tv Mad Money CNBC November 7, 2014 6:00pm-7:01pm EST
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check out the website optionsaction.cnbc.com and check out our daily segment inside "fast" every day. sigh back here next friday at 5:30 p.m. for more "options action." in the meantime "mad money" with jim cramer starts right now. 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. call me at 1-800-743-cnbc. it is not the economy, stupid. one can conclude that james
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carville's famous dictum about the presidential election has been turned upside down. we got an unemployment number that shows continued consistent job growth. earlier in the week the republicans took the senate from a belingering democratic party. lowest in six years and on top of yesterday's rally the dow gained another 19 points and the s&p climbed. nasdaq climbed. we spend a lot of time on discussing how our economy is the shining star around the world, the envy of every nation including china while our stock market is most robust on earth. it clearly meant nothing at the ballot box. while the voters want washington to do something, anything, work together, have a beer, investors want washington handcuffed and doing nothing. grid lock has been a huge win
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for the stock market and official verification of it like this week despite plenty of talk that the republicans can work with the president is enough to continue to rally. why does grid lock work so well for the market? why is it so darn bullish? it allows us to focus on the stocks of individual companies and buy them if we like what we see without being distracted by washington. almost all of the big selling flare ups we have had during this remarkable sell has been caused by pointless blind sides from washington. deficit wranglings, meaningless government shutdowns, ridiculous, sequester. these have all accomplished nothing. we have gone up despite washington's attempts to accomplish anything at all. i'm not saying either side here, republicans or democrats. i am talking about washington as
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a whole. this should keep washington out of the business pages. with the even more benign political mind what is in store. all can paint a larger portrayal of the environment. first there is white wave, i stressed it in "get rich carefully." terrific brand extensions in supermarket including healthy horizon and earth bound farms whose greens i use at my dinner table. i think white wave will report similar numbers to hain celestial. go over the report from whole foods who had excellent results, rejuvenated with technology and better values.
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whole foods is still a buy after its monster move this week. contrast these organics and naturals with the short fall from general mills. gis tried to get natural and organic with acquisition of annie's. i have been urging the whole group of old school players to buy a hain. those last two have doubled while big boys have stagnated. oil has been nightmarish for a while although it stabled today. that allowed a second day of rallies from big independent oils that have proven themselves time and again. the ones investors are really worried about with crude plunging into the 70s are the smaller fries including halcon
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resources. this is a must listen to call. it is a major focus for the market. so many hedge funds believe the smaller players like halcon have borrowed too much money to drill and now won't be able to pay. why don't we see what h halconsays. we get wayfair's first quarter out of the chute. will this be the next great furnishing play and market stir for high quality stocks that can profit from a more robust housing market? tuesday is huge. you know why? 11/11. that is singles day in china, stupid. that is the equivalent of the chinese celebration of christmas, valentine and your birthday. we normally wouldn't care but with alibaba i think this
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holiday is spurring up part of this run which continued unabated today with alibaba rallying $2.99 to close at 114. i say what a horse. we also hear from the largest home builder in the united states. dr horton. it punches above its weight in the economy. horton needs to tell us things have gotten better in order to make people believe the recovery is really taking hold. and tuesday is the day we salute our veterans. if you didn't get to watch last week's interview with howard schultz i urge you to do so. schultz is organizing a huge concert. while i'm at it i want to send out good veterans day cheer to my dad who has been a bit under the weather lately. wednesday begins the parade of retailer earnings when we hear from macy's and j.c. penney.
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macy's is a core holding. with mixed picture of wall stores, abercrombie and finch down 5.88 or over 16%. j.c. penney giving us bad news. we could use cold weather to get the stocks marching to a new tune but we don't have it yet. 50 degrees last night. not the weather for retail. cisco reports after the close. cisco up almost 13% this year. solid dividend. i think navigated the head winds of a slowing growing economy. thursday we got the retail gamut, wal-mart, kohl's. these stocks moving up nicely on lower gasoline even though first two have warned things aren't as hot of late.
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one of the chief reasons oil has been able to come down is belief that the slow down in the chinese economy has accelerated. a lot of numbers come out each month. the one we get friday, the china trade balance has been a reliable tell to how much has been exported and imported. china has thrived on exports and now seems it is more of a consumer society with money spent on alibaba. the bottom line for next week, grid lock among greed is good and allowing us to focus on companies and the larger themes that have worked so well this year which is exactly what you need to do next week to profit from washington's delicious absence from our investing decisions. rose in rhode island. >> caller: how are you, baby? >> i'm okay. we had the really last night for the gale. what is up?
