tv Mad Money CNBC April 30, 2013 11:00pm-12:01am EDT
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circle. berglund. and kopitar caught each other up and sent back behind quick. pedals it down. oh. goofed up the exchange there. >> yeah. >> voynov along for king. doesn't get it by oshie. blocked by kopitar. he pushls it ahead. jackman gets there for the blues. able to play it up the boards. david perron. for st. louis. steered aside by quick. all the way out to center ice. trevor lewis. hands it off now on the cycle. stoll sends it back in deep. stoll, lewis and penner out here for sutter. gets it away and now lewis out of the corner against sobotka. penner. in on the short side. penner has it again. it's the outside of the net. >> remember mike richards scores
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two goals last year against elliott just like that. >> the kings -- i mean, the blues a little bit of their own medicine from earlier in the game. penner turns on the forehand. stewart will track it down to the far side. gloved down at the line by regehr and he sends it back in. deflected by schwartz in deep and will that be icing? yes. the blues that were looking to make a change will not be able to here. >> l.a. comes without a good, sustained attack down low trying to push some pressure on and see if st. louis is shaken by goal. see if elliott is shaken. a couple of chances by penner of bad angles. trying to get an easy one from the corner but elliott was ready for it. >> first overtime like the second period, the long change for your defense. this faceoff to the right of the
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st. louis net. richards and sobotka and sobotka is going to be tossed out of there. porter will come in for the draw. number 32 for the blues against mike richards. porter controls. pietrangelo. hit by dustin brown. now muzzin. lost his balance. fell down. the puck comes free. blues were making a change with brown. williams rolls it in on goal and elliott stare steers it away. now williams. getting it back to the line. muzzin. able to get by stewart. muzzin throws it. tried to throw it to the front and redirect. bouncing back out to center ice. >> not a lot of fancy plays in overtime. l.a. with that theme in mind.
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they're putting pucks to the net from everywhere. >> bouwmeester back to get it. plays it ahead. off the stick of voynov and deep in the l.a. zone. scuderi back to get it. now steen. schwartz. backes. puck free. scuderi. won a cup, of course, with pittsburgh before he won one with l.a. now a turnover and recovered by schwartz. picked up by the blues. backhanded across by backes. off the boards and now the l.a. kings get it out the other way. here's kopitar. takes it wide on polak who played them well. throws it back up the wall. and there's dwight king waiting for it. jackman for oshie. recovered by regehr and taken back by backes.
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now perron with a couple of nifty moves. regehr separates them from the puck. l.a. kings have it now. doughty for lewis. broken up. oshie. got a mail trailing and tapping the stick. oh! play stopped in front. >> what a save by jonathan quick. that was kevin shattenkirk late on the play. tapping the stick. a smart shot low on the other side. >> berglund in front and deflected to the far side. berglund pushes it to the corner. now st. louis. a little bit of a counter. to the push that l.a. had. late in regulation and early in this overtime. suggestion right in front of the blues bench. picked up now by nolan. trying to roll it to the front. all the way through. eliot with a save. and back the other way.
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stewart with mcdonald. hammers one in that's steered aside by the pad of jonathan quick. voynov circles his own net. jackman plays it back. nolan gets a stick on it. cracknell recovers. throws it across and polak started to move up and decided against it. >> st. louis not recovered their momentum and style of play that's been successful for them for most of this game. l.a. taken it to them and the body language shows it so far. >> now reaves trying to get it deep. had it to the corner to the right of the l.a. goal. now cracknell out to the far point. polak with a shot. blockered aside by quick. polak again with the shot. wanted to hand it off. for a better tuning position by porter. broken up by l.a. brown get lets it go. williams.
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cleared aside by elliott. regehr holds it in. williams to the high slot. skipped over the stick of dustin brown and looks skyward. in frustration. carter. bouwmeester. came down on him and tipped ahead by the l.a. kings. here's king. hands it off to kopitar. puts it right in front. doughty. knocked down and the blues have it. trying to get the puck in deep. it was offside. at the l.a. line. >> kopitar on the attack. and drew doughty following up the play, as well, too. off the side of the net and that's doughty following up. that was blocked in front. earlier watch shattenkirk. nice play by oshie. hears the yelling and tapping of the stick by shattenkirk. shattenkirk with a smart play.
