owner in the counseling Love Boat the guy's name was Jeff you know lose those schools. Go to and gets them scouting insights right. And he's going to jail for warriors can't do that would schmuck. That's going to put it up that day should. This this has the feeling to me as Cris Carter would say this seems to be a fall guy. I can't imagine I think. You got to sit there been like your baseball Scott how much money in a baseball scout me. Underground what do you mean not ballpark it's I don't know not even close religious scouts and baseball when he 5000 dollars. Well it depends a high ranking you know you're you're scouts and baseball make peanuts ruin what little is ever wants to be one who's hot hockey skipped right. Yet night nightly talk you talk about low level scouts or even as a scouting director of scouting director probably making 7580. I know guys it scout the American hockey right do you go to you know they don't watch Providence or go to watch. You know pour a nerve the HL's plan right. And his guys are making in the first ball to get an expense package rates all their mileage and their billion per Diem for meals and hotels and and there on the road. All the time. Those guys live culture it's forty to fifty weeks a year. Not for hockey net for hockey they start up in relief yet for hockey there they don't start up you know because their American right so it's it's. You know late October through. You know may the enemy that fear that the that there are on the road but they go to you know they'll go to. 56 games a week yet in the American. And they are making a decent wage I agree that yeah their make and you know 10020000. A year. Most scouts in most sports make. Peanuts just because everyone wants to get in now. Saying that an NFL like cup for college I would think in Peter Owen at and it felt and I got an apology is minimal real. College most of you get out what is what they call these graduate assistants that oftentimes are paid almost nothing X two free food isn't that interesting that the worst sport for monies hockey. Yet they Peter scouts more than. NFL which is the best sport from Clinton both ripped the rich isn't NFL the richest were here is it based pride baseball. No NFL and it really the biggest TV deal. And if you look it's not just the the scouts that make very little. If you look for example what happens in Minor League Baseball how much those top players are paid. They get almost nothing. It's you insane I double A ball you actually have there is a a number of different congressional inquiries that are going on at this point as to whether or not the pay rules violate minimum wage laws and if you like. They were all kinds of issues there the amount that they are paid here these are the salaries if you are on a short season single a team yeah it's 1150 a month. But when I was the and we went out like all right here that this is if you're playing the Lowell spinners for example look at. 1150. Dollars a month does that mean do they give you housing company get a per Diem. Okay the per Diem is up 25 a day for road meals if you're home you don't get that. So where do you okay. For low single way it is thirteen hundred a month ago with our post guys under contract with the year and I know it's a separate contract and until you end up on team's forty man roster. It is a completely separate contract pulpit so appear in a forty man roster but you're playing double play your pain in a lot of times you will have a higher salary than that but it's still isn't necessarily the Major League minimum. If you are in Tripoli and still again futures on a minor league deal when he won 58. It goes up to 2700 a month in the third year so you figure here's the other thing these are six months seasons Cyril and making. Six to 121000 dollars a year in salary. You can't live on an avenue of the job legacy. You're not making a whole lot of fewer career minor league. Is the Humana merger going to happen I don't know where to talk about that believe me it's a Humana Aetna. Merger wouldn't talk about that very topic when we return to the financial exchange from our insurer matched constant. Those candidates who watched the polls we need to watch the markets find out how one can impact the other throughout all of election twelve and sixteen right here fits the financial exchange on the financial exchange. Radio network. If you go the last that protection planning you'll get more than fifteen million results hi supposed to make sense of all that information could you believe and where do you start Cushing in Dolan the experts and elder love have written a brand new guide top misconceptions about Medicaid a remarkable trusts this guy details thirtieth the most common misconceptions about using a remarkable trust to protect your assets get your free guide that 8668485699. Think you have to give up all control think again think you have to rest permission from your kids to use your own money not a chance I think you're going to have to pay higher taxes if you wanna make duress that's unavailable for nursing home costs nothing could be further from the truth. Look there are a lot of so called experts out