tv Mad Money CNBC November 20, 2013 11:00pm-12:01am EST
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pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. >> 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 friend, i'm just trying to make you money. my job isn't just to entertain you, but to educate and teach. call me at 800-743-cnbc. on a day that the market got slammed after the release of some nasty fed minutes indicating that some day the fed will have to stop buying all those bonds.
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shocker! the dow got clobbered, s&p backslid, .36% and the nasdaq plunged .26%. it was a meeting that happened about a month ago has almost always been a sucker's game. these fed minute related sell-offs are rarely more than just a head fake with no real, lasting impact. it doesn't mean we can't go down more after the run we've had. i certainly can't say that. in fact, it's kind of the opposite and we're certainly due for a bit of a bruising, and it wouldn't be exceptional if we didn't -- it would be exceptional if we actually didn't have a bruising, but that's why i feel why tonight is a terrific time to explain why i do still think we're in a bull market, despite the wave of negativity through today's session and yesterday's. so i need you to go back. i need you to do your literary homework here. remember tolstoy's classic line? all happy bull markets are
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alike, but each unhappy bear market is unhappy in its own way in the seminal stock treatise anna karenina. it's a great metaphor. indeed, bear markets are hideously unhappy in all sorts of different ways. it could be caused by a financial crisis. it could be caused by washington, d.c.'s shenanigans, democrat or republican. or a runaway inflation, as if any kind of inflation was ever standing still. or an economic collapse that knows he's coming or a blowoff by a major bank or hedge fund. in short, a bear market, giving up a number of causes, but bull markets, they are so similar it's incredible. so to borrow a page from tolstoy's best, even if war and peace is more signature, let's go over why all bull markets are happy in the same way.
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you can see the characteristics in the run we've had from the march 2009 low from the current date and almost all-time high levels, and this matters on the down day, and it's more fun to do than to break open the russian text. first, a bull market always has the legion of skeptics who fight it all of the way and these detractors are quite vocal that they're always given up and they're headed down severely, and we dropped slightly from the highs and they're relentless and they'll be out in full force tomorrow and would have been out much more quickly today if the sell-off had started earlier in the session. there wasn't enough time to roust them from their lairs, and these skeptics are integrated to the market going higher so they need to be plenty of naysayers, and i saw them yesterday and today when with hedge funds are saying, this is it. this time the monsters are for real, you know what i mean? scooby-doo. that's a classic reference. i heard it last week when someone said to me, this tech wreck that's happening right now, it's killing me. it must have been a silent killer, i didn't even see it happening.
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the venom comes out of the supporters of the market and they're viewed as charlatans and lightweights and someone who comes on our air all of the time who has been focused only on the gloom and doom, but never the boom. second, bull markets are always stoked by a compliant fed that wants to build up the wealth effect in order to propel spending, as we are a nation of spenders, but something is different this time around. the spenders are pulling in their horns. yes, perhaps the decline in gasoline has put in much needed spending of late, and the penny pinching, bargain hunting consumer, as you'll hear later in the show, is hurting the economy. that's right. everyone is worried and on pretty much every conference call, you'll hear nothing, but tales of woe in a competitive price-cutting market. we have food technology, and low interest rates for savers. commodities can't get any of their footing. in fact, the only inflation i see here is in housing, and
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that's directly stoked by the fed. existing home sale prices keep going higher, which is excellent news for companies in homes, and it's also good for the construction industry, but we have neither wage growth nor a robust job market and one of the most enduring characteristics of the happy bull is that you should never fight the fed. part and parcel with the bull is the endless doubting of the fed's resolve, or its ability to get the job done, and that's why you hear endless talk about the taper. by the way, i try to taper talk about the taper on this show including today when the fed minutes were one more cudgel against the bull, even as they really didn't say anything new at all, and frankly, you know what i think about the minutes? i think they're stale as the moment they're canned. third, all happy bull markets require low expectations on either sales or earnings. it doesn't matter that the companies beat on the bottom line and not the top line. in the bull market you need something to be beaten so
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companies can guide to higher estimates and you have the euphoric ability to inspire prices by beating the current top or bottom line guidance and then giving positive guidance ahead, which is the most important part of the bull thesis. and the stocks are elevated in price or the whole market is elevated. the bull can stampede on. oh, and yes, most estimates did go higher and expectations were raised this past season. woe to those who did miss, having nothing to recommend themselves. it does not take away from those effects. always something new and different. in a bull market, shopping for stocks is like shopping for goods in a costco. there's always exciting merchandise and intriguing deals or an irresistible sample of something you end up buying, as i did with a delicious crab dip after coming back six times, and you question how i got rich. you have several sector rotations underneath that were beautiful to behold. last few weeks oil struggled,
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but today's cold snap inspired buyers and it hasn't fallen so traders rotated right into that group. biotech has been struggling for a couple of weeks. celgene and gilead, they are fabulous leaders, by the way and they can hold on to the onslaught including this afternoon. power stocks are weaker throughout the day and it tells a good tale of men's and women's sales and they rallied when they pulled out. that's our sell-off. we have to go it a sell-off, where stocks and sectors run and there's another one heath up. the highly valued cloud-related technology groups run into it and it was cloudy and many were hit by meatballs made of the bear market. other less hot sectors, same with the transports where the airlines and the rails were smoking. >> all aboard!
