tv Mad Money CNBC May 30, 2014 6:00pm-7:01pm EDT
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>> that was the best "fast money" ever. sierra inputs. looks like our time has expired. i'm melissa lee. thanks for watching. check out the website and see you back here next friday 5:30 p.m. eastern time. have a great weged. my mission is simple. to make you money. i'm here to level the playing feel 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 teach but also to entertain and educate. so call me. is there too much of a yawn
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factor like that? you just wait to see what happens. after a fairly decent day of the dow advancing, the nasdaq climbing 1.3%, i think the prevailing view is that we really do once again for our couple-uppins. after all, sell in may didn't work. how about this, sell in june you funny balloon. needless to say i tire of these moronic mantras that other people keep repeating but i can't shut everybody else up. "mad money" has been about buying in any month when you've got a quality company with cheap stock and selling in any month when the stock gets too expensive versus the fundamentals. that said, next week will be difficult. it could be difficult for the bulls and not the bears. we've got some real extended stocks out there.
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stocks that can cut your heart out. temple of doom style. if they don't blow away the numbers. you saw it happen today. a big data analytics company went splunk, got splunked. huge growth number and then didn't go high enough. that could be an harbinger. what is your game plan. now i don't expect that we get that many in the sweep but it not because i think there will be many bad quarters. there is an absence that makes it difficult to gainful there are some company worth talking about but first let me tell you how the market works in this earnings vacuum. the trader is looking for something to trade on. given how thin the markets are,
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it's june, weak in may, not a lot of volume. their thrashing will impact all stocks. these pullers of two pieces of data that will spur their judgments and i'm not sure the judgments will be all that pretty. first there's the european central bank decision. widely expected to offer some sort of interest rate cut of some variety on thursday. i don't like this event. i think that far too many people are looking for something really bullish. i don't know if they're going on get it. that could produce some genuine selling. it could be smoldering european economy. then on friday we have the labor department's nonforeign pay roll department. the one that comes out at 8:30. and this could cost us problems. if employment is very strong, we're going on start hearing about wage inflation. we've got some inflationary numbers this week. if the economy is weak we'll start hearing about layoffs
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again. as we go up, the interest rate is going down. i don't like going into a big number like this one without knowing what exactly will trigger selling. because whatever it is will most likely inspire something that i think is going to go wrong. understand that any gains from earlier in the week can be undone by friday's job report. in other words, half the people will be unhappy with this number and they can sell. speaking of jobs, the am worldwide developer's conference kicks off on monday. i think it will be as upbeat as the last one. you might think i mean steve jobs. wrong. i'm thinking of the nearly 300,000 ios app economy jobs that have been created in a few years time. apple is a small business job creator, courtesy of the app store. these jobs not funded by the federal government. think of the app store thinking of a giant mall with lots of stores selling goods.
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this is about those who want to be cyber retailers. they complained about the hardware and software. it should create a buoyant environment for tech. remember apple stock has been a straight up trajectory. it wouldn't surprise me. when they don't see a car that runs on water or a it that aer chip embedded into your brain that allows you to think a little more like einstein and write like mozart. what else is on the docket? we get results from dollar general. i like this segment vex. my favorite is indeed dollar tree. we have what is known as a bar bell economy. the dollar stores and the ritzy high end places like tiffany's and nordstrom have been outperforming for months. i look at the action in today's market with target and walmart. wow! needing the retail and giving job creations getting some traction. i think we'll find that friday and we've had some very strong economic readings like the purchaser manager report. i wonder why people are not
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starting to abandon the dollar stocks. and flocking to the mass merchants that have done nothing of late. i reiterate. out on a limb. i believe target has a lot of room to run. when i can buy a quality retailer of which it still is december participate the breach with the 3% yield and a new ceo coming, maybe new broom sweeps, i would rather own target than i would own dg. wednesday we hear from one of my favorite stocks. this is brown foreman. and i think we'll have one more quarter with jack daniels, tennessee leading the way. too sweet for me but i have to tell you, 50% of the population seems to like it. i want to you own this stock. i think it is chronically underestimated by wall street as is the spirits business in general. even though we have a very big shortage of players and it is such a lucrative business.
