tv Mad Money CNBC November 8, 2013 6:00pm-7:01pm EST
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thanks for watching options action here from the new york stock exchange check out our web site and also check out our daily segment inside fast money every day at 5:40 p.m. eastern time. meantime, salute to the troops, mad money is up right now. 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. normally i'm not here to make friends but you know what?
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tonight i'm making an exception. welcome to the special veterans day edition of "mad money" where we're saluting our troops and veterans for everything they have put on the line for this great country of ours and helping them not to mention you to try to make some money. it's my job, not to entertain you, but to educate you. so call me at 1-800-743-cnbc. what the heck happened today? what's with this big rally if we have a robust employment number? could good news be good mousse? could more employment drive the market higher? hey, that was certainly the case today, wasn't i? with the dow gaining 168 points, s&p climbing 1.43%. and the nasdaq soaring 1.6%. and you know what? i find it welcome. for the last four years we have been conditioned to believe that good news means we lose the friendship and accommodation of the federal reserve of our
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nation, and we -- every time we return to growth mode it's supposed to be bad. it's supposed to be bad for the stock market when we start hiring for people i. always thought this was short sided nonsense. regardless of what the fed does, it provides upside surprises to most companies' earnings and upside surprises are the mother's milk of this market. of a bull market. i know i'm very contrary on this issue, but i have been bullish throughout most of this epic run. so i think my view may not be all that off base. anyway, try to keep the fact that good news about jobs is good news for stocks in your head. over the next week or two. you're going to need it. you're going to need it if you want to avoid being blown out by the bearish, boorish and boring talking heads who know less and say otherwise. here's the trick. are other countries more worried about overheating than we are?
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for a year we were fretting that china had gotten so weak that it didn't responding to stimulus. turned out that was a false word and their economy re-ignited. like in the united states we're getting lots of positive chatter, lots of positive data from the people's republic and there's a growing fear that the halcion days are over and they'll take away the mai tai bowl. we'll get the retail numbers this weekend so be prepared on monday for the possibility of some government enforced slowing in china. that is what i fear as part of my game plan. i guess we might as well call it chinese taper watch. what else is happening next week in the game plan? well, we have no repeat of the twitter deal. those you of course who bought it at the close yesterday are glad there's no repeat. no repeat of the twitter deal on tap, and i reiterate how after a
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bad day of how overvalued i believe twitter to be, you might want to get a red hot deal. the ipo of sioux willie. this is a website for moms and kids and the company is doing quite well. it's no twitter, but being brought to by goldman sachs. got good blood lines. i'll be paying attention to new pipeline of drugs being developed by cramer gave bristol-myers. that drove its stock much higher when it reported last. i also want to hear whether we are going to get an announcement from johnson & johnson. maybe telling a story today, at the credit suisse confab. the anticancer drug. and i have to tell you, this is an incredibly important moment
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for the laggard stocks. when we get -- when we got today's strong employment report interest rates immediately shot up. and when rates go higher you know it seems counterintuitive so do the bank stocks. they make more when the rates are higher. the best and higher rates are coming, who will make the most money? well, i'm going to be all over this conference. i have a feeling that it will be the ohio banks. not kidding. well-run and not in the coarse hairs of the u.s. government. ♪ wednesday, amc enterprises reports. i don't know if you them, because they're kind of a boring name. but that's the parent day of popeyes, louisiana, it's popeyes, i'm expecting an excellent quarter because the ceo is remodeling the stores and causes the numbers to rise when she does. as we saw when with wendy's yesterday.
