tv Mad Money CNBC November 15, 2013 11:00pm-12:01am 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. and 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 friends, trying to save you some money. my job is not just to entertain you, but to educate you, so call 1-800-743-cnbc. we rallied again today. perhaps with that afterglow of janet yellen's testimony about her review of the federal reserve's mandate. the fact that she wants to keep with her predecessor's program of keeping rates down to help
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the economy get stronger has been behind a lot of the gains including the ones we got today. dow raising 85 points, nasdaq climbing 0.33%. do you know what, that's six straight up weeks for the dow and for the s&p. that's the power of this bull. with that in mind, let's talk about the game plan for the coming week, okay? next week is a truly special week for "mad money," because we're going out to dream force. that's salesforce.com's annual shin dig. it's now become the mecca conference for all things information technology. where social, mobile, and the cloud will come together. we are going right to the epicenter. this is about the tectonic shift we are seeing. this is about investing in america. the new economy. the companies we are talking to out there, they are just amazing. here's a few. ebay, yelp, dropbox, and you won't believe the others, so cool. and of course, salesforce and its impresario, mark pena. whose company also happens to report on monday. and we'll be there to interview mark in person. now that we've seen all the tech quarters, i think it's safe to say that salesforce.com outearned almost every other company in the cohort and
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certainly is growing faster. i think they'll do it again when we get the results monday. that's right, i can see the stock going much higher. not higher, much higher. beyond that, we'll be speaking to a whole list of companies, some public, some private, keep you abreast of the revolutionary, disruptive technologies that have had some produced some of 2013's most bountiful gains. i think you'll be as enthralled with these game changers that i'll be sitting down, including some companies that could potentially become public within the next year. next up, tuesday, a parade of retailers. really the last window we're going to have on the business until the holidays. if you hear from three of the most important tells in the consumers there is, including best buy, which has transformed from ugly duckling into beautiful swan in less than a year. new management has revitalized the chain. trimming the stores, offering some of the lowest prices in the business, along with the best service. best buy is in longer viewed as the showroom for amazon.com, especially since the new internet sales tax regime leveled the playing field. in fact, i'll go one better. i bet we're going to hear that amazon has become the showroom for best buy.
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people browsing online and going to best buy stores to make their purchases, because the prices are just as good or even better and you can get that installation help. the turn continues. then we've got another model performer. home depot. where i bet we get an even better quarter than last time and that was a barn burner. consumers are just now starting to put a lot more of their disposable income into their homes after years of underspending, in part because the rising in housing prices have made it so far -- so far fewer people are underwater on their mortgages. when you're above the water line, you tend to spend three times as much on your home than if you're under water. frank flake is one of my favorite ceos and he's going to give you an aisle-by-aisle judgment idea on what's selling, which creates mucho action. finally we gets results from dick's sporting goods, which has been a bit of a downer lately. but dick's gives you a terrific view into what's selling. last time they called out under armour and that stock took off.
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i bet ua will be ready to roar again once we hear from dick's. many are hearing with bated breath to hear what jcpenney has to say about its turnaround when it reports on wednesday. i follow this by looking at the highly sensitive preferred stock, which has been really on fire, really strong. and that does portend great things for the common. it's a smarter piece of paper than the common stock. i've lost a lot of faith in this company, then penney used the faith to sell stock at a higher price than they would otherwise. so while i'm not a fan, i recognize it can go higher. staples, of course, at 6.82. i am paying very close attention to this one. why, more than usually, because certainly office depot and office max have just completed their merger. i'm presuming we could see closings of overlapping stores from the newly formed competitor. that should relieve some of the price pressure in the industry. and we also get results from williams sonoma, which fits into this pattern of home improvement winners. that said, the stock often trades down when it reports, not unlike restoration hardware, but then comes back with a vengeance a few days later. so maybe wait until it comes down and do some buys. beyond that, we heard from two
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companies i'm very concerned about that have continually let people down when they report. deere and adt. i worry that deere could be once again saying a lot of negative things the because of the vicious downturn in corn prices. adt is facing tough competition from at&t and cox communications, which are often their own home security plans, something i believe is causing a price war in the industry. holy cow. thursday is what i call jam-packed with controversy. first, we had abercrombie & fitch reporting. we'll hear from the newly enshrined "mad money" wall of shamer, michael jeffries. the key is for jeffries to announce his retirement. that's right. we want him to say, listen, i'm done, contracts up for the renewal, i'm gone. if that happens, you should expect a 10% pop in the stock. that's how much it would be worth to a&f if we would just leave. dollar tree is my absolute favorite dollar store because i love the candy aisle and they report too. and i think we'll get a very strong number. remember, earlier this week, walmart delivered a lackluster number. i believe that's in part because the dollar stores are nipping at walmart's heels and dollar store
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is one of the winners from that walmart versus dollar tree market share tussle. also get some results from another cramer fave, which is gamestop. even though the stock is up 125% for the year, i believe 2014 will be an even better year, thanks to all these video game consoles, like the ps4, which comes out today. hey! and the xbox 1 being released next week. i want to hear what gamestop's ceo, paul rains, has to say for an encore. i wish he would say it on our show. i think he's terrific. and if that's not enough, target prints numbers on thursday. and while i'm hoping target exceeds walmart in terms of expectations, i'm also worried it will fall into the have-not camp right now, although not as bad as coastal. i want to keep an eye on a thing called vince. i don't know if this is going to be as hot as zulily, the one i told you that priced at $22 and opened at $39 this morning, the one i told you that i wanted you in. if you got any, thank you. i'm glad. got a lot of nice comments about that.