there on the Internet coming to you from all over the world gets an information from a law firm that has been helping families like yours for nearly thirty years called for your free guide today 8668485699. That's 866848569. Million you can also download the guys don't know her website at legal exchange showed dot com. Hi this is very Armstrong from the are strong advisory group I've spoken to you in the past about various sectors of the economy to help you understand the many changes that continue to take place because I want to help you make Smart decisions in your overall investment strategy the energy sector has seen its shares of ups and downs over the last few years and as a country we rely less on foreign oil than any time in the past fifty years but it's come at a price oil costs had dropped significantly and many of the super majors are cutting costs and shutting down wells as they try to outlast other producers if you own energy stocks and you like a more specific understanding of this sector call us at 803934001. Ask for our free guide on investing in the energy sector that's 80393400180393400122. He suffered through securities America incorporated member and SIPC advisory services offered for securities America companies incorporated Armstrong advisory group the securities America companies are not affiliated an investor cannot invest directly in an index past performance is no guarantee of future results. If you're looking for a great deal on a new counter program you should check out the -- rewards program that leader bank is now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three benefits first you get a savings rate of two point 05% annual percentage yield up your first fifty K all agree -- fees from these and other banks will be reimbursed and you'll get 1% cash back by using your debit card on visa credit purchases just sign up for these statement with the account direct deposit at least 1000 dollars per month and do a debit transactions per month cult leader bank right now at 8776917900. To learn more about the consumer rewards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume rewards will learn zero point 10% annual percentage human savings -- member FDIC. 2016. Has been a volatile year so far for the market and the bricks and vote has added to that volatility hi this is very Armstrong if you're concerned about the potential impact of that vote on your portfolio call my office right now at 803934001. And make an appointment for a free financial review of the current uncertainty in the global market makes you uncomfortable that give me a call 803934001. In all -- your current portfolio for free that's 803934001. The appointment will take about an hour but wouldn't you give up an hour of your day to make sure that you make better informed decisions call me today and set up your appointment to qualify for this free consultation you must have a minimum of 250000. Dollars in invest able assets and you must book your appointment within the next thirty days 803934001. That's 803934001. Securities are the securities America incorporated member camera SIPC and advisory services offered through securities America advisors incorporated Barry Armstrong were presented their Armstrong advisory group the securities America companies are unaffiliated. This news financial news and what it means you lose it's only right here on the financial exchange with Barry Armstrong and chuck saga on the financial exchange radio network. America wants to know. And our listeners in Connecticut definitely one it is the Humana and Aetna merger. Ever gonna happen they've been quite like cat dolls. They certainly have and the share price has really moved a whole lot. Really you know recently at all it and you thought it was really gonna happen in the -- the prices would be significantly higher than there are now. They would be right now at this trading at was a 114 dollars a share pretty much. And you know you still do have some significant value on the table. At this point if that deal work to be going through so. For whatever reason. Analysts are discounting this deal have actually kept happening now even though there are a lot of signs pointing to the fact that pretty good chance you'll see approved. May I date it's perplexing isn't it because again it comes back to unity can say well Wall Street fraud. Now in big big big IP yeah that's it they're not wrong the date they rarely are because they're betting money. True they rarely wrong but when they are they tend to be wrong being an Olympian ago Obey men and boys Glor then. What the heck is going on Starbucks I'm never going into Starbucks again based on the story Starbucks just became grows. Wait they just that they're they're trying to clean things up adult teeth. The let me tell you what happens at starts and I did not notice so in the past I've been. This I've spoken of Starbucks in an admiring told. That turns out to their biggest problems is that one people Belinda Starbucks and they watch porn on the Wi-Fi and two. Homeless people basically live out of the Starbucks and that's where they take the bad thin it or Wi-Fi service than. Everything