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>> especially after the justice department folded the opposition to the u.s. airways and amr deal and then they cool with money going into other sectors. we had a decline in all retailers not that long ago led by macy's. a move so broad and powerful that it even took up walmart, which actually did disappoint. think of the power of that move. twitter's ipo inspired a rally in social media, but it's been heavy slogging since twitter broke the print price over the price where it opened. the 3d printer companies were red hot. now they seem no better than their 2d brethren. i saw one and thought it was a split. foxhole jet. best of all, happy bull market has very little memory on negativity. fast forward a few weeks later and the stock is above the preannouncement. people can't remember why they disliked it and they ran it over the same way they ran over anna karenina.
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the company gets recommended by two firms and suddenly the stock is behind where the guidance is cut and the guy comes on air and says it is fantastic and i'm surprised they don't issue an apology for their actions. there are days when most stocks go up. still, the overall direction of a happy bull market is higher, and that's where the minister's forgotten and i want to remember brilliant max that happy bulls are all of the same the next time you think that's it. nothing's working and it's getting crushed. it's just resting or falling victim to profit taking until it makes its next move. that's where you should look today and certainly after a day like tomorrow. >> carl in ohio. >> jim! long-term financial advice from you. >> sure. >> i'm wondering about a stock to put in my wife's ira.
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ryan air, i like the dividend and the metrics. >> i like plum creek timber a little more, but this is one of those things where it's a six or half dozen and i think plum creek is every bit as good as ryan air. can i go to chuck in california, please? chuck? >> do you think it is a good time to buy or sell yahoo? yahoo is doing a buyback. is it a good thing for the stock brokers? >> i was talking with about that with david faber and carl quintanilla and it is absolutely extraordinary to me that this company's worth so much. so much more than people thought, because of ali baba or yahoo japan, i would wait for a down moment and buy some yahoo.
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as tolstoy said, all bull markets are unhappy in their own way. stay with cramer. terrific trifecta. three retail reports, three serious sell-offs and they only have one thing in common. cramer thinks they could be headed up from here. don't miss these diamonds in the rough next. >> and later, fee for all? falling fuel prices and deep discount airfare help throttle the stock of spirit airlines this year, but was its doubling just the first leg of the flight? fasten your seat belts. you're about to find out. plus, the right fit? from google glass to smart watches, wearable tech is the next big thing. does fit bit's line of activity trackers have the fuel to hang with the big boys, joan us
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the homework, it just doesn't dovetail with the stocks. that's how i felt about the way stocks were trading today in the wake of the best buy, home depot and dick's conference calls. all three were basically in all systems go mode for the suppliers to those companies, which is what i care about. home depot loves to give you the state of the state, and the company continues to show how it can have such positive same-store sales numbers, namely because those businesses are booming from continued house price inflation. that's how home depot can grow at an 8.2% clip. why not? when you're buying a home these days you're doing so because you need it, and this is the big change, believe that over time your house will actually start to appreciate in value again. something that the data is
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showing you is true in the existing home sales today. by the way, a reason why williams sonoma, the high-end home furnishing business, we see these big 10% jumps? housing prices in parts of the country, and we might want to believe that we're in some sort of awful inflationary spiral. but housing is really the only part of the economy with any inflation in it, and after listening to this home depot call, i think we're simply still in catch-up mode from where we left off before the housing crash. i say that because home depot also tells you that the professional business, which is the business of getting professionals to build and more importantly renovate your house, and existing home sales has continued to grow at a slightly faster pace than the consumer business. that's excellent news for hiring. again, one of the few bright spots out there with oil and gas and health care.
