tv Mad Money CNBC November 9, 2013 4:00am-5:01am EST
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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 actually be, well, uh, good news? could more employment actually drive the market higher? hey, that was certainly the case today, wasn't i? with the dow gaining 168 points, s&p climbing 1.34%, 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
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good news means we lose the friendship and accommodation of the federal reserve of our 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 people. i always as someone who's been investing for four decades, i've always thought this was pretty short-sighted 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. bye, buy, buy. 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
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talking heads who know less and say otherwise. here's the trick. are other countries more worried about overheating than we are? 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 worry and their economy re-ignited. now, just 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 the chinese will take away the mai tai ball. we won't have long to wait, as we get chinese industrial production and retail sales 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.
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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 who, of course, bought it at the close yesterday are probably glad there's no repeat. glad there's no repeat. no repeat of the twitter deal on tap, and i reiterate how after a bad day of how overvalued i believe twitter to be, you might to put in monday for some stock on what could end up being a red-hot deal. the ipo of zulily. this is a website for moms and kids and the company is doing quite well. it's no twitter. but being brought to you 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 some announcement from johnson & johnson, maybe telling a story
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tuesday, at the credit suisse health care confab about acid disposes. i'm hearing about the anti-cancer drug. on tuesday, we get the start of the merrill lynch banking and financial services conference. i've got to tell you, this is an incredibly important moment for these 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 money when rates are higher. who is best positioned for higher rates that i think are coming, given the strong numbers i saw today? who will make the most money? i've got to tell you, i'm going to be all over this conference. i have a feeling, by the way, that it will be the ohio banks. not kidding. well-run and not in the cross hairs of the u.s. government. ♪ on wednesday, afc enterprises reports. i don't know if you them, because they're kind of a boring
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name. but that's the parent companies of popeye's louisiana kitchen. it's popeyes. and i'm expecting an excellent quarter because of the ceo is remodeling the stores and causes numbers to rise when she does. as we saw when with wendy's yesterday. the refurbishings could lead to estimates upward, which has been the trajectory of afc's conference calls for many, many quarters in the row. we'll also hear from the most controversial stock of the week, and that is cisco. when cisco last reported, the outlook was toxic, replete with 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 darn good. plus, i believe that ceo john chambers was particularly down beat on the last call because of these 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.
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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? eaton, honeywell, 3m, caterpillar. we like them very much because of the turns in both europe and china. europe is getting very strong. despite what you heard about the french s&p downgrade. and if employment stays strong here and we don't get anymore child-like antics from washington, we could hear some terrific things about 2014 when we listen in to this conference. thursday is retail day. we have three of a different kind, we have walmart, kohl's and nordstrom's. 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 a lot. and that is directly, directly relational. i also 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 nordstrom's. i'd prefer to buy nordstrom's. if only because it has fallen behind the group and it's a superior operator. i have been nervous about apparel, but the number we got from gap stores today, or last
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night, was incredibly reassuring. on thursday we get to hear about one of my favorite companies viacom. this is a terrific stock even better than the company. i know that doesn't sound like you can converge, but that's because of the company's ferocious buyback, one that rivals only autozone and time warner. 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 architectural 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 bernanke's predecessor, alan greenspan, believed it was right for the fed to take action. at this juncture, it's a lot more important than it's been for the last half decade. so here's the bottom line. while we wanted the excitement of this past week, no more twitter deals, right? and we don't have a lot of
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high-profile earnings, we'll still have plenty of conferences and a smattering of earnings to choose from. i'm listening for global strength and tales from the u.s. consumer. when i hear them, i'll let you hoe to apply them to the panoply of money-making opportunities that always present us. let's take a question. sir? >> baa b-b-b- boo-yah from california. >> stuttering boo-yah 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 really appreciate it. thank you. >> my question for you, mr. cramer, is on sand storm. given the macroeconomic issues underlying with the gdp and -- with the gdp and also with the bearish events going on -- >> okay? >> is sand storm gold a good
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stock play to play? >> you know, it should be, right? it should be given how crazy things are. maybe things are a little less crazy than we think. maybe what's really going on is we've got deflation. that's what the europeans are worried about. that's why gold is not working. my take is, you can't touch it. and gld, that's the etf, it's got a place in your portfolio, but gold is not working and i'm not going to encourage you to do that. but thank you so much for the question. yes, sir? >> booyah, jim. roget from the buckeye state. after returning home from two tours in iraq, i found healing in the practice of yoga. what do you think about lululemon? >> i'm so torn about lululemon. let me tell you why it's really, really hard. because they keep screwing up! every time i look, there's like a recall. i mean, aren't they just making pants?! but in the end, it matters. i see your lululemon and i raise you with under armour. yes, sir? >> 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 you buy, hold or sell?
