He mentioned three problems: its internal controls over financial reporting, more information on how it reports its cash and where it comes from and the value that resides in its intangible assets.
He said none of the issues are improper, but he said these issues need to be addressed going forward.
Lee turned to Whole Foods (WFM), which was down in after-hours trading after its same-store sales came up short.
Karen Short, an analyst with BMO Capital Markets, said Whole Foods was a victim of rising expectations. She said the grocery chain otherwise posted solid numbers and was the clear leader in its space. She said the company has done a good job in providing customers with healthy, value-oriented food.Lee brought in Irwin Simon, CEO of Hain Celestial (HAIN), whose stock up was 8.4% today. He said the company is enjoying strong organic sales growth. He said his company is doing well because customers are willing to pay a premium for healthy food. He said the recent acquisition of Daniels Group, a chilled foods maker in the U.K., will make it a major player in that country. Lee noted Research In Motion (RIMM) shares fell below book value today. Adami said it might be worth a look. Terranova said he was waiting for a management change and wondered how long Jaguar Financial, a major stakeholder, could hang on. Finerman said RIM's patents are valuable, adding she was starting to get interested in the stock on the buy side. Lee shifted to the Fed's comments today in which it found some evidence of economic strength in the third quarter while it cut its growth forecast for 2012. George Goncalves, of Nomura Securities International, took those remarks to be favorable, saying growth expectations were still positive. He said the yield on the 10-year Treasury note should rise to between 2.5% and 2.75%. With the price of crude rising today above $92, Terranova said it was OK to own names like Anadarko (APC), Occidental Petroleum (OXY) and Suncorp. Brian Kelly added his favorite, Tesoro (TSO), and Adami favored Transocean (RIG). Lee said Avon Products (AVP) has come under fire as regulators are investigating whether it broke bribery laws. Bill Schmitz, managing director for Deutsche Bank Securities, said he still considers it for a long-term investment, although he wouldn't buy it on Thursday. He said the company's U.S. business is broken and its execution has been mixed.
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