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what is selling in home depot? pretty much everything which is also very good news because in times past there were entire aisles that weren't moving as well as others. you have positives comps in kitchen, lighting, decor, lumber, electrical, indoor garden, which were all above the company's average sale. millwork, flooring, plumbing, outdoor garden, building materials, hardware and tools were positive, but below the company average, and of course, was there not anything contradictory even as the other guy disappointed. that was because they didn't have much money for a sale. my take away is that the home security is doing well, although i wouldn't be jumping up and down for stanley because the tools made me puzzle if actually lumber liquidators are taking share from home depot given that the numbers aren't comping as high as i would like. the company's new showroom, when coupled with the online presence they have appliances
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any check of their website which i urge you to do and the store would tell you that whirlpool may be a good place to be as the market comes down and best and most pointed, the new cree true white bulb was called a fabulous seller. the excellent executive vice president of merchandising points out, the bulb gives off some of the best color when compared to other led bulbs. maybe my house won't look so two-toned outside. i have old bulbs and two new ones going. it's up 51% from its high and -- from its low and still way off its high. for dick's sporting good which is reported a better than expected-quarter and the stock is down 1.50 from where it was in the results and the call out here was very simple. apparel and footwear are each selling well. both nike and underarmour were mentioned positively although there was an odd interchange in the conference call about how nike's opening competitive
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stores to dick's. dick's is offering private label apparel. under armour is the buy on the pin action from the dick's conference call, and you have the terrific buying opportunity today as the stock got slammed along with the rest of the market, also surprising that jc penny said sales were good. i know that apple became a hated equity these days, but i keep hearing good things, so i can't join the mob of nitpickers. you did get a nice chrome call out from google and that's the icing on the google-lover's cake. despite whatever you might think the action is saying about how the company's performed, the truth is they each performed superbly against both their respective fields and retail in general, and the market is giving you a gift with this kind of decline that after the stocks settle down, i don't know, i think it should be taken. why don't we go to john in california, please?
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john. >> jim, i'm a graduate of the university of jim cramer. >> man, i didn't even know we were accredited. that's fantastic. >> i do want to say one shout out. katie and donna and katherine. >> who are they? >> you have the most dynamite offensive line in football so you can't be taken down. >> they're fabulous. they are all pro. you're absolutely right and none of them is incognito. >> nobody knows about them, but they're top notch. i want to ask you about j.c. penney, i know whatever they say, but i'm for the short ride. what do you think? >> it's funny. i was puzzling over this very issue, john. people want to get in j.c. penney. in the meantime the market's selling off, and all the good ones are coming down and here's the problem with j.c. penney. it was never that good, and it got totally -- its mortality was in question. it is alive. is it well?
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yeah, but geez, if they're going knock down all of the stocks, why not buy the best ones? why go with the not so great? sometimes christmas does come early and then you get an opportunity with home depot, best buy and dick's. by the way, if williams sonoma comes down, i'm going to add it to the list. they should be on the list of what to buy and to the sell-off that's about some sort of a tapering and fed minutes, and i'm going ask donna and kate what to really do. after the bell i'll try to make you more money. >> coming up, fee for all? falling fuel prices and deep discount air fare help throttle the stock of spirit airlines this year. fasten your seat belts. you're about to find out. shop until you drop.