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it was right on the corner. that also gives you a second chance for rebound which it did and l.a. sharp to clear it out. you can sense that l.a. built on what they did, the momentum they had from the williams goal. they carried it forward. st. louis came out a little bit tentative. they recovered a little bit and they don't look and feel like is same team that they did for most of the game. >> leopold plays it around. on the left wing side. snaps it across. shattenkirk get it is shot away. up high on quick and holds it there. >> defensemen is important as they always are in these types of games. you have to have mobility, players to join the rush. that's one of them. shattenkirk on jonathan quick. that last shot up a little bit too quick. you have to give yourself a chance or one of your teammates a chance on a rebound. you have to get those shots down
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below the knees and force quick to make the saves and control the rebound. >> sobotka won the draw. mcdonald. cleared aside by quick. that was blocked by the l.a. goaltender. williams tried to get it out of there. will have the stick out of the hands. no call coming. pushed ahead by l.a. blocked by sobotka in the neutral zone. save made by quick with the right pad! and it's backhanded by dustin brown. this is going to go far enough for icing. >> nice job by sobotka on the turnover in the neutral zone. he attacks wide and gets really good screen shot off scuderi, i believe it was. finding the puck. right here. here's sobotka. everybody's onside. scuderi has to stop and regain himself and sobotka with the smart shot in between the legs
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of scuderi. quick as he usually does gets down really low. finds that puck and makes a save. >> brian, now darryl sutter used his time-out on the icing call here in overtime. remember that ken hitchcock did it for the blues back in the second period. >> patience has been the name of the game. and that guy, jonathan quick. he's given them a chance. that's why they're here. i mean, he made several just stellar saves in this game. to hold l.a. in when st. louis putting pressure on and kept it at one. l.a. hung around and hung around and hung around and one shot they needed with 31 seconds to go. >> his goals against average last year in the playoffs lowest ever by an nhl goaltender in a playoff year where he played more than a dozen games. that's how great that performance was. all right. faceoff here controlled by los angeles. dustin brown trying to push it ahead.
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persevering. voynov follows. tried to get it to the front and it was just blocked before it got to dustin brown. kopitar. backes baring down on him. justin williams. broken up in the neutral zone of bouwmeester and the blues in to the l.a. zone. quick for voynov. hands it off for kopitar. williams. and picked up now by dwight king. kopitar. up high there on elliott. missed the net and the puck down in to the l.a. zone and doughty hands it off now once again for kopitar. he'll send it deep. king on the far side. polak ties him up. berglund for st. louis. carter is there for los angeles. blues control deep in their own zone. comes to. thej. oshie.
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oshie across the line. angled off the puck by doughty. muzzin. puts on the blakes. ahead for carter. up to stoll! he hands it off. tried to go back to stoll. elliott run in to my a teammate. the puck went wide and sent out to center ice. >> real smart play by muzzin. he is quick up there to give stoll and penner that chance. >> bounces over the stick. of oshie. and muzzin. heading to the bench on a change. here's penner trying to cut it. a shot. what a stop there by elliott. penner an overtime hero last spring. here's clifford. in to the backhand. save by elliott and he hangs on. >> awesome, big pressure here of l.a. good scoring chances. good use of the puck. muzzin on the initial chance, though. here's the last chance coming in and this is clifford. he's fresh copping off the
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bench. gets a nice pass of richardson. here's the quick up i was talking about. that's muzzin throwing it up quickly to stoll. stoll one hands it over to penner and got that scoring chance, as well, too. elliott with a nice job of making the save and also in the way of the rebound off one of his players coming back in to the crease area to help him out. >> now the line of richards between williams and brown for darryl sutter. >> this is the best l.a. played in the game. this overtime. >> sobotka line out here for ken hitchcock with stewart and mcdonald. he takes the draw and he wins it. jackman. pressured by dustin williams. now richards hands it off. brown tried to get it back to him. stewart had to break with it.
