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tv   Mad Money  CNBC  May 8, 2014 6:00pm-7:01pm EDT

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seven rounds. again, they got to do it quick and fast. it's got to be the right guy at the right place. >> andre thanks for stopping. have fun tonight. see my mission is simple, to make you money. i'm here to level the playing tealed 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. well which to "mad money." welcome to cramerica. other people want to make friend, i'm just trying to make you a little money. my job is not just to educate you, but to entertain you so call me at 800-743-cnbc or tweet me yooet jim cramer. >> how can can the highfliers get out of this box in pretty
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sichler, earnings per share, that can save them and we need to remember that on these confusing days when the the stocks we once loved are now hated and the ugly have inherited the earth. >> the house of pain. >> house of pleasure. >> with the dow finishing positive, the nasdaq falli falling .40%. we keep hearing endless prattel about bubbles and the guys on tv and the hedge funds lecture us, most of these people mouthing these have never blown a bubble, let alone trade in one, but they have a myriad of reasons for talking about bubbles. some are hoping that if one pops they can forever say they predicted it. this is the i told you so mob. i hear from them all of the time like the ones that email me i told you about tesla and would have been canceled by popular
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disclaim if they had their own shows. others say i have a bubble about to burst because their funds are so far behind the averages, and they have stocks to cool off, and they can can jawbone them down and i always thought the managers coming in saying they don't like the market should also have to reveal how they're going for the year and how underinvested they are. someone screaming bubble with a 50% or 60% gain is called wrong. it's not early. it's just wrong. maybe the bubble talks are wishful thinking and still others characterize the market as a bubble because they don't understand there are different kinds of markets and many different kinds of overvaluation that aren't bubbles. there are, indeed, lots of different variations of bubbles. they're not all the same. for example, there can be stocks that have established cultlike status as was the case with twitter. that was just one of those i love twitter so much i'm going
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to tbuy the stock retail bubble. twitter didn't prove up to the task, way too expensive institutionalwise. maybe tesla down badly on a quarter that didn't suit the growth enthusiast which is have more rigorous parameters is no longer up to the task either. then there are the sport squeeze bubbles, stocks guys decided to short and because of the peculiar nature of the way short selling works you first have to borrow the stock from your broker and they end up being part of a short squeeze because buyers come in and take the stock higher, forcing the short sellers to ever coor buy back their shares because that's the way the game works. there were a huge number of people led by the much-revered if not idolized david einhorn of green mountain coffee, for keurig was a big fad, and he had boigs accounting concerns and the wherewithal of the product
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and recently coca-cola announced it bought a 10% stake in green mountain for $10.3 million and that caused the stock to rally to 124 in a matter of days because many short sellers felt they had no choice, but to cover in the short squeeze. i guess you could say the deal red lighted the green lighters. finally, though, there is a serious bubble in the software service which i now call software as a disservice to your portfolio stocks. those wonders that allow you to rip out oracle or microsoft or sap and replace them with cheaper off the shelf programs for travel entertainment or county and human resources and community banking and software as a toilet and sink, whatever, right? you get me. i call it as a disservice to the portfolio because those are usually called sas, i like the acronym sad. meanwhile, we had conjoined bubbles for cyber security and internet commerce and biotech. each one got bid up because the original software, like sales
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force.com put up unbelievable numbers and the stocks soared for years until the last week of february when the thing got stretched and because amazon showed you that if you grow your business very quickly you get a valuation regardless of profit. in other words, you didn't need to show a profit if urn amazon and an old line pharmaceutical company you can buy it for a drug pipeline and there's been so much hacking and a company with decent anti-hacking software snapped up by a cisco or intel or oracle and because there's so much demand for help or in online advertising, many companies think the disastrous rocket fuel. it all made sense. exactly like 2000. in short, these bubbles all started out pretty legitimately. many of the companies came public because they could get more money from an ipo and the takeover. twist of the syndicate desk. given that only a small amount
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of stock might be in an initial public offering and it can get bid up beyond all reason. for the investor demand, but all good things must come to an end because eventually the insiders who weren't able to sell on the ipo did want out. at the same time the investment bankers go hunting for anything that look like winners and the companies are always happy to comply by selling stock. that's how they get liquid. next thing you know you get what happened at the beginning at the end -- the beginning of the end which is the end of february. this is what happened. the valuations of these companies got stretched to the breaking point far more than historical norms and more like historical ad norms and they hit with gigantic offerings and trying to sell stock in their cyber security concern when they hit 96 without getting their trade done with 82 and it turns out the sellers who unloaded 14 million shares looks like they did well. how do i know that?
