tv Mad Money CNBC June 4, 2014 6:00pm-7:01pm EDT
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>> karen. >> long valeant. >> delta airlines. >> i'm mess lisa lee. "mad money" with jim cramer starts rite now. 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. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. over people want to make friends, i'm trying to make you money. my job is not just to entertain, but to coach you and teach you. call me and tweet me @jim cramer. disbelief. that's often been the hallmark of a really powerful bull market like this one. disbelief in the power of the
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rally. disbelief in the prices where stocks are trading. and the moves that they have made. moves like today. dow gained 15 points. s&p advanced 019%. and nasdaq claimed 0.4%. the best percentage gain since august of last year. i think that this disbelief issue is the subtle undercurrent that accompanies so much of what's happening in the market lately. people -- they don't believe. they don't believe we can keep rallying like this. without better job growth. after all, here's the subtext. how can the averages be making all-time highs when employment is still so much weaker than it was before the recession hit? that thinking is the reason why so many people are so mistrustful if not scared an frightened of this move. but there's a problem with this logic. there's a problem with the idea that there's a positive correlation between job growth
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and stock prices. in reality as i'll explain, there is a correlation. but bizarrely it's an inverse one. yes, less job growth can actually be good for the stock market. we're not heartless here. listen to me. fewer people -- the fewer people companies hire, the greater their profits will be. and it's profits that drive stock prices, not hiring. it's really that simple. look, karl marx -- i don't like to quote him that often because he's a little discredited, but he may wrong about a lot of things, but he was right. what's good for capital is often bad for labor. take the readings on the job growth we got. paychex yesterday. adp today. both showed sub par hiring for the previous month. we know this isn't good news for the country. we want more people to do well. which usually means more wealth created and theoretically higher prices in the stock market.
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so we disbelieve the staying power of any stock rally. but is this a rational reaction? or an emotional one? you know what i'm beginning to think an emotional one. the more jobs to hire, it's plain bogus, here's why. most of the positive earnings surprises come from companies making more per each earnings of sales. it comes from beating the expectations. many companies have been beating expectations by firing. not hiring. >> house of pleasure. >> others are doing it by using technology better. still others are figuring out ways to pay smaller taxes. take walgreens. they jumped three bucks today.
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why? not because they're hiring a bunch of people to exxon band their staffs. no, we got chatter they're changing the company where its domicile to one with a lower corporate tax rate. and yep, walgreens roared. by the way, medtronics also roared. smith and neveren roared. foreign domicile taxes. how about domino's pizza? here is a stock starting to move. been big laggard. what's the key to domino's growth, hiring? no. technology which allows a franchise to have fewer workers because the on line ordering system means you don't need people to answer the phone. the fewer workers, the more profits. cheap technology that replaces expensive people. i know it's tough sledding of late for the software, as a disservice to stocks but you have to understand that the vast majority of the companies exist to help other enterprises save money. how do they do that? by allowing their clients to either not hire new people or actually fire non-revenue
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producers. bring in salesforce.com to get more productivity out of your salesforce. you bring in more -- to rationalize the finance department, meaning to trim. you hire trinet rather than hiring expensive experts. like concur technologies, i like it so much because it allows you to keep track of your expenses so easily on your handheld, but it means you don't need an assistant to keep expenses of your expenses. you don't even need a travel department anymore at enterprise. they work wonders for the bottom line by allowing the clients to fire people without hurting profitability. look at alcoa. why do you think it's doubled in the past year. think it's part on the ceo, and i think the biggest reason is that alcoa's closing its high cost plants. bringing down the cost of the
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aluminum it makes. a high cost plant is an inefficient plant. and it's -- well, it's also often a plant with employees who just gotten too expensive. and you know what happens these days to too expensive employees. take union pacific. the other day we did a piece with railroad ceo jack kor less i can, they expedite trains in the southwest. why there? more business in new mexico? because union pacific wants to process more trains bringing in goods made in mexico in the west coast. our government made a trade deal with mexico, nafta. that's been terrific for mexico. it's been the opposite for us though. in fact, the national part of the globalization is good for -- it's real good for corporate profits. bad for hiring. to me, globalization is code now for trade deals that allow companies with low cost workforces in polluting companies to dump their goods on