else is just gross went. And the port problem from Starbucks perspective because usable bandwidth. On the you know it they're paying for all that bad when it's also done so I I I get it from which you just don't think that we knew locked in this are alike totally do you do in terms like me using it. But pretty much anywhere there's Wi-Fi and someone's watching porn. If they're saying it's a bit probably old insurgency problem pap have the people in Starbucks or report on a that's that's the Starbucks. Pat with my problem probably like it if it is highly short Starbucks stock up. There's going to be honestly like I wouldn't be surprised if you see it was legitimate material impact because of this. He just had no idea. You're gonna have to explain this next to me and Adam and it FaceBook is going to pay Internet stars for live video. Help me. So FaceBook as built day and on line video streaming service called FaceBook line which is pretty much anyone anywhere and you broadcast themselves. Over FaceBook any other FaceBook user can go watch that video. To try to. Drum up attention thwart the paying some of the you know stars and YouTube and other places like that. To do videos on FaceBook I've produced them and put on the live videos. So users people that are on YouTube and it did there already have a market presence and Facebook's doing this what to drum up. The true authentic look it's not so much to draw up content I think that initially. Something that the new but I think it's more to showcase hate you can do video you can make your videos and shoot and shoot them live here just like these people so I think they're really trying. You just put out the words saying hey this is something that we do and if you want to be involved in producing videos. We're pleased that we're actually board yeah we're we're resource where we can market for yet and we can provide that platform. Trivia is brought to you by Arnold's lobster and clam bar they are located on US route six in east ham Massachusetts. Arnold has a great rob mark including Wellfleet oysters lobster rolls fried clams terrific onion rings and more. Call 5082552575. Or visit them online at Arnold's restaurant dot com. And here is that trivia question is related to Brian may now Brian may. Ease the queen guitarist and he turned 69 years old today that's why we're doing trivia about the band queen. Brian me. Who's obviously pretty good musician. Has a Ph.D. In which subject is gonna surprise if you're not a huge rock and roll fan you've you know not in not to know the answer to this. But wait subject. Does Brian made guitarist from the rock and roll band queen in which subject. Does he have his Ph.D. are tech's number is 68680. Wii play trivia. Every day here on the financial exchange in today's winner. Will be awarded a fifty dollar gift certificate to Arnold's lobster and clam bar and you get a Ph.D. and rock and roll. No news and not not to the estimate talent under and that's not what Brian mis Ph.D.s it it's not just the I that if it. That's a hint it's a hard question is not a heart I got to scale of one to ten that's going to be like in your mind. If you're big queen fan you probably known I'm gets near seminary a TV and made on that very impressed keep in mind we've only ever had one question that has stumped our listeners know. Xbox Xbox one bass hits the stores on August 2. Well I I busted ass and I'm not a gamer how significant story uses it is it's somewhat of a story is the newest iteration of their Xbox one it's a little bit slimmer it's white looks to me by Microsoft made by Microsoft the end of that that the big thing though is they have another project in the works it's code named project scorpio that is going to be out. At the end of next year which is going to be the next full upgrade. Of there are of their Xbox system so they've gone through three to this point the original Xbox Xbox-360. Now the Xbox one now they're coming out with another one at the end of next year. Which is expected to have some pretty impressive features as far as it's graphical capabilities. You know all of the things you can do as far as networking in downloads and so forth so there may be a lot of people. That put off buying one of these new versions of the Xbox one in favor of what's coming next about eighteen months from now. Is this enough to move the company like Microsoft Merrill we saw on Nintendo get moved big time but Pokemon. Not at the same thing for a couple reasons the first being that Microsoft has a much bigger than Nintendo is not going to be that steep of revenue increased. The second reason being. They've already got a product out there it is just going to be more peace and add on yeah demand on time. Hey up next we're talking about. Fiat Chrysler you think you're having a bad day I'm more beat the CEO Fiat Chrysler today right back from our insurer match dot com business. You gun Barry Armstrong stuff financial exchange on the plane and you exchange radio network. If you're looking for a great deal on a new counter program you should check out the zoom rewards program to leader bank is now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three