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a restaurant in brooklyn. i think we will see some strength coming. penny has an amazing am of merchandise. the shirts, the ties. i think the quarter will be just fine. that said it has had a real nice run since the last quarter and my child will be wearing the red shirt to book gains. we do have so many reports from retailers that were disappointing. we had a phenomenal month to take over. pilgrim prayed. tyson for hillshire. the always inquisitive jm smucker reports next thursday. this is really important. because i bet they'll talk about this wave of mergers and acquisitions when they are questioned and i think they're more likely to be a predator than a prey. i want to hear their clues and i can't wait for that call. we get results from sienna thursday. i talk about the winners in my charitable trust. let's talk about a loser.
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we totally round tripped a big gain. it was so bad. someone asked me on twitter if they should own ciena into the quarter. while the stock has come down hard since the last quarter, i think it has become a crap shoot. if you want quick exposure, stick with the big yield, big buyback. cisco. where it is real and palpable and much more staying power. plus i like that i'm the only person who is still liking cisco but i didn't for a long time. there will be a big short squeeze going into this. wait a second. given the war on coal this monday, i don't think you want to be there. if you think there will be a short squeeze, go buy caterpillar. finally zoe's kitchen. i don't care for most restaurants these days. the stocks at least, maybe not the one i own. they've become hit or miss affairs. but zoe's has been trading up
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long term for mediterranean food. i like how strong popeye's acted first quarter. i think zoe's will deliver on the number. here's the bottom line. the jobs report on friday will overshadow anything that precedes it. i want to get through this number and see if we cannot get market from cooling off. there is more room for improvement than satisfaction at the top end of the range. i say be cognizant. not so high as to create a mile sell-off. there's still mental of mistaken inveteran investiga investors. even though it is the dumbest thing i've heard so far in this already very wacky year. why don't we go to jude in new jersey? >> caller: hey, jim. how are you? with the increased dividend on
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john deere stock sprks a better buy than caterpillar? >> no. i think they have better worldwide exposure. i can't get behind deere because they make it so hard to get behind them. they always seem to talk down their stock. i'm tired of it. i think caterpillar is in ascendancy. our country is a big country and you know caterpillar is doing well. jeff in oregon. >> caller: boo-ya. i would like your opinion weyer haeuser. >> i like it. remember, friday's jobs number will loom huge all week. plan accordingly. coming up, biotech is smoking hot but success hangs in the balance. maybe the way to play it is with the guys doing the testing? not the ones who get burned!
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rulette with the drug companies. they can succeed or fail based on a single decision from the fda. why not think about owning an arms supplier of the entire pharmaceutical industry. i'm talking about the letter q. the largest contract research organization. that conducts outsource clinical trials for the drug business. not only are this he the number one but the top dog when it come to running late stage. we know the farm and biotech company spend the lion's share of developments so they can bring them to market. higher than expected revenues that rose 8.4% revenue. meanwhile, 1.27 meaning they literally have more business than they can handle including a $10 billion backlog. hence why they raised their four-year guidance. they had a 15% gain last august.
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i think this could have more room to run. don't take it from me. let's check in with tom pike. find out more about his business and where it's headed. welcome back to "mad money." have a seat. >> i know when you came public i said there's a lot of crazy stuff. i don't like it because they don't have playing power. sometime you want the slow and steady wins the race. you've had a real nice move. >> we've had a good year. i think you went through the numbers. we're excited about it. we're delighted to deliver the new business and in our 50. it is actually 1.28 average over the last six quarters. it is a very strong book to bill. >> i should have said the other guys in the industry do not have that book. you got by far the best. now, tried to get people to understand. what it means. you've got an interest contact with the nfl for injuries surveillance. that might be a good way to get people involved in the story.
