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tv   Mad Money  CNBC  July 17, 2012 6:00pm-7:00pm EDT

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>> weird. totally. i'm melissa lee. see you tomorrow 9:00 a.m. "squawk on the street" back live. "mad money "with jim cramer starts right now. i'm jim cramer and welcome to my world. you need to get in the game. those firms are going to go out of business and they're nuts. they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money" -- you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is not just to entertain you. but i'm also trying to educate and to teach. call me at 1-800-743-cnbc. look, i feel it. fell felt it all day. i know it's timting. you throw up your hands and say who cares about stocks? they're corrupt. they're controlled by greedy
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rich people. today's action, a little break. decent. but rallies have become a few and far between exercise. we were down 6 of the last 7 days coming in. the last seven straight mondays. who the heck needs any of this? turn it off. one big waste of thought. that is the prevailing wisdom out there for everyone i talk to and man do i ever talk to a lot of people. i don't know, though. i got some trouble with the totally corrupt thesis that says it's rigged, it's not worth it. the big guys have too many advantages versus you the home game. i'm stuck with glaring facts hooer about how much the stock market is hurting you. maybe you're stung by the gain in apple. it's hurting you, right? no. you're probably feeling it from that 53% drop in gap price ps.
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the 20% profit in target is probably hurting you, right? verizon is only up 14%. at&t a paltry 18% return. only nine times what the bonds do. i suggest you may be drowning your sorrows in a budweiser, up 27%. why not knock back a jack daniels, made by brown foreman. at least you can brush your teeth with the stuff. it's up 20%. go with johnny walker black. zoomed 28%. corona, just guzzled a 21% gain. they all leave you cold, you don't want that kind of money. that's not worth it. maybe go to wells fargo because it's make you that miserable 24% this year. i don't know. to me, those are convincing and highly visible gains. gains that do make me want to
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stop apologizing for this market. the market does not need an apology. yet the disgust is so palpable i can kbarly read twitter. yours truly have become a symbol for stocks. stocks are despised. so tonight, i want to turn the tables. i'm going to define your anger and define your anger's worthlessness. as much as it has merit, it ain't making you any money. i know how much you loathe stocks right now because tomorrow in our conference, i'm interviewi ining berarra, the attorney for the southern district of new york. he's become the defacto sheriff of wall street. and in preparation for the
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interview, i've read his speeches and reviewed all the high-profile cases he's brought, especially raj rajaratnam. we won these cases, but you can't help feel that the cheating and the lying and stealing is incredibly widespread, inacademic even. and that it can't be possibly stopped because of the total last of conscious of even the richest people on wall street. and other than berrara, by the way, i don't see prosecutorinss bringing any cases. no one went to jail. they didn't go to jail for robo signing. unless berrara looked into them, they got away scot-free. does crime pay? interesting question. when you read about the libor
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scandal. a bunch of rich traders sat around and rigged the most important benchmark of interest rates on earth and did it with a level of impunity that would make the mafia jealous. didn't tony have a good sense to go to a doctor to get his fixes in. just yesterday we got a huge story that helped get a heads up of what's downgraded and upgraded. is there anything that isn't known ahead of time by anybody who is rich? you know how corrupt things have become? there's a new multibillion dollar investigation into laundering on hsbc. it didn't register until guy adami asked me about it. when i think about doing the laundry, i used to think gtl, gin tan laundry.
