tv Mad Money CNBC April 26, 2013 6:00pm-7:01pm EDT
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>> all right, i'm melissa lee. thank you so much for watching. our time has expired here. i can't believe i'm going to say this, but on monday, find me on twitter. i'm going to start on monday at 5:00 on "fast." check out our website, as well. see you back my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull work in summer, i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. before we make friends, i'm going to try to make you some money. my job is not just to entertain you,ç it's to make you money. call me. 1-800-743-cnbc. corporate earnings dominate the action right now, crowding out the endless news flow from
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europe and china, uncertainty from wall street, though, from reports from amazon last night and starbuck, but applause for gargantuan hoemd home builder dr horton. it caused the dow to gain 12 points. s&p back slid 1.8%. nasdaq down .33% him whenever we hear that earnings season has been downbeat and i'm hearing that a lot, it makes me cringe. there's nothing so uniform or homogenized about earnings season that these statements can hold water. you see, there are two trends about how the earnings reports are shaping up in april. the first is that if the company does a tonne of business oversea, it most likely is disappointed, but if most of its business is domestic, it did darn well.
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the second is that even within individual sectors, we saw tremendous disparities to performance depending on execution. procter & gamble, for example, could not go over the choppy environment, but colgate prevailed pretty much everywhere it operated, which is why one went up, oneç went down. this time of economy will be hardy next week. let me get the companies we have not yet heard from. we have to keep that execution prism in mind when we preview next week's game plan. oh, we do have solid interventions, too. you know how they make it so difficult, we got to throw them into the mix. you should be well versed in one of monday's earnings reports, because that's when bwld, buffalo wild wings delivers its news of the quarter. we heard from sally smith, the at villanova business school yesterday. a lot of people told me they liked the show, thank you so much. remember, bwld isn't in sports
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bars, they will confirm the stocks dramatic run. buy it. why not wait? housing place are hot. but europe is not, which makes anything kitchen and bath a tough caller. that's because a quarter of the company's revenues come from overseas. and you want the least exposure here which makes masko let competitive than say sherwin williams. we feel passionately about trucks on the show, international commerce is now dominated by chinese orders. hence, while on tuesday, we would pay close attention to jk engine maker cummins which despite its location in s columbus, indiana, is the best transporter than say perhaps caterpillar, peoria, in the business. i expect some softness this year, but not enough to run
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from. we have buffalo wild wings, i like it. masko a little too high. couple members getting to high. getting a pattern going here. remember a portion. pfizer may have gotten knocked for loop. when last night the europeans had approval for a drug. i think on tuesday we will hear many good things. it remains a slow goer. lipitor, extremely, done extremely well. we will also have the first earnings report. this is what i can't wait to hear from newly public zoetis. given this is a red hot business, i bet they'll deliver a good quarter. you. consistency? how about tanger, slow and steady wins the race. the regular guest, ceo, has increased dividend boosts and earnings increases. i expect nothing less from this terrific company. wednesday, we'll hear from a
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pharmaceutical company that had tremendous growth, that's allergen. it parlayed into a pipeline within a product. it's given us a fabulous return that it sells off right when it reports. so let's doç this, i'll wait until i hear more until i do some buying. that's when one tends to get hit. people don't understand it. the steady stocks are responsible for the bulk of this year's remarkable run. one of the unsung stars here is color objection, which rally -- is clorox. companies that buy back stocks increase dividend and deliver strong performance for people who run the company, the ones that really own it the shareholders. ceo will tell you. it will be hard to pull up from that stock. why don't you do this? i'd wait until after the report as i said for allergen to initiate a new position. we also hear from one of my two favorite speculations from 2013
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on wednesday. that's raidian. -- radian. no one seemed to know it very well. it's a mortgage insurance firm. this company has been a huge win for us. and i think the earnings will be the catalyst for the next leg upward as bad housing loans keep rolling off, rapidly replaced by the good ones it insures. this insures a return of housing. that's a major popular theme in this country. i think we're in the early innings, yet the fha are rapidly pulling out of the insurance business to please the congressional oversight committee that measures the agency rick. $11, you know i think it could double. so many people worry so much about theç feds that they've s out, they really, almost all the points of this incredible rally. i figure they'll resurface wednesday, these squawkers, these talking heads. it's hard to believe the fed can take its foot away from the bond
