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tv   Mad Money  CNBC  August 22, 2013 11:00pm-12:00am EDT

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t, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. 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. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friend, i'm trying to save you money. my job is to educate you, teach you, call me, 1-800-743-cnbc. come on, guys. get it together l will you? the markets are too important to have a backup plan an emergency plan when trading is halted, which is what happened today
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when the system flash froze. and the nasdaq simply stopped trading for three hours in the afternoon. >> boo! >> every night i tell you how the market closed. well, tonight, but this evening, i don't feel like sharing the numbers with you.ly f the nasda. dow rallied 66 points, s&p climbed 0.8% and the nasdaq advanced 1.8%, i think. i find what happened today profoundly disappointing. disheartening. you know what i'm? plain sad about it and angry too. to recap at 12:20, the prices just stopped. no one said anything. the quotes just seemed to freeze. we heard nothing from anyone. from anywhere about what was happening. the new york stock exchange continued to trade, and we don't know what happened at 12:20. the prices came back to life at 3:25. no harm, to foul, right?
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easy come, easy go. no official came out from nasdaq at that time either. what give, guys? let me go over this. let me go over why this is such a travesty. first, there are officials involved with nasdaq. it has a chief executive officer, got a chain of command. any one of them could have gone to the studio and said, we don't know what happened, all right? we are trying hard to figure it out and we apologize. we are sorry, we'll do our best to get to the bottom of this. then the official can take some questions, explain what's happening, kind of what the nfl had to do, the glitch in the super bowl, but they delivered. they weren't sure what the matter was in the nfl but they just did the best to keep you up on what was going on. why is that important? because many of the people have their life's savings in the stocks. it's something that work, that it's open, you can buy it. you can sell it. we have so many instances where the machines have gone awry from the flash crash to last year's miniflash crash.
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and then the facebook ipo debacle and recently a train wreck in the software glitch at goldman sacks. like if you a -- if we glitch something we're fired. but they glitch everybody is fine. which brings me to the second disappoint, where's the government? why isn't the s.e.c., come out and say, we are looking into this right now. we think that there are real issues that we have to investigate here. in the meantime we're halting all the etfs and index trading because many have nasdaq stocks in them. so the notion they can be traded fairly is compromised. make sense, right? they have nasdaq stocks, but no one knows where the nasdaq price or it's guess work or does someone have it over you? and then a battle plan should be drawn for when it goes down. i understand after 9/11 the stocks couldn't be traded but there was no physical infrastructure cause today. the s.e.c. should not tolerate
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this anymore. the s.e.c. has to act and act fast to make they're more responsive. that's no uber s.e.c., it's just the s.e.c. we want them responsive not only to the professional traders but from those who need protection from this nonsense. the s.e.c. should be enraged about it. i know this isn't life. it's just money. not a boeing passenger plane, an engineering marvel which is a virtual plane in a plane. so if the first plane breaks, the second plane kicks in. i happened to be on one, the second one kicked in seamlessly. okay, nasdaq we can't ask you to build the equivalent of a plane within the plane, but where is the backup system? why isn't there a server where the nasdaq can flip a switch and maybe slower maybe, but at some pace that makes you feel like it's not a farce.
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we know there are such things as redundant systems. we know that they're costly. i'm sure the nasdaq doesn't want a sedge second system ready at all times because it would be expensive and hurt the earnings per share. aps, sometimes we sacrifice everything on the altar of profitability. the traders have so much clout in washington that i bet the s.e.c. couldn't even order them to do that. blow back would be too huge. like not worth the effort. still though sometimes that's the breaks. why isn't there product safety here? why can't the government say if you want to handle the stocks you have to have a redundant system? and because no one came forward from the nasdaq to say anything on a timely basis, why didn't someone from the s.e.c. demand that someone come to the nasdaq studio and come forward, tell us what's wrong. tell us what's happening? why can't someone from the government express outrage at something that's outrageous? i have a thought about why these things occur. it's not that the system is too complicated, it's obvious that's the case. no, my theory is this.