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now when i think of laundry, i should think of hsbc. jpmorgan lost $5 billion. $7 billion? i don't know, something. because some guy, people called the whale fooled jamie dimon. the whale. okay, great. you wa who the heckn't whats to be worried about the bank you keep your money in? it's not just the chicanery, it's the helpless feeling that comes with every single politician on earth and every single central banker in other words to figure out what to do. the mark saskatoon swooned when ben bernanke made it sound like he wasn't going to do anything. the market was getting hammer pd .but then it soared when he said he might do something. that's what with edo? that's what we trade? that's when we're not trading off the fiscal cliff. watch this european fiasco unfold is like betting on a game
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and you don't even know the rules. yet so many seem to know the outcome ahead of time. and the stocks people can't get enough enough, they aren't the win percent no, everyone seems to know own research in motion down 53%, zynga, minus 51%, or facebook, already down 21% from where they were a month ago. no wonder everybody is so angry, right? people cement to buy when it's u up, sell when it's down. every so often i find myself for under attack being mr. stock market. i try to find the bull market people don't seem to care about. i come out here to talk about how this business works to help you. what else is my m.o. here? frankly, the at&ts, the gaps and the walmarts, i d tire of
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depending the asset class. yet i admit at times i don't like talking about stocks anymore. because in these days it's only done in the context of the politics and crime without punishment. and have it yolic unbridleded a homonym attacks against me. but the bottom line, as long as there's money to be made, i am not going to stop telling you how and where to find the winners. the anger, the ennui, they make me redouble my tefrts. they make me work harder to see the opportunities because they are there. and the bad guys, there just aren't enough of them and they're not powerful enough to stop us. let's go to don in oregon. don? >> caller: hey, jim. greetings from partly sunny portland, oregon. >> what's shaking, partner? >> caller: i was considering hasboro, has.
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it's well off its 52-week highs and a big revenue catalyst coming up with the "gi joe retaliation" movie. it has a yield north of 4% which has increased by 20% the last three years. great free cash flow and return on equity. what do you think about hasbro. >> i like hasbro, but you're attracted to the fact that matel had a great quarter. i would rather watch matel come down and pick up matel. that was a great quarter and hasbr oo was the one down in previous quart pers . rich from my home state of new jersey. rich? >> caller: boo-yah, jim. mosaic was up 5% today. fertilizers have run a long way in the past three or four weeks. what do you think of a small corn fertilizer named rentech nigh to general partners.
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>> you have to go to the potash here. by the way, this corn crop is going away in this country. and people don't talk about it enough what is happening. and the farmers can't go buy farm equipment, but fertilizer is going to be king. and as much as i don't like to recommend red hot stocks, potash is going higher. i feel it, i sense it, it ain't making any money. throw barbs at me, okay? throw them at the market. as long as there's money to be made, check the anger to do some buying. "mad money" will be right back. coming up, fun times ahead? it might be a roller coaster market, but shares of amusement park operator cedar pear has risen 52%. cramer is buckling in and taking a ride with its ceo just ahead.
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and later, reading between the lines. cramer is put on his "mad money" corrective lenses to show you how to get the 20/20 investing vision that could lead to pr profits. plus, satisfy your craving. could these tasty stocks bump up your portfolio? cramer is putting this menu to the test when he goes off the charts. all coming up on "mad money." [ female announcer ] want to spend less and retire with more?
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>> upt to look at what's working, take a look at the high list. i wliek to look at the high list
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and wait for a pullback. take cedar fair. simple, fun. a glorious 5% yield. it announced that year to date revenues were up 5% from a year before. since then, the stock hasn't looked back, rising 3.2% just today. cedar fair has already given you a spectacular 99% return. hoping for a little bit more so we could say 100 today. that's including reinvesting dividends. there could still be a lot more upside here. not only are they giving us the domestic security here as well as growth and a monster dividend. it's also growing the payout at an incredibly rapid pace. cedar fair would yield nearly 6.2% at these levels next year. i'm thinking $2 might be actually pretty darn conservative. we'll find out. this is exactly the kind of
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stealth winner that i want you to know more about. why i like this stock so much. which is why i'm thrilled to have the president and ceo of cedar fair here tonight in studio to talk about what's ahead for his company. welcome back to "mad money." great to see you. here's my thesis. the market is not a perfect place. the reason i say that is you have been most vocal about what you can pay out and no one believe i don't say uh. why is there such a disconnect between what you were saying? >> i think we're just early in the story, right? we put our plan it in january and we said we'll target $2 or more next year. and the reality is $2 is simple math. we did really well last year. as you saw in our may or july announceme announcement, we're doing well. and our debt service cost is $50 million less, which in and of itself is another $1.
