Apple Forecasts Modest Holiday Sales Rise

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Oct. 28 (Bloomberg) –- Cambria Investment Management CIO Meb Faber, Techonomy Founder David Kirkpatrick and Bloomberg’s Jon Erlichman discuss Apple’s earnings. They speak with Pimm Fox on Bloomberg Television's "Taking Stock.” (Source: Bloomberg)

This is quote he -- "taking stock" for monday, and october 28, 2013. we were focused on business, hollywood, sports and tim cook has the forecast.

Topping analyst estimates.

We've got full analysis of the results.

Plus, former new york ranger, mark messier.

He will tell us why the bronx maybe the next hotbed for hockey.

My producers will once again try to stump me with tonight mystery guest.

All that and more over the next hour.

It is not friday, but here are the latest headlines with carol massar.

Shares are currently down after apple reported.

Margins at 38%. analysts say it will be 36.5% to 37.5%. herbalife reported earnings that topped analyst estimates.

And new england -- norwegian cruise lines beat estimates.

Revenue of the country knee -- of the company trailing forecast.

Those are the top headlines.

Thanks very much, carol massar.

Let's get more apple results with jon erlichman.

He is in new york to my david compact for.

He is the founder and chief executive of technonomy.

He says billionaire investor carl icon is pushing for a $150 million buyback because he wants the stock to go back up and the buyback will do just that.

Jon erlichman, what were the bare bones, the results from apple and what they will do in the next three months?

As you highlighted with carol there, concern seems to be tied to the margin.

The profit margin that the company has going into the holiday quarter.

The revenue ending this quarter is roughly $37.5 billion.

It could generate between 55 and 58 alien dollars.

-- between $55 billion and 58 alien dollars.

Apple talking about 37 .5%. and he gets to the bigger issue with apple.

The company had the early lead in the smartphone race.

It is up against some big competitors who are pricing their products accordingly for the holiday season.

Additionally, apple just got through launching all of these new devices, two new iphones, two new ipads, a couple of mac book pros and the list goes on.

That can take away from your profitability.

We will have more details from the company on its earnings call.

Tell me about apple and the potential for buyback.

$150 billion?

Apple is a good example of why investors need to look at cash in a holistic manner and -- manner.

They have paid these events and also have been doing buybacks.

Carl icahn has been making a lot of noise about wanting it to be bigger, but on a holistic level when you do that with apple, you get into high single-digit yields.

Maybe even a double-digit yield.

Do you own shares of apple?

We own an etf.

It look at this holistic distribution.

Yes, we own apple.

We are happy with it.

We are looking at companies am a regardless of the paid back, whether it is dividends or buybacks, companies that are just great to own.

Apple is a company that spends money on research and develop an and says -- development and says, we will worry about the best products.

You worry about the stock.

They invest a great deal in good products.

And they continue to do that.

The new ipad air, quite significant improvements incrementally, but on a product that has taken over the world and to find a category.

One of the things that i have seen that they have shown in recent months is that without steve jobs, they can do just fine.

They can keep coming out with really great products.

People do say, what is the great category that they will in -- they will invent next?

That is a lot of pressure, but they are doing extremely well.

But they have defined the tablet and it is replacing pc's globally.

Give them credit for that.

Jon erlichman, where are they with technology, whether the fingerprint reader or lightning the ipad itself, is anyone doing the same kind of technology?

Yes, we have seen a lot of innovation from companies like samsung.

It should not take away from what apple has been able to do.

The idea of being able to create tablets with this kind of computing power a year ago, two years ago, many would say, wow, this is incredible technology that allows you to do this on such a mass scale right now.

But apple is no different than it has been in the past couple of years, which is that there are incrementally things coming to this device.

This is a company that just wrapped up its fiscal year in which it generated nearly $54 billion in cash from operations.

Apple is aware of the market opportunity that is in front of it today.

The same conversation came up when the company unveiled its lower-priced iphone, and some said, why don't you sell it for less money?

If apple doesn't think he can sell a certain amount of devices at a certain price point, why wouldn't you do that?