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it has been the trajectory of the conference calls for many quarters in a row and we'll hear from the most controversial stock of the week. that is sysco. when they last reported it was a beauty. but the outlook was toxic. replete be layoffs that made it sound like cisco was really floundering. i was worried. it sounded pretty bad. now the stock has come down huge and while i do suspect we'll learn of weakness in government spending, there it is again, i think the expectations have finally been wrenched out here and the stocks risk reward is pretty good. plus, john chambers, the ceo, particularly down beat on the last call because of the firings. you can't be a good guy like chambers and lay off people at the same time as you rave about the future. i think the tone is more constructive this time around. on top of that, i plan on paying close attention to the goldman sachs industrial conference. that starts wednesday. oh, we've got all the companies we cover. you know who's going to be there, honey well, 3-m, caterpill
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caterpillar. we like them very much because of the turns in both europe and china. europe is getting very strong. and if employment stays strong here and we don't get any more child like antics from washington, we could hear some terrific things about 2014 when we listen in to the conference. thursday is retail day. we have walmart, kohl's and nordstrom. i have a controversial call on retail because it's optimistic and happy. i know that's not in sync with anything you're supposed to hear. i think it will be a good holiday season in part because the cost of gasoline is coming down. i believe that october turned out to be a stronger month than the people think. that means we can hear good things from the low things at walmart and the high end at nordstroms. i'd prefer to buy nordstrom's. i have been nervous about -- with the number we got from gap stores today. it was incredibly reassuring. on thursday we get to hear about one of my favorite companies viacom. this is a terrific stock even
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better than the company. that's because of their ferocious buy back. one that rivals autozone and firestone. finally on friday, this matters, we get industrial production numbers. we have had a series of macro numbers, whether it be if actual gdp or employment report or the act tech churl and truck buildings. i wonder if it doesn't show incredible strength and will test the thesis that great news doesn't inspire a sell-off. beware that the old fed, the pre-bernanke fed thought this to be among the most important out there. it was often the key to whether his predecessor alan greenspan believed it was right for the fed to take action. while we wanted the excitement of the past week no more twitter deals, and we don't have a lot of high profile earnings we'll have plenty of conferences to choose from. i'm listening for global strength and tales from the u.s.
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consumer. when i hear them, i'll let you hoe to apply them to the panoply of money making opportunities present themselves. let's take a question. sir? >> booyah from california. >> stuttering booyah to start the show. can you beat that? i don't think so. i don't think so. >> all right. first of all, i want to thank all the veterans that showed up for "mad money." >> thank you. >> thank you, jim cramer, for allowing us to be here. >> of course, people came from all over the country. i appreciate that. >> my question for you, mr. cramer, on sand storm. given the macroeconomic issues with the gdp and -- with the gdp and also with the bearish events going on, is sand storm gold a good stock play to play? >> it should be, right? it should be giving out -- you know how things are so crazy?
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that's why gold is not working. so my take is, you can't touch it. gld, that's the etf, it's got a place in your portfolio, but gold is not working. thank you for your question. >> booyah, jim. after returning home from two tours in iraq i found healing in the practice of yoga. what do you think about lululemon? >> i'm torn. let me tell you why it's really hard. because they keep screwing up. there's like a recall. aren't they just making pants? in the end, you know, i see your lululemon -- i raise you with under armor. >> hi, i'm brian. i'm stationed local over in brooklyn. with how the smartphone industry is going these days and how blackberry has been slowly on the decline and up and down, do
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you buy, hold or sell? >> i don't want to buy blackberry and i believe in best of breed, and best of breed. thank you for serving in iraq. tonight is a special salute to the troops. "mad money" style. we're fighting for financial knowledge and freedom. next week it's about conferences, not earnings. learning not acting. "mad money" will be right back. >> just ahead on "mad money" salute to the troops, cleaning up? from cleaning to cooking and everything in between. clorox has it hands on some of the world's biggest brands. but does it have the growth to wipe out wall street? cramer sat down with the ceo to find out and hear about its commitment to hiring our heroes. later, pause or play? take two interactive scored be ig this year as the latest sequel to the grand theft auto franchise became the biggest
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product launch in history of entertainment. will it translate to the rock star stock or could competition from a rival mean it's game over for this move? all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪
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stop off at the aircraft carrier intrep id in new york city where clorox a total house hold name was holding the second annual kings ford invitational barbecue competition, with all the proceeds going to folds of honor. and while we were there, i got a chance to talk to don knauss, he's the chairman and ceo of clorox and a former officer in the u.s. marine corps. and i spoke about how his nice consistent growth is going. why are we here? this is a different setting for clorox. >> we are here for the second annual kings ford invitational. kingsford is big in slow cooked barbecue. last year, we started the first kingsford invitational, so we've got the seven biggest championship teams here on the intrepid this weekend along with a military team competing for the grand championship.