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many professionals have become inured to this kind of nonsense. they say, look it comes with the territory. they shrug their shoulder, throw up their hands, well too bad. well, it is too bad. and you shouldn't shrug your shoulders, but there's no sense of outrage anymore. no one gets shaped or outed, no one loses his job. just like in the facebook ipo disgrace. that's not the way it should be. i'm not calling for a show trial, a kangaroo court or star chamber. we need to investigate what's going on, that these things keep happening and the government has to take action behind the systems which are so fragile that these things keep happening again and again. the s.e.c. has to represent the regular guy, who is being hurt not helped by this. the s.e.c. has to recognize that the playing field, so leveled by arthur levitt in the '90s and helped by dick grasso has gotten very tilted to big rich trading firms and against the moms and pops, against you. that's just a terrible thing. should not be allowed. here's the bottom line.
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we have to get to the bottom of this. we need the government to lead and the nasdaq to be investigated or the what happen and the government absolutely has to demand a disaster plan to end these debacles once and for all. doug in florida, doug? >> caller: hey, boo-yah, jim. >> boo-yah, doug. >> caller: the nasdaq today as a public service announcement, they still know nothing and i know this because i called the fbi. as it's being reported on cnbc, i've worked with them before and the ramifications of this, just transcend just the nasdaq. with implications in the nsa and everything else going on, the market, the personal, the corporate and the national security it's only as good as the weakest electronic link. and i would love you to straighten them out once again. and help us all. >> well, if it's hacking, then i know that the bad guys are always one step ahead of the good guys.
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there are some great companies involved in trying to solve the problems. i spoke with meg whitman about it and the hackers are very, very smart. i think it would be fine if they said, listen, it could be hacking. just anything. just get in front of the cameras and you tell us, so we don't think it's a complete mickey mouse operation run by no one. which is what it seems like today. mark in colorado, please? >> caller: hello, how are you? >> all right. how are you? >> caller: not too bad. gme. >> okay. they have a very strong -- they had a reported great quarter this morning, stock was up 4 bucks. a lot of people are betting against it and i thought it wouldn't go higher, but we changed our mind and the bears have to change their mind too. patrick. >> caller: hello, jim. boo-yah. >> boo-yah. >> caller: we got the news today about wells fargo and the layoff, but the stock is down today.
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so i would have thought that the stock would have gone up a little bit with the interest rates going up. it looks like the future is kind of shaky. what is your opinion of what we should do because -- it shows it will go around 40. >> right. well, wells fargo is in my charitable trust. we fear that the refinance market is so cooled that it's going to hurt earnings, that's why they had to cut a lot of the jobs. but overall it's an unbelievably great franchise. you have to think long term just like warren buffett who's made so much money in the company. what happened today should not have happened. it breaks my heart to watch. someone needs to be held accountable for the things. they can't go on forever. i have to tell you i will fight, i will fight for you until we get to the bottom of it. you know i'm good for it. "mad money" will be right back. coming up -- spice that's nice?
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the cookout is turning up the heat. tonight, cramer breaks bread with two companies that could be your meal ticket. first up, fried chicken may look out of place on your grill, but is it the perfect fit for your portfolio? find out when cramer talks to the ceo behind high-growth fast food name popeyes. and later, hitting reset? old school computing play hewlett-packard was having a great year. that is, until today. >> stock down in the premarket as they report an 8% drop in revenue. >> cramer has some thoughts on where the stock could be headed after today's massive decline. all coming up on "mad money." don't miss a second of "mad money." follow @jim cramer on twitter. have a question? tweet cramer #mad tweets. send jim an e-mail or give us a call at 1-800-743-cnbc.