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our market. the dirty truth it's good for the companies that move overseas, does nothing to help create jobs here. finally there's the regulation is bad for business canard. believe me it's a -- as a small business man, i can tell you that regulation is fabulous. for big business. that's because small businesses can't afford to deal with the regulatory thicket. in short, regulation protects big business from competition. and the same goes for obamacare. as my friend and writing partner reminds me, the big companies can easily handle the affordable care act but the smaller firms that might one day challenge the big dogs they get hammered by it. fortunately this dynamic may be bad for capitalism. but terrific for the publicly held companies in your portfolio. now, here's the coup de gras. think back to our interview with the credit card maker earlier this week. remember how its stock got
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creamed when it reported last, guess what the real crime was? it hired 1,000 people. that's right, ads took the strange but true course of hiring people and the stock got hammered. isn't that the whole conundrum? there's no linkage between a healthy job market and healthy stock market. and i wish the market were a barometer of job creation that's forecasting terrific job growth, but it isn't. it's a barometer of profit, not people. so please, don't be skeptical of this rally. if we see more sub par hiring when the big nonfarm payroll number comes out at 8:30 on friday morning. ashland in alabama? >> caller: booyah from birmingham. i was wondering what are your thoughts on linked in after the cheaper sub scripships?
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>> candidly, i have had to sour on linked in. i write about it on jim cramer at twitter, linked in is a great company, but it's a troubled stock. they're very different things. doubting thomas don't be so skeptical about this rally. right now, it's signaling healthy earnings for the rest of the year. still to come millions get dressed with the brands of pvh, but is it coming apart at the seams? when will they get to strut their stuff? i'll have an exclusive with the ceo. and plus, i'm taking a walk with the ceo and cfo of skechers to see if that fantastic run can continue. don't move. "mad money" has a ton of stuff coming after the break. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter.
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have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. oh my god! look. you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung. beautiful day in baltimore
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what do you to with a high quality company stuck in a tough environment? i'm talking about pvh, the big apparel company behind calvin klein and tommy hilfiger and asod and arrow, speedo. thanks in part to the horribly cold weather this past winter, they have seen the stock shed nearly 4% for the year. although it's rebounded 10% since we last spoke to the ceo, manny chirico. they had a 2% miss and they're talk attack bad weather in first quarter. overly promotional environment. but in this first -- pvh is a second half story and that's when building their brands should pay
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manny chirico, the ceo and welcome. you talked about heightened promotioned activity and margin pressure. are these becoming endemic for pvh? i'm used to having you beat the number fairly consistent. >> i think that's fair. our underlying business is very strong. we came through one of the most challenging quarters we have had to face from the weather point of view. you touched on it in your opening remarks. i think we came through it pretty well. we were able to get -- come in within our guidance range and we're looking at now after that tough environment cleaning out some inventory, both in our pipeline and in our retailer's pipe line. macro environment right now at this moment in time is somewhat more promotional than we have seen in the past. >> are there specific retailers
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that are causing a problem for you? >> well, i think you see it if you walk the mall, you'll see it at that level. you'll see it at the specialty store level and the department store level. you will see higher promotions. this time last year, we came off one of the strongest first quarters. >> right. >> tight inventories, people were chasing goods. and average retail was much higher at that point in time. right now, we're seeing more pressure. we felt we want to get under the second quarter numbers. as you talked about this is really a second half story. this is the investments we're making in calvin klein, both domestically and internationally we feel really pay back significantly in the second half of the year and now we felt we'd step up and get this behind us. >> april 28th at the consumer conference, you said that you felt that things had been getting better. you say -- you said on -- we saw strong comp store growth. you talked about the idea that it looked like that things were
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getting better. in the last month, was may just very tough for you guys? >> no not at all. in fact the trends that we saw in april have continued into may. the toughest part has been the first two months of the year when you miss your sales estimates. at that point in time, as inventories build, not only in our pipeline, but with the macro retail environment, we're just dealing with a more promotion environment. our inventory is 1% to 2% higher than we'd like to see, but we'll work through it in the next two weeks, clear the goods for the new -- it's critical to make sure our retail floors both where we're running and direct our stores and in our department store channel is clean as those new calvin klein jeans, underwear products, hits the -- for the second half. >> great. and you make it very clear, there are two stories. the second half story for calvin klein, you're making bold projections that things will come around.