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so we put up a $50,000 prize, winner take all. they're going to be cooking the four traditional meats, chicken, brisket beef, and pork and ribs. so it will be a lot of great smells wafting over manhattan over the weekend. >> great. great celebration of military. you're a veteran. this is a very big day. for us it's the veterans day, because of tv. but what does folds mean, what does it mean to be a vet and how many vets have you hired? >> well, the folds of honor is the kingsford's charity that we're linking into. folds of honor started 2007 by a major dan early out of the air force. folds has raised about $25 million in the last six years and they provide scholarships for the spouses and children of vets who are either killed in action or disabled in action. so we think it's extremely important that we be here in support, you know, folds of honor in the endeavor.
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so kingsford, that's our official charity. so we're supporting that. i think for us, we have hired probably 15% of our hires this year have been veterans. i was just in chicago three weeks ago talking to 350 mba veterans who are getting out of various programs around the country and we had three young mba veterans we had just hired in the last three months at that meeting with us. so i think it's very important for us. veterans do a few things. they have a mission orientation. they know how to get the job done. as you and i talked earlier they can handle fluid situations well. when things don't go as well as you expect, veterans are used to those situations. they work in diverse teams very well. and there's a lot of maturity that comes with that kind of early age responsibility and the work ethic that comes with it. so they make tremendous employees. >> well, let's talk about the innovation that they're working on. your stock has been a standout performer in the group. i think one of the reasons is because you had to reinvent on the fly. this is a category that you even admitted in your tremendous
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presentations that it just -- it lacked innovation, but you're bringing on many different skills. you made a great acquisition, burt's bees. where is everything fitting together? >> we started to focus on major trends, it was health and wellness, sustainability, affordability and then this multicultural phenomenal going on with the hispanic consumer particularly in this country, but how do we connect to the different ethnicities around the world? so we have challenged each brand to innovate against those trends and last year we had 3 1/2 points of new growth from new products and it was an all time high. about three years ago our categories which had grown at 1 to 2% dropped 2% coming out of the recession. so we knew we had to double down on innovation and we had to get more brands involved. not just a few brands. >> now, sodium hypochloride, people don't know, lots of people don't know, but the
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government is finding out the medicare system is finding out how important this ingredient is and it's certainly helping clorox. >> yeah, that bleach, clorox, having about a 60 share of that market, is the most effective, cheapest disinfectant that you can buy that kills all the bad bugs. c-diff is the spore that's responsible for more hospital acquired infections. the epa just registered clorox bleach as the agent that can kill that spore and kill it very effectively. one of the things that changed is the federal government changed the medicare law. where medicare will no longer reimburse hospitals for preventable injury and they're classifying these infections which are killing 100,000 people across the country as a preventable injury. when we talk to the new york presbyterian, they are serious about getting the best products possible to kill these bad bugs in the patients' rooms. >> one of the things that people
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don't recognize, because you brought some nanalysts out, the seem to be behind in terms of the innovation you're doing. no real champions. do they not understand that you're reinventing the company on the fly? >> well, i think they look at some of the mature categories we compete in, jim. i think that's part of the issue. i think bleach is the most mature category we compete in. it grew 14%. >> bleach. >> bleach. it had grown 1 to 2%, we haven't seen 14% growth since the truman administration in bleach. i think people are starting to understand you can reinvent the iconic categories and compaction of bleach, compacting it, making it easier to use for people, starting to educate people about how to use it outside the lawnry room is starting to work. >> we have done a lot of work with store brand, we featured the companies. you lost some share to store