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there's still stocks that are working, working well in this environment. you just need to know where to look. case in point -- afc enterprises. the company you know as popeyes, which happens to be the number two chicken chain in the country with over 2,000 locations. they just reported that what they shot the lights up and it's up an astounding 74%. this morning, i spoke with cheryl bachelder, the terrific ceo at one of her locations in brooklyn, new york. take a look. >> another best in show. by far i think the best of all the ones that i'm covering in america's secrets for why you're able to do that and to accelerate store growth? >> i'm proud we could do it quarter after quarter after quarter. our same store sales are up and we're building more and more restaurants every day. innovation, cost savings, drive the top line, run a better
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restaurant for the guest and remodel your restaurants so they look spectacular for the eating experience. >> when you model, you're picking up a bunch of percentages at comp stores so it's additive the money you put it in. >> absolutely. we see a lift in the restaurant when it remodels that's huge for the business and the customers are staying in the dining room longer and enjoying popeyes more. >> now, 40% go into 60% in terms of remodel. so therefore, you have a clear road map for next year too. >> absolutely. by the end of this year, 60% of the system will be remodeled and it will be close to 80% by the end of next year. we are excited about the transformation of our system. >> people don't think of innovation when it comes to food, but you're trying to do entertainment at the same time as bring out new dishes. >> in our business you have to make it exciting and give people a reason to come. waffle tenders are in the restaurant, it's exciting, something like you've never tasted before. it's a reason to try pop eyes again and then you come back one
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more time and enjoy the famous fried chicken. >> national ads you're doing, they're working. i know in the minnesota additions which you brought from a bankrupt kfc franchise you're seeing a lift from that and are you seeing a lift from social? i know that's important to you. >> yes. we see great results in the markets like minneapolis, because we have advertised. that's pent-up demand to get into the popeyes. >> right. >> and yes, we're quite a cult following brand. so social digital is fun for us. our guests talk to the other guests and tell them the reasons to come to popeyes. >> let's go back to the additional stores. up to 2,153. that's a very clear acceleration versus the last few times we've talked. >> yes. >> that's because you're starting to go overseas too or just because you're finding better markets, more franchises? there's a bounce between what the franchiser gets and what you get.
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>> what's exciting about popeyes we have this excellent growth ramp in the united states and we're starting to really accelerate that. our net new unit growths are up 5% which guided to 4 to 6. it's because the unit economics work for our owners. customer loves it and the franchisee loves the business. on top of that we have the future opportunity for international. it's a double win for popeyes. >> when i speak to patty doyle at dominos, people didn't realize that dominos could well do in france or didn't think it would do well in india. you're in turkey. is there an analog to that? well if it works in turkey it can work in the other countries? don't you think europe is ready? >> well, you know, we have not found a country yet that doesn't like our food. when you think about the world's food, it's spicy, it's rice. it's chicken and seafood. it's everything that we make and make fabulously. so we have entered successfully the middle east, asia, latin
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america, absolutely everywhere we go we win. >> when you look at david novak and what he's done with young, like howard schultz has done with starbucks in china. can you imagine you'll be talking to the one tier and two tier cities and how many you can handle? >> well, i think the question is just how high is up for popeyes internationally because our brand plays well. we win market share internationally like we do here. >> i saw the stock again at a 52-week high. i know you're buying back stock, but if you're done remodeling what are you going to do with the cash? >> well, the first use is to invest and continuing to grow the system. this is one of the few systems in the u.s. that can still double the foot print. >> right. that's really important. i don't people realize that the essence of great restaurant investing is when you have something that can still fill in whole parts of the country. once they get filled up it's more difficult. but you have the runway. >> we have the runway in the u.s., followed by the runway internationally. we are just at the beginning of exploiting that growth. >> okay. i know that when i listen to a chipotle call, we're in a
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remodeled store. what kind of -- what kind of revenue can a store like this do? >> well, this restaurant is doing just under $2 million a year. our sister average is $1.2 million. >> not necessarily in -- i mean, i have place in brooklyn. this is not necessarily the most populated part of brooklyn. people are picking it up and taking it to the office? >> well, they're eating lunch and taking home dinner. there's 4,000 guests coming through the restaurant every week. they're getting excited about the way that the place looks and feel, the spices that are expressed and the design. the unique characteristics of our food. the history of popeyes's louisiana heritage. it does reinvent the brand for the guest. >> how can you expand it? >> well we have been a great dinner concept for taking it home for your family. what's growing for us is portable on the food for lunch and dinner.
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when you're launching the waffle tenders, it's great car food. >> and when i speak to sally at the buffalo wild wings, the chicken prices are coming down. that's meaningful for you? >> absolutely. we had a great profitable quarter. >> i should have talked about it earlier. it's amazes. >> our franchise restaurants are making 23% profit before rent which is outstanding. as our average unit volumes grow it's getting better and bert. that's a great story. >> is there some kitchen lab that you have? because i ask that because the promotions are rather dramatic. there are other chain, i don't immediate to slag them, the innovation has stopped. the national ads -- i feel there's a treasure hunt aspect about them. >> yes. the treasure hunt starts and we have this place called louisiana which has the best food in the nation. >> i know.
