Skip to main content

tv   Mad Money  CNBC  June 16, 2014 6:00pm-7:01pm EDT

6:00 pm
i think it goes higher, carl icahn has been in the name. they're talking about a potential sale. i like nuance. >> i'm melissa lee, meantime, don't go anywhere, "mad money" with jim cramer starts right now. \s . 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. other people wants to make friends. i'm trying to make you a little money. my jolt is not only to entertain you, but to educate and tweet. call me or tweet me. this headline took my breath away -- investors struggle to digest fresh fears.
6:01 pm
why the heck is that news? c'mon, man. ever since the great bull market of 1982 began 15,000 dow jones points ago, investors struggle to digest fresh fears. dow ultimately gaining five points, s&p advancing just 0.8%, and future were down last night, what truly is a shame is this kind of evergreen story is now a staple to so much business journals. it costs people so much money. these pieces have caused a steady departure of individuals investing in stocks, in large part because they don't understand the fears do get digested, and when they do, stocks can rally. so i want to use in as a chance to talk about how risk and how -- how risk and stocks per se are risky assets, but you
6:02 pm
can't get it any reward without some risk. there are many kinds of fear, but only some are actually worth worrying about. sell sell sell. for example, 2008. >> sell sell sell. >> we had true systemic risk, which it seemed like all of our basics were on the brink of disaster, systemic risk must be avoided even if it means you missed the beginning of the rebound. there have been whole periods somewhere vast swathing of wealth were wiped out. just like we saw in the '30s. and with the is that literally got cut in half is one of them, though thankfully the market managed to bounce back rapidly after the fed and treasury department contained the systemic risk. then there's the fear of whether the mechanisms and methods of the stock market asset class are feared.
6:03 pm
in other words, is the asset class a fair place to invest? the risk that high frequency traders posed is always there. it hasn't been fixed. another flash crash could happen again, since they are so many unregulated rules and untested circuit breakers. plus we know from all the insider trading prosecutions, the market invariably seems rigged. now, i don't think that really affects the individual investor, but the prosecutors so without a doubt the asset classes tainted. taint, justifiable fear. however, despite the headline in the journal, i don't think the current set of fears comes close to representing anything like a systemic risk. sure, we know that oil is high, could be headed higher, that is a worry for me if if the oil workers in iraq walk off the job. our government's inability to marshal natural gas as a viable interesting, we're still hostage to the middle east.
6:04 pm
i said last week there have been several bear markets caused by iraq and the spike in oil, so it's perfectly reasonable for the market to drop, 2%, 3%, 5%, if the price of crude jumps 10%. if it happens it could be trouble. it could be possible that iraq's oil fields get shut down, considering the job the government has done protecting its own people. i think we got a reprieve because baghdad did not fall over the weekend. we had another set of fears not long ago, right in the late part of the winter, early spring. put simply we were worried that the biotech and new tech stocks that had lost traditional moorings for valuation would be overwhelmed by new supplies. how many times did you hear that the overvalued stock simply had to drag down the rest of the market once they started toppling? we also heard a lot of analogies
6:05 pm
to the 2012 dotcom crash. i don't think anyone other than me bothered to point out that the overvalued nasdaq actually failed to hurt the vast number of tech names when they rolled over back then in march of 200. in fact, the weakness in tech caused money to flood into nontech names back there. that's -- now, here we are after many of these expensive and biotech stocks have falling, and sure the rest of the market continued to you poor higher while the trashed high flyers, they have begun working their way back up again. yes, they've been headed higher ever since salesforce.com reported a fantastic number a month ago, then the stock didn't -- didn't get hammered. if you remember sailsforce signaled the start of the decline at the end of february. when railroaded, the stock jumped from and then the next day it started dropping like a
6:06 pm
rock, which marked the beginning of a long slog down to 49. then when the company rotted last month, the stock managed to rally. that was a signal the rest of the group could go higher, look, i'm not crazy about the group, but it was a signal. when the twitter lockup expired and the last of the floodgates opened. meanwhile, the ipo window slammed shut. the only deal we've had since then have been high quality ones. like what i talked about last week. i told you that the high flyers would stop plummeting when they started getting a takeover bids. let's not forget the mag any of sit gain you got for priceline or the absurd 239% premium that merck paid for i dentics. it's time to cover your shorts, before something you're betting
6:07 pm