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brand, are you getting it back? >> we had a 24 share of all the categories and today we have a 23.6, so we have lost 0.4, about 1.5%. we're not happy about that, but we have taken pricing to off set the commodity pricing. bleach explains that share loss. when we compacted the bleach, we did it regionally. we did one part of the country at a time, so we did have different sizes in different parts of the country. we got out of the national merchandising feature display routines and private label filled that gap. we are starting to get back into the national cadence with the larger customers. by the april, may, june quarter, we think the bleach will start to stabilize and we have great innovation. you think about this category, we have a smart seeking bleach coming out in january. where you can actually wash pinstriped or checkered shirts in bleach, it won't affect the
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colors. now, private label doesn't have that innovation. so even a 100-year-old category we can keep reinventing it. >> we have to talk about burt's bee, it's double digit. you always ged the great dividend, it's been great. 29% depreciation. but this idea that you're a growth company again and how big this brand can be blown out is not talked about enough. >> this is brand that has grown double digit despite the recession and despite the premium price point it has. the massive opportunity, even though it's growing double digit in the u.s. it's international. when we bought it five years eaago we were in five countries and now we're in 23. we're doing stand alone burt's bee stores in seoul, korea and doing a store within a store. i was down in buenos aires looking at a store within a store in a mall. so that brand has amazing potential. this is a $25 billion category
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globally, natural personal care and burt's hasn't scratched the surface yet. >> go to the nice department store, stand alone in a mall, that could happen here? >> it could happen here as well. the brand started here 20 years ago doing that kind of work in department stores. >> okay. now, sometimes you shuffle the assets and you have the divestiture of auto not long ago. you have some brands that i think people know could have more shelf space. more opportunity for acquisition or better to be continue to -- to continue the money back into the stock buy back? >> we'll continue to focus the cash on growth for sure. but it's really built on acquisition and the top priority is to keep building out the health care business. our health care business we think can grow 50 to $60 million a year. that's a point of growth for the country so we'll focus on more acquisitions like we have done in the past three years. this is a business that really gave us confidence that we didn't have to chase the bricks, for example, because we're getting high teen growth in the
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u.s. in that business. it's like an emerging market for us. >> it's cold out here today. one of the things made difficult for clorox, sometimes the weather hurts the kingsford business. >> yeah. >> are we going more year round? >> we are. we started to make this instead of a 13-week brand a 52-week brand. when labor day ends we're doing tailgate at home through super bowl. every weekend with retailers we are focused on college and professional football, getting family and friends together and barbecuing out in the backyards. that's really starting to move this brand to more of a 36-week to 40-week brand. >> what do you see in the supermarket? we hear that the center of the supermarket, not doing that well. periphery doing better. that the consumer is frugal everywhere. what have you had to do to maintain price in an atmosphere where everyone seems to want to
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be value oriented? >> it does come down to the value orientation. we are very careful about our price gaps versus private label in particular. we know if we're 20, 25% as a premium we are pretty good. given that over half the brands have a 60/40 blind preference. and with social media coming on, if you disappoint people, a thousand people know in a heart beat. if you really delight them, a thousand people know in a heart beat. >> the twitterati -- >> it can help or hurt. we have focused on the price points and getting the value delivered. hidden valley has delivered more in the last few years and it's a great tasting product. there's real value there. >> don, great to see you. particularly on the celebration of veterans. you have done so much to hire so many. don knauss, chairman and ceo of clorox and a proud veteran of the u.s. marine corps. >> thank you, jim. >> thank you. coming up -- pause or play?
