Published January 26, 2017
DISCLAIMER: THE FOLLOWING "Cost of Freedom Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cost of Freedom Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.
Bradshaw's prediction: Apple (AAPL) up 30 percent this year and doubles in 2-3 years
Tobin's prediction: "Fantastic Four" makes Activision (ATVI) "surf" up 30 percent
Gary B's prediction: Best Buy (BBY) is a great buy; up 30 percent by end of year
Scott's prediction: Psychiatric Solutions (PSYS) gains 40 percent by end of 2007
Pat's prediction: Pacemaker Medtronic (MDT) on pace to gain 20 percent in 1 year
Cavuto on Business
On Saturday, June 16th, Neil Cavuto was joined by Charles Payne, "Be Smart, Act Fact, Get Rich" author; Laura Schwartz, laura.gather.com; Pat Powell, Powell Financial Group; Tracy Byrnes, New York Post business writer; Gary Kaltbaum, Kaltbaum & Associates; and Stuart Varney, FOX Business correspondent.
Neil Cavuto: Hillary Clinton says soaring obesity rates are a major factor in skyrocketing health care costs. Alli, the first over-the-counter pill approved to fight obesity, hit store shelves on Friday. If it works, will this cure what ails America's health care system? Let's get the "Bottom Line."
Stuart Varney: This isn't a solution to America's health care problem, but it is a form of preventive medicine. We do have a real problem with obesity. If this pill helps, then it's a good thing. What's wrong with it?
Tracy Byrnes: I don't think a pill can make you thin, no matter what they say. I think it comes down to what's in your refrigerator. Health care costs are going up 8 percent a year. Alli is preventive medicine, and I think we should do more of it. I think companies need to put employees in charge of their health care costs.
Neil Cavuto: Less fruit for you… more cannolis.
Charles Payne: First of all, I disagree that drugs can't make you thin. Crack can make you skinny.
Charles Payne: But the reality of it is that this is enabling bad behavior. I don't think the drug maker has high hopes. I don't think it's going to be a big winner.
Stuart Varney: It's flying off the shelves already! If you eat McDonald's every day, and take this pill, and do whatever you do to get rid of the waste…
Charles Payne: There's a huge curiosity factor.
Neil Cavuto: That's the problem. You go potty for a long time…
Gary Kaltbaum: I think Americans are going to think they can get a box of Hostess Twinkies, eat ‘em up, take a pill, and lose weight. It doesn't work! There have been different kinds of pills out for years. They don't work! Obesity is a huge problem and we need to get a handle on it.
Neil Cavuto: Laura, let me ask you. Stuart raised a very good point that this pill is a start. I know when the stomach stapling started in this country, we criticized it for a long time. But then, we saw diabetes go down and some of the long-term effects outweighed the initial issues people had with the procedure. In other words, it has lead to improved health. Could this be the same thing?
Laura Schwartz: Well, this is no magic bullet, but when it's taken with the right diet and exercise, it can lower your weight. Two-thirds of the country is overweight or obese. We spend billions of dollars on weight-loss methods. But, this will not completely fix America's health care problem. Millions are uninsured or underinsured.
Neil Cavuto: You would welcome this pill?
Laura Schwartz: Absolutely, because there are people who are dying because they're overweight.
Neil Cavuto: So here's the deal: Democrats are in favor of Alli; Republicans oppose.
Pat Powell: You know, this is not an answer to America's health care problems. It's great for the company that's producing the pill. But, Americans are fat for two reasons: We over-eat, and we under-exercise. No pill is going to get you off the couch and on the treadmill or get your hand out of the potato chip bag. This little pill can really help if you're ready to make the change yourself.
Stuart Varney: It's ironic that Hillary Rodham Clinton rants about the "greedy" drug companies. But, along comes a "greedy" drug company with a pill which may help to do something about the obesity problem. And here's Hillary saying, "Oh those drug companies. They're so awful."
Laura Schwartz: But Stuart, I think we should embrace those companies that contribute to society because you know what? A healthy society is a safe society.
Stuart Varney: Hillary's answer is going to be the trial lawyers, who will take the fast food companies to court.