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you're right. >> it's a great place to search for treasures. we have the chicken and the seafood of the gulf and the special spices of the nine nations that came together in the region. there's no end in sight. we get together and create 80 new possibilities for popeyes and run them through the testing process so that pipeline is exciting at popeye. >> one last thing, because you have canvassed the whole nation. american consumer we have a split view. if i'm selling hard goods at home depot i'm thinking they're good, but apparel is a disaster. where does restaurant fit in and where do your stores fit in in the american psyche right now? >> i think right now we're building market share at a rapid clip. we have pulled up six market shares -- >> taking share from other concepts. >> absolutely. we take share from all the top name qsrs. >> so that would be kentucky fried chick. >> burger king, mcdonald's, everybody. because the frequent fast food user is our user too.
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but we're bringing them in with innovation at the price points they can afford. i think our business performance is particularly remarkable in the current environment where people are still experiencing high unemployment and low disposable income and high gas prices. your standout innovation and care for our guest is helping us set apart from the category. >> well, it's helping shareholders too because you have doubled the stock since we first -- we started to talk to each other. thank you so much, cheryl batch elder, ceo. this side may be done, but there's more cooking on tonight's show. natural food company hain is on fire. is this quarter a healthy catalyst for a long time rally or is the move already ended? cramer's exclusive is ahead. plus, hitting reset? old school computing play hewlett-packard was having a great year. that is until today. >> stock down in the premarket as the tech giant reports an 8% drop in revenue.
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>> after an exclusive interview this morning, cramer has some thoughts on where the stock could be headed after today's massive decline. all coming up on "mad money."
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what do you do if you're meg whitman the ceo of hewlett packard? how do you stop the bleeding when they saw a revenue drop 8% alone? how do they turn around the sales in 2014, and she predicted an increase in revenues last year to saying it could be unlikely? those are some of the questions i asked meg on "squawk on the street" and she gave me the party line about how it's all under control. and despite the $3 decline in the stock today there's some good news. sure, they reported bad numbers including the enterprise sales so important because doing well away from her off 9%.
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but the bleeding has been staunched. been staunched for a bunch of quarters. more than that, last in the disappointment, the cash flow from operations at a healthy $2.7 billion. down from last year, but the company did knock off $1.7 billion in debt which is the sixth consecutive quarterly debt reduction of over $1 billion. that's pretty special. it's still daunting. i tried to find analogs so they can make a come back. she suggested to look at the two greatest turn around, the ibm turn, that was engineered beginning in 1993 and the transformation of starbucks by returning howard schultz in 2008. admittedly in shultz' case the world didn't turn against coffee the way it is turning around pc, but starbucks was looking pretty dire. the stock had gone from $38 down to $20.
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the stock did dip down to 7 bucks under shultz' tutelage. but ibm fell down to $10 in 1993 before gershwin came in and he got it growing pretty quickly. with it rising six years later. not only did he have to arrest the balance sheet decline, but he also had to invent. let's call it reinvent the company. taking it away from being the iron behemoth into the software and service play with a hardware tale. unimaginable. it was far more difficult considering ibm was hemorrhaging cash and was worried about meeting payroll. as meg said this morning. he brought in the late jerry york and york found ways to cut costs and build cash while he changed the mission entirely. that's where whitman finds
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herself right now with hewlett-packard. she's still fixing the obliterated balance sheet, while trying to reinvent the business as a cloud base storm with a personal computer and printer kicker. the problem is that the industry is moving so quickly to smarter, smaller devices that costs very little and easily tie into inexpensive servers and at the same time, when it comes to enterprise and personal computing spending, global demand outright shrinking. i just don't know if this transition is happening too fast for them to transcend the rip tides. i thought about it all day and all night. now, the stock has had a remarkable run since she took the viability off the table last year. hewlett had touched $11 before rallying into the close of the year. it hadn't looked back until the carnage we saw today. it's still up year to date. that move made sense, but all the stock done in the two years
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since meg whitman started is going back exactly to where it was when she came in. and now i have to tell you i think the turn has badly regressed. so what does get this thing back on its feet? you'd think it could be new products, right which is something that meg mentioned is responsible for the apple turn, but she quickly dismissed that analogy herself as there's no product that's as revolutionary as the ipad. she does moon shot, or you can go to the website and watch a video about this. it's a product that can harness humongous internet traffic, trying to keep up with the web's explosive growth. remember autonomy, smart search software and that's an unappreciated and fast growing niche that the previous ceo simply overpaid for. but it is real. still though there's nothing in the lab that's going to move the needle particularly for the consumer. the old days seem to be long gone. unlike the old days there's not enough best in class anymore. personal computers they're a vicious commodity.