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show. right now, we've got a red hot bull market in video games. both microsoft and sony releasing the new consoles over the next couple of weeks. the xbox 1 and the playstation 4. which will set off a whole new gaming product cycle. so as these new consoles approach, we need to ask ourselves who's got game? look, we have been pushing game stuff. we know that gamestop, the largest retailer, has been a terrific way to play the cycle. sony, too many other non-gaming related divisions which brings us to the publishers. pure plays on the space. it could be terrific buys. but if question is which is the best buy? going with activision blizzard, the publisher of the call of duty franchise. especially as we have an audience full of real world call of duty with us tonight? or e.a. including the madden nfl franchise and operational issues. or do we buy the smaller more
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speculative take 2 interactive, ttwo? which recently came out with a single most successful game of all time. grand theft auto 5. a game that made a billion dollars in just three days, and it broke six guinness records. some of you may think these games that they're public enemy number one for your kids and i'm not saying i condone all of the violence, but it's not my job to be a moralist. i'm here to help you pick stocks and these have been on fire. up 50 to 75% for the year. you can argue it's too late, but i don't think so. who's the best as we reach the dual launch of the ps 4 and the xbox 1? first, you need to understand they're driven by hit titles. in a way they live and die based on blockbusters. especially franchises you can build multiple sequels on top
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of. let's start with activision, they came out with the new call of duty ghost this week. and while it's selling extremely well, i checked all the numbers, the reviews haven't been as positive as they were for the past titles in the series. great. activision has a terrific crop of franchise, sky landers, incredibly popular. blizzard division and online games like world of war. now, activision was reported a couple of days ago and it did issue downside guidance for the fourth quarter. it didn't seem that confident as we like to say, quote, the fourth quarter this year presents a unique and challenging landscape due to increased competition and uncertainty surrounding the console transition. hmm. activision may have a great stable of hits but that's just not what we want to hear from a company. okay, electronic arts, the need for speed, and simms and the uber popular ones.
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the problem with e.a. is that historically their execution has been very spotty. and everyone knows that i suffered through the stock. however, the company put in a new ceo and i feel it's a turn around story as the company has shed its weaker offerings and has begun to focus on cheaper, higher margin mobile and online games. jury still out. when it reported october 29th, e.a. had higher than expected revenues but analysts kept downside guidance for the fourth quarter as they raised the guidance for next year. the company has multiple paths going forward. i like that. i think the new ceo will fix the operational issues of the past, but the problem here is they don't have too many blockbuster types games coming out for the new consoles in the near future. i think this is a stock that will do just fine in the long run. but in the short run i don't think it's your best bet. which brings us to take 2 interactive, which is grand
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theft auto, civilization, border lands and nba 2 k and take 2 is tiny compared to e.a. or activision. but remember, this industry is all about hits. and take 2 is the biggest hits in history. it's got the grand theft auto 5 by did $1 billion in retail sales in first three days in the market. take 2 they think is a one trick pony that will burn through the cash and produce in the next big game. that's the rap here. but i think grand theft auto 5 was a game changer. when you're a tiny $1.7 billion video game company it's tough to go to best buy or gamestop, but when you're behind the fastest selling game in the history you can demand greater shelf space for your titles. take 2 reported a week ago, the company blew away the numbers. it was sensational. kind of like really struck by it. they delivered a 76 cent
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earnings beat off $1.73 basis and rose 343% year over year. that's the current year for take two and it ends in march. even the ceo seemed surprised by the astounding success of the new grand theft auto. he said that they sold 29 million units to date. that's no evidence of demand being pulled forward. plus, within months, take two will have over $1 billion of net cash on the books. that he's $1.7 billion in the company. think about that. plus, the company has a bunch of games coming out in 2014 calendar year. i could see an electronic arts or activision to get their hands. and not only do they seem to have the most upside, but they have the cheaper stock. nine times next year's earnings. and activision is more expensive trading at 12 times while electronic arts is trading at 13. but with the 15% long term growth rate that discount happens when you have a history of bad executions so here's your
