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tv   Mad Money  CNBC  June 13, 2014 6:00pm-7:01pm EDT

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p expired. watch "fast" for the daily segment. "mad money" starts in just a few seconds. happy father's day. have a great weekend, everybody. 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. you know how i feel about making friends, but family, that's another story. which is why i'm thrilled to have my cramerican family here today. i just want to make everyone money because my job isn't just
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to entertain but to educate. so let's get on with it! [ cheers and applause ] what a tug of war we've got going on right now in this market. on the one hand, we have so much good company news, individual companies, like last night's shockingly great preannouncement from intel. on the other hand, we have the heartbreak of iraq. today was the day where we put iraq on the back burner and accentuated the positive. which is why the dow ended up climbing 42 points, s&p gained .13%. now, understand that while it was terrific to be back picking individual stocks -- >> buy, buy, buy! >> we're still stuck with the catastrophe that is iraq for the foreseeable future. and that means we need to be prepared for a sudden selloff. either as oil prices jump, which always triggers a dip in the
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averages, or as president obama speaks about the issue, that causes the selloff, too. the market does not like uncertainty or indecision. so until we get more clarity where the averages go lower, i have no problem sitting this one out on the sidelines. i'm in no hurry to buy unless we get a bigger dip. i'm not averse to nailing down big profits if you've got them. so what besides this iraq watch do we need to be on the lookout for in next week's game plan? on monday, we get may industrial production numbers, and i think there's still plenty of people out there who believe the economy down shifted last month. i find that hard to believe given the strength in autos, nonresidential construction and, of course, oil and gas. so this number ought to clarify things for us. tuesday, we get a read on the one area of weakness that's actually quite worrisome to me and that's housing. when we learn may housing starts. now, look, the home builders, they have acted terribly. i'd love to see some bounceback,
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but judging by the slowdown in mortgage applications, i don't think we're going to get one. we also get results from bob evans. this is really important trading strategy. the reports on tuesday, the restaurant and packaged food company, and i think the quarter will be not so hot. why am i talking about it? because i think that'll be your chance to buy. because like i told you yesterday, there's an activist investor calling for the company to carve itself up. and i believe it could be a takeover target for the pilgrim's pride, which is one of hillshire brands that rivaled the jimmy dean sausage but ended up with nothing. it's big because we get the federal reserve statement about how the economy's doing. and if anything needs to be done, we'll learn about it during janet yellen's press conference after the meeting. those are always tense. of course, i become adamant we should now pay much less attention to the fed. i'm at odds with many people now, but why do i feel that way?
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because we've been worried endlessly. we've been worried endlessly about what would happen when the federal reserve stopped that bond buying program. however, the bond market's so strong, i think the fed should not only stop their buying but they should start -- >> sell, sell, sell -- >> selling their bonds as rates are low enough that anyone, including the federal reserve should be ringing the bond register. i like the fed's economists, i think they do a good job. but if you want boots on the ground look about how the u.s. and global economy are doing, then you need to listen to fedex when fedex reports wednesday morning. great statement, even better conference call. just like the caterpillar and alcoa calls. i think the statement along with the q & a tell you more about what's going to happen more than any other source i can find. i'm less sanguine about the stock, though. while i think the business is fine and getting better, i do want to be careful of the transports here. again, given that oil might be bubbling higher courtesy of iraq. what else?
