Freeport-McMoRan Copper & Gold Inc. (FCX) Thursday, August 27, 2015

$10.19
2.27 (28.66%)

FCX is undervalued compared to its Price of $10.19 per share, has below average safety, and is currently rated a Sell.

Company Information
Business: Freeport-McMoRan Copper & Gold Inc. (FCX) is a copper, gold and molybdenum mining company. Its portfolio of assets includes the Grasberg minerals district in Indonesia, mining operations in North and South America, and the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC).
Capital Appreciation
Value: Value is a measure of a stock's current worth. FCX has a current Value of $15.24 per share. Therefore, it is undervalued compared to its Price of $10.19 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.
RV (Relative Value): RV is an indicator of long-term price appreciation potential. FCX has an RV of 1.08, which is fair on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.
RS (Relative Safety): RS is an indicator of risk. FCX has an RS rating of 0.79, which is poor on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the VectorVest database. VectorVest favors the purchase of stocks of companies with consistent, predictable financial performance.
RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock's price trend. FCX has a Relative Timing rating of 0.30, which is very poor on a scale of 0.00 to 2.00.  RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00.
VST (VST-Vector): VST is the master indicator for ranking every stock in the VectorVest database. FCX has a VST rating of 0.76, which is poor on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price.
Recommendation (REC): VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. FCX has a Sell recommendation. REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.
Stop (Stop-Price): Stop is an indicator of when to sell a long position or cover a short position.  FCX has a Stop of $12.40 per share. This is $2.21 above FCX's current closing Price. A stock's Stop is computed from a 13 week moving average of its closing prices, and is fine-tuned according to the stock's fundamentals. High RV, high RS stocks have lower Stops, and low RV, low RS stocks have higher Stops. In the VectorVest system, a stock gets a 'B' or 'H' recommendation if its Price is above its Stop and an 'S' recommendation if its Price is below its Stop.
GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. FCX has a forecasted Earnings Growth Rate of -7.00%, which VectorVest considers to be very poor. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, as shown weekly in our investment climate report.
EPS (Earnings per Share): EPS stands for leading 12 months Earnings Per Share. FCX has a forecasted EPS of $0.35 per share. VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.
P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings. FCX has a P/E of 29.11. This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the VectorVest database is 37.04. P/E is computed daily using the formula: P/E = Price/EPS.
EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. FCX has an EY of 3.43 percent. This is above the current average of 2.70% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price).
GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. FCX has a GPE rating of -0.24. High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 3.28%, the operative GPE ratio is 0.11. Therefore, FCX may be considered to be undervalued.
Dividend Information
DIV (Dividend): VectorVest reports annual, regular, cash dividends as indicated by the most recent payments. Special distributions, one-time payments, stock dividends, etc., are not generally included in DIV. FCX pays an annual dividend of $0.20 per share.
DY (Dividend Yield): DY reflects dividend per share as a percent of Price. FCX has a Dividend Yield of 1.96 %. This is above the current average of 1.49% for all the stocks in the VectorVest database. DY equals 100 x (DIV/Price). It is useful to compare DY with EY. If DY is not significantly lower than EY, the dividend payment may be in jeopardy.
DS (Dividend Safety): DS is an indicator of the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future. FCX has a Dividend Safety of 44 which is poor on a scale of 0 to 99. Stocks with DS values above 75 typically have RS values well above 1.00 and EY levels that are much higher than DY.
DG (Dividend Growth Rate):   Dividend Growth is a forecasted annual growth rate of a company's dividend based on historical dividend payments and dividend predictability. It is a subtle yet important indicator of a company’s financial performance. It also provides some insight into the board’s outlook on the company’s ability to increase earnings. FCX has a Dividend Growth of 18% This is above the current average of 1.49% for all the stocks in the VectorVest database.
YSG (YSG-Vector): YSG is an indicator which combines DY, DS and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. FCX has a YSG rating of 0.93 which is fair. Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for below current income and long-term growth.
Price-Volume Data
Price: FCX closed on Thursday, August 27, 2015 at $10.19 per share.
Open:FCX opened trading at a price of $8.63 per share on Thursday, August 27, 2015.
High: FCX traded at a High price of $10.48 per share on Thursday, August 27, 2015.
Low: FCX traded at a Low price of $8.56 per share on Thursday, August 27, 2015.
Close: FCX closed on Thursday, August 27, 2015 at $10.19 per share. (Close is also called Price in the VectorVest system)
Range: Range reflects the difference between the High and Low prices for the day. FCX traded with a range of $1.92 per share on Thursday, August 27, 2015.
$ Change: FCX up 2.27 from the prior day's closing Price.
%PRC: FCX's Price changed 28.66% from the prior day's closing price.
Volume: FCX traded 106,375,930 shares on Thursday, August 27, 2015.
AvgVol: AvgVol is the 50 day moving average of daily volume as computed by VectorVest. FCX has an AvgVol of 28,578,874 shares traded per day.
%Vol: %Vol reflects the percent change in today's trading volume as compared to the AvgVol. %Vol equals ((Volume - AvgVol) / AvgVol ) * 100. FCX had a %Vol of 272.22% on Thursday, August 27, 2015
CI (Comfort Index): CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines.FCX has a CI rating of 0.20, which is very poor on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. VectorVest advocates the purchase of high CI stocks.
Sales / Market Capitalization Information
Sales: FCX has annual sales of 19,332,000,000
Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months. FCX has a Sales Growth of -23.00% per year. This is very poor. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations.
Sales Per Share (SPS): FCX has annual sales of $18.58 per share. SPS can be used as a measure of valuation when comparing stocks within an Industry Group.
Price to Sales Ratio (P/S): FCX has a P/S of 0.55. This ratio is also used as a measure of valuation. Here, too, it is useful when comparing stocks within an Industry Group.
Shares: FCX has 1,040,000,000 shares of stock outstanding.
Market Capitalization: FCX has a Market Capitalization of 10,599,000,000. Market Capitalization is calculated by multiplying price times shares outstanding.
Business Sector: FCX has been assigned to the Mining Business Sector. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.
Industry Group: FCX has been assigned to the Mining (Other) Industry Group. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.




 

Kroger Co (KR) Thursday, August 27, 2015

$35.53
0.45 (1.28%)
 
KR is undervalued compared to its Price of $35.53 per share, has well above average safety, and is currently rated a Hold.

