tv Mad Money CNBC May 9, 2013 6:00pm-7:01pm EDT
6:00 pm
>> dan nathan. >> avoiding facebook here. >> beakers. >> chesapeake. chk. and happy mother's day, mom. >> aw. karen. >> i like tkr after relation ap won the proxy non-binding proposal. >> guy. >> take some profits in pcp, folks. >>♪ my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. if you want to make friends, i'm just trying to save you a little money. my job is not just to entertain you, to train you. call me, 1-800-743-cnbc. on a day when the dow and s&p, once again, hit all-time highs before the market reversed, we
6:01 pm
caught our first real glimpse of froth in this month's long rally. not only we fell 23 points, s&p declined 7%. nasdaq edged down 1.2%. you know what, it's gotten me more than a tad concerned. we don't want too many more days when the speculative fervor grabs ahold of us as it did from the get-go. you see froth. froth. that's what we had today, let me say the, froth, it's best left on top of a triple capuccino from starbucks. either we're late for the party or due for a correction or a pause in the upward momentum. i like stair step, fought parabolic. i want to stress.
6:02 pm
why is the bull market such a worrisome signal? you know i preach it's a necessity. we like generals, field marshals, chiefs of staffs, guys with lots of fruit salad on fear uniforms. we have had them in spades on the market. the companies pay a competitive yield against municipal returns the certificates of deposit give us. then the good the drug and the beverage stocks came along. better yields than bonds, followed by the transport signs, the financials finally rallied. then the tax, holly cow, then the industrials and the minerals and the oils, now, though, who are the leaders today? they were the speculative stocks. you know what, they're crummy generals. they're prone to be court marshalled. they are easily busted down. what stocks am i talking about? moderate semi conductor that
6:03 pm
hasn't been able to break out in ages, micron, this plafr stock needs some -- particular stock needs some darning. how about the boston scientific, bsx, it's been trying to crack into the three bs, baxter and barnes and that would be like pa bob seeingert crack into brahm, bethoven and the real army the real navy the real air force were three stocks that we really have to be a lel skeptical about, tesla, the electric car company, green mountain coffee roasters to make with your eggs. not only the vanguard were over the top, they are hated by some of the smartest minds i hear, read about and talk to. yes, the action in tesla, green
6:04 pm
mounitarian, barnes and mobile, these three stocks represent what i call intellecttual shorts. meaning that the intelligencia that dominates this market truly despises tease names. take tesla, there's e here's an 800,000 company making cars, 8 billion, many intellectual sets believe well while hot do not make the party worth anything. the chairman elon musk is a blowhorn who is not to be trusted. they don't believe it's what they claim. they don't believe the guarantees, that's why 46% of the whole darn thing has been shorted an astro nom o -- astronomical amount. in the end, i got to tell you, it doesn't matter what the intelligencia believes because the public likes the car, including me, let's get elon
6:05 pm
musk in here to show us the car. consumer and poors gave it it's highest rate in years. the short sellers could remain sometime even if they're justified, maybe it shouldn't be an $8 billion stock, assuming they are right about tesla in the first place. i am bombarded by people for me to knock tesla. i won't do it. i don't know how to value this thing. i know it's a cold stock involving a cold car. 25% of the people who test drive buy it. that itself true, they can tell e sell every car as long as the stock remains high. it's up a $13 gain. i don't want to touch it. i just want to learn more about it. speaking of percolation, green mountain. have you looked at green mountain coffee today? up 16 points. you can see what happens when the intelligencia gets it right. it doesn't matter a bit. it was the pure sales the
6:06 pm
machine are slowing. it means the stock could be well let's just say going down. now, that action turned out to be true. starbucks was going to declare war against green mountain coffee. koeb phoebe can stand get instead, they announced a five-year partner subpoena. there was peace in our time here. it also includes the possibility starbucks will still the machines. there goes the negative leg of the 64. that means green mountain is a short gone wrong. finally, what can be said about barnes and noble, it might be getting a billion dollars for one of its products. the nook. a newly invigorated microsoft, which has investment in the nook already seems to want the whole device, as long as it wasn't
6:07 pm
tied to the book store chain. is barnes and noble worthless? that's ridiculous. i think investors could get a chance to buy barnes and noble more clooep cheaply than they realize. the intelligencia thinks it's a zero shot. all three of these stocks are what's known as crowded shorts. wise guy managers hate them. they are being gang tackled. all three are elusive. now they're off. hit, they could go all the way. i know many short sellers are telling you, just you wait, cramer, see what happens. i come back and say, wait for what? it kind of already happened. the gains are phenomenal here. again, i do not recommend any stocks. i say, listen, the shorts got it wrong. that's the tough thing about being intellecttually right. these guys never cry uncle. but the intelligencia has been