That has been a difficult balance for them because aside from a public company, they are the innovator in chief, the company we look to for the next big technological device.

David compact it -- david kirkpatrick, i wonder if i can borrow advice from you.

They sell a sweet number of products.

It does not take a list to tell all of their customers what they sell.

Jon erlichman said sam sun, and all i can think of that, they have a bitter -- a bigger for flapped her -- a bigger floor factor, but why would they see it as a heavier weight product?

Its stock was around $700 and now it is in the mid $500. one of the great ironies of this whole thing is the company can achieve what people are betting it will.

$54 million in cash.

I mean, come on.

Just as david says, wait a minute, apple generates a lot of money.

But the market is much more interested in what the future is for amazon -- what the future is, and amazon.com is an example.

Would you buy future shares a gecko we would.

When you get to the size of apple, where you are almost half $1 trillion in market cap, you have to reinvest.

-- you have to give the money back.

It is the economics of scale.

Whether carl icahn wins or not, they will do some more serious buybacks.

They have no choice.

If you sorts stocks based on buybacks or dividends, it beats the pants off the market.

If you do it on the combination of the two, even better.

You have a technology conference coming up.

Tell us what it is about.

And also, the effect on apple.

Could that be a subject matter?

We had one on apple, facebook, google last year.

Technology is all about -- technology is all about transformation.

Apple is the ultimate symbol of that.

The pundits of the industry, whenever we are trying to make a point, we reach in our pockets and we always have an iphone and we use it how this incredible technology has dropped extraordinarily in price, sucking all of this value into these amazing little boxes that spare us from the need to spend thousands, maybe even tens of thousands that we used to own, like record players, cd players, etc.

The iphone has 5 million times the computing power of the eight .5 ton computer that sat -- the 8.5 ton computer that sat atop the titan.

Is in that amazing?

-- isn't that amazing?

When does it come out?

Two weeks from now.

Thank you.

We will look forward to that.

Thank you for joining me.

And mike thanks to jon erlichman -- my thanks to jon erlichman.

Coming up, six-time stanley cup champion, mark messier.

Why the bronx will soon be known for hockey, not baseball.

And my mystery guest today.

It is time for clue number one.

You could call my mystery guest a bag lady.

? he was a ranger, and euler, conduct, captain mark messier has returned to the ice, but as a chief executive.

He's bringing hockey to the bronx through the kingsbridge national ice center.

Let's start off with you, mark messier.

Let's start off talking about the bronx and ice hockey.

You are kidding.

Rex that is the question -- that is the question we get asked all the time, why ice hockey in the bronx gecko -- why ice hockey in the bronx?

It is underserved in the bronx.

We did not realize there would be so much demand.

Through it all, we are sitting on an economic juggernaut to come into the bronx and create jobs, and community for the kids.

It is very exciting.

It is the biggest ice complex in the world.

It is something that the bronx and the people that come and there will be very proud of.

When number 11 talks, we've always got to listen to what he says.

Having said that, you've got to raise some money.

Tell us the business behind the kingsbridge national ice center.

As mark mentioned, ice in new york city is in very short supply.

Demand is big and it costs a lot of money to rent ice in new york city.

The capital for this project is coming from a number of sources.

You know, construction loan financing.

It is a landmark going, so it is eligible for tax credits.

And it is in an area of high need, high unemployment, and low income levels.

It is eligible for something called new market tax credits as well.

All of those things bring down the cost of the project.

When do you expect people to hit the ice?

August, 2017. that is a couple years away.

What are some of the things you want to organize in order to make this challenge a reality?

Our fundamental issue is right now trying to get partners, renting ice, taking existing programs that already in play -- are already in play.

Do you want hockey leagues?

Do you want afterschool programs?

Do you want people to sign up and say, yes, we will use the facility?

And high schools and colleges that do not already have existing programs that -- because there are no existing facilities to put them in, we will encourage them to look and see what we can offer them.

But more important, it is for the community to get their kids involved.