Company Information
Business: The Kroger Co., incorporated in 1902, is a retailer in the United States. The Company also manufactures and processes some of the food for sale in its supermarkets.
Capital Appreciation
Value: Value is a measure of a stock's current worth. KR has a current Value of $42.55 per share. Therefore, it is undervalued compared to its Price of $35.53 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.
RV (Relative Value): RV is an indicator of long-term price appreciation potential. KR has an RV of 1.31, which is very good on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.
RS (Relative Safety): RS is an indicator of risk. KR has an RS rating of 1.30, which is very good on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the VectorVest database. VectorVest favors the purchase of stocks of companies with consistent, predictable financial performance.
RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock's price trend. KR has a Relative Timing rating of 0.94, which is fair on a scale of 0.00 to 2.00.  RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00.
VST (VST-Vector): VST is the master indicator for ranking every stock in the VectorVest database. KR has a VST rating of 1.18, which is good on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price.
Recommendation (REC): VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. KR has a Hold recommendation. REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.
Stop (Stop-Price): Stop is an indicator of when to sell a long position or cover a short position.  KR has a Stop of $34.24 per share. This is $1.29 below KR's current closing Price. A stock's Stop is computed from a 13 week moving average of its closing prices, and is fine-tuned according to the stock's fundamentals. High RV, high RS stocks have lower Stops, and low RV, low RS stocks have higher Stops. In the VectorVest system, a stock gets a 'B' or 'H' recommendation if its Price is above its Stop and an 'S' recommendation if its Price is below its Stop.
GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. KR has a forecasted Earnings Growth Rate of 14.00%, which VectorVest considers to be good. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, as shown weekly in our investment climate report.
EPS (Earnings per Share): EPS stands for leading 12 months Earnings Per Share. KR has a forecasted EPS of $1.94 per share. VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.
P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings. KR has a P/E of 18.31. This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the VectorVest database is 37.04. P/E is computed daily using the formula: P/E = Price/EPS.
EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. KR has an EY of 5.46 percent. This is above the current average of 2.70% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price).
GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. KR has a GPE rating of 0.77. High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 3.28%, the operative GPE ratio is 0.11. Therefore, KR may be considered to be undervalued.
Dividend Information
DIV (Dividend): VectorVest reports annual, regular, cash dividends as indicated by the most recent payments. Special distributions, one-time payments, stock dividends, etc., are not generally included in DIV. KR pays an annual dividend of $0.42 per share.
DY (Dividend Yield): DY reflects dividend per share as a percent of Price. KR has a Dividend Yield of 1.18 %. This is below the current average of 1.49% for all the stocks in the VectorVest database. DY equals 100 x (DIV/Price). It is useful to compare DY with EY. If DY is not significantly lower than EY, the dividend payment may be in jeopardy.
DS (Dividend Safety): DS is an indicator of the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future. KR has a Dividend Safety of 88 which is excellent on a scale of 0 to 99. Stocks with DS values above 75 typically have RS values well above 1.00 and EY levels that are much higher than DY.
DG (Dividend Growth Rate):   Dividend Growth is a forecasted annual growth rate of a company's dividend based on historical dividend payments and dividend predictability. It is a subtle yet important indicator of a company’s financial performance. It also provides some insight into the board’s outlook on the company’s ability to increase earnings. KR has a Dividend Growth of 15% This is above the current average of 1.49% for all the stocks in the VectorVest database.
YSG (YSG-Vector): YSG is an indicator which combines DY, DS and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. KR has a YSG rating of 1.14 which is good. Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for well above current income and long-term growth.
Price-Volume Data
Price: KR closed on Thursday, August 27, 2015 at $35.53 per share.
Open:KR opened trading at a price of $35.63 per share on Thursday, August 27, 2015.
High: KR traded at a High price of $36.00 per share on Thursday, August 27, 2015.
Low: KR traded at a Low price of $34.83 per share on Thursday, August 27, 2015.
Close: KR closed on Thursday, August 27, 2015 at $35.53 per share. (Close is also called Price in the VectorVest system)
Range: Range reflects the difference between the High and Low prices for the day. KR traded with a range of $1.17 per share on Thursday, August 27, 2015.
$ Change: KR up 0.45 from the prior day's closing Price.
%PRC: KR's Price changed 1.28% from the prior day's closing price.
Volume: KR traded 9,007,635 shares on Thursday, August 27, 2015.
AvgVol: AvgVol is the 50 day moving average of daily volume as computed by VectorVest. KR has an AvgVol of 5,617,717 shares traded per day.
%Vol: %Vol reflects the percent change in today's trading volume as compared to the AvgVol. %Vol equals ((Volume - AvgVol) / AvgVol ) * 100. KR had a %Vol of 60.34% on Thursday, August 27, 2015
CI (Comfort Index): CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines.KR has a CI rating of 1.48, which is excellent on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. VectorVest advocates the purchase of high CI stocks.
Sales / Market Capitalization Information
Sales: KR has annual sales of 108,555,000,000
Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months. KR has a Sales Growth of 0.00% per year. This is poor. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations.
Sales Per Share (SPS): KR has annual sales of $111.75 per share. SPS can be used as a measure of valuation when comparing stocks within an Industry Group.
Price to Sales Ratio (P/S): KR has a P/S of 0.32. This ratio is also used as a measure of valuation. Here, too, it is useful when comparing stocks within an Industry Group.
Shares: KR has 971,000,000 shares of stock outstanding.
Market Capitalization: KR has a Market Capitalization of 34,514,000,000. Market Capitalization is calculated by multiplying price times shares outstanding.
Business Sector: KR has been assigned to the Retail Business Sector. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.
Industry Group: KR has been assigned to the Retail (Supermarkets) Industry Group. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.





PTC Therapeutics CFO: Rare Potential

1 00:00:06,310 --> 00:00:09,830 all week we've been highlighting some the hottest stocks out their new series 2 00:00:09,830 --> 00:00:10,570 biotech 3 00:00:10,570 --> 00:00:15,120 the next generation travel are taking a closer look at 12 10 4 00:00:15,120 --> 00:00:19,800 best-performing biotech names a 2014 school PTC therapeutics 5 00:00:19,800 --> 00:00:24,220 PT CT which rally to 15 percent leisure and I think there could be even more 6 00:00:24,220 --> 00:00:25,060 upside your 7 00:00:25,060 --> 00:00:29,080 whose PTC isn't orphan drug developer hit just like the company you know I 8 00:00:29,080 --> 00:00:29,750 told you 9 00:00:29,750 --> 00:00:34,010 of NPs former which we learned last week is being acquired by sharp for a monster 10 00:00:34,010 --> 00:00:34,530 premium 11 00:00:34,530 --> 00:00:38,690 PTC top small molecule therapies that modify 12 00:00:38,690 --> 00:00:42,559 are in a transcription and translation which swept fixing rare genetic 13 00:00:42,559 --> 00:00:43,329 disorders 14 00:00:43,329 --> 00:00:46,809 especially those that are caused by what are known as nonsense mutations 15 00:00:46,809 --> 00:00:51,209 in your DNA companies me drug trans lorna has been approved in me 16 00:00:51,210 --> 00:00:54,410 the EU produce a muscular dystrophy will call a DMD 17 00:00:54,410 --> 00:00:59,379 at only fatal working condition and the US launch cook on next year pending FDA 18 00:00:59,379 --> 00:01:00,019 approval 19 00:01:00,019 --> 00:01:03,339 the other by titration develop troopers for this disease including by Marie much 20 00:01:03,340 --> 00:01:04,239 spoke to yesterday 21 00:01:04,239 --> 00:01:08,470 but PTC is alone in targeting a specific subgroup D&D 22 00:01:08,470 --> 00:01:11,670 patients roughly 15 to 20 percent the overall population 