against gets acquired, too. how about the rebounds in tesla? i still think that's overdone, but tesla, solar city, amazon, netflix, the cold stocks bouncing back to levels not even possible a few weeks ago. the fear that the ideologues who don't trust the feds stirred up literally for years is that when the fed tapered the bond-buying program, it would destroy the market. no one who fomented this fear has ever been held accountable. i get held accountable including things i didn't do or statements i didn't make. but this is what really g lly g me. as investor struggle to digest fresh fear, they're getting a steady diet of good news. -- aren't we entitled to savor the tasty takeovers? did anyone in the press taste the joy of the bidding war that
6:08 pm
caused the 70% rally in hillshire brands? how about digesting the 19% gains that shareholders of williams got today, because the company took a controlling stake in access midstream partners. that's right, the acquirer rallied that much. the bids, they earned are not something to sneeze about the my view is as long as the acquirers can purchase strategic assets, we're going to get more takeovers, now fewer ones, as long as the treasury depend and congress sit idly by and don't try to stop the tax -- known as tax inversions -- more on that later -- how can the market not instrument to go higher, though i recognize that iraq is a problem. as we try to digest fears, both justification and non, please remember that's been the case for agings and ages and gobs of points higher, and that while we've seen systemic risk before,
6:09 pm
i just don't believe that the fears the market is struggling to digest right now can bring us down to levels witnessed a few years ago. hey, i'm mindful, i am not being blind to risk. i'm simply trying to balance risk with reward and point out over the long haul, reward has certainly done most of the winning. cory in massachusetts, cory? >> caller: jim bo, thanks for having me on. >> not a problem. >> caller: i got a question. great day, beautiful out. ftft, what do you think of the stock? >> when it comes to this kind of network security, this is a good one. i think palo alto network is good, but i think fortnet is doing good. jim, how are you? >> caller: i'm doing great. thank you for the excellent
6:10 pm
chapter in your new book, very nice. >> thank you. >> caller: i had a twofold question on u.n. pacific. the first question is that i heard that mexico was encouraging competition on rails down there. i'm wondering if union pacific would be able to take advantage, and also with the oil prices going up, if that would affect the rails more harshly than transports like trucking? >> sure. union pacific, these guys can get 400 miles to a gallon. they actually have a hammer long on the mexico business. remember, we spoke to union pacific's jack korleski, and he said business was good. so i'm i like it very much. sure, we can try to digest the fears out there, but i just don't think they fears are enough to bring the market down big. i'm aware of the risk, which includes iraq, but i'm also aware that reward obvious wins. are you caught up in the world cup craze? we've seen what the best teams
6:11 pm
have to offer. all week long i'm looking at the best stocks. and it's the luck of the tax code. why the latest trend in corporate america is picking up and moving earl where, and how you could benefit from it. plus i'm breaking down one of the wall street's most valuable breakups of all time. stick with cramer. replace your laptop?
6:12 pm
6:13 pm
start with the best writing experience. make it incredibly thin. add an adjustable kickstand, a keyboard, a usb port, and the freedom of touch. and, of course, make it run microsoft office, with the power and speed to do real work. introducing surface pro 3. the tablet that can replace your laptop.
6:14 pm
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. tax evasion may be a federal crime, one that nets you years behind bars, but if you're a corporation, you never need to sully your hands with such things as evading taxes. there's a much easier way for
6:15 pm
companies to avoid paying taxes in this country. not tax evasion, but tax inversion. ♪ hallelujah >> where companies move their headquarters to some overseas tax haven, and boom! suddenly they're no longer domiciled in america. that's right, this medtronics, the medtronic/covidien tie-up? the easiest way to changes your taxes is change your address. get your pen and paper up. i have come up with a list of potential tax inversion takeover candidates that could turn out to be the next covidien. first, let me explain this concept. even though it's located ostensibly in mansfield, the
6:16 pm
principal office is in the fine old city of dublin, ireland, not far from guinness. in part because it has a series of terrific patient monitoring and blood flow devices. it looks like the main reason, is the lower hatch street address in dublin. save a huge amount on taxes. hey, you know what? they can play with their money kept overseas. what a windfall. and then you can get out of the paying the u.s. taxes. wouldn't you love it if you
6:17 pm
could buy some real estate and say the cayman islands, pay your taxes there instead of here, even if you never actually spend anytime living in the caymans? sadly that is not how it works for individuals. but the tax inversion strategy does work for companies. i think we need to figure out who could be acquired next. who else will be taken over at a big premium one down the road is eaton, a terrific industrial company known for making fantastic products for everything from lighting to area and trucking. and you might have thought that it was the corporate pride of cleveland, ohio, not unlike the calf leer, or the tribe itself. wrong, it's in dublin.
