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tv   Mad Money  CNBC  May 14, 2014 6:00pm-7:01pm EDT

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guy d guy. >> tlt goes higher. tlt. >> that's a good one. besides zulily, i think we go cash america. they do well when gold 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. my job is not just to entertain you but to figure it out for you. call me at 1-800-743-cnbc or tweet me. what if we changed as a people? what if our nation's pysche has
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been so altered that we're still dealing with it every day in the financial markets and just don't know it. that's how i feel today after the shocking decline in interest rates that seems out of sy, this c with the averages. a decline in interest rates that i think actually caused the averages, bonds into stocks to hit the skins. dow falling 101 points, nasdaq declining.72%. when interest rates have gone down in the past, stocks have almost always gone up. kind of lock step. but the linkage has been broken for certain of late. now people just fret that if rates are going down, well, we have to be teetering into recession. how else can you explain it? that's the wrong conclusion people. there's a lot more at play including a newly frugal american chopper. part of my some what reserved outlook comes from stress tests, reflections on financial crises. the new book by tim who i will
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be interviewing in new york city right after the show as much as i lived through the crisis like many of you came out on the other side. the scar tissue from the touch and go -- >> this is a chilling look at how we were a few heart beats away from a second depression. there was a moment there when congress initially failed to pass the troubled asset relief program so i went on "nbc nightly news" before the show and said i don't know if our atms will keep spitting out cash. stress tests. turns out i was right. that's frightening. but that's only one example of the chaos that befell our
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company. i'm thinking if i see these interest rates going down action maybe we changed too. maybe we're a nation of cheap stakes and spend thrifts. we're seeing some truly crazy things that cannot be explained by conventional thinking and are totally weighing on stocks at this moment. no, don't touch your remote. you have to hear me out. even though i just mentioned the dullest word in the english language. i'll do it again. bonds. today we have a tremendous inflation number. i'm worried about that. now in the 35 years i've been trading on wall street including a prolonged period as a guy that used to swing hard in the bond market, rising inflation has always been met with one thing, rising interest rates. not today. today rates went down. they went down big. ten year treasury is all the way back to 2.5% where it was before employment took off in this country. that shouldn't be possible. it's like a square peg being
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able to fit into a round hole. we thought interest rates were staying down over fears of a war in ukraine. tensions waned for the moment. let's take that off the table. of course there's other reasons. for example, spain, a country that has 26% unemployment is now paying just 2.8% for their holders of its ten year paper. that's down from a 7.6% in mid 2012. that's ridiculous. that's a bubble. especially when compared to our safe bonds that pay 2.5%. we see the same thing in all the other troubled european countries too and they're still troubled. someone might want to buy our bonds and short theirs betting spanish bonds are in a bubble. that trade makes sense plus the u.s. government isn't issuing as much ten year debt as it used to or as much as we're expecting. it's shrinking thanks to higher tax receipts and less spending
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by the government. it makes sense that rates could come down as bond prices rise. still, though, our federal reserve was buying a huge percent of those bonds not long ago in order to keep rates low. now they tapered their lying. they're acting as if the fed is buying them hand over fist. the fed has trillions of dollars on its balance sheet. they can sell a big portion of that right now in this open market and maybe not even sate these bond buyers which brings me back. that movie where he describes the run on the banks. what i think has happened is that friendly bank that supported community lending has been replaced by potter's stingy bank that doesn't want to give loans and consumers are afraid to borrow. borrowing is way down in america. home buying is way down. back to levels shocking given the vast size of our country.