6:08 pm
wrong many times. they are a little frightening to watch, because short sellers are trying to cover and buy back sho stocks they are shorted. many of the heavily shorted stocks, amazon, netflix, lulu lemon rallied. i think some are trying to progressive conservative what clients they have left by covering these other shortsment they ought to. these are terrific companies that are simply doubted by too many purists on a daily basis. whenever i have seen this speculative stock, when i see they've become leaders. i always say to myself, we are on the red hot griddle movement of the advance. that's a point where you can put a couple sunny side ups on the hot stove and cook them for seconds. leave them on a sec more a second more and you are burnt to a crisp. we need to take back the stocks that are resting. they will not last. here's the bottom line, we want leadership, but we don't want
6:09 pm
wreckless leadership. we don't want foolish generals going in there. let's hope this market goes back to tried and true field marsh l marshalls who get us back to ground. it makes me want to wish these leaders well from today, but the rank and time investors needs more protection than these officers can ever possibly give them. i want to go to doug in florida. doug! >> hi, jim, this is doug in lakeland, florida. i got a quick question for you. >> sure, sunshine. >> caller: they reported earnings yesterday, trance ocean, i'm wondering if it's a good time? >> trance ocean is cheap. i'm not going against this stock. it has fabulous long-term contracts. i think you will be okay in transocean. i'd love to get it below 50. so does everyone else. we want lordiship in --
6:10 pm
leadership, but not the wreckless variety. that means suddenly the market has gotten too high for this guy. we want to let it cool down before we get more capital. "mad money" we'll be right back. coming up, in plain sight, have you ever gone for the cheapest store brand at the pharmacy, then this might be the best stock you've never heard of as the big names fight for domination in the drug store, could this steady player give you relief? don't miss cramer's exclusive with para go's ceo. later, online reservation's giant open table served up profits in the first quarter. but can it compete as more diners want diron plans on the move. cramer hosts the ceo for an exclusive interview just ahead. [ male announcer ] citibank's app for ipad
6:13 pm
when she's on the go. even when she's not going anywhere. citi tablet apps. easier banking. standard at citibank. helps him deposit his checks. jay also like it when mother nature helps him wash his car. mother nature's cool like that. citibank mobile check deposit. easier banking. standard at citibank.
6:14 pm
[ music playing ] with the economy looking like it's really starting to come back, especially after today's fabulous jobless claims figure, what happens to all the knockoff tradedown plays? well consumers buying the store brand versions from food to medicine spichd switched back to the natural brand of stuff because it comes with a brand name or slightly better packaging or will they stick with private label because after all, it's the same stuff and costs a whole darn less. i have a way to clang the consumer's mindset so it will not be reversed. take perrigo, that number could go be growing. they have a generic drug business and a decent size division. perrigo missed the headlines
6:15 pm
slightly. it was supposed to be 2 cents shy of the estimate. some said estimates around bit light. however the company re-affirmed its guidance and while the stock dot dinged on the news, it rebounded most of the way back. perrigo has given us a 23% gain, that was february of last year. let's check in with the chairman and find out more about the quarter and where his company is headed. >> good to see you. >> good to see you. >> this is some time for you guys. it was a great quarter, sometime the headline didn't catch the year over year revenue in growth strength. >> now, we had 18% growth, jim. we were so excited about that, in our consumer healthcare, we had 20% growth. we are doing well with get
6:16 pm
importantly, it's giving us a launching pad like pet care. >> let's talk about pet care. you are making moves, this is not the same old perrigo. it's regarded not as proprietary in that you are buying baibl labels that i didn't think were perrigos. >> that's correct. we got into pet care. i think everybody knows how much you care about your dog and cat. if i ask my wife, me versus my dog, i'm not sure how that would work out. nonetheless, we felt that if we can get into pet care, we can out a quality product, make it more affordable, make it a win for the consumer and tail get better margins, obviously, indeed, it's a triple play. >> we're heading into triple plays. let's drill down on something. we have been saying the economy is coming back, but the consumer is not -- this one permanently scarred the consumer.