23 00:01:11,670 --> 00:01:15,400 who particular genetic mutation that's why the DVD indication alone could 24 00:01:15,400 --> 00:01:18,190 potentially be worth a billion dollars apiece sales for PTC 25 00:01:18,190 --> 00:01:21,820 plus this drug is also being studies treatment for cystic by pro 26 00:01:21,820 --> 00:01:25,380 fibrosis wheres interface three in a group with inherited metabolic disorders 27 00:01:25,380 --> 00:01:27,119 known as MPs which base to 28 00:01:27,120 --> 00:01:31,730 tablet PC is a solid pipeline clearly a spinal muscular atrophy treatment 29 00:01:31,730 --> 00:01:33,740 they're developing novel with Roach 30 00:01:33,740 --> 00:01:37,350 entry on call the platform it targets the stem cells a progressive 31 00:01:37,350 --> 00:01:40,440 drug resistant tumors that's moving into Phase one you know earlier is that 32 00:01:40,440 --> 00:01:41,820 something about Mike's okay 33 00:01:41,820 --> 00:01:45,530 now PTC may have dropped dramatically your but it's also in the sweet spot 34 00:01:45,530 --> 00:01:49,790 what's being work been working biotech so take a close look machine kovacs 35 00:01:49,790 --> 00:01:51,880 chief financial officer PTC therapeutics 36 00:01:51,880 --> 00:01:55,679 find out more about this company and its prospects mister cohen welcome to make 37 00:01:55,680 --> 00:01:56,070 money 38 00:01:56,070 --> 00:01:57,450 this user 39 00:01:57,450 --> 00:02:01,170 nice to meet you watching I've gotta tell you when I was going through %uh 40 00:02:01,170 --> 00:02:05,460 my first thing I read this was like wait a second Rd MD we are no indications 41 00:02:05,460 --> 00:02:07,270 just my personal reno's working that 42 00:02:07,270 --> 00:02:10,440 you what he wants upsets apps upsets 43 00:02:10,440 --> 00:02:14,060 where no one else seems to be change conditions 44 00:02:14,060 --> 00:02:18,710 tell us about the D&D in window of what's so important they can get your 45 00:02:18,710 --> 00:02:23,000 that's right i mean so for all these rare diseases were talking about 46 00:02:23,000 --> 00:02:27,020 different mutations that ultimately lead to the loss in the protein addition 47 00:02:27,020 --> 00:02:30,270 muscular dystrophy that's these nonsense mutations that we're focused on 48 00:02:30,270 --> 00:02:33,300 its also truancy at it's also true in MPS 49 00:02:33,300 --> 00:02:36,730 so it was a ten-percent other people love it 5 percent of the people that 50 00:02:36,730 --> 00:02:37,350 disease 51 00:02:37,350 --> 00:02:41,739 yeah in to shed its between 10 and 15 percent we estimate around 13 percent 52 00:02:41,740 --> 00:02:46,440 in CF it's around 10 percent in NPS is actually but 62 eighty percent of 53 00:02:46,440 --> 00:02:47,370 patients okay 54 00:02:47,370 --> 00:02:52,010 how people know if they have that mutation they have to go and get 55 00:02:52,010 --> 00:02:56,010 Gina typically identified to have to sequence the DNA to confirm that it 56 00:02:56,010 --> 00:02:59,810 is a nonsense mutation as opposed to one any other type and deletion we do five 57 00:02:59,810 --> 00:03:00,300 years ago 58 00:03:00,300 --> 00:03:04,750 a it's getting faster and is getting cheaper to do it for the patients 59 00:03:04,750 --> 00:03:08,019 okay when the things that I notice was missus sad stuff for you 60 00:03:08,019 --> 00:03:11,090 actually everything you treat ourselves is very sad because 61 00:03:11,090 --> 00:03:14,370 is one where it looks like that if you get to people who were between five and 62 00:03:14,370 --> 00:03:15,220 six years old 63 00:03:15,220 --> 00:03:18,510 you might be able to say their lives looks like later on you can't 64 00:03:18,510 --> 00:03:22,149 your intuition you wanna treat these boys 65 00:03:22,150 --> 00:03:25,680 as the younger cool with that right it's boys that year 66 00:03:25,680 --> 00:03:29,730 its predominately boys because it's XLink genetic disorders what lies on the 67 00:03:29,730 --> 00:03:31,049 extra chromosome 68 00:03:31,049 --> 00:03:34,150 now if they don't have abstract Erum the 69 00:03:34,150 --> 00:03:37,209 all the research is that could be worth a billion dollars it seems like that if 70 00:03:37,209 --> 00:03:37,560 the 71 00:03:37,560 --> 00:03:41,110 if that they have to be treated for many years in an all-male they do died but 72 00:03:41,110 --> 00:03:41,380 that 73 00:03:41,380 --> 00:03:45,420 I healthcare me a health maintenance organization would have to pay millions 74 00:03:45,420 --> 00:03:46,400 over time 75 00:03:46,400 --> 00:03:49,959 to take care these people unless these people were identified and they take 76 00:03:49,959 --> 00:03:50,530 your drop 77 00:03:50,530 --> 00:03:55,280 into shenice some muscle wasting to sort out what we're trying to do is stabilize 78 00:03:55,280 --> 00:03:57,950 the boys to keep their healthy muscle healthy 79 00:03:57,950 --> 00:04:01,630 hot so that it doesn't isn't nope so easily damage 80 00:04:01,630 --> 00:04:05,630 in so you wanna T his body as possible this will be a chronic their people take 81 00:04:05,630 --> 00:04:06,790 it for the rest of their lives 82 00:04:06,790 --> 00:04:10,310 about cystic fibrosis again you're not trying to do what vertex is doing you 83 00:04:10,310 --> 00:04:11,750 got a specific subsets 84 00:04:11,750 --> 00:04:15,820 cyst yet this is a mutation that this different and distinct from the 85 00:04:15,820 --> 00:04:18,920 from the mutations that vertex is working on this is the nonsense 86 00:04:18,920 --> 00:04:20,330 mutations the class 1 87 00:04:20,329 --> 00:04:23,750 is actually the most severe form a cystic fibrosis 88 00:04:23,750 --> 00:04:27,670 hurt you are stumble on this whole are in a technology 89 00:04:27,670 --> 00:04:31,240 it's very different from companies that use a we're going to go cure cystic 90 00:04:31,240 --> 00:04:32,190 fibrosis 91 00:04:32,190 --> 00:04:36,310 you know we've got a different and unique approach to are in a biology into 92 00:04:36,310 --> 00:04:39,100 rare diseases unlike some of the enzyme replacement their eyes 93 00:04:39,100 --> 00:04:43,330 where you making the protein in a lab and then if using it we 94 00:04:43,330 --> 00:04:47,289 our approach is to enable the patience to produce their own protein 95 00:04:47,290 --> 00:04:51,660 using a small molecule approach now there's you're not proved to me this is 96 00:04:51,660 --> 00:04:53,910 not something as pie in the sky is happening right now 97 00:04:53,910 --> 00:04:57,200 yet last year was a monumental year for us because 98 00:04:57,200 --> 00:05:00,680 the European authorities approved Arjun this the first approval 99 00:05:00,680 --> 00:05:04,980 ever in this disease for the underlying cause and given that that means that 100 00:05:04,980 --> 00:05:08,480 you're going to have read the news and it would seem that the EU likes it what 101 00:05:08,480 --> 00:05:12,820 we've seen is it's very rare that do you like something that the FDA does it 102 00:05:12,820 --> 00:05:16,250 right now we we've already begun shipping to patients in Europe and 103 00:05:16,250 --> 00:05:17,620 actually in a lot of countries 104 00:05:17,620 --> 00:05:22,260 outside a europe to recognise the European approval in the US we've got 105 00:05:22,260 --> 00:05:26,780 the largest study ever to be done in DMD it's well under way i'll read out at the 106 00:05:26,780 --> 00:05:27,490 end of this year 107 00:05:27,490 --> 00:05:30,820 but it knows people look into it we'll see that it's really we still talking to 108 00:05:30,820 --> 00:05:32,250 him for people in Europe right 109 00:05:32,250 --> 00:05:35,720 means the numbers are not big yeah it's its it is a unique 110 00:05:35,720 --> 00:05:39,760 it's a 2500 potential patients in but I mean right now your role in just a 111 00:05:39,760 --> 00:05:41,210 handful people painful 112 00:05:41,210 --> 00:05:45,090 have found it so far right yeah we've got will work early in the launch right 113 00:05:45,090 --> 00:05:46,470 so how many right now 114 00:05:46,470 --> 00:05:50,220 with a look at we've just launched in Germany last month 115 00:05:50,220 --> 00:05:53,570 we started to shipping into France and to Spain 116 00:05:53,570 --> 00:05:57,480 earlier towards the end of last year okay because I want people to know that 117 00:05:57,480 --> 00:05:59,660 this is early but you do what you are gonna 118 00:05:59,660 --> 00:06:03,100 revenues from the spotlight and there's a bright future for yet no 119 00:06:03,100 --> 00:06:06,380 European launches are slower than the US right but they do 120 00:06:06,380 --> 00:06:10,120 gain momentum okay well now people know why it's up so much is rare 121 00:06:10,120 --> 00:06:14,410 and it's the only thing for these people at Shinko that's the Seattle 122 00:06:14,410 --> 00:06:18,230 PTC therapeutics nice very thorough presentation from this one 123 00:06:18,230 --> 00:06:21,510 if you wanna know more about it don't buy the stock and to you bread 124 00:06:21,510 --> 00:06:23,190 the presentation him ice pack