6:18 pm
i stayed at the four seasons in dublin once. had i timed it better, i could have gone to their annual meeting there. like covidien, it has the added advantage of being a terrific company. next up, high about another spin-off, t.e. connectivity, the company formerly known as ant, a proud pennsylvania electronics firm. you might think it lied in a real swell part of p.a., but the actual address is 20 rye d rydenshaffer? switzerland. can you think of a better place? not only would it let danner take advantage of the sweet swiss tax rates, but the company also has a pretty darn perfect fit.
6:19 pm
though perhaps danner would prefer to move to ireland, in which kay i suggest buys pent air. you thought it was based in minneapolis? but in fact this fluid control company just changed its corporate citizenship from switzerland to ireland. how about this one if one? chicago bridge and iron, cbi. there's an old joke about cbi, that it doesn't make bridges or iron, and it's not even located in chicago. the punch line is it's located in houston texas, at one cvi plaza. no, it's like the punch line of that joke is wrong, too, because it's actually located in the netherlands, specifically the hague. hey, isn't that where that court is? how convenient for flores to
6:20 pm
acquire this competitor and move to holland. they could build windmills and dikes together. this game could go on and on. the actual tyco would fit in well with honeywell or the -- while allowing them to relocate to switzerland. how about al al kermes, despite the company's giant fa is the in massachusetts, it's located at one burgton road in dublin. there's tons of american companies that could save a boatload in order to relocate to ireland. but get this one. if that's not a good fit, how about jazz pharmaceuticals? do you know they have the same address? now, that's one convenient
6:21 pm
one-stop tax haven shopping, this time for an 8.5 billion company that could help a host of american firms lower thas their tax bill. silly me, i thought jazz was located near palo alto. 6. and please don't forget weatherford and anseco. does it matter that it's named after the town in texas? or calls 4-6-rue debarcelona in geneva, switzerland, its home. what i didn't know about this driller is it's head quartered not in houston, but actually lives in 6 chesterfield gardens in london where the website set, and i quote, has a large number
6:22 pm
of people. more than houston? who knew they had oil in london. a friend of mine used to fly week after week from new jersey to insurance jit in chicago. i don't know why he went to chicago. it's located at 8 devin dpp shire in london. we could go on and on. all i can say is every one of these real american companies is now a takeover candidate because of our ridiculous tax code. if pfizer wanded astrazeneca and rgesz me trong wanted here's the bottom line -- yes, i know it's ridiculous, but they companies are making lots of money without ever having to leave home except to pick up the mail. remember, the tax code specifically points out that every american has a right to avoid paying as much taxes as they can without breaking the
6:23 pm
law. congratulations to all these companies. they have figured it out, and thanks to that they're all juicy takeover targets, whether they admit it or not. after the break, i'll try to make you more money. coming up, street ball. 32 nations waited four years for their chance at international glory. but which of these global players has what it takes to achieve investing dominance. jim is scouting the action. when he week-long series kicks off, next.
6:24 pm
in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
6:25 pm
seeing the world in reverse, and i loved every minute of it. 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?
6:26 pm
i know that soccer may not be that big deal yet in the united states. even though in the rest of the world it's more of a religion than a sport, but even we recognize the importance of the world cup, where countries all over the world are currently clashing from brazil. that's why all week we're having or own "mad money" world cup, where we look at the best stocks from countries that are major contenders in the real world club, and on friday, i'll declare a winner. where do we start? the spanish team will technically be the reigning champion for another month until someone else lives it is trophy in rio. last friday span god man
6:27 pm
handled. really a resounding victory, sweet revenge for the dutch who sawed the hopes snatched by spain in the 2010 finals. it looks increasely like a real competitor for brazil in the fight to take this year's crown. in celebration of dutch might, we're going to kick off our week-long world cup series by highlighting my favorite company based in the netherlands. unilever, the gigantic staples name. unilever is the world's third largest consumer goods company by revenue after procter & gamble and nestle. and as consumers good plays go, it gives us everything we want. a portfolio, a bountiful dividend, and enormous expos injure to faster-growing companies.