6:17 pm
they discovered that these are the same. isn't that what really happened in. >> that's exactly what happened, jim. what consumers have realized is we meet the same fda requirement as a national brand, however, we give them a 25-35% savings. the retailers are saying the we used more and more store brand, we'll improve our operating margins as well. that's what the retailers are dog and the consumers are realizing it. >> did the mindset change did people think you were out of a job if you buy these? now people think you are stupid if you buy the other? >> we're move income that direction, absolutely. we know once a person tries the store brand product, 91% of the time, they will stay with store brand. so it's given confidence that they are getting the safety and the fact that it's a national brand. >> i know you are very kind, you talk about johnson & johnson, my charitable trust owns it. you say they are coming back. you aren't willing to say they are going to take shareback?
6:18 pm
>> we think johnson and johnson is a great company. nonetheless, consumers have made a decision to come over from national braened to store brand. we believe we will hang on to a share now that j & j are out of the market. >> a lot of people say what happens to you is new markets coming off patent, there's two components, though, once it's not a prescription, it can move over, you can get share. the amount skyrockets? >> we are delighted to say as we look towards the next five years in our strategic plan that we see about $10 billion of drugs that are branded. >> $10 billion? that's more than when i saw you last. >> that is correct. over the next five years, we expect those to move from precipitation to prescription to over the counter. that's clearly a very important part. the other part is in drugs like
6:19 pm
this ear tech product. once a product goes over the counter, usages by consumers can go up as they get easier access, that pollen count tripled the usage dosage forms once it wept from fropgs otc. >> one thing since i saw you last, you leap frocked, you are actually developing superior containers for your products. that matters. >> that's important. in our enfant formula business, one of the things we knew was important, the more we made them look leak national word, it invites consumers to compare. our products meet the absolute same safety as the national brands. but if they look like a fascial brand, it invites the consumers to compare. in the case of our infant formula business, it's been very well received. it's very early yet, very well received by the consumer and retailers. >> i thought that stuff was hugely expensive. >> we're about a 50% discount. it's the same thing. >> you look at the same thing,
6:20 pm
right, exactly the same. >> we acquired a business that was a national brand, infant formula manufacturer, acquired that business, took out the marketing, kept the same nutritional requirement. that's how we were able offer a lower price to consumers. >> you have been very inquisitive sense i seen you, this rosemont, a big deal? >> it's a big deal. we're trying to go into adjacent categories but also geographic expansion. we have a chance to go into the u.k., a nice business, a growing par jen, that's how we have been improving our operating and gross mar jen of our company. >> usinex? >> it's a great product. but very expensive product. we found a way to overdock that patent and bring out a store level mucinex at a significant discount. we launched it in march, looking
6:21 pm
forward to next year's cough/flu season. >> what will be your full product? >> i think the mucinex is clearly one of the big ones. beyond that, we have additional products. so the rest of the mucinex family. there is a d and a dm. those are other pollen counts we are looking at into our 2014 time frame. >> one of our companies is pet smart. now you are if get are you going in with sergeant's brand or pet smart brand? >> both. we are in with sergeant and we will bring out a store brand flea and tic product. we are excited about that. that's with the sergeant's acquisition gave us is the opportunity to bring our private label into the pet smarts of the world. >> you have done it just in the last 15/16 months. that's an incredible number of things you have done. that's why i think the numbers are totally sustainable. if you just stayed the same, it might be different. you didn't. that's joe papa, perrigo ceo.