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we feel good about the north of $2. >> you know, i believed you immediately and booked you on. but there's so much skepticism, given that it's arithmetic. >> again i think it's back to understanding who we are. 11 amusement parks across the country and just a basic model where mom and dad brings their kids and has after great time at cedar point. >> now, you also got some things you're changing. e commerce, a line system where people can do better than other people. what does this mean for business? >> i think it means upside, right? we talk about seg meanting our consumers. there's a benefit-oriented consumer who wants to buy up, right? they buy the front ticket in the concert, first class on the airplane and they want to wait a little less in line at our parks and it's been very successful, of course. >> your level in confidence on a
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$2 number in a business where i'll be candid, another fellow, i won't mention names, but told me not to worry about six flags. i have been to six flags a number of times. then the weather got bad and then things went wrong and there was a closure another the park. your level of certainty is off the charts versus six flags. is it because you've got more confidence that even with weather problems you're still going to make the number. >> look, there are extreme weather situations every year. and on average, they balance themselves out. we believe provide the best day of the year experience for the consum consumer. great value to the consumer in a difficult economy and we'll do fine. >> a lot of your parks are what i call a good hour, hour and a half drive. we used to have to drive 40 minutes. i was lucky. how important is the decline of gas. >> it helps in in-park spendinging. if it costas little less to spend the gas, dad is more likely to spring for the game or
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merchandise. >> there are always theme parks for sale. are you always on the lookout? >> we're always on the lookout, right, but it has to be a great poork where we think we can make a difference. there are fewer and fewer of those, but our eyes are always open. >> how much does it cost to build a theme part, it's a little out mof whack, isn't it? >> it is out of whack, but you haven't seen a new successful amusement park built in this country in the last three decades. >> why is that? >> too much land, too much cost. >> what did you learn from disney that you apply to your job? >> attention to detail 37 and people make a difference. it's all about having quality people work for you that want to take care of guests and wake up in the morning and do it all over again. >> you have prebookings. i can't give away stuff you're not allowed to talk about, but if you had to look at
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prebookings for the rest of the summer. coming along? >> the best is season pass sales. what i can tell you is every single park we have is offering season passes the last year. and most of the parks are at railroad levels of season passes so far. >> do you think part of that is people doing stay-cations? >> it's simpler. right? we like to see having fwun should be fun. and if you can avoid the airline trip and the luggage and all the other issues, driving to your local amusement park, i think staycation is here to stay. >> disney had success expanding to cruise ships. your brand is getting a reputation as a fun brand. not just a stock symbol. are there other things that are in the realm of what you could do, brand extensions that i'm not thinking of that you might be thinking for 2016, 2015. >> we're focuseden omaking the
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existing parks great, but getting a reputation for great fun is something you can do over time. >> what are the rides that are most extreme? what are the ones that go together. your place i regard as a family place. i have never been fletenned. you know there are other parks where you feel a little bit outnumbered by tanlers. >> we talk about a social mix in our parks. it's great to have teenagers and also mom and dad with young kids. one of the things we do well, i think, is having coasters that are the beginning coasters, if you will. you road this one last year, you're a little taller, and now you can ride this one this year. then they earn their way up. >> there are parks you feel like you take your life in your own hands on every single coaster. >> i think everybody in the industry is doing a pretty darn good job. >> what a great yield.
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you've been terrific, a man of of your word and then some. fantastic job. that's matt ouimet, one of mur best recommendations ever. and it ain't done. stay with cramer. >>. co-ing up, a big headline you've probably read. cramer is putting on his "mad money" corrective lenses to show you how to get the 20/20 investing vision that could lead to profits. and later -- satisfy your craving? burger, pizza and doughnuts. they might be bad for your waistline, but could these tasty stocks bump up your portfolio? cramer is putting this menu to the test when he goes "off the charts" all coming up on "mad money." i don't spend money on gasoline.