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>> i don't want to touch blackberry. i'm a believer in best of breed and best of breed still remains apple. i know it looks dead in the water, but it could be a sleeping tiger. thank you for serving in brooklyn. and thank you for serving in iraq. all right, 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 up on 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 big this year, as the latest sequel to its "grand theft auto" franchise became the biggest product launch in the history of
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entertainment. will those billion-dollar digits translate to a 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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i'm captain billy bridges, commander of the alpha 15 finance detachment. we're out of ft. hood, texas, and we're serving here and we want to wish you, happy veterans day! >> all right. we've got something special for our veterans day show. earlier today, i had a chance to stop off at the aircraft carrier "intrepid" in new york city, where clorox, a total household name if there ever were one, was holding the second annual
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kingsford invitational barbecue competition. with all of the proceeds going to folds of honor, a charity that helps support the spouses and children of military personnel killed or disabled in service. 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. about how his company with its juicy 3.2% yield and nice, consistent growth is doing and where it is headed. take a look. hey, don, why are we here? this is a different and unconventional setting for clorox. >> we are here on the "intrepid," jim, for the second annual kingsford invitational. kingsford, obviously, big in slow-cooked barbecue. what we realized is there was no
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grand champion crowned in the country. 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. so we put up a $50,000 prize, winner take all. and they're going to be cooking the four traditional meats -- chicken, brisket beef, or pork, and ribs. so it's going to 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.
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so we think it's extremely important that we be here in support, you know, folds of honor in the endeavor. 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 mba 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 have a team orientation. they really 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.
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>> well, let's talk about the innovation that they're working on and you're doing. 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 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 focusing on four major trends, jim, about six years ago when we did the centennial strategy. it was health and wellness, sustainability, affordability, and then this multicultural phenomenon going on around the world, with the hispanic consumer, but particularly in this country, but how do we connect to the different ethnicities all around the world? so we have challenged each brand to innovate against those trends and last year we had 3.5 points of new growth from new products and it was an all-time high. and why we've pushed that is about three years ago, our categories, which had historically grown at 1 to 2%, dropped 2% coming out of the recession. it was due to the recession. so we knew we had to double down on innovation and we had to get
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more brands involved. not just a few brands. >> now, sodium hypochloride, people don't know, lots of people don't know, but the government is finding out the medicare system is finding out how important this ingredient 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 most hospital-acquired infections. the epa just registered clorox bleach as the agent that can kill that spore and kill it very effectively. so i think one of the things that changed, jim, in the last three years or so, is the federal government changed the medicare law. where medicare will no longer reimburse hospitals for preventable injury. and they're classifying these hospital-acquired infections, which are killing 100,000 people a year in this country, as a preventable injury. so now when we talk to the infection control people in hospitals like the new york presbyterian, they are serious about getting the best products possible to kill these bad bug s in the patients' rooms.
