Thanks this is "taking stock" for thursday, february 6, 2014. i'm pimm fox.
Focusing first this hour, we got to -- we've got to focus on extreme reaching.
First off, extreme lows.
Michael moore toma has been found guilty of an extreme low.
And performing in a theater in harlem, that is a positive extreme.
We will be discussing the apollo theater and its future.
And what is next after your current career?
Three-time champion bill cartwright explained how he restarted his career after success in basketball.
And getting ready to stomach mount everest.
Executive details about the technology behind extreme climes.
But first, carol massar.
Ain't in is out with its own earnings -- linkedin is out with its earnings.
It fell short of analyst estimates.
The company pointed to a slowdown in user growth.
Fourth-quarter profit heat and amongst -- analyst estimates for activision, though.
And news corp., that's the publisher behind wall street journal, it had a mixed earnings report.
Mixed extra mints, but advertising sales continue to fall.
Broke off from 20 century fox in june, focusing on publishing.
Today, a 12 member jury found fund manager, mark -- matthew mark, hilty of -- matthew martoma guilty of insider trading.
Joining me now, sheila.
She was at the courthouse when the verdict came down.
And joining us by telephone, alan dershowitz, the latest book called "taking a stand." sheila, if you could go through the details in this particular case and the context it was processed and ultimately finding matthew martoma guilty.
It basically came down to their allegation that he had, over a year-and-a-half courted to doctors that were involved in a trial of an alzheimer's drug that was being tested by two pharmaceutical companies.
This is a drug that had a lot of potential.
The market was very interested in finding out whether it was going to succeed.
The government accused march, --martoma of getting details of the drug trial results before anyone else and then making very lucrative trade on behalf of his hedge fund, sac capital.
The government has brought cases against other former sac capital and ploys, haven't they?
Yes, it is a bit of a deja® vu.
They have charged a handful of former sac employees.
One was convicted in december.
He is still working at sac.
He is a portfolio manager.
He has been on leave.
It is clear -- a little unclear what his status there is.
His case was a little different.
He was accused of trading dell and being a part of a ring of corrupt hedge fund traders that were passing along insider information.
The status of his case is that he was already tried and convicted and has yet to be sentenced.
He has yet to be sentenced.
He has said that he's going to appeal.
As is matthew martoma, apparently.
We will find out.
I want to bring in professor dershowitz.
I want to bring -- see if you can speak to the tackle steinberg conviction, but not sentenced and now convicted today, matthew martoma.
What happens to these individuals?
We don't know, but the government may try to get cooperation from these witnesses, and the longer the time extent that there is no sentencing, the more you can speculate that maybe there are negotiations going on.
In order to make a deal, the person has to have relevant information that looks upward.
The rule in america is always to commit crimes with people more important than you are, so you can turn them in and they cannot turn you win.
The problem is, of course, when the government has a sword to your throat, they not only want you to sing, but sometimes they wanted to compose.
They put pressure on you saying, no, that is not enough, you have to give us more.
And the pressure that leads people to tell stories that may be exaggerated or untrue.
Juries tend to look at bought witnesses on with skepticism.
But if the bot witnesses have corroboration and there is a pattern, then the jury tends to believe them.
My advice for the defendant today is, get yourself a very good appellate lawyer, one who the government fears.
So you easily win an appeal, or if you don't and you have to make a deal, you'll get a good deal having a good appellate lawyer, better than someone who was not feared by the government.
The government never expected martoma's case to go to trial.
They felt from the time they charged him in november of 2012 that he would flip and bring them to his former boss, stephen cohen.
And he has baffled all sides by refusing to do that.
Some have suggested that now he could look at some sort of postconviction cooperation.
But my sense is that his leverage has gone down now that he has been convicted.
It will be harder for him to bargain with the government.
I would not agree with that.
I think that the government leverage has gone up.
That does not mean his leverage has gone down.
His leverage will depend on how much he has.
If he doesn't have very much, if in fact, there was a lot of insulation between him and the people the government wanted him to go after, then it will not happen.
But the government's leverage has now increased because he cannot say, let's see and maybe i will not get acquitted.
Now he knows he's either going to jail or making a deal.
He may have to go to jail and also make a deal for a reduced sentence because the government is probably not going to let him walk unless the -- unless he can provide them with a massive amount of information of very important people.
I know what free advice is worth, just what you pay for it.
But having said that, if you are able to sit down with matthew mark, -- matthew martoma this evening and his family, what advice would you offer them?
Get a good appellate lawyer.
Make sure you read all of the instructions.
I know there were questions about some of the instructions in this case, what material mean, what happens if you have a combination of getting information from legitimate research, but also the other information you get inside.
He will not win this appeal based on challenging the credibility of the witness.
You might also challenge the relationship between the government and the witness.
What kinds of discussions are between the lawyer and the lawyer for the witness?
I know that the judge gave some of that information.
I would say, don't lose hope.
This may be your last chance to make a deal.
Some are saying, i will not make a deal and others say, i can't because i don't have enough information.
And some say, i will talk.
I will make up stories.
The first new do is to sit down with the client, outside the presence of his family, because he will not tell you the whole truth in front of his family.
He might tell you that without his family being there.
Sheila, the government record so far, not just at investigating sac capital individuals, but other insider trading cases, it's a pretty good record, is in it?
They send out a statement this afternoon saying that he is the 79th conviction, or guilty plea, that they have gotten in this crackdown on insider trading.
They were very concerned about preserving this perfect record that they have, and they were feeling very confident about this case going into it.
There were some on that side that were expecting a verdict very quickly, and it took a little longer.
15 hours, something like that.
It started two days ago and was broken up into chunks.
It really was not that long.
But there were some on the government side that thought it would happen in one day.