6:22 pm
if you would have known, this was a pretty darn quarter. mad money is back after the break. coming up, online says e reservations open table served up profits in the first quarter. but can it compete as more dieners want -- diners want dinner plans on the move. ♪ [ agent smith ] i've found software that intrigues me.
6:23 pm
it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] and never back down. who believe the american dream doesn't just happen, it's something you have to work for.
6:24 pm
6:25 pm
if there's one thing we can't stand when we're picking stocks is competition. show me an issue where there is a meaningful competition, i will show you a stock. take open table, a company that makes it possible to make reservations at over 20,000 restaurants in america and if you want to make a reservation on the web, you do it through open table t. company got started in 1998. now many restaurants can't afford not to be on it. if the restaurant wants to use an electronic reservation book, they need the pay a one-time installation fee and training the after the to use it. they pay a monthly fee and open table gets a fee for every customer that goes into their system. open table gets a hefty cut. you know what, it's worth it for the restaurants, otherwise they might not be able to fill their places. a real problem. because whenever open tables they have that aren't used that
6:26 pm
night are dead weight loss, open table reported a week ago. the company beat the streets earnings estimates on a 40% basis. it's rising 15.5% year over year. they gave inline guidance with exciteing acceleration in diners seated. i regard that as a key measure. open table has given us a 20% gain sense we spoke with the ceo last year. can it keep rebounding? let's talk to mr. robert, the ceo. >> thanks for having me back on. >> matt, i felt the key number so people are very excited is that you did have this increase in acceleration in diners seated in the first quarter. is that something that's sustainable? >> i think it is, you are right to potent out it is a key pressure. we have a huge growth opportunity in front of us. we are only 15% of reservations in north america. 3% internationally. so high growth rates are
6:27 pm
absolutely in our future. >> one of the things we have been featuring, you have possibly, even groupon, open table is going mobile. how sit helping your sales? is it caution an acceleration? >> it's a massive positive for our business. we are in the hands wherever and whenever they're thighing of dining out. the second thing is we don't have to rethink on mobile. we monetize on mobile as well as the desktop. two big positives, it was 36% of our seated diners in north america last quarter went through our mobile. >> okay. now, i want people to understand the breakdown of how you make your money. north american reservation grew 22%, component prescription grew. are there other streams of revenue consumers should be thinking about? yes, sir. >> reservation alone is 60% of
6:28 pm
our total revenue. >> how about the, is there anybody else that is trying to get into this business? i remember when google bought zagat, i thought they would do it. thought maybe yelp would do it. >> they're partners of ours. it's a competitive perspective, it's a partnership situation. really, importantly, it is, i feel better than ever about our competitive environment only because we continue to invest behind our customers. we are doing new product, new services all the time and investing behind those relationships. i feel goodant our competitive position and dynamic. >> i think the united states is coming back him people are going out more. are you in some countries where i worry about the financials. i know you have a big position in the united kingdom, but that economy is not that good. couldn't that pull down the growth rate entirely for open table? >> you know what's interesting, if we look at the industry overall because here in the world's leading network, we have the ability to look at that time
6:29 pm
the total book of deniers, not only the dine-in piece, but the phone-in and walk-in piece as well. we're seeing in the last quarter, year over year the industry was down 1-1.5%. so there isn't a tailwind, overall, we're looking forward to a tailwind emerging over time. >> fair enough. i know about the foreign exchange issues. i was with danny meyer recently. i know he's close to your company. he feels this company is coming on very strong. then i read paa research. i try to get every single view on this show. this fella says why is everyone ignoring the collapse and sales force opened. is it a sign of satch rakes or competitive pressure or both? i know analysts can answer it and rebut it. >> we don't have a collapse in sales force productivity. we have a great sales force that's doing a fantastic job. the fet additions in the last quarter were a little slower. look at the trend, we actually continue to build out our