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>> question on cyberark. would like to know what your take is on that stock? >> fire eye has been a disappointment. palo alto networks has gotten too high and cyberark has good things coming for it. i think cyberark has more room to go higher. barry in georgia, barry. >> caller: love the show. >> thank you. >> caller: thinking of buying underarmer or skechers. both are up over 60% this year. under armour is much more expensive. >> i think skechers doing well. i pull up with kevin plank. i feel so confident. he spoke last night at our gala. there is trepidation about the previous quarter. it was good, period, end of
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story. aura in ohio. >> caller: how are you doing? >> not bad. how about you? >> caller: good. i'm calling about the once beloved michael kors. considering the stock trades at 15 times earnings. >> it's entirely possible it could be overdone. kate spade reported and kate spade was so good. urnez reported and it was good, too. you have two more expensive hand bag accessory places shooting the lights out. i say grid lock is a huge win for the stock market giving us a chance to focus on themes. more "mad money" tonight. what is better than going to the movies? find out how blockbusters can make the stock the star of your portfolio. and then the price you pay at
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in this environment where interest rates remain at ridiculously low levels bond market equivalent stocks, a nice paying dividend stock with a high yield can give you a much better return on treasuries and the potential for real capital appreciation. some of these seem very much off the table. brings me to epr. the real estate investment trust trades under the symbol epr. this is a very diverse real estate investment trust that owns everything from mega plex movie theaters, water parks, golf complexes to educational properties like charter schools. epr reported last week company recovered 1.08 from funds.
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even better management said they are finding good takeover targets that should help bolester the numbers and dividend going forward. epr giving over 60% return with reinvestment dividends since we brought the ceo on the show. let's take a closer look with president and ceo of epr properties and hear more about the latest quarter. welcome back to "mad money." >> it is great to be here. >> i watched the other guys interview and they talk about you are a box office receipt play. i am going to ask you about a business we never asked about. i think the election said we like charter schools. is there anyway to read that through for more acquisitions. >> it was a ringing endorsement for it. i think there will be continued in those places where you have caps on the number of charter schools those will start to come
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off. where you have some local opposition it has been difficult. i think that will start fading away. i think it will be very healthy for the industry. we had some frustration with even though we get state reimbursement some local pockets have been constrained. i think that will start to fade away as the political alignment supports charter schools. >> one thing i like so much is you're competing with very few when you do something like a charter school. >> we compete with very few so we dominate a market and get good yields. because people aren't familiar with that in the capital markets they sometimes look at that and maybe discount us a little which we don't think is appropriate because we demonstrated such a good strong portfolio performance. >> it has been consistent. what do you think is the -- a lot of the movie theaters are kind of cool. they are beautiful and make them new. that has to help your business
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the new style of movie theater. >> the luxury theater has increased the reach to parts of the population that weren't going to movies as much. even in cases where we are doing luxury conversions with wider rows and seats we are taking 50% of the seats and emissions are going up. spend is going up another 10%. the sleeper is when you take out that many seats you don't need as much parking. now we have development land in the parking field. >> do we have to worry about snow and ski resorts? >> they look good and water parks ended a good year. snow is looking really good. the technology with regard to snow making moves along very handily and gets better and better. snowboarding popularity and development of train parks makes it sustainable. >> let's talk about a wildcard and this is the casino property.
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where are we? >> we got involved in that casino project before the great recession and it got scuttled with failure of other capital partners. now the state of new york has opened up to casinos that is week expect the award of licenses they said before the end of the year. we expect it in november. this is not in our guidance but carrying it dormantly. >> that's why i say it could be worth two or three bucks because it is not in the presentations. >> i think nickel to 20 cents asset over the couple of years as it comes on or more. and with the multiple it is a couple of bucks in the stock. >> i want to get a sense because gasoline is low. you got your pulse on entertainment, on ski resort, on this casino, on charter school. are things better? >> things are very good. actually, our industries are very healthy. that is why the remodels are
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going on in the theaters and why some of the improvements going on in the ski. things are hitting on all cylinders very well. >> otherwise i would tell you i got a 60 inch big screen from costco. that would have been competition. >> maybe. people are really enjoying going out today like they always have. this is lesser cost a opposed to the ball game or live performance. >> last question. i did indicate that we feel that with the acquisitions it is possible to boost your pay out. i'm presuming that is a reasonable assumption. >> i think so. we are expecting to adjust our dividend income after the first of the year. we have had growth in cash flows of about 5% this year. we expect 7% to 8% next year. somewhere in the range. things are looking good for that. there are some portfolios because some of the non-traded
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now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably. we call that predictable. thrillingly predictable. are the home builders finally breaking out here along with so many other groups. this sector represented by the xhb. one of the worst performing groups in the market. these days we build about as many homes in the united states as we did when this country had half its current population. ceo of bernard says we have been muddling around at recession levels five years after the crisis peaked. if you ask me that is pretty pathetic.