Relypsa CEO John Orwin: Fast-Track Funds?

1 00:00:06,950 --> 00:00:09,410 why am I so focused on the biotech space for your 2 00:00:09,410 --> 00:00:12,800 because in an environment where what's happening in the rest the world can 3 00:00:12,800 --> 00:00:14,660 question or markets on a day-to-day basis 4 00:00:14,660 --> 00:00:17,660 he's biotech companies have no real economic sense to the 5 00:00:17,660 --> 00:00:21,490 what so ever do not bother the Swiss franc and i'm bob with Japanese 6 00:00:21,490 --> 00:00:22,539 deflation their 7 00:00:22,539 --> 00:00:26,380 immunize against the forces that slammed the average speak these are businesses 8 00:00:26,380 --> 00:00:28,939 where if you do the homework and fall what's happening at the individual 9 00:00:28,939 --> 00:00:29,619 companies 10 00:00:29,619 --> 00:00:33,449 you may be surprised by disappointing clinical trial results 11 00:00:33,449 --> 00:00:37,460 or maybe a shock incision from the FDA but Chuck be blindsided by the European 12 00:00:37,460 --> 00:00:40,670 Central Bank with that in mind let me introduce you to 13 00:00:40,670 --> 00:00:46,840 relapse or L Y P that is a 1.15 billion dollar by a cat focused on developing 14 00:00:46,840 --> 00:00:49,460 treatment for kidney cardiovascular metabolic disorders 15 00:00:49,460 --> 00:00:53,520 specific you specifically relapse is getting closer to the finish line 16 00:00:53,520 --> 00:00:58,379 with upper tier amor are its treatment for hypercalcemia 17 00:00:58,379 --> 00:01:02,789 or high potassium levels in plain English a serious medical problem need 18 00:01:02,789 --> 00:01:04,089 some modern solutions 19 00:01:04,089 --> 00:01:07,590 as the best run calmly on the mark was approved in 1958 20 00:01:07,590 --> 00:01:11,029 are the FDA is expected to make its decision on procurement 21 00:01:11,029 --> 00:01:15,240 by late October and early this month we learned that it doesn't plan to convene 22 00:01:15,240 --> 00:01:18,990 Advisory Committee drug meeting on the drug and that got a that's really Bosh 23 00:01:18,990 --> 00:01:22,999 the question now is how big is the market selects a plan to talk in 24 00:01:22,999 --> 00:01:25,208 patients with heart failure and chronic kidney disease 25 00:01:25,209 --> 00:01:28,189 publisher millions which could potentially make this a blockbuster drug 26 00:01:28,189 --> 00:01:28,840 in short order 27 00:01:28,840 --> 00:01:32,499 however new drug wants to be complicated special just relax a as potential 28 00:01:32,499 --> 00:01:35,189 competitor that's less than a year behind them in a development cycle 29 00:01:35,189 --> 00:01:39,849 short spectrum's stock a lot of upside potential major risk let's dig deeper 30 00:01:39,849 --> 00:01:42,149 with John or win the presidency overlaps a 31 00:01:42,149 --> 00:01:44,460 to hear more about his company and where 10 32 00:01:44,460 --> 00:01:49,170 storm welcome at my thank you very much jim is a delight to be on the show 33 00:01:49,170 --> 00:01:52,640 thank you for SAR nothing since 1958 34 00:01:52,640 --> 00:01:56,860 I mean that's got to be one of the most unmet needs out there it is a very 35 00:01:56,860 --> 00:02:00,960 significant unmet need and to the point you may be for about the size of the 36 00:02:00,960 --> 00:02:02,060 population 37 00:02:02,060 --> 00:02:06,030 there are between 14 and 15 million patients with 38 00:02:06,030 --> 00:02:09,449 clinically significant chronic kidney disease and 39 00:02:09,449 --> 00:02:13,109 love those patients approximately 20 percent or upward of 40 00:02:13,110 --> 00:02:17,820 three million patients will suffer from moderate to severe hyperkalemia 41 00:02:17,820 --> 00:02:21,950 and as you point out this is an important medical condition to treat 42 00:02:21,950 --> 00:02:26,260 these patients are at six significantly increased risk 43 00:02:26,260 --> 00:02:30,820 have cardiac arrhythmia and cardiac death bought one of the things that I 44 00:02:30,820 --> 00:02:32,320 thought that was that 45 00:02:32,320 --> 00:02:38,410 I to people know that they had they actually don't typically now 46 00:02:38,410 --> 00:02:41,770 it's largely a symptomatic on which is 47 00:02:41,770 --> 00:02:44,980 something that makes it that much more frightening I think on 48 00:02:44,980 --> 00:02:49,780 but positions will typically now because they're measuring patients blood counts 49 00:02:49,780 --> 00:02:53,010 on a regular basis whenever patients are seen 50 00:02:53,010 --> 00:02:57,510 I so a physician will usually know that a patient has an hi 51 00:02:57,510 --> 00:03:01,010 an elevated potassium but your point there haven't been any 52 00:03:01,010 --> 00:03:04,040 new treatment options in like sixty-two years 53 00:03:04,040 --> 00:03:07,950 and that the all option that exists is really not a good one it's not very well 54 00:03:07,950 --> 00:03:10,220 tolerated it hasn't been shown to be 55 00:03:10,220 --> 00:03:14,720 I effective in in clinical trials are subjected to the kind of scrutiny that 56 00:03:14,720 --> 00:03:17,750 I'm a new product like ours would be 57 00:03:17,750 --> 00:03:22,100 so it's really important to have new treatment options for these patients and 58 00:03:22,100 --> 00:03:24,330 treatment options that are well tolerated enough 59 00:03:24,330 --> 00:03:27,430 that they can be given on a daily basis because after all 60 00:03:27,430 --> 00:03:30,600 chronic kidney disease is a chronic disease 61 00:03:30,600 --> 00:03:34,970 right so quiet disease chronic treatment take your polymer in a power for meat 62 00:03:34,970 --> 00:03:35,550 week 63 00:03:35,550 --> 00:03:39,320 that's right now you'd actually take it daily 64 00:03:39,320 --> 00:03:42,640 patients in clinical trials took a tear Mar twice daily 65 00:03:42,640 --> 00:03:46,800 it's a powder that you mix with a very small volume of water 66 00:03:46,800 --> 00:03:47,710 and 67 00:03:47,710 --> 00:03:51,710 and you swallow it and the way it works is that as it goes through the digestive 68 00:03:51,710 --> 00:03:52,560 tract 69 00:03:52,560 --> 00:03:57,900 it actually binds to potassium and so it's taking potassium excess potassium 70 00:03:57,900 --> 00:04:01,470 and removing it from the body at 71 00:04:01,470 --> 00:04:04,750 potassium is a very important electrolyte for 72 00:04:04,750 --> 00:04:08,230 cardiac function and in fact I'm for human life 73 00:04:08,230 --> 00:04:13,250 the issue is that your body needs to control potassium within a relatively 74 00:04:13,250 --> 00:04:14,720 narrow range 75 00:04:14,720 --> 00:04:18,738 we all take in far more potassium than we need in our diets 76 00:04:18,739 --> 00:04:22,570 and physiologically normal healthy folks 77 00:04:22,570 --> 00:04:25,880 you just excrete the excess potassium through your kidneys 78 00:04:25,880 --> 00:04:29,480 but as the name would suggest chronic kidney disease patients 79 00:04:29,480 --> 00:04:34,180 have a compromised kidney function and therefore a compromise the ability to 80 00:04:34,180 --> 00:04:35,900 actually excrete potassium 81 00:04:35,900 --> 00:04:39,690 and that's why these patients are in need of something that they can take on 82 00:04:39,690 --> 00:04:40,810 a daily basis 83 00:04:40,810 --> 00:04:44,620 that will remove excess potassium really keep them in what we call the normal 84 00:04:44,620 --> 00:04:45,720 Kaylee mid-range 85 00:04:45,720 --> 00:04:49,650 where they're not at that elevated risk and that's exactly what our product us 86 00:04:49,650 --> 00:04:52,960 now what I took it is very bullish that the FDA 87 00:04:52,960 --> 00:04:57,530 did not are ask for an invite convening advisory committee meeting is obviously 88 00:04:57,530 --> 00:05:01,370 I think that means that the FDA wants to get something for these people if your 89 00:05:01,370 --> 00:05:02,050 drug works 90 00:05:02,050 --> 00:05:05,060 faster then typically that i've seen 91 00:05:05,060 --> 00:05:08,360 well my experience 92 00:05:08,360 --> 00:05:12,910 working with the FDA has been very constructive and productive one 93 00:05:12,910 --> 00:05:18,060 on its it's probably not good to true try to read into everything that they do 94 00:05:18,060 --> 00:05:22,050 but we're certainly encouraged by the fact that they decided at least for now 95 00:05:22,050 --> 00:05:22,610 that 96 00:05:22,610 --> 00:05:27,190 they don't need to convene a panel I think the way the product works and what 97 00:05:27,190 --> 00:05:28,900 it does is pretty straightforward 98 00:05:28,900 --> 00:05:32,650 and I think our team put together a very 99 00:05:32,650 --> 00:05:37,990 quality submission and also we conducted very rigorous clinical trials 100 00:05:37,990 --> 00:05:42,140 I in hundreds of patients to demonstrate both at the product 101 00:05:42,140 --> 00:05:45,520 I is effective in removing potassium but also that 102 00:05:45,520 --> 00:05:50,229 and what we saw was a tolerability profile suggesting that it could be used 103 00:05:50,230 --> 00:05:53,570 on a chronic daily basis so all those things I think 104 00:05:53,570 --> 00:05:56,900 are important and I think the FDA's decision 105 00:05:56,900 --> 00:05:58,910 at least for now not to hold the panel 106 00:05:58,910 --> 00:06:02,190 is encouraging on white one last quick question 107 00:06:02,190 --> 00:06:05,800 yeah I got punched for a house which where I heard that too much salt is bad 108 00:06:05,800 --> 00:06:08,690 and that you get a heart attack or you get high blood pressure from too much 109 00:06:08,690 --> 00:06:09,180 salt 110 00:06:09,180 --> 00:06:12,850 you said listen most people can live within a band but is a possible that 111 00:06:12,850 --> 00:06:14,790 your drugs much bigger than we think because 112 00:06:14,790 --> 00:06:18,150 a market each too much sugar in America eats too much saw 113 00:06:18,150 --> 00:06:21,970 could jurors be the answer for those of us who are being addicted to salt and 114 00:06:21,970 --> 00:06:25,020 just desired all the time even though we know it's bad for us 115 00:06:25,020 --> 00:06:29,820 well many of these patients are sodium restricted in so they can't 116 00:06:29,820 --> 00:06:33,520 take a lot of salt and that's why we designed our product 117 00:06:33,520 --> 00:06:36,830 to exchange calcium for potassium rather than sodium 118 00:06:36,830 --> 00:06:40,190 hide it or not introducing any new sodium impatience 119 00:06:40,190 --> 00:06:43,580 are but it's going to be important that they continue to 120 00:06:43,580 --> 00:06:47,370 I am limit the amount of sodium that they take in their diet 121 00:06:47,370 --> 00:06:51,240 particularly those patients with chronic kidney disease and patients with 122 00:06:51,240 --> 00:06:54,370 with heart conditions all this just makes a time a sense to me and I totally 123 00:06:54,370 --> 00:06:56,710 understand why your stock has been strong 124 00:06:56,710 --> 00:07:01,229 ot its if there's nothing since 1958 is a lifesaver certainly like to do 125 00:07:01,229 --> 00:07:04,229 John Owen president/ceo a burlap sack R L Y P 126 00:07:04,229 --> 00:07:07,530 thank you so much my pleasure thank you by guys 127 00:07:07,530 --> 00:07:10,850 understand the sole we come show you things there's 128 00:07:10,850 --> 00:07:13,960 unmet needs out there their companies to work in the summit needs 129 00:07:13,960 --> 00:07:18,050 and the when they strike gold you win and they save lives 130 00:07:18,050 --> 00:07:20,590 to which of course is far more important stick with me

