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tv   Mad Money  CNBC  September 30, 2014 6:00pm-7:01pm EDT

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report on friday and possibly for ebola if there's a safe haven trade. >> and rates have been going lower, tlt. >> thanks so much for watching. see you back at tomorrow at 5:00. 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 crameric. other people want to make friends i'm trying to save you money. my job is not just to entertain you but to teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. we have our first ebola virus case in the united states. we all heard it. we have to hope for a speedy recovery and no further
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outbreaks. it does come at a bad psychological time for the stock market where confidence is going lower and there's a host of other issues including the spread of the ebola virus. have the economies of the worlds peaked. it means it's as far as you can go. it suggests it's all downhill from here. that's how i feel today. dow dropped 28 points. nasdaq dropped. so much seems to have gone wrong and is how off kilter. there's a handful of stocks going along their merry way. the end of the quarter is a great way to assess peaks or we truly have no place to go but down. first we know the world is slowing perhaps slowing at a surprising velocity given the
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strong head of steam we came into the year with. what makes us so sure that things have slowing. sometimes it's obvious, commodities. any commodity in sync with growth that has to do with putting things up, building things, expanding things is coming down. i'm thinking iron oar, steel, there's been enough to keep it there. let's take this decline of oil. it's pretty staggering. some of it comes from a simple positive. we keep discovering more and more crude in this company. we're now neck and neck with saudi arab i can't and judging by our oil companies it's a matter of time until they're in the rear-view mirror. there was a little in yesterday's presentation about the $7 billion acquisition of athlon energy. they're getting oil out of the old basin in texas. this figure blew me away. they believe it can produce 10
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times the amount per day they're producing and with new technology it can be even bigger than team together. those are the two largest discoveries we've had. that means an additional 3 million barrels of oil per day. if you layer on substitution of natural gas and solar it's easy to see we might not need to import oil from any nation other than canada five years from now. it's going to happen. that's a good reason for oil to go down. the supply side is the positive in the equation. the other reason, the demand side that's just bad. that's the breathtaking decline in global growth happening right before our eyes. we heard from ford motor about how sales are worse than expected in europe and south america. it took my breath away. these were much worse than i was looking for. when i heard the news only one implication had to be made immediately. recession.
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recessions in both contents that's dreadful for earnings but explains the declines in other c commodities. i have been saying the russian-ukraine situation was going to slow market. nobody seemed to care. everybody was like there goes cramer with that thesis. that's now happened. brazil, argentina and venezuela is a mess. they're really krurk profitability now. we didn't get any good news from ford in north america either. that smelled of peak too. the two strongest growth drivers in this country have been oil and gas and autos but if we have too much oil and gas we won't need to drill as much. can't export the stuff. natural gas maybe but not oil and that's going to slow down the hiring. autos are the same. so we have to ask if we hit peak hiring in this country. wow, we'll know on friday when we get the labor report but it
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does seem that the numbers might be behind us. we got housing data this morning and noble prize winning professor didn't use the term when i spoke to him this morning on squawk on the street he made it clear we reached peak housing prices in this country. we don't want housing at unaffordable levels but people could pause their buying and we're at recession nary levels of home building. peak. we know that the dollar has gotten incredibly strong. it's highest level in four years. 7.7% up this quarter alone. way too fast for many to adjust to. what does this do for boeing that's now losing it's cost advantage to airbus plus worse it's by design. europe wants the euro lower to put people to work there. that kind of work, building aircraft requires a huge number of employees. is there a peaking? maybe for the moment. just for the moment. and then there's the bonds. we don't know when the fed is
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actually going to start raising rates. people talk about it all day but we don't. the yellen fed is data dependent but the easing is a thing of the past. while interest rates may not go up much the long bullish run in bonds, 30 years by my count has to be considered over. despite all of this negative data around the world something that will depress rates will only conclude what the fed has told us. bond price versus peaked. remember rates will go higher overtime as bond prices go down. not good. what hasn't peaked, first unfortunately what hasn't peaked is political intervention. the problems in europe are man made. we won't let the russians take back ukraine and can only hurt them economically. they won't stop until they get more of ukraine and they seem to be willing to take a lot of pain. they can inflict a lot of pain on europe in return which is what happened with ford. in iraq we decided to escalate back in one form or another. hong kong may be peaking if the
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people's republic clamps down on the protestors. will our country allow that? will we put sanctions on the chinese? hope not. things will look before in the next 24 hours but the inability to peak is really starting to turn parts of this market into a treacherous place and also impacting the whole psyche as we saw with the big drop of consumer confidence numbers we got this morning plus we know ebola is not peaking any time soon now that it's on our shores. that can impact travel. it can impact the airlines. that's a group trying to stabilize. i don't know if it will. so if everything but geo political tension ebola virus is peaking, why don't you sell everything. have to say not all peaks are bad. take commodities. sure commodity producers get whacked but we're takers not producers. we benefit. more money to shop, more money to dine out. we want wheat and corn to go down to cut into food inflation.