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and semiconductor makers, microsoft, lenovo, very low cost manufacturer has taken over as the largest pc maker. the bragging rights crown has been lost. worst, dell is depressing earnings, something you might not be able to as a private company but that deal has to get done before the price action stops. in fact the only standout area is printers, and at least units went up. good news for the division that generated $5,000 this quarter. and so with that in hand, whitman needs to go back to making brutal cuts to the work force again as she hinted this morning. when only two-thirds down with the five-year restructuring. she has to search for cheap, small scale acquisitions to get somewhere. good luck with that, meg. is whitman waiting though? i think it's better than that
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because of the cash generation, but there is nothing in the near term product flow that can turn around sales in this product. how about breaking up the company? put that to whitman. it was considered before, nothing has changed. and the costs would jump as she tried to do it. merging with who? she can and will continue to buy back stock once the material information is done. there was a little glitch, they couldn't buy it back this quarter. but all that's to check the dilution. and i think the board has room to do it next year. the simple fact is this. unlike howard schultz who could turn starbucks into something that beckoned all during a coffee bull market, there's not a lot of new product that can turn it around. the ibm path is the hope. i believe hewlett-packard can turn into the value added software storm company that has the decent printer division and it can maybe be outsourced to another firm. can it be done? yes.
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but without some economic growth worldwide, something that seems to be dimming every time we look, it can't happen soon enough to make owning the stock a worthwhile proposition right now. this isn't a wait until next year situation. i think it's a wait until 2015 scenario. maybe only then will have this company have enough cash to make sizable acquisitions, and having the help with some economic tail winds and not head winds. hewlett-packard needs three things. it needs new product. it needs worldwide growth. it needs a lot of luck. and believe -- i don't know. luck should be the last thing you're banking on if you want to buy it right here. let's go to dan in florida, please. >> caller: boo-yah, dr. cramer. how you doing today? >> all right, how are you? >> caller: good. in regards to cisco, i was wondering is there still an
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upside to getting into this stock? because i know that they have been laying off employees and i was kind of afraid, you know, to jump into the stock -- >> look, i think the answer is yes. my charitable trust we bought some for the trust this morning. into the weakness caused by hewlett-packard, but a i think cisco is doing better them. the conference call that chambers gave, i don't think things are merely as dire. i think chambers didn't want to lay off the people and say things are great. but things are much better than people realize there. i think it's a solid buy. buy more of it. dave in michigan. >> caller: yes, jim. how you tonight? >> real good. >> caller: my stock is oracle. knowing your previous position is it time to get into the cloud or wait -- >> i know they're doing that deal with mark and i know it's inexpensive on an earnings basis. my charitable trust we often talk about what's working. my charitable trust took a loss in oracle.
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decided never to look back. i thought the execution is so sloppy there. it shouldn't be recommended. that's my posture. i'm putting a don't buy on oracle. no one ever said turning around a company is easy. hewlett-packard, they need new product, new growth and most of all they need luck. stay with cramer. mom, dad told me that cheerios is good for your heart,
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"lightning round" is sponsored by td ameritrade. >> it is time. time for the "lightning round." the nasdaq doesn't have the prices. look, play the sound and then the "lightning round" is over. are you ready? time for the "lightning round."
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let's start with cliff in new york. cliff? >> caller: good evening, cramer. boo-yah to you. >> boo-yah to you. >> caller: i was giving you a call. i run a company in brooklyn, no called cle communications and we own hp stock among other stocks. i was wondering if i was -- if i should get involved in another printer company, xerox? >> i love xerox. it's doing pretty good. not hitting the bull market yet, but i think it might. let's go to tim in pennsylvania. tim? >> caller: boo-yah from philadelphia, jim. >> good to have you on the show. >> caller: thank you. i'm a young invest we are a long-time horizon with anchor trial results coming in mid september, is amaren good for my stock? >> it's a bit of a call option. binary trade.