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now it's 27, a couple of months later oh, and don't look, but there are another 80 million shares that can be sold in two weeks and that's when the lock-up expires and that much stock will indeed come to the market and we see millions of fire and they lock up inspiration and you get the picture. that's exactly what obliterated twitter. the lock-up expired and the stock forbidden from trading flooded the market and it finally hit my price target and my $29 non-dollar target yesterday and you bought it down here and you caught a nice rebound hit by target? on to the next. let me be real clear about this. back in 1999 and 2000 we had a bubble ishs bubble. there was no hope for profitability and they came public exactly for the same reasons we saw earlier this year. y bahhers were snapping up private companies at high prices and the insiders realized they account get a better deal based on funny metrics and eyeballs. the insiders bailed at any
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price. the money ran out and they folded more than 300 ipos went from hero to zero in a very short time as the bubble burst. will that happen again? no. here's why. unlike those 300 bogus companies from the dotcom year, many of those companies that were being crushed at and were laughing at every night, could show a profit and it could slow its growth and took orders and same with the technologies and work day and cornerstone and so many of the others we talked about. they thought they could get away without showing profit and the terrific software like tablow data didn't think it would need to show a profit and thought that was all people wanted. but that's what happened. it's more than -- they want more than that. they don't want just growth, they want profit. that ball game's over, show profits or write your stock's obituary. that's the m.o. these days. the reason i said twitter might make a stand at 29 is if the
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stock goes down too far it can make a good takeover target for an older company trying to get some growth. there's enough cash around for that to happen. enough cheap debt, not yet, but eventually. they may be in the takeover pray boat if they keep sinking at this pace. why not? they have food franchises and they can can make a ton of money if they weren't spending so aggressively to grow so quickly because that's what the stock market used to run before it changed the stripes. i would say many of the companies weren't bubbles. >> they're not in the bankruptcy like the 300 non-spartan, but in the undervaluation where the insiders stop selling and they become affordable enough to be acquired and the true bubble plays, many of which came public this year can run out of money and fold. so be it. here's the bottom line. recognize the different between froth and worthiness. no confusion. they are two very different animals. judah in my home state of new jersey. >> hi, jim.