Democrat. First you get a savings rate of two point 05% annual percentage yield up -- your first fifty K all of your ATM fees from use in other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for the statement with the account direct deposit at least 1000 dollars per month and do a debit transactions per month cult leader bank right now at 8776917900. To learn more about the zoo Murrow awards program at 8776917908776917900. Member FDIC equal housing and zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume we're awards will learn zero point 10% annual percentage yield on savings balance member FDIC. Hi everybody very are strong here from the financial exchange and I'm joined by. At leader bank. SBA loans. Boy they've been around for awhile but not everybody takes advantage of them and very few people know how they work. They Sperry yes we we to a lot of small business lending its leader bank. Where preferred SBA lender which really means we can maker decisions in house you can quickly within a couple weeks. So we've been very active because a lot of small businesses have been growing in this economy so for example we have a special right now. Which is small business loans up to 50000 dollars were offering a fixed rate of three point 99%. Fixed for four years and no closing cost. It's been a very popular product but more importantly we're really helping small businesses who need to grow and expand their business. There's a lot of uses for the small business loans and give you a couple of examples. We recently helped a restaurant in Cambridge that was doing so well they actually need to expand in this space next to work. We help them local law firm. Who needed a line of credit to help expand its business sure we help today on local trucking company by a couple of new trucks because they're expanding it so there's a lot of different uses there's usually no limitations on and is longs for a good corporate use but it's 50000 dollars you pay it back over four years he interest rate is three point 99%. Exactly. With no closing costs it's a pretty attractive program and it's our way to Kenny work with the local community and build small business relationships. Very good folks that's actually from leader bank if you wanna learn more about SBA loans called them all free 8776917900. Three point 99% to pay it back over four years. 8776917900. Told Fareed. 87769. Point 7900 or check them out online at leader bank dot com. If you go the last that protection planning you'll get more than fifteen million results priceless makes sense of all that information could you believe and where do you start Cushing in Dolan the experts and elder -- have written a brand new guide top misconceptions about Medicaid a remarkable trust this guy details thirtieth the most common misconceptions about using a reputable truss to protect your assets get your free guide that 8668485699. Think you have to give up all control think again think you have to ask permission from your kids to use your own money not a chance I think you're going to have to pay higher taxes if you wanna -- duress that's unavailable for nursing home costs nothing could be further from the truth look there are a lot of so called experts out there on the Internet coming to you from all over the world gets an information from a law firm that has been helping families like yours for nearly thirty years called for your free guide today 8668485699. That's 8668485699. You can also download the guide on our website at legal exchange showed dot com. Hi this is more bureau CEO of insured match and proud sponsor of the financial exchange with Barry Armstrong you more likely use one of the major travel likes to book hotel rooms rental cars or airline tickets they're great one stop shopping sites that are convenient and helpful. Well and chairman at the same thing except we provide you with multiple insurance quotes from the top rated insurance carriers to help you shop in one place for all your insurance needs hole today at 84499. Match that 84499. Match let us review your current auto or home insurance policy and see if we can find you a better deal. Even if you're comfortable with the policy you have it's always a good idea to get a second opinion you may be surprised with what you find all right now and we'll send you our spring insurance guide for pre. Complete with checklists for your home and cars. The guy we'll help you decide if you need to make any adjustments to your coverage call us at 84499. Match that 84499. And they TCH or visit us online and ensure a match dot com. Get your thoughts and questions seem instantly takes the financial exchange at 6868. This is the financial exchange on the financial exchange radio network. During queens early years Brian may and this guitar attempted to earn a Ph.D. In astrophysics. From London's imperial college. He finished most of the studies by 1974. But abandoned the program as mean began to experience international success pictured it. However he went back to imperial college in the year 2006. And his doctoral thesis was finally approved in the year 2007. Winner on this was Bernadette from