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people got some. but i think it's definitely worth trying to get a piece of vince on the deal, even if it's just a hundred shares. friday, wow, problematic retailer alert. we have three that will hit some turbulence, because they've fallen out of favor with the analyst community. versus footlocker, i would rather have you see you in nike. which i think is doing terrifical terrifically. then ann, parent of ann taylor, which i played doing a positive piece on before deciding that women's apparel has gotten too hard, although the negativity is so thick here that the company will actually, even if it disappoints, go higher. finally, one of my favorite retailers, and that's pet smart, reports friday. frankly, this one hz become a real dog. it's only up 8% for the year, used to be a really hot stock. wall street has uniformly turned against the company. i'm not going to be able to change your perception of what i think can happen here. i think at this point, a number will be reported. even as i believe that long-term, the pro-pet secular trend is still in tact. so here's the bottom line. with the holiday season almost upon us, we're going to get our last read on the consumer, and i think that by and large, it will be a positive one. that could set the tone for a healthy turn -- a healthy run,
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right into the end of the year, something that's always happened when the s&p's been up 20% or more going into november. don't outthink this thing, people. history is on the side of the bulls right now. so be prepared to do some buying if we get weakness from any of these earnings reports, including, amazingly, because this has worked all earnings season, even the disappointers themselves. yes, indeed. it is that powerful a bull market. eric in michigan, eric? >> caller: b-b-b- boo-yah, jim from the compact state. >> nice! >> caller: jim, what are your thoughts on red robin. the price target increased today and the stock's up 268% year-to-date. do you feel they're overvalued or do you see the trend continuing? >> i'm going to avoid the thrust of that question and tell you that rrgb is one of those stocks that is anointed for the year and i think it can continue to go higher until year end, and that means it is worth it to go along for the ride. next week will be our last read on the consumer before christmas, and i've got to tell you something, i think it's going to be good and let's not
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forget, one of the most exciting things we've ever done in more than 2,000 episodes, we're going to dream force. "mad money" will be right back. >> announcer: coming up, blastoff? rocketfuel uses artificial intelligence to deliver real-time opportunities to advertisers. its stock flared out after reporting, but is it ready to relaunch? don't miss cramer's exclusive with the ceo. and later, restaurant rising. shares of burrito big daddy chipotle has been satisfying this year. its stock is up 80% so far. and it hit another all-time high just today. but could it be about to sour? or are things just heating up? cramer's talking to the big enchilada, all coming up on "mad money". ♪
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we're hearing a lot of talk about a bubble in ipos lately, but i think it's a little more complicates than that. especially when we're dealing with technology stocks. these red-hot initial public offers tend to follow a pattern. consider rocketfuel, a company that uses artificial intelligence that themselves businesses make the best