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around the boards and helped out through center ice by the blues and back in to the l.a. end. quick making sure the defensemen know there's no icing here. mike richards. sends it across now for williams who has the l.a. goal. steen scored in the first period. a faceoff coming. it's the blues end of the ice. >> the tension down here is great. playoff hockey in overtime. it's about mistakes. it's about opportunity. when you see it, get an outnumbered attack. everybody wants to be a hero and you get a lot of people jumping up on the play. you miss that chance, oh, comes back the other way. that's a lot of times the way the games are ended. >> blues won the draw and didn't get it out of the zone. kopitar tried to push it along but knocked back out to center ice.
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regehr back in the blues end. pietrangelo looked around. plays it up the glass. regehr. able to get it back in deep. king is there. out here with kopitar. and carter. steen backhands it in to the l.a. zone. doughty has it. l.a. won the season series 3-0. they won the playoff series last year, 4-0. the shot, eliot took a quick look to his right. >> oh. >> well, they have passed the halfway mark of the first overtime and going to clean the ice. while they do that, let's go back to the studio. >> all right. it's a game break. game one between the red wings and the ducks. through one period. nick scored for anaheim and cleary on the power play answered so that game is 1-1. you can see that on the nhl network. meanwhile, in chicago, they play
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on. the hawks and wild also tied at 1-1. three games tonight, all tied at one apiece and also in overtime. you can see that game on the nbc sports network. dave? >> all right, bill. that's what playoff hockey is all about. 1-1 games. low scoring. tight checking. >> anze kopitar with the last chance just before leaving to the studio. maybe a deflected puck but elliott made the save. hit the arm and then what? i don't see it. we must be okay. i watched jonathan quick skate back to his bench. during the break. not a sign of worry on his face when the mask came off. amazing how laid back these guys can look. when they're in the pressured situation. the pressured situations. position.
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can't afford to make a mistake. remember, that is l.a. team that started every series on the road last year. won the first two games in every series on the road and first home game, the first team in stanley cup history to go on 3-0 in all 4 series in the playoff year. they ended the first round series with vancouver with an overtime goal and the final against phoenix with an overtime goal. they also had two overtime winners in that stanley cup final against the new jersey devils. stoll with lewis right behind him. berglund to the faceoff circle to the blues. stoll is tossed out of there.
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lewis does a nice job and on the boards. penner. trying to protect it. went down. right back up. shattenkirk with a stick on it for the blues. kept in the zone. here's penner. back check there by oshie. t.j. oshie. three l.a. kings on him. off to voynov. stick shattered. right back to the side of the net and elliott has to be strong with the left pad and glove to cover it up. >> good work for the kings. holding the puck off the wall and getting it in to scoring position. there's the shattered stick and stoll doing the smart thing. just get it in the paint. he has support there. that's lewis who gets in there. dustin penner on the line, too. made a line change at that point and noticeably better in the overtime than he has in other parts of the game, too. >> faceoff win.
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knuckle balled up in the air. elliott down. >> you're anticipating the shot. watch the goaltender go down. he can't see it. he has to reach up and might be easy in baseball but try this stuff when you have all of the equipment on. under a pressure situation. i got it. it's fine. >> richards and sobotka this time. tie each other up. the blues have it. pietrangelo. center ice. right back in by robin regehr. 11 minutes gone in this first overtime period. sobotka. far side. big collision in front of the l.a. bench and the kings back the other way. williams handles the shot and elliott will have that. another faceoff in the st. louis end. >> real good job by regehr standing up in the neutral zone. i think he was whacked in the nose again for the trouble. he stood up on david backes in the neutral zone right here. changes direction.
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l.a.'s able to take it back in and the same guy that tied it up gets the good scoring chance and then for his trouble, yeah, change that stuff. >> he actually lost some of that out here on the ice. the stuff that was in his nose before and for his trouble he was whacked in the nose again. oh well. another day at the office. >> kopitar sends it across now. king able softly in to the blues zone. jackman making sure that he clears it. berglund overskates. carter and jackman have each other tied up and deep in the blues zone. kings on him able to move it to t.j. oshie. up the left side for jackman. the l.a. net and kicked aside to
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send it down for regehr. doughty ahead. clifford. and andy mcdonald. on the backhand. trying to cut in. regehr. right to the goal mouth. as quick was sliding to his left. >> doughty with a terrific play in front of the net to prevent porter from putting that in the empty net. >> shattenkirk. plays it back the other way and l.a. with a defense change and they made sure they made it quickly so they weren't caught with too many men on the ice ashattenkirk. pressured by penner. a penalty coming against the blues. and a high sticking call and penner is down. official over to check on penner. >> dustin penner. going in on the forecheck there with speed on shattenkirk right on his backside.