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now, you also talk about italy and spain. italy being a problem. don't -- does italy have to improve to be able to hit the numbers? >> no, we're not counting on a major turn in europe particularly in southern europe. what i would say there is the italian market continues to be tough. it's the one market that is tough and it's a big calvin klein market. but i would tell you spain is starting to level of and as we're looking into fall, holiday season our auto book in spain for both tommy and calvin is actually up year over year. so, you know, compared to four years ago the business is down, but we think we're seeing a leveling off, but northern and central europe is strong for us. >> when will the conversation be much more about asia? because we're starting to get -- tiffany had good numbers. we're seeing some companies really starting to pick up in asia. that are in apparel, in accessories. kors okay, but when is it going to be tommy and more importantly
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calvin's time in asia? >> you know, our asia business, our business was good -- >> it's good. >> good in the first quarter. i think -- i think that market is going to be a mid single digit to low double digit kind of growth. >> okay. >> the years of 20, 25% growth and driven by china i think that's behind us. you really need to get operating efficiencies as well as grow the top line as we go back -- forward. >> pay pack the debt, still in there. >> that's right. i think for us the critical issue is really as we get to second half, as we anniversary these investments, get them behind us, particularly fourth quarter we start to really think we start to pick up momentum and start to get the pay back on those investments as we go forward. second half for us is being planned from the earnings point of view, 20%. there's not heroic numbers in there. we need to just get our business back. anniversary those significant expense increases we have had in order to solidify the business.
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i think we're in a good position to that. >> excellent. that's manny chirico, manager and ceo of pvh. "mad money" is back after the break. coming up -- off to the races from the boston marathon's fasts he man to triple crown contender, skechers is teaming up with performers that go the distance and the stock has galloped to a nearly 40% gain this year. can it keep its stride? cramer is taking a lap with the ceo. passion...
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after being bent, spindled, mutilated and down right destroyed for months, down for the count, have the biotechs finally begun to rebound? last week the bruised and battered biotech stocks started to climb again. got me thinking, i have to wonder if this group which went from being one of the most beloved sectors out there to one of the most hated in the blink of an eye. three months ago, has once again turned on a dime and started to come back in vogue in our wall street fashion show tonight we're going off the charts to answer that question with the help of ed ponsy from bar chet
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that, and look at the ishares of the etf, this is the one that everyone calls, called the ibb. during the first couple months, the ibb roared higher. it was fabulous. that was when biotech was among the hottest groups out. there thanks to the dramatic oversupply of stocks caused by the biotech ipos, the biotech etf tops out in late february -- we said at the top, and this index which mirrors the whole group ultimately crashes. i don't think that's too strong a word, 19% from peak to trough. and 19% decline in the entire sector over a period of weeks, my definition of crash. but after ibb hit the low point in april, the biotech etf quickly rebounded a bit and then spent the next two months in a consolidation phase trading sideways.
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what caught his attention here last week the ibb quietly, no one talked about this that i saw, broke out above the 50-day moving average. that's measure of the etf's short term trajectory for the first time since march when it had plummeted below the line. and not only that, but he pointed out that the biotech etf broke out in a symmetrical triangle that had been trapping it and breaking out is regarded as a bullish sign among chartists. so you have above the -- above 50, but two, the breakout of the triangle. these are both monumentally positive signal. it indicates that they're finally turning the quarter, including some beleaguered one like cramer favorite, celgene. when celgene got slammed and oh, man, during the big biotech sell-off it made a 38.2%
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fibonacci retracement of the gigantic rally from 2012 through january of 2014. now, you've got to remember this fellow, leonardo fibonacci he was a medieval godfather of mathematics. he discovered a series of ratios that repeat over and over. he finals the ratios often appear in the stock market and we become believers in the fib. when celgene, when the stock bottomed that's fibonacci in action. right there is where it should have bottomed. since then, secelgene is rebounding. get this, he believes this rebound is only just beginning. why? down here, look at the moving
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average convergence divergence. we call that the mac d. technicians often use to predict the direction of the stock's trajectory in "get rich carefully." it made a bullish crossover. that's where the black line crosses above the blue one and for chartists like ponsy he says it's time to buy buy buy. unlike the smaller biotechs, celgene was never that expensive to begin with and now it's darn cheap. trading at just 16 times next year's -- a bio tech. 25% long term growth rate. i like this. so celgene is looking good. all right, how about another one that we like? regeneron? another big biotech. like celgene is one of the four horseman of the big pharma apock lips in "get rich carefully." do i have enough things on the fingers to interest you? okay.
