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tv   Mad Money  CNBC  December 1, 2014 6:00pm-7:01pm EST

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>> walgreen's, august was an awful month, but stabilized into the fall. it's catching a bit despite it was down a percent today. walgreen's. >> thanks for watching. see you back here again tomorrow at 5:00. meantime, "mad money" starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always homework in summer and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm trying to make you money. my job is not just to entertain you but educate you call me or of course, tweet me at jim cramer. at what point are oil prices too low, too low to keep helping the stock market go higher? isn't that who what today's
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session was about, dow declining, nasdaq plunging 1.34%. yep, the sellers are worries something negative related to the plummeting price of oil could be lurking something that might clubber us as we don't expect it. from the single session pulmoling. let's talk about the downside of the oil bust. a bust caused by supply and less than healthy demand because of china's slowing growth. while we have 34 states that are takers of energy versus 16 states that are makers, we know there are ramifications beyond mere production. today for example, the rails got slammed, hideous because many investors figure we're
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witnessing the end of the marginal oil being shipped by train trade. no matter the oil represents merely 3% or some ways fracking sand is a bigger ticket. we know the railroad stocks are continuing higher sales for oil and they may not materialize. norfolk southern was off today. oil companies on use the rails in places where there is no pipeline capacity because it's much more expensive to ship by rail, but with the massive decline in crude after today's rebound, the marginal cost with access but no pipe may be indeed too high. really worry for the future and industrials that took a major plunge into oil like general electric which is inquisitive getting hammered. it was a huge positive to move into oil and stock dropping and
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same goes for dover and i talk about this not enough but it's terrific. very visible oil business that's going from being an asset to a liability in three months which is why jp morgan declined it. there are credit worries. i don't want to finger any one company because we don't know how they are hedge skd and don' want to cause a panic but stocks are down and not because they are oil and gas companies. it's because they borrowed a lot of money to drill. borrowed more than their current cash flow can cover. they own a house, and they can't pay the mortgage. that's the fear. now that could cause real issues if the price doesn't go back up. the continent l resources, one of the most successful companies thought oil was done going down at 85 and took the hedges off
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continental. his stock has since been cut in half in roughly two months time largely perhaps some feel of that misjudgment. now i think the savings to the consumer far out weigh the losses to the oil producers, that's why i'm so bullish and the hundreds of thousands of workers are more than trumped by all the people who do well with oil and gas so low. you know what it is. it's the equivalent of a tax cut for 317 million americans and that's more than going to make up for major defaults among over stretched players. defaults are going to be among miners. don't forget the ripple effects. gasoline is a huge toll on any company that needs to get goods to market. numbers go higher for jobs of companies. until today they were soaring. they went up too much in advance but are real winners long term. heck, this are too many domestic beneficiaries to count if oil continues today's bounce and
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again, i hounded you about the beneficiaries. i'm doing this piece because i feel it's important to talk about why we went down and given the cost of drilling is so low, it won't be catastrophic for the majority of companies as mid $60 pricing representing big profits. particularly those drilling until the eagle ford. why? because there are no dry holes. the market allows producers to lock in prices as high as 75 to $80 out several years so if you're drilling at $70 a barrel, think about the great gains you're getting. you don't want to stop. plus, these companies are flush and if they believe oils are going to stabilize, they can buy minor players well below and use excellent balance sheets to refinance the debt some of these have taken on. what i'm far more concerned about is some sort of ripple effect from overseas we can't
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consider or fathom. if major russian banks go under, i don't think it's possible to go unscathed. really kind of gave them hands off. it doesn't matter, though. if the collapse of cypress last year could hit our banks, the collapse of russia could, too. even though we're much more insulated in better shape than the 1998 and the price of bristol myers and the answer but you don't utter that wisdom until bristol myers gets hit. the collapse of nigeria heavy he dependent on exports would have impact on us and the revolution would given so many of our companies do business and it's difficult to ill mag gin a worse