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coca-cola is breaking out here and not because the sales are fabulous but because it's a huge consumer of the commodities we're talking about. secondly we want housing to be affordable. home prices went up too far too fast. we want them lower. could be good and not bad. third we have companies not connected to the peaking cycles so the money will go there. there's always a bull market somewhere. these are secular growers. fourth higher interest rates are very good for the banks. technology, health care, banking, consumer soft goods, retailers, restaurants, hey, those are a huge percentage of the stock market. that's why we don't get hit hard with all the peaks. many of them may signal abroad. we become the safe haven not just for bonds but for stocks. we need to accept many of the industrial manufacturers have reached peak profitability. nike was the exception last
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week. i'm deciding it is an exception. numbers are too high. i bet they poorly perform the industrials. maybe not as poorly as ford but they won't rally on number cuts. that doesn't happen. other companies will see these problems and help themselves. shareholder activism isn't done peaking. and they certainly haven't peaked. but here's the unforgiving bottom line. it's time to face facts here. companies that need economic growth to make the numbers most likely saw their numbers peak in the third quarter and because of that they should be sold. we can revisit their stocks later at lower prices. >> caller: hello, thanks for helping me learn patience in trading. >> yes and you need to do that because as i teach in get rich carefully my worst mistakes had to do with with i had a really good thesis and worked it out but in the end i threw it out because i wasn't patient. how can i help? >> caller: i think they're
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extremely interested in new technology like the 3-d printers and i'm looking at ssys. >> yes, i like stratuses very much. that's my favorite and i do not like 3-d. okay. the end of the quarter is a great time to reflect and examine peaks and valleys. they most likely ditch peak earnings in the quarter. on "mad money" tonight there's many reasons to doubt this market but is that the most disconcerting one? and then it's time for a fantastic voyage on the high seas. i'll crown the king of the cruise lines plus the two stories people aren't talking about today and get this they could actually make you a lot of money. so stick 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
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call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires 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.