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he notes -- ponsy notes that regeneron also got slammed. this fell off 20%. you know, if we blew this up, it would look like -- all right? and although given how hard the stock has been rallying going into the peak, you know notice that the pull back barely registers. this is like a blip in the long march higher. he pointed out that it bottomed when the stock tested the bullish trend line that goes all the way back to 2012. these things kind of work out on the chart. the same regeneron ran up the strong store support at at the 274 level, it held that level. when it was down there, i was told that it was okay, even though the fundamentalists told me it was over. now it's rebounded back and crucially for ponsy it looks like it's about to flash the same bullish crossover like celgene. when that happens regeneron will be headed much higher.
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oh, man, let's look at one that's left for dead. smaller biotech. totally hammered. i'm talking about pharmaceuticals which clearly flew away too close to the sun. a developer of orphan drugs with a powerful technology, that can alter the rna in order to treat rare genetic diseases. you can see this stock has been more than cut in half. this is -- i mean, who could handle that pain? ponsy believes they're ready to bounce back. over the course of the last month, they made a double bottom. no jokes, please. that ended with a nice little rebound. the key here for him, this isis has pulled back since the end of that double bottom. how can a pull back be positive? one word -- volume. okay? volume. technicians use volume like a polygraph. it can tell you if a move is for real or lying.
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he likes that it did so at high volume. this recent pull back over the last few days has been done on low volume. light volume. which he says that that means that the buyers in isis are more committed than the sellers. i like to say the buyers are still in control. here's the bottom line. not only does ponsy's chart indicate it isn't over, but the monster sell-off year has created terrific buying opportunities. despite the big move in celgene, regeneron and isis, you know what? i think he's dead right. why don't we start with calls. mike in pennsylvania. mike, mike, mike. >> caller: booyah from lansdale, p.a. >> coach mcdermott is from there. >> caller: that's right. >> he got fired from the eagles,
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he's actually pretty good. >> caller: i feel ike i'm in the house of pain since i bought exld. >> it's a how was pain. it's a smaller biotech. you know what? i'm never go -- when you go to the track and get a $3 lottery ticket, let it ride. this is what i call rip up in the business. save it. don't sell it. you know, anything good happens you can get a run here. all right, it's all about pain management. >> the house of pain. >> biotechs have been under the weather for some while, but, you know, according to the charts that could be over. use the sell-off to remedy your portfolio. i say consider celgene. buy buy buy. regeneron and isis. still ahead, are these boots made for galloping? skechers announced a deal to sponsor california chrome. can you imagine that horse walking in skechers? no, it's just a sponsorship. is it time to get in the race with the stock? i'm taking a tour of the new
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when we arrived at our hotel in new york, the porter was so incredibly careful careless with our bags. and the room they gave us, it was beautiful. a broom closet. but the best part, / worst part, was the shower. my wife drying herself with the egyptian cotton towels, shower curtain defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. with millions of reviews, a visit to tripadvisor makes any destination better.