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buying gas pedal. nonetheless, we will hear from a host of people who say, how does the fed end this nonsense and they will even be short this stockmarket and not be forthcoming about it, or they have little invested and need to go lower. don't trust them. they have a vested interest in knocking stocks down. the fed isn't the only central bank you are going to hear. we've got, oh, boy, the european central bank speaks to. part of the rven why europe hasn't been able to hurt our markets lately is endless talk that at this particular meeting, the europeans will cut rates and they need to do that badly. if they don't, then i suspect our market will start selling off thursday morning, impacting all the quarters i'm about to talk about. and it may be an opportunity, particularly an opportunity to buy aig, which reports after the bell on thursday. the terrific ceo has been marking it out of the park consistently, delivering value ever since he came into place to
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save it for the u.s. taxpayer. i suspect he will get it under 40 because of the european nonannouncement, if they screw it up, go for it. speaking of federal bailouts, general motorsç reported the se day. they will do the same to gm, the stock has been acting pretty darn well after that quarter. it seems to be working its way higher. i wonder if gm doesn't surprise the upside or offers you enough secondhand hope that it's worth owning. sure, it is cheap, warming up to it. one of our favorite take zwrout candidates is bull maker atk, the defense companies and gun-related stocks have all delivered excellent numbers. by the way, we did isolate cabella's and said that was better than dick's. a lot of people on twitter say, do you like dick's? we will also hear from linked-in. it's a company i was asked about yesterday at villanova. i have to tell you you, this has
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been a real standout. i think it's that premium model, some of it is paid, some is free in advertising support. linked-in surprised the upside so consistently, i actually am amaded. i was really into the money with call options, out several months, play that quarter of linked-in. finally the week finishes off with the nonfarm payroll report, which if you remember was pretty darn weak the last time around. judging by all the weaker data we have gotten from them so far this month, right, from april, i don't think anyone is looking for a trick number. and i don't think we got one. by the way, it doesn't remember, because the employmentç report will explain again why fed chief bernanke on this day continues funneling money into the economy, until we get unemployment to 6.5%. i'm regarding this as a nonevent. here's the bottom line, after a
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weaker than expected announcement for a payroll, we are pretty much prepped for anything around here, anything that the labor department with possibly throw at us. let's go to dave in california. dave. >> caller: hey, jim, boo-yah from sunny, california. >> i like get we did have good weather finally today. what's going on? >> caller: well, jim, i know when it comes to timber and wood products, i know you like weyerhaeuser. i rayoneer? >> first of all, i know it opened up big and sold off t. reason is i like the housing division weyerhaeuser has. it didn't as good as horton. we could not believe that it did not finish up after opening up. she was the one, the fabulous maria show today and maria said some nice words about us, thank you, maria. let's go to mikey in new york.
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mikey. >> caller: a long island boo-yah to you, jim. >> i'll be out there two weekends from now, what's going on? >> i bought at&t in 38. youç explained the atd and tyc split. you and stefanie loved it, loved i.tyco was up after earnings today, do i stay with tyco or adt? >> no, adt, stefanie and i go back and forth. i was not happy with how this stock acted. she isn't eitherment with ethink when it reports next week,ed the going to give us a gad quarter, but the stock does act terrible. the travel trust villains. how about a. todd in new york how are you? >> caller: great, great, great. i truly enjoy watching your show. i'm glad i got the opportunity to get on today. i just wanted to ask you about a flyer, a skeptical stock by the
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name of znga. >> okay. znga has a new product coming out with omg pop. that was a draw something, they do have a trick balance sheet. they are constantly trying to re-invent the company. last year was probably the peak for a lot of these different products. if they can catch fire the stocks can go to 4. i do not like the stock. i find many other better opportunities out there. earnings season, it's in full swing. you know get but you still need to keep an eye on the labor department payrolls, the ecb and, of course, the fed's open mark committee, which could temper our enthusiasmç for the best of stocks. "mad money" will be right back. >> announcer: coming up, green machine, cramer is wrapping up nbc's universal earth week with a lineup of sustainability ceos, from trucks powered from trash and greener power plants to
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plant-based bottles, it's waste management, pepsico and american electric power just ahead. don't miss a second of "mad money." follow at jim cramer on twitter. have a question, tweet karm. hashtag madtweets. send him and e-mail at cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com
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. even though the average challenges are high, remember, you need to have safety in your portfolio, in fact. you need to have some safety if only for the purpose of diversification, few things are safer than a utility. take american electric power, it owns the largest power company in the country and is one of the largest makers of electricity as well. they have been hounded because it baik makes dirty coal.