Worcester Bernadette takes only fifty dollar gift certificate to Arnold's lobster and clam bar located on US route six in east ham Massachusetts. Arnold has a great raw bar including Wellfleet oysters lobster rolls fried clams terrific onion rings and more call 50 wait. 2552575. Or visit them online at Arnold's restaurant. Dot com. Federal authorities are investigating whether Fiat Chrysler automotive. Inflated sales reports adding to the mounting pressure on the Italian US auto maker sharpening scrutiny. Of the way that the car companies report their monthly volumes you know. What I don't know these car companies. What wait what what is happening with them it it makes absolutely no sense what we're seeing it's pretty much across the board. You've got VW with all kinds of emissions things Nissan had its thing. Now you've got Fiat Chrysler would write what is going gone. Well here's here's what they're doing and cook the books is I and I did note saying you know I studied today industry but not as carefully evidently position. When they report auto sales which we report here on the show we got we we report this data on the show. They are reporting when they deliver and sell cars to the dealer not wood chuck exotic buys a car not would Tucker Silva by car. But the report when they deliver those sixty cars that you see you see them getting delivered to the dealers is a coming in on tractor trailers. You know that all gets done at night and yet. Then they bring him in on a tractor trailer that night and they count that as a sale even though it was a neat consumer sale. And what they're asking the dealerships to do. Is say there in their bribing the dealerships right they gave this one guy twenty grant that would give get 20000 dollars to say that there were forty additional sales. I mean it's. I think I was Smart enough to know act that trouble what are you doing. What are you do that's how much pressure thereon to hit their numbers. Used to see the same thing build better products in our company called Polaroid yes I can tell you stories about that yet I have some insiders gave me information in this go back to the eighties. But anyway. They were based belief would you call pumping the numbers yeah I mean that was it was put in the books file cut because of books at the better and better free sport. If it happens. But it should be aware that. Not not a good story you're. Financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets in our friends at the insurer match agency can prepare. A personalized plan to get you the best coverage at the best price college her match at 84499. Match 544. 99 match many of our listeners on a hole in one or two cars if that describes you you're the perfect candidate for free consultation. To make sure that your property in your family are safe and properly covered. We'll also dig out all the discounts preferred customers like you can qualify for. Call insure a match to compare multiple rated carriers and 84499. Match at 844. 99 match insurer match works with the leading carriers in the industry like our bella and Plymouth Rock many more. They're also license for all types of insurance and they continued time stress and money with just one phone call in one relationship. Call today eat for Ford 99 match or go online and ensure a match dot com. Jokes. Which is in New England based company. Is getting 8225. Million dollar cash infusion from the very large company called. Celgene Celgene. Must think that doubts as a heck of a drug in the pipe. They must think they have something that is up pretty promising there is jealous is going to be getting that 225. Million dollar payment up front. Option. Is to expand that payment up to 2.3 billion dollars over time Celgene is it's cancer drug. It is yet it's all about amino therapy so effectively trying to train the body. To fight and attack tumors. And Celgene is taking a 36 million equity stake in joust and they're also getting options and they have some profit sharing it's gonna be going on as well here. But clearly Celgene and this is a Smart company you know very involved in this area to begin with. Sees something that they like here. You know the us now this story I must confess. Soccer Silva came to me it assessed to be number one story. News this incident in in the top. Top twenty. Massachusetts is not happy itself Taxol no factual errors. They can't beat you TV I gotta go across the important again. I I never did it again this that is the big thing for you guys renewed on a lot of line you know public option of tax. I never in if you talk to the retailers all they did anything he had put him. I heard people going around buying you know big item like a team the York. Cultures something like that they would wait until this whole new rage yet yelled a big purchase item. That might not be just drove to rocky. Because. If and I thought I needed is that they do tires the car putting up to New Hampshire well like I need to donut tires. I just thought that the I would hear from the retailers like your brilliant fills in Jordan at center I'm happy about it. I'm sure that some bomber a little displayed as you said I think a lot of