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bottom line. dume do you want to know who's got game? i like activision, i think electronic arts but my favorite one here is this speculative but extremely well run take two interactive. let's take a question. >> booyah from ft. drum, new york. >> loving that. how are you? >> i'm all right. first, i'd like to say i have a couple of things for you. for your desk. >> i like this. put the stuff right on the desk right now. >> awesome. >> right? let's do that. i think that's -- that's a bear. this is in sync with everybody else. thank you. like my daddy who served proudly in world war ii. awesome. excellent. thank you. how about some questions? >> my first question is regarding google. i was hearing 2011, veterans day show as well. we spoke about google. she was interested in -- and i
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was interested in google. it was under $500 and you say don't fall in love with the stock. i can't help but to look at the numbers. currently it's over $1,000. >> right. >> i think it will still continue to climb. >> it's very inexpensive. you're right. i think it has great momentum. the last quarter was terrific. i think management is sensational. i can see it going up 200 points without a problem. >> do you think it will do a stock split at that price? >>i >> interesting you say that, because eric wiseman, he's splitting the stock. some people think that it doesn't matter, but i think you get the investors in, absolutely does matter. i hope they do. do you have a question? >> i have one more. unfortunately it's not to you. it is to her. my question is will you marry me? [ cheers and applause ]
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"lightning round" is sponsored is by td trade. >> to my wife and kids, i love you and i'll be home soon. happy veterans day. it is time, it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ]
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-- then the lightning round is over. are you ready, skee-daddy? what have you got? >> booyah, jim. >> oh, booyah! >> leo from new york. i want to hear what you have to say about chipotle after the wild ride. >> i wish it wasn't up so much because it increases the demand dramatically. after what happened with whole foods it makes you wonder if it will make it a little too expensive. i do like the company. yes? >> a big veterans day booyah, jim. i'm serena from livingston, new jersey. >> close by to me. >> i'm proud to be here with my father leo who was a combat soldier 70 years ago in world war ii. >> thank you, sir. thank you. thank you. thank you. >> and also my husband who's here who was in the air force. my question is about something that's been popping up all over livingston, new jersey, and i
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know you love to say the name as much as i do -- bonco srkts antader. >> like those guys but it's bf, b -- bbca i want you to buy. >> booyah. my question is about potash, what's your feelings? >> it's funny, you ought to be buying six flags which is down the block. that's an excellent one. pretty good number. here's the problem with potash. corn numbers today, the department of ag, i can't believe how much corn is producing. so it depresses the price of fertilizer, so sell sell sell. >> ryan from philadelphia. i want to know what you think about the leapfrog product? i bought my daughter a tablet. >> you're from philadelphia, right? i think about the leapfrog like
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the flyers and the phillies, sell sell sell. no good investment there. >> hey, jim. thanks for having us. i'm having a great time. my question is about gilead sciences. they had a great year. >> this is the one to buy. this is the one to buy. did you see the turn? turn today occurred. you saw -- then gilead. gilead, much good news. i want you to buy buy buy gilead. another one. i'm overriding the buzzer. >> james from long island. is there any uptrend to verizon? >> you don't need an uptrend in verizon. they made the acquisition with vodafone. i believe in the management. it's a great stock. stay long, verizon. yes, sir? >> hi roger from long island. american electric power is it an income producing -- >> yes. they're caught between a very difficult situation because they're coal based. obviously washington hates coal. they're doing the best. dividends are going higher, buy it. >> how you doing, jim, i'm from
quote
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brooklyn, new york. my question is what's your opinion on sirius xm radio? >> that was not a great quarter. 4 million, they thought they had the game. they couldn't do 4.1, some people are selling the stock. that's mistake. i want you to be a buyer. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.