Neil Cavuto: And they'll be skinny trial lawyers…
Tracy Byrnes: The problem is we're so quick to put everybody on some sort of medication, from our kids to our fat people. Let's just get to the root of the problem and try to fix it. Get people pro-active! Give them financial incentives to go to the gym. The employers should get more involved in preventative measures.
Pat Powell: A tax credit for my gym membership would get me off the couch.
Tracy Byrnes: Don't you think that will get you off the couch? That would get me off the couch in a heartbeat!
Neil Cavuto: Laura, you're saying make it illegal to have junk food, right?
Laura Schwartz: No. This is a cultural issue in this country. We've got to take the junk food out of the schools. A ton of kids are overweight and about to get diabetes type-2. They are too young!
Neil Cavuto: Gary, years ago there weren't pills for cutting down your cholesterol or blood pressure. There are now, and those pills have saved a lot of people's lives. I think this pill is a good thing. It can help with the obesity epidemic.
Gary Kaltbaum: I'm sure it's going to help to some extent. But, as Tracy said, there needs to be a lifestyle change. Some people sit at home with their clickers… Sometimes I bring my TV clicker to work by accident!
Gary Kaltbaum: You have to exercise more. You have to eat less.
Neil Cavuto: No one is dismissing that! Charles, I think what we're missing is that people are smart. They know you can't be sitting with a box of Ring-Dings on your lap and popping these pills. I will try it, but the fact is it's not realistic.
Charles Payne: Well, give people credit, but I think we have to be honest here. Any diet pill that tells you it has to be taken along with exercise… I know it's going to flop.
Charles Payne: I know it's going to flop. When it says take this pill, eat right, and exercise, it's not going to work. And that's the bottom line.
Pat Powell: It will accelerate your weight loss. That's what the company says.
Charles Payne: I know. And there are products out there already that say the same thing.
Stuart Varney: Don't reject help just because it comes from a "wicked" drug company.
Neil Cavuto: Well, you buy the drug company's stock and you buy Scott tissue, because they both go together. I digress.
Head to Head
Neil Cavuto: Mitt spent $12 million. McCain $8 million. And so far, Fred Thompson hasn't spent a dime in the race for the White House. So, how is Thompson beating both men in the latest polls? Is Fred Thompson proof that spending all that money is a waste of time? It's time to go "Head to Head."
Tracy Byrnes: Absolutely. Al Gore hasn't even announced his nomination. He hasn't spent a dime. And, he could win tomorrow.
Neil Cavuto: I don't know about that.
Tracy Byrnes: I think he could come close! People are starving in this country, and the politicians are spending millions of dollars. I've heard talk that the candidates are going to buy Super Bowl ads. It's unnecessary, and I think the American people see through it all.
Neil Cavuto: What would be wrong with advertising during the Super Bowl?
Tracy Byrnes: It's an exorbitant amount of money.
Neil Cavuto: There ya go.
Stuart Varney: What's wrong with the campaign Thompson is running? He's not running a campaign. He's being very, very smart. Everybody else is spending money hand over fist, while Fred Thompson sits back and accumulates money and waits to pick his moment.
Neil Cavuto: Fred Thompson's one of the few people who can afford to do that.
Charles Payne: I don't know that any of these candidates have really hit our hot buttons yet.
Neil Cavuto: I think it's too early to hit the hot buttons.
Charles Payne: Still, none of them have captured our imaginations yet. There are holes in all of these candidates. None of them are making people excited, except for maybe Obama.
Neil Cavuto: I betcha Abe Lincoln didn't excite folks in his day. Bill Clinton didn't excite folks in the early days of his campaign.
Charles Payne: I saw Bill Clinton on C-SPAN two years before he said he was going to run. He was intelligent. He was articulate. And I knew he was going to be the next president or come close.
Neil Cavuto: Did you really?
Charles Payne: I did. He had the "it" factor. I think Thompson has it, too.
Pat Powell: I think you're underestimating the power of television. Fred Thompson's an actor. He comes into our homes every week. He plays a good guy. He's a leader. But, he's reading words. That is not who he is. We like the character, but we don't know the man.
Charles Payne: But, conservatives are attracted to who they think he is.
Stuart Varney: Conservatives want a winner.