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i don't have to use gas. i am probably going to the gas station
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about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how to put gas in my car. ♪ a lot of professionals in this game only pick up the business section of the newspaper. if you want to come up with great stock picks, you need to look beyond the business pages. instead you have to read through, yes, indeed, the whole darn paper. sometimes there will be fabulous
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i think thises hidden in plain sight and easy to spot as long as you know how to connect the dots. take this story, this is ripped from the front page of today's "new york times." rise in pill abuse forces a new look at u.s. drug fight. this article was about how the war on drugs has become almost irrelevant thanks to the rise of prescription drug use. apparently most drug use these days isn't is in cocaine addicts or heroin junkies. it's prescription drug, especially painkillers. more than 54% of overdose deaths since 2008 have involved a prescription drug. that's more than every other illicit drug combined. this article is good. it does a good job of making you feel maybe rather than spending millions of dollars of blowing up villages or fighting cartels,
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we should treat this as a medical problem and get prescription drug addicts the help they need to recover. get them out of the jails. it's all well and good. what does that have to do with making money. simple. the "times" piece gets you 90% of the way there. you need me to fill in the blanks, connect the dots. near the end of the piece, the authors cite the director of the national institute of drug abuse saying this is a problem that urgently needs to be solved. what they don't tell you is, it has been. there's a solution. it's a drug called vivitrol, made by a small biopharma company, alkermes.
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of an opioid addict gets clean, you can give them a vivitrol shot once a month. it blocks the receptors in your brain. in other words, it makes it effectively impossible to get high off of opioids. that's a huge step up from the old standard of care where patients have to take the drug daily and what they're taking is just a different open oioid tha less dangerous. how big is this vivitrol opportunity. about 1.6 million people in this country are addicted to opioid drugs. three fourth of them will seek treatment. it could actually be a use money saver for state governments.
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chris christie is saying how bad this is. they're spending fortunes treating these opioided a diktds in prisons. not everybody is clueless. the state of maryland just cited a study that found that vivitrol was more effective and didn't cost any more money. this is a miracle. 9 best method we have in the modern day world of drugs. based on the "times" article, i think alkermes isn't getting enough credit. they submitted to the fda for a new drug. you could probably say alkermes gets you coming and going. i love pit . they figure od out
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diabetes drug that only needs to be taken once a week which the company developed in a partnership. how valuable is it? s by bristol myers agreed to buy it after a bidding war. this is a big deal for them. you better believe that they will get a main boost from bristol myers. which means more royalties back to alkermes. they also produce an anti-psychotic drug. the company is work on a long-acting version of another polar anti-psychotic in phase three clinical trials.
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again, these people forget to take their drugs or they don't think they need them because they don't know their minds. this one sells for 17 times earnings. alkermes is down 15% before we knew their drug would be bought by bristol myers. investors aren't connecting all the dots. or maybe they're just playing sudoku with their paper or something. we, on the other hand, see the whole ch when he will picture and know that alkermes is the answer. every now and there will be a fabulous idea hidden in plain sight, like this story that pretty much screams buy alkermes. except i think we were the only ones who heard it. scott in texas, scott. >> caller: jim, boo-yah, home of the houston, texas, the football team of texas.
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>> future home of jeremy lin because new york doesn't want to play up. what's up? >> caller: bmy. >> bristol myers. >> caller: do you feel this will have a favorable or unfavorable effect on the bmy shares if they are, in fact, successful in their effort to make the acquisition? >> i think it's huge. i was in mexico talking about how brilliant this acquisition would be. it will help deal with the patent cliff. bristol myers is one of the greatest companies in the world. i want to go to chris in new york right now.
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>> caller: how are you, jim in boo-ya h. i would like to know about orex they arapeuti therapeutics. >> these are all battlegrounds. and one of the things that i said about vivus that was very clear was if you owned it, i would sell half of it. this group is very volatile. if you want to speculate, i'm going to bless it, but just don't be greedy. ed aing between the lines to find investing ideas is one of the greatest things we can teach you on "mad money." alkermes stands so wh-- to benet here. coming up -- satisfy your
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craving. burger, pizza and doughnuts. they might be bad for your waistline, but could these tasty toks bump up your portfolio? cramer is putting this menu to the taste when he goes "off the charts." all coming up on "mad money." according to ford, the works fuel saver package could literally pay for itself. jim twitchel is this true? yes it's true. how is this possible? proper tire inflation, by using proper grades of oil, your car runs more efficiently, saves gas. you could be doing this right now? yes i could, mike. i'm slowing you down? yes you are. my bad. the works fuel saver package. just $29.95 or less after rebate. only at your ford dealer. so, to sum up, you take care of that, you take care of these, you save a bunch of this. that works. trick question.