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programmatic ad buyings on the internet, which allows advertisers to get the best bang for they buck. when rocketfuel became public a little less than a month ago, september 19th, the stock lived up to its name, before closing out at a 93% gain. so we have a huge first-day profit, but then it's followed by hideous declines. again, it's the pattern. the rocketfuel stock went down to $37 and change last week. fast forward to stock today, stock is back up to $56. the company reported last week, and while they didn't seem to understand that they were underwhelmed by the results, i think the numbers were pretty darn good. revenues rose 132% year over year, better than expected gross margin, 49%. that said, we have to wonder if rocketfuel can keep up its momentum as so many recent similar-seeming ipos have seemed to have fallen by the wayside. the internet advertising has become a very crowded space. we know programmatic online advertising is here to stay. it is smokey, but so far there hasn't been a stock that has been a good way to profit from it. will rocketfuel be the first? let's dig deeper with george john, the co-founder and ceo of rocketfuel to find out more
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about his company and where it is headed. mr. john, welcome to "mad money." thank you so much for coming on the show. >> thank you. >> okay. i think that realtime buying is something that i'm going to have to ask you to explain to people. i know it because of street.com, because i'm involved there. but it's such an important concept right now. and i don't know if people understand it, because they're so used to the show, say, "mad men," and what was involved there. >> exactly. so, you know, it's just a whole new way of buying ad space. in the old days, you would call a guy on the phone, say, i like your website, how much can i buy it for? and now it's traded a lot like securities. you can buy single ad spots at a time. and if you can do that with technology, you know, ai and big data that we use, you can really do a good job predicting ahead of time, these will be the right places to do the luxury car ad or the pizza ad, and you can drive great results for advertisers and also drive a better experience for people just surfing the web using mobile apps, it's not all the annoying stuff about yellow teeth whitening and weight loss, you know? >> i know, geez, it's so bad.
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>> you know, it's just better stuff, and better for the publishers because you can monetize better. >> you're talking about artificial intelligence, which is something you studied at school. >> that's right. i got into it very excited by "star trek" as a young kid, kirk talking to the ship's computer and what not. i used to try to build it myself with radioshack, 151 electronics kits in first grade. it never really worked out, but i got better at it over time. i've been working on applications of ai, and then a little bit of quantitative finance work. but marketing was really kind of fun, because you're combining this very serious kind of quantitative aspect of data and ai, but also just the fun and liveliness and spirit of market and just the powers of persuasion and trying to persuade someone to try your product and eat at your restaurant and et cetera. >> direct response, in order to get really big, we've got to do brand, and in order to get really, really big, you've got to do brand mobile. can that happen? >> absolutely. among the first expansions of rocketfuel from its initial days of doing direct response, sales-oriented and display, it wants to do brand advertising as
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well. and we figured out by running a campaign, but trying to optimize towards a results like a survey saying, yes, i do know about the new shampoo or, yes, next time i'm in the market for a car, i am going to think about a buick, which is one of our public case studies. it so works out real well. in new channels, we talked about in our aerngs earnings call, mobile, social video now comprising over a quarter of our revenues. so really the same machinery, it just works, because it's an engine trying to make whatever you want happen. whatever the goal was for the advertiser. >> i know google pitched the street, saying, listen, you're one of the beneficiaries, a publisher. what happens if google says, you know what, we can crush rocketfuel? >> i think if i was a cosmetics maker and google said, i'm going to crush you, i'd be worried. so i think we've been existing in a world right now where, you know, obviously, we're in advertising, google's in advertising. you know, the growth we've shown up to -- you know, if you analyze our last quarter, we're doing $1.25 billion annualized.