Neil Cavuto: Let's get back to the money issue. And Laura, if you could just pipe down a little bit… If Thompson were to galvanize, would it be a lesson to the future that campaigning so early is unnecessary?
Laura Schwartz: Money should be taken out of politics, but the money is there. The vast majority of Republicans aren't all that thrilled with their options. So Fred's been able to come up under the radar. Fred Thompson raised a couple of million dollars the day after he formed an exploratory committee.
Stuart Varney: I think Thompson will run, but I don't think he can win.
Charles Payne: He's going to run and he's going to raise a lot of money.
More for Your Money: "Fantastic Four" $tocks!
Neil Cavuto: The "Fantastic Four" hit the big screen this weekend. But, you don't need to head to the theatre to see some superhero stocks! Our guys have four, fantastic stocks for you. It's time to get "More for Your Money."
Charles Payne: Freeport McMoRan (FCX)
* Charles owns shares of this stock.
Tracy Byrnes: Manitowoc (MTW)
Pat Powell: Compton Petroleum (CMZ)
Gary Kaltbaum: J Crew (JCG)
FOX on the Spot
Tracy Byrnes: Mortgage rates rising; housing slump moves into '08
Pat Powell: Tax cuts saved economy; tax-hikers lose in 2008!
Laura Schwarz: Obama's "Crush" marries '08 candidates to YouTube!
Gary Kaltbaum: John McCain not raising enough cash; first to bow out
Charles Payne: CEOs continue to be good guys despite bad press!
Neil Cavuto: Read my lips, tax hikes ahead!
Forbes on FOX
Flipside: New Liberals in America: Corporate CEOs!
Rich Karlgaard, publisher: I don't think there is any question that the country is drifting left right now. In 2008 it may take a sharp left turn. If you're a CEO of a large public company you don't want to paint a target on yourself. You're going to move with this. And in two areas, healthcare and the environment, you're seeing a lot of big companies moving to Democratic positions.
Mike Ozanian, Senior Editor: We're talking about large corporations and socialism doesn't hurt large companies as much as it hurts small businesses. Large companies would like nothing more than to drive up the costs of going green and other regulations because it pummels their smaller competitors.
Elizabeth MacDonald, Senior Editor: Big business wants a seat at the table so they can blunt any effective regulation on their own profits.
Quentin Hardy, Silicon Valley Bureau Chief: It's about the corporate lobbyists trying to control congress. They'll go the way the political wind is blowing.
Mike Maiello, Associate Editor: Corporate America is joining the American left in the reality based community. In a lot of ways corporations have always been very progressive.
Victoria Barret, Associate Editor: If you have a halfway decent marketing department at a large corporation you're going to be green these days. Green has become the new red, white and blue. The real point is that we've seen this before. Corporations are pragmatics. When the Republicans seized control of congress money flowed into the GOP coffers. This year the Democrats will get more money. It's not because CEOs are more liberal, it's because they're pragmatic.
In Focus: Best Thing for our Economy: More "Mr. Moms" In America?
Michele Steele, Forbes.com Reporter: Fathers Day is right around the corner and I think fathers should celebrate mom's rising earning power by staying at home. The fact is, more women are getting MBAs than men and more women are getting college degrees than men. And the way that you're going to raise quality in the workplace is by having more women in the workplace, not less.
Victoria Barret: More women may be getting their MBAs and going to college, but the fact is, they're still earning less than their male counterparts. Women with the same skills and the same job as men earn on average 80 percent of what their male counterparts earn. This is the ugly truth. So for a family, this may not be the best economic decision.
John Rutledge, Forbes Contributor: I'd like dad and moms to stay home. And if they do, it's because we have enough investment to bring high speed communications home so you can stay home and work effectively. It's the only way we can grow the world without fighting over oil.
Elizabeth MacDonald: Women do make a lot less than men. But I think this would be fun for dads, they could put child psychology on their resume. But this wouldn't be more productive.
Quentin Hardy: My wife did stay home many years with our kids. This is a really hard job! It would be a wonderful thing if dads stayed at home because it would raise the status of raising good children.
Will Oprah Be Le$$ Powerful If Obama Loses Despite Her Support?