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government than now. yes, the failing opec country could produce a shock and major drop off in drilling that could be stressful but strictly bends slightly and not break at all for canada and mexico from what i can tell. here is what i think could be a bigger problem and visible in your screen today in the sell off. high flying text stocks that are big, namely the global economy is slowing pretty dramatically and oil is the symptom that it's getting worse, not better. in other words, oil is joining copper and oil in free fall as tales china's growth is stabilizing. industrials and tech companies were hammered today and they do. they have a lot of business overseas because if commodities are that weak, then there have to be structural issues down the road. i can't defeat that. europe is in sad shape and china seems helpless, worst of all this is where i come in as someone who is nervous, neither
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china nor europe seems to have a cohaerent plan to turn things around. again, don't want to get too negative about this, the reason if you notice the early morning s&p future reflect weakness but the market lifts after selling at the opening. wipe? why does it lift? because the sell income europe is about capital here. they sale their weakness regardless of the stocks and buy the dollar strength with bonds and stocks. their weakness is indeed our strength. so i'm csure we got too excited and the energizing impact on the consumer as november rolled out to conclusion but you know what? i like those stocks precisely on this pull back. i recognize we have a lot of companies that need a stronger europe and china to thrive in tech and oil can be a barometer of weakness and a cause of decline, as in the case of russia and several oil producing
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nations. in the end, though, the money flow is here and therefore any decline is viable of a couple sessions of weakness if you buy shares that aren't economic licensetive with good u.s. businesses, health care, biotech or a beneficiary from cheaper gasoline and travel and leisure that's domestic. you'll hear from one later in the show. here is my bottom line. call me a stkeptic but not a pessimist. to be a manageable if not viable between now and year end. mallic in florida? >> caller: how are you doing? >> well, how are you? >> caller: i have a question about the polo loco. i have 20,000 stocks i've been holding on a 40-79 and you see today's prices are so much down,
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i have more than that. i sold out gold on $38. i sold it like 5,000 so i still left over 20,000 plus so my question, what should i do -- >> no, i'm not a fan. i'm sorry, i'm not a fan when it hit mid 30s, i said eject. i never looked back. i don't like it. i like fiesta. much more than el polo loco. robin? >> caller: hello, jim. >> yo. >> caller: i'm calling about hertz global htz been all over the place for the last three or four months. we got carl icahn and entry or reentry and i'll lost. >> okay. i like to own up situations where i get too enthusiastic. i have old money and getting rich carefully. irregularities equal sale.
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i ignored discipline and i really felt like that i steered people too aggressively at hertz. getting bailed out by icon is good but we don't have financials yet. the accounting irregularities mean i cannot recommend hertz global. got to be true to my wisdom and word and to my mistakes. all right. sure there is downside to a possible oil bust that is not just short lived and manageable but viable from now until year end. on "mad money" tonight, can this domestic player survive? i'm sizing up the industry with magnum hunter and cheaper gasoline means more money to shop, right? not if you believe the headlines but does this black friday go bust? i got eye opening numbers that may shock you. find out where the real spending is and what it means for stocks and it's up 80% this year and could be getting started. i'm taking a lap with the top brass at sketchers. stick with cramer. for over 60,000 california foster children,
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the holidays can be an especially difficult time. everything's different now. sometimes i feel all alone. christmas used to be my favorite. i just don't expect anything. what if santa can't find me? to help, sleep train is holding a secret santa toy drive. bring your gift to any sleep train, and help keep the spirit of the holidays alive. not everyone can be a foster parent,
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but anyone can help a foster child. after the hideous decline in oil last week taking the price of crude down, even if today's rebound exactly how worried should we be about the energy complex tonight find out the answer, we checked in with some of the more junior oil and gas producers whose stocks are e vis rated. i'm talking about companies like magnum hunter, the $746 million exploration production company that has high quality assets in the shales and rapid growth and make it a capital expenditure budget. a number of plans to clean up that balance sheet including selling some ache rage and spinning off the pipeline as a
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mass limited partnership but the recent decline in oil prices considered to be a real blow even as 60% of the production comes from natural gas that's going higher and doesn't matter. stock lost 26% of the value year to date down 50%. with the stock trading at $3.91 how low can it go? has it been punished enough or panic? let's take a closer look with the chairman and ceo of magnum hunter. hear about how his company is doing and where it's headed. gary, welcome back to "mad money." i figured a company that got true and decided to get out of oil at the top and go into natural gas, which is very sticky not going down would be rewarded with a higher stock price but it doesn't matter, does it? >> the blood bath is for everybody. it doesn't matter whether you're an oil company or gas company, we're being treated the same. >> okay. so tell us when people say look at that debt, they don't have the cash flow to cover the drilling program. what's the solution for magnum hunter?