this just moves money around aggregate I don't think it necessarily increases demand. One less thing it's it's one dates if if it were every day at the you can probably have something but it's one day. It's moving it from it the Davis this is crap this is preventing an argument with my wife. Which one. Of the though I have to go shopping this week and I need divisive and does it you know there's sales tax Holiday Inn and then they're gonna match the sales tax holiday so it's really. You know on a savings so much money on the way I always love his its its its 20% off we get it still means 80% on them yet they. Hello. And it doesn't mean it's free I I just couldn't careless that the it that there have a sales tax in that the not so. GameStop shares are going nuts thanks to Pokemon ago I did they cannot go by chuck that we don't talk about Pokemon that's your fault and I just feel the need to bring these stories because I note to sell its. It's not because of anything I'm doing all it knows that the world is ending years drag me along with its. So it's on at least him I guess I'm going down with the ship but GameStop shares are soaring. Because apparently there these things called Pope engines which I don't know what you do there's probably some guy named Jim that's playing Kokomo on but apparently 462. GameStop stores are. Hope it gyms which is where people go to work out their poker monkeys apparently they can't work out until. Such losers. An ounce on the new leveling up or your Pokemon I don't I don't go to real gym I was at the gym at 5:30 this morning don't go to Pope Jim I was not him. That's what happened soccer a on the road to being a partner. I don't I don't planets yet you don't play it now this is the first step Tucker's the only guy I know he giant joins a low cost just right planet but yet. Doesn't go and and it twice a week and Andy now about three times a week you know. His costs are visiting right now if you give Beagle and the Ritz Carlton and in his costs for does it would be a yeah. Well it's it's the opposite of the approach tactic when I play golf my approach there as it is many balls possible to get as we're going to be too it's like look I don't wanna be hitting seventy shots like that like in a 120. It's much better. The problem of golf is all lost balls or people always ask me what you think this course and of course that's what the would look the exact same as the other courts around here. And up next will be joined by our friend and not true or not said from. In Bloomberg intelligent very talking about EMC now I know you many you've been waiting for this interview because you either work for EMC your loved one worked for EMC. Can you give you the inside skinny. On EMC they just reported profits and give the earnings announcement information but I think a lot of you are concerned about the dole deal. What's the status of that when's it going to occur is it going to occur that's our next topic from our insurer match dot com studious. We're giving you the business. There's the financial exchange with Barry Armstrong and jokes done well on the financial exchange radio network. Hi this is our Armstrong from the Armstrong advisory group my team and I spent hours evaluating investment opportunities for our clients because we want to help make sure that you make Smart decisions when it comes to investing many of you own several energy company stocks and if you do you need to call us today at 803934001. And ask for our free guide this free guide in detail will explain how changes to this sector can possibly affect your investment strategy oil prices remain extremely low and that's had a huge effect on the global economy call us at 803934001. And get our free guide on energy sector investing and let us help you learn more about the changes that continue to take place that's 803934001803934001. Securities offered to securities America incorporated the Murphy and SIPC and mice were services offered through securities America companies incorporated Armstrong advisory group the securities America companies are not affiliated an investor cannot invest directly in an index past performance is no guarantee of future results. 2016. Has been a volatile year so far for the market and the bricks -- vote has added to that volatility hi this is very Armstrong if you're concerned about the potential impact of that vote on your portfolio call my office right now at 803934001. And make an appointment for a free financial review if the current uncertainty in the global market makes you uncomfortable that give me a call 803934001. In all review your current portfolio for free that's 803934001. The appointment will take about an hour but wouldn't you give up an hour of your day to make sure that you make better informed decisions call me today and set up your appointment to qualify for this free consultation you must have a minimum of 250000. Dollars in invest able assets and you must book your appointment within the next thirty days 803934001. That's 803934001. Security suffered -- securities America incorporated member of the -- PG and advisory services that -- securities America advisors