6:28 pm
unilever, food, free freshment, home care and personal care. now, look, you might recognize them by their 14 biggest brands, talking about dove, vaseline, hellmann's, breyer's, so many other. at a time when so many soft goods companies are grasping disprattly for exposure to rapidly expanding emerging markets, unilever already get 57% of that are sales. major presence in asia, africa and the middle east, along with more balanced exposure in europe and north america. in short unilever has tremendous geographic diversification, like a modern-day version of the dutch old east trading company. unilever takes well-known first-world brands and then rolls them out into third-world
6:29 pm
countries, in order to cater to the rising middle class. it's like real growth in the world. a host of important categories across numerous emerging markets. turkey, argentina and pakistan, countries where they're either number one or number two in fabric cleaning, skin care, face care, deodorant, iced tea. even though unilever guess -- and even though these operate in 190 countries, the company is still in the process of rolling out the biggest brands all over the world. at the moment dove and ax are in over 60 countries. pretty amazing. pretty amazing. gigantic brands, they have a lot of rooms to expand worldwide, but what i really like, is that this is the kind of dividend stock that you can make the core
6:30 pm
holding, stock year after year, as long as you do the homework and management keeps delivering. over time by reinvesting, you can get a terrific return. 129 shares for $2,000, the beginning of 2005, you've now an investment wo 5,825 sdlrz. a gain of less than ten years, plus over that period, unilever has tripled its dividend. i for know this is one of the most shareholder friendly companies on earth, with a very long track record of raising its payout. for those of you hiding in bonds, just remember the 30-treasury gives you a 3.4% year old, but unilever, it will actually increase its payout over time. unilever hasl already had a good start to 2014. it delivered a 3.6% increase in
6:31 pm
like for like sales. that's big for this industry. management says it can accelerate that number for the whole of 2014. that would be terrific. the weakness is currency. at the exchange rates are unfavorable, that can take a big bite out of the company's earnings. i'm not worried about currency messing up this company's earnings, at least not in the near future. while the bits was stagnant or shrinking respectively in the united states, the sales in emerges markets increased by 6.6%. latin america up 9.8%. finally unilever also has a portfolio program going that i think could give the company a real boost. the idea is that it plans to make the food business leaner while at the same time expanding
6:32 pm
exposure to home and person care products. just three weeks ago manage trimmed some of the weaker performing brands, for instance, theyu to a japanese company for a big price. much higher than might have been expected a few months ago. unilever used the money to fund a one-off stock buy back plan. right now we know there's a buys frenzy in the packaged food space and unilever has a lot of terrific assets that it could sell, then perhaps use the proceeds to find even more buy backs. unilever is what's known as a dual listed stock. either way i think -- let me give you the bottom line. not only does the netherlands have a decent chance of winning the world cup, but it's also home to pretty fantastic companies, like unilever with the boundiful dividend and amazing emerging market exposure, one that procter &
6:33 pm
gamble would kill for. this is the kind of stock you buy into weakness and hang on to for the long haul, long after the world cup is over. will in texas, will? >> caller: a boo-yah to you, cramer from houston. >> i like that, man, houston a lot of good companies there. >> caller: yes, with the japanese nikkei down more than 8%, do you see any up side in ewj? >> i don't want to go there. i've kind of become chastised about some of these foreign markets, because i think our market is so good. unless there's a couple companies that represent the promise, i would rather select united states and european companies that i think can do well. there's the world cup and perhaps more importantly there's cramer's cup. both are amazing to watch. only one can make you "mad money." unilever, i would even say it's the netherlands mvp.
6:34 pm
considers its weakness, hold on. you know what? much more "mad money" ahead. you know covidien was the big buyout winner for merger monday. stick around. i'm going to give you a bunch about the next health care company that could fit the mold. how about a free college education with that coffee? i'll let you know where i stand on starbucks. plus the lightning round is just minutes away. stay with cramer!