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so i think the growth we've been seeing in a world where we're already competing with google and microsoft and aol and the bigger guys as well as a lot of little guys too. but somehow it's working real well. >> now, we've -- it's been difficult. i mean, for instance, millennial media was on the show. they've blown up repeatedly. there's been an acquisition, they talk about realtime bidding, they talk about how they're doing the exchanges. how do we distinguish between these different companies? >> without getting deep, you've made the point a few times on your show, you can't look at an entire sector without differentiation. and if you were an investor right now trying to understand things, it really feels like -- it doesn't capture all of rocketfuel, but the biggest thing in the sector seems to be programmatic. you've seen aol -- >> they do the programmatic video -- >> right and then you've seen the companies that are faltering, saying, programmatic doesn't work for us. and millennial is interesting. they have both sides to their business. the older network business and the new programatic through their acquisition. so as an investor, it's important to understand who's going to be the winners from programatic, and with rocketfuel, we're trying to take
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it a step further and say, if there's going to be programatic buying, we see 38 billion opportunities a day to buy one little ad spot, we just feel like, it can't be the right thing to say, i think the right thing to do is going to be such and such a media plan, but instead letting these robots basically figure it out in realtime, for each one, what's the right ad to show and what's the right bid to place on it. >> well, it's definitely working, and revenue growth here is outstanding. so thank you very much. okay, that's george john, co-founder and ceo of rocketfuel. i've got to tell you guys, there's enough good research here plus the comps are very clear. you can actually understand what programatic means, what realtime bidding means, and how to relate it to the actual way securities are priced in an ipo. very informative stuff. stay with cramer. coming up, restaurant rising. owning shares of burrito big daddy chipotle has been satisfying this year. its stock is up 80% so far. and it hit another all-time high just today. but could it be about to sour or are things just heating up? cramer's talking to the big
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adoll, katniss everdeen. so how can chipotle keep up this magnificent run? the stock has rallied 84% year-to-date, it's up 45% since we last booked the chief financial officer back in july. it's climbed 26% just in the last 30 days. keep in mind, we're now in the end of the year mode, where the money management imperative controls with fast-growing momentum stocks like chipotle rallying. in other words, i think thenlg hedge funds and management funds should keep buying this through any weakness through the end of the year. and even though that's a legitimate reason to stick with the stock that made a new high today, for the next six weeks, you know we have always got to keep track of the underlying fundamentals, as part of the necessary homework you should be doing with every single stock you own. last time chipotle reported a little less than a month ago, even though the company missed the wall street's estimates, posted better than expected revenues, with a terrific 6.2%
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increase in same-store sales, the highest i saw. so there's no wonder the stock has been on fire. and chipotle's got an absolute growth runway, with 1,529 stores as of the end of the september, the management plans to add another 180 to 195 next year, including more of their shophouse, asian noodle concept. it's really starting to get a lot of traction. so let's check in with jack hartung, he's the company's ceo to hear more about his company's prospects. mr. hartung, welcome back to "mad money." >> thanks, jim, nice to be with you. >> jeff, we had our usual friday chipotle lunch. and i'm incredibly conscious of the fact that you pile on all the tomato, pile on a big thing of avocado, and these things never seem to come down in price. at what point do you have to face facts and say, we give away so much food at the same price, it is time to take another price hike, because no one will know the difference? >> jim, it's been 2 1/2 years since we've taken a menu price increase, and you know, we've always been slow to increase prices. most of our focus has been on, you know, going out and finding the best food we can, which is, you know, typically more expensive than commodity
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ingredients. we care about the way our ingredients are raised. we have this thing, you mentioned, called food of integrity. so we've always had high food costs, but our food costs with inflation over the last 2 1/2 years, because we've not raised prices for 2 1/2 years now, has moved up into the higher end of the range where our food costs have been historically. so we think we probably will increase prices next year. but we're still not in a hurry. we'll wait and see what happens to the economy, to the consumer confidence, to our transaction trends. we'll see what happens to food inflation, and we'll make a decision next year, but probably some time in the middle of next year is more likely than not that we'll strongly consider a price increase. >> i think that's going to add dramatically to your earnings. now, jack, in the last few weeks, i've spoken to the people at afc enterprises, cheryl batchelor, terrific. they had a big downturn in the last month. mcdonald's, read the articles today, clearly having a very -- struggling. panera, one of my favorite chains, ron shake, admitting that there's throughput problems, he's not happy with performance. why have your -- has your business accelerated when many
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people are blaming the economy or not exciting concepts to get things going? >> jim, i think there's a couple of things. i think one, more and more people are becoming more curious about where their food comes from. they care and are becoming more curious about how their food is prepared. and those are two things that we do really well at chipotle is, we really do take care and spend a lot more time, a lot more money to source naturally raised ingredients, organic ingredients, whenever we can. local ingredients, you know, when our ingredients are in season. and then we do a lot of cooking in our restaurants. we actually teach the skill of cooking in our restaurants, and so the meal that our customers enjoy is really, you know, it's delicious, because of the ingredients and the skill that we take in cooking, and then we have top-performing employees that we're very careful about, who we bring into chipotle, almost all of our managers are promoted from crew. and so our crew come into chipotle, very excited about our opportunities. so you've got these excited crew that are preparing the food in the morning.