incorporated Barry Armstrong were presented -- Armstrong advisory group in the securities America companies are unaffiliated if you -- the last -- protection claiming you'll get more than fifteen million results -- -- -- make sense of all that information could you believe and where do you start -- -- -- the experts and elder -- have written a brand new guide top misconceptions about Medicaid a remarkable -- this -- details thirtieth the most common misconceptions about using a remarkable trust to protect your assets did your -- guys at 8668485699. Think you have to give up -- control think again think you have to ask permission from your kids to use your own money not a chance I think you're going to have to pay higher taxes if you wanna -- duress that's unavailable for nursing -- costs nothing could be further from the -- look there -- a lot of so called experts out there on the Internet coming -- -- from all over the world gets an information from a law firm that has been helping families like -- for nearly thirty years called for your free guide today 8668485699. That's 866848569. Knowing you can also download the -- on our website at legal exchange -- dot com. It's not too late to get a great raid on a whole mortgage leader bank specializes in a wide variety of purchases and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing call 8776917. To 900 that's 8776917900. Or visit leader bank dot com. Member FDIC equal housing lender and the lowest number 449250. Subject credit approval leader bank a step ahead. Your dream home is within reach with a Jumbo mortgage loan from leader bank they're jumble loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases and refinances all originations are managed by your bank's local underwriting process in teams for additional information call 8776917900. That's 8776917900. Or visit leader bank dot com. Minarets PSE equal housing lender stimulus number 449250. Subjective credit approval leader bank a step ahead. Security securities America ink member in PC advisory services are securities America advisors. Are represented on our advisory group in the securities America companies. Battery. And chuck. Phillips Gerri this is the financial exchange radio network. We are receiving reports. That EMC's. Shareholders have approved the merger or acquisition by Dell we're now joined by and non Srinivasan. From Bloomberg intelligence hi and on Dario. Our culture our reports true that we're hearing about EMC. Yes so Bloomberg News. On my turn on indicates that about 98% of voting holders. Castro ten favorite video. And did they deal is effectively. Done and pending. Approval from Chinese triggered it. Chinese regulators. Why would why would Chinese regulators have the final say. So not that they're any final say. In women a merger of this size and the level of complexity haven't that are different. Holding companies in different parts of the world. That have different ramifications so. In effect to build China is emerging with the empty trying to. And to be expanded to each of those would fall under the purview. Independent regulators have Crosby's. Parts of the world they have slightly different food safety operating philosophy that came back. I Chinese and it looks set and in the US regulator looks better than you negative in the credit. Different regulators take a little longer or less time. To prove he. Approved the process spread effectively. Each of them takes citizens separate look at the process. And on how big accompanies this going to be when the merger's all done. So that effectively this is going to be from from a revenue perspective. A complicated company as much as it is so large so. EMC effectively has about 25 or so billion of revenues. Included in that however is Vivian medium where portion which which makes sense seven billion. And so and and Dell before he would win. Public or private excuse me. Adam had about sixty billion and that sort of are now under 57 or so billion so when you put all that people just to get there. You have a 57 billion company. Buying. 25 billion company by taking seven billion dollars out. And how much better than using. So dissident says it says Tibet that another group great questions that leverage of the company's going to be substantial. And if you look and dead though he is I'm doing right now and a on their undetermined all it is this is the large. You can. And it is an awful lot of debt in. In knee. And that that that brings up questions and on glee like how did they compete with. Could there going to be competing against IBM Hewlett-Packard. So the idea. That this could be a decisive transaction is that he's he's one piece of the equation nick bell if financing portion of it is another piece of the equation. From a competitive standpoint it's you know the traditional companies that they're going against which is that. I yam. More on the services side but also teach B enterprise which is slimming down and read and also denoble on the Asian front. Now so. And how how much debt will this new company have relative to their competitors is that that's it competitive disadvantage if you're carrying on. That transaction value