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i've been saying the software and service stocks have been trying to put in a bottom of late. there's a better feeling to that part of tech ever since salesforce.com reported three weeks ago. we're going to get another read on the cloud computing space from the always reliable red hat which wasn't that reliable last time around. the group climbing higher as a result of the key cloud play is positive. i think these stocks are too expensive relative to the rest of the market. i prefer the cheaper, older tech names like intel, hewlett-packard. but i know many can't resist these stocks and can't wait to see if they go lower. i'll fully cover red hat. rite aid reports thursday. the last thing we heard from the company was the unpleasant surprise about some issues involving the prices it pays for the drugs it sells. i've liked rite aid for ages since $3. i continue to think it's a buy. but it sure would help if the company gave us a more color about what went wrong because
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the stock still hasn't really found its footing since the negative news broke. if you haven't bought it yet, you wait until the quarter before you pull the trigger? we're going to get results from kroger kr, too. typically in the food space, and i think there's a ton of activity coming, my friend and colleague david faber from "squawk on the street" confirmed same this morning. kroger might comment on the consolidation, and that could get us on the hunt for more takeover names in the supermarket aisles. i also hope kroger can give us a read on organic and natural, on whole foods which has been trying to bottom lately. i need to see a good number from that one before i put my organic and natural weight behind it. we get reports from darden and carmax. the former's important, that's red lobster and olive garden, because an activist is calling iff for the heads of the management team, but attempting to fix itself by dumping off the
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faltering red lobster business. i think there's going to be fireworks. i like to listen to carmax because they give you the read on the best driver review of the economy, the driver industry. by the way, watch alcoa. these days, whenever we hear that auto and truck sales are strong, alcoa runs up as cars and trucks are using more and more aluminum to keep the weight down. once again, aa was one of the biggest gainers in the s&p today. plenty of data to take in next week. but remember, no matter how well the individual companies do, we can see this whole market swoon if the iraq mess gets worse and threatens to send oil prices still higher. that's why, quite frankly, i'm happy to sit on the sidelines until -- until we get a little more clarity. and i'm willing to miss some upside waiting for that to happen. let's take a question. >> boo-yah. >> boo-yah right back at you, young lad. >> we are 10-year-old twins,
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nick and faith ortega from cherry hill, new jersey. >> cherry hill? that's where my grandparents are from. right across the street from the mall. >> we are focused on biotech stocks. >> stay focused. i always say that. stay focused! [ applause ] >> we were wondering if celgene would be a good stock for our long-term stock portfolio. >> that's precisely the way i want to approach this. i think celgene, a lot of people want it to pop. 1.39 to 160. he's a bankable krrk ceo. i think this company could earn $16 a share. in english, what i'm saying is i think there's a strong pipeline, many drugs there, and if you own this thing for the next five years rather than the next five days, you're going to make a ton of money. and i'm going to pay you the highest compliment. you have horse sense.
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[ cheers and applause ] let's take one over here. >> boo-yah, jim. >> boo-yah, chief. >> i'm representing the pope john investment club from sparta, new jersey. >> excellent. excellent! sparta, as we know has bears! you never hear of sparta other than the fact you have bears running around all the time in sparta? is that the deal? >> yes. >> because you know what i think about bears? [ laughter ] >> we were gathering our portfolio together and we wanted to hear your opinion on the stock oracle. >> oracle reports next week. i think oracle's going to do a good job. the reason it's doing well is mark hurd is an extremely competitive guy. yes, larry ellison runs it, but mark hurd's the guy that's done it. i think he's tired of playing second fiddle to the software and service companies. they deliver a good quarter. i'd buy half before and half after. stay long oracle.
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charitable trust owns it. yes? >> boo-yah, jim. >> boo-yah. >> hi, i'm gabrielle from cherry hill, new jersey. >> no one's at the mall, they're all here. >> with obamacare mandate, i see a lot of potential growth in health care providers. i was wondering if you think etna is a good investment. >> i think aetna's a terrific investment. i take your aetna but will see you with cigna. i think it's the cheapest. i hope it goes below 89, it doesn't get there, but aetna's just fine, too. great ideas from all. sure, we got our eyes on important earnings reports and news next week, but the sidelines, you know what, it's fine for me. get a little more clarity. hey, get this, on "mad money" tonight, priceline picked up the check for open table on a big acquisition. i'll clue you in on the secret of success. and two family friendly stocks that could help put your
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kids through college. plus, one of the founding fathers of tech is back to the winning ways. i'll let you know who it is. [ applause ] stay with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. 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. i spent my entire childhood seeing the world in reverse, and i loved every minute of it.
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but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards when you can look forward?
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yeah, citi mobile. pay the dog sitter? and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app.
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chmgs chms [ cheers and applause ] it's all about your phone. that's my take away from the whopper of a deal announced this morning with priceline buying open table for $103 per share. a monster 46% premium to where the stock went out yesterday.