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>> one of the things that people don't recognize, because you brought some analysts out, they 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. but here's the irony of this. bleach is probably the most mature category we compete in. the last three months, the bleach category grew 14%. >> bleach? >> bleach. and typically, it had grown 1 to 2%, consistent with population. 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, downsizing it, compacting it, making it easier to use for people, starting to educate people about how to use it outside the laundry room to disinfect is starting to work. >> so let's go there.
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because we've done a lot of work with store brands. we've featured these companies. you were losing some shares store brand. you taking it back? >> let me give you some perspective on share. if you go back two years ago, we had a 24 share on all of our 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 offset that 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 had 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. so we think by the april, may, june quarter, jim, we're going to see the bleach share stabilize and in fact start to come back. we've got some great innovation, i'll tell you one on bleach.
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you think about this tired old category. we have a smart-seeking bleach coming up in january where you can actually wash pinstripe or checkered shirts in bleach and it won't affect the colors. now, private label doesn't have that innovation. so even a 100-year-old category, we can keep reinventing it. >> in the time left, we've got to talk about burt's bees, because it's double digit, and i'm not used to seeing double digit from clorox. you always got the great dividend. 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 a brand that the last three years has grown double digit despite the recession and despite the premium price point that it has. the massive opportunity, even though it's growing double digit in the u.s., jim, is international. when we bought that business six years ago, we were in five countries, now we're in 35. some of those are small flags we've planted, but we're starting to really see the asian market take off. we're doing stand-alone burt's bees stores, for example, in seoul, korea, exploding the growth of that brand. we're doing a store within a store in major department stores. i was down in buenos aires about
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a month ago looking at a store within a store in a mall. that brand has amazing potential. this is a $25 billion category globally, personal care. burt's hasn't scratched the surface yet. >> possible we could go to a nice department store, even a stand-alone in a mall? could that happen here? >> it could happen here as well. in fact, 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 that long ago. you still 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 buyback, which has been amazing, or into the dividend? >> we'll continue to focus the
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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 over the next three years. so we'll focus on more bolt-on acquisitions like we've 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 u.s. in that business. it's like an emerging market for us. >> it's cold out here today. one of the things that has been made difficult for being clorox is sometimes the weather hurts the kingsford business. >> yeah. >> are we going more year round? >> we are going more year-round. we started this program to try 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 a lot that the center of the supermarket, to the doing that well, periphery doing a little bit 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 be value oriented? >> it really does come down to a value orientation. it really isn't strictly a price gain here. we are very careful about our price gaps, jim, versus private label in particular.
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we know if we're 20, 25% as a premium, we're pretty good. given that over half of our brands have a 60/40 blind preference versus anybody out there, we really focused on product superiority for years. and with social media coming on, if you disappoint people, a thousand people know in a heartbeat. if you really delight them, a thousand people know in a heartbeat. >> the twitter can really hurt? >> can really hurt or really help. so we have focused on not just the price points, was getting the value. for example, hidden valley, our most premium price brand, has gained more share in the last few years than any other brand, and it's about a great-tasting product. there's real value there. >> don, always great to see you, particularly on our celebration of veterans, and you've done so much to hire so many. i want to thank dan knauss, the chairman and ceo of clorox, but more importantly today, a proud veteran of the u.s. marine corps. >> thank you, jim, thank you. coming up, pause or play? take two interactive scored big this year, as the latest sequel
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we're always looking for big money making themes on this show. right now, we've got a red-hot bull market in video games. with both microsoft and sony releasing their 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've been pushing gamestop, and we know that gamestop, the world's largest retailer, has been a terrific way to play this cycle. sony and microsoft too big, too many other non-gaming related divisions, which brings us to the publishers, pure place on this space. it could be terrific buys. but if question is which is the best buy? go with activision blizzard, ati, the publisher of the epic "call of duty" franchise, especially since we have an audience full of real-world call