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>> it's interesting. we do support clinical trials. clinical development all the way from phase one through phase four. we have world class epidemioligists. what they could is they really focus at trying to look at health care data and trends and make sure they're statistically valid. the nfl has asked to us take a look at their injury data and really monitor it with them. make sure the valid conclusions are being drawn based on the data being put together dhoefl a terrific job trying to monitor their business. >> that would be something that the players association would like, too. i'm sure they don't want to cap the doctors. >> the important thing is the data is accurate and we draw the right conclusions. those are complicated decisions. >> people are saying, well, you have to be really careful. there could be such great drug consolidations. i come back and say i've seen dozens of companies come public. the first thing they do is do research and it is more important to look at those
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future companies than one or two big dogs. >> i think we've seen great funding for biotech. we've had strong funding and it does come into our industry. what they're doing is trying to prove that their drug is effective and they do that through clinical trials. >> at the same time most company can't afford to do it. they have to outsource it. >> that's right. the bioteches are small enough. what they want to do is levlg our resources. so you may recall, we have about 950 medical doctors, 900 phds. we operate in 100 companies. we're in all therapeutic areas so they can come to us and get that stamp of approval. >> i know when you're a business person and you go to the irs or when you're a business person, you go to the s.e.c. they look to see the name brand. they want to be sure you're actually with someone that you trust. when i, if i use quintiles, i
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have to assume it is, at least it is quintiles. >> it is hard to speak for the fda. we do have a good relationship with them. we hosted top statisticians from all the major pharmaceutical firms. our guys facilitated meetings. talked about missing data, high responding populations. these times of issues and the fda was present. and it was really a partner in trying to make sure the industry moves forward. >> did you a secondary and then it went very well. and then you brought 3.3 million shares. it is a very fine outfit. and people were surprised. why was not that part of the secondary? and some something we should worry about? >> we went through the process where we are private equity owned. we're still a controlled company at this point. and essentially, the secondary was very successful for our investors overall. we had a little extra cash in
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the books and we think it is very important to use our cash effectively. we could create a very effective transaction. tpg had a funneled open in 2003. intended for a ten-year life so they didn't have pressure on those shares. we're able to take care of that and create a win for the investors. >> that makes a ton of sense. it is good because -- we have a enough cash to do it. most companies do not. >> recommended right out of the chute because it's got a great business model and it is the leader and it is not that expensive versus where it was when i reynold it in the old days before they did this reconfiguration. coming up, going for the gold. some buy the precious metal while others win it in the olympics games. cramer is sitting down with american gold medalist snow boarder. sage cotsenberg to talk about his historic run in sochi and the fame and foreign that followed.
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sector to a bifurcated prison. there are companies they grew up with. intel, microsoft, oracle, western digital, texas instruments, hewlett-packard, ibm and of course apple. at this very moment, they are keying on old tech as the place to be. my view, after precipitous fall in many of the new tech stocks, there has been a terrific bounce lately. but in the wake of this rebound these new tech stocks, i think they seem stebled. which is part of reason why they got slammed today. meanwhile, they keep ploding along. they have strong fundamental underpin pinnings. in many cases gigantic buybacks. nowhere is it playing out more viscerally than between old tech titan microsoft and new tech pioneer sale force.com.
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integrating the latter company's platform. i say this is shocking because the ceo has often childed microsoft as being the evil empire. but the microsoft of today is a kinder, gentler and more cooperative company. of course, than the old microsoft run by the former ceo steve ballmer. it is no longer winner take all and loser take none. it now guess the most out of its acquisition of exact target which i think is good but not as much as it can be. that's a very fine position. and it allows easy porting between systems is always more of a win between the smaller company than the larger one although it is very clear that microsoft got a lot more cloudy. something they emphasized as being incredibly important in the first conference call. the cloud is distinctly web 2.0.
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it looks like the market's judgment is that new tech has indeed run too much and sales force, after being up in afterhours trading last night has given up those gains and then some. microsoft powered on the backs of this tie-up. i think this says more about the way investors are treating tech stocks than the actual needle moving gains. a lot of that could have more to do with the bizarre nondisappointment disappointment involving splunk. they reported a huge quarter. it is a slow motion decline. splunk shows you in the end, new tech is far more vulnerable than old tech and that's how you get such a hammering. it is why i favor old over new. speaking of old. i don't think the sales
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force.com microsoft partnership could ever have been inked under steve ballmer's old regime. he is a competitor and i believe he viewed the sales force as an enemy that had to be vanquished. i always say at the top of the show, it is not about making friends, it is about money but some friendships like the one i have with steve precede and transcend that mantra. which is why i'm so thrilled after many years of microsoft, steve is buying the l.a. clippers. let's just say that's a nice stem up in ethics. i wish steve and the best luck in steve's new life. and time, congratulate them for engaging cooperation which will be good for both sales force and a now ballmer free microsoft. ben in colorado. >> caller: boo-ya, jim. >> boo-ya. >> caller: i've been watching
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your show since 2006 and had a question about q2 holdings. what do you think? >> you know, this is the kind of stock that i'm worried about. as much as i think they are fine people, i don't want you to, this is not the kind of stock that i can recommend right now. it is the service to the software as a disservice. too risky for me. >> i want to know your thoughts on ibm. it is down a lot. >> i gave up on ibm. i couldn't take with it the last thing with the chinese. they're going to say they're very big in china. every time i cotton up to it i end up getting crushed.