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aep places orders to bring that down to 50% by 2020 it could to be larger than that by switching to natural gas. aep r#hdisappointed off the top. the company reported this morning, there is a 1% earnings miss. management re-affirmed its guidance the rest of the year. this stock has been great. with eknow america practices a lot of business in ohio, where they plan to separate the power generation biz into a subs sid area by the beginning of -- subsidiary next year. much better than the s&p 500 up 4%, 5% in the same period. at this point aep is selling its earnings, one like this that supports a 3.9% yield. we need to ask, are we paying too much for safety or does this stock have room to run? we have to learn more about aep's cutting the solution. let's check in with the president and ceo of american
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electric power, find out more about this quarter and where it is headed. jim ablgen, how are you? >> hi, nick, great to be here again. >> explain to people at home why tomorrow you can't say, we will put all of our power through wind mile i mill, solar, grass, the cleanest coal in the world, what would that mean if you tried to do that? >> jim, i think, clearly, the answer is we got a massive amount of investment that's been made over the last 106 years. now, all that investment is still not there, but it is the mostç heavily capitalized industry in the country. when you spend that kind of money, you are spenting long-term activity -- you are spending long-term activity that support the energy and the economy in the future. to make changes too quickly can have a dramatic impact not only on the costs utilities have to charge their customers and the impacts on the economy, but also in order to make these
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investments, it takes time to make those investments, because they're long lead-type projects that you have to achieve. >> now, the ones you have made, they have been difficult, they have been gut wrenching for your community because have you in many parts where you generate power the actual business of coal is very important. >> oh, absolutely. you know, coal was indigenous in many parts of our footprint, there needs to be a balanced unit with coal units that are fully controlled that provide a nonimpact on the environment and then also be able to achieve those community objectives of fire protection, police protection, tax, all those types of things are supported by those types of industries. >> at the same time, you've managed to cut back on a lot of greenhouse gases in the last three years just by the nature of may have been not as lightning fast as they want in washington, but a pretty good fix. >> well, actually, we had been able to reduce our greenhouse emissions to the market type of
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limit allegations because, which was 17%, we reduced the ç greenhouse gas primarily because the additional use of natural gas in our footprint, we were able to reduce get with the economy where it is, we were able achieve lower greenhouse gas emissions, so we are pleased with that regard. >> you have been the only company economically to do a coal power plant, others stumble. i want to pick un, others stumbled trying to do this. is this your engineers? why is it possible for you to make clean coal an no one else has been able to do it that i know of? >> we have a 106-year of innovation. we had the first critical unit, the first ultracritical super unit. for your viewers, that just means we are burning coal at a much higher temperature, achieving greater efficiency, reducing emissions as a result and it's being more efficient
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10% less coal, 10% less emissions, for the ultrasuper critical it turns out to be a billing benefit for our customers in the end. >> now, nick, one of the things i thought was really interesting in your april 26th presentation is that gas-to-coal switching, natural gas has actually gone up in price. a lot of you viewers know, why are they going up? it is because there is gas-to-coal switching going on at your operation. >> yes. now we have a gas-to-coal switching occurring because gas prices have increased beyond that 350 for btuç range which u will see switching occur for us, gas is now what 415 in that range. so you will see that switching occur. the great thing about what we have been able to do with the addition of a natural gas generation and having fully controlled coal units to go back and forth to be sure we have coal flexible to do that. >> one last question, i think people don't understand, look, i