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it is time for the lightning round. you give me a stock i'll tell you buy, buy, buy, sell, sell, sell. you'll hear this sound and the lightning round is over. vinny. i'm going on there in a few. what's going on? >>. >> caller: you've been a cash cow for me with some of your picks. what happen about ew. >> this is a solution for people who don't want to have open heart surgery. that's why i'm not giving up on it yet. everyone on wall street gave up on it except for us. chris from my home state of pennsylvania. >> caller: thanks for having me on. boo-yah from pennsylvania.
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everybody's hometown. >> you gebet, you bet. >> caller: i want to talk about mark west, mwe. >> another one of my favorites, 52-week highs for enterprise today. let gee let's go to drew in michigan. >> caller: this is drew from east lansing, michigan. >> that rocks. >> caller: my question is about brunex holdings. >> they do have some intellectual properties. i am not against it. >> buy, buy, buy. >> tom. >> i have a boo-yah for you in scranton, pennsylvania. >> i hope the economy is doing better there. i have a lot of relatives there. what's up?
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>> caller: your thoughts on exel. >> it's one of our buy bio spec plays. as long as you know it's a spec, it's fine with me. >> caller: hey, jim. alaska airlines. alk. >> i used to like one. i used to say if you have to buy one, that's the one. but now it's u.s. air. nathan in wisconsin. >> caller: boo-yah from wisconsin. >> what's snup. >> caller: i just wanted to know if i should sell and take the losses or stick with ken ross gold. >> i like gld.
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evan 2in tennessee. >> caller: a big boo-yah from memphis, pennsylvania. tennessee. >> caller: i need to liquidate to play for tuition. >> i would ring the register. the tech group is not so great here. it's scattered, and i think this stock could go to 21, 22 and you can buy it back. but i would ring the register. >> caller: john in florida. the stock i would like you to take on is polycom. >> the video conferencing business is hard as all getout. even cisco has had a tough time. i say ixnay. drew in north carolina. drew? >> caller: a university boo-yah to you. facebook, fb. >> all i'm hearing is bad. all i'm hearing is the mobile
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app scene is bad. the clip rate is negative. right now, it is yelp, it is groupon, it is zynga. i know those are making money. and those aren't making money and this one is, but i do worry about it. just scared of it right now. okay? >> let's go to john in the illini. john? >> my stock is conoco phillips and the juicy dividend. >> we're going head to head on this. i think we should pull the trigger and buy cop. i like the yield, i like the upside. to me, conoco phillips is a -- >> buy, buy, buy. >> and that is the conclusion of the "lightning round." >> the lightning round is sponsored by td ameritrade. rse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary.
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and save you up to thousands in out-of-pocket costs. to find out more, request your free decision guide. call or go online today. after all, when you're going the distance, it's nice to have the experience and commitment to go along with you. keep dreaming. keep doing. go long. we're very much in this tale of two cities mode, it was the best of markets, it was the worst of markets.
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this landscape still gives you plen to of opportunity to profit. even though we've been sduk in a range, called a rut. there are entire sectors thriving here. many of the restaurant stocks, for example, are absolutely on fire. which is why we're going off the charts to find the wipers. a very smart technician, ponce points out westbound the past week, we've seen a series of major breakouts in the restaurant group. papa johns, jack in the box. and cracker barrel did the same thing. ponce likes all four of these stocks. but what if we want something that hasn't run quite so much. something that isn't already at or within striking distance of new highs? well, ponce has not one, not
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two, but three not particularly healthy ideas that he believes could give you some pasty profits. mcdonald's, dunkin' brands and dominos. it's what he calls the homer simpson portfolio. yep, burgers, doughnuts and pizza. we made a chart. take a look. see the breakout. this is the 52-week right here. well, let's just say that's ridiculous. but that could help you make some dough, though. they may not be the kiki ingredients of a well balanced diet, but you could benefit from a delicious bull market. we're perfectly happy with pro obesity stocks, as long as they look like they can make us money. that's why ponce digs these
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names in the homer simpson portfolio. let's start with the burger part of the equation. take a look at the daily chart of cramer fav mcdonald's. remember, goldman downgraded it at 85. in iway, this stock has been very much out of favor the last three months. currencies and commodities going the wrong direction. ponce thinks it's pulled back to a level that's buyable. what's changed? why does he think it's ready to reverse its downward trajectory even though its ceo is relatively untested? it's made an inverted head and shoulders pattern. not because it looks like an upside down bottle of shampoo, but because it looks like an upside down person with a head sandwiched between two shoulders. charters fear a regular head and
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shoulders formation because it's and i case a stock is about to take a turn for a worse. but an inverse is just the opposite. it's a powerful technical indicator that a stock has bottomed and could be ready to run. however, this doesn't necessarily mean anything until the pattern is complete. so when mcdobld's broke out above what's known as the pattern's neckline, just last week, confirming that it's for real, ponce considered that an extremely extremely bullish development right there. ponce thinks the momentum should take mcdonald's substantial higher. how high? he sees it going to 97, 98 in the not so distant future. next item in the homer simpson portfolio, dougnuts. why does honce favor duncan?