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first off, let me say, they each represent my favorite model. companies based on the convenience of modern day technology. priceline lets you fly and book hotel rooms at the lowest rates. it's a beloved system worldwide with a very cheap stock. in part because americans just don't understand it, and i'm in collu including our analyst community. despite having some of the best growth of any company i follow. when i bought kayak in a deal that closed over a year ago, it got a rating system that allows you to see how a hotel or restaurant is recorded by real users. although, kayak's mainly used for booking hotels and the mobile app is the gold standard in the industry. i've liked open table because ceo matt roberts, a frequent guest on "mad money" has designed a product that's a gift to both the people who use it
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for free and the company's paying restaurant clients. open table is the de facto online restaurant reservation system for the world. the customers love it because they can go out. before they do it, they can check to see what the menu is and see if they like it and get a table online at the time of their choosing. if there's no tables available, they'll go to another restaurant. thanks to open table, you never have to get turned away from a restaurant again and no excuse if you don't like what's on the menu. meanwhile, the restaurant owners love it because it banishes the twin banes of their existence. first, nothing is worse for them than a table left open for the night. something i know very well from my small plate mexican restaurant in brooklyn that doesn't take reservations. an empty table is a deadweight loss, kind of like the
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deadweight loss that an airline has if it can't fill a seat or can't fill a room by the end of the night. that's what priceline does for those two industries. second, i know from danny myer who wrote "setting the table," still one of the best business books i've ever read. that was before the shake shack took off. when you sign up for open table, you have far fewer no-shows. and no-shows hurt, both because you don't get their money, but also because they cause you to turn around potential paying customers who might want to eat at your place, but we're told you were totally booked for the evening. danny on the board of open table says when people make reservations by phone and can't make it, they often just don't cancel. but if you make your reservations with open table, it's easy to cancel without the hassle of calling the place or talking to the manager who is none too happy to learn of the cancellation, which is why so many patrons or nonpatrons are so anxious and don't want to cancel on the phone. they'd rather just let it go.
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plus, according to the company, for every $1 restaurants pay in open table fees, they generate $43 in revenues. that's a sweet ratio. and explains why this business is growing at a 28% clip in north america and a 46% clip internationally. with lots of runway, only 15% of reservations are currently made online. open table is the largest network of its kind, 30,000 restaurants, and that's despite the sluggish worldwide growth in the restaurant industry. who knows what kind of numbers it could put up if the world economy gets stronger. but what's truly exciting about open table is the hand held application. which i think is a major reason why priceline was willing to pay so much for this company. out of nowhere, 41% of the business is done on these twices, which makes a ton of sense because people are emotional when they go out. that could make for terrific seamless app from priceline. lets you book planes, hotels and now restaurants. all after you've looked up what the crowd is saying about each via kayak.
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there's one problem with this $2.6 billion deal that's driven open table stock up $34 or over 48%, the kind of gain you'll never get from bonds or cds. judging by the stock price which is in excess of priceline's $103 bid, someone else wants to buy this company. or maybe multiple someone elses. once again, i've come to the conclusion that the public stock market is misvaluing the true worth of companies to other companies not to investors but other companies in a takeover scenario. just as pilgrim's pride and tyson foods fought over hillshire brands and paid a 73% premium to what the sausage maker was worth before the bidding started. i think it's natural someone like google might come in and try to outbid priceline. why not? not that long ago, google bought zagat. i believe the combination of a
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company that rates restaurants in tandem with the reservation system is a total killer app. and google certainly has the money to make it happen. at the same time, we know yahoo's going to be flush with cash after that ali baba ipo and are selling a big chunk of their stake so they could easily join in the bidding, too. why not? yahoo needs to crack into the mobile business much more aggressively. open table would let them do it. the pin action from this deal also caused yelp to spike nearly 14%. yelp's trying to compete with them, with open table with seat me, which yelp believes is an open table killer. seat me is their cloud-based system that's cheaper, growing like a weed, threatening the monopolistic hold on the industry. if anything, might have made him more eager to sell at this terrific price. i think the open table deal shows us that yelp, which is a company that i adore might be
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more in the driver's seat than people realize. and that restaurants and many other businesses, all these services businesses pay to have ads next to the yelpers, the people that write the reviews. the reviewers cost yelp nothing. i often thought they should merge with grubhub, the delivery system that recently became public to, again, create a seamless app for checking reviews and then getting food delivered. and yes, sorry, that pun was very much intended as grub hub also goes by the name seamless. then the two of them could merge with yahoo where the chairman of yelp sits on the board of directors. however, yelp has no desire to sell, probably no desire to buy grubhub. which could again, be grubhub killers. but the bottom line here is that all of these companies, which happen to be heavily shorted, by the way, by hedge funds are part of the new world where everything is at your fingertips. everywhere you go.