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regard miefls as an -- myself as an environmentalist. there is pressure from state government levels to not shift the weight from coal, even as washington wants to. and you are kind of caught in the middle, aren't you? >> yes. we are caught in the middle on that, but, really, we are looking at coal units to be much more efficient in the future, being fully complied and insuring we are able to use and minimize the amount of resources for coal. i mean, 2007, we were using about 80 million tonnes of coal a year. this year, we'll probably use about 54 million tonnes of coal. so a dramatic impact, but it still has to be there and be a part of our economy. >> i wanted people to know get because i think it's not as simple as saying, you know what, the reason we're not solar is we don't like the sun. it's obviously a little more complex than get thank you, nick aiken, the ceo for aep power. >> thank you, jim. okay, guys, you can understand, this is a company making the transition, not made,
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making the transition, it is generating a terrific return, perhaps one of the best i know, that's nickç aikens president the american electric power aep. i think it is still pretty cheap. after the break, we'll talk more about it. coming up, leading the charge towards sustainability from filling its trucks with clean, domestic natural gas to turning landfills into a source for next generation energy. cramer is sitting down with the ceo during nbc news' universal earth week for a look inside. revolutionizing an industry can be a tough act to follow,
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but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business.
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stocks around is the largest garbage company in america, waste management, wm for you home gamers. waste management offers 297 transfer stations, 169 landfills. it pays a 3.8% yield. landfills don't feel like a seal of approval. waste management has a host of green initiatives that make this slow and steady garbage a lot more exciting. first the energy plants use trash to create renewable power.
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plus, they have been switching the garbage trucks, my favorite fuel, so domestically abundant, it can replace all oil, if all the oil reported were dirty diesel, that's a huge percentage we imported. they have strong underlying trends, this stock which is owned -- has gone higher since the beginning of the year. let's talk to the president and ceo of westç management, mr. tn isser, welcome back to "mad money." >> all right, jim, tlaupg for having me. >> when i told people about a throw-away line, it was not earth when we spoke last, you said about some lar vurdz what you did, everybody -- versus what you did, everyoner everybody says, i don't believe it. tell us, solar versus the energy you produce. >> you can believe it. we produce waste and power about 1.2 million homes.
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that's about eight times the amount of the entire solar industry, so one company, waste management, produces more energy than the entire solar industry in the united states. >> i thought there were some interesting statistics in your presentation, including one, what does 1 tonne of waste produce as an equivalent of oil? >> you know, that's a great question, jim, what we're trying to do is get as much of the bt uconn at the present time out of the waste. so when you look at the traditional uses of waste, you go from waste-to-energy plant of which we had many in the united states and throughout the world as you well know. then we got all the way to taking plastic bottles and producing oil out of them. so the key is trying to get the full ptu quon tent of use out of the way. so on a waste-to-energy plant, we are getting 50% efficiency, we'd like to get that up to 80 or 90% as we convert into oil and specialty chemicals. >> now, my colleague, another guy kind of amazed acted it --
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about it, he says, wzy don't you ask him about those pipes? do they use them for methane? >> we do. when you put waste into a landfill, it is basically entombed in that landfill. with ve layers and layers of geosynthetics that progressive conservative that ground water. that decomposes and creates methane. we take that and sometimes we yessiate electricity, sometimes we use it for interesting uses. so the university of new hampshire, we actually pipe that methane gas to the university of new hampshire and about 90% of their needs are powered by our landfill. >> bmw uses it, too? >> bmw, when you ride that, you are being greener than you think. >> a lot of people do compost. you do that, done you? >> we do. what do we do with our compost? it's about 40% of the waste stream.