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spirit airlines, sabe for all you home gamers. here's the ultra low price operator that runs over 50 aircrafts that serves over 150 non-stop markets. they make customers pay extra for luggage and carry-on and they can cram more people than most of their competitors, but that's all right. they charge less. spirit is unique among the airlines and it's run like a real business. you know i like u.s. airways, and amr deal is back on, but spirit is a lean, mean, money-making machine with vast opportunities to grow. the 52% gains when we had the ceo back in may. let's talk to ben baldanza. welcome back to "mad money." >> always great to see you, jim, thanks for having me on. one thing i have to ask you, i have a whole list of questions,
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and you are advertising right now, and i have to be sure it's not some mockup that you say it's -- don't be bullied by high fares. you are directly referencing incognito. you've got an ad talking about the toronto mayor smoking crack. how can you get away with this? >> well, you know, we don't support bullying or smoking crack, but what we like to do is take advantage of popular media stories and make it hopefully a funny sail around it to promote our very low fares. it's a fun way to stay in touch with what's going on, get people talking and, you know, when things like that make the media it's a good opportunity for us. >> i -- i don't look at advertising, and then i see yours and it's incredibly funny. i agree with you. one of the things that you point out in your tremendous study
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that you've got, which is tell people what people really want out of flying. is it leg room? is it more comfort? is it onboard snacks? what do they really want? >> every survey we've looked at, when you ask customers what they want most with how they choose an airline, over 80% of them almost always say that price is the number one thing. much more important than leg room or in-flight entertainment or food. it's not that customers don't want those things, but when they're deciding who to fly, price is the overwhelmingly number one factor. that's why we built the airline around that idea, to have the lowest price possible, and one of the ways we do that is we sacrifice one of the creature comforts like leg room, but things like that, but that gives everyone a lower fare. >> what you indicated in your most recent presentation, and this is the november one i'm referring to. there are many untapped markets that meet the threshold for growth. did we also get some untapped markets that were released by
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the u.s. justice department and blessing what i regard as an anti-competitive merger, but they did give up some slots. will spirit take some of those? >> it all depends on what the rules for the auctions will be, what the market prices will be for some of those things. so we're watching that closely and there are certainly some airports we'd like more access to, but it will depend on the rules of engagement that come about and those haven't been released yet. >> okay, because i feel that when i see the list of untapped markets, you don't know if you need to. there are 500 large markets that you can come in under right now? >> absolutely. we use d.o.t. data where we can see how many people fly each day between two cities and how much they pay, and there are over 500 of those non-stop markets that we don't serve today, where we could lower the fares by 20% to 30% and still hit our target margin, and that's enormous growth. that's not really different than
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maybe what southwest saw back in the 1980s, and it's not different than europe. if you look today, ryanair has 300 airplanes in europe and they have 11% of the market, and it's about the same size of the u.s. we're just 1.2% of the market today, so there's a lot of growth opportunity for our business model. >> for shareholders, it's absolutely clear from the lowest cost producer in our primary markets chart that you have, that spirit's cost advantage is incredible versus the other guys. how is that possible? >> well, it's possible because we built the airline idea around having the lowest cost. so we bought more seats on our planes than most and that gets a lower seat cost. we use the gates more efficiently by having shorter turn times and pushing lots of flights through the gates. we keep our model as simple as possible to make the technology the easiest and the training the quickest. we do everything we can do to have the lowest cost possible that allows us to be profitable
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with the lowest fares. we expect the cost advantage to grow versus the other guys because our costs are staying flat while theirs are increasing. >> you are also taking a page from the great tech companies. you're not in there to give a dividend right now. you're not in there to buy back stock. you see opportunity. you want more planes to make more money for shareholders through growth. >> that's right. we're very concerned about investor return. right now, although we have a fairly healthy cash balance and we have no debt on the balance sheet, which is great, but we also have a lot of growth coming over the next year and a lot of airplanes to finance. the reality is that right now the best way to return that money to shareholders is by growing that top line and maintaining our margins, and that will continue to produce good earnings, we believe, for the airline, and we think that's the best way to return to shareholders right now. we're not saying down the road there won't be different ways to return that cash to
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shareholders, but right now using it for growth is not the best thing. >> thanks for coming on the show and for the fabulous return. it's always a great job. >> thanks, jim. great for being here. >> they're the funniest and they're the cheapest and you know what? they're making the most money. stay with cramer. tomorrow, kick off the trading day with "squawk on the street" live from post 9 at the nyse. >> come january 5 they're, like, calling people saying hey, nice to meet you. >> it all starts at 9:00 a.m. eastern.