Isis Pharmaceuticals CEO Dr. Stanley Crooke

1 00:00:06,910 --> 00:00:10,429 it for today's filing pacing let's not forget that the work actually some 2 00:00:10,429 --> 00:00:11,050 stocks that 3 00:00:11,050 --> 00:00:15,179 rallied this session stocks like kramer faith ices form a suitable was climbed 4 00:00:15,179 --> 00:00:19,590 six dollars in city since 10.72 percent when news about major partnership with 5 00:00:19,590 --> 00:00:20,698 changing to develop 6 00:00:20,699 --> 00:00:24,539 drugs for 18 use disorders affecting the gastrointestinal tract 7 00:00:24,539 --> 00:00:28,279 change a possibly pay as much as $835 million dollars over time 8 00:00:28,279 --> 00:00:32,028 i'd taking any potential role isn't a cap always maintain 9 00:00:32,029 --> 00:00:35,340 ice is a trip to come because there are so many shots on goal 34 different 10 00:00:35,340 --> 00:00:36,809 development programs is pipeline 11 00:00:36,809 --> 00:00:40,468 today's news really brings home that point because before this morning 12 00:00:40,469 --> 00:00:44,420 frankly I don't allow workers coming in every member in the GI tract on the J 13 00:00:44,420 --> 00:00:47,570 changes so excited about this is so many different opportunities 14 00:00:47,570 --> 00:00:50,950 it's hard to keep track for those you don't remember ice is supplying you're 15 00:00:50,950 --> 00:00:51,539 in the field 16 00:00:51,539 --> 00:00:55,690 80 cents technology medical speak for therapies that work by binding to be are 17 00:00:55,690 --> 00:00:57,038 in a in person sells 18 00:00:57,039 --> 00:01:00,629 live in the company's drugs to basically control the expression to be given 19 00:01:00,629 --> 00:01:01,788 individuals jeans 20 00:01:01,789 --> 00:01:06,670 terrific way to treat a broad various nasty inherited genetic disorders 21 00:01:06,670 --> 00:01:10,110 we just bought ice is CEO back in December Ted less than three weeks ago 22 00:01:10,110 --> 00:01:12,830 I'd burn entire segment to the company's revolutionary 23 00:01:12,830 --> 00:01:17,408 anti-clotting drug FX I 1 %uh many potential blockbusters in the company's 24 00:01:17,409 --> 00:01:17,909 pipeline 25 00:01:17,909 --> 00:01:21,780 which also includes ices of Phase three treatment for TTR and worry 26 00:01:21,780 --> 00:01:25,530 dice its phase 3 therapy for spinal muscular atrophy 27 00:01:25,530 --> 00:01:28,680 which is the leading cause of him tell death worldwide not to mention the catch 28 00:01:28,680 --> 00:01:31,720 a trip to come is developing for its own diabetes formulations it 29 00:01:31,720 --> 00:01:35,280 now ices rallied nearly 55 percent this year today's move tells me 30 00:01:35,280 --> 00:01:38,290 this innovation could have a lot more room to run don't think it for me let's 31 00:01:38,290 --> 00:01:41,409 check in with doctor stanley quote the Founder Chairman CEO of my sis 32 00:01:41,409 --> 00:01:44,510 hear more about this partnership will change and what it means for 33 00:01:44,510 --> 00:01:47,980 the doctor cock welcome back Jul its greatest 34 00:01:47,980 --> 00:01:51,650 way to start the new year okay what I I did not know that 35 00:01:51,650 --> 00:01:54,850 that you were working on autoimmune disorders to the gastrointestinal tract 36 00:01:54,850 --> 00:01:59,600 what J&J's Janssen division see that they think they can commercialize you 37 00:01:59,600 --> 00:02:05,960 well an assist technology is versatile and it's and it's efficient and 38 00:02:05,960 --> 00:02:09,399 highly specific and so it's an incredible tool 39 00:02:09,399 --> 00:02:13,470 the to add to the efficiency and drug discovery 40 00:02:13,470 --> 00:02:16,700 of course we do have experience in the GI tract 41 00:02:16,700 --> 00:02:20,220 some years ago with the first generation antisense drug 42 00:02:20,220 --> 00:02:24,150 so we do have GI experience and what's really exciting 43 00:02:24,150 --> 00:02:27,400 to us about this collaboration is 44 00:02:27,400 --> 00:02:30,940 it it it it expands the borders have the technology 45 00:02:30,940 --> 00:02:35,470 once again because this is focused now on oral administration 46 00:02:35,470 --> 00:02:39,050 for local treatment gastrointestinal diseases 47 00:02:39,050 --> 00:02:43,220 and so that's a space that's new for the technology but its 48 00:02:43,220 --> 00:02:47,239 adjacent to areas that we've worked before so we have high confidence it can 49 00:02:47,239 --> 00:02:47,970 work 50 00:02:47,970 --> 00:02:53,489 and once again expands the breadth utility in the technology I think that's 51 00:02:53,489 --> 00:02:54,090 the thing 52 00:02:54,090 --> 00:02:57,830 that should get people most excited one more 53 00:02:57,830 --> 00:03:01,600 not on the belt of all the different opportunities that we have 54 00:03:01,600 --> 00:03:05,220 to take advantage of with this technology what specific illnesses are 55 00:03:05,220 --> 00:03:08,200 we speaking up when we speak of gastrointestinal tract Hills 56 00:03:08,200 --> 00:03:13,190 well these are is often inflammatory diseases like Crohn's and ulcerative 57 00:03:13,190 --> 00:03:17,060 colitis and then their diseases like your double ballot syndrome 58 00:03:17,060 --> 00:03:21,370 and then they're all the inflammatory disorders that that relate to the immune 59 00:03:21,370 --> 00:03:23,239 function so the GI tract 60 00:03:23,239 --> 00:03:27,850 so there's a very large consolation to diseases that are primarily manifested 61 00:03:27,850 --> 00:03:28,590 in the gut 62 00:03:28,590 --> 00:03:33,329 a and and n new treatments are needed desperately 63 00:03:33,329 --> 00:03:34,730 J&J 64 00:03:34,730 --> 00:03:39,870 of course brings experience in that space with Remicade in all the other 65 00:03:39,870 --> 00:03:41,659 work that they have done over the years 66 00:03:41,659 --> 00:03:45,489 so there the ideal partner that we would choose to 67 00:03:45,489 --> 00:03:49,940 to do this next step in the technology I noticed it too close a 68 00:03:49,940 --> 00:03:53,940 a doctor that you appointed Sarah Boyce's chief business 69 00:03:53,940 --> 00:03:57,670 officer she used to be it Biden abortus I'll exxon for slabs 70 00:03:57,670 --> 00:04:00,970 are you in a different phase now with my sis are you in the face for your 71 00:04:00,970 --> 00:04:03,340 commercializing not taught what's in the lab 72 00:04:03,340 --> 00:04:06,680 well we r evolving 73 00:04:06,680 --> 00:04:11,290 now and and in that evolution to things that we want to accomplish 74 00:04:11,290 --> 00:04:15,459 the first is there's there is a group of drugs in particular the 75 00:04:15,459 --> 00:04:19,070 the drugs to constitute or lipid franchise now 76 00:04:19,070 --> 00:04:23,479 a pushy three rx able they are actually an engine put like three rx 77 00:04:23,479 --> 00:04:26,740 all three unique forming a true franchise 78 00:04:26,740 --> 00:04:29,880 and all having a 79 00:04:29,880 --> 00:04:33,789 relatively rare disease opportunity to begin with and then a much broader 80 00:04:33,789 --> 00:04:34,760 opportunity 81 00:04:34,760 --> 00:04:39,760 so those trucks were keeping a and we're in phase 3 with a pushy three in phase 2 82 00:04:39,760 --> 00:04:40,960 with a belay and 83 00:04:40,960 --> 00:04:44,049 about to go down face to with and you put like three 84 00:04:44,050 --> 00:04:49,639 and and so well we're certainly keeping in two phase 3 and 85 00:04:49,639 --> 00:04:53,340 and beam a commercialized them so ourselves our partner them at a later 86 00:04:53,340 --> 00:04:54,160 date 87 00:04:54,160 --> 00:04:57,539 the goal there is to retain much more control 88 00:04:57,539 --> 00:05:02,000 and to and two course retain a much bigger piece in the Bakken 89 00:05:02,000 --> 00:05:05,110 so sharer brings 90 00:05:05,110 --> 00:05:08,680 you know all this successful business experience to 91 00:05:08,680 --> 00:05:12,310 to contribute to the decision making that entices 92 00:05:12,310 --> 00:05:16,880 from a business perspective and that's very important what should be managing 93 00:05:16,880 --> 00:05:20,750 to a number of functions that use report directly to lynn partial 94 00:05:20,750 --> 00:05:24,169 and now they'll report to her to didn't 95 00:05:24,169 --> 00:05:28,630 tend to lynn and tomorrow we'll announce the appointment AFP also 96 00:05:28,630 --> 00:05:32,969 propolis who will will will become CEO 97 00:05:32,970 --> 00:05:36,479 other newly formed subsidiary we call axiom 98 00:05:36,479 --> 00:05:41,820 and that that subsidiary is responsible or will be responsible for the late 99 00:05:41,820 --> 00:05:44,530 development commercialization number lipid franchise 100 00:05:44,530 --> 00:05:46,710 so these are big step for us 101 00:05:46,710 --> 00:05:51,349 I'll and yet they are steps that are consistent with the designer the company 102 00:05:51,349 --> 00:05:55,628 which is much more consortium sort of configuration rather than 103 00:05:55,629 --> 00:06:00,719 the this or a preamble fully integrated pharmaceutical company configuration 104 00:06:00,719 --> 00:06:03,759 and absolutely assures that the core a vice is 105 00:06:03,759 --> 00:06:08,589 state focus on where the real leverage years which is basic science 106 00:06:08,589 --> 00:06:13,520 technology development drug discovery and early development well doctor 107 00:06:13,520 --> 00:06:16,580 crop once again I mean this is breathtaking new smart stock up 10 108 00:06:16,580 --> 00:06:19,389 percent in one day and one the worst days you had a long time 109 00:06:19,389 --> 00:06:23,490 thank you so much for coming on a mad money well appreciated 110 00:06:23,490 --> 00:06:27,599 it's great to be back get Stanley cook cookies the Chairman CEO 111 00:06:27,599 --> 00:06:30,990 up ices pharmaceuticals nicest that would have been up even more 112 00:06:30,990 --> 00:06:33,319 the market one so hard name on his back