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one of the riskiest possible. it is so risky that i can't count on this. but you said you're a young investor so i'm going to bless it for you. for a young investor. let's go to art in pennsylvania. >> caller: boo-yah, jim. working hard in philly for all the hairdressers, and we're talking about a stock that i bought in 1984 called baxter international. bax. >> yeah, they broke the stock up it would go right to 90. i constantly talked about it when i was at goldman sachs. it's a good company. but the sum of the parts is a lot bigger than the whole. pam in ohio. pam? >> caller: yes, hi, jim cramer. i bought shares of bidue at 187 and today the stock was up at 1 -- >> i don't like the chinese stocks. the only reason i ever cotton to buying them is because they have
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american life financials. take off half and play with the rest. i'm not done. i'm going to andrew in new jersey. >> caller: hello, mr. cramer. thank you for taking my call. i'm a long time viewer and first time caller. the stock i have in mind is called linked in. >> i reiterate, they have an unbelievable business model. they're doing fabulously. really well run. this is a great stock and a great company and i need to go to kevin in new york. kevin? >> caller: hey, jim, thanks for taking my call. >> absolutely. >> caller: i'm calling about interpublic group of companies, simple ipg. what kind of leg -- >> i think it's had a lot of legs. i think the economy is coming back that helps advertising. but the stock is not going to spike yet. i say don't buy. leave it at that. that, ladies and gentlemen, is the conclusion of the "lightning round."
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>> the "lightning round" is sponsored by td ameritrade. coming up -- eyeing organic. paying celestial is moving higher after being a cut above earnings estimates. tonight, cramer sits down with the ceo to see if there may be more to move as cookouts with cramer heats up. [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. uh-oguess what day it is!is?? huh...anybody? julie! hey...guess what day it is?? ah come on, i know you can hear me.
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all week we have been having a late summer cookout, introducing you to my favorite food and beverage stock. if you like to play it more defensively after the big run, maybe you should. now, monday i told you that hain celestial, the organic and natural food, behind the garden of eden, and a host of other brands was best of breed in this space. so you can consider buying some ahead of the quarter which hain reported, well, just last night. sure enough, the company blew them away. they delivered a 3 cent up and substantially better than the market is looking for.
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they're growing aggressively and growing in the u.k., where sales were up 114%, courtesy of the recent acquisition and they expanded by 700 basis points. no wonder the stock ordinarily $8 is 11% higher today. hain is giving you a 349% return since i got behind it on april 2010. it's up since we spoke to the ceo in may. and let's check in with the bankable ceo as we approach the 20-year anniversary. mr. simon, welcome back to "mad money." >> hey, jim. good to see you. >> good to see you. congratulations. >> thank you. thank you. >> so i'm watching this stock. the stock is going -- it's up 7, 8, it keeps saying 8. then i realize the nasdaq is frozen. it's at 8.
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>> you know what i thought what happened, i said you know what? there was so much volume in the hain today and so much excitement that we froze the nasdaq. you know that? we're a nasdaq company what happened? >> and i hope it -- >> there's a lot happening with the nasdaq. pretty surprising that this happens. >> yes. >> in a day -- listen. if that happened at hain i'd be in a lot of trouble. >> someone would be fired. would someone be fired? >> listen, my customers expect quality. because that's what i sell. >> right. >> you know, as a ceo, i expect my stock to trade the whole day. >> all right. sound like you're making some calls tomorrow. >> a day after earnings when you're not trading for an hour and a half, you know -- disappointing. >> enough said. last time i saw you -- >> you wore this -- you're giving me hugs and love the last time. so it's great to be back on. >> i called you, there was sort sellers -- we knew there were short sellers and the big issue
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was you have no organic growth. how is the organic growth? >> the big issue is no organic growth, no more acquisitions. what i bought in the u.k. was a bunch of crap. >> right. >> number one is, listen, last year this time, we bought blue print. we recently -- >> right here. that's an exclusive to whole foods, right? >> you know, this juicing category is on fire. ellis. somewhere here, right here. you know what, jim, you know what recently happened? obesity within children has been reduced. >> i saw that, the cdc had the great numbers. >> that is great because we're selling more and more natural organic foods. more and more whole foods and more and more consumers -- >> you think those are great? >> great retailers. they know how to sell natural, organic foods and personal care products.