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people aren't having kids the way they used to. perhaps because they think they can't afford them. a huge percentage of married couples still live with their parents. warren buffet questioned how long that trend could last because people get tired of living with their mothers-in-law. they haven't. they're still there. we're simply seeing a level of frugality that's not unprecedented though because we saw these levels right after the great depression. there's still plenty of renting going on. that's what you do when you're afraid to buy. a shortage of new homes coupled with the hedge fund buyers is going to drive up housing prices for many people. still it's too healthy for me to buy that entire argument. it's the cherry consumer. has to be. maybe the word from fannie and freddie that they'll make credit better i'm not sure. for staying thrifty it might not matter. i always look to the companies
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for help when i'm confused. we got an interesting earnings report for macy's. the numbers were better than fine but i think a huge percentage of the bottom line comes from being a surveillance pier improper operator and they call that home spending this week. still one more bit of data confirming that the lack of spending might be behind some of the low interest rates. now, i am sure people will say, hold it cramer, people are spending like mad because we're going to be making 16 million cars in this country and they're all spoken for but i remy you need a car to get to work and that's a necessity. do you know what you need in your home? the bonds are so low interest rates -- interest rates are so low that interest rates have come down so much that a recession just has to be around the corner. why else would interest rates be so low? so we need to reorder our portfolios toward the more defensive and highest yielding stocks and that's what we saw today. the whole day. the main reason stocks for hammered. particularly the financials but
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also the industrials. interest rates low, must be a recession. i think that gloomy view is wrong. with the help of stress test, the book he'll be signing at the union square barnes and noble where i'm going after the show, i think we're just headed to a much more thiftty puritanism which is a younger generation that hates conspicuous consumption. i think america has gone frugal since the near death experience from the new book. that's why the declining interest rates don't mean we're going to have an economic collapse. that and what's happening in europe. take advantage of the discounts and stocks created by those bailing because they fear another recession. it's a false worry people. it's one that won't make you a dime and i think will cost you terrific opportunities. the new frugality is a terrible thing to waste. particularly on low yielding bonds. let's go to bob in my old home
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state of pennsylvania. >> caller: hey, a big pittsburgh booyah jim. >> i like that. >> caller: really enjoy your show. thanks for all of your help. we'd like to buy pier 1 imports. what do you think? >> i think you're right. he's built up his website and he's a bankable ceo. his stock has been dinged more than all the others. i think that pier 1 is at a level where i want to own it. let's go to mark in wisconsin, please, mark. >> caller: jim, thank you for taking my call. my stock is sand ridge energy ticker symbol sd. i was wondering what your thoughts were. >> okay. this is a heavily speculative stock but it's been going up over time. i like the last quarter. a lot of people expected when they got conditioned by the earlier part of the year when you had a good quarter and your little dollar stock explodes. it's doing well. it's going up incrementally.
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i like that. i'd stay along it. nick in georgia, please nick. >> caller: i had a question about rite aid. i was wondering if you thought their stock might be undervalued. >> i went to rite aid the other day and my picture is on the wall in the manager's office. hey, it's kind of strange. rite aid is terrific. it's an emerging story that's now a plain old earnings story. no longer turn around. just earnings. stock had such a big run it's digesting the move. al in florida, al. >> well, maybe that's the new consumers that didn't stay on the line. there's a new frugality in this nation and that's a terrible thing to waste. take advantage of any discounts that come by those bailing because they're worried about the bond market. still ahead, national, non-gmo,
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organic, zero transfat. i'm busting through the buzz words to find out the healthy play to put food on the table and french fries and your favorite fragrance have one stock in common. plus it's been more than five years since they made the change for the big banks but are they any less toxic today? stay with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ female announcer ] there's a gap out there.
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stress test by former secretary treasurer and unsung savior of capitalism. you may never want to buy a bank stock again. that may be my chief stock take away from reading this newly
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indispensable book about the -- they were so interval to the near collapse in the united states. not just the financial system but the whole country. if you're as enthralled with the turmoil of that period as i am seeking what went wrong, who went wrong, what was done to stem the collapse and what could have been done better than the stress test will be your page turner bedside reading. they're all here. aig, washington mutual, merrill lynch, but stark reality, a cot log. the behind the scenes on near death of each is detailed and makes me feel he's a total honest broker. many people don't feel that. i don't care. he's the first to admit he lacks a dramatic hero villain flair.