alone is accused of art take BP billion when it was announced as if the pick a VP and a half billion or so. I'm the effective. The man being added it is. Substantial was sort of in had thirty plus billion range from a financing perspective in different. Sections. Are dead so part of it is. He's issue emptive. Loans and bonds by AB that'll holding company tamale. Part of me to ease financing to put them in all the VMware. Economic interest part of it is peaking off. Parked in the yen to you business such as the sulfur business and security cyber security piece of the business sir so that are different pieces of that of that puzzle which we have written about reduced. Which makes it complex so. Yes the debt load and high number one of the things they've done has been effectively able to do when it went private is. He did sort of this team Spain data leveraged buy out and then substantially reduce their debt to internal cash flows over the course of the next couple years. That's slightly. Don't curse here again. What that leads to NYNEX question when you say that that IE I interpret reducing internal cash flows is being. You know you fire by two workers indeed and where appear in New England where there are literally thousands of B and C employees. Will it what is a new company do that how did they treat those Ian C employees which what is sure it should you be polishing up your residence. This absolutely battered to be blunt yes. This is a structural change in that both grill and you have appeared going through. It's not pretty when they're going to it. It to use. That that church is one piece of equation. That built our both people use and storage systems have been pulling pretty substantially. And a market is moving to a plough which buying. Hardware very very differently than companies have done in the past. So all of these. Structural changes under way both in the in corporate America as well live and consumer America and globally to be quite frank. He's offending many of the legacy technology companies cannot seeding this distribution PM Dell along asking who would each be. Is seen this with maybe some. You he would edit the yet a year and that there at the company's total crossed the border you're seeing that in different companies have been responding differently DB can detect the it's BS split itself up and split it tells us to lend itself down. Ian Ian bell worn again. Themselves out of the privatized so that they can reduce a little bit of cost and make this transformation part of the public got. Putin. God and on thank you very much for your honesty in your information we appreciate it. A non Srinivasan from Bloomberg intelligence I wanted to reiterate. What we just learned their truck this is really important. You know we're we're a part of the country. Where there are thousands of people and thousands of families that are going to be impacted. By this merger Ian C shareholders have approved the acquisition says this is a done deal. And if you work for EMC if your spouse works for you see your son your daughter works for Ian C there is a possibility they could lose their job. You've got that possibility out there and look as as we were just talking about the amount of debt this deal. It's not small though and you do wonders in this I tell you save the money fire workers in this in history. Is that going to let this company be effective and in efficient down the road it's it's a real question I think in a low margin industry. And you know I I have some questions as to down the road what it means for the even hurt people who survived any job cuts that are coming in the near future. You know you'll get three to five years and you wonder what this company will. Laying in united a lot of people are sent adults and log in and we'll talk to my boss. The problem is your boss. She may not know what's really she probably doesn't might not be your boss wants this deal goes through right and and if you're. A younger worker in you don't have much tenure. Play act I think he you look at it now right away if you're not gonna get any kind of a severance package. If you're an older worker lets say your in your late fifties in Europe early sixties you've been there for 2030 years. That you stick around. I I I would if I if I'm on 56 years old at my company was being acquired. I would stick around and and look for package. I can tell you that Roma talking to some people close to the situation. There have been some well workers in fairly senior positions that have been taken packages moving down. Already before the who's who's done. Well those are apt after it was announced that those are one off straight those are guys and our these are people who are not nobody's the correct they're big they're high end. And they they know so they're packing their bags in there yeah they go to work for company your competitor. Something yeah I'm talking about the mid level employees right. You know me make sure your right your resonate is polished up and ready to go what do thank you all for tuning in to this hour of the financial exchange. Talks not a talker so the very Armstrong from our insurer match dot com Steve.