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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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it is time -- it is time for the lightning round on cramer's "mad money." rapid fire calls. play until we play this sound and then the lightning round is over. are you ready skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with charlie in florida. >> boo-yah from boca raton. how are you doing today? >> real good. how about you, partner? >> i'm doing good. what do you think about horizon pharma? it's gone up about 150% over the
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past three months. i wonder if you think it will still continue on that upward momentum. >> i know this is pain management and there's a tremendous demand for any companies that have anything involved with pain management, so it's a good spec along those lines. let's go to tim in california. tim! >> hey, cramer, what do you think of urs corp? >> i think it's pretty good. i wouldn't mind them breaking up into a couple of different divisions, but it's a very good engineering construction company. i do prefer floor more than urs. can i go to jim in michigan, please? jim. >> thank you, jim cramer, for giving a regular investor a chance. jim, my stock is f5 networks. >> i think f5 was great. i believe that this online traffic cop for the internet is a terrific company. it did not pop the way i thought when they recently spoke. let's go to bob in arizona.
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bob! >> a nick foles boo-yah from arizona. >> a number nine boo-yah back at you. >> my stock is cimarex energy. >> this group is under pressure. i have to tell you, we were talking about these independents and i think that cimarex is dirt cheap, but i think oil is bottoming here. i want to buy cimarex. bob in new york. >> jimmy, plains all american. great quarter, rising dividend, not doing much. what's going on? >> just be patient. no one ever got hurt by a 4.7% yield even if it goes to 3. now go to cristie in pennsylvania. >> boo-yah, what's up, jim? >> what's shaking? >> what's shaking, bacon. so listen, we watch you every day and my question is we're
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trying to get a little more involved in the stock market. there was a stock we invested in about a month or so ago upon hearing your insight. h.k.? >> it's been disappointing, frankly, christie. it ain't bringing home the bacon, so to speak, and i have to tell you, floyd wilson did not deliver as good a quarter as i thought. he has a long track record of making money for people, but that was a disappointing quarter and i didn't understand why when everyone else was doing so well in the patch that they're not doing better. now go to anne in california, please. >> boo-yah, jim. >> boo-yah! >> thank you for taking my call. my question is what are your thoughts on terra nitrogen? >> i don't like the -- i do not like the fertilizer stocks in general. that one does have yield protection, but i'm going to stay away from it. let's go to anthony in new jersey. anthony? >> jim, how are you? boo-yah. >> boo-yah, anthony. what's happening?
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>> transportation, what do you think? >> i like the freighters, they're terrific, but i still want united parcel more than i like swift and that, ladies and gentlemen, is the conclusion of the lightning round! "the lightning round" is sponsored by td ameritrade. coming up, shop 'til you drop? from oregon to ohio and all over the east coast, you want a read on retail? tanger outlets has 15 million square feet of it. cramer is talking to the ceo ahead of the black friday rush to hear what's ahead.
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during the holidays you need to get a clear read on what's happening with retail and if you're looking to take the pulse of the whole sector it's worth talking to a real estate investment trust that owns the property under a host of different stores. take tanger outlets, skt for you home gamers. there are 43 outlet centers across 23 states and canada. this stock got pounded over the summer when interest rates were on the rise, but it's been working its way back up slowly, but surely ever since they stabilized in september. they reported a healthy quarter in the end of october with same-center net occupancy income
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up 4% and terrific 98.7% occupancy rate. let's check in with steve tanger and hear more about this company and where it is going. mr. tanger, welcome back to "mad money." hi, jim. >> nice to see you. >> nice to see you. >> if it's 98.7%, you can't get to 104%, what will he do to make money beyond what he's at it? >> jim, we've been fortunate in that our sales continue to rise, our tenants continue to prosper. we have a very low cost of occupancy for our tenants which allows us to continue to raise our rents. our rents were up about 23% so far this year, so we have a win-win situation. our tenants continue to make money and our shareholders make money. >> is it actually beneficial if someone of a lower rent were to actually go under, because you have people clamoring to get into your places? >> 99% occupied, we are
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statistically full occupied. most of the centers have waiting lists and of course, we don't root for anybody to go bankrupt, but should they decide to leave for whatever reason, we usually have a wait list to replace them. one of the things that's happened in the last few years, are the people who feel comfortable in the stores feel comfortable in outlets, whether it be last call. so here are some new ones that i think people will be shocked. helzburg diamonds. andrew mark. these are full-price places. they're not afraid. >> theory is one of the best designer names. >> i paid a fortune for theory. i just bought a really beautiful -- never mind. i didn't think there were in outlets. >> we have them along with very fine other designer names like calvin klein, tommy hilfiger, polo. we've been doing this for 33 years and we work with the very best brand name and designer names for that period of time opening outlet stores for them. >> at what point do i go to my salesperson at macy's and say
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wait a second, i am not paying this price. i just saw this identical goods at tanger outlet. >> the sales were up in the third quarter. the department stores set the retail price, so if you want to go to your neighborhood mall and buy whatever product you like at full retail, that's great, but you can drive ten minutes to a tanger outlet center and get it 30% to 50% off every day. >> and these companies -- do any of the companies that are in a saks, in an off fifth complain to saks that they find their merchandise at a tanger store? >> the products in saks off fifth are sold by the manufacturer, so they're not going to be there and it's a win-win for both of them because they make excess product, or they have excess product which they sell in the saks off fifth division and it's more distribution and more ways to touch their customer and introduce them to the saks brand.