The government is worried about its win and loss record.
The government should never be worried about that.
It should only be worried about doing justice.
I want to thank you very much, professor alan dershowitz.
He is the author of the new book "taking the stand.
-- "taking the stand." sheila, i much appreciated.
Coming up, net income nosedives from a year ago.
The company cites slower user growth.
? flex first -- linkedin reported quarterly earnings today and then income had fallen.
But sales when it's -- with his talent unit rose.
The company uses something called the matching technology to connect job seekers and employers, or really anyone that has the right skills.
For more, i want to bring in colin gillis and richard lipstein . gentlemen, thanks for being here.
Colin, i want to turn it over to you.
What are the results from a stock market perspective?
If you are an investor in linkedin, you have to be aware of the fact that this is a very volatile stock.
You will have ups and downs.
82 days of the last year it has been up or down two percent or more.
37 times up, 35 times down.
A lot of volatility.
It is down after market because they only beat by a penny and there is concern.
Paid revenue growth is slowing down.
The beats are getting smaller.
That's what happens when you are little company becoming a bigger company.
But the reality is, linkedin still owns the economic graph.
That is the perfect segue.
Do you know what an economic graph is?
I have an mba, but the economic graph i will leave to the experts.
You have a path in life and you have the school and that job.
But facebook is who you're friends with.
The economic graph is how you generate income.
If you follow a person's path, you can generate a similar type of economic value in your life as they have.
That is what linkedin offers.
That is why recruiters and users are interested.
And the other point you mention, unlike facebook or twitter where the primary revenue stream is advertising, linkedin has three diverse revenue streams, and they are all growing at healthy clips.
: just described this as -- colin just described this as a place where people live their technical careers, professional careers.
It used to be you had a filing cabinet with files of people who sent in their resume and you looked in the filing cabinet.
This is like an electronic filing cabinet that gets refreshed and it automatically edited for you.
Is that longevity really coming to the world of recruitment?
You create a social media presence by being on linkedin.
What linkedin has done for the recruiting world is make it easier to find people.
Able create their image on the internet just as they create the image on a resume.
But it does not answer whether a person is qualified for a particular job and what their motivations to leave where they are and what it is about then that goes beyond just being a piece of paper.
It does not allow that interaction to happen -- doesn't it allow that attraction to happen more directly now?
A company can say, i want these backgrounds and talents.
They go out and press a button and there are 50 people who may not even be looking for a job.
Tell us about that.
It is data analytics.
It is mining.
If you think about the beauty of linkedin business model, they have a fast-growing network.
And on a valuation faces, right between twitter and facebook -- which is the better value?
They are all pretty rich.
But on an absolute basis, linkedin is $25 billion.
I don't want to say only $25 billion, but it is the smallest of the three, even after twitter's pullback today.
Twitter is around $27 billion and facebook is around $58 billion.
And you think with this acquisition of bright this justifies the $25 billion?
It gets back to the economic graph that it could ultimately be more viable than even the social graph.
Who you work with and how you can go about improving your career -- because people also get to endorse you for things.
That stays with you for your career.
Linkedin is the professional website.
There are others -- but for the moment it is linkedin.
Those are becoming the myspace of the social media space.
Thank you for joining us.
Coming up, how to build your body for endurance.
Athletes turn to altitude training for edge.
You will make -- meets the company that helps them.
? imagine taking responsibility for getting amateurs up the face of mount everest.
This company cut -- does just that.
In our new series, small to big, he told me how he was able to trust the safety of his clients before he made his business larger.
It is a small mountaineering guide company and we focus on bringing people all the way from very little mountain climbing background all the way up to the summit of kilimanjaro or mount everest.
In this world we are so busy and having an opportunity to go where nature and amounts are in control is powerful.
I started out the glow -- alp englow expeditions myself and i still read every expedition we went on, so it was hard to grow the business.
The hard part was learning to let go and allow other guides to run trips.
There is risk involved in what we are doing and potentially an accident could happen in the mountains.
In 2011, we were attempting to go to the summit of mount everest and we got about 23,000 feet and the weather completely turned.
Or you could have a large avalanche that could shut down the route.
You might have to camp for the night with almost no equipment.
That challenges very visceral.
It can be hard to sleep, hard to eat when you don't know -- when you don't know what is happening to your team.
Going through that and being willing to give a little time, to give trust is hard, but it is something i've learned a lot about.
It has allowed us to offer trips to so many more people.
When i ran the company, i ran around six or seven international expeditions.
In 2014 we led somewhere around 40. and 300 clients all on a path to potentially go through a much bigger mountain in their future.
In alpnglow's future, they have turned training and equipment to hypoxico.
Clients include professional athletes, mountain climbers, navy teal -- navy seal team six, the team that killed osama bin laden in pakistan.
This was a fascinating story to look at, because you don't necessarily just train athletes.
You train people that need to deal with very extreme circumstances.
That is absolutely right.
The company was founded and came to using low oxygen air as a way to simile eight high altitudes and we were able to use chambers and masks to prepare people for high altitudes while being at sea level.
Why do you want to prepare for high altitude if you are lebron james, a for example you could what they are trying to do is train for endurance.
If you are training at high altitudes and then you are back at sea level, your body is that much more efficient at using oxygen.
You tell me that you play basketball, right?
You like playing sports.
Is that connected with runners who are marathon winners?
They have typically trained at high altitudes.
Is that the kind of thing that you are giving people the extra boost for?
Any sport or activity that involves consumption of oxygen can be enhanced through this type of equipment.
What is the basis of the business?
The equipment, how much it costs, all of that.
The quitman is anywhere from small low oxygen compressor systems that can be used at home for personal use, or even large chambers or rooms in which we put low oxygen air.
Thank you very much, math formato of hypoxico.
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