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and as this huge open table premium shows us, all of them are much more valuable than the market thinks they are. stick with cramer! [ applause ] and still to come, ticket to ride? these companies offer plenty of thrills, but only a precious few have what it takes to offer you amusement on wall street. cramer's got the ticket for the tickers that could help your portfolio ride higher for years to come.
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[ cheers and applause ] with the price of oil moving relentlessly higher, and yes, i still believe it could climb another 10 bucks from here because the sectarian civil war in iraq could really put a dent in that country's bountiful production. i think it's time to start looking for opportunities on real weakness from here. yes, starting next week, i'm not talking about companies that actually benefit from rising oil prices. and you know all of those, the oil producers like eog, apache, continental resources. you know i like those so much. i mean stocks that can get slammed as we realize the price at the pump is headed higher but deserve to be bought into any
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further decline. in other words, i think oil's march higher is going to create terrific buying opportunities if you know where to find them. specifically, i'm thinking of the theme park plays. disney, dis, which has a big park business and cedar fair, f.u.n., a terrific play on amusement parks. just perfect for our father's day show because these are great stocks to buy and put away for your kids. they also happen to be stocks that tend to go lower as gas prices go higher. investors worry that fewer people will want to make the more costly drive to the parks, you're probably going to hear next week that the average price at the pump went up some amount and someone's going to get nervous, maybe they downgrade one of these stocks. let's start with disney, somehow become the second most heavily shorted stock, bet against stock in the dow jones industrial average, falling from all-time high of $85.86 on monday down to
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$82.80 today. why? some of it's because disney stock has come down with the rest of the market. but it's actually more than that. whenever the price of gasoline's perceived to be on the rise, people always think that disney's earnings are going to get hurt in the future because its theme park business is supposed to suffer. this kind of trade happens like clockwork. but you know what? every time, every single time it turns out just to be that buying bump in the road. you had to pick some up, not sell it. i think this time will be no different. this time, disney is perhaps the most dominant, diversified entertainment conglomerate in the world with the best management team in the business led by ceo bob iger. somehow it doesn't get enough respect even as it slowly but surely works its way higher over time. let me give you an example, disney reported a phenomenal quarter five weeks ago, but the stock went lower on the news,
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before ultimately bouncing back. and this is a common problem for this company's stock. still, with the recent selloff, disney's less than $2 above where it was when it reported. which means you're practically getting that amazing quarter for free. i think disney makes an ideal core holding. you can own it for the long haul as long as you do the homework. and when it pulls back, say because people are concerned about rising oil prices, you use that weakness to buy more of it, not sell it. the company has a spectacular film business. and i'm not just talking about "frozen" here, they make the great marvel comics movies, but that doesn't stop them from making tons of money. and thanks to disney's $4 billion acquisition of lucas film in 2012. they also own the "star wars" franchise where they're currently filming the first film in a new trilogy that i think is going to be huge whether or not the moves are any good even. and think about that merchandise money from these mega franchises. in the immortal words of mel
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brooks. >> merchandising! merchandising! the real money from the movie is made. >> yeah. of course, disney's a major television broadcaster, own abc, but more important, cable properties, disney channel and espn. remember, sports are the one thing you can't dvr, which makes one of the few channels where people have to watch the commercials. and totally gratuitous reference, adam shepherd is the best reporter i've seen and i've been around. what about the theme park business? won't that be hurt by higher gasoline prices? i think this segment is a lot more resilient than people give it credit for. brent crude, it's been over $100 for ages, yet disney's parks and resorts division still put up impressive numbers when it reported a month ago. sales rising 6%, operating
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profit up 19%. and that number would have been up if easter hadn't come later than usual this year after the quarter ended. so i'm really not all that worried about disney's theme parks, especially with the shanghai location scheduled to open late next year. i'm very bullish on that. now, disney trades at 18 times next year's earnings, but 16% long-term growth rate. at these levels, i think the stock will be a steal. it'll only get cheaper if it ends up going lower. and we must -- i will be pushing this one hard if it ever gets below 80, and i don't know if it will. but if for some reason disney's not to your liking, how about putting cedar fair on your shopping list. cedar fair, f.u.n., owns and operates 11 amusement parks, four water parks all across america. wild water kingdom in pennsylvania. right now only about three points off the high. and in truth, i could see this stock selling off if oil keeps creeping higher. the whole point is that the parks represent a cheaper vacation option for more value
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conscious consumers who don't want to fork over a lot of money to fly somewhere. the regional parks are within driving distance of a whole host of well populated metro areas. so, yes, a spike in gas could, indeed, hurt attendance. but if that happens and the stock gets hit, another terrific buy. my reasoning, simple. cedar fair is all about the dividend! this company is a master limited partnership and one that yields a staggering 1.5%. cedar fair is expected to raise the payout to $3.50 next year, which would give it a 6.7% yield if the stock price stays where it is at the moment. if cedar fair gets hit by the rise in oil prices, its yield will increase as the share price goes down. that's how it works. i think that should help cushion the blow. and more important, make it a more attractive buy. nothing's better than buying a higher yielding stock. here's the bottom line, with all the chaos in iraq driving up the price of oil. i think disney and cedar fair could be put on sale next week.