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i am seeing two signs that this group is about to join the bullish party, a flaw in lending and lower gasoline prices. there was a little story in the "new york times" today fannie mae to ease rules on mortgages and it contained the following paragraph. even as the government is moving ahead with the changes, some housing analysts had concerns contending that the program could lead to higher defaults. here is the thing. higher defaults may sound bad. it would be a huge positive for the home builders. in this country it feels like we have been heading towards a policy of zero defaults. if a bank does somehow have to foreclose there has to be enough collateral that it won't take a loss in other words the people who can borrow here are the ones that don't need the money.
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that is a reason we have recession home building. this goes on to create a bizarre contrast between those who want to stimulate lending by lowering down payment on a home from 20% to 3% and those who want to ease credit ratings for home buyers. do you know you need a fico credit score around 730 to get a loan for a bank. that is ridiculously high price for the american dream, come on. the 20% versus 3% down payment, there is a big range between those two numbers that would make a lot more sense for fannie mae. deals can be made that would make it so it isn't as exposed. something that i like that is working here is something former head of citi group talked about. at the gala last night he pointed out that the whole banking system has been pushed
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towards taking no risks by the federal government, the same government that is trying to restimulate housing. with that mindset you aren't going to see a return to the old days when we had twice the number of housing starts we do now. the mindset has to change. the regulators have to let up with that and bankers have to be less fearful. this extension of credit from fannie mae would be good news. the bankers are reluctant to keep mortgages on the balance sheet. in other words, we need to make it so not only rich people get loans. the other change that can help, cheaper gasoline. it matters. before the housing crisis the cheap building areas were moving further and further away from
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primary job areas. they were available to immigrants who didn't have to fear they would be deported so went to low to no documentation loaners. undocumented immigrants can't apply anymore. there are no more loaded dock loans but is cheaper gasoline. that could spur home building in areas where many builders own land but have been reluctant to build. the bottom line, fannie mae making it easier for banks to lend, cheaper gasoline. we might return to a robust housing market in this country. frankly, that is the price of returning to a stronger, more realistic housing market which could lead to more job creation and a healthier economy. let's go to tom in washington. >> thanks for taking my call. >> of course. >> caller: my stock is hcp. should i buy more now or wait
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for it to come in and then buy more? or another suggestion? >> i will tell you, i don't think i want you to wait. i know that it is already up huge this year. this is one of my favorite real estate investment trusts. it still yields just 5%. you know what i say? it's very good. this is a good price. pull back a little from the top. let's go to lee. >> big boo yeah from north carolina. how are you today? >> real good. how about you? >> caller: doing great. would love to hear your opinion on cree, local company here in north carolina. i bought it at 50 and all the way down and would like to hear your take. >> we don't care where a stock has been. we care where it is going to. i'm not that happy with cree. you can only do a bad quarter so many times before i say if that stock goes up at all i think you
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have to sell because this is just not working. led market not strong enough. i don't like the stock. they can come on the show and tell me why i should. raymond in south carolina. >> caller: hello mr. cramer. >> yeah. >> caller: very interested in agnc, your opinion? >> way too risky for this guy. a lot of people want to reach for yield. that is what i call a reach for yield. we don't know how they are positioned versus if rates go up and suddenly the fed decides they have to take rates up and you are going to be bushwhacked on that. no to agnc. too much risk. home sweet home. we are returning to a stronger more realistic housing market. the home builders might be able to join the bullish party. there's much more "mad money" on the way including how man's best friend and your feelings have become one of wall street's hottest stocks. plus one way to keep your
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money climbing year after year. we are playing am i diversified. get in on the action. let's close out the week with the questions on the lightning round. stay with cramer. in this accident... because there was no accident. volvo's most advanced accident avoidance systems ever. the future of safety, from the company that has always brought you the future of safety. give the gift of volvo this season and we'll give you your first month's payment on us.