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in an environment where retail is becoming incredibly inconsistent with some companies doing spectacularly, others doing horribly, i think we need to look at the one of the hottest brands out there. a company totally nailing it -- skechers. skx for you home gamers. the stock has doubled over the last 12 months, up 39% just this year to date. in part, because they blew awhat the numbers when it reported at the end of april. this is an incredible story. a few years ago, skechers brand was horribly tarnished when the ftc overly sanctioned them, but now they're the reigning king of footwear. they're brilliant at marketing. yesterday we learned that the company sponsoring california chrome, the horse that could be the first triple crown winner in 36 years if it scores a victory at belmont stakes on saturday. what a terrific way to connect with a different or older tell graphic. they have hooked one the boston
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marathon winner to mark cuban. this is looking like a very long term growth story which is why i was thrilled to be able to check in with robert greenberg, the chairman and ceo of skechers as well as the cfo and coo. take a look. gentlemen, you have the hottest shoe in the world and the hottest stock in the shoe business. how is this happening at a time when the consumer is supposed to be so strapped? >> well, sneakers are probably the hardest item people wear these days and the yoga pant for the women is a rage. with that, you have to have sneakers. and that is what's going on in the whole shoe business. no fashion rage right now. it's casual lifestyle, casual living. comfortable. athletic footwear in the colors they come in these days with materials are just the yummiest things in the world. >> you have said words that i have not heard from any other merchant. you're saying you don't have enough inventory. you can raise price. it's the equivalent of not being
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able to keep a product on the shelves. again, i'm not hearing that from any other retailer. this is about also making big money for shareholders. >> absolutely. it's not that we don't have enough inventory. we have enough inventory for what our customers told us they needed and they need more. so it continues to sell through. >> now you guys have been excellent marketers and one of the ways is you have picked spokes people who are quite different from who i have seen. you're not trying lebron and you're not going after the hottest necessarily current football player, joe montana. you're not going after a big name athlete, mark cuban. how did you come one this formula? how did you get cuban? >> well, first, it started with the product. we developed a new footwear called relax fit and it's wider in the front, but the same width in the back. unlike wide shoes and as you get
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older, your toes will spread out and your arches will drop and you become aware of your feet. then we have to use people that are a little older and he ran into mark cuban -- >> in the men's room at the movie theater and he was wearing skechers. >> he had them on? >> we had known he had worn them, he had shown it in the magazines. we thought he was a great spokesperson. he's trusted. you have had him on the show. very straight and very honest. only will do what he thinks is right. so he obviously enjoyed the shoes and it comes through. >> but you have winners -- current winners. i know you got behind him, never expecting him to -- the american winning the boston marathon or maybe you like long shots and then you have california chrome. not wearing sneakers obviously wearing horseshoes but the publicity is brilliant. >> yeah. well, we started off with a dog. when we launched the performance division in skechers we had a super bowl commercial where we
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had a french bulldog running a greyhound race. we went from the dog to the thorough bred. >> you had a year where you had a big hit to earnings because of the investigation. how are you able to turn around so quickly? it was one year bad, and then the next year fabulous. >> well, we're building product and we have always protected -- had a strong balance sheet to protect the downside. we know we can build product. what happened with shape-ups i believe was an anomaly. it wouldn't happen again. it was overwhelming to the company but the company now is significantly larger. both in geography and product offerings. so we have levelled it out and gone to the next level. >> let's talk geography. the rage is to be international. we know nike has a huge chinese business. you have started from scratch but it's rapidly building. >> building very nicely. we anticipate it will be half the business in the next three or four years. it's starting to get critical mass everywhere. even where there's -- unless there's political issues like venezuela and columbia are
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difficult. which is why we thought it would take longer to get going. everywhere outside of there is growing dramatically. at least as fast naz the united states or faster. >> we have been in the international business since we started the company 20 years ago. >> now, the industry has historically been very difficult. reebok the hottest and then gets bought by adidas, the business cut in half. l.a. gear, zero to 100 in lightning speed and then new management, you're not there, justice appears. deckers, one year it's the hottest. and oprah loves it. the next year you can't get rid of it. have you guys solved the boom/bust problem for sneakers? >> well, for just footwear in total because we have 16 different divisions. we have a huge children's business. we have -- we're the only company in the industry that has brown shoes and sneakers. we make both. most companies only specialize in one or the other. like jeans manufacturers don't make pants. pants manufacturers don't make
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jeans, so we do both. we have a thousand stores around the world. and i'm sure that most viewers have seen our stores and they're full of every kind of footwear you can imagine. except high fashion we don't do high fashion. we do a style, we hope it lasts two years. >> carl i can't anil what says ask them about the lights. right now the light -- it's kids who have seized on this. why? >> they like little red wagons. every kid has to have one. i launched the first lights at l.a. gear back in '80s. >> that was a great idea. i remember how excited. >> every kid in the world loved them. they still look great. we have a new light that has a flash light on the front of it. lights get better now. we have one new shoe with 34 lights in each pair. >> you recently talked at the city conference and someone asked you about promotion.