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>> big boo-yah from lakeland, new jersey. >> what's happening there? >> thank you for taking my call. i wanted to ask you about linkedin. >> i did like linkedin and then linkoid in missed the cart e quarter a couple of times and they didn't hit the whisper wire or the whisper line which meant they were going to do better than they did. that's a stock that will eventually get a bid, but you need to see the selling staunch because they just reported a quarter and nobody was crazy about it. let's go to marco in new york. >> a big bush wick boo-yah! >> talk about a neighborhood coming back. what's up? >>a i great performer over the last year and over about 50% and after the quarterly report even though profits went up, the stock slumped close to 11% citing cold weather, hog virus, et cetera. buy, sell or hold for a five-year mead youm to lock
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term? >> marco, i'm going to go back to my 33 years in the business and when the stock goes down that means it's time to exit. exit stage right come you want to be in the food group, i think you want to be in white wave. sorry to burst your bubble, but no two markets are alike and know the difference between bubbles and high valuations and i'll be tough about it, okay? still ahead, wall street's growth investors have sold off last year's biggest winners and they're not going away and they're just moving money to a different place. if you're like me, you're paying more attention to what you eat and just ahead, i have a stock befitting the big trend i see happening and for the record, i cooked quinoa and swordfish. it was delicious. "mad money" will be right back. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an email to
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madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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what constitutes growth in this market? who's got it? i always like to see double-digit growth issue if i'm going to buy a stock on the way down because i know the growth hounds will come out there and will typically come usual lie t the price to earnings falls below the rate. many like this one have a pound one, pound all pin action attitu attitude. so bargains can accrue very fast. throughout this tortured period since the great reversal which was the moment when sales force.com gave up the ghost after it reported a terrific quarter at the end of february -- [ mooing ] >> and got trashed anyway. i've been eyeing the kind of growth stocks that these growth hounds [ barking ] still love. i've been trying to find stocks that aren't just producing big
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revenue gains and are putting up terrific earnings growth. that's right! earnings! like i said at the top of the show. my thinking goes like this mp momentum managers don't change their stripe, they just look to different stocks for the kind of momentum that works with the market's current motif. so guess where the growth managers have gone? give up? to the oil patch. where we have companies that are dazzling wall street with incredible numbers, shooting the lights out, three in particular that i've been focused on if you just came to the show for the first time and you'll say, wow! i'd write them down, but anybody who has watched the show knows that pioneer, simmerex and eag resources have generated the largest earnings per share that i've seen particularly this quarter. production of oil has been downright dazzling! ♪ hallelujah >> let's take pioneer first. it delivered a clean beat and it did so the right way with
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excellent pricing and terrific actualization. the street was looking for pioneer to earn $1.06, but the number came in at $1.26 and that's a huge, positive beat and you're getting 15% production growth right now and the company guided for the number to be even higher for the rest of the area. pioneer reiterated that longer term it sees oil production growth ranging from 16% to 21% which is much better growth than many of the tech and drug companies are forecasting. no wonder pioneer goes up and they go down! second, there's simmerex which like pioneer is a play on the permian basin, the texas field that had been left for dead, but is now very much alive frank to the fracing and horizontal drilling and zimmerex took it from the 10% to 16% range up to 19 to 22% when it reported yesterday. that will produce accelerating revenue growth also known as arg which is precisely what the momentum funds are looking for. no wonder the stock is up 21% for the year.
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best for last, eog resources and the company with its fingers in all of the best play in north dakota and in texas reported an astounding 42% year over year production gain. [ applause ] which came in at 266,000 barrels per day. that's unbelievable. this company was nothing just a few years ago. you've got a gigantic production of guidance increase which makes sense given how much oil this company keeps finding and delivering and very low cost, by the way, because of the infrastructure to it and created by eog and infrastructure saying where the oil is they can take it to the refineries because they're a smart company. if you live by momentum, you die by it, too. one of the big of the percentage losers is gulfport energy, down nearly 19% in a single session. i know it says gulfport that's like the gulf of mexico, but this is a company that's relying on the utica shale in ohio. a play that showed incredible