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of duty here with us tonight? or ea, including "madden nfl" franchise, but also some operational issues. or do we buy the smaller, her speculative take two interactive, ttoo. which recently came out with a single most successful game of all time. "grand theft auto 5," a game that made $1 billion in just three days and it broke six guiness 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 gaming stocks have all been on fire. all three are up from 50 to 75% for the year. you can argue, maybe it's too late, but i don't think so. who is going to be the best as we reach the dual launch of the ps4 and the xbox 1? first, you need to understand
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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 of. let's start with activision, they came out with the new call of duty ghost this week. and while game is selling extremely well, i checked all these numbers, the reviews haven't been as positive as they were for the past titles in the series. great. of course, activision has a terrific crop of franchise, beyond "call of duty." "skylanders,," incredibly popular with kids. blizzard division and online games like "world of warcraft." now, activision was reported a couple of days ago and it did issue downside guidance for the fourth quarter. they didn't see all that confident, as we like to say. quote, the fourth quarter this
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year presents a unique and challenging landscape due to increased competition and uncertainty surrounding the console transition. activision may have a great stable of hits but that's just not what we want to hear from a company. okay, how about electronic arts? "need for speed," "the simms," and of course, "plants versus zombies," not to mention the uberpopular ones. the problem with ea, is 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, ea delivered a major earnings, higher than expected revenues, but management also gave downside guidance for the fourth quarter, even as they raised
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their guidance from next year. the company has multiple growth paths going forward win like that, and i think the new ceo will be able to fix the operational issues of the past. but the problem is they don't have too many blockbuster-type games coming up for all these 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 do not think it's your best bet. which brings us to take two interactive, which you might know as "grand theft auto," "max payne," "civilization," mortarlands," and sports simulations. take two is tiny compared to ea or activision, with a market cap of just $1.7 billion. but remember, this industry is all about hits. and take two has the biggest hits in history. it's got this "grand theft auto" 5, the bears think take two is a one-trick pony that will burn through all that cash from the latest blockbuster in producing their next big game. that's always been the wrap here. but i think "grand theft auto 5" was a game changer for take two. it's tough to make demands on a best buy or a gamestop. these are the people you have to sell your games to. but when you're the company behind the fastest-selling game in history, you have a lot more leverage to demand things like greater shelf space for your titles. when take two reported a week ago, a week and a half ago, the company absolutely blew away the numbers. it was sensational. i was kind of really struck by
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it. they delivered a 76-cent earnings beat off $1.73 basis with much higher than expected revenues, 300% year over year. and management raised guidance for the 2014 fiscal 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 they sold 29 million units to date and that there'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's $1.7 billion company with $1 billion in net cash. think about that! plus, the company's got a bunch of games coming out in the 2014 calendar year. i could easily see an electronic arts or activision making a bid to get their hands on take two's properties. not only do they have the most upside, but the cheapest stock. nine times next year's earnings, a 12% growth rate. activision is trading at 12 times while electronic arts sells at 13, but with a 15%
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long-term growth rate, that kind of discount happens when you have a history of bad execution. here is your bottom line. you want to know who's got game going into the launch of the ps4 and the xbox 1? i like activision. i think electronic arts works as a turnaround play, but my favorite the the speculative but extremely well-run take two interactive. let's take a question. >> boo-yah from ft. drum, new york. >> loving that. upstate, how are you? >> i'm all right. first, i would like to say, i have a couple of things for you, for your desk. >> oh, i like this. i'll put this stuff right on the desk right now. >> awesome. >> right? let's do that. i think that's a bear. this is in sync with everybody else who talks about the market. thank you, like my dad, he served proudly in the sixth during world war ii. excellent. thank you. how about some questions? >> my first question is regarding google.