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lately we've been hearing a lot of chatter about the impending death cross. allegedly the most bearish of bearish patterns that's soon going to appear in the chart of the russell 2000. the very important index of small cap companies containing 2,000 of the smallest names in the market. the death cross is what happens when security short-term 50 day moving average crosses below it's longer term 200 day moving average signaling that it's near term trajectory has become weaker than it's long-term one and everything is about to fall apart. or at least that's the conventional wisdom but tonight i want to go off the charts with the help of a brilliant technician who is the founder and senior strategist at explosive options.net. as well as being the technical
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star in the three man team behind the street.com's news letter to explain why this so-called death cross may be nothing to fear. in fact when you look at the historical data it might make more sense to stop worrying and learn to love the death cross. first, though, let me show you what we're actually talking about here. take a look at the daily chart of the russell 2000. that's the small cap index. over the last three months the russell 2000 has been slammed and now it looks like the index is about to make the dreaded death cross. you can see the 50 day. okay that's the red line. the 50 day moving average sloping down right here almost ready to fall below the index's 200 day moving average and then when that happens the death
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cross will have arrived. that's a skull. now if you listen to many of the chart driven commentators out there this death cross will be disasterous and the russell's weakness could signal that the whole market is about to get slammed. going down. they're giving it if business but this death cross is neither as fateful or bearish as many are saying. true there's chart patterns considered important by the big boys. death cross is one of them. in fact it's not just the death cross. it's cross overs in general. whenever the 50 day moving average cross each other they take notice. when it crosses above the long-term moving average, well, that's what is known as a golden cross: bell goes off the buy. it's a terrific buy signal because it means the stock's trajectory is more bullish than
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the long-term one. in other words things are improving. you want to see that 50 day moving average stay above the 200 day which by the way is the case right now. dow jones, the s&p and nasdaq. so when it comes to the russell 2000 where unless we get a rapid and dramatic rally it looks like a death cross is unavoidable the bearish interpretation is that the big institutions get uncomfortable in death cross territory. they don't like holding a stock or group of stocks where the key 50 day line is above the average. nrds the negative thesis for the russell 2000 is that once it goats hit with a death cross the big money will start selling or shorting the index causing lower prices and like mr. t predicted in rocky pain. sounds logical, right? there's just one problem with that analysis and it's a pretty glaring one frankly. when you look at the historic data and the type of death cross
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we're about to see in the russell 2000 tends not to cause it though it might seem like pure common sense but it's the added disadvantage of being dead wrong. let me give you an example. check out the daily chart which tracks the nasdaq 100 and we're going back to 2012. in december of 2012, the nasdaq 100 got hit with a very scary death cross and what happened? lang points out the death cross quickly reversed itself the nasdaq 100 snapped back in the next month and has rallied nonstop ever since. guess what? turned out to be a great chance to buy not sell despite all the hand ringing. just to give you perspective at the time there was terms of chatter that it was the canary in the coal mine.
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it would cause the markets to crash. but i asked bob lang to tell me his favorite index going into 2013 and he predict while the dow and s&p would hit all time highs the nasdaq performed all better because of its recent death cross. sure enough he was right on all counts. it was a huge record breaking year and it gave you a magnificent 36.6% gain of the year after the death cross. by the way lang also favored the russell 2000 and gave you a 35% rally. the point is that it turned out to be a monster buying opportunity and not a reason to sell. take a gander at the daily chart of the dow jones industrial average at the same period. in the year 2013 let's go back here, lang says the dow was in much the same position as the russell 2000 right now. it's 50 day moving average, that's the red, was crashing down toward the 200 day moving average and it looked like a
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death cross was imminent. but despite all the fretting the two lines they never collided. it failed to materialize. it turned out to mark the begins of a magnificent long-term rally. those are two examples. they don't move anything. so we look at a broader sample size and consult data produced with the help of the see it market.com site. turns out since december of 1988 there's been 19 death crosses in the russell 2000. in these cases the russell 2000 got a hair cut following an average of 1.92% in the first days. a bit of a downturn here. ten days later down an average of .7 and by three months later you had an average gain of 1.57%. it only gets better from there. six months after they rallied 7.5% and later on posted an
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average gain of 12%. the median figures for the last 19 death crosses are even better. giving you a 4% gain after 3 months, 11.7% gain after six months and then 17.3 or 17.4% gain after 12 months. so i say bring on the death cross, please. not only that but if you sold the russell 2000 on every death cross since 1988 and only brought it back afterward playing it safe when the 50 day moving average goes back up on average you have a 5.5% gain or loss, loss. in fact when you look at three months the returns from buying the russell 2000 after death cross are better than if you bought it following the bullish cross. i need you to stop threating about the impending death cross that everyone is talking about. the charts interpreted and data