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>> well, the thing that's really changing for us is, you know, we sold 700 million of the oil property. we made a decision to focus, why? we have the best rock. we're in the heart of the play. that's a key to the success of all these junior oil and gas companies are you in the heart of the fringe of the play because when you have a low commodity price like we're dealing with today, you have to have low finding cost, drop the cost, be able to find reserves cheaper than anybody else and do that without good rock. so that's key number one. so our decision is that we felt like gas long term was going to be the place to be. i haven't been bullish in the oil for almost two years. >> i know. >> i felt like oil prices were unsustainbly high. >> what are you doing selling balk. >> today the properties we sold, the 700 million that we've gotten are probably worth 200 million to the buyers. so we were fortunate. we're very well hedged.
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so you talk about liquidity. we decided to make a decision to put in a term loan. we did that about a month ago, locked in for four years. we have no barring base reduction that will occur with our line of credit like most. >> you hedge meaning you sold a forward natural gas or also for the oil you have left? >> all the oil is hedged 100%, only until the end of the year. >> right. >> but we only have a couple thousand barrel as day. >> right. >> we're a gas company. you said 60%. we'll be 90% by the end of december. >> tell me, if you can sell it at $4, you're fine given the high quality. >> talking about finding cost of 50 cents an mcf. we can make money down to two, t 2.25. >> you got a monthly cash dividend on a prefer and d preferred and e preferred. they are yielding 10, 11%.
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that might be an option for people. >> if you want to -- if you're comfortable with having a dividend you can buy a preferred. >> not worried about coverage. >> no, we have 140 million liquidity. we can cap the budget to 100 million and have some of the most explosive growth in the industry because we have a slug of wells coming on. >> where is oil going? you have a clear head. you knew to sell. >> we're not in control, that's the problem. you know, i think the situation over with opec has a lot more to do with russia, has a lot more to do with iran than destroying the u.s. oil industry. so i've lived through four or five of these cycles and been in this business over 30 years now. it always lasts a little longer than we think. we're counting on a year, year and a half of lower prices. >> do you think that we are at the mercy of samson and the sell and drop down of the ipo?
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>> the samson, the remaining assets, i'm not counting on those selling. i'm assuming we'll keep them and hold them. the mlp we're on schedule to take that public early next year. we got bankers hired, lawyers hired, we got accountants hired. >> this tells me people are overreacting. >> the market value of magnum hunter today is equal to my equity value in my pipeline alone, forget my other assets. >> let's leave it at that. that's gary evans, the chairman ceo of magnum resources who never docked a tough question about his company or the industry. "mad money" is back after the break. coming up. >> we did $9 million in one day in china. >> why sketchers isn't sweating black friday concerns and who is winning the war at the shoe store. >> our monotra has to be adapt or die. >> stick around and stay a step ahead.