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i was here in 2011, veterans day show as well, and we spoke about google. she was interested in viedo, i was interested in google. now, back then, it was under $500. >> right. >> and you say, don't fall in love with the stock, and i can't help but to look at the numbers. and currently it's over $1,000. and i think that it will still continue to climb. >> it's very inexpensive, you're absolutely right. i think it's got great momentum, the last quarter was really terrific. there's a lot of irons in the fire. i think management is sensational. i can easily see it going up 200 points without a problem. >> do you think it will do a stock split at that price? >> it's interesting you say that, because lately, salesforce.com, he split the stock. vf corp., eric wiseman, fantastic ceo, he's splitting the stock. we actually -- some people think it doesn't matter, but i think to get individual investors in, absolutely does matter. i hope they do. they haven't. have another question? >> yes, i do have one more question. unfortunately, it's not to you. it is to her. my question is, will you marry me?
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it is time, it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, say the stock, don't know the callers or questions ahead of time. when you hear this sound, then the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round" on cramer's "mad money." start over here. what have you got? >> boo-yah, jim. >> oh, boo-yah! >> i'm leo from new york, and i would like to hear what you have to say about chipotle after the wild ride the last couple of days. >> i wish chipotle wasn't up so much. i do believe in the team very much, but after what happened the other day with whole foods, it makes you wonder whether the food with integrity program as good as it is will make it too expensive. i want the stock to come in, but i do like the company. yes? >> a big veterans day boo-yah, jim! >> this. >> i'm serena from livingston, new jersey. 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. >> and also, my husband, who's here, who was in the air force.
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my question is about something that's been popping up all over livingston, new jersey, and i know you love to say the name as much as i do, bonco. >> so here's the problem, as good as they are, there's a company called vvva that is even better, because banco made too many bad moves. it's vvva that i want you to buy. >> jim, a first boo-yah from lake hearst. my question is about potash, what is your feeling? >> you ought to be buying six flags, which is right down the block. that's an excellent one. here's the problem with potash. do you know the corn -- we got some corn numbers today. i cannot believe how much corn we're producing, which is depressing the price of corn, which depresses the price of fertilizer, so the answer is sell, sell, sell. >> boo-yah, jim. i want to know what you think about the leapfrog product.
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i just bought my daughter a tablet. >> i think about the leapfrog like i do the flyers and the phillies, that's right, sell, sell, sell. way too risky and no goo investment there. >> a u.s. navy net. thanks for having us. having a great time. >> thank you. >> my question is about gilead science. they had a great year. >> this is the one to buy! this is the one to buy! did you see the turn? the turn today occurred. you saw gilead, much good news in the pipe about hep "c" in the next month. let's take another one. i'm overriding the buzzer. go ahead. >> boo-yah, jim, james from long island. is there any uptrend to verizon? what's going on with verizon? >> you don't need an uptrend in verizon. they're making that acquisition with autophone. i think it's a great stock, you can boost the dividend, stay long, verizon. yes, sir? >> jim, i'm roger from long island. american electric and power. is this an income-producing stock? >> yes, it is. and they are caught between a very difficult situation. their coal base, obviously, washed in coal. it's a well-one company,
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dividend goes higher, i want you to buy it. >> i'm from the marines in brooklyn, new york. my question is, what's your opinion on sirius xm radio? >> that was not a great quarter. they're looking really good, they thought they had the game. they couldn't do 4.1, so people are selling the stock. i like them very much. and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ cheers and applause ] >> announcer: the "lightning round" is sponsored by 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. military academy at west point with us today. 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. and we couldn't be more excited. so let's get started. major, great that you're here on "mad money." >> thanks for having us. >> i was talking to my friend,
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anthony noto, a west point graduate, who was the banker at goldman sachs who did the twitter deal. and i said, what did you learn at the investment club when you were there. and 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 to 100 cadets we have in the club. we teach them about 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. >> and that's something that wasn't done for a long time, because people just felt that it didn't matter, once you get out? >> jim, i'm not sure exactly when the club started running. i think it went all the way back into the mid-80s. but we found that it's definitely educated cadets and they've been able to take that out into the military. >> at goldman, we hired a great number of military. and they tended to be very savvy, but i also know that it
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was just kind of self-talk. and it sounds like this is a terrific idea. anyone have any questions for me? >> sir, i have a question. i'm cadet rachel phillips. the question i have for you is what advice would you give service members in general for picking stocks and investing in their future? >> well, first, i think, remember, i believe in time and inclination. and if you don't have time, you do have to go mutual fund. i'm adamant about that. some people say, cramer jams you with all sorts of stocks. if you don't have time, you should be in the highest growth mutual funds, because you're young. and you have the rest of your life if you make a mistake. i think that's absolutely the way to go. anybody else? >> sir, i have a question. my name is cameron. what is the biggest mistake you see in young investors in the modern day. >> not taking enough risk. i'm not kidding. not taking enough risk. older people take too much risk, younger people don't take enough risk. you want to be able to hit a home run at this age. if you strike out, you've got your whole life ahead of you.