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at lunchtime, serving the customers, so that results in a terrific experience for our customers. we also focus on -- our value comes not from the pricing that we offer to our customers, even though our pricing is lower than most competitors. our value comes from the overall experience, and that really is connecting with our customers in a big way. and we're delighted to see that our comps outperform most in the industry in this past quarter. >> the idea that the other guys have seen the drop-off is not just occurring in your place? >> it's really not, jim. some of the others that you mentioned, their value is based on just price. and i think people are more sophisticated with their dining experiences nowadays. it's not just about price or convenience. so cheap isn't going to beat quality. it never should beat quality. i think more and more, especially with some of our younger customers, and with information on the internet, people are just more aware of what they're putting into their mouths. so they value spending a little bit more money than you might at typical fast food because of the quality of the food and the quality of the experience.
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and we think that's a big reason why we're winning out. >> you and i have talked both on and off camera about what the younger generation likes. you've got a vegan burrito, basically. a apostrophe sofritas, and the numbers are staggering about who's having this. it's certainly more than vegetarians. >> it's delicious. it's selling about 4% right now with little or no advertising. these are just customers that are already coming into chipotle, that are trying sofritas, but fully half of the people that are eating sofritas are trading off from meat. that just tells you that it's not something that vegetarians have to settle for. it's really, really delicious, it's uniquely chipotle, using the same thing we use for some of our other meats, it's got a uniquely chipotle taste. and it's a fully organic tofu as well, with a special recipe. and it's really terrific. i love it myself and i'm not a vegetarian, by any means. so we're delighted to see that people are crossing over, and we think that over time, people that come to chipotle and get their favorite chicken burrito or steak burrito will want to come to chipotle more often, because they now have another
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alternative. and if they're looking to maybe reduce their meat intake, it's a wonderful alternative. >> i want to circle back to your labor situation. panera talked about throughput as a problem. you've been able to put through an increase of five transactions at a critical time. that really does matter, right? and that's your linebacker concept that's doing that? >> it's huge and it's a couple of different reasons, jim. linebacker is one of the keys. we have an expediter as well that assembles the order before you cash out. and we also talk, and because we so much cooking, it's important that all the cooking and food prep is done before we open up the doors. and the last item of the four pillars that we talk about with great throughput is aces in their places. meaning, let's not train our new employees, you know, during our peak lunch hour. let's make sure we have the best people and the most important positions during lunch hour. and probably the most important thing i would tell you about throughput, our model is just very different than other restaurant companies, in that we focus on a relatively straightforward simple menu. we haven't changed the menu much
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over the years, and the idea is that we're constantly improving the quality of our food, based on improving the ingredients, improving the cooking techniques, but not adding too much to the menu. the problem with adding too much to the menu is, it's complicated for the crew, it's complicated for the customer, it will slow down throughput, and it doesn't help the economics. one of the reasons our economics are as good as they are, better than anybody else in the industry, is because we have this very focused menu. we do a great job serving our customers, a great job training our crew, and we can do a great job in terms of delivering these great economics as well. >> do you think people get ahead on the stock? we've talked about when the stock overreacts and goes down one day, goes up too much. i know you don't want to focus on the stock, but are we too obsessed with the idea that it's an all-time high today? >> you know, it's fun to watch, jim, and you're right, we don't focus too much on the stock. we focus on our food culture, our business cultural, and our business model. and we know the stock will take care of itself. but our stock does have a tendency where it sometimes goes
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up too far and sometimes drops down too much. last year it went the other way. we had a couple folks come out and compare us to taco bell and that caused our stock to drop. we don't take that too seriously. we don't change what we're doing when the stock goes down. we don't get too full of ourselves and think we've accomplished too much when the stock goes up. so it's fun to watch it go up and down, but we know if we just focus on the things we go down, the stock in the end will take care of itself. >> i was saddened here, frankly, that when you were talking in the conference call that the awareness -- i'm quoting. awareness in europe, awareness in london still very low. i find that hard to believe, frank. >> you know what, jim, it's exactly what we saw about ten years ago when we entered new markets in the u.s. where we would open up and people didn't understand that chipotle is different than other mexican food or different than other burritos that you might have. what's encouraging, though, we're seeing very similar sales trends in europe that we saw early in the u.s. meaning, you start out at a relatively low sales level, because people just don't know you're there.