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what's working right here right now? let me tell you about a stock that has been absolutely on fire. it's hsic, the world's number one distributor of health care products and services for dentists and veterinarians as well as being a major supplier of vaccines. the dental supply space including items like dental chairs and tiny ones like transplants that end up in your mouth. 445% market share in the u.s. their vaccine business is taking share and benefitting from the affordable care act. henry schein making tons of acquisitions. reporting a stellar quarter with higher than expected revenues up 11.7% year over year. the company taking market share
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across all major business groups and strong sales in north america and overseas. no wonder the stock had a great quarter. now, henry schein rallied more than 68% since we first interviewed him two years ago. let's check in with chairman and ceo of henry schein. welcome back to "mad money." >> good to be here. you have been 25 years as ceo of henry schein. during your period what has most changed for this company? >> the most change has been i guess the size, but technology. >> there are things that you are doing that is really stealth technology. i always thought of you as dental chairs. you are a big data company and digitizing a lot of things. >> correct. you have impression materials
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here. these are the products that are used to take a picture. we are digitalizing that where you can take a scan of the mouth, take that information, send it to a computer and be in and out of the dental office within about an hour. >> when i have had them it has been four trips. >> it will change. >> you can do that? >> yeah. >> everyone knows when you do an implant it is really expensive and it is so time consuming it is one of the last things you want to do. >> the crown or the bridge will be totally digitalized. >> you also -- we talked about dental. i have been dealing a lot with animal health. this animal health veterinarian business is a fabulous growth business. >> animal health business is growing particularly companion
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animal part because baby boomers are buying more pets. >> i know there is insurance now. are they spending more money on their pets? >> we know the consumer cares very much about their pets. of course, the veterinarians take care of the pets. during the recession we did okay in the veterinarian business. >> one of the things i thought was amazing about the conference call i have been saying slow and steady henry schein. a lot of growers are struggling to have 3% to 5%. you did 6%. is this new products and technology? >> it is a combination of everything. the economy in the u.s. is leaning in a positive direction. germany and the uk are leaning in a positive direction and australia is doing very well. >> you made a point of saying that japan is good. you just moved in there. why is japan the second largest dental market?
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>> japanese understand oral care is important. there is an understanding that good oral care leads to good care and good care of the body in total. there is a direct correlation between oral care and health care. japanese understand that and the government is paying for it. >> in our country all you hear is people cutting back to companies not giving dental care. how can people afford it? >> it's a mistake. because at the end of the day we are getting more and more evidence to prove that good oral care results in better lifestyle and better quality of life. >> mother told us that you take care of your teeth. vaccines, we hear a lot in the news. you do an ebola project. how successful in our lifetime, what are we going to have vaccines for that we are not thinking about now? >> we are the largest provider in terms of growth of products to office-based physicians. in other words, physicians that take care of their patients outside of the hospital.
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we are the fastest growing business in that field. a big part of that business is the vaccines. we are doing very well in the vaccine area. i think overtime there will be more and more vaccines available for more and more diseases and will prevent people from getting sick. >> is it likely my physician who gave me my flu shot was using a henry schein product in new york city? >> two physicians were the largest provider of vaccines as a distribution company and the chances are the flu shot came from us, big chance. >> when i mentioned henry schein i was watching a video by kevin spacy. he said you have to tell stories. i realize i have not told the story of henry schein because i don't meet a lot of people who own your stock. what do you tell people? >> the bottom line is we have a phenomenal culture where we take care of what we call the five constituents that make up the henry schein mosaic of success.
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our suppliers, best vehicle to bring to markets. our customers we help them run a better enterprise. we have a terrific team. we provide consistent earnings stream to our customers and investors and then we deeply engage in social responsibility. take all five of those and successful company. >> it has been a huge winner. some stocks are easier to own than others. this may be one of the easiest. "mad money" is back.
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over. are you ready? it's time for the lightning round. let's start with brian in new york. >> caller: hey, jim. >> i love staten island. i am there regularly. >> caller: all off shore drillers been getting hammered. best in the field is sea drill? >> i was in shock that trans ocean drilling was down, too, and then came in the black as oil went up. i'm not going to recommend anyone to join me in the house of pain. charitable trust happens to own esb which i think is better than sea drill. let's go to corey in maryland. >> caller: i wanted to know what you think of micron technology? >> why don't we go a little more
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upscale and buy skyworks solutions? micron had tremendous numbers but i like the proprietary nature of skyworks. let's go to frank in new york. >> caller: hey, jim. i got a question for you. irm, they seem to be going up. >> it is too high now. i want these stocks when i get them under 5% yield. let's go with hcp. i am intrigued iron mountain but i missed it. i can't go in after i missed something. francis in illinois. >> caller: the windy season. >> the bears, maybe. >> caller: i want to add a dividend stock to my ira
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portfolio. buckeye partners, bpl has great dividends while kmi's dividends are less but seems to be positioned for growth. which would you recommend? >> i have to tell you i was going through the buckeye partners quarter today. you brought attention to a fantastic limited partnership. you are looking at dividend static. that payout is about to go up. i am still going to say kinder over bpl. i was shocked they delivered that quarter. let's go to adam in new york. >> caller: how are you doing? >> okay. >> caller: my friends are like i watch that guys show. i want to ask you about avav. >> i know martha stewart likes drones. what is martha not able to do?