6:35 pm
6:36 pm
6:37 pm
there's more value buried within the stock market than almost anyone is willing to acknowledge. we know this because the best metric to fick out what it's worth is to -- and lately we've seen a ton of takeover activity. last week i spoke about tyson fools, a sleepy little food company for 70% premium before the bidding began. the covidien acquisition everyone was bussing about is something that i've been telling you about for ages. that breaking up your business
6:38 pm
can create or unlock enormous value, why? because coindividual see it was the product of a breakup. this used to be -- but then in 2007 it got spun off. before that breakup was announce the had an interspry israel. over the years they've created tremendous amount of value, where explain yu how bowen i fill that they can be. which now is an enterprise value and fire and security engineer
6:39 pm
products play that kept the name tyco international. but that was just the first round. then at 2011 another breakup, first it spun off the control business. it merged with pent air. in a transaction that valued the flow assets. that was in march of 2012. then it spend off the as adt in september of 2012. this left the re -- quote the newest tyco as a simple fire safety and security big. to see how much wealth the tyco breakups created, there is one more wrink of of one more spin, and that's when covidien itself spun off the business in order
6:40 pm
to being a meaner, more focused company, one that could be, as we said, when it happened more easily acquired by a medical device plan like medtronics, which is exactly what just happened today. sew let's put it together. when you add them up, covidien plus te connective, at vt, and the remaining tyco international you get $112.4 billion. remember the old tyco wall street worth -- so all these split-offs and mergers and split-ups have created 43.5 billion worth of value. you remember, that was this company. that was this company, and all they did was lines on a piece of
6:41 pm
paper. and it created that value. because to understand, you have to understand how covidien got to where it is right now. i've said this over and over and over again, it's much easier to get acquired when your snailer, more streamlined that's closer to a pure play. they don't want to buy something and then start to sell things off. they like these bite-sized deals. they want it to be as simp and easily did i jestible as possible. that's why i think the spin-off was so essential here. for ages, it was held back by the ailing pharmaceutical about is that nobody really warranted. then they spun it off. and also allows it to -- to be a
6:42 pm
drug company rather than a redheaded stepchild of a -- fast forward, they're being number one and number two in 90% of the markets where it operates. you know what this don't feel bad for mallenckrod. in part, because by becoming an independent company it allowed them to acquire special drug maker cadence pharma, and then cresse corp, for 5.6 billion. when it was part of covidien, it couldn't have countens those deals. it wanted less exposure. but as two separate companies, both businesses can do what's best for themselves. as i mentioned earlier, there's another aspect to this deal, the change of address factor.
6:43 pm
or what's known as tax inversion. medtronics an american company. in the u.s. corporate tax rates are very high. covidien is based in ireland, a torte corporate tax haven. so by acquiring covidien, medtronic will be able to relocate its headquarters and change where its domiciled, in order to benefit, but medtronic didn't just bike it because it was an attractive takeover. no, what's happened in the mel device space looks like what we've been seeing in the grocery store aisle, where food companies are aggressively merging with each other to take market share. the same is true in the medical device space. by acquiring covidien medtronic will be able to accelerate its growth and gain share in vascular devices, periscopic instruments, electrical surgical, as well as all sorts
6:44 pm
of soft-tissue repairs. this is zimmer orthopedic device play? just like what they did when they agreed to buy biomed. and it's the same logic that made striae kerr -- by the way, if you're looking for the next medical device takeover target, the next covidien, i think it should by smith & nephew. bottom line, call it the breakup takeover two-step. when you split up the company in smaller digestible pieces like tyco did, and then those pieces themselves spin off square peg divisions that don't fit, then you're much more likely to catch a takeover bid. this deal is only the latest example, and i think we'll see many more in the not-too-distant future. "mad money" is back after the break. [ female announcer ] there's a gap out there.
6:45 pm
that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪ the porter was so incredibly...
6:46 pm
careful... careless... with our bags. and the room they gave us -- it was... beautiful. a broom closet. but the best part but the 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. [ male announcer ] with millions of reviews, a visit to tripadvisor makes any destination better.
6:47 pm
its time for the lightning
6:48 pm
round. you tell me a stock, and i say buy buy buy or sell sell sell, and then the lightning round is over. are you ready, skee-daddy? time for the lightning round. i'm going to start with bob in new york. bob. >> caller: jim. >> bob. >> caller: your crew is outstanding. >> yes, they are. >> caller: absolutely phenomenal. moody's, what do you think? >> i like that rating. why? they got away with everything that happened. no one ever took them down. they really are best in show. mike in illinois, mike. >> caller: boo-yah. >> boo-yah, mike. >> caller: magnum hunter. >> i like magnum hunter. i like the new investors. i think people should be buying the stock. patricia in north carolina. >> caller: yes, hey, jim. boo-yah. >> boo-yah to you. >> caller: hi. listen, jim, what do you think about mold i corp?