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inconsistency and literally from county to county and gulfport lowered the forecast by 30% and that's dreadful plus this company is natural gas and natural gas derivatives and they want oil, but remember when somebody misses numbers there's no price that's too low for these momentum hounds to sell just like there's no price too high for them to buy. so the bottom line is, there's always a bull market and growth somewhere and right now it's in the eagleford, permean and bocket and it couldn't happen to a better bunch of companies. i want to go to tina in connecticut. tina! >> hello. hello. >> i'm a little nervous, but i'm actual willy calling about halliburton which is a politically charged company, but i was very fortunate to buy it in july in the 40s. i got that award today and i wonder do i run? do i hang on to this? is schlumberger a better long-term hold? >> you do not need to be shy or nervous and you did a fabulous job and halliburton is an
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amazing company, third, those of us that are old enough recognize halliburton was recognized as a democratic crony company during the vietnam war because they were so close to lyndon b. johns sx on, and it became republican because of cheney and one thing they're good at is making money. halliburton is sensational. we spent a lot of time with the president of the western hemisphere which happens to be by halliburton. >> boo-yah from --? holy cow! i was at summit and had a place in the silicon valley there. >> great minds think alike. hey, what's your opinion of b.p. especially regarding that they have a large stake in any possible sanctions coming up? >> i'm not worried. b.p. has handled everything that's been thrown at hem and i think b.p. is real good. i like the dividend boost. they used to come on the show, but now they don't like me anymore or something because if they liked me they'd call me because i was the only guy that
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treated them with with any respect in the media. that's okay. they had a bad oil spill. let's go to damian in georgia. damian. >> hey, jim, this is damian. what are your thoughts on s os petrobras. >> i saw it sneaking up and i said look at that puppy at 15 and then it got smacked down. it got the most oil that is not being drilled in the world and that's because the brazilian government is so screwed up they've blown this and that's one of the reasons why the recount and the offshore oil companies and oil drivellers are undervalued. i would not sell pb, r, but i would not buy pbr. >> don't buy some. >> we need a new government in brazil, and when i say we i'm not brazilian so they need a new government. >> sure. >> thank you. stu in arizona, please. stu. >> how are you? >> really good, stu. >> thank you for taking my call. i invested in flowparticular a
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few years ago and have done quite well with it, what do you think about flowtech? >> i like it, man. it's in every single one of the businesses that i like when it's in the oil business and the chemical business and it's in all of the parts of the world they like. i'll tell you something, stu. you stick around, there might be a piece on flow tech soon because that's a real winner and then our viewers always know more than we do. listen, growth matters and there's always a bull market and growth somewhere. right now it's in programean and eagleford. still to come, there is a huge epidemic affecting americans and i have the company that has the solution. don't move because "mad money," it's back after the break. coming up, clearing up? limitless energy from the sun. the idea wouldn't just revolutionize energy, it could send shock waves down wall street. after years of underperformance, has solar's bright future finally begun to rise? don't miss cramer's exclusive with first solar.
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honestly, the off-season isn't really off for me. i've got a lot to do. that's why i got my surface. it's great for watching game film and drawing up plays. it's got onenote, so i can stay on top of my to-do list, which has been absolutely absurd since the big game. with skype, it's just really easy to stay in touch with the kids i work with. alright, russell you are good to go! alright, fellas. alright, russ. back to work!
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>> what's happening with the stock of first solar? here is a company in the solar space had has the lowest cost commercial manufactured solar modules and the turn key product solutions and everything from site development, engineering, construction, management and financing and we first saw it as
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a terrific runway for long-term growth and as we heard it in the analyst meeting in march. when first solar reported on tuesday after the close it earned $1.10 and i was expecting 56 cents and not 50 million in revenue. those are huge numbers and first solar also raised full-year earnings guidance and the company is producing ever so efficient solar modules and the pipeline increased 12.giga watts of projects which is gigantic. there was early revenue recognition with two big projects and money that first solar was supposed to make in the second quarter got pushed up to the first quarter and the people didn't like it and the stock fell in the single session. i think they have terrific long-term prospects and the stock is valuable and dirt cheap and sfrls 14 times next year's earnings and it's a momentum stock, not a value play. let's talk to the ceo of first solar and find out more about