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they almost all seem to be drawn to the financial industry like flies to honey. family show. it's impossible to imagine a group of trucking companies, health care professionals, any industry performing so horrendously as bank bosses. they are at times laughably villainous. like when one of the richest men in the world at that point running merrill lynch requires an incredibly tense media. now whether it will be curtailed by the government's program to save the world, good grief. he didn't write the book as an investors guide to banks but you can extrapolate from the rich composite to populate the text. this has to be one of the most cautionary tales i have ever read. and for and after the crises why the bank stocks received such a low evaluation in our market these days. first going to the great
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recession, we now know that the financial statements from the financials, well, both bank and not bank alike, they were fiction. everything you saw on paper was pretty much a lie. you simply couldn't look at anything publicly issued by these banks and make a legitimate judgment about what they owned, what exposure they had or what they were. if you thought you were clueless but the regulars had a handle on it, going into the melt down tim didn't know either. whose fault is that? unanswered by the book but it didn't hurt that some served on the board of the new york fed at the time. conflict? did check himself out. second coming out of the great recession, we know the actions of the bankers were so bad that even though many of them belonged in handcuffs, the government had no choice but to
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put the whole system in handcuffs. after reading this book, i now know that banks are far more straight jacketed than they are. a meaningful return for you the shareholder on anything other than fees will be forgone for the foreseeable. like the j.p. morgan or the bank of america bond portfolio. the demons of the past haunt the banks for more than we realize and when you read stress test you might want to thank him for recognizing that someone this h to cheek the greed or at least grade it or flaunt the institutions that don't get that the world has changed. the whole sector is held back thanks to thor e er rrors of th players. >> coming up. >> gluten free food.
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>> you heard about gluten-free diets. is this fad just a flash in the pan? tonight cramer talks with one of the biggest brand bess hind the craze to see if you can make bread. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs.
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we are volvo of sweden. you know we're big believers in the idea of healthy eating.
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not always doing it for ourselves but no one ever got hurt by a good diet or investing in it. that's why we're a backer of natural or organic food makers but do you know what's the fastest growing packaged food out there? gluten-free. it's found in foods made from processed wheat. millions of people can't seat the stuff without getting sick. if you suffered from the disease and 3 million people have it, then eating gluten can be painful. in the last few years it's gone from people with a specific disease to a broad trend becoming popular with the wider population and when it comes to gluten-free food, there's bolder brands. the maker of gluten-free foods. we like the plant-based business from white wave and heart healthy diets. boulder brands formally known as smart balance had an incredible run from $5 in change to over
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$18. but in the last quarter sales weren't as strong as analysts may have been looking for. and it's fallen down to 13 in change. let's check with the chairman and ceo to see what he has to say about his company and it's prospects. welcome to mad money. >> thank you, jim. >> thank you for coming on the show. i want you to walk us through the categories that you have because the companies really should have split -- it's split between the smart balance side which isn't growing that fast and the other side which is growing by laeaps and bounds. >> we have six brands. it can go into almost every category. smart balance was more con ve s conventional and then we have the combination, the powerful force in the gluten-free space. our new pure and simple play in frozen and then we just recently launched this level product
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which is a play for diabetics going into distribution now. >> some of it is like where you have this kind of slow growth but steady business and then you have a fast growing business. it's also like dean foods with slow growth and then also white wave which is fast. do both companies belong under the same roof? >> smart balance has been a great legacy brand for us. it came out before anybody knew what transfats were and we recented converted it to non-gmo. >> i saw that. >> it's going to be interesting to see how that plays out for the brand. it's a great cash generator and enabled us to put together an infrastructure and have relationships with retailers. but now as we come in, we have the credibility with retailers to talk about these other trends. >> let's talk about the last quarter. it seemed like you got hit by a commodity that -- people are getting hurt. we saw wholesale produce this number was really bad today.