Cisco Systems CEO John T. Chambers: A Dow Dazzler

1 00:00:06,419 --> 00:00:10,180 20 hideous tape for the false it's worth certain why king's ransom the market's 2 00:00:10,180 --> 00:00:11,690 most powerful leaders 3 00:00:11,690 --> 00:00:15,100 that a pullback courtesy the recent sell-off talk about companies like Cisco 4 00:00:15,100 --> 00:00:16,100 the networking 5 00:00:16,100 --> 00:00:19,599 kingpin which is the 5th best-performing stock in the Dow Jones Industrial 6 00:00:19,599 --> 00:00:20,240 Average Fisher 7 00:00:20,240 --> 00:00:24,869 I think you can you be a bad this reform in 2015 sisters watching some major pop 8 00:00:24,869 --> 00:00:27,198 cycles here and let me the company's shift its focus 9 00:00:27,199 --> 00:00:30,630 toward lowering more software focus cloud-based solutions 10 00:00:30,630 --> 00:00:34,260 carry higher margins the one issue here's the Cisco typically goes 11 00:00:34,260 --> 00:00:37,440 does well when the global economy is warning but outside the United States 12 00:00:37,440 --> 00:00:40,210 was very strong the rest the world not looking so hot 13 00:00:40,210 --> 00:00:43,960 still the stock is relatively cheap air space with 2.2 percent dividend yield 14 00:00:43,960 --> 00:00:47,360 coming out record-breaking quarter on many measures especially given the 15 00:00:47,360 --> 00:00:50,320 company's dominance a ball things internet so let's take a closer look 16 00:00:50,320 --> 00:00:52,610 with john chambers the Chairman CEO says go 17 00:00:52,610 --> 00:00:56,060 on the eve of the huge Consumer Electronics Show in Vegas for more about 18 00:00:56,060 --> 00:00:57,620 how was companies doing where it's headed 19 00:00:57,620 --> 00:01:02,770 John welcome back to make money Jim it's a pleasure to be with you again today 20 00:01:02,770 --> 00:01:06,200 thank you John can you give us a little preview of what you'll be saying at the 21 00:01:06,200 --> 00:01:08,740 giant consumer electronics show because I know that your company's 22 00:01:08,740 --> 00:01:13,820 a bit of the star at the event well Jim I think the 23 00:01:13,820 --> 00:01:17,190 most important issue they will be covered this year's around the unit 24 00:01:17,190 --> 00:01:17,920 thanks 25 00:01:17,920 --> 00:01:22,030 I we caught the unit have everything it's when you digitize everything from 26 00:01:22,030 --> 00:01:23,760 your car to your house 27 00:01:23,760 --> 00:01:26,860 to the clothes you wear to your health care I 28 00:01:26,860 --> 00:01:29,970 to the company's to the cities in countries around the world 29 00:01:29,970 --> 00:01:34,929 that's about a nineteen trillion-dollar are opportunity for profits are cost 30 00:01:34,930 --> 00:01:36,720 savings over the next decade 31 00:01:36,720 --> 00:01:41,380 I within that security becomes a mast you have talked about there is no such 32 00:01:41,380 --> 00:01:42,899 thing as a secure environment 33 00:01:42,900 --> 00:01:47,710 a year or two ago and that is turned out to be very true so the ability to bring 34 00:01:47,710 --> 00:01:49,150 security that picture 35 00:01:49,150 --> 00:01:52,690 then you combine all those what we call market transitions 36 00:01:52,690 --> 00:01:56,990 the elements have clout the elements such software the elements a mobility 37 00:01:56,990 --> 00:02:01,270 collaboration big day takes at church and they enable 38 00:02:01,270 --> 00:02:04,869 every company become a digital company said does it may be the areas we focus 39 00:02:04,869 --> 00:02:05,270 on 40 00:02:05,270 --> 00:02:10,500 key takeaway so GM it's about pace of change if companies or countries 41 00:02:10,500 --> 00:02:14,070 and ability to operate a much faster speed up innovation 42 00:02:14,070 --> 00:02:18,530 that we did before Matt panel be around I V gain fast innovation 43 00:02:18,530 --> 00:02:23,410 I'll be focused on disruptor be disrupted with the president of comcast 44 00:02:23,410 --> 00:02:25,829 and the CEO Bosch as an example Jim 45 00:02:25,830 --> 00:02:30,540 are judged you have often given forecast that seemed wildly outrageous about the 46 00:02:30,540 --> 00:02:32,230 amount of data that was going to be 47 00:02:32,230 --> 00:02:35,899 put on the Internet just as general be generated enable proven 48 00:02:35,900 --> 00:02:39,030 really right how about the next five years how much she said 49 00:02:39,030 --> 00:02:44,850 I think the market is still way too conservative GM on the loads on networks 50 00:02:44,850 --> 00:02:48,810 and the amount of information about 90 percent-plus said today's 51 00:02:48,810 --> 00:02:53,000 I loads are video I think you gonna see the explosion a video 52 00:02:53,000 --> 00:02:56,460 I we build high-end routers now they re capable 53 00:02:56,460 --> 00:03:00,220 I've hando in Liberty billions a video transactions that one time 54 00:03:00,220 --> 00:03:03,910 so I think GM this internet have everything we talked about 55 00:03:03,910 --> 00:03:08,070 I will load networks like never before but you have intelligence throughout 56 00:03:08,070 --> 00:03:08,489 that 57 00:03:08,490 --> 00:03:12,860 connect in the clouds to data centers to the wide area network to the edge 58 00:03:12,860 --> 00:03:16,239 with the capability to converge compute and storage 59 00:03:16,239 --> 00:03:20,820 in processing capability with the network with proper security in scale 60 00:03:20,820 --> 00:03:21,470 ability 61 00:03:21,470 --> 00:03:25,200 which plays right into Cisco sweet spots I think you gonna see explosive growth 62 00:03:25,200 --> 00:03:28,620 I think the impact will be five to 10 times 63 00:03:28,620 --> 00:03:31,989 be impacted the Internet to date in terms of technology 64 00:03:31,989 --> 00:03:35,380 and loads on network small we've known date you are 65 00:03:35,380 --> 00:03:38,720 Salman aggressive in these numbers but a proven to be conservative yourself down 66 00:03:38,720 --> 00:03:41,340 John you did have a great return to growth miss last quarter 67 00:03:41,340 --> 00:03:44,680 at the same time you did mention thanks irv service provider 68 00:03:44,680 --> 00:03:48,040 slowed and you mention two or three providers that you think 69 00:03:48,040 --> 00:03:51,040 have had to scale back any change in that 70 00:03:51,040 --> 00:03:55,100 any change that maybe spend he's coming back in that one area that is so 71 00:03:55,100 --> 00:03:55,610 important 72 00:03:55,610 --> 00:04:00,260 which emit I could let me can you take a step back in 73 00:04:00,260 --> 00:04:03,609 and just