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as they discover you, they come back more often, bring friends, so we're seeing some really nice sales trends. and if you line up the early london results to what we saw in the early u.s. market, we're seeing very real similarities and that gives us a lot of optimism for what's ahead of us in europe. >> one last question. i was thrilled to hear that shophouse is well ahead of where -- in terms of growth, to where chipotle was at this point. >> yeah, shophouse is off to a great start. shophouse is a great example of, we don't think that chipotle is special, because of our burritos and tacos. we think it's more because of our food culture, our people culture, and our business model. and we think that rather than add more things to our menu, we can add more variety by offering a different cuisine in a similar model and shophouse happens to be that model. and we're very happy with -- i mean, the food is delicious, the teams are terrific. we've got five restaurants open now, three in d.c. and two in l.a. so we're very optimistic about where shophouse is going to go from here. >> terrific, jack.
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i'm jim cramer and welcome to my world! >> announcer: one man, one vision. >> i just want to make you money! >> announcer: eight years. >> you need to get in the game! >> announcer: tens of thousands of miles traveled. >> this new black gold rush is just getting started. it's the sound of american industry roaring back to life. >> announcer: hundreds of ceos.
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>> my life story can be your life story. >> announcer: thousands of callers. >> boo-yah, jimbo! >> announcer: millions of your e-mails and tweets. "mad money" thanks cramerica for being with us for over 2,000 episodes. it is time, it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, say the name of the stock, i don't know the name of the callers or the questions ahead of time, when you hear what? then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." let's start with dave in california. dave? >> caller: hey, boo-yah from west l.a., california, jim. >> man, i know that area well. what's up? >> caller: jim, i have a fair-sized position in rdm and in it for the long-term, but one of the hot topics of the past week is the intent or the capital to go after fannie mae's insurance business. >> right. they all want that business,
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sir. they all want that business. they're not going to get that business. i think that that's a misplace. what you have to worry about is a slowdown in housing. i think radian will be fine. i do right now like gemworth more than i like radian. can i go to peter in new york? peter?! >> caller: jim, how are you? >> real good. how about you? >> caller: good. i've got a question about the audio amplifiers that are now on ton the ipad m made by "maxim" -- >> it's been a real dog, man. everybody, it's like a cirrus logic, anything that's just a parts component, i've been shying away there. maybe i'll miss some, but it's too -- it's just too much of a vicious battle for me to be involved in. let's go to bob in new york. bob? >> caller: hiya, jimmy. the last time we spoke, i dropped off iconics brand at your doorstep. they're at 25 and you blessed it. i want to give you the other half of my rather large holdings. >> fire away. >> caller: there's a new guy named andy mooney who's with nike and with disney, who is now
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being fired ceo of quicksilver closing. quicksilver has a trend going for it now, that i think definitely could look up and see how positive it is for a breakout. what do you think? >> i've been liking quicksilver, but now you want me to be even more intrigued and take a deeper look at it. but i think quicksilver has got the momentum. i reiterate that i like g-3 very much too. can i go to evan in florida? evan? >> caller: how's it going, jim? >> eve? >> caller: how's it going? >> evan? >> caller: my question is, where do you think sony will be going with the playstation 4 release? >> i think sony -- it was upgraded this week and i feel it's bottom. i think it's bottom, i like the level. the risk is a buck, the reward is $3. let's go to sam in california. sam? >> caller: jim cramer, thanks for taking my call. hey, i had a question about national bank of greece. where do you see it -- >> it's too -- as it is, i'm the only guy recommending bbva and
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rbs. i'm not going to recommend the first national bank of greece. that stock's worth 14. let's go to jay in texas. jay? >> caller: how are you, jim? >> real good. how about you, boo-yah man? >> caller: good, good. first-time caller. >> excellent. >> caller: hey, my stock is nve, nv energy. what is your take on that? >> it's a growth energy play with a very small yield. i prefer, frankly, if i want that, i'm going to go to dominion, letter "d." i think that's best in show. i need you to go to chris in nevada. chris? >> caller: boo-yah, mr. cramer, from all the finance majors here at unov. >> yes! absolutely! >> caller: how you doing? >> all right. how about you? >> caller: good, good. my company is drdx. >> wow, you know what, i've not looked at that, because the last time i looked at it, it was under the market cap limit, so i've got to do more work. i need to go to james in connecticut. james? >> caller: boo-yah, big jim. >> yeah, what's up? >> caller: i have diagnostics,
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but i would very much appreciate your diagnosis of foundation medicine. >> it's another personalization of gene care. i do believe that one or two of these are going to hit it really big. got to have field bets of all of them. i think this is a good speculation, and that's how i'm endorsing for and that's all i'm endorsing for. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: the "lightning round" is sponsored by td ameritrade. boo-yah, jim? >> boo-yah, steve. >> caller: from st. louis, the home of the 11-time world champion cardinals, but sadly not this year. >> well, yeah, and -- you know, okay. >> a big sunny san diego boo-yah to ya. >> yeah, charger boo-yah? >> caller: hey, jim, it's nathaniel in the great city of virginia beach, a great big boo-yah. how you doing today? >> i'm going to give you an alan iverson boo-yah. >> okay. >> what are we talking about?