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>> when you are re-upping people, obviously you're talking to them about how business is. we're getting a mixed picture. everybody i talked to is doing pretty well and everybody else seems to be talking gloom. maybe i'm talking to the wrong people although i do more work than others. you can solve this debate for me. how are your customers feeling? >> our customers are very optimistic going into christmas. our stores are the best assortment of product at the best price we've seen in many, many years. our sales in the first -- for the last 12 months have been up about 1%. we think that will improve in the fourth quarter going into christmas, but who knows? interest rates still continue to stay fairly low and we are optimistic. >> okay. what does pre-development mean, because you've got columbus, scottsdale, park city, clarksburg, maryland, st. saveur, i don't know that area, if i went there would i know
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what you were doing or is that just places you've cited? >> st. saveur and bromont, they're two centers we bought around montreal. predevelopment means we don't have all of the permits to begin construction and we don't have the necessary amount of leases before starting construction. >> but if i see these and i say i'm going to buy land next to tanger, i might take advantage of this. you're giving others a blueprint. >> they can try it if they want. we have great tenant relations and we've fought competition for 33 years. this is america, people can compete. >> they have every right to lose against you. >> i wouldn't go that far, but thanks, jim, we appreciate it. >> that's steve tanger, president and ceo of tanger outlet centers and it's got good yield and it's got growth. you've got to have both in this market. stay with cramer. >> coming up, the right fit? from google glass to smart watches, wearable tech is the next big thing. but does fitbit's line of
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privately held companies that are leaders in what they do. companies like fitbit, the pioneering market making leader of connected health and fitness markets that track the number of calories you burn and the number of steps you take and the distance you travel and the time it takes you to fall asleep and the quality of sleep although i use it to count steps. it syncs up with your smartphone and computer so you can track and analyze this personal health data. goes against yourself and you compete. it's like an eating disorder that fits right into the palm of your hand. it appeals to the health-focused sensibilities of the younger generation, including the younger ceos, they're all wearing these fitbits during our interviews. now everybody from nike to under armour is trying to get in the action and i think this is an important story to watch out for. we had a chance to talk to james park, fitbit's co-founder and ceo when we were at dream force. take a look at this. >> james, a lot of talk about health care in this country and how we can make it so it's better. is fitbit part of the revolution
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that makes it so that we never have to get into the health care system in a bad way until we're older? >> well, you know, it's always important to see a doctor every year, but a lot of the time your doctor doesn't know what the heck is going with your life. so using sensors and big data, we have a series of devices that allow you to take control of your own health care decisions, see how you're doing in your daily lifestyle, increase your activity, get healthier. so i think we're all in the forefront of this new generation of health devices. >> is fitbit about competing with yourself? >> it's about competing with yourself and with your friends and family. we have a lot of crazy, rabid users that within family units get into pretty intense competitions with their grandparents or kids and it's all in the name of getting healthier. >> this doesn't start as a healthy kick. it started with the wii. that was the idea for it. >> my co founder and i in late 2006 were among the first people
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to buy nintendo wii and waited at best buy at 6:00 a.m. we were fascinated by the way you could combine sensors and data and really change industries. >> talk about what the -- we're at dream force. where does fitbit fit in as a device? >> it's a device. that's the first thing people see, but it's all about the data and the services that live in the cloud, as well. i don't think something like fitbit could have been possible five or ten years ago, without cloud services. a lot of data are stored there and we have a lot of personal biometric data and we run analytics to help people make better health decisions. >> i know people who are afraid to give you the data because they feel it's out in the cloud and someone can get their data. >> for us, we've had a core philosophy at the very beginning we don't sell or share data with third parties. we don't sell advertising. all of the data is under your control unless you choose to share it with friends or family or your doctor, et cetera. >> this is a very competitive
