00:00

SO I FEEL LIKE -- MANY YEARS AGO. BUT WE HAVE FOUND A LOT OF INNOVATION, ONE IN THE CASE OF SONY, AN ICONIC BRAND. WHEN YOU LOOK AT SONY NOW, VERSUS MANY YEARS AGO, THIS IS NOT JUST A WALKMAN. THEY HAVE A PLATFORM SERVICE, PLAYSTATION, WHICH THE VAST MAJORITY OF PROFITS COME FROM THE CONSUL AND SOFTWARE. FIVE DOLLARS EVERY TIME YOU BUY A GAME. WHEN YOU DOWNLOAD THOSE, YOU GET -- THEY GET $15, THEY ARE IN A MARKET THAT IS TAKING OFF. >> THE GAMING SYSTEMS IS THEIR ONLY BUSINESS, THIS IS A POWERFUL VERTICAL. IT IS A BRAND WITH A LOT OF HISTORY. WHAT ABOUT ALL OF THE OTHER VERTICALS? IS IT VALUE TO SELLOFF THE GAMING BUSINESS? >> IS NOT JUST GAMING, GAMING AND THEIR SECONDARY. YOU TAKE A PICTURE WITH YOUR APPLE IPHONE AND EIGHT USES A SUNNY SENSOR, CARS, THEY HAVE SUNNY SENSORS. AND THAT IS TO 5% OF THEIR PROFIT A YEAR. AND THE MUSIC, WHICH IS GOING TOWARD STREAMING. IT IS TAKING OFF. THEIR OLD AREAS LIKE MOVIES, MOBILE, ALL OF THOSE ARE SMALL PORTIONS OF THE PIE. AND THEY ARE ALSO GETTING OUT OF MOBILE. >> ON THE STAGE, PEOPLE ARE LOOKING AT SONY, WHY ARE WE TALKING ABOUT SONY? >> I THINK THAT WE ASSOCIATE SUNNY WITH OLD BRANDED CONSUMER ELECTRONICS, NOT THE PLATFORM THAT IS EMERGING INTO. AND YOU SEE IT WITH GREAT COMPANIES. >> WHAT DO YOU THINK OF IBM ARE NOW? >> THEY ARE A VERY CHALLENGED BUSINESS AND I SPENT A LOT OF MY CAREER IN SOFTWARE, IF YOU ADD UP ALL THE INNOVATIVE COMPANIES, APPLE, AMAZON, GOOGLE, ALL OF THESE COMPANIES SPEND 15-30% OF OUR INDIE DOLLARS -- RND DOLLARS -- WHEN YOU COMPARE THAT TO HEWLETT-PACKARD, THEY ARE ONLY SPENDING 5-10% OF REVENUES ON RND, SO THEY ARE IN A TOUGH BOW. THEY HAVE PROBLEMS OF BIG DATA AND THE CLOUD, THEY ARE NOT COMPETING AGGRESSIVELY. >> SO ANOTHER ICONIC BRAND? >> WOOLWORTH, THEY ARE A GROCERY STORE. 70% OF BUSINESS COMES FROM FOOD AND LIQUOR. AND THEIR MARGINS, 7 EVERY OTHER GROWTH CHART IN THE WORLD HAS 5% OR 6%. ALDI IS THE MOST EFFICIENT GROCERY STORE IN THE WORLD. THEY ARE LEAN, MEAN AND GOING AFTER AUSTRALIA. >> WHERE THESE HE WILL WORK -- WOO LWORTH GOING? >> WE THINK THAT IT WILL TRADE AT 12 TIMES IT'S EARNING. >> NE AL, YOU THINK IT IS GOING DOWN FOR LIQUOR AND FOOD CONSULTANT, CLEARLY HE DOES NOT COME FOR DINNER AT MY HOUSE. BETTY, DO YOU AGREE?