6:30 pm
network and look forward to actually having virtually every one of the restaurants in our tam will have an eelectronic version versus pen and paper. it's a better market. >> you have to follow up. in the first quarter, open added, again, pa research, which would represent the lowest lefl level productive generated by the company sales force. is that true? >> we don't calculate it or provide a specific or 2.7 versus our typical reps. i don't think that calculation is accurate. the reality is, we actually have a higher level of attrition. restaurants typically, that would be a bigger added business quarter for restaurants than say the 4th quarter, during the holiday season. there is no trend on the first quarter at all. we look forward to robust quarters going forward. >> i think people at home, wait a second, why are restaurants willing to give you those
6:31 pm
revenue streams? what do they gain from open table? >> they gain a lot of insight noose their business and the ability to delight diners with better hospitality. our open vision is to enable a different differentiated dining experience. when you use open table, we can actually provide a better experience than if you pick up the phone. our restaurants will have more insights into your plemps e preference, you are gluten free, you like a booth versus a table. those insights allow for a better experience. that's a value proposition that rings true for our restaurant customers. we also, as you pointed out at the top of the show, we actually provided an amazing roi. when a restaurant seat goes empty, it's lost profit. it's lost opportunity. because it's a high fix cost business. >> the last thing danny meyer told me also, that the number of people who don't want to can sell reservation by phone and just don't show is incredibly high because they're
6:32 pm
embarrassed, but at open table, people actually do can sell so you get that table back. >> that's right. we make it very easy for people, if their plans change or they're not able to fulfill their reservation to can sell. actually, with our mobile devices, it's getting easier for get that's a real value for restaurants. because a last minute cancellation or actually a no show is really bad. that seat could have been filled by somebody else. >> just, i just need to ask your advice on this. i mean, there are people who football the stocks so to speak. i mean, they get as p.a. research is saying, missed your own guidance, how could this possibly have happened? again, i don't think the guidance was necessarily missed. but i do need the answer to that so i don't feel i'm being too glib about the situation at open table. >> i think overall, our guidance, we met expectations, both internally and externally. last quarter, we had a slight foreign exchange impact. which we take control in foreign exchange rates t. dollar
6:33 pm
strengthened. that slightly suppressed our international revenue by about $300,000. so we're very comfortable and confident in our outlook going forward. >> thank you, terrific. thank you, matt robert, ceo open table. i myself am a constant customer. good to e'you, sir. >> thank you, jim. >> you want to check all the research. i asked some tough questions for research that doesn't believe open table is doing well. i feel those metrics are all going in the right direction. matt roberts, ceo, open table, open. stay with cramer. jeff... hey, scott! this is no time for lollygaggin', lad. the chickweed and the dandelions are wreakin' mad havoc! now's the time to send in the scotts turf builder plus 2, man! it kills weeds while it feeds and strengthens your grass. feed your lawn. feed it!
6:36 pm
[ music playing ] it is time! it's time for the lightning round. we talk as much as we can until you hear this sound. then the lightning round is over. are you ready? it's time for the lightning round. first i want to go to greg in nevada. greg! >> caller: hey, jim, boo-yah from reno, nevada. >> boo-yah, chief, what's going on? >> caller: i'm grateful for all the education you give me on
6:37 pm
your show. >> thank you. >> caller: i want to know about suntrust. >> oh, stefanie link, buy, buy, buy. it's drives us crazy. that stock is punching through at 33. 10% gianni ahead. i need to go to stan in florida. >> caller: jim, boo-yah from lakeland, floridap. i got a spec stock. it's protection energy. >> i don't think that's spec. as a matter of fact, i like it. buy, buy, buy. it's hard to catch up with the others because it's got a good yield. let's go to john in maryland. john. >> caller: boo-yah, mr. cramer. >> yo-yo. >> i'm looking at teva pharma. >> no, that is a don't buy, it's got real disappointments with a drug rolling over eventually. it will go off patent eric in massachusetts. >> caller: eric from boston.