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market. we had of kevin plank on mad money and he's coming up with clothes that are coming up with what fit bit does. there are guys out there trying to get you. how do you stay ahead of them? >> eric and i started this company almost seven years ago. we're pioneers in the category. we're number one at the top of consumers' minds. we're in 20,000 stores in 27 countries so we have a pretty strong leadership position. >> is there something always in the pipe? is there something that will wow us? >> they always something in the pipeline. that's why i love being at fitbit. just the amount of new technological developments with sensors, radios and microcontrollers, that's what gets me up every morning. >> does anything from health and human services, does anyone recognize the importance of catching illness by staying in shape? >> that's the strange thing. >> it hasn't happened? i find that to be incredible. >> you know, i don't really focus on, you know, where the government fits in. for me it's a personal mission
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and a company mission to make people healthier. >> you measure yourself by downloads. how did you find the app and how that's going by international customers. how do you talk a lot to customers and the people who buy the product in the retail channel so retailers love us. we are number one at retailers like best buy and target, et cetera and if you look at i tunes, clearly ahead of our competitors. >> who wears the clip-on and who wears the wrist? there's no one size fits all, so people have different genders wear different devices. people are sensitive to different price points, so we try to have all sorts of different devices for different people. >> how about corporate? if someone has a wellness division they should tell people you get some sort of discount if you wear fitbit. >> hr managers at the world's largest corporations love fitbit. we are used in thirty of the fortune 500. self-insured employers are
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always looking for ways to lower their health care costs. >> you've got venture capital back and this is the third start-up. a lot of people feel like too many companies were coming public too early. you're obviously taking your time. do you need public money or are you set as you are? we've raised 66 million in venture capital today and for us it's all about building a credible and consistent story before we go public. >> or are they saying, you know what, james? you better trap. >> for us it's important to drown out the noise and be focused on the mission. >> do you read the reviews when someone stacks you up against somebody else and say listen, guys, we have to trump that? >> i'm always scared of reading reviews, so i kind of -- you know -- >> you tend to win them. >> i'm always nervous so i glance a little bit and i read the headline and then if i like
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it i'll dive in. >> we checked on linkedin. there was a job post for fitbit and this may have been taken, the decisive administrator to join the growing team. have you hired that person yet? >> not yet. >> say someone's watching and there are jobs for smart people coming out of school. what do they do? can they apply with you? >> we have a whole varieties of jobs. >> look, i'm a win/lose guy and i see a lot of collaboration and see guys being frenemies. aren't you trying to destroy the other guy? >> if you are a start-up, you don't have the resources to take on everybody yourself. >> you don't think it's zero sum against some of the other guys? maybe against some, but it's better to team up. >> fair enough. that's james park, ceo and co-founder of fitbit. i use it. i've got the wrist, but i know someone else who has fitbit and she loves it.
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liking that williams-sonoma tonight. there's always a bull market somewhere. i promise to find it for you right here on "mad money." i'm jim cramer and i will see you tomorrow! cadillac from mad men-- what's this car worth? >> oh, i hate used car salesmen. >> what? >> i feel like i'm wasting my time. >> for some reason, jeff decides i need help, so he sends me little mac. >> jeff got you working like a madman? oh! >> are you [bleep] kidding me? >> the camaro--the rubber's hit the road a few too many times. it's got all the telltale signs that the car used to be drag raced. >> just a occasional burnout. >> if he's not being honest with me, it can affect the resale value of it. that's it, we're done. >> oh, no. >> my name is jeff allen. i buy, fix, and flip cars. but i don't do it alone. i've got p..
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