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it was downgraded today. those guys got up on the wrong side of the kurig. blue, 50-day moving, then it rocketed higher. we have seen this happen a number of times. every time the stock trades back to that 50-day moving average, it rebounds like crazy. and that makes ponce think this moving average is a powerful floor of support. he estimates the stock will be a screaming buy the next time it pulls back to these levels. right now, the average is at $33.50, $1 below where it's currently trading. if it comes down $1 from here, ponce says you should buy it hand over fist. last but not least, sdom know's. -- domino's.
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took a real bruising falling from it march highs. it's been clawing its way back up and the stock is now at two-month highs. ponce thinks it could be on the verge of a major breakout right here. the reason -- domino's has produced cup and handle pattern. in june, domino's bought them, making a pattern that looked a lot like a cup. and then it traded sideways that looks like a handle. it's one of the most reliable technical signs that a stock would be about to rally and rally hard given that domino's picked up steam last thursday and friday and tacked on another 94 cents or 3% today, ponce believes we could be witnessing a significant move higher. the restaurant stocks are smoking right here. and this could be a terrific time to stock up on the stuff that's really bad for you healthwise.
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ponce thinks mcdonald's and domino's pizza are worth buying right here and he says you should double down on dunkin' if it pulls back from this point. these three excellent companies, stocks that are very much worth owning, especially mcdonald's, which the charitable trust has been buying aggressively under $90. stick with cramer. [ male announcer ] at scottrade,
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>> will marissa meyer be the savior of yahoo? this is a tough one. i thought levinson would be terrific because he understood the need to be disciplined. something that yahoo hasn't been known for since it was yahoo. perhaps it's a function of the need to compromise to generate revenue, as the web isn't necessarily the easiest place to make money. the ad guys have just taken over. sometimes i long for the simplicity of the old google. a white screen with a blank space where i type in a question and i get an answer that i trust. it was only after marissa meyer that won the job that she was
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the inspiration. turns out that i again had stumbled on the work of meyer. there had to be a ton of people involved in the process. yahoo, partners with cnbc has plenty of cashing out to do. it like aol suffers from an incredible lack of cool. you think you're click on something that you never would have read at the news stand or trusted at the library. it's known as a tough place to work. maybe she can change that, too. yoened that, they have a ton of assets. unlike aol, i still use yahoo constantly. it hasn't lost loyalty and man,
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its speed is still breath taking. that said, it's no social, no mobile and no class strategy, so meyer is going to have to develop all three immediately. i hope she'll unite the company and make technological changes that yahoo needs. yahoo most of all needs someone to stay the ceo. anyone. at least for a couple of year ps . if she can simply full that off, i call it a job well done, no matter what else she does. stick with cramer. sitting on the sidelines because of all the uncertainty in the market? >> thanks for turning my portfolio from mean to green. >> that's what i want to hear. >> with over 25 years of experience in bull and bear market, let coach cramer show you how to play to win. >> "mad money" weeknights on cnbc. this man is about to be the millionth customer.
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would you mind if i go ahead of you? instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense.

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