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this time it was egg whites. >> yeah, i mean, it's ironic because what happened is the quick serve restaurants are going to healthier menu items. they start offering the breakfast sandwiches with egg whites and we have a lot of egg whites in our gluten-free bakery products so historically our gross margins have been in the low 40s. but we think, we feel pretty confident it's going to bounce back to the 40s. this is kind of an air pocket. >> okay. now we've had and i know you watch the show, we've had him on a number of times. the non-gmo category, where you're moving into here, not as much but here with eval they've gotten much more competitive. a lot of people want in. is that part of the gross margin problem? >> no, this margin issue is really this one commodity ingredient but for white wave a great company and folks like
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ourselves the move to organic and natural products is going mainstream in a major way. it's an incredible tipping point. >> talk about that. natural and organic celiac if i'm not drawn to gluten, would i say i don't want gluten in my diet? >> everybody tries and finds out. if you go on a gluten-free diet for two weeks you'll find out if it makes a difference for you. we have 1.8 million friends that we contact and the stories are incredible. >> people knew that they weren't feeling great. but they didn't know and their doctors didn't send them to a nutritionist. >> that's why there's such a powerful connection with the brand because it's a self-discovered solution. so they really do -- but i think overall as you look at the food industry right now, i think for the last 20 years the natural foods consumers have been questioning what's in my food and the last two or three years
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is mainstream consumer is starting to ask the same questions. >> wall street said they're moving into natural and organic. have they contacted you? i know you talked about certain stores, target where they're really coming after you, they want your stuff. >> we're getting engagement across all channels of trade. it's unbelievable. the neat thing about walmart. they're launching a private label. >> yeah. >> but that's going to be exciting for the category. for their demographic they're going to give an opportunity for those people to engage in organic and natural products. so i think we're at a tipping point and i think there's some exciting growth for really all of us in the category -- in the industry. >> one of the ways i like to measure the product isn't so much the gross margins but it's aisle space. a lot of the conventional food companies, we saw this merger with hillshire, a lot of that business is down. the center of the store so to speak. are you taking -- if i were to
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go into the aisle of the super market now are you much more evident? >> the mainstream grocery store maybe three years ago we averaged 10 to 15 items. today we average 40 on shelf across our product. in two years that will be 60 or 70. >> and different segments like frozen. >> yeah. >> you go into target, we have a huge display in target. we're starting to get that kind of engagement with other customers. the mainstream retailers are saying, we really want to get in front of this trend. we want this consumer in our stores and then the natural retailers are pushing innovation very aggressively. >> it's an interesting story. very competitive category. we know that from whole foods. it can be but an interesting story. that's chairman and ceo of boulder brands. a lot of good research on the company and a very good conference call from may 8th of this month if you want to learn more about it. stay with cramer. >> coming up, the smell of success? you may not have heard of international flavors in
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fragrances but chances are you have sniffed, sipped and savored the company's work for years. could innovative new products cause the stock to catapult higher? all stations come over to mission a for a final go.
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we spent a lot of time talking about what's not working in this market. let's take a moment to focus on a stock working well. one that's on the wall street fashion show. i'm talking about national flavors and fragrances which is one of the four main suppliers of beverages. household product industries.
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there's compounds that have a specific percent and then license them out to the food bev campe campe beverages. there's a numerous amount of innovation happening outside of tech. unlike all of these super inventive tech stocks getting killed it's giving you a 50% return since i last spoke six months ago. seven cent beat. higher than expected revenues. 5.8% for the year. really strong month me momentum. welcome back to mad money. thank you for coming on the show. >> have a seat. >> i talk about you as a stelth technology company. you have new labs in indonesia. what would i see?
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>> we're doing local adaptations for all the flavors they love. >> how do you know? >> how would you know that? i never understood the secret sauce. >> there is a secret sauce and that's understanding consumer insights. all over the world we locally adapt what customers and consumers are looking for. >> is that how you're able to have 7% organic growth from categories that intend to have much less growth. >> they do have less growth. you touched upon technology. we think we have good technology so we're winning a lot of customers briefs and new business opportunities. that's why we're growing faster than the market. >> there's a lot of good research in the company but one of my favorite pieces was a piece where it talks about the fragrance business and they have floral, fresh, wood, our yhow d
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create wood? >> there's a variety of thing wes put into those. things wis like musk are import. we put it all together to come up with what the customer is looking for. >> my kids always liked the celebrity perfumes and i'm trying to figure out, let's say you're katy perry. she clearly wouldn't put her name on something unless she liked it. does a company between you and katy perry offer a lot of flavors of which many of the ideas would be from your shop? >> we do and we work with those celebrities or the designers with the view for coming up with something they're happy with, we're happy with and the customer is happy with. >> how about food? we see a lot of food that we think taste good that aren't good for us. are you able to make food that's really good for us taste better? >> we're able to do that. we have a new formula called flavor fit which is taking the health and wellness trend so you're getting better foods better for you and frankly with
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improved efficacy as well as better health and wellness training. >> are you able to make that natural and organic or is it is something invented and not natural. >> we can do either one. >> you can do either one? >> we can. natural may be something more expensive but we can do both of those synthetically or natural ingredients. >> i want to measure the metrics besides the earnings per share and margin which is are explosive. the new contract wins are a way to think about you guys. >> we have new wins as part of the key part of the business. we look for on going organic growth based on existing business. but providing customer opportunities in health and wellness and improved opportunities like that. they're the foundation for a performan performance. >> i always regard you as the big gun but there are other companies you butt heads with.