6:38 pm
boo-yah, to you, jim. my stock arm holdings. >> it just went up 10% in the stocks rally. let it come down then buy, buy, buy, buy you know i was rights intel, i said it, i was right. let go to ken in michigan. ken. >> caller: a big, bbbbb boo-yah. >> i love that stuttered boo-yah. i have always been a spartans fan. it was a the name of my high school team. >> caller: cramer, my stock is biogen. >> biogen is coming back. i think it will go to 200. people will say it's head and shoulders. i don't care. joe in connect. joe. >> caller: a big boo-yah to you in connecticut, mr. cramer. >> nice. >> caller: the stock i want to ask you about is nokia. >> the other day i saw that, amd is up guy janetically.
6:39 pm
i think 55 can go to 45. lisa in missouri. >> caller: hi, i want to tell you, your staff is so nice. >> they're the greatest. >> caller: and my question is about molz, mondelez. >> not a bad quarter. going to dan. >> caller: hello, dr. cramer. >> i know, i got that degree. water going on? >> caller: all right. how are you? >> how are you. >> caller: pretty good. hey, i was calling about first energy. what do you think about that? >> i think it's a low quality utility. that's okay. it delivers 5%. now i like aep better, though, that, ladies and gentlemen, is the conclusion of the lightning round. coming up, blue prin to the a buy. breaking out big news, we're not talking romance. it's the company spin-offs that
6:40 pm
6:44 pm
do is talk about big fame breakup. unlike people, we're actually trying to make you a lot of money. so tonight, i wanted to tell you about the anchor breakup. that's why i'm calling. these are the ones that are bullish about this tactic, as long as the ones on "mad money" there are terrific gains. when you see how consistently this works, you will be surprised companies don't break themselves up more often. first there was american standard. ast. they made heating systems, champion toilets and faucets. three totally unrelated
6:45 pm
businesses, that's why in february, 1997, american standard tried to break up into three separate units. they sold the kitchen and bath unit and wabco and trained it to train not like the group, which was sold to ingersoll rand. towing, nobody will aware it. before the breakup, american standard had an enterprise value minus caps of 11.9 billion. the business sold for 1.10 billion. trane got sold. in other words, you basically got wabco for free. it has an enterprise of 4.4 billion. american standard unlocked 36% gained almost instantly. okay. wow! we feels after the breakup, pretty good. the second anchor breakup.
6:46 pm
tyco, tyc. at the beginning of 2006, tyco told us it was splitting into two separate companies. tyco business coindividualyen. -- cocovidien. they american the flow control business with pent air and keeping the turning business as a part of the subcompany, before the brakeup announcement, tyco was 68 billion. it's all worth 17 billion of value creation simply by splitting the company up. how about altria? they are spinning off, in january the next year, they announced a huge breakup, putting the domestic doik tobacco business to philip morris. in 2011, kraft spun off out of
6:47 pm
altria decided to spin into a company still named kraft and a different company mondelez. altria 181 billion. today, philip morris international alone is worth that much. $174le billion. mondelez and kraft, 190 billion. altria has more than doubled before the first spentoff announced. that's where the s&p was just up 14%. oh, and that 100%-plus gain doesn't include the bountiful returns you get over the years, because they pay hefty dividends. wow. those are the big three avera r average -- anchor breakups. what about the breakups here on mad money? marathon oil said it was breaking up into an oil and gas and refinery company. a few years later, marathon and
6:48 pm
conoco philips as a company i thought could follow in marathon's footsteps. marathon gave you a 30% gianni between then and when the break joup happened in 2011. how about conoco? finally broke up in may, 2012. since then, conoco phillips are up. i think occidental oxy could be next. which is why my charitable trust has been requested when it went down to the low- to mid-'80s. i bet you can get an ad vans similar to conoco if they would bring out the cleaver, how about this covidien, it was spring off its far ma business, doing substantially better than the 32% s&p over the same time
6:49 pm
frame. co vidien will trade. healthcare abbott labs had a national breakup in okay, 2011. at the time the company had 95 million. breakup finally occurred this january. now abbott labs xaend 141 billion. 46 billion by announcing the company is splitting. there is fortune brands, putting the meen beans, the home and security for faucets, and locks. i recommended it wren it happened. it is up 42%. i recommended fortune brand securities two months later, a 126% gain. october october, when the 912, i said -- 2012, i said buy news
6:50 pm
corp. they announced the stock did very well today. they got behind it as a breakup play. ahead of the market, after wall corps, a 70% gain, much better than the s&p gain of 20%. last may, dean foods, because i thought they could make a bundle taking their natural and/or beganic public. that's what they did. 34% gyne. all this because of the stroke of the pen. since then, it's announced a major assets sales, 34% gianni a. 13% gianni for the s&p. here's the bottom line. now when i tell you i like this, af the potential breakup. you know i'm not blowing hot air. they have as all these examples illustrate, breaking up is a terrific way for many companies to create value for you, the shareholders.