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as part of our salute to the troops and special veterans day celebration, we are honored to have cadets from the u.s. milita military academy at west point today. not only are they getting one of the best educations this great country offers, but they're focused on learning all they can about investing. and the market. joining us today is major jake johnson and the investment club at west point. we couldn't be more excited. so let's get started. major, great that you're here on "mad money." >> thank you for having us. >> talking to my friend anthony nodo, who was the banker at
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goldman sachs who did the twitter deal. i said what did you learn when you were there? he said we didn't have an investment club. tell me about it. tell us about it. >> so the west point investment club is a club probably about 70 or 100 cadets, and we teach the fundamentals of personal finance and investing. not only can they set themselves up for financial success themselves, but upon graduation they can educate their soldiers on the need to make good financial decisions. >> there's something that wasn't done for a long time, because people just felt that it didn't matter once you get out? >> to be honest, jim, i'm not sure exactly. when the club started running, i think it went all the way back into the mid '80s. but it's -- it's educated cadets, and they can take it out in the military. >> at goldman we hired a great number of military. they tended to be very savvy, but i know that it was kind of self-taught. sounds like this is a terrific idea. anyone have any questions for
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me? >> sir, i have a question. i'm cadet rachel phillips. the question i have for you, what advice would you give service members in general for picking stocks and investing in their future? >> first, i think remember i believe in time and inclination. if you don't have time, then you have to go mutual funds. i'm adamant about that. cramer jams through all sorts of stocks, no. but if you don't have the time or the inclination, be in the highest growth mutual funds. because you're young. if you make a mistake, you have the rest of your life. anybody else? >> i have a question. what's the biggest mistake you see in young investors -- >> not taking enough risk. i'm not kidding. older people take too much risk, younger people don't take enough risk. you want to hit a home run at this age. if you strike out, you have your whole life ahead of you. if i strike out at this point of the game, i'm out. stick with cramer.
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i'm only in my 60's... i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it could save you in out-of-pocket medical costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him.
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an behalf of the mad dogs of delta company eighth cavalier regiment, we want to wish our family and friends a happy veterans day. >> this business can be humbling. so my message to you is simple tonight. don't be humbled more often than you have to be. that's a take away from a horrendous after hours trading
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last night. a night that should serve as a constant reminder whenever a company reports, count to ten before you hear the conference call and pull the trigger. last night within just a few minutes we got reports from groupon and priceline. they had been under pressure in the social and mobile and cloud that isn't named twitter. the guidance was perceived as being incredibly weak. groupon dropped a dollar as traders took one look at the quarter and decided that the new management's bloom was off the rose. and disney announced a quarter that looked terrific, but they dumped the stock down to 64 bucks off a couple of bucks. what appeared to be weaker espn numbers. given that espn is one of the best growth engines that was the kiss of death to the stock. which had been on a tear because of espn. as well as their theme parks and some extremely powerful movie franchises. if there were nfl coaches, you
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know what they would have done. they would have thrown the red flag, right? the rest would be right in the booth looking at the replays of the trading of the three fine companies. in our business, that's the equivalent of reading the headlines and listening to the conference calls. and here's what the traders would have heard if they had bothered to do the actual business of investing. they would have heard that priceline, groupon and disney are firing on all sill enders and 2014 is setting up to be a remarkable year for all three. first from price line which is chronically underpriced by wall street. they have been able to instantly leverage the brilliant company of kayak. that's why they're now up huge. nearly 100 points swing. from 4:10 last night. second, you would have heard that groupon's new management team, the chairman and the ceo, you have heard they would have cracked the mobile code for
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groupon. mobile coupon and deal company is much more better than a static one. that's why it's reversed and now up 15% from the bottom of the trading. 15%. disney is the silliest of all. the analysts seemed freaked out by perceived slowing at speech. but they explained it cogently to my satisfaction. they talked about how some fees were taken in previous quarters and then the stock goes up four points when the morons sold it down to. it's totally idiotic. it is one thing when you get a stock wrong as i did when i came to the conclusion that gap stores was doing terribly when it turns out that things were pretty fabulous. my bad. but it's another thing entirely to simply not even wait for answers and just go shooting. remember the tales of priceline, groupon and disney. they're the poster boys for why i warn you not to trade after hours. meanwhile, if you wait and did the homework you could have made a fortune overnight. stay with cramer.
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but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics.
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i'm dedicating to those who served proudly in the pacific in world war ii. to the brave men and women who put their lives on the line every day, there's always a bull market see you monday! so much for a shutdown slowdown. job growth posting a surprising strong jump in october, signaling an expanding economy. but with unemployment at 7.3% and inflation at less than 1%, i really don't believe that the fed is going to rein in bond buying for many, many months. but we'll debate that proposition later in the show. plus, now he's sorry? five weeks into the obama care debacle and in an exclusive nbc interview yesterday, the president had this message for the millions who received insurance plan pink slips. was he sre
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