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the company and where it's headed. welcome back to "mad money." good to see you, sir. >> good to see you. >> we joked about the value for the last month of the show i said look, you like value, not growth. a lot of people confuse first solar. they think it's a momentum-driven name where the revenues can go away at any given moment and i am saying it's a deep value earnings per share story. >> we're in the industrial infrastructure sector. we work on a long sales cycle against a very large backlog and a huge set of opportunities. so, you know, we feel like the fact that we make money, the fact that we make very little debt and the fact that we have a gigantic backlog on which we're operating gives people visibility as to the continued profitability of this company. as you know, we remained profitable when many others in the solar space were losing money. we view our business model as having a degree of robustness that people don't associate with the solar industry. >> it's precisely what people
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want and they have an earnings per share and a multiple on the earnings per share and not a multiple on the sales. >> they did an increeinging increase in the pipeline and the analyst and they have big wins. >> we consistently expanded our presence in a number of markets and as we get traction in those markets and identify customers and opportunities the pipeline grows. in addition, the price of solar has come down so much and at the same time competing fuels have gone up in price that were natural gas in particular. we're segan ever-increasing set of opportunities in the marks that we're already in. the two combined has led to tremendously powerful growth in the set of opportunities that we're chasing. if you go back to when we first started putting out that opportunity metric it was about 5 1/2 giga watts. today it's 12.2 giga watts. over a period of 12 to 18 months that's tremendous growth. >> a lot of people said kwa
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don't you ask jim when the subsidies go away. you're in countries where there aren't subsidies business? >> that's correct. we clearly feel in the utility scale segment in particular we've reached a point where subsidies can fade away and go away and we're going to continue to be a compelling value proposition for our customers. >> i'm familiar with solar city and i happen to like the company very much and a classmate of mine. they were saying the business is going to distributive where you put a panelling on your roof. this tetris sun product, isn't that the answer? >> it certainly is a product for constrained basis like rooftops. >> right. >> while there are clearly strong growth in the constraint based segment and we want to participate in that the utility scale segment will continue to be very large and continue to grow and so what may look like meager growth in comparison to -- >> it's 50 million roof tops, sir. you have to be on those.
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>> that's growth most industrial companies would love to see in their core market. >> where is your cost differential versus silicon right now. >> we don't put the exact -- >> i kept trying to find it. for competitive reasons we decided to tell our competitors what our cost is isn't necessarily a good thing to do, but we're very clearly of the viewpoint that we have a cost advantage versus the silicon competitors today. >> i don't know if you've been following what tesla's trying to do. i just -- what is the possibility of one day we'll have a solar battery in a car? >> a solar battery in a car? >> yeah. >> the car itself, i don't know, you're talking about extremely high efficiency products to do that. it's not our space. i'm not up on the latest technologies and i don't know what the practicality of that is. >> when you saw the supreme court recently made a decision that will shut down coal plants, is that something that you can say to yourself, look, we've got to go to these places that don't have any exposure to solar. got to go into them.
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when the coal plants are decommissioned they can't put up nothing, but natural gas. >> we've seen that activity today and we've been seeing it for a year and a half, so we're seeing activity in minnesota and we're seeing activity in north carolina and georgia. these are not traditional states that you associated with it, but as the percentage contribution from coal comes down as its inevitably going to, more and more utilities are recognizing that they need to make solar a part of their total generation mix. >> the sun doesn't shine there very often, germany has a huge percentage of solar and the sun is much worse than minnesota, right? >> that's just a function of what the cost is, but our costs have gotten so low that even in the lower levels of a radiance, we still have a compelling value proposition. >> but it will never be based on that, right? it's always going to be 30% max of a company's -- >> not until large-scale storage is economic and that will probably happen at some point in the future. >> you think so, really?