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we are looking at ways to do things other than compost. if you can take that material and turn it into fuel and special chemical, then you are getting the full benefit out of it. in the meantime, you are absolutely right, we are composting that organic throughout the united states. >> our friend andrew littlefare from clean energy times was saying if everybody would do what you guys were doing with trucks, we went to that camden facility and looked at that we would be cutting down our oil dramatically, maybe smashç ope put a lot of people to work. he is saying you really are, if you can imagine, you cowell be owning that gas fleet. >> absolutely. you know, jim, there are so many reasons why natural gas makes sense, not the least of which is reducing our dependency on foreign oil. we switched to natural gas many years ago. about 90% of the purchases we do every year in our fleet will be natural gas. then we are building infrastructure throughout the united states. what we're looking for, you know
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the deal, whether it's lng or cng, we're going to build about 25 cng stations throughout the united states, obviously, the more help we can get with state and federal governments, with state grants, the faster we can get that infrastructure built out. >> it was a good quarter, that to me was the first quarter in a very long time it sounds like fees have to go up because business is that strong. >> yeah, you know, jim, we've got a lot of different costs that we incur, so at our landfills, you know, to make sure they're environmentally safe, we're paying tremendous amounts of money and then we're paying post-fees, we're paying state and local taxes in those landfills. so we got to make sure we can recover those. we have a regulatory cop an cover fee, we will expand our margins by expandingç those costs.
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you know, we're a company about making sure we do right by our customers. so we're going to take that money, not only are we going to help it to increase our bottom line, we will help us be an environmentally green company and a safer company. >> mayor bloomberg favors natural gas, i'm trying to figure out why are there not more politicians who just say, we got to do what steiner is doing, we got to get the particulates, out, we have to get the asthma out. it's an issue. a health issue, you guys are the only ones addressing it. >> we have a plan in the san antonio. we're construct one in philadelphia that makes what we call spec fuel. spec fuel is when we take waste and make it to a pelletized fuel. it can burn just like coal. it burns at about 10% of the particulate. it is the cleanest coal you can possibly have. guess what? it's being made out of carbon. >> carbon emissions 90% lower
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than december em. isn't that just a federal case against diesel fuel? >> well, you know, jim, you know, right now, what you got is the entire infrastructure is built around diesel, right? so the key is changing out that infrastructure, whether it's lng or cng, it's not cheap to build those stations. so we have been doing that on our own,ç we have been dog it our own, we could do it a lot faster if we got help from the government. >> it's a clean sky issue, it's a health issue, it doesn't get better than that, david stiern, waste management ceo. congratulations again. that's david steern mr. president and ceo of waste management, look, doing green, making green for you. that's my kind of stock. don't move, lightning round is next. . ç
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oh, we had a fabulous time. so did pop, by the way. villanova students are some of the most energetic and smartest in the country! we loved all your questions and pictures you tweeted@jim cramer. check out our twitter blog, maybe you will see your tweet. now it is time for the lightning round. my staff, wait until you hear this sound, then the lightening round is over. are you ready? it is time for the lightning round! i'm going to start with chris in nebraska. chris! >> caller: hey, jim, how are you doing? >> real good, how are you, partner? >> caller: great. i'm a former çppgm employee, he quite a bit of stock amassed and i noticed there for a while it was going down and just kind of wanted to get your thoughts on what i should do with it. >> i can make this one real
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simple, bye-bye buy. it's incredible. a nice quarter. let's go to adam in new jersey. adam. >> caller: jim, how you doing? >> real good. how are you? >> caller: i'm doing good, thanks. a real quick question. i'm short, earnings were splamplt i just don't know is this buy on rule morks sell on fact? what do we have going on? >> multiple approvals coming up between now and the end of the year. they have a big young psychologist, not that there is something to trade on. let's go to ned in north carolina. >> caller: big boo-yah, jim, from raleigh. >> well, what's happening? >> caller: i want to ask you about zane st. clair broadcasting, they recently announced they would acquire fischer communication and the stock had been going up before that and it's still looking
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good. they have a pe of 15. i was wondering if it has more room? >> it's a winner. it's the good part, it's like this, i actually am surprised. this thing could come back. i would love to hear from the ç ceo. it's a remarkable transformation and a good stock. let's go to allen in new york. allen! >> caller: i want to hear what you say about this breed. it's ahtp reed. >> i like htp. it's got a good yield. let's go to dorothy in florida. >> hi, jim. >> hi, dorothy. >> caller: i am a woman living in sunny florida with a fan of yours. >> thanks. >> caller: i own 400 shares of dell computer for over 10 years. i paid $42 a share then and don't know what to do with them now, because they're not going anywhere. >> no. i'm sorry. i hate to be the bearer of bad
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news. you got to sell get i don't know that that deal will work out. remember, we don't care where stocks came from. we care where they are going to. sell dell. that, ladies and gentlemen, is the conclusion of the litening round! -- the lightning round. you may have noticed things are looking a little different around here, our amazing team has been working incredibly hard giving our set, our home, a facelift. we even got special requested mat money" walls now that can change color at my çcommand. how about red? how about some blue? and my favorite chloroowe green! see what i mean. . . . [ music playing ] boo-yah!