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are clear. as crazy as it sounds, the death cross may be an ideal signal that it's time to buy and not sell. he proved beyond a shadow of a doubt that the only thing you have to fear from the death cross is fear itself. much more "mad money" ahead. is it safe to get back in the water? tune in to the top cruise line stocks. then a new player on the street with over 50 million square feet of retail real estate. i'll survey the land. plus parts of the economy may have peaked but companies are finding ways to create value. i'll tell you what the ebay-paypal split means for the market. first stick with cramer. people with type 2 diabetes
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need to lower your blood sugar? ask your doctor about farxiga and visit our website to learn how you may be able to get every month free. we need to stop threating about the recent decline in oil which took a really vicious turn today. west texas crude falling $3.05 and start looking for ways to benefit from it. stop being so gloomy out there. what's my favorite play on cheap oil? the cruise lines. carnival cruise, world caribbean and norwegian are huge winners. not only do they save a fortune on fuel cost but get more customers as it puts more money in the consumers pockets. after all with the year coming to an end in three months why not use the money you're saving
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at the pump to treat yourself to a cruise. that's why tonight i'm circling back to the cruise stocks and officially reranking the group. i like the whole cohort. i think they're all headed higher but this show is all about teaching you how to pick winners. the best stocks of the strongest company with the most upside. this environment is fabulous for the cruise lines which is why i want to help you choose between carnival, royal caribbean, norwegian, the u.s.s. minnow so you can earn the best breed. which one didn't belong? professor and marianne's one. that's who. my third favorite norwegian cruise lines. the group that became public 20 months ago and is already the third largest player in the space. they have a much smaller fleet than carnival and royal caribbean but they are targeting wealthier customers. a lot to like about norwegian. ambitious growth track and
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trajectory and they announced a massive transformational acquisitions. it's slightly more than $3 billion in cash for stock. you might know them as oceana cruises. they currently have 13 ships. prestige deal gives them another 8 ships. one more in the pipeline not to mention providing them with two established brands. this acquisition is so positive they shot up 11% the day it was announced. i was on the floor of the exchange. who bought these guys? no they bought someone else. it was brand collaboration and cost cuts. the deal is expected to boost their earnings by 8 to 10% next year and that's before even considering any of the cinergies. norwegian has been steadily improving for years. how come it's my least favorite of the three? they have an ugly balance sheet.
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earlier last year the company was bought by apollo and all of these private equity packed deals come loaded down with debt. norwegian had 63 million in cash on its balance sheet versus $3.5 million in debt and with the prestige deal it's going to rise to $6.5 billion. they should be able to generate $1 billion in earnings. but that leaves norwegian very highly levered with a ratio of 6.5%, a little too high for this guy. can they use their cash flow to play it down? of course. if everything goes well that's exactly what will happen but if anything goes wrong and i turn out to be mistaken by the cruise space then the bloated balance sheet is going to be a major risk and it's one you don't need to take. norwegian can always do a giant secondary play down instead but given that they own 27% of the company and could decide to sell
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at any time potential for huge secondary offerings to swamp the market i'm calling it a risk which bring mess to my second favorite. carnival. carnival cruise lines. ccl. the largest player in the space one with a solid 2.5% yield. after a couple of difficult year nos doubt about it marked by seemingly endless parade of bad hem lines where one of their ships capsized off of the coast of italy followed by fires, mechanical issues, carnival finally seems to have it's groove back. the company just reported a week ago carnival blew away the earnings estimates while raising it's forecast in part of strength of asia and europe. the conference call was a thing of beauty. carnival has two things going for it. first is the industry wise improvement that caused management to forecast positive net yields for 2015. it tells you how much they're squeegz out of their passengers
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on an average day and any increase can lead to a big boost in earnings. the second thing is carnival's drive to boost it's margins by cutting cost. they have a lot of room for improvement but there's uncertainty about where the cost is headed. the backdrop is so positive i could see it going to 50 over the next year. but the uncertainty on cost and carnival's history of inconsistent execution are keeping me from making it my top pick even though i think it's such a good stop. >> speaking of my top picks, my favorite cruise line operator is royal caribbean. rcl. the second largest player in the space but by far the strongest operator. here's a company with terrific brands in all the right places and a history of fabulous performance. world caribbean tends to knock it out of the park which is what i'm expecting. after the company reported it's latest excellent quarter in mid july management unveiled a three year growth plan designed to boost the return on invested capital to the double digits by