John Rutledge: I would advise Oprah to never endorse a candidate under any circumstance. Her brand is the most powerful brand in the world. It means honesty and caring about the viewers. She shouldn't risk it on any politician.
Mike Ozanian: Obama is an extremely intelligent and charismatic guy. I don't think losing is the problem. If he does something horrible like stealing, that would be a problem, but that's not going to happen. I think he is going to help Oprah's brand.
Michele Steele: What Oprah is doing here is drawing a line in the sand. A lot of her viewers are not going to cast votes for Obama. I don't see how she can't take a political hit from this.
Rich Karlgaard: Oprah has made a fortune selling yo-yo diets and new age mush to desperate housewives and introducing us to Dr. Phil. If she can survive all of this, she can survive Barack Obama.
Victoria Barret: The man who came close to bringing Oprah down was author David Frey. He wrote this book called A Million Little Pieces which Oprah basically put on the New York Times best seller list and it was a phony! She defended him initially and her audience rebelled and she apologized. Did it hurt her ratings? No.
Informer: $uper$tar Stocks
Forbes Celebrity 100 List: If you want to hear what each Forbes panelist had to say about their stock pick, click here.
Elizabeth MacDonald: Disney (DIS ); Johnny Depp, "Grey's Anatomy" and Oprah.
John Rutledge: MS India Investment Fund (IIF ); Angelina Jolie
Mike Ozanian: General Electric (GE ); Matt Damon
Michele Steele: Phillps-Van Heusen (PVH ); Kate Moss
Our Cashin' In crew this week: Wayne Rogers, Wayne Rogers & Co; Jonathan Hoenig, CapitalistPig Asset Management; Jonas Max Ferris, MaxFunds.com; Dagen McDowell, FOX Business News; Adam Lashinsky, Fortune Magazine; and Cheryl Casone, FOX Business News.
Stock Smarts: No More Spanish TV?
Governor Arnold Schwarzenegger telling Latinos if they want to succeed in the United States they should stop watching Spanish-language television and learn English. Is he right?
Adam: Not only is my governor right, but he is showing what a leader does. A leader says what he thinks, even if he knows it is going to be an extremely unpopular point of view. Hispanics need to learn to speak English. Arnold did as an immigrant. My grandparents did. That is the way to succeed in the United States. This is what Gov. Schwarzenegger is saying and it's an important message.
Jonathan: People should watch whatever they want on TV. It's in people's self-interest to learn English. If you are illiterate, I don't see how you can do much except pick cabbage or wash floors. Learn the language and you can live the American dream. Immigrants need to realize that if they want to make more money, they have to speak the language.
Wayne: Arnold is right and he does come with some credibility because he did come from Austria and he did have to learn English. Anyone who is going to succeed in any country should be well versed in that language.
Dagen: What Arnold said also carries a lot of weight because his signature line is "Hasta la vista, Baby." To Adam's point, Arnold is doing what no other politician will do, by saying what immigrants of this country need to hear. If immigrants learn to speak English, that alone will help fight the anti-immigrant sentiment that is developing in this country.
Cheryl: There will also be a lot more economic opportunities for this population if they do learn English. They can do better business and be more of an integral part of the country. When I go to France, I speak French, even if it isn't the best. I don't think Arnold's comment will be good for the GOP however, as immigration becomes a big debate.
Jonas: This comment will hurt with some Hispanic voters. Some are conservative and they will want the boot straps mentality where you have to take care of yourself. Gov. Schwarzenegger is bringing up some good points in that the government has limitations as to what it can do.
Adam: Immigrants need to be informed. We're not just talking about any immigrant group; we're talking about Spanish speakers. This is unique in the history of the United States as all other groups that came here had to learn English. Spanish speakers can succeed without speaking English. Spanish is taught in the schools. You can vote in Spanish. Is this a good thing? I don't think so.
Jonathan: We make it so hard for immigrants to get here; I don't blame them for not learning the language. By basically forcing someone to become a criminal because they want to come and get a job, of course they want to hold on to their identity. It's exacerbated by the public schools where multiculturalism is celebrated and everything is offered. As long as we accommodate multiculturalism, who should learn English?
Adam: I celebrate multiculturalism and I'm sure Schwarzenegger does too, but he's not saying you have to learn English, he's saying I think you should learn English. That is an important difference.