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in our lifetime? >> i do. >> you really do? >> i do. 30%, you have to recognize, that's an order of magnitude larger market than we participate in today. for solar and other company, giant companies if we get to those levels of penetration. >> that's right. i keep hoping you'll do that. yieldco, you dodged it with the analysts and dodged it in the conference call. we want a yieldco for our kids who want to have dividends and participate in solar. you know that would be what we want. i know you can't talk about it. i put it it out there. ceo of first solar, a deep value solar company. stay with cramer. coming up, organic growth? whole foods' wrought report called the move toward natural eating into question, but today a major player inside its stores surprised the street to the upside. is hanes celestial the better
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sometimes it's easy to get your portfolio to get a little messy. you may have too many software and disservice stocks and it's disservice to your portfolio or
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sad or too many partly cloudy stocks or risky biotechs. so i think it's time to do some spring cleaning. no, i'm not worried about your wardrobe and shoe choices. i make mine wing tips. i'm worried about your investments and let's get down to business and do a little spring portfolio cleaning and am i diversified stocks. and i'm starting to miss it. you call or tweet me@jim kramer and tell me your top five and i'll tell you if your portfolio is diversified and i want to start with corey in massachusetts. corey? >> hey, jim. how are you doing? big boo-yah. i got my big dog here, facebook. i have some gilead and i have bank of america, mac which they have cancer results and i-robot. what do you think? >> man. geez, i don't know, corey. you're a little too speculative, because, you know why? i'm putting i robot, mare mack
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in the same category as speck. i'm just saying you have a bank that i regard even though my charitable trust owns it, just a terrible bank. sometimes we own stuff and we're restricted so we can't dump it. you have gilead which is a great biotech and merrimac, and you don't need it when you have gilead and that's tech, i don't mind that at all. bank of america, okay, listen. i would change it up and i would buy wells fargo, wfc and i robot, you know what you need right there? you need to have a diversified industrial so let's make it the general electric corp, pa, dump, pump. let's go to keith in louisiana. >> what's going on, brother? how's it going? >> i don't know, every time i go to lose liez i have a great time. why don't you invite me over? >> let's do it. >> i'll see you in the french quarter. >> what's going on? >> i wanted to see if i'm
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diversified. >> i have enterprise products, epd, apple, honeywell, johnson & johnson and nustar. [ buzzer ] >> got to get rid of the nustar and epd. i like yields so much, but we'll get rid of nustar and we'll keep honeywell. that's a diversified manufacture you are and j & j and a huge charitable game and we'll get rid of nustar and we'll bring ii in -- it's got apple and some tech. i want to get a good one for him. let's get some -- i know. costco! great number and going higher.
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that would be good. that will really help. [ hallelujah ] >> now we're going lou in west virginia. i'm louing, i'm not booing. i'm louing! >> hey, jim, what's up, man? >> not much. how about you? >> i want to thank you, jim, for what you do for our retirees. you're a big asset. >> i'll be joining you right after this show. >> i'll give you my five stocks upon. all righty. alcatel and lucent. alcoa, general electric and rite aid and xilinx. am i diversified. >> xilinx, one of my action charitable trust losers. alcatel and xilinx do the same thing and we'll get rid of alcatel and we'll keep the xilinx because mosche will make it up for us in the next quarter and the growth star and drug company. and big charitable trust.com.
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minerals, diversified, material, tech, drugstore, and you know what this portfolio needs? what many portfolio needs? it needs bristol miers and that will do it. okay. still to come, whole foods may have will spoiled the market for organic food companies i.d.e., today hain, bucked it. don't move. crystal lightner is coming right up.
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tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*?
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it is time -- it is time for the lightning round on cramer's mad money. rapid-fire calls. [ indiscernible ] . play until we hear this sound. are you ready skee-daddy? time for the lightning round on cramer's "mad money."