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these are two terrific family-friendly stocks. disney is one of the most underappreciated growth stories out there and cedar fair has the notoriously b.i.g. yield. i like both of these great american companies, precisely the kinds of stocks you need to own if we get knocked down because of still one more temporary spike in the price of gasoline. let's take some questions. >> hey, boo-yah, jim. >> boo-yah. >> hugh and jillian from new jersey. jim, my parents taught me the importance of saving. and with your help, i'm teaching my family the importance of investing. and it's a big difference. one father to another, thank you for all -- >> of course. no, a thrill. thank you very much. thank you. thank you. >> jillian has a question for you. >> so a lot of my friends have little sisters that shop at a store called justice, and i was wondering if it would be a good investment. >> i'm torn on that one. spotty, good quarter, bad quarter, good quarter, bad quarter. and that's why i've pulled back on recommending a lot of retail
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stocks. i feel that there's some that are still good. i'm not going to say that one is the one i'd want to be in. the one my charitable trust owns, the one i have faith in is not an apparel company it's costco. that's my recommendation. not acena. >> boo-yah, jim. rob, this is my wife, and my son and my daurp ashley. we're from staten island. >> thank you for coming. >> thank you for your action alert, through your books. >> thank you. thank you very much. >> with the airline connectivity battles playing out in the marketplace, it's been a couple of months since you've opined on gogo. is it a great growth stock? takeover potential? >> they're having an analyst meeting next week, gogo. what they really have to do is set the world straight on this idea that viasat has a better or not better mouse trap. they need to have more
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contracts. i'm on the sidelines on gogo. i am worried about it because, why? everyone keeps telling me it doesn't work with netflix! and netflix is the most important force of entertainment in the world today. thank you. yes? >> hi, jim. two quick questions for you. first, we want to say how sorry we are that the price of avocados is negatively -- >> are you kidding me? i'm losing money hand over fist on the avocados and guacamole. >> the first question is, american airlines, we purchased it at 33 upon your recommendation, 44 earlier this week, the iraqi turmoil pulls down 6% yesterday, recommend selling some of our profit and holding on to it. >> this is a great question. here's the problem, i think the stock is going to go up very, very big over the long-term. i think it can earn a huge amount of money and it would not surprise me. i've used the $60 price target. here's the problem, if it goes down, will you be able to buy more? if you don't have enough money
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to buy more, then you should ring the register, take a little off the table and put it back in. otherwise, just ride it out. thank you very much. looking for some family fun? look no further than disney and cedar fair. not just the parks but the stocks themselves. the turmoil overseas to put these stocks on sale. that's your opportunity! our special family affair edition of "mad money" continues with the "lightning round." [ cheers and applause ] the best players in the world squaring off for national pride, personal glory and profits. it's coming. cramer's world cup all next week on "mad money." replace your laptop?
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it is time, it is time for a very special "lightning round" on "mad money." say the name of the stock, i tell you whether to buy or sell. play until this sound -- and then the "lightning round" is over. are you ready, ske-daddy. time for the "lightning round" on cramer's "mad money." yes?
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>> friday the 13th, boo-yah, jim. >> hi, jim. first off, if i could adopt another father, it would definitely be you. >> sweet. my kids won't be happy, but that's all right. >> but i wanted to ask you as a fellow harvard alum and current urban outfitters employee, your thoughts on urbn. and if you've had a chance to check out our new harold square store. >> my problem is i like anthropology very much, i think the flagship store has to deliver. and your company's very upset with itself. i can't get behind you until your company isn't upset with itself. right now i say it's a hold. yes? >> boo-yah from cleveland, jim. we love your show. >> tribe looks good this year. >> thank you. i'd like your opinion on rockwell automation. >> i like it very much. it's a classic american industrial play right now that is working and i want you to own that stock. that's terrific.