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it has been a big disappointment so far in 2014. i think it will stay that way. what could we learn from the microsoft sales force deal? there's a tug-of-war. it is old versus new. i favor the old. still ahead, many eat their wheaties but a chosen few ever make it on the box. i'm hitting the slopes with sage kotsenburg as he gears one some of the biggest brands in the business.
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branding. even the slow growing brands can have tremendous value. just witness the huge bidding war. the maker of jimmy dean sausages. catapult that 45% higher. in a week? when it comes to brands few are more iconic than wheaties. the breakfast of champions. for professional athletes, get yurg face on the cover of the wheaties box is the height of responsorship of. it is almost an award in and of itself. we're talking to the new face of wheaties. sage kotsenburg, you probably saw the american snow boarder who won in the first ever competition in sochi. sage, welcome to "mad money." good to have you. >> i'm stoked to be here. >> i got to get carl quintanilla send me. this i saw you at the cnbc party and then on the wheaties. this is it.
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this is the one that every athlete wants. >> it is, man. and i brought you a present too. this is pretty sick to have, it is pretty ledge endary. >> sick is bad, right? >> sick is good. >> i don't feel sick right now. i'm down with that word. >> you're so down. well, pretty lediey ledgendary box. >> this is going to sell like mad. i'm going to put this on the 7-eleven shelf, man! >> this is pretty cool. you are a good man. whole grain. i got a whole lot of thing like you. well, look at the similarities. well, not so many similarities. when you see this, do they measure uptick in sales? do they deem that data? or do they look at that stuff? >> yeah, i think they do. i don't really go into that that much. >> just for me being on it is
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such an honor. >> the reason i say, this it is the coolest one that i've seen. i follow the wheaties boxes for years and this is something that bombs. so i think that your sport, how good you are at it. congratulations for winning the gold. you have a hat for monster. and that's a brand. again, that i think is on the ascendance that people are excited about. are you a monster guy? >> i am. i've been, like i've been on them for five years now. before as a kid, skate boarding, amping on it so much. i wanted all the stickers. it is so cool. something i've been hyped on. not a little kid but growing up snow boarding. >> let's go to it. i bet you before go pro
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approached you, you wanted to approach them and say this is it. >> yeah. the funny thing is we had five edits when it came out. we made one of the first go pro edits. we used them every day in the mountain. we grabbed them and start making edits. now i ride for them. >> it must be so easy when you love the product. >> yeah. and all the people love the product, the sports that they represent. that's the thing that makes the whole company excel. the whole brand is in action sports. you can take it anywhere. i brought one with me. just bring it anywhere in your pocket. >> it is cool. >> it's amazing. >> and you can just bring it on the mountain. you can get the craziest photos. and like the p.o.v. stuff we get, a lot of them seeing it. you can make an edit of still cameras that they make from far away. this is so personal. you wear it on your head and it
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is amazing. >> nike. you're involved with them too. >> i've been with them four years. >> another quality company. for one major reason, i'm not going to talk stocks. but i talk business with you. however, it is an aunt believable a semiblag, a diversified portfolio you have. general mills is my absolute favorite cereal brand. and one of the great consumer package of all time. nike is owned by my charitable trust. a fantastic company. go pro will be hot as a pistol and i'm doing a piece right now on monster being perhaps the single best chart. we do these things. single best chart in the book. you are affiliated with four incredible winners. >> it's amazing. it is something that i mean, i love the brands. and fortunately they love me at a. so i think the whole package that we put together, general mills, make the, go pro monster.