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turns the puck over. shattenkirk turns over. tries to lift his stick and missed it and clipped him right in the mouth. watch doughty here. number 8. that's the great defensive play i was talking about. that's hard on the stick there. doughty making sure that porter who would have had a slam dunk from the edge of the crease doesn't get it. >> well, it is a double minor penalty. kevin shattenkirk. what an opportunity here for the los angeles kings. this is just their second power play of the game. remember, st. louis scored the only goal with the man advantage and then missed taking advantage of four more power plays in regulation time. carter across the line. finds kopitar. kopitar sends it across and skips through richards. richards playing the left point. doughty the right point.
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mishandled by quick. steen scores shorthanded. and the st. louis blues accomplish something they haven't been able to do for a long time. that's beat los angeles. jonathan quick is going to see that play in his sleep. second of the game. won on the power play. won shorthanded. and boy, l.a. had all the momentum. still had plenty of time on a double minor power play and the guy that brian engblom said earlier was the best player on the ice most of the night, steen, with both goals. they're going to announce the three stars of the game here. at scottrade center. i have a feeling one of those
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stars is the player that brian is waiting to interview patiently down at ice level. an unassisted shorthanded goal. 13:26 in to the first overtime. and alex steen is the hero after l.a. tied the game in the last minute of regulation. kept the momentum five on five overtime and then the benefit of the double minor high sticking penalty against shattenkirk. and this crowd just exploded. a member of the fourth line that was effective all night long for the st. louis blues, they certainly set the tempo in the
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first period. a so for first star's celebrations to an interview of brian engblom. brian? >> alex, an incredible finish to an incredible game. talk about the winning goal. what happened back there? what did you see? >> i knew that they had been out there. i went out so i was a little fresher on their power play and the puck went down and thought i eat put some pressure. looked back over the shoulder. had a guy on the left side and went there and my stick went in the net.
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>> you haven't been able to beat this team since early last season. what was the locker room like? you played a strong game here. >> yeah. i thought we played a good game. we came out the way we wanted to. hard, physical. short shift. i think as the game went on, we started to get longer and we got to get back to the short shifts, especially now. warm outside. and warm inside, too, in the middle. shorten them up a little bit and played a solid game. we went back a little bit in overtime. but yeah. big win for us. >> thanks a lot, alex. congratulations. >> appreciate it. >> dave? >> power play goal on the first period to make it 1-0 and then win get. thanks for joining us. let's send you back to the studio. >> dave, thank you so much. what a turn of events. we were sitting here thinking it's over. l.a. will win it. >> this is why we love playoffs
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so much. the intensity and what happens in games continues to shift moment to moment. the blues came out flying and what did l.a. kings do? hung around and their shifts started to change. l.a. feels confident. scored late in the first period and then first overtime. it was all l.a. this is a big, big -- just a disappointment for the l.a. kings losing this game. >> take a look at the overtime winner once again and it's alex steen, a pair of goals in the game for him. one on the power play. four shorthanded. >> you think the kings licking the chops and the best player of the game, jonathan quick, makes a huge costly mistake. he is thinking about this until they drop the puck in the next game. they let it slip and had the game under control. i can see the blues starting to wear down. put in a lot of left in the first period. the kings kept coming and coming and a four-minute power play. i can't tell you how important
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and how much the l.a. kings really thought that this was in their grasp. stanley cup finals, you know and playoffs, every little thing is important. you have to stay sharp. for 60 minutes, 80 minutes, 120 minutes. quick wasn't sharp one minute and they lose the game. >> all right. so the blues take it 2-1 in overtime. game two thursday night also on cnbc 9:30 eastern time. in chicago, another 2-1 final. another overtime game as the blackhawks took on the minnesota wild. and here is the game winner in overtime. victor stalberg to brian bickle. almost simultaneous. a huge overtime win for the chicago blackhawks. wild played hard tonight. >> indeed. backstrom injured before the game. josh harding took over. 35 saves for him but he couldn't get it done. crawford, the win.