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welcome to villanova. . [ cheers ] . >> it's a great villanoia b-b-b-boo-yah to you. >> hi, jim, i'm from ohio. my hidden talent is i can wiggle my ears. i was wondering what your hidden talent was. >> holly cow, it ain't singing. >> if you went graduating from college, what advice would you give? >> aside from the nasty breakup that year. i could have used some advice. >> i have a single question,
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pat's or gino's? >> that's so easy. my dad and i have had, hisç 85, 86th, 87th inner sanctum at gino's. i have been inside gino's, so, pat's, no thank you. i don't know if you know it, you are much lower crowd, it is take your kid, take your child to work day. so, that's what my father is dog by taking me to work. -- is doing by taking me to work. . ç ç
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we are all about practicing what we preach here on "mad money" as we bask in the glory and glow of 'nova nation, we realize we got to catch up on some of the homework here back on march 21st, tyler in virginia called about travel centres of america, simple ta. i did not know this. i said i'd get back. this is one of the largest
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operators of travel centres in the company. okay. fancy name for rest stops for truck drivers. the stuck has gone out of landlord hospitality trust in 1997, after a couple rough years, during recession, of course. they have come out stronger than ever with improved systems, hence, why the stock surged in 4 bucks and change at the beginning of the year.ç it's dlm $12 bucks right now. what a rut. you know what, i still like this story. in part, thanks to the american truck association. after this move, c'me on, let's wait for a pullback before we pull the -- it just feels too much like chasing. jeff, asked about a company jazz pharmaceutical, the symbol is jazz, oh, jazz for you home gamers. i told them i got more work to do. irish is a pharma company, it develops orphan drugs and works
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for sleep disorders. they have patent protection. the stock has had a gigantic run since the generational lows four years ago. it was at a buck. it's at $56 bucks at the moment. it's pulled back in the last couple months. jazz has a number of drugs on the market, including one for narcolepsy. the stocks have been pulling back because it worries about xyrem protection. it loses patent protection next year. that worries me. that's a clip. these worry, though, may be overdone because even if generic versions have approved, they may meet jazz proprietary system. plus the company is in litigation with the generic player trying to copy the drug.ç when generic xyren hits the mark. in my view, i'm saying jazz is a solid company. why not stick with unof the bioteches that have cleaner
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stories, including the celgene which was drafted today on "street signs," it's a part of a huge nfl-like draft that was done. march 26th, joe called. i said i'd get back to him. it's about time. it's speculative. focus on kansaser. avia for renal cell carcinoma, aveo, i think this one is one case where you do not want to play fda roulette. i'm concerned that the kidney cancer space is now crowded and there have been too many questions about the data for this particular drug and the overall survival rates for the patients that take it. so i got to say the dust has got to settle. why don't we re-visit aveo after the panel. next, april 4th, rudy from louisiana wanted me to do a deep fife dive in photo medics,
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that's a tiny dermatology company, photomedex. people love these kind of stocks, photomedex is strong sales growth. it has no depth. coverage isç expanding in mu markets, which will drive place hims. you know what, i'd like to see more clarity on order, only as a trade from the $16 level to the maybe 19 or 20 until we see evidence it has more sustainable business model. finally on april 17th, roland in california asked about proforma. this is a business -- performant, primarily guaranteeing a student loan program. how much do we need that? as well as to the centres for medicare and medicaid services. student debt is a big problem. i'm concerned the eintoes