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practice? practice? >> and as of today, go-go is now giving you a remarkable 56% gain in the aftermarket. and that's from when it became public. and that's over the course of less than five months -- i'm trying to fight a sneeze. [ sneezes ] it's better to fight it than sneeze. [ sneezes ] [ sneezes ] [ sneezes ] take a look at this. take a look at nov's daily chart. the fabulous cup and handle formation. the one that looks like a little teacup, with the handle on the right side. the cup and handle! oh, boy. holy cow. an inverse head and shoulders pattern. see? well, i was trying to make a smiley face. yeah, see, filled in, boom. that's a bullish crossover, where the black line goes above the red line, just a second. yep!
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definitely. it's clear. it's a little yellow dot. usually that means that. oh, that's mcdonald's. sorry. became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. huh, fifteen minutes
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i'm falling. everybody look out! ahhhhh...ugh. little help here. geico. fifteen minutes could save you...well, you know. anybody? customer erin swenson ordebut they didn't fit.line 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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before we get to your tweets, it's time for some homework ahead of the holidays. back on october 23rd, don in new york quizzed me with a question about abaxis. ied a hood to do some more study. they sell point of care blood analyzers which provide clinicians with rapid blood tests for humans and animals. this gives doctors and vets the opportunity to run profitable, realtime lab tests in their office instead of sending it out to an outside laboratory, like we are so used to.
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a great idea, but the latest quarter was less than great. the company missed on both earnings and inventory. i would stay away from abxis. and jill turned about pitney bowes. we used to talk about that company in the past. i wanted to do some additional digging to see why the stock's been running. pitney bowes has transformed into a digital communications company, some legacy snail mail products. pbi's partnership with ebay looks promising and the most recent results strengthens the case that the company's new program to stabilize revenues is, indeed, working. i think if we get more signs are sustainable, pbi can move higher into the end of the year. but be careful, the stock's been a monster winner. it's rallied 124% so far. next up on the 25th, jerry in florida asked me about bj's restaurant. i hadn't looked at that in ages. for the last couple of year, bj's has been a real dog. this casual pizza and beer chain used to be a nice regional and national growth story.
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the company hit multiple speed bumps in recent years, including raising prices by too much, too quickly, the opposite of what chipotle did, and overdeveloping key markets like texas, southern california, and central florida. and no matter how many new restaurants you put up, the market won't care if the existing ones aren't doing well. and they aren't. that's that same-store sales concept i was telling you about. last quarter, same-store sales down. i say stay away from bj's restaurant. i can't get behind this one until or maybe unless their same-store sales start to turn around. last but not least, in november, november 1st, brett in new jersey called about ncr, the old national crash is what we called it, national cash register. this is an old-school tech company that makes everything from atms, self-service kiosks, point of sale devices, all those software applications that consumers can use to rapid their businesses. ncr has been a remarkable run over the last 12 months, rising from $21 to $40 before selling off after it reported the latest quarter at the end of quarter. and pulling back to $36 and change where the stock is now. i think ncr is very-well run, good management, and i like what they're trying to do, moving
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towards less hardware and more software and service. but it's all mobile, it's working. the weakness in the quarter mostly came from softness in the legacy atm business and retail point of sale software. these issues could be here to stay, but i like ncr's vision. i think the company has a solid and conservative growth trajectory, so i think this stock is a buy into the current weakness. and i welcome ceo bill moody on the show anytime, including, bill, next week. know him from way back. now let's take some tweets. our first tweet comes from @gilliespb. "aa, alcoa, has pulled back to phone line. good buying opportunity to start a position or just fairly valued?" here's the problem, there is still a major glut of aluminum. klaus kleinfeld is one of the greatest ceos in the world right now. he's working and struggling to get this company to be more proprietary and less commodity. not there yet. tor if the commodity came up, the stock would double instantly. it's not coming up. i think you can bide your time. nothing actionable yet, but i think the stock's hit a low. our next tweet comes from laces unlimited. it says, "hey, jim, a big boo-yah, thoughts on cvs."