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i want to start with sue in florida. sue! >> sue in west palm beach, florida. hi, jim. i want to thank you for taking my call and sharing your knowledge with us. my question is for trinet. i purchased the ipo and it seems like a good company, but it's at a standstill. >> no, no, no. let's give this some time. this reminds me of pinnacle foods and a lot of people wanted it to happen immediately. this is a very profitable company that came during a period of tremendous froth. it's a winner. i want you to stay in it and if it comes down i want you to buy more. let's go to john in texas. john? >> greetings, jim, from stephensville, texas from the heart of the cattle country. >> that's an endorsement. what's going on? >> i'm talking about ltc industries and a health care real estate investment trust. they just reported what seems to be a reasonable quarter and they appear to offer stable, modest growth and a 5% dividend and just wondered what you think. >> and yet i'm still going to
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see your stock and raise you with benas it, which is deborah's company. she's one of my bankable 21 from get rich carefully and even though the yield is smaller, i do believe the yield prospects are better in bentas. wes in kentucky? wes? >> hi, jim. thank you for taking my call. my pleasure. >> i wanted to send you a big blue boo-yah from kentucky. >> kentucky has so many winners. it's just incredible. what's going on? >> i was hoping to get your thoughts on solar city as a long-term investment. >> as a long-term investment, look, i am partial for first solar over solar city and one has big earnings and one has crazy things going on there, however, solar city does have a big model and i do believe in distributed power and i am recommending solar city's stock. let's go to claude in virginia? >> claude? >> hey, jim, first time caller, longtime listener. >> loving it. >> i want to thank you for what
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you do, and i want to know if i'm in the soup with noodle. >> noodles came in and talked a big game. talked a real big game and then came here and disappointed, and i've got to see some more -- i'm not seeing the kind of action i would like to see in noodles and i don't think this one and pot belly came public and everybody was excited about it and we were wrong to be as excited as we were. well, they were wrong. let's go to michael in new york. >> a big boo-yah from brooklyn, there. >> where, man? >> i'll buy you a mezcal! >> i do plan on coming there and i've heard a lot of good things about it. >> ten dishes, ten bucks. >> big question. pfizer did for astrazeneca? is it good for pfizer? it's not good for pfizer, it's great for pfizer and the tax machine will change and astrazeneca pipeline's better than i think.
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i am skeptical and it's a british company, buzz i do think the combination is good. let's go to carl in florida. carl? >> hey, james. how are you, sir? >> real good, how about you, partner? >> not bad at all. i'm new to the stock market, but i just finished reading your book "get rich carefully." i love it, by the way. >> oh, wow! you're great for saying that. it sold out in a lot of bookstores driving me craze pep. >> barnes & noble down here in florida. >> the stock fell into everything with western holdings. >> what can i say? the demand just shocks me and i keep thinking the demand for guns will peak and it shocks me and that's yet stock continues to work higher, and that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is sponsored by t.d. ameritrade. five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap...
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just because whole food his a tough quarter yesterday doesn't mean you should give up on natural and organic stocks. exactly the opposite. i've been committed to paper in get rich carefully and the weakness that the organic movement is bigger than ever. listen to me because the entire region of whole foods got crush side there are vastly more competition from other supermarkets. in other words, we've got more stores carrying organic and natural merchandise than ever before. the stores may be too risky now
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and the companies that make the food are looking good. they're arms dealers and it's no wonder that hain celestial and from celestial seenings, greek gods, yogurt and many, more roared after a 32-cent earnings beat with record revenues that rose 22% year over year. big growth. do you think general mill has that? that's why the stock shot up $3.60 today. the market judged a difficult quarter and we didn't. owen simon came on to reassure us and the stock has begun to rebound. he's the visionary, founder, president and ceo of hain celestial to hear more about the quarter and where the company is headed. mr. simon, welcome back to "mad money". >> hi, jim. how are you? >> great. when a company like whole foods has a disappointing quarter people say maybe this category is peaking, but it really is the opposite, isn't it? >> you know, it's interesting and i've gotten so many calls
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today, oh, my god, what's going on with the category and what's going on with the industry and a couple of weeks ago when walmart announced they're bringing in organic products. >> they're going to i haves rate. everyone told me that, i haves rate. >> as i said and here we have different products here, but, you know, there's $800 billion of food sold and the consumer wants to eat healthy and the whole thing about walmart was 91% of their consumers want organic booze. >> they thought it was a fad like costco thought. >> he was talking about one of his fastest growing categories and again, consumers and retailers are listening to what their consumers want and that's the good thing. you know, hain, it's 20 years old and we did over $570 million in sales this quarter, our biggest quarter and what we built out there as a team is one