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that's a takeaway from a horrendous after-hours trading we saw last night. a night that shouldn't serve as a constant reminder that you must stop, hold your breath, count to ten, wait to hear the darn conference call before you pull the darn trigger. making money isn't being about the fastest. it's about being the most thoughtful. last night, we got reports from groupon and priceline, two red-hot internet plays that had already been under pressure in the wake of everything that isn't named twitter. priceline fell 50 points, even as the company reported a fantastic quarter. the guidance was perceived as being incredibly weak. group-on dropped a dollar as traders took one look at the quarter and decided that the bloom of the new management the rose and it was time to sell, sell, sell. at the same time, disney announced a quarter that looked terrific on the surface, but the quick draw traders dumped the stock down to 64 bucks off a couple of thoughts on what appeared to be weaker espn numbers. that was the kiss of death for the stock, which had been on a tear because of espn, as well as
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the theme park's extremely powerful movie franchises. if there were nfl coaches, you know what they would have done? they would have thrown the red flag, right? and the refs would be taking a lack at the replays of the trading of these three fine companies. in our business, that's the equivalent of reading the headlines and studying the earnings releases, but most importantly, listening to the conference calls. and here's what these 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 all firing on all cylinders, and 2014, which is what they're investing in right now, is setting up to be a remarkable year for all three. first, priceline, which has been chronically underestimated by wall street, because i think the snob analysts who never use the service have been able to instantly leverage its brilliant acquisition of kayak to expand faster than it already has. that's why the stock is now up huge, nearly a hundred-point swing from 410 last night.
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second, you would have heard that groupon's new management, ted, the chairman, and eric, the ceo, you would have thought they would have cracked the code for mobile coupons. the company is now a cell phone market place. a very big stock for 2014, that's why it reversed up 15% from last night. disney probably the silliest of all. the company explained it all way, cogently and completely to my satisfaction. but talking about some fees have been taken in previous quarters. the stock then u turns and goes up four points. to me, this whole thing is totally idiotic. it's one thing to get a stock wrong, like i did, based on goldman sachs's research. when it turns out that things were pretty fabulous. it's another thing entirely to simply not even wait for answers, let alone questions, and just go shooting. remember the tales of priceline, groupon, and disney. they are now the poster boys for why i always warn you not to trade after-hours. meanwhile, if you waited and did the homework, you could have made a fortune overnight. stay with cramer.
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only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. i'm dedicating this show to pop, who served proudly in the
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pacific during world war ii. another big thank you to the brave men and women around the globe, who put their lives on the line for you and me every day. i like to say, there's always a bull market somewhere, and i promise to try to find it just for you here on "mad money." i'm jim cramer and i will see you monday! how ycan avoid the holiday money trap. also... >> if i continue to spend this way, i'd be putting a burden on our family. >> so, you want me to help you stop lying to your -- [laughs] that's the word, isn't it? and you ask me, "can i afford it?" >> what i want to buy is, i want to spend $2,700 for a tank solo cartier watch. i feel like at this point in my career, it's something that i deserve. >> really?! hi, everybody. i'm suze orman, and you are watching "the suze orman show".
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