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we focus on green every night. it's not always easy to find companies that are being green while making green. they are not, one ceo has been blazing this front, ingenuity the chairman and ceo of pepsico. we spoke to her last week about efforts to keep the company green. take a look. when i first talked to you, the first thing you told me is you got to go vis it a plant where there is no footprint. it was your aberdeen proving grounds, how has that worked? >> doing veryç well. in fact, we built casa grande. in mo des to, we have -- in modesto, we have energy. when people talk green, it's a nice initiative, in our case, it's not nice to do. it's say must do. we do it for three things, one,
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it saves us cost, it creates value for our shareholders, second, environmental sustainability gives us a license to operate in every society and community and, third, it makes our employees feel great to come to work for a company that is actually doing the right thing for society. >> let's talk about the latter, when i talk to younger people, it's very clear they don't want any -- they don't want lip service and they're not going to go to a company that doesn't put green first. is this a way to be competitive to try to get the smartest people? >> no question about it. it's competitive to get the smartest people. it's also competitive to get a license to operate in societies, because in many countries around the world, where there is water shortage, or people don't like to see too much plastic waste, you can't get a license to operate there unless you demonstrate to them that you really are, you know, focused on recycling, water use, focused on reducing the carbon footprint.
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you have to do it. >> are there some companies that you find you are up against competitors whoç really don't care and therefore can make a product more cheaply than you like? >> it does happen. in some companies, local competitors have a license to be where they want. it's a global company that has a reputation to stand by, i think it's very important we don't compromise on our principals in any one country. we offer the same high integrity around the world. so we keep our environmental sustainability standards high in every country that we operate. >> what can i tell is green or not? if i look at your company five years ago at your packaging, what is different because you care about green? >> europe, you will actually see the carbon footprint on our package, when you see frito trucks on the road, many are electric or hybrid trucks, in the modesto area, people are happy electricity is being sold back into the grid from pepsico.
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if you go to any city in india, they will say, pepsico helped us with rain water harvesting because their plant uses water. so we want the whole community to be net zero. so every country in the world that you go to, you will see specific examples of pepsico helping ourselves and helping the community. so it's a when-win for both. >> you were the first person of a major company that ever told me that this was actually good for the bottom line. now i believe you. thank you to the ingenuity of the chairman andç ceo of pepsi. a company that is green from green. stay with us. >> thank you. thanks, jim, take care. should jeb bush run for president? brother says yes, mother says no. david stockman, mr. pessimist comes on the show tonight. a have you ever been to a $2 million poker game, especially a crooked one? next up un"the kudlow report.."
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first, amazon, alike the quarter, the stock is still too rich for my blood. secondly, starbucks, the reaction to send that stock down, i think it was wrong. starbucks, let's hope it comes in so we can buy more of it. all right. what a week. just when we thought our day at villanova couldn't get any better? let's say we got the best news of all. the newest member of the ""mad
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money"" family. congratulations to george and anna, we cannot wait to meet her. so great. listen, there is aulgss more for you. promise to find it for you. i'm jim cramer. see you monday! good evening, everyone, i'm larry kudlow. this is "the kudlow report." all right, it's free market friday. our distinguished panel will debate whether jeb bush should run for president. his brother says yes, his mother says no. what say you, folks? and have you ever played a $2 million poker game, especially one run by mobsters and russian sordid dealers. we have a story about a guy that lost his ambassadorship to france toened and poker may have been the culprit. is the budget cutting sequester still in place? score one f
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