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it is lockheed martin is the one we like. it is back to a level where i think -- jim in california. >> caller: mr. cramer. >> yes. >> caller: about a year ago i bought opco hoping the drug was successful. the stock is flat. >> i'm sticking with it. sometimes he plmakes you money instantly. i would have thought more at this point but hasn't delivered that much this year. let's hold on to it. david in new york. >> caller: your input on quaalcomm. had my eye on it since the beginning of the year. took a hit this week and wanted to get your thoughts. >> the chinese are investigating and it is a lawsuit stock.
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if i'm going a lawsuit stock i would go with a bank. texas instruments is more attractive. sorry quaalcomm, i know it doesn't grow like you do, i like texas instruments because i can't take the risk anymore. the government risk is too great. joe in my home state of new jersey. >> caller: mr. cramer how are you tonight? it's a pleasure to talk to you. >> right back at you. >> caller: i want to thank you for all your enthusiasm and great advice. >> thank you. >> caller: and the stock of the night is a stock that has been down and out but i think it might have some potential upside in the future. the stock is sony. >> just had the upside. you saw it go from 16 to 19. i do understand why you would like the japanese market. it seems intriguing to me but i'm not going there. that is the conclusion of the lightning round. the lightning round is sponsored by td ameritrade.
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that's talent. america's talent. >> from hawaii. >> walley in washington. >> yeah. from the land of overpriced property. i need help on improving my golf game and telling me if i have a good stock or not. >> can this incredible action in go pro continue? >> i'm uncomfortable with this. why don't you hold the dog? >> remember that video of the goat surfing? how about the bull surfing or bear surfing? no, it was a pig. >> rolling out.
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>> i intend to use it on my african tortoise cactus slow motion video. dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family,
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it has been a wild week. despite all of that volatility if you have been listening to me you were hopefully in good shape all along. and that's because we are keeping things diversified. let's kick it off with this week's edition of "am i diversified" with a facebook question we received. wow, great yield. someone downgraded. that is the pm kind. this is domestic. gilead i like the new hep c drug. bank of america currency issue came in late. don't think much of it. apple just delivering. alibaba i say goes to 120. so far we have been spot on.
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chinese, internet, drug, tobacco, bank, technology. perfect. facebook people you rock. let's go to allen in new york. >> caller: professor cramer. >> i feel like i'm getting tenure from everybody lately. what is happening? >> caller: apple, gilead, ge, kmi and at&t. >> this guy likes dividends. who can blame him? it is a tall road. got a lot of different hedges in place and will yield more than 5% by year end. that is ridiculous. general electric looks like it is blaking out here. ge looks like it is going to 28. gilead covered. apple once again. we like apple. we have technology, diversified, technology, drug, oils, let's
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call it pipeline oil and teleco. all good yielders. how about rick in florida? >> what do you got? >> caller: i got gm, cfx, ktc, twitter and what was the other one? cy. >> cypress. good yield. tj will pull it off. i know it's not skyworks solutions which everybody is crazy about. i don't blame you because skyworks is good. we have cypress with 4.3% yield with stock. semi conductor, general motors, the basis being form. get aboard twitter $40 seems to hold. railroad, retail, semi, auto.
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i'm going to say semi is different from internet and bless all of those. twitter, we got a new ceo in there, bingo. stick with cramer. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪ they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids
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make the world predictable. thrillingly predictable. in a 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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we call that predictable. thrillingly predictable. it was an amazing week. i think it started dawning on people by the mid of the week that the consumer is much healthier than we thought. it started with the whole foods quarter when we realized people were spending more and that had to do with gasoline coming back down and job growth. we saw stocks like target roaring, wal-mart, companies that aren't doing well. what happens when this occurs? it means there is a big change ahead. i am telling you the retail investor and the retailers and the home builders are going to need a place to watch next week. no one is counting on them to go up at all. oil, going down. there is always a bull market somewhere. i promise to try to find it for you here on "mad money."
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