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>> there's three or four good competitors that keep us on our toes. we like to think we're a big gun but there's others too. >> there seemed to be a lot of iff. always a great company. always been recommending them from the 80s but there were business that didn't have really great economic profit. i know that you made it your mission to cut that back and that everything should be lucrative. how far along with you in the redo from 2010? >> we have come a long way. your memory is wonderful. we did have a third of the business which wasn't economically profitable. now we're down to about 20% that isn't economically profitable but only 5% is economically disadvantaged and we're looking for opportunities to fix that but it's a journey. >> that's good. we're much further along because the margin expansion and the earnings per share pop was so big here and i'm also curious in times of -- we have been
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featuring natural and organic over and over again. we have been looking at celiac and gmo and from your point of view, is there anything about this that is a fact versus just the consistent we just want high quality food that tastes good? >> we don't look for fads. we're looking for the long-term. we do studies which take us out five or ten years as to what the customers want and consumers want and there's some trends out there but we look for things sustainable like health and wellness which we think is a trend. less fat, less sugar, less salt. all of those we work hard at. >> do you think there's some foods that will be known, i don't want to say if you're involved in, i'm not trying to pick on anybody. i think sugary cereal is on the way out. do you see trends that say look if that business doesn't get less sweet or better for you or promote obesity, that could be a troubling part of the company.
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>> it's the customer who is going to be dictating what we do or don't do. the trends you pointed out, they're on the radar screen but the customer is looking to reformulate. and we are partial to that dialogue with that customer. >> last question. i know from speaking with terry over at macy's, perfume is the biggest margin business in the world. are you like discovering fragrances every day in your lab? >> we are. we are looking for new molecules which create better fragrances every day and we are working on those things which will come into the market and it's every day. >> you are a great science company and i think the merger of science, technology and flavors in fragrances has always been a great business. your stock has been terrific as long as i have known your company. he's the chairman and ceo of iff. this is one of the first stocks i recommended at goldman sachs and i'm glad i did.
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it is time. it is time for the lightning round. what is that about? [ inaudible ] >> you hear this sown and then the lightning round is over. are you ready? time for the lightning round. i'm going with jack in california. jack. >> caller: hey, jim. how is it going. >> all right jack's back. what's up. >> caller: i wanted to ask you about micron technology. >> these stocks remain very big momentum stocks and i still think the supply is tight and
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demand is fine. let's go to michael in pennsylvania. >> caller: i want to know what's happening to consol. they had a big quarter last week. >> i am going -- they have good natural gas. some of these companies have such good natural gas where the wells are so cheap that they can make up for the coal. that why it continues to go higher. i'm not a fan, though. let's two to tim in florida. >> thanks, jim. thanks for taking my car. thanks for the information you provide. >> quite welcome. >> trinity is probably one of the best conference calls of the whole year. it was amazing. a lot of people thought it was peak margins because other companies didn't do well. every time you read about more oil coming through you think trinity. any weakness. >> buy buy buy. >> tom in new jersey. >> caller: how are you doing? >> great. >> caller: thoughts on starbucks.
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>> people think starbucks is going to be like whole foods. i think that's wrong. i don't think the stock is going to go much lower. it's a buy buy buy. she says we have too much consumer. i like starbucks. i want to go to mark in illinois. mark. >> caller: yeah, booyah jim. this is mark from ahome of arlington racetrack. >> that's one great racetrack. what's up [ inaudible ] >> no, your stock is wrong. i want you to sell it. that is what we call in the business a rip off. can't deliver. let's go to jimmy in texas. jimmy. >> caller: booyah from texas, jim. china mobile. great balance sheet. >> i have walked away from it and gotten that wrong. i'm recommending buy and i have to do my work. the thing is exploding after hours. i'm hearing nothing but good
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things from my friend jim stewart that writes that column every saturday in the new york ties. they selected that stock. so maybe add it. i missed that one. let's go to frank in ohio. >> caller: can i get a booyah for johnny football? >> i think you can. i like that defense and josh gordon. that's one of the best things i've never done. >> caller: yeah. a stock you're pretty familiar with. mankind. what do you hi? >> i think they're going to get the approval. the stock is an up stock. sometimes we say that and it just means it's going that way and i don't have a feel -- let's go to dennis in arizona. >> caller: booyah to you and your buddy larry.