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26 saves for him. chicago leads in the series, 1-0. detroit and anaheim are under way, as well. they're through one period heading to the second. you can see that game on the nbc sports network. they're tied at 1-1 after 1 period. coming up next here on cnbc, it's "mad money" with jim cramer and join us tomorrow night 7:00 eastern for more stanley cup playoff action. for the crew, thanks for watching. stay tuned for "mad money" joined in progress right after this. ♪ ♪
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will, would your price ever come down? >> yeah, if they came down enough -- >> you would lower the price. >> yeah, if they came down enough, they would. in the near-term, you're not going to adjust the price around, either up or down. i think really around the commodities, six months out, a year out, then you're going to. if they move materially. so, you know, at the end of the day, if commodities come down, probably the price would move a little bit. they go up over time, you adjust it. >> because sauce is a big component, not the biggest. but tomato crop, if it's booming, maybe -- the sauce could come down. you did not list gasoline as one of the costs. >> gasoline indirectly, i think, is the most important. >> right. so therefore -- >> over time -- gasoline is down dramatically. will you see some sort of bigger gain than talking about the new year's day, which we spent a lot of time talking about, but i don't think it's substantive. >> it spiked up first. we had to get gas up to get it back down again. and so, you know, it's back into a very reasonable range for us. longer-term, it's the one i worry about the most. >> okay.
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>> energy costs flow through all commodities. >> that's why you need natural gas for your delivery cars. one last thing. goldman guy kind of represented a lot of different analysts by saying that there was really a kind of temporary spike here in numbers. and they expect solid, same-store sales. on your conference call, i'm thinking about how you're going to deploy all that capital, not worried about this one-time thing. i'm thinking last year during march, the special dividend, i'm looking at the leverage ratios. we should be more focused on what you're going to do with that capital rather than if there is a short-term spike. >> the capital story, that's a big part of this. >> but you wouldn't say it. you can say it here, though. just between you and me. i can tell all these people to go home. >> no, i can't talk about what we're going to do going forward. but the answer is we're going to deploy the capital in the way we think is going to generate the best return for our shareholders. we just started paying a regular dividend as of last quarter. >> right. >> and so that's certainly something that's going to continue. and then how we balance out dividends and share repurchases
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going forward. and, you know, maybe at some point debt repayments, if interest rates move -- >> of covenants allow you. celebrity. i don't want to leave on just a finance note. obviously, some great-tasting pizza.don't want to leave on ju finance note. obviously, some great-tasting pizzi don't want to leave on ju finance note. obviously, some great-tasting pizza. you know what i do -- and i am a big customer, which you know. that's patrick doyle, president and ceo of domino's pizza. yes, you can be jovial when you make this kind of money for shareholders. stay with cramer. ♪
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it is time! it is time for the "lightning round" on cramer's "mad money." my staff prepares the graphics on the fly. i play this sound, and then the "lightning round" is over. are you ready, skedaddy, time for the "lightning round." starting with gus in my home state of pennsylvania. gus? >> caller: yes, thank you, jim. first-time caller. i want to know about international paper, stock for 2013? >> it was the stock to own for 2012. i think it could go higher.
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a lot of big money made. still a well-run company. let's go to elliot in california. elliot. you're up, elliot. >> caller: boo-yah to ya. >> boo-yah. >> caller: i'm calling about bgc partners. >> yeah, that was -- >> caller: discounted value. >> i know. we had the ceo on and i thought it was a pretty interesting story, but it has not worked out that well. does have a good yield. if it gets back to 6, 7, you just got to go. let's go to mickey in michigan. mickey. >> caller: motor city boo-yah, jim! >> i like ford and gm. what's up? >> caller: well, i've been trying to get into a railway, and i think i found one, but i want to know what you think about it. it's canadian pacific, cp. >> here's the problem. there's going to be a lot of problems like this. canadian pacific traded at 68 and now at 124. we have missed a lot on the big move, but i still believe in the stock. i think you can buy it. i think csx is cheaper, though. diego in california. diego. >> caller: hey, jim, b-b-b- boo-yah from southern california. how are you doing? >> all right. how about you?