6:49 pm
>> molycorp, i don't really like it. i'm not going to endorse that stock. to landon in massachusetts? landon? >> caller: boo-yah, jim. >> boo-yah, what's going on? >> caller: i live in paulson, massachusetts. >> okay. >> caller: um -- >> maybe put your dad or mom on there if. >> caller: i'm 8 years old. >> caller: hey, jim, boo-yah to you. pandora, buy, sell or hold? >> i tell people to no longer short pandora, but i don't have a case to be long. it's just too -- a lot of people are giving me trouble, i'm trying to lower the risk. that one is too risky for me. go to cullen in new jersey. >> caller: boo-yah, jim. big fan. >> thank you. >> caller: i'm short coupons.com. >> you short it? you know, i don't recommend
6:50 pm
shorts, but you know, the company is very -- the company is very expensive. let me say that. let's just leave it at that. and that, ladies and gentlemen, is the conclusion of "the lightning round." ♪ or their new product tanked? 6 ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.
6:51 pm
6:52 pm
. is it a marketing ploy or just good business?
6:53 pm
i'm talking about the revolutionary program that starbucks announced today to provide free online college education for those who work at the company. i think a lot of my colleagues and people on wall street immediately jump to the conclusion that howard shultz and company are just creating a big splash, one more public relations gap bit, gain more customers, boost the stock, whatever, cynical. now, first of all, of course it does help their image, no doubt about it. there's good publicity value, because it's good publicity. why not? it's a great idea. college is good. people do better with college degrees. second, we don't know how much it's going to cost or how much the tens of thousands of employees will apply for the online degree from arizona university. third, starred bucks has 135,000 employees in this country. you could argue that many won't avail themselves of the opportunity because of time
6:54 pm
considerations, or they haven't finished high school, so it i believe it's real, but at the end of the day, i think this is one of those instances where doing good is good for everybody, including workers, customers and stockholders. the program reflects something that most managers, most people don't understand about the interrelations between education, employee retention and earnings per share, as howard shultz said today in a partners meeting filled with grateful employees, many of whom were highly emotional, a company with a conscience does better at creating value than one without one. given the performance of starbucks, stock versus its peers, you know what? that's empirically true. this is not a new theme. united technologies paid for 35,000 college degrees at a cost -- but is that the actual cost? george david is former ceo,
6:55 pm
always explained that the company helped retain the best and brightest. i think the exact same thing will happen at starbucks, with many more people using the online sun devil program to advance themselves at starbucks rather nan using it as a launching pad for other careers. i'm also reminded of something that jim senegal, the fabulous former ceo of costco has told me, anything that helps retain high-quality employees falls right to the bottom line, because you more than make up for it in not having to train new people. training people is a deadweight loss to earns per share and senegal has often claims it as a -- the average turnover? retail is 30%, but cost ka's is only a tiny fraction of that. finally the retail experience is that stark bucks can only improve. it cost you in switches brand.
6:56 pm
the barista is really important. amazing in this incredibly competitive restaurant market. danny mire, the great restaurant tour and creator of the incredibly successful shake shack once expressed concern to me about the ability of starbucks to continue recruiting the best workers in the country. different ever-changing menus, heavy use of technology. shultz answered this first with comprehensive health care long before it was mandated by the government, then with the 401(k) that compensates employees and shares, and a lot more generous than most, now with the most aggressive plan to offer free attitude is en masse of in i company ever. i can't come out here and say raising numbers starbucks after the present haitian. however, i can say that the long-term value of the shares has just increased. for those who own the stock, perhaps that's all that really matter. stick with cramer.
6:57 pm
6:58 pm
in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities
6:59 pm
and see them through, we say: let's get to work. because the future belongs to those who challenge the present. it was takeovers versus the news in iraq, and the takeovers really won. they did get the market moving again. i think a lot of shorts are
7:00 pm
concerned that their stock they're betting against could be next. that's what happens. i like to say there's always a bull market somewhere and i promise to try to find it for promise to try to find it for you here on >> imagine a store with no signs in the aisles, a store that doesn't bag your purchases, one that never advertises, where you have to pay a fee just to walk in the door. who in the world would shop here? as it turns t, about 3 milli fanatically loyal customers every day. it's called costco... >> i love costco. >> i bought ground beef. >> lawn furniture. >> a television. >> i bought my engagement ring here. >> ...a chain of stripped-down warehouses that's become a sensation at home and abroad. >> [ speaking chinese ] >> but its crowning achievement -- convincing you

338 Views

info Stream Only

Uploaded by TV Archive on