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because we keep hearing from every retailer, it's a promotional environment. you said something that most retailers would not say which is we don't do that. >> yeah. we're not promotional at all. we don't promote in our stores significantly. we don't compete against the wholesale business. so it's about developing product and creating demand. >> when i went through your show rooms, multiple show rooms, it donned on me under armour wants to take on nike. adidas. i don't hear the take on nike thing from you guys. >> i just hope to god nike continues on their great quest and paves the path because they -- they're a religion to kids. they come up with new technologies. they are the quintessential company in this business and they set the pace. >> but they also charge a fortune and i saw pricing here that made me feel like the
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consumer isn't doing that fabulous. >> i hope they keep doing that well, $140 a pair and we have the same footwear for $80, big difference. >> now tell me about how you decided to do the california chrome? because it is such an anomaly and the first reaction that people say is, oh, come on, a horse. but this was a master stroke of publicity. >> why you wouldn't you do it? >> well, because horses don't wear skechers. >> it's like a billboard in the stadium, only this one is going to be seen by a billion people. >> now, you know, when kim kardashian to pete rose, you went hot to joe montana and joe montana is my era. he's my era. i mean, you guys are trying to appeal to both baby boomers and to children? >> of course. all. >> well, when i go to -- when i go to buy sneakers i feel like i have to be the greatest athlete in the world to buy them. i no longer feel like i have to do that if i buy skechers. >> we're in the lifestyle side
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more than so than the performance side. we have been in athletic footwear since we started the company. >> okay. now, rebook at a certain point felt that they could not resist a $3.8 billion bid. your company is rather small in a market cap. is the idea you gentlemen are older or as old as i am, is the idea that maybe at a certain point if adidas comes knocking it is time? >> that's all i think about is building the perfect company. if i do sell it it's a perfect package but no intention to sell it. >> did you get down to the fdc, you see the release they say they can claim some money, you fired your trainer because you believed you don't need them, is there a moment you said i don't need this? >> no, the reason it's difficult for him to sell, like now it's a great time and when things are
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tough, he feels challenged and he won't leave it that way. never a good time. >> what's next? is it going to be china? is that where the emphasis is? that's where plank tells me he wants to go with under armour. nike is a dominant force in china. is that next? >> it's now. i don't know that it's next. it is growing dramatically. i think all our international business. we're trying to grow the business everywhere. we'll continue to open more subsidiary, convert some of the distributors. but we think big growth opportunity all over the world. >> the world is one market today. everybody looks the same. used to be you get off the plane in the country and they dress different. >> right. >> 30 years ago, 20 years ago, now you get off the plane you don't know where you are. everyone has jeans and sneakers on. it's just one world. >> america kind of won in that sense. >> we did. >> that's robert greenberg, founder, chairman and ceo with david weinberg, cfo and coo of skechers. (vo) watching. waiting.