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who do you trust? the national retail federation survey of online shopping or the actually numbers themselves. when in doubt i say go with the numbers. this morning we were bombarded with national retail federation figures that showed not only sharp declines on black friday and the rest of the weekend at the brick and mortar stores but we read and i quote, the web failed to attract more shoppers or spending over the four-day holiday period. whoa. sounds pretty dire, right? there are lies, dang lie s and statistics by mark twain and has statistics. some are straightforward and not misleading. what do they say? the statistics say it's an amazing weekend for online shopping. take general advisors, while the stock is a huge bumper, we're fond of the work they do in analyzing the e commerce numbers what does what does channel advisor tell us? in internet research by figures
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by the internet media, victor anthony, we learned that quote online sales up 23% year over year from thanksgiving day through cyber saturday. that doesn't sound like that much of a decline or how about this? amazon up an average of 32% and that's before factoring into today's sicyber monday. i got a good fuel for what they do but if you want another source, com score. not as good i think as ecom but the national retail federation, definitely. com score, the chief of online numbers says e commerce spending rose 32% on thanksgiving day to 1.01 billion, huge gain. how about black friday up 26% to 1.5 billion. i say fabulous. now offline, mall based shopping. come on, i called out that weakness time and time again. so for none other than starbucks
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which sold a sunset of the shopping malcol coming. some retailers keep delivering, deliveri delivering, delivering, think of costco and falling gasoline prices with prices they charge you not falling as fast. of course, we all expected the brick and mortar retailers would do better given the huge decline at the price at the pump and if you go back and read the comments about the holiday season from say macy's, target, and walmart, they were not as robust as stocks which have been on fire would indicate. the important way is not that online flopped, it's that black friday and the malls no longer important and online sales are more important than ever. when the smoke clears, we see a nice rise in consumer spending for the holidays. we have to track it more accurately, not through sampling but by truly an lit tinalitic, h
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the data from the national retail federation. how about we go to wb in iowa, wb? >> caller: good evening, mr. cramer. >> good evening back. >> caller: this is wb in des moines. i want to thank you for my every evening fix of "mad money". >> thank you for mentioning it. >> caller: i use "mad money" tips. >> good. >> caller: you mentioned stables in a possible office depot opportunity. on that thought i invested in straps and been happy. i want to know if you have further thoughts on either one of the stocks or the opportunity between them. >> i think these companies are taking amazing action and closed staples including the one on springfield avenue that never had a soul when i was in there and i felt like it could be a good bowling alley and office depot is probably the better of the two. i want you to stay with them and thank you. the show is about using your
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"mad money" to buy stocks. i'm proindex funds. i want "mad money" used for this thing. well done. well cdone to wb. mike in new york. >> caller: yes, mr. cramer, a pleasure to talk to you. >> same. >> caller: i made some money with some of your quotes. i bought j.c. penney at 10.20. i bought $110,000 worth of it. >> whoa. >> caller: i like the store. do you think it will go to 10 or 12? >> i like mine, too. it's a good one. i also like the one in midtown, but i've got to tell you that's a very big commitment and i don't think it's going -- i think j.c. penney will be a long-term turn. i think you're puts pressure on yourself. i think mr. olman is running it. you have to own it for awhile to get your money back and i'm not saying sell it but i'm saying you have to own it for awhile. jerry in california, jerry?
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jerry, what's up? >> caller: yes. >> go ahead, you're up sir. go ahead. >> caller: you're on air jer. hi, jim, for several weeks you strongly recommended rite aid so i bought it but in less than two weeks it dropped in half. jim, since then i have not heard anything about rite aid from you. >> i think rite aid is terrific. i think it's good -- let's be careful because it's not done in half. that's all right. i accept the criticism and i've been behind rite aid for several years now and not backing away. has this gotten tougher for rite aid? they had a couple tough quarters but i believe in the long-term situation right aid is good. short term, have i been right?
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no, long term have i be right? yes. black friday, cyber monday, super tuesday, this weekend's retail numbers tell a bigger picture and that's back and better than ever and that online sales are key. there is much more "mad money" ahead including the secret to a sneaker stock's fancy footwork. forget the show biz, this is shoe business. up over 75% and find out if it can run higher. from what you wear on your feet to the food you eat. polo tropical is hot. i'll take your calls on the lightening round. stay with cramer.