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>> caller: i'm doing good. i want to thank you for the call, i made some good money there. my question is kroger. my sister is in management, they're always going to meetings, and they've had 37 profitable quarters in a row. are they going to fall victim like safeway? >> no, safeway is a management issue. kroger, your sister is at a great place. kroger has done a lot with private label, done a lot with natural foods, i think kroger is a winner still. mark in tennessee. mark. >> caller: boo-yah, jim. from the southeastern conference. >> s.e.c. >> caller: my stock is cree. >> decent spec. if i want to do l.e.d., i believe eaton. the l.e.d. story cold. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is sponsored by td ameritrade. >> coming up, break up bucks. from bieber to seacrest,
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on a slow day like today, remember that not all companies have to be held hostage to the vicissitudes of the stock market or even the economy. some have the ability to take their fate into their own hands. that's why while it sounds unromantic, we are big believers in break-ups here on "mad money," because breaking up can be a fabulous way for a can be to unlock value for its shareholders. this is a story we have seen so many times, but it's worth repeating, because it's so darn lucrative. they made a killing when they broke up. and others that we talk about all the time, like kraft. sometimes it feels like all we do is talk about big-name breakups, kind of like the "people" magazine of the stock market. that's okay. that's commercially successful. another company i believe could unlock a tremendous amount of value, simply with the stroke of a pen, simply by splitting
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itself up, i'm talking about perk & elmer. pki. a little $3.5 billion laboratory supply and life science. probably never heard of them unless you watch the show all of the time because i've mentioned it before. they formed into a merger in 1999 and built itself up through a series of major acquisitions and five years ago management reorganized the company, two distinct units, a human health division and environmental health business. on the human side, accounts for 56% of the company sales. her inels per kikinelmer now ma diagnostics and tools that help detect diseases earlier especially when it comes to
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prenatal screening and tools that research labs. in short, part diagnostics, part research company and this is the part of perk & elmer we really like. the human health is growing faster than its peers in the industry. if it traded as an independent company, think about this. we know that just two weeks ago, thermal fischer, tmo agreed to buy life technologies, very similar to the research side of perk & elmer's human health division. 15% premium to where the stock had been trading, but more importantly, almost 55% higher than it was before the rumors began. you break up perk & elmer as a stand-alone company, someone might try to take it over like life technologies. i think the break-up makes a ton of sense. the other part is the environmental health division where they make the technology and instrumentation for detecting contaminants to industrial end markets like chemicals. even construction. here's the problem. that's a slower growth business. okay? it's got lower margins. it's also more cyclical than human health side meaning stuff i don't like. meaning the environmental business is more captive to the health of the overall economy, both here and around the world
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and a low slowing economic situation. they got slammed after a disappointing quarter and i was really wow. it fell from $34.47 to $30 and change, a decline of 12%. it is worth pointing out, much of the weakness here came, yes, from the environmental division. in fact, 85% of perk & elmer's business grew at a 3% clip. most of the company is chugging along okay, but the other 15% of the company down 25%. thanks to this environmental sales in western europe, along with weakness in japan. purchasing imaging instruments on the human health side. you break up perk & elmer, you'll be left with a robust very healthy company made up of the human health division. company on the environmental side, but one that might have more focus and attention, including the ability to add bulk through bold acquisitions as it could be a much better stand-alone entity. at the moment, it has faster organic growth, but it gets a lower valuation, stock selling
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for 12 times next year's earnings in large part because they simply don't get the full credit for the human health business because of the ball and chain that is environmental business. the environmental side is ailing right now. the business still has a largely a play on increase in consumer safety regulations which you know will be toughened, not lessened over time and as decent growing exposure to china where issues of air, water pollution are becoming very important. you spinoff that environmental business and it can focus more heavily on china and other emerging markets and i think those are bottoming now. but the main reason i like perk & elmer's potential break-up play, right here, simply that the parts are worth more than the whole right now in the stock market. let me give a quick sum of the parts analysis. they call them smtp these days. you'll see what i mean. the human health business, part diagnostics and part laboratory research tools. if you look at what thermal fischer is paying, same valuation of perk & elmer's lab business, $1.8 billion enterprise value. how about the diagnostic side? that's similar to gen-probe,