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over. are you ready, skee-daddy? time for the lighting round. gary in maryland. gary. >> caller: hey, this is gary calling for you, a quick shout-out to mr. mark. i have a quick question about exxon. what do you think about it? >> exxon is fine. i do prefer chevron to exxon. it's cheaper. jim in michigan. jim? >> caller: hi, jim. jim from dearborn, michigan, hometown of henry ford. >> yeah, i didn't like that ford number -- in latin america. but i think ford is okay. what's up? >> caller: i would like know about ccj uranium -- >> no, their time has come. sell sell sell. stan the man. >> caller: hey, jim, i'm a big investor in kinder morgan partners. i love the dividends but the stock price seems to have crapped out -- >> no, they have -- i think rich
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is terrific, but some -- i think the stock is coming back. i urge patience here, but i do wish they could give us more growth. i do worry that they have gotten too big to continue to grow the way i would like them to. got to put it out there. alex in mississippi. alex? >> caller: yeah, hey, jim. >> hey, alex. >> caller: i had a question about southern company. the georgia plant is being built, how do you think this will affect the stock? >> southern is a good solid dividend payer. it's why i like southern. let's go to zachary in new york. >> caller: yeah, jim, booyah. my question is about under armour. what are your thoughts? >> i like kevin plank, i'm glad to see the stock starting to move. that trifecta is great. i think under armour goes higher. philip in massachusetts. >> caller: hi, jim. i want know what's the stir on whole foods? >> there's guys in that segment
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coming out of the wood work. we have guys in -- we have the target's, the costco, whole foods, we've got too many players. it's killing everybody's margins. let's go to becky in florida. becky? >> caller: hi, jim cramer. i have a question about nhg -- marine harvest, it's selling for 1208 rooight now, it's due to p a dividend of 84 cents. >> boy, i tell you, marine harvest escapes me. i do not know it. what can i say? let's take one more call. let's go to ed in massachusetts. >> caller: hi, thank you for taking my call. i watch your show all the time. i have domestic oil and gas i know you like that. pipe lines you said you liked that last night.
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ipos not so much. my stock is enable midstream partners. >> you know, i have to tell you, i'm going to see your enable midstream partners and suggest you go to access midstream partners. mike stice is who you want to invest with. he's got the growth. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. you know how i feel about making friends, i could care less. but family is a different story. >> on june 13th, we're celebrating the seventh annual special, "mad money." it's a family affair. >> gather around the tv. >> if you want to join cramer in studio for the special event, head to madmoney.cnbc.com to sign up for free tickets. >> a family that invests together stays together. like, r. then expanded? ♪ or their new product tanked? ♪ or not?
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is there anything in retail that's not hit or miss? it's all case by case, moment by moment. i can't blame anyone for wanting to say away from the stocks. the retailers have in many ways gotten too hard. think of the amazingly inconsistent performances, start with walmart. what the heck is going on over there? how many months can you have a sub par number before asking itself, has the chain lost its way? target, used to be a standout player. now the stores like tired.
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we have got the most reliable of the reliables falling. tgx has fallen. we bought some costco for my charitable trust and the weakness engendered in the last quarter, and could there be a more consistent retailer than macy's? they didn't make the number. on the other hand, you could have set your clock on how poorly jc penney was going to do and now we see a return to positive numbers. nordstrom has been weak. now they're strong. dillard's, long considered pathetic has become a positive standout. dillard's for heaven's sake? how come there's a big variation between home depot and lowe's? all aspects are mystifying. with sports apparel selling so well how can dick's sporting goods blowing it real badly? what's the story with gamestop? coach, disastrous. kate spade doing well.
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micha michael kors has been a horse, has it thrown a shoe or a leg? cnbc contributor and writer for the street.com reality check herb greenberg has implied, what happened to toomey? restaurants are the toughest of all. we saw chipotle have terrific top line numbers but can the bottom line regain the luster? apocalyptic pricing for certain. panera bread was so predictable. but have the prices gotten too high for panera and chipotle? is that why applebees and ihop are surprisingly strong? especially when you have a waitress or a waiter serving you. everyone is ready to pounce on any little chin little change. that's why you need to invest in them for multiple years, not trading for multiple hours. frankly any other way of looking
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i'm going back over the charts, i really like this idea of isis, regeneron and celgene. the >> the following is a cnbc original production. [ music ] >> marijuana is the most profitable illegal narcotic. >> this is a huge business. uh, in california alone, it is the number one crop. >> and there's at least 13 gardens within a mile radius of our home. >> thirteen gardens right around your house? >> mmm-hmm. >> yes. >> wow! >> thousands of growers, millions of users, and a market in the billions. >> how much money was coming in to your marijuana smuggling operations every year? >> about 50 million. >> it's a multi-billion dollar business rife with guns, gangs, and plenty of money. i'm trish regan. join me for an unprecedented look inside america's marijuana industry. [ music ]
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