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joyous, approach the ending of the year, it's worth highlighting a strong performer. continuing to rally through the holidays into 2015. i'm talking sketchers skx. perhaps the hottest footwear
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company out there and one that pulled off a tremendous turn around this shoe may recollecter has a fantastic popular product line and a different blend of whole sale and retail businesses. they recently opened the 1,000th store and on top of that, they are fantastic marketers on television witho outrageously funny ads and demi lovato is wracking up hundreds of thousands through instagram. 500,000. best of all, sketchers is putting up incredible numbers. the company last reported in october posting a magnificent 22 cent earnings beat off a 91 cent basis. wow, management gave up guidance, first quarter 2015. first time in recent memory sketchers suggested estimates are too low. the stock gave you 15.5% gain since we last spoke to the ceo in july, more than 30% since the previous interview. in short, sketchers is on fire
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and even relatively cheap. i visited the sketchers showroom in manhattan, quite exciting and spoke to the founder, chairman and ceo of sketchers and david wine burg the chief operating officer take a look. robert, i want to get at something that i find the retail investors really mystified by. they see a company which is a sneaker company which you're not really. they say it's one product. it late in the game. how can we get people to understand that you're early in the gape ame and early in your a pan expansion. >> you have to think how long shoe companies exist. they exist forever. i imagine that if we can just sell two pair for every one we'll double the size of the company. >> the idea that we read that the holiday season is weak, that
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doesn't necessarily mean everybody is weak. >> no, we performed well through october into november and while our comps were up mid to high single digits, which we thought was good we thought they might go higher and that's actually not bad. that continues the same performance through october, november. >> now a lot of people may not understand that sketchers is making an international expansion that includes angola, algeria, georgia, the other georgia, your plan to be bigger one day overseas than you are domestic? >> definitely. just by sheer size of the population outside the united states, and today the whole world looks the same. you get off the plane anymore in the world and they look like -- everybody looks the same, jeans, casual, sneakers, easy living, athletic looks and it's exactly that. that's why the brand is growing
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worldwide so quickly now. it's finally happening. >> now david berman was on talking about how the stock is inexpensive relative to under armor. there is a sense sketchers is up 37% since we last talked in june and 80% year to date therefore you missed the move. how is that really jiving with how your business is doing? >> it doesn't at all. that's a big piece percentage-wise but the big growth can be higher. we hit multiple categories and multiple geographies and growing around the world places like china, europe, middle east, south america could be big. it's only the beginning of what is possible. >> i saw the numbers from china what you're doing, 125 goes to 294 and 337 for points of sale this is beginning of the ramp. >> very beginning. took us three or four years just
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to get it finally making money and it is, and what our joint venture partner is telling us the numbers that he's going to be achieving astonishes me. >> you're also known and accept this, you're a marketing company. i saw saturation bombing, being a marketing company is something you're proud of. >> absolutely. we don't think you can grow and get name identification and we think it requires two things. you have to have the product and you have to build the image around the product so people will try it because once they try it, they will stay with it. >> the idea that the consumers are flushed with gasoline. when you have value, comfort that would seem to be a natural place for a consumer with a little more money to go. >> i agree. >> okay. [ laughter ] >> there is a lot of people are under confusion maybe it's not translating and maybe the
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article in the new york times say listen, people are more flushed. >> they are buying shoes, sneakers, not clothing as much. they are buying electronics, flat screens and sneakers. >> now one of the things that was asked about in the last call that you were somewhat talking about, would it help the declinic in oil when you input lower oil cost and you said at the time well, it would certainly be something that would be okay with us. now we got oil virtually cut by a third. it's better than okay. >> well, it's better than okay but not really a pricing issue. we don't have that many synthetics in our foot ware to begin with or leather that require it but certainly, cheaper oil boosts the economy and people shop and people buy more and we're what they are looking for, so we think it's a big positive but that remains to be seen. >> you have exceptional growth and went into the holiday with