6:51 pm
6:52 pm
6:53 pm
6:54 pm
because of mobile and the pick of the local commerce. groupon and yelp have managed to harness the rise of the mobile app vs. the desktop and return the growth to the american consumer. now, i don't want to get carried away here, groupon is a sizable international business in terrible decline an there are real issues about whether they are making money at all. the company with cash flow negatives, meanwhile, overnight, yelp has become one of the overpriced stocks in the book. however, the core business metric like more couponing for coupons and the more reviews are headed in the right direction. many people may not make it. it was premature. it soltd sold off. yelp has a pulse. it has accelerating growth. we call that r, we remains the
6:55 pm
holy grail. most of the internet companies i follow, indeed, most of the tech companies i follow have been hurt or annihilated from desktop to hand-held devices. uniquely, these companies develop. i can't tell you how many times they use local. local use accounts for 45% of groupon's business up. that conversion explains the bountiful business they are doing in north america. groupon made sure that everyone who listened to the call heard local business experience and some id sequential growth because and i quote we are a local company. yelp came on with real serious businesses that reached outside gains, 8,000 by claiming a free business owner account and a 23,000 gain if you advertise, even better, the local use
6:56 pm
explains how 36 percent of the company's icers found businesses up from 25% a year ago. that's how you get local ooef revenues up. these are remarkable number, they're a testament how yelp is a model. more importantly, i believe neither company could be doing as well as these numbers cate if the american consumers go out more, shop more freakily. that gives these two companies secular and consumer growth and cyclical growth. which are the real reason behind the resurgence in stocks. i can see why people might be willing to pay single digits for the company. in the end, it doesn't make money. management, though, clearly helped the cause. yelp could bring it rather quickly. the market cap gives little room for growth. so it, too, might not have that
6:57 pm
much upside t. bottom line, they are hot at least for the moment because of their mobile quality. given the nongoogle nonyahoo internet stocks, nothing is sure and nothing can ever be taken for granted. stay with cramer. next, it's win or go home for hockey's franchise. jeff... hey, scott! this is no time for lollygaggin', lad. the chickweed and the dandelions are wreakin' mad havoc! now's the time to send in the scotts turf builder plus 2, man! it kills weeds while it feeds and strengthens your grass. feed your lawn. feed it!
6:58 pm
6:59 pm
e-trade. less for us. more for you. you get 5% back, on everything. everything. everything. everything. everything. everything. everything? [ all ] everything? yup! with the new staples rewards program you get 5% back on everything. everything? everything. [ male announcer ] the new staples rewards program. get free shipping and 5% back on everything your business needs. that was easy. and never back down. who believe the american dream doesn't just happen, it's something you have to work for. ♪ we're for those kinds of people. because we're that kind of airline. and we never stop looking for a better way. it's how we've grown into america's largest domestic airline. we are southwest.
7:00 pm
welcome aboard. you tomorrow! nbc sports welcomes you to the following presentation of the national hockey league. >> in the stanley cup playoffs everything can change in an instant. montreal canadiens less than 23 seconds away from tying the series at 2-2 before a 23-year-old pounced on a loose puck in the goal crease. >> sent it across! they score! >> left side shot blocked. another shot! scores! they win it
180 Views
1 Favorite
IN COLLECTIONS
CNBCUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=767120286)