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2017 and more important to double their earnings per share by 2017 too. now they can earn $7 per share which translates into a 26% compound annual growth rate. those are incredible numbers but if anything given how disciplined the management team is i bet they're conservative. all right now we're not that early here. the stock rallied 75% over the last 12 months. the royal caribbean can come close to hitting the rong term targets it deserves to go higher. in fact i think they're pretty cheap. it's a better company than carnival cruise and substantially faster growth. they sell for 14.8 times next year's earnings estimates. that's insane to me. royal caribbean should be trading at a premium to carnival. this would be an $85 stock. 26% higher than right now. if they can double the shares by 2017 it's easy to see i can make
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a $100 case for the stock. many portions of the economy are peaking but the cruise ship industry isn't one of them. thanks to cheap fuel and more dollars they're at a place to benefit. but of the three i like royal caribbean followed by carnival cruise with norwegian in third place. they're all worth earning but royal caribbean is worth owning most of all. can i go to jerry in michigan. >> caller: booyah mr. cramer. >> what's up. >> caller: i never miss a show. >> thank you. >> caller: i'd like your opinion. on seas. it had impacted their results. they're now the $250 million buy back in incelestements of their killer whales. >> i have six flags under a lot of pressure that fields better at 5.47. i have cedar fair at 5.92 that's
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down 5% for the year. those are both very high quality operators i would rather be in those. how about marianne in new york please. >> caller: hi jim. i have a question on gaming stocks. i bought it for two years but now the bottom is falling out. and my other question is las vegas sands and mgm i should hold on to that i think. >> mgm is the best of those. it has more diversified flow. sei caesars entertainment i don't see any idea to own that stock i'm not feign of the group right now because of what's happening with the crack down in china and china is very worrisome to me even though i think hong kong will workout peaceably i don't want to be as exposed to china as i once was. all aboard. the cruise stocks are in for
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smooth sailing. royal caribbean and then carnival cruise and norwegian. >> two real estate heavy weights combining to become a $4 billion juggernaut you'll be interested in. then the headlines wall street left behind but what they aren't talking about could give you a head start on the most positive stocks in this market and get your best ideas ready for a rapid fire round of questions. the lightning round is just ahead. stick with cramer. [ bell rings ]
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>> at a time when the rest of the world is falling apart, what's worth owning? domestic replay is the benefit of cheaper gasoline. if you don't feel like picking individual retailers you can always do reinvestment plus. take washington prime. it was spun off by a gigantic group this past may. they own 54 strip mall centers, 44 smaller enclosed properties. these are high quality properties but more important
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they have an investment grade balance sheet to identify flans acquisitio acquisitions. we learned that they're guying them for $4.3 billion deal. they'll go by wp and plans to ultimately pay a dividend of $1 per share annually. plus he made a fortune. when he took over in 2008 it was saving and he sold them by $14.20 a share. magnificent 5,270% gain of which it was every step of the day. let's take a look at the chairman and ceo to look more about his new company and where it is headed. welcome to "mad money". >> great to be here. >> mark when i saw the deal, i figured the shock would be
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honestly up a couple of bucks. it didn't workout. you actually in a conference call september 23rd basically said look maybe the call lacked clarity and you needed to understand our enthusiasm. give us the do over because some of us that follow this group thought this stock should have been up as much as it was down. >> well, clearly i thought the stock should have been up. we thought this was a gang buster deal. we honestly thought that we were doing in a few months what it should have taken us three years to accomplish. so i was probably not as clear as i should have been because i was a little self-congratulatory. when i saw that the market fell out of bed i take these things personally and we said we'll explain it and spoon feed it to people. >> when you invision the combination it should have been -- it was a platform always wpg to do something down the road that could be like this. but it was instant. it should have been instant gratification. >> we couldn't be more thrilled about this opportunity. look at 120 properties in 30
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different states high quality properties a great balance sheet, marks leadership our proven leadership and our asset management ability you put that all together this is a winner. it's a simple winner. >> okay now i know that the wpg initially i'm going to try to play devil's advocate here. maybe 43 sears stores and we read the papers about sears but then i look at the increasing occupancy numbers and the strong new leasing results. is this maybe even i know -- let's say sear hearsay to pull out could it be an actual opportunity to raise rents. >> well, look the portfolio first of all is very diverse. sears is one of our many retailers and we both know eddie. i wouldn't count him out so quickly. i think there's a lot of dynamic opportunities in this portfolio. given where our rents are it allows retailers to be really profitable in our locations. that's why this has such good core demand.