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low inventories and had a distribution center cost that seems to be behind you. that would seem to lead to me thinking gross margins could be climbing. >> we don't put our costs for the distribution centers -- >> i know. i'm trying to proximate. >> yeah, so the gross margin is very truly a cost of goods sold and we keep i want very simple because we like to. the distribution cost we certainly will leverage them into next year. the only issue would be will we out grow them. >> wall street doesn't really sometimes understand your company. they always think it's near the end when something -- they remember say la gear or remember fila but when i see a fact that was glomed on to e commerce sales 5.5% in the last quarter, people then extrapolate that and say listen, the company is clearly cooling. i know that you guys are very
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forthcoming in putting out numbers. why is that not the tale of the future? >> what we do is allow our customers who we sell to to sell online and we hold our price online at a higher price and they have all sorts of sales. so we have a huge online business with everybody we sell to. our online business we did $9 million in one day in china online last woke, teek when the single's day. 9.2 or 3 in one day. which is incredible. our online business is e nnormo. >> you lined up an idle of teens, demi lovato. what happens when she tweets sketchers? >> she has a very big following and very positive on it. as a matter of fact, all the people we have for our brand are positive and tweet and have a big following and bring
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credibility. we only need people to try it because we know they will come back to it. >> there are some people in a fight between nike and under armor say listen, i have to take the under armor money. your endorsers are people who came the other way. they wore sketchers and were happy to say it. >> yeah, i think everybody wears sketchers and were happy to say so. they did it quite well, and they believe it. if you start with meb, he truly believes he came and came from a solid place and performed well because he had a lot of input. he loves it and it shows. >> talking about the boston marathon winner. tes, target, sports authority, you're in a ton of places, how are the tests going? >> everywhere, excellent. >> excellent. >> the product lines have never been better. we have 19 divisions now and every one of them is doing extremely well. >> i think we should leave it at that. that's a nice positive comment. that's robert greenburg, founder, chairman, ceo and cfo
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of sketchers.
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now begins the countdown to the lightning round but first, let me give a shoutout to my pals at sunday nfl countdown. i was a blast being on your shoe and sell rg3, aka sears holdings and now it is time, it is time for the lightning round. buy, buy, buy, sell, sell, sell. are you ready? lightning round. i want to start with jamal in georgia, jamal? >> caller: hey, crimer, boo-ya. >> boo-yah. >> caller: boo-yah. i want to -- >> okay. i like a 9% yield like everybody else but i need growth, i don't see growth. i think it's okay. they are doing the real else state investment. i'm not crazy about it. go to ike in pennsylvania. >> caller: how is it going? >> good, how about you?
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>> caller: just fine. thank you for taking my call. >> of course. >> caller: the reason i called, since the opec meeting on thursday, united rentals has been crushed. >> yes. >> caller: and i'm not sure of the reason why as i don't believe they rent any kind of oil drilling equipment and is the stock worth holding -- >> there is a tied oil and gas but it's not so clear that i would be selling the stock here. remember, this stock had a major run. let the profit taking go on. if it gets below 100, william in south dakota. william. >> caller: yeah, this is wild bill out here in south dakota looking for jack mccall, okay? >> all right. >> caller: i decided to buy me a stock called corrections corporation of america, figure he might be in there somewhere. >> the problem is it is basically a play on states turning over the prisons, and
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you have to play it versus another one. i got to tell you, i'm not that comfortable with it. it's got a good yield but hit or miss at times if they don't get certain contracts, it's been given up but it's got a good yield and sick. okay. javier in texas. >> caller: thank you for taking my call. i'm interested in coppers holdings incorporated. can you give me insight? >> this company is a probable company doing rather fine, but because it's got some -- i mean, it's got -- let's put it this way, it's an industrial that's hard for people to fathom and they are selling those industrials now. i'm intrigued by i don't have a catalyst for the carbon business and why it should go higher and that, ladies and gentlemen, is the conclusion of the lightning round. the lightning round is sponsored by td america trade.