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that was taken over by whole logic taken over for six times sales, the same multiple, diagnostics worth $3.3 billion. let's add these two up and you get an enterprise value of $5.1 billion for just the human health business side. the entirety has an enterprise value of $4.4 billion. in other words, not only are you getting the environmental business for free here, but also the human health business at a discount. the environmental side has lower margin. so if we say it's worth two times sales, be more conservative, still gives you $1.9 billion enterprise value which means the total company is worth $7 billion, come on, 59% premium to the current price. so if it breaks itself up, it's possible that there could be $30, $30 stock could go to $48. that's right. 18 points. so conservatively, if perk & elmer announces it's divorcing itself, i see the stock bouncing back to 35 and change, and possibly a lot higher. i just gave you that ultimate target after the split. i'm not factoring if one of the
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divisions catches a takeover bid. here's the bottom line. sometimes if a company wants to create value it has to create destruction of the biggest thing holding perk & elmer back, two very different businesses tied together under a same roof and shouldn't be that way. easy problem to solve. all management needs to do is announce a break-up and this stock will go higher with the stroke of a pen. "mad money" is back after the break. ♪
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what would happen if you were bottomed out. no, not if it went up, but simply just bottomed. something the european stocks might be singling. last time we talked to sandy cutler and chuck bunch and both indicated that europe could be hitting bottom, and may not decline much at all. we got numbers from deutsche bank and ubs, spectacular. all signs things are getting better in europe despite the hideous employment numbers over there. for eaton's cutler, a huge electronics business, the continent is indeed mired in molasses, his quote. but may not be getting worse. yes, the business is terrible, but might be nearly -- just merely staying terrible. bunch goes further. he says he thinks the first quarter might have been the worst. and that things could actually look up between here and year-end. these are not idle sentiments. last week when howard schultz ceo of starbucks gave his
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overview, he thought europe was bottoming. colgate indicated the same. there are many companies including technology companies that would indicate things are getting worse. there are also auto companies that say it could be getting much worse, although i still think gm might do a good number. but the ceos of ppg, colgate and starbucks are not pie in the sky guys. they're very smart people who know what their order book looks like and have all been very accurate at forecasting. hence why their companies have been able to navigate this treacherous period so well. their view dovetails with the banks' earnings and we're seeing, yes, remember in 2009, the banks here in this country bottomed before all other stocks so maybe the same thing is going on in europe. could that finally be a carry on the continent? stranger things have happened. if that's the case, if europe is bottoming, then eaton and ppg, could be huge buys here. because companies have taken out tremendous costs in europe not willing to wait for revenue to turn. if the revenues do turn, earnings would be magnificent. what's more important is that a turn in europe even in a year it could help us explain our
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remarkable run here in america. you simply couldn't be getting this move in the international stocks we have had most recently, the bouncebacks after the disappointments. if yours truly flung off a cliff. given the grim news in europe, what could be the basis for forecasting a turn? i think it has to do with politics. the austerity has gotten europe as far as it can go. initially it was about reigning in government spending, that's been done. we know how much spain and italy have to pay to borrow money. same in spain. however, far more important, the slow down has at least arrived in germany, which has exerted tremendous hegemony over the rest of the world. meaning germany would be open to stimulus and a rate cut thursday by the european central bank when the pain is felt in germany, the germans can no longer fight the idea that deflation, not inflation is the issue. so much makes sense here. the run on the european bank stocks, five-year highs and the surging stocks of companies that
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do business in europe. the bottom is being put in, despite what the naysayers tell us. and with it, the worldwide rally. stick with cramer. [ driver ] today, my ambulance knew all about a bike accident, just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.
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you know we like dividends here. after the bell, pepsico, 6% increase, better than a sharp stick in the eye. i like to say there is always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow! never know when our day will come. so, we laugh it off. but whether by tnt or simply old age, sooner or later, we're all going to be strumming that golden harp. every year in the united states, 2 1/2 million people leave here for the hereafter. and it's not free. death isn't just a certainty. it's an industry. tonight, everything you didn't know about the business of death. the funeral director... >> everything has been itemized into itsiv
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