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cvs caremark long-term, my ceo of actionalertsplus.com, she urged me to buy it for the charitable trust at $59 and $61. it keeps going higher, because the earnings are unbelievably good. i like cvs. it goes higher. stay with cramer. >> announcer: monday, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> we joke around that there are so many other stocks to talk about. >> announcer: it all starts at 9:00 a.m. eastern.
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there. just did my third snap chat today. i adore snap chat. it enables me to put a caption under my picture and send it to as many people as i want. i know i can do the same thing to a picture i've taken as part of a text message. this is a more pleasant, personal way to do it, i think it's great. it's like a present to my kids. the last time i was so deeply enamored with something with my kids, it was none other than omg pop, and before that, it was scramble with friends. that's right. two come and gone fads brought to you by none other than zynga. does that mean facebook was nuts when it offered to buy snap chat for $3 billion. were they dramatically overpaying? isn't zynga the biggest bust of
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all time? because of how all of those with friends games cooled in the public's eyes? no, i think it's all relative. i think it's all relative. i think snap chat would be a good weapon in the arsenal of any company that wants to be social or mobile, and therefore it's another weapon you want to keep away from the other guys. we don't know if snap chat has staying power or not, but if you're facebook, you sure don't want the competition to get it and find out it does are staying power. that's pretty much the way it works right now if you're a company that's flush with cash and could get more at the drop of a hat. think about it, if microsoft or apple had made a preemptive bid for twitter a year or so ago for $10 billion, do you think they'd regret it? we'd call them geniuses. and so what if the individual buying snap chat is 23. wouldn't you have loved to give steve jobs $3 billion when he was 23? giving him a claim on everything he later developed. do you think the guy running snap chat is that much younger than the brains behind facebook or google? no. there's a tendency to look at snap chat through the prism of the original dot coms and say that facebook, twitter, google, and whoever else might be
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interested in it are paying with wompom. that was the operative phrase back in the day about the money sloshing aren't in the internet. the idea that its 23-year-olds are spurned a $3 billion takeover bid leaves me cold. if you're in an arms race with facebook, google or twitter, you don't want this property to turn into enemy hands. it's a small token to buy it in order to blunt the competition. and maybe, just maybe, omg, it turns out they have staying power. if it does, you're a genius for buying the thing. if it doesn't, frankly, who cares? >> announcer: mad about "mad money"? immerse yourself in cramer's world why you watch the show with zeebox. on your phone, tablet, or on the web, get sneak peeks, go behind the scenes, and join the conversation. download the free app today for the ultimate cramerican adventure. [ tires screech ]
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to prove to you that aleve is the better choice for her, this is claira.. she's agreed to give it up. that's today? [ male announcer ] we'll be with her all day to see how it goes. [ claira ] after the deliveries, i was okay. now the ciabatta is done and the pain is starting again. more pills? seriously? seriously. [ groans ] all these stops to take more pills can be a pain. can i get my aleve back? ♪ for my pain, i want my aleve. [ male announcer ] look for the easy-open red arthritis cap.
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dream force monday. invest in america. defining the future. salesforce, going to be right there, right in the epicenter. we've got yelp, dropbox. so many more. man am i going to have to research this weekend. this is watershed stuff. i'm going out there to understand this powerful landscape, so i can explain it to you. you need to be there with me. okay, a strange new pattern this week.
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qualcomm preannounced that the forecast is to be cut. union pacific, forecast cut, it's above that. this is the new pattern and it says to me, buy linkedin. like i say, there's always a bull market somewhere, i promise to try to find it just for you here on "mad money." i'm jim cramer and i'll see you monday! >> tonight on the car chasers... feel that power? [engine revs] yes, you do. >> [laughs] >> when walt said he wanted this car for his wife, i thought maybe he was just yanking my chain. >> this is not the original engine. >> no. >> wouldn't we get a discount 'cause you don't have the right engine in it? >> walt. you didn't tell me she was a ringer. you got a ferrari outside, bob? i can't believe how it's been treated. i tell you what, bob-- >> [speaks romani] >> i'm a pain in the what? >> no, no, no, no, no... >> my name is jeff allen. i buy, fix, and flip cars. but i don't do it alone. i've got perry... meg...
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