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>> right. it's not like your new rents are lower than five years ago. >> not at all. >> the other thing is some many of these tenants represent a lot of space and very little rent. it's an opportunity to increase rent and bring more new and relevant tenants to your space. space turning isn't a bad thing. it's an opportunity. >> restoration hardware. we talked about how the old mold doesn't work. you need to do galleries. are there retailers that don't think that that's true and don't need a big gallery? >> well, you know, in our portfolio and the combined portfolio we have many different types of assets with many different types of retailers so a profit that might be perfect for restoration might not be perfect for another retailer. the beauty is we can find a home for almost every retailer. >> starbucks recently came out howard schultz saying he feels that the mall has become each year more relevant in people's lives. are you seeing just traffic
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declining in your properties here? >> we're not really seeing traffic decline at all. it's an issue of having daily drivers. we're adding more food and more services and gyms because they're going to do yoga and lunch and our job is to always be relevant. >> the whole idea behind wpg to begin with was to take malls that weren't getting the focus they could get to say how do we make these more relevant. they lost their luster a little bit. how do we bring them back to being vibrant. >> with the flow of funds here, the cash flow, you're able to raise that distribution and also do the remodelling. >> after paying a dividend the combined company will have over $140 million in free cash flow. this can take that money and put it back into the properties to make them more relevant and better places and great hubs in
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the community. >> this is precisely the kind of stock when you're looking at peaking cycles in the economy and commodity prices going down and you're wondering what's going on in iraq and russia and hong kong, think about home. think about this company. president and ceo of washington prime group and michael chairman and ceo of the realty trust. thank you so much for coming on the show. "mad money" is back after the break. if you ware a denture, take the simple test.
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new fixodent plus true feel. fixodent. and forget it. it is time. it is time for the lightning round. are you ready time for the lightning round. winston in minnesota. winston. >> how are you? big booyah to you sir. i want to ask you about starbucks. do you think it will go up any time soon given all the political conflict we seem to be going through? >> i wouldn't worry about that. coffee is peaking. that has driven the stock down. i like a lot of the news flow it's a good situation. we have been buying for the charitable trust. scott in maryland, scott.