Wayne: Language solidifies a nation and identifies a country. We go to other countries, so we should learn to learn their language.
Seven Percent Mortgages: Death Knell for Housing?
Mortgage rates continue to rise. The 30-year fixed rate even approaching 7 percent. That's historically low, but still a number we haven't seen in years! Will 7 percent simply kill the housing market?
Jonas: Mortgage rates are historically low, but prices are based on even lower rates we had a year ago. A few months ago, you could get a 30-year mortgage around 6 percent. Now it's approaching 7 percent. We're already in a slow decline in housing. This new rate will only accelerate it. Housing is priced by how much of a monthly payment you can afford. People can basically afford 10 percent less house because of this adjustment in rates. We will see the average price of a house down 10 percent.
Adam: The important fact is that historical rates are about 8.2 percent and we're well below that. Although, it seems in the last few years that everyone was in the housing market and that's not true. The housing market is not dead. It will be fine.
Wayne: I predicted the housing market would go down 18 months ago and it has gone down. Right now, we're in the second stage, which is price adjustment. We're getting ready to enter the foreclosure stage.
Dagen: It is so unnerving that we saw record number of homes entering foreclosure in the first quarter of this year. So now there's this spike in interest rates and tighter lending standards by the banks. It's going to be really painful in just a matter of months.
Wayne: That's my point. It's going to get a lot worse.
Jonathan: If you bought a home you could afford, and the value of your home goes down 10 percent, are you going to take a stop loss order on your home? You've got to live somewhere.
Cheryl: No one talks about existing home sales. When interest rates go up historically, values come down. That will spur more sales of existing homes. That's another part of the market.
Wayne: You have to have buyers. If there are no buyers in the market, these prices are going to adjust 25-30 percent at some point in time.
Adam: It's only in the last handful of years that people bought and sold homes because of mortgage rates. That's historically not why you buy a home. You buy a home because you're moving; you need a bigger house, etc.
Is America $exist?
Is Katie Couric is firmly entrenched in last place because America is "sexist"? That's what CBS President Les Moonves says. Is he right?
Adam: I don't know if people aren't watching Katie Couric because she is a woman or not, but to suggest there is no sexism in America in politics or business is absurd. Of course there is sexism. Anyone with a wife or a sister who is in the business world will tell you that it is not as easy for a woman. Women have come a long way, but it's not equal.
Dagen: Sexism has nothing to do with why her ratings are so low. It's not that people don't want to watch a woman deliver the evening news; it's that they don't want to watch that woman deliver the evening news. Katie Couric spent 15 years developing her cutesy persona on the "Today" Show and then overnight she expects people to accept this new gravitas and seriousness. Americans are not buying that and not tuning in.
Adam: So Matt Lauer would have failed just as much if they had put him in?
Jonathan: The majority of the people on this show are women and they are very accomplished and intelligent women. Would any of the very accomplished women on our panel want to be President? The answer is no. That's the point. What does this mean for Hillary? I don't think any rational woman would want to be President. It's not a question of her talent or her ability. I just think being commander in chief of all men goes against a woman's value of hero-worship.
Dagen: You are out of your tree!! What are you taking? Just because we don't want to be President means that a woman shouldn't be President?
Wayne: A woman has run Israel. A woman has run England. A woman can run the United States. This idea that people aren't watching Katie Couric because she is a woman is crazy. You can get a green gorilla to deliver the evening news if the people have confidence in the news and that person. Les Moonves was just wrong in picking her.
Cheryl: Les Moonves is just trying to cover himself because his broadcast is in the toilet. It has nothing to do with Katie Couric.
Jonas: There are some problems with Katie Couric on TV, but there are bigger problems with those like Jonathan who is living proof of sexism today.
Jonathan: There's a difference between being the host of a TV show, or a congresswoman or a judge and being President of the United States. I can't imagine Hillary will ever get elected.
Best Bets: Gift$ for Grad$
Wayne: Barnes Group (B) (Friday's Close: $34.19)
Adam: Allscripts (MDRX) (Friday's Close: $26.44)
Jonathan: Mitsubishi Financial Group (MTU) (Friday's Close: $11.62)