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of the largest natural organic food companies in the world and the infrastructure out there and you heard me talk about our expansion outside the u.s.? >> right. >> there's $2.6 billion people from india to china, if we get 20% of that look at the sales and opportunities. it's an exciting time for hain. >> also. you look at whole foods, they mentioned kroger as a challenge. when i say sprouts obviously had a good quarter. what that says is it's not that people don't want organic. they want it everywhere they shop and that means they need hain. >> listen, for the longest time other supermarkets watched what whole foods was doing. >> right. >> here's whole foods. >> they're the best operator in the world. they are a fabulous, one of the best operators. you walk into a whole foods and they have 50,000 natural, organic products and by 2018 all of their products will be gmo-free and the consumers want
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that, okay? they absolutely, best in class when it comes to it, but when you walk interest a kroger, they have 1800 products. you walk into a walmart today and they have a hundred hain products. so every retailer you walk into today has natural organic products and you heard me what i said on the call, wherever there is a cash register i want to sell products. if you're in the airport, which you are many times i want you buying our product. we always highlight your brand. i've eaten most of your stuff, but i brought this out not to make a joke of it, but these are great companies. they're great american companies, but i think there is a movie coming out called "fed up" tomorrow with katie couric. i think this is driving that. i think the diabetes epidemic is driving that. i think there is a feeling among people that this is like tobacco. do you think that could ever happen? >> so, so if i put this which is
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fresh juice, organic juice next to this which is cold pressed. yes, it's a little more expensive and you look at the sugar and you look what's in here and the sugar amount. i have four kids and my kids just do not see this. you look at the ingredients in here and the sugar levels and the artificial level. dumping sugar. we shouldn't be feeding that to our kids. here is a pringle. it's a potato flake and you come back and look whether it's gmo verified and organic and what it's rich in. >> when are the schools going to start serving your almond milk and put it on, you know, have some nice, good food on this organic bread? when are the schools going to start doing that? >> jim, they're doing it today. >> only the most enlightened ones. >> i live in the city and my kid goes to schools there. they really have changed the food program because what they're realizing is their study habits and their learning habits as they eat better foods.
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>> you google what's in this and it makes you want to go buy that. >> you google what's in there and you don't want to buy it and if you look at the non-gmo-verified and that's what we should be eating. >> and listen, we're talking about gluten-free. we have a lot of gluten-free products and a lot of organic products and the consumer is educated about it. price, we have to watch price. >> i know you talked about the food inflation and the call. that's the big thing with hain has going for it, and as one of the largest companies in the world, hey, we took $50 million of productivity out and we have to watch price because the consumer will buy it. if price gets too high and i listen to numerous people being interviewed and how they run away by price, that is a concern and supply is another big concern and from a hain standpoint we're sourcing all over the world. >> i'm not saying buy for the quarter. this is an endangered spooshys
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and this is what we should be eating and maybe you should invest for the long term. that's irwin simon, founder and president of hain celestial. think longer term and think what your kids eat and think what your kids eat and it will be more of this than it is this. stay with cramer. (announcer) scottrade knows our clients trade
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and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."
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finally a quiet night. no real earnings after the bell. i leak to say there's always a bull market somewh >> tonight on the car chasers... what movie was this in? >> robert rodriguez's film machete. >> whoa. hey, hey, hey. how's she run? >> she runs great when she runs. >> dude, you told me it ran. >> only way we're gonna make a deal is if you get it running. now i'm putting matt to the test. i've wanted to do a gold car for a while. why don't we try it? >> here goes. i'm gonna open the door. >> whoa-ho-ho! look at that! she might be faster than the little chevy. >> what are you talking about? >> let's drag race. >> get your big boy britches on. >> tom's gonna race a car that's worth $100,000, and that's not a concern. his concern is winning. >> 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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