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yes. >> san miguel boo-yah. >> how can i help? >> larry and joanna from boston. >> and new york. >> jim, you had array biopharma on last september, and following on your revival of biotech. do you believe with their new phase 3 and new orphan drug status that this can be held or at least -- >> i wouldn't -- before the merck deal, i would have told you, we could be in trouble here. i think you're fine. the merck deal changed a lot of people's minds, including mine. yes? >> boo-yah, jim. >> boo-yah. >> this is my family. >> how are you? thank you for coming. >> i am asking for ensco. you were on -- >> for the charitable trust. why? it yields more than north of five. it's got the newest and best fleet. a lot of people worried about day rates. i'm not concerned. mexico opening up soon. i think ensco is terrific.
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>> boo-yah, jim. >> boo-yah. >> this is my daughter darren. i'm asking about uvv universal corporation. a tobacco company. >> we like -- that's the one we like. we do believe it will not be independent. that's my play in that group. yes? >> i got let's go rangers, boo-yah, jim. >> well, it's a hopeful boo-yah. >> this is my mom terry. and i've got a question about panera. what's going on? >> when we had ron shake on, i felt he was some degree telling you, listen, we're not ready yet. i think when they have to have two more quarters where i feel like they addressed a lot of the issues he brought up. and then, then not yet. yes. >> i'd like to give you a boo-yah, jim. this is aaron from santa maria, california. >> wow, thank you for coming. >> you're welcome. my question is about time warner cable and comcast. i understand they're merging. your take on that. >> well, i work for comcast. if i would tell you i think the deal's a great one for comcast. people might say, well, jim, all
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you're trying to do is say good things about comcast. that's a buy, buy, buy. >> hi, jim. b-b-b-boo-yah. >> excellent stuttering boo-yah. >> my stock is whz. -- dividend yield and the company's prospect looks good as whiting's prospect looks good. >> no, i agree with that. i threw out the pitch for the dodgers in one of the first games they had a long time ago. but i think you're fine. i think it's a good idea. come on. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%...
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for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy? a simple ler time. a time when technology meant the growth of the personal computer. and the increasingly important role it played in our lives. what -- why does that bring back fond memories? well, because in a simpler era when pc sales were good, you sat back and bought some intel! >> buy, buy, buy, buy! >> you could buy intel until the
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cows came home. this along with the personal computer doppleganger. however, intel lost its way, missed the mobile revolution. spent and spent and spent on new equipment and got little to show for it, seemingly losing its luster as the bell weather of tech. today, though, we were reminded of the intel of yore. preannounced sharply better than expected earnings and sales last night. stems from the strength of the personal computer market, but also because he is restoring the greatness of what was once the best of the best of all manufacturers. and i'm not just talking about semiconductors here. i mean all kind of manufacturing from earth movers to airplanes. this guy gets it. he's done with spending on things that don't give the company a decent return. he's through with being second
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banana to samsung when it comes to innovation and rally changing the culture at intel. you could say he got lucky, pcs have been in the doldrums and are coming back to life. however, i'm a huge believer in the power of a good ceo to fix the company. and i think this intel lifer understands better than anyone the lesson of andy grove, the amazing former ceo that a quarter is a reasonable time to grade a chief executive's work. the four quarters brian served as ceo, that's a growth lifetime. as many analysts were shocked out of their gourds, allowed the sell recommendations, doesn't stop at intel. you can buy hewlett-packard off the news, micron makes sense, western digital, cgate, even microsoft. if dell were still a public company, it would have been the best buy in the group, which shows you how darn smart michael dell was given he bought the whole company in the depth of the pc depression.
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and yes, you can play intel. i hope the stock comes down. which some day it could happen because the geopolitical events. although it remains cheap with a bountiful 3% yield here. in the old days, i used to say my name is jim cramer and i'm an intelahawk. because i love to visit the factories on vacation. but serious mistakes and mishaps and less than stellar leadership made me kick that delicious habit. it's terrific that intel's dry spell is over. and it's fabulous news for tech and the market as a whole. once again, i'm feeling like a proud intelehawk celebrating the strength of this great american company. stay with cramer.