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>> caller: hey jim, a big maryland blue crab booyah to you. >> my favorite. what's up? >> caller: thanks for taking my call. steve oil is getting hammered as late. >> it's got $2 more down side. it's not a good stock. if you like oil there's others that are better. let's go to jack in connecticut. >> caller: hey, jim, yukon huskies size booyah. how are you? >> i don't know i have a husky looking right at me and he's happy. what's going on? >> caller: i made some money from you with range resources. i bought it at a6 in april of '12 still had it in july when it was up to 93 this year but it's been sinking ever since around 67 too. >> it's too low the whole group is in free fall. you have to wait until they're too oversold and bounces. they are not moving out. we have to be patient. i tell that to testifymy our
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coportfolio manager. patience is the only thing working in oil. >> caller: hey jim. i inherited a sizable number of shares of chevron which amounts to about 30% of my portfolio surprisingly but i'm trying to plan for retirement and i know something is going on there at chevron. >> chevron is deeply connected with the price of oil. i think the stock could get down to 115 or 114. you have a lot of stock and there's too much in it. i know there's tax consequences but you need to sell some of that stock. do it tomorrow. stew in connecticut, stew. >> caller: hey jim. how are you? >> real good. how about you stu. >> caller: just peachy. >> that's good. you know we should talk stocks too. what have you got. >> caller: jim what do you think about delta airlines? it's about 20% off -- >> yeah the airlines have come down here. i like southwest air first and
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spirit next and am america and then i like delta. that's a little low on the pecking order. i want you to wait. stocks up 31% for the year. seems to be under distribution. solomon in florida, solomon. >> caller: hey jim, long time viewer first time caller. >> excellent. >> i'm here in sunny florida and i'd like to know what you think about canadian solar. >> i think because it's so sunny you like it. i like first solar. that's the preferred way. we have been right on first solar. a real winner 20%. i'm sticking by it. that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade. ♪
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>> self-help never seems to stop. the desire of companies to defy the gravitational pull of slowing growth or defend off trees of disgruntled act kvists can make up for a lot of what's going wrong around the world. what amazes me is the constant self-help activity. it's mind numbing. last year at this time ebay ceo told me he didn't want to spin off paypal from the core merchandise group. today ebay splits into two companies in order to unlock value with the implied promise that the two businesses can grow faster separately and it's stock enjoys a much deserved 7.5% rally though i wish they had done this earlier before they jumped in with both feet. >> this morning they decided it's not making enough money for shareholders so it spins off it's slow growing installation business and shareholders immediately reward it with a higher price.
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johnson & johnson announced the acquisition shows promising cures of diseases where nothing works now. or how about regeneron that announced the results of a phase two trial for a new drug that could help combat a difficult sinus disease and might lead to treatments for dermatitis or asthma. a huge break through which is why they climbed $5.52 on a tough day. it would have gone higher if it wasn't for the pull of the sector. they're no doubt sick of the endless decline of its stock and announces a $3 billion buy back retiring 10% of the buy back. you do that when you know that things are better than wall street thinks. they pay $950 to buy move. 37% premium in yesterday's close. they moved progressively into online sales. and zillow. cintas announced an astounding
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23% dividend boost. the signal that the business is strong and getting stronger. netflix tells us it decided to start making full length films to compete with the hollywood studios. apple which some told us wouldn't start selling new iphones in china will begin to sell them there in more than a fortnight. they decide to take matters into their own hands on top of the news yesterday that a poorly performing technology company is being taken private. that's a parade of good news. i can't recall another time when these dramatic moves were being made as a matter of course. they believe after parts of the economy peaked as i said at the top of the show that their stocks are undervalued and deserve to go higher. every morning i meet with my fabulous cohosts and go over the big stories today. talk about what we want to talk about for a whole hour of business television. at the conclusion of squawk on the street even after all the banner and mad dash and stock
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trading segments i marvel at how little this kind of good news we'd get to. today was no different. actually it was worse. this is why i can say while major parts of the economic cycle peaked you can't afford to sign off all together. there's too many companies eager to award their shareholders for you to take that drastic and foolish action. stick with cramer. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge
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might not seem so big after all. ♪ your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us.
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at the beginning of the show we talked about an ebola virus case now in the country. you'll see certain stocks act poorly to that. particularly the airlines. that's been a leadership group. people will say the airlines peaked too. be careful. the stocks that have cyclical exposure probably peaked in the third quarter which is where the real problems are right now in the stock market.
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lots of other good news. those were a problem. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer and i will see you tomorrow. >> all: cheers. tonight on the profit, amazing grapes is a wine bar and retail shop, the brainchild of a real estate developer who seems more interested in sipping than selling. this is ridiculous. even with more than $3.5 million in sales this past year, amazing grapes is operating at a loss and still can't pay down their mounting debt. this is a business without leadership or direction. i wish that you had passion for the business. you wouldn't be losing money. if i can't find somebody from within to take over amazing grapes and manage its assets, this business will be crushed. >> are you the grim reaper, or-- >> sometimes. my name is marcus lemonis, and i fix failing businesses. >> we're out of business. >> we were out of business before, we just didn't know it. i

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