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so you asked me about the u.k. >> yes. >> you know, you have great retailers in morrisons in the u.k. they have an obesity problem too. they're looking for healthier foods. not so much organic, but natural foods. lower calories, et cetera. >> they're willing to pay up, right? people will pay up for quality. >> listen -- >> if it's good for you. >> in my last neilson numbers that came out, our consumption is up 7.5%. one of our frozen businesses was down, but 9% consumption. conventional food business is flat. it tells you that consumers are moving over from conventional food, and buying more and more natural organic products. >> right. that is definitely happening. now, i've got you on this one. ready? you said, well, we have learned this. consumers don't want to buy soup in cans today, okay? >> okay, you got me. listen, you were in one -- whoa whoa whoa whoa whoa. let me talk about it. number one, you know, no salt added. which is great. >> i know. >> no, no, it's a small part of our business today, but it's bpa free. i received a letter this past
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week from the breast cancer association asking if there was bpa in any of the cans. >> bpa? >> yeah, it's a sealer on the -- >> not just gmo, but we have to worry about bpa? >> yeah. the thing about consumers today they're educated. gmos, bpa, in regards to pesticides and personal care products and para bites and formaldahyde is not in the products. >> i want to talk about innovation. you have innovation in spades. what does innovation add to organic growth? >> let's come back. if i look at organic growth today, i would say you're growing high single digit, low double digits. we're out there. we came out and said it, there's no organic growth. hey, my organic growth is there. so i would say it adds 3 or 4%. >> that's why your stock was up 10% today. >> as i say on the program and my first time on the program i always said, eating healthy is
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not a fad, not a trend. it is becoming more important. more important part of life. your vegetarian daughter and mine -- >> who will see each other this weekend in school. but anyway, chairman and ceo of hain, i say congratulations to a stock up 10% on any given day. stay with cramer. >> thank you, jim.
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could we be more hostage to bonds?
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i can recall whole periods where we had to keep one eye on the bond market, but both eyes? and that's where we are now. we can handle some sustained damage to earnings if bonds come down, but this an angry, mean bond market. it is bent on revenge and a fed up fed chief has to keep doing on the lifting as congress faces lifestyle issues and the president wants more taxes. the fed wants more people put to work. it's done everything in its power, pushing on a string right now. how many houses can ben bernanke build and sell? and it's ridiculousness here. we keep playing the parlor game of wondering when the fed will be done with the bond buy. if this is what the bond market is like when the fed's buying who knows how high rates will shoot when it stops. because right now no matter how in the bonds buy, the feds are overwhelming them. if i was bernanke, can the transparency, ben and start
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playing a little coy. bernanke is telegraphing every bond punch and the vigilantes are coming back at him. right now the sellers have the edge. time to step out of the ring, ben, particularly given the relents will rise to 3 and 4% for ten year respectively. you have to ask who the heck are all the sellers? who is doing the selling here given that we don't have any demand at the levels for that money. unless all you care about is the pent-up demand about homes. i know the builders are optimistic, but let's face some facts here. this has cooled off on housing and that cohort was the leadership sector. my best guest of selling with a nod, i think it's foreign governments that are dumping. foreigners own almost 50% of the u.s. government debt. china owns $1.2 trillion in government paper. talk about weak hands, right? why shouldn't they be sellers?
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these country aren't look at abercrombie and walmart and saying things are weak. they're hearing tapers while jobless claims get better and better. they want to ring the register and either repatriate the money or buy bonds denominated in euros because it was on death's door a year ago. smoking hot now. but a lot of the companies need the money. china needs the money. they can do a lot of good stuff with the trillion and our government is coming back from the vacation soon and i think the stocks, you saw some of that today. they have overshot at the moment. given there's not a lot of new credit demand, but i think the trend of higher rates is here to stay. the economy in the stock market can handle that if it's orderly, now a rout. it can handle it if the economy can catch its breath. they're causing every stock market rally and causing every sell-off when the rates go up. the sellers are happy to get their money back and then some. who can blame them?
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stick with cramer. the great outdoors...
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electrical piece of equipment that's okay. what you do is get in the front of the camera, listen, we're doing everything we can and we apologize and we say we are sorry. "mad money," i'm jim cramer. i'll see you tomorrow. >> narrator: in this episode of "american greed"... in grand rapids, michael vorce has money to burn. >> he was going to bars and tipping $1,000. he was buying expensive clothes, up to $20,000 at one visit. >> narrator: he drives fast cars and fast boats. >> he'd load the boat up with girls and go out and party. he was living the lifestyle. young guy, lots of money, throwing it around. >> narrator: he says he has a fleet of more than 50 luxury yachts. he has the papers to prove it. that's all he needs to con

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