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you've reached the office of dr. cramer. he's with a patient right now. please leave a message. [ beep ] >> we've got families from across the continent in the studio today, as far west as california, as far north as canada. after the wild market of up and down and then, of course, up
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again moves, i'm going to prescribe some family therapy. maybe an unhealthy attachment to a stock. maybe your family suffers from a split investing personality. well, the doctor's in the house. so let's talk to some families and start the healing process. let's welcome our first patients. >> hi, dr. cramer, i'm john. this is my mother robin. >> how are you? >> we've got a real family crisis. we're not doing so good. it's over sotheby's. i want to buy it, so it's a great business, does high returns on capital, it's in a duopoly. they do records every month in high-end art auctions. dan loeb got involved, improved the capital allocation, paid out a huge special dividend and the stock sold off. but she doesn't want me to buy it. >> jim, we are in deep trouble. jonathan, as your mother, who bought eog in the '90s at $8 a share and lng at $10 a share, i do not think you should buy this stock. number one, we're at the peak of
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the art cycle. number two, the business sells to .001% of the population of which you are not a member of. and number three, with tapering and with china slowdown, there's going to be less of a demand for high-end art. so i think, as my son, you should invest your money more wisely. >> all right. well, you bought eog -- >> at 8. >> and you bought lng -- >> at 10. >> what should i be buying? forget about you entirely. sorry. i don't mean to be, you know -- well, i can give you a prescription to go to sleep for the next 40 years. i need to know what she's buying. i think sotheby's is a played out stock, but i agree with you, i think dan loeb's a great investor. but i want to compliment you because i've been recommending eog and lng for ages. and most people keep saying, jim, i want out. and those are ones i keep doing. lng, i like to switch the partnership now.
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that's really great. but i want to emphasize that if -- when david faber broke the sotheby's story, i wished so much i bought it. i think it's played out. i'd stick with your mother's view. >> thank you. >> thank you. next patients, please. well, what do you have to say? >> hi, jim, i'm tom, this is my son matt, we're from westminster, maryland. >> excellent. >> i'm in love with twitter, bought in at $50, taken some bumps on it. >> okay. >> i think twitter has a great future. he likes facebook, but my -- i have two teenage sons, zachary and luke, they're younger, they're telling me their teenage friends are not on facebook, it's my generation on facebook. >> well, look, it's a tough call because facebook, periodically we hear that the young people aren't on it and then when push comes to shove they are on it. it's a great worldwide brand i think twitter's full of promise.
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i'm doing a big write-up of twitter and it's a moving target because i like -- i said don't buy if it gets down to 29, gets to 29 and taking off. i prefer facebook to twitter. that said, i believe that if twitter got it together, the opportunity is greater because i regard twitter as its own personal news service. they've not been able to figure out how if you don't want to tweet, you want to use it. if they do that, the stock goes back to $50 where you bought it. thank you. >> okay. [ applause ] >> how you doing, dr. cramer? this is chris, my father carmine. i would like to dump the shares in the next few weeks to move into a better sector or get into a better player in the same sector. i feel like oil prices are going to spike because of the crisis in iraq. i think it would be a great exit point and moving better. >> i think you've got to hold on to it for long haul. the recent acquisition of epl,
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the company is a good fit. >> yeah, i thought the epl acquisition was terrific and we were down there when it was consummated and we were on the oil rig. and i have to agree with you. i don't want to sell it. but you know what, marathon, mro, down today off a bad downgrade. that's the one for you. thank you very much. stick with cramer!
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humans. even when we cross our "ts" and dot our "i's", we still run into problems.
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that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy?
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thank you to all the families and friends back home. and those who are with us in studio for being part of the cramerican family. remember, a family who invests together, stays together. always like to say there's a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer, and i'll see you monday!
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>> this is a cnbc original. >> 5 million guns sold. [ gunshot ] >> they shot more accurately than any other factory-action gun i've ever known. >> an american icon. >> with accuracy like that, why would you go hunting with anything else? >> but this icon is riddled with questions. >> shot that lady in the head. she died in her sister's arms. >> how does it happen? >> a gun should not fire without the trigger being pulled. >> what makes a gun just go off? >> go ahead. >> and how far will a company go to protect its signature product? the insider. >> i know the remington way -- you just don't tell nobody

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