remember that everything I'm talking about is what I said about the 74 00:04:03,610 --> 00:04:04,519 prior quarter 75 00:04:04,519 --> 00:04:07,610 are looking out over this next year sedan searchers matters very 76 00:04:07,610 --> 00:04:08,700 specifically 77 00:04:08,700 --> 00:04:12,950 we made major organization changes and how we go to market how we align with 78 00:04:12,950 --> 00:04:13,940 service providers 79 00:04:13,940 --> 00:04:17,548 and where we see our opportunities over the last six to 12 months 80 00:04:17,548 --> 00:04:21,209 that starting to gain traction so did look over this next year 81 00:04:21,209 --> 00:04:25,400 I'd look for steady improvement still challenging introducers matter span so 82 00:04:25,400 --> 00:04:26,900 it's about share wanted span 83 00:04:26,900 --> 00:04:30,199 over the next four quarters and see if we make progress each quarter 84 00:04:30,199 --> 00:04:34,310 but what we also said last quarter gym that I think you hit on very effectively 85 00:04:34,310 --> 00:04:38,650 is we were a little bit more optimistic about the US economy that summer appears 86 00:04:38,650 --> 00:04:42,620 and why we clearly recognized at that point in time and the concerns in Europe 87 00:04:42,620 --> 00:04:46,240 we felt that Europe was in better shape than most people given credit Ford 88 00:04:46,240 --> 00:04:49,380 so we saw some headwinds as it relates to search batters 89 00:04:49,380 --> 00:04:52,960 what we control in that area we think we've organize ourselves very well 90 00:04:52,960 --> 00:04:57,289 to overtime I earn the leadership in that category and returned a reasonable 91 00:04:57,289 --> 00:04:58,020 growth knows 92 00:04:58,020 --> 00:05:01,880 areas quite a jump on your team's has been missin Cisco's more open than ever 93 00:05:01,880 --> 00:05:04,330 Cisco's want to work with a lot of cum is we didn't have 94 00:05:04,330 --> 00:05:07,490 Jayshree you all from arrest 001 recently 95 00:05:07,490 --> 00:05:11,599 who felt that she I'm %uh didn't think you play fair did she use the chart 96 00:05:11,599 --> 00:05:13,259 blind-sided disappointed 97 00:05:13,259 --> 00:05:16,690 when you filed a lawsuit on your total gentleman it did surprise me 98 00:05:16,690 --> 00:05:20,650 that she took the action following a lawsuit because it you are kinda 99 00:05:20,650 --> 00:05:24,840 pick up the phone guy in trying to solve for x mom 100 00:05:24,840 --> 00:05:29,340 would you know if you watch I we are a company that is not like he just in our 101 00:05:29,340 --> 00:05:29,930 nature 102 00:05:29,930 --> 00:05:34,659 I using the example you did wear kurti already winning in the market as United 103 00:05:34,659 --> 00:05:35,780 skates last quarter 104 00:05:35,780 --> 00:05:40,000 in terms of our growth rate is high and switching point away from start-ups 105 00:05:40,000 --> 00:05:43,400 in that market with dramatically higher growth rates and they reach even even 106 00:05:43,400 --> 00:05:45,930 they were much larger company with better gross margins 107 00:05:45,930 --> 00:05:49,870 about once every decade we can have to send a message the market 108 00:05:49,870 --> 00:05:54,770 that we spend six billion dollars a year on our intellectual property in our R&D 109 00:05:54,770 --> 00:05:59,159 and that we will protect that and that you have to say that periodically when 110 00:05:59,159 --> 00:06:02,240 somebody does cross the boundaries on that and you have to send a message both 111 00:06:02,240 --> 00:06:06,229 to dam and others in the market dad it is all about innovation but innovation 112 00:06:06,229 --> 00:06:07,229 is not copy in 113 00:06:07,229 --> 00:06:10,800 I don't take anything personal on this I just about every decade we have to 114 00:06:10,800 --> 00:06:11,820 remind our peers 115 00:06:11,820 --> 00:06:16,349 that we do invest and hi a very much our future innovation and we hope people 116 00:06:16,349 --> 00:06:20,590 accountable not copy that fair chernobyl one thing that has changed is that you 117 00:06:20,590 --> 00:06:21,110 had 118 00:06:21,110 --> 00:06:24,759 perhaps one a great see a possible time prank call running now he is 119 00:06:24,759 --> 00:06:28,590 retired as of last week are you gotta Kramer and they're telling 120 00:06:28,590 --> 00:06:31,330 member what will be different because circuses calls are the most 121 00:06:31,330 --> 00:06:32,669 well-orchestrated 122 00:06:32,670 --> 00:06:36,940 voice had a great 2010 Frank what are we gonna be seen differently on the next 123 00:06:36,940 --> 00:06:38,070 conference call with Cisco 124 00:06:38,070 --> 00:06:41,099 where the exciting thing GM 125 00:06:41,100 --> 00:06:45,530 is that Kelly would be the six EF though that I work with and as you said we've 126 00:06:45,530 --> 00:06:46,810 had six side 127 00:06:46,810 --> 00:06:51,160 generations I have CF those who play with very high integrity in very 128 00:06:51,160 --> 00:06:51,910 effectiveness 129 00:06:51,910 --> 00:06:55,270 I've never had 1 I've never mention gym before by you 130 00:06:55,270 --> 00:06:58,630 in terms that top five CF those that you view 131 00:06:58,630 --> 00:07:01,790 I'd like to see Kelly mentioned within two to three years 132 00:07:01,790 --> 00:07:05,590 earning that confidence from you what you see Kelly would do 133 00:07:05,590 --> 00:07:09,740 will be taking our company to the next generation our ability to become more 134 00:07:09,740 --> 00:07:11,740 horse on a rampant Asian 135 00:07:11,740 --> 00:07:16,430 tying together our 18 different product areas our server so go to market 136 00:07:16,430 --> 00:07:20,930 in a way that produces results for our shareholders so I think just like Evelyn 137 00:07:20,930 --> 00:07:23,110 evolution we done with our senior management 138 00:07:23,110 --> 00:07:26,600 Kelly would take it up one generation I think should do a great job in 139 00:07:26,600 --> 00:07:30,830 engine mad at the world to have a side wager for AAA pass a beer 140 00:07:30,830 --> 00:07:34,050 that within three or four years she's what are your top five CF house 141 00:07:34,050 --> 00:07:38,110 fair bet thank you so much john chambers the chairman/ceo Cisco Systems good to 142 00:07:38,110 --> 00:07:39,220 see you as always john 143 00:07:39,220 --> 00:07:42,350 Jim it's a pleasure thank you I 144 00:07:42,350 --> 00:07:46,460 this is the kinda stop with good dividend with great growth coming 145 00:07:46,460 --> 00:07:50,220 picture 12 all way through this kinda self-made months back