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plunging oil may be bad news for some but leaves consumers with more spending money on pock its and makes it cheaper to drive out to dinner. that's why tonight i want to talk about fiesta restaurant group, the owner of restaurant chains, the rapid owner that seconds caribbean food in florida and the southeast and taco cabina, an authentic food
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chain with 173 locations highly concentrate in texas. at a time when latin america food is mainstream here in the united states, fiesta makes sense since the plans to expand the store count 17% clip, hey, chipotle does 11. the 32 cent basis robust up 5.9%. polo tropical, analysts went looking for 5%. 3.5% of taco cabina and fiesta has a pipeline of store roll juts and the quarter is going strong. this is giving a nice gain since we last heard from the ceo. can it keep climbing until the end of the year until 2015? let's check in the with the ceo. welcome back to "mad money." good to see you, sir. you guys are on fire. it's interesting because you have a huge number in social media and i thought it was interesting to hear when you're moving into texas, the social
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media, which is really taking it off, not spending big money to publicize. >> we're not. that's really the test when you go into a new market, what do they say about you when you're not around. >> i mean, doesn't that mean that when you look at system place like the northeast, we have nothing like what you have. and i know the ad heit's incred >> we'll fill out texas and double the size of the company by what we have in the books in the next couple years. >> double the size. no one has that growth. >> well, we have, you know, it starts with the food and then we've got a lot of wide open territory in texas and all those points in between florida and texas. >> look, you got a lot of things going, fresh food, a taste that nobody else has but got for the sweet spot with gasoline has to be helping. >> gasoline is helping a little bit. i think probably what is really gone on is we have so much dynamic growth over the last two
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or three years. when gas spiked three years ago, we see a decrease in sales and powered through it and now our same store seales tonighted to e strong. >> the remodelling for taco cabi cabina, it's worth saving when you remodel. >> we took over a company that had a 1.7 average unit volume and those don't grow on trees. by the middle of next year 2015 we'll be completely done with the remodelling. >> wow, okay, what is the big blue prototype? >> the new restaurant, the new taco -- sorry, the new polo tropical in texas. >> describe it. >> in florida we built a long time something with spanish barrel tile ceilings and stucco and towers and our own customers said it looks mexican. well, we didn't want to look mexican going into texas as a brand-new --
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>> right. >> so we have build something that is dubbed big blue, which is the very, very caribbean, very bold and vibrant colors and looks lick a beach. >> so will you redo places in florida that are older with this prototype? >> our plan is to begin that in orlando in 2015. >> it seemed like you were a little bearish on commodity inflation. is there any way that could turn since so many others are heading down? >> the one we're concerned with is chicken for next year. >> right. >> chicken -- i'm sure everybody is telling you is really going to be big and very expensive next year, but we have over the last two or three years made sure that what we really want to do is make sure our price value stays one of those corner stones for us. so we've kept our prices low for just this reason. so we'll be able to take a price increase to make up for that increase in chicken. >> you have a huge takeout
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business. >> yes. just drive through right now is over 50% -- >> i don't conkno know anyone - did you get that ratio? >> people drive through. you imagine miami 300 average unit volume, some do $4 million, which means the drive through at lunch is a million dollar business. >> i wish people would know how extraordinary this is. you have great numbers, sir, the president and ceo of fiesta restaurant group. i like this stock and like it even more. stick with cramer.
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>> all right, yes, there are negatives to oil going down. i think the positives outweigh it. let's talk about some of that action today. we saw tech go down, that's a worry about europe and china but also, we had a weird mark up going on. they took the stocks up to high. the sell off after a couple days a viable one. i promise to find it for you. i'm jim cramer, see you tomorrow.
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. >> tonight on the profit... >> marcus, nice to meet you. >> i go inside jacob maarse, a high-end florist and gift shop in pasadena, california that hasn't earned a profit since its founder died in 2010. how much money will this business lose this year? >> close to 200,000. >> sloppy business practices... do you have an inventory system? >> no. >> together with lax management has driven down sales and piled up debt. so are we going the right way? >> i believe so. >> we need to know where we're going. if they don't make changes, this 47-year-old family business will be forced to close its doors. this business is a total mess. i'm fighting against time to light a fire under these people... this is the thing that will help us go from the red to the black in one month. before this business crumbles and dozens of employees are out

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