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sunny arizona. igt. >> yeah, the problem with international game technology is secular trend away from not a new casinos, online gambling not taking off. wow, what does that mean? i don't think that igt is a good stock. the quarters have been missed and that's a tough judgment but the quarters have been missed. sometimes that's what you have to say. can i go to albert in connecticut, please? albert. >> caller: booyah from the national championship to the world. >> true. >> caller: i'd like to know your take on bristol myers. >> it's an anticancer company with high growth. i think it's terrific. i say they're going to be the fastest large pharma company. let's go to al in florida. >> caller: from pearl ridge in
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fort lauderdale. >> excellent. >> caller: i was watching squawk on the street last week. unless i misunderstood. i thought you said it was over by coca-cola. >> i didn't think they were going to come in. but what i really mean is you made all of this money in green mountain. why do we have to stick around. maybe there will be more but sometimes you have to take the money and run. that's a little upside i left on the table. sometimes a little upside left on the table for the other guy doesn't bother me. hope to see you at barnes & noble after this show at union square manhattan and that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. ♪
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you think i seamstressed when i am up here hollaring like a mad man every day? he has a new book out about the financial crisis. called stress test. i'm heading out after the show to talk to him about the book at barnes & noble in union square manhattan. catch the live stream on cnb.com. all of this talk about the financial crisis reminds me why i do this show every night. to help you make the most of your money. no matter what is going on in the market. let's get to my fav game. i haven't played this one in ages. call or tweet me at jim cramer. maybe you need to mix it up a little. maybe we start at a tweet from jim cramer. booyah jim. am i diversified. apple, facebook, and talisman
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energy. all right. well, no. no, we're not here and that's because you have three techs. okay? and i feel like broadcom is a no no. what we're going to do is we're going to keep facebook. we're going to sell apple. it's had a big run. both of these are owned by my charitable trust. you know what, you need health care. i always default at bristol-myers and a diversified industrial so let's pick up general electric which say company i used to work for and make those changes and i'll feel. let's go to patrick in north carolina. what's going on. >> caller: nothing much. five stocks. disney, dt, johnson & johnson, chevron and underarmour, hoping for help.
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>> patrick has himself a portfolio that four out of five. there's like a four of a kind and fifth card that's fifth of a kind. you can't have bp and chevron. because chevron is all the way up to 126 we'll sell the chevron and keep the bp oil. we'll get disney which is terrific. that below 80, we have to pull the trigger. johnson & johnson long holding game terrific. underarmour, we step back and what does this portfolio need? a diversified industrial. let's default and do the general electric. let's go to dick in florida, how are you? >> caller: this is dick in naple's florida. >> my buddy is down there probably fishing right now. >> the fish as good good. anyway my stocks are am, dng, general electric, planes all
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american and gild. >> i'm doing nothing. this is perfect. general electric, real good yield. really good. fabulous texas pipes. gilead that stock was down to 72 or 73. procter & gamble and apple. you get the good yield. they do a lot of good things. i tossed in another one because i kept facebook but apple is selling at 13 times earnings. nobody got hurt with 13 times earnings with a great balance sheet and good dividend. and that is the conclusion of am i diversified? we're moving our company to new york state.
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>> there's a lot of con pugs when interest rates go down like they did today. plenty of people will say it's got to be a recession. they were selling the industrial stocks and people say i've got to sell the bank stocks because they don't make nearly as much as they should when interest rates go down. still other people go i'm going to go by bond equivalent stocks like utilities and those go up. what are these people doing? just flailing around. buy good quality stocks that come down because people are confused and think we're about to go into recession. after the bell tonight, cisco, a stock doing poorly as of late finally lowered expectations to
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the point where they blew them away. do you think all the technology stocks go down tomorrow because of bonds? no. tomorrow is a new day. i'm tired of people taking the queue. doesn't work like >> all: cheers. tonight on the profit, amazing grapes is a wine bar and retail shop, the brainchild of a real estate developer who seems more interested in sipping than selling. this is ridiculous. even with more than $3.5 million in sales this past year, amazing grapes is operating at a loss and still can't pay down their mounting debt. this is a business without leadership or direction. i wish that you had passion for the business. you wouldn't be losing money. if i can't find somebody from within to take over amazing grapes and manage its assets, this business will be crushed. >> are you the grim reaper, or-- >> sometimes. my name is marcus lemonis, and i fix failing businesses. >> we're out of business. >> we were out of business before, we just didn't know it. i make tough

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