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it's amazing. it helps me too. i need the best gear, i need the best. >> i need the best. use them for training purposes. you can strap them everywhere and we use them for training. it is just like the team that we've assembled with is amazing. >> you love it. it wasn't like you went in to make a ton of money. >> it's not the route i picked. >> it is nice that it happened. it is so good to be a part of companies that you love and you want to be part of. you're in the company. it is not like you ride from it. we're testing all the stuff with make the. >> that's great. >> a lot of people see the endorsements and think he doesn't use it, he doesn't care. when i saw your vimeo go pro. if i were go pro i would say i have to get in front of this guy sage. maybe he likes me. because if he does, maybe he can
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make my product better. >> we're the ones using all the products. >> right! >> more than anyone else. the boots, the go pros, the goggles. we use them more than any other person so we know their flaws. we know what's good, we know what to change and not to change. >> if they had it, i would make you the gold medal flower. i would like make you the gold medal flower guy. >> it kind of makes sense. >> you have the gold medal here. >> i do. >> yeah. >> i carry it around in my pocket. >> only thing i'm not crazy about. long term i like is gold. >> i keep it in a sock. >> like a bank for younger people. >> it is. the easiest way to carry around gold. >> like a safety deposit box for younger people. >> it is so crazy. >> that's really cool. >> hey, sochi. i remember when i spoke with
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you, you said it is probably different now than back then. there were a lot of friendly people. >> yeah. >> we were in the hotel lobby every day. we were trying to learn all the russian. all the volunteers were college. >> people are people, right? >> yeah. we were out with them. literally in my phone notes, i have a dictionary. all the directions and everything. >> i have to tell you, you were the real deal. i would kill if i had a company and you liked my product, to have you endorse it. thank you so much. >> thank you so much. >> that was sage kotsenburg, olympic gold medalist and snow board legend and a look alike. is this separated at birth?
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let's to go rusty in florida. rusty! >> caller: hey, jim, a big boo-ya from hot, sunny florida. >> i love florida. what's going on down there, rusty? >> caller: well, it's raining as we speak. we're doing the best we can. i have a question about williams company. >> williams is one of my favorite good year consistent money makers. that's one to be in. i don't promote it enough. it is real good. can we go to steven in new york please? >> caller: can we get a boo-ya for a new yorker? >> of course. boo-ya. >> caller: thanks, buddy. wwe. >> i was right to stay away from this. it is too hard to understand. we don't know what the sign-ups will be. we're staying away until we get more information. don't touch it. eric. >> caller: we want to wish you a big san antonio boo-ya! >> i have to tell you i think that you will take the series, boo-ya. you will take it.
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that's my prediction. >> caller: our stock is gas star -- >> too risky. maybe your son, i don't know, a younger fellow. if you are going to play that, i would rather do magnum hunter. scott in new hampshire. scott? >> caller: hey, jim, long time listener. first time caller. thanks for all your help. >> i'll give you a chip kelly boo-ya. >> caller: my ticker signal is aga. >> the stock has been clobbered. it is doing a good thing. you should start buying it. i say buy some here, buy some down ten. bob in pennsylvania. >> caller: i've been watching the show a long time of great show and great staff. >> thank you. unlike the phillies i try to deliver every night. >> caller: well, your opinion -- >> no. not into minerals. and how about the valet.
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stay away from that. it has good year yield. no. alcoa which is like one down, three up, how about that for a middle trade. let's go to grant in florida. grant? >> caller: cramer, a big boo-ya from tampa, florida. >> what's going on? >> caller: hey, just first i wanted to say thank you to you and your staff for all you. do great show. >> staff's good. thank you. >> caller: mine is acet. >> i don't know why that stock has been so weak. i have to do work on that. it is a good company. i can't just opine. let's to go james in my home state of new jersey. >> caller: much respect. my stock is kgc. it is going through a tough period. >> they all are. silver is worse than gold. i see a breakdown of silver
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here. thank heavens ush not in that. and that, ladies and gentlemen is the conclusion of the -- lightning round! >> the lightning round is sponsored by td ameritrade. listen up, gather your kids around of eating green has more in common than you think. did you see my pictures or not? people love the garden. they love the garden. the funniest question was, it looks like you placed your tomatoes in a maximum security prison. >> "mad money's" of the closing bell, jim cramer has been invited back to follow in the long lineage of honored guests -- honored guests to ring
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the opening bell. [ bell ] >> once consolidation breaks down, it tends to spread like wildfire. that's how you can get not one but two for hillshire brands. a sleemy spinoff from sarah lee. pinnacle foods, sausages and ballpark franks. wish bone salad. will you give me a break? i'm in the supermarket.