We know we will not get every kid in the bronx to play ice hockey, but we think it is a great alternative.

And through it all, by creating jobs through afterschool programs and afterschool mentorships that we have already been talking about, the universities and high schools coming in as partners, it is an exciting project with a lot of different tentacles, if you will, that run very deep.

The community is excited.

I started off by introducing u.s. the six-time stanley cup champion.

-- i started off by interest due seeing you -- introducing you as a six-time stanley cup champion.

Did you have any idea that hockey would impact your life so much?

I grew up in canada, so i knew what hockey meant to me as a young boy.

But when we won the stanley cup in 1984, the story was bigger than hockey.

A lot of those kids could see that they did not have the ability to play because of financial issues or because of lack of facilities.

I think that is a game changer in this area.

It will give kids a chance in the neighborhoods who have never had a chance to skate a chance.

We have a dynamic package that we will put together that will change the landscape of the bronx.

Jonathan, mark messier talks about being a good citizen.

What about business?

What is next for what you want to accomplish?

Won't you call a win-win to get this thing built?

-- what would you call a win when you get this thing built?

The things that mark talked about, bringing in a world youth league championship.

Would you like to see ice hockey in the bronx gecko -- would you like to see major league hockey in the bronx gecko we will have some minor league teams, yes.

Thank you both very much.

We will have more with hockey legend mark messier coming up.

This is "taking stock" on bloomberg.

? this is "taking stock lost -- "taking stock" on bloomberg.

I'm talking with mark messier.

You were the only player in nhl history to captain two teams, the kanucks and the rangers.

The oilers and the rangers.

There were some great players and captains that have changed teams, but to be the only one that has done that, it is interesting.

We are looking at you holding the stanley cup trophy.

Are there other trophies that you wish you had one?

-- that you had won?

I think the thing i missed was playing in the olympics.

When i was at the peak of my career, they were not allowing professionals to play in the olympics.

That came later on.

That would have been very special, to represent your country.

I played in all of the canada cups, which was basically the same tournament, but it was a made for hockey tournament.

All of the same teams, the best teams, those are amazing memories.

I'm glad you mentioned the olympics, because if you want to play in the olympic oval in -- the winter olympics in ice hockey, you've got to take a break, right?

The nhl has to stop season and let the people play.

What do you think about that gecko it is a great debate, actually.

We were the only players that were not professional that were not allowed to play.

I think they changed that.

They are the best players in the world playing.

On the one hand, that is great.

On the other hand, it takes away from the real story of the guys playing hockey and working jobs on the side.

In 1988, they got together to galvanize the industry.

Overall, i think it is the best thing for the olympics.

What about the new rule changes, things like icing, containing the amount of violence in the ring?

I don't think there is a day that goes by that you do not talk and collectively try to make the game better and safer.

That is everyday, from the players to the owners to the commissioner.

Coming out of may 2005 when they had a work stop in the game is incredible.

There's so much young talent on so many different teams.

How are the rangers right now gecko give us a fair estimate.

I like the rangers team.

It is easy to jump on the rangers right now because of the start that they had.

But they had a tough preseason.

We knew three years ago that the work being done on the garden would put the team in a tough position as far as scheduling.

They've got a great goaltender to start with.

And when you can build a team around a goaltender like that -- they have a few injuries, but overall, the team is in good shape.

The winter classic?

I think the winter classic will become the real showcase for the national hockey league, so much so that we have quite a few of them.

The demand is there for it.

There is so much demand in all of the cities.

Why not give everyone the opportunity?

It has become a real show -- showcase.

It has put hockey and it's players in a great night.

-- in a great light.

It markets the players very well.

When will you be skating at kingsbridge national ice center?

Not soon enough.

We cannot wait to get the shovel in the ground and get started.

We are so excited about the project.

We plan to open late 2016, but probably more like 2017. and people can call you -- follow you on facebook and twitter?

Yes.

Mark messier, number 11, thanks for "taking stock." ?

This text has been automatically generated. It may not be 100% accurate.

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