Roth Or Traditional Account?

1 00:00:08,810 --> 00:00:11,830 no matter how good you are picking stocks you don't know all the Byzantine 2 00:00:11,830 --> 00:00:14,050 rules or kind of accounts to keep your money 3 00:00:14,050 --> 00:00:17,810 or at a manager personal finances well you get the most bang for your 4 00:00:17,810 --> 00:00:21,590 block when it comes to major lifetime expenses 5 00:00:21,590 --> 00:00:27,700 then you could miss you have some terrific gains cost yourself a fortune 6 00:00:27,700 --> 00:00:29,239 in all sorts a hidden fees 7 00:00:29,239 --> 00:00:32,540 that's why every week I take you through my playbook in a segment that is 8 00:00:32,540 --> 00:00:35,730 entirely devoted to teach you how to handle your personal finances 9 00:00:35,730 --> 00:00:39,480 what some basic investing principles in order to get a better sense of what 10 00:00:39,480 --> 00:00:40,920 matters to you I want you to send 11 00:00:40,920 --> 00:00:44,570 all of your questions to Twitter it Jim Cramer with the hashtag 12 00:00:44,570 --> 00:00:48,359 get a plan so I wasn't very good on Twitter today really GM to this market 13 00:00:48,359 --> 00:00:51,859 but I will do my best to get back to you Romy we're at it 14 00:00:51,859 --> 00:00:56,010 it's always worth checking are your money dot CBC dot com 15 00:00:56,010 --> 00:00:59,809 Patrick financial by 6 I think has got to stop this is Pauline is picking 16 00:00:59,809 --> 00:01:03,480 stocks along gala day like today it's not so bad of course you like to know 17 00:01:03,480 --> 00:01:06,870 really could help you build up more wealth than a couple paid stock picks 18 00:01:06,870 --> 00:01:07,180 can 19 00:01:07,180 --> 00:01:11,290 in the simple truth is that I don't want you leaving that money on the table 20 00:01:11,290 --> 00:01:14,610 just because nobody could be botherd to explain say 21 00:01:14,610 --> 00:01:18,230 the finer points retirement investing 22 00:01:18,230 --> 00:01:22,260 vehicles with that in mind here's a question from Mitch 23 00:01:22,260 --> 00:01:28,780 who s and I quote traditional or Wat for 1k for grad starting full time job in 24 00:01:28,780 --> 00:01:30,480 twenty-eight percent tax bracket 25 00:01:30,480 --> 00:01:33,590 wary a potential tax climate when i'm sixty-five 26 00:01:33,590 --> 00:01:36,590 perhaps could use Twitter space 27 00:01:36,590 --> 00:01:39,910 now I don't talk endlessly about the benefits of using individual retirement 28 00:01:39,910 --> 00:01:41,240 account or IRA for short 29 00:01:41,240 --> 00:01:45,500 a 401 k plan a Vesper time I them both and I don't beat a dead horse here 30 00:01:45,500 --> 00:01:49,800 but we haven't really gotten the distinction between a row of the cap 31 00:01:49,800 --> 00:01:53,520 and a regular one and this is something I get on to questions about 32 00:01:53,520 --> 00:01:57,949 should I put my money in a walking cast were should I put one in to rate a cat 33 00:01:57,950 --> 00:01:59,270 and is one of the more 34 00:01:59,270 --> 00:02:04,110 home Mitch just about what 4.1kb only some employers choose to offer these two 35 00:02:04,110 --> 00:02:04,830 the workers 36 00:02:04,830 --> 00:02:08,090 so to set the stage ur let me give you some background 37 00:02:08,090 --> 00:02:11,620 on the beautiful tax paper vehicle known as a walk iraq 38 00:02:11,620 --> 00:02:16,040 which anyone can contribute to as long as they make less than 222,000 39 00:02:16,040 --> 00:02:19,760 your I think that aside from the earned income tax credit 40 00:02:19,760 --> 00:02:21,500 the water are a maybe this 41 00:02:21,500 --> 00:02:24,770 single greatest thing our government has gone 42 00:02:24,770 --> 00:02:28,210 for more income families since the end of the war on poverty where 43 00:02:28,210 --> 00:02:34,490 I'll ask some in poverty one I told you about how a regular IRA let you take 44 00:02:34,490 --> 00:02:35,370 pre-tax income 45 00:02:35,370 --> 00:02:38,470 invested and then your gains can compound year to year 46 00:02:38,470 --> 00:02:42,459 decade after decade totally tax-free until you decide to withdraw 47 00:02:42,459 --> 00:02:46,740 start withdrawing money when you've retired but a Roth IRA works differently 48 00:02:46,740 --> 00:02:51,670 with the wat you make contributions with all after-tax income 49 00:02:51,670 --> 00:02:54,989 so in other words unlike a regular a putting money 50 00:02:54,989 --> 00:02:58,430 into a wall of Walt decrease want 51 00:02:58,430 --> 00:03:01,890 decrease your tax bill on the other no what your money is there what are you 52 00:03:01,890 --> 00:03:03,660 will never pay taxes on it again 53 00:03:03,660 --> 00:03:06,900 as long as you pat your cash remains in a camp 54 00:03:06,900 --> 00:03:11,030 you know pay capital gains taxes not paid in taxes and when you withdraw 55 00:03:11,030 --> 00:03:15,610 which you can do without Pedley after the aged 59 half mean closing in 56 00:03:15,610 --> 00:03:19,489 you don't pay any income tax on your withdrawals in other words with %uh what 57 00:03:19,489 --> 00:03:22,239 you pay taxes now so you don't have to pay any income tax 58 00:03:22,239 --> 00:03:26,239 thirty or forty years from now when you retire there's one more positive point 59 00:03:26,239 --> 00:03:26,920 about a Roth 60 00:03:26,920 --> 00:03:30,320 after five years you can withdraw the money you've invested not you gaze 61 00:03:30,320 --> 00:03:33,870 just he met you contributed and you okay with that nasty 10 percent penalty 62 00:03:33,870 --> 00:03:36,980 which is what happens when you try to withdraw money from a regular IRA 63 00:03:36,980 --> 00:03:41,010 before you hit that magic each up 59 have and when you're close you want 64 00:03:41,010 --> 00:03:44,090 cause you know that don't have it doesn't feel very magical 65 00:03:44,090 --> 00:03:47,980 so music what is fundamentally different from a regular are 66 00:03:47,980 --> 00:03:51,320 with the radio when you don't pay any taxes and contributions now and your 67 00:03:51,320 --> 00:03:53,250 games don't get tax with the kneecap 68 00:03:53,250 --> 00:03:58,019 but once you start withdrawing money every penny you take out as taxes 69 00:03:58,019 --> 00:04:01,739 ordinary income which means that when you're trying to decide between what I 70 00:04:01,739 --> 00:04:04,670 ray or 41 K and a regular IRA or 401 K 71 00:04:04,670 --> 00:04:08,100 here basically deciding whether it makes more sense to pay income tax now with 72 00:04:08,100 --> 00:04:08,610 the roth 73 00:04:08,610 --> 00:04:12,769 or two week pay income tax once you've retired with the regular camp 74 00:04:12,769 --> 00:04:16,570 in other words you have to try to figure out whether you'll be in a higher tax 75 00:04:16,570 --> 00:04:17,238 bracket 76 00:04:17,239 --> 00:04:21,160 after you've retired or lower one office is a complicated question really has a 77 00:04:21,160 --> 00:04:24,060 lot to do with specific severe situation your career 78 00:04:24,060 --> 00:04:27,760 it should be how old you are but my quick quote from for anyone is marginal 79 00:04:27,760 --> 00:04:28,560 tax rate is 80 00:04:28,560 --> 00:04:32,849 25 percent ross 25 percent which is most in america 81 00:04:32,849 --> 00:04:34,409 I think you got the wrong 82 00:04:34,410 --> 00:04:38,230 better take the hit up front nanowire what I rate a compound tax-free 83 00:04:38,230 --> 00:04:39,110 threshold like 84 00:04:39,110 --> 00:04:42,490 remember for those of you who don't have the time to pick your own diverse my 85 00:04:42,490 --> 00:04:44,100 portfolio five to ten stocks 86 00:04:44,100 --> 00:04:47,300 the smartest thing to do is just park your retirement money in a low-cost 87 00:04:47,300 --> 00:04:48,070 index fund 88 00:04:48,070 --> 00:04:52,849 that mirrors the S&P 500 as you get older you can add some bonds but really 89 00:04:52,850 --> 00:04:54,340 into your actually retire 90 00:04:54,340 --> 00:04:57,870 stock should make up the majority view retirement investments I know I said 91 00:04:57,870 --> 00:05:00,760 this before but I'll keep repeating until they take be off the air because 92 00:05:00,760 --> 00:05:02,280 it's so so necessary 93 00:05:02,280 --> 00:05:06,110 it's so contrary to the conventional wisdom all my books say it if you don't 94 00:05:06,110 --> 00:05:08,270 understand I got much longer explanation 95 00:05:08,270 --> 00:05:11,320 back to Mitch's question the idea for Wat for 1k 96 00:05:11,320 --> 00:05:15,070 this works just like a what I read meaning you make contributions with 97 00:05:15,070 --> 00:05:18,909 after-tax income and then you never pay taxes on that money can accept because 98 00:05:18,910 --> 00:05:24,050 it's a 401 k plan is much higher contribution 17,500 per year versus 5500 99 00:05:24,050 --> 00:05:24,720 for iraq 100 00:05:24,720 --> 00:05:28,500 and there's one other big difference you can take advantage a Roth IRA if you 101 00:05:28,500 --> 00:05:29,250 make more than 102 00:05:29,250 --> 00:05:33,400 one earned twenty thousand a year single or 100 said 9,000 you're married filing 103 00:05:33,400 --> 00:05:33,920 jointly 104 00:05:33,920 --> 00:05:37,050 are what following kato has doesn't have any kind of income cap 105 00:05:37,050 --> 00:05:40,370 no matter how much you make you take the banja wanted these as long as your 106 00:05:40,370 --> 00:05:42,220 employer decides to give you the option 107 00:05:42,220 --> 00:05:45,770 now mitch is marginal tax for twenty percent that's the point where I'd say 108 00:05:45,770 --> 00:05:48,280 go with a regular IRA in a regular for 1k 109 00:05:48,280 --> 00:05:51,750 because they let you make contributions with pre-tax dollars so the higher 110 00:05:51,750 --> 00:05:55,930 your current tax rate is the more Baguio fine did not what I IRA or 401 K 111 00:05:55,930 --> 00:05:59,380 but he also says he's worried about where tax rates will be when he retires 112 00:05:59,380 --> 00:06:00,570 say forty years from now 113 00:06:00,570 --> 00:06:03,890 alternate if you believe the taxes are headed 114 00:06:03,890 --> 00:06:07,159 inexorably higher over the course of your lifetime 115 00:06:07,160 --> 00:06:10,950 than a Roth 401 K were you pay your taxes now and pay nothing in future is 116 00:06:10,950 --> 00:06:11,830 the way to go 117 00:06:11,830 --> 00:06:14,740 even if you're making a lot of money in the present I think the person the 118 00:06:14,740 --> 00:06:15,610 police mistaken 119 00:06:15,610 --> 00:06:19,000 for those view young people who only became politically conscious under the 120 00:06:19,000 --> 00:06:20,050 Obama administration 121 00:06:20,050 --> 00:06:23,410 it may seem like there's no way to stop tight higher taxes history says 122 00:06:23,410 --> 00:06:23,930 different 123 00:06:23,930 --> 00:06:27,470 and I believe we can close the deficit without substantially raising taxes 124 00:06:27,470 --> 00:06:31,290 my view not political that back at the end the day though 125 00:06:31,290 --> 00:06:34,570 this is both beyond our control and beyond our ability to predict so here's 126 00:06:34,570 --> 00:06:35,270 the bottom line: 127 00:06:35,270 --> 00:06:38,280 the lower your present income than the lower your taxes 128 00:06:38,280 --> 00:06:43,050 a RAW file for 1k or what IRA what you pay those low tax rates 129 00:06:43,050 --> 00:06:44,150 and net 130 00:06:44,150 --> 00:06:47,810 now net and never worry about taxes again for your retirement money 131 00:06:47,810 --> 00:06:51,250 so the less you make the more likely it is that the waters for you 132 00:06:51,250 --> 00:06:54,949 it's that simple and when you're saving for retirement don't worry about what 133 00:06:54,949 --> 00:06:56,509 bill catastrophically wrong 134 00:06:56,509 --> 00:06:59,860 thirty or forty years in the future just worry about making the best choices 135 00:06:59,860 --> 00:07:01,030 right now 136 00:07:01,030 --> 00:07:02,800 don't move like Rams