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it is ships that carry liquefied gas. as it has aggressively expanded its fleet, last month the company bought three carriers for $468 million. now said it would pick up three more ships at a similar price. they financed the purchases last month. my view? we know there is demand for it. the stock is about the demand for ships that can carry liquefied natural gas. and right now it looks like there may be a glut of shipping capacity here. hence why they pulled back more than 4 points. any kind of shipping business can be very tough when capacity is on the rise. gas log, glog, not for me. next, mark in florida asked about interactive intelligence group which provides technology in cloud based software which
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allows businesses, now the stock has plummeted over 38% from its highs a couple months ago. why is that? software is a disservice to your portfolio. in part because it reported seriously disappointing results right out of the chute. i happened to like what inin is trying to do. they are up 165% in the last quarter. and they have a terrific call center technology. however the stock even after the crash of this thing is still incredibly expensive selling at 128 times the earnings estimates. i'm willing to give them my blessing in speculation. back on i am a 23, sarah in my home state of new jersey called and asked about intg. they make products used in materials, integrity management for the semiconductor industry. things like fluid and gas
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handling come opponents, liquid and gas filters and purifiers. i think this stock makes sense given the potential for increasing spending over the next couple years. i would not be surprised if it catches a takeover bid from a larger semiconductor takeover bid. you know what? i'm a buyer. call me a buyer. splaek i have the? $1.6 billion company. i like it. next on may 21, cyrus in indiana wanted to know about cal amp. symbol camp. this is a tiny company that makes wireless equipment for machine to machine and global research management officials like fleet, echo star. they've been down 32% and even down here, do you know what? not for me. the company operates within a very high level. the stock come down below 17,
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maybe. not at these levels. all right? a lot of these companies, i can't get behind them. let's look at some tweets here. now, rag dog, i need some advice please. which is best for long term growth? bdbd or wwav. plant based foods. it is like plastics in the movie the graduate. next, @i am mike cole. are you at the bar this week per chance? my mother is visiting brooklyn and you are at the top of her list. no, regina will probably be there but me? remember, starting next week, thursday is the new friday. that's probably the night that i may be around. the regina i'm talking about is
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the little reg 18. a there are two in my life. they're both fabulous, okay? but we leave them at the office. another one, any thoughts of the reason for cisco's jump? hey, that merger will be really good. i like for the first time, maybe since the show began, i like both ciscos. this next question, could you get ely in the show? he would be a great interview. we had a battery charger for tesla. i liked driving it. any time you want. dial in. show up. go on a plane -- go on a rocket ship with me.
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i make a lot of purchases for my business. and i get a lot in return with ink plus from chase like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning business even more rewarding. ink from chase. so you can. don't just visit rome. visit tripadvisor rome.
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with millions of reviews, tripadvisor makes any destination better. because you can't beat zero heartburn. woo hoo! [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morning. 24 hours. zero heartburn. we have a nice balance in all these software as a service stocks. nice bounce in the analytic stocks. nice bounce in the big data stocks. now we're bag to the same old
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same old. an intel cisco mark so please be careful in those stocks. like i said, these are still way too highly valued. >> narrator: in this episode of "american greed: the fugitives," victor and natalia wolf come all the way from russia, reeking of success. >> he had very expensive watches. i think his watches were probably $60,000, $70,000. >> narrator: setting up a real-estate business in florida, they sell hundreds of acres of land, but allegedly not all of the land is theirs to sell. >> we're talking about basic stealing of land by forging documents and deeds. >> narrator: they are in business for only two years and they are accused of stealing tens of millions of dollars, and just as their victims begin to catch on, victor and natalia disappear. >> their timing was excellent. they are not stupid. greedy? yes. stupid? no.
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