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tv   Mad Money  CNBC  February 12, 2015 6:00pm-7:01pm EST

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that thing, too. >> her role. >> take home an emmy. >> her role in the series. >> honeywell best industrial play. i think it's one of the fifty trades of pay. >> i'm melissa lee. thankshey! >> the only time you're watching. see you tomorrow. "mad money" starts now. >> my mission is simple to make you money. i'm here to level the playing field for all investors. there's always work somewhere. i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to mad money. a lot of people make funds, i'm just trying to save you money. my job is to not only entertain but teach. some days just smack you right in the face and say look at me! this is what is working, chief! by the best and leave the others to the rest. this is one of those days.
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the dow climbed 110 points. nasdaq surged 1.18% to a 15-year high! so what exact slily is working? let's look at the stocks that were. they tell the tale of the tape. and let's start with somebody we talked to last night. start with john chambers and cisco. if you go back to the 1990s, you'll find one tech company that understood the year. it wasn't intel or microsoft. it was cisco. that's because the iment net was just coming to its own back then. if you were running an enterprise, you wanted to get on the internet or have an internet strategy. you made one phone call. you picked up the phone and called john chambers ceo cisco. i remember john coming by my hedge fund back then to talk about his stock. next thing you know, i was a cisco customer. then i started "the street.com", there wasn't anyone else to turn to because cisco offered a one stop end to end solution to
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your problems. whether you were shop with ten people or shop with 10,000 people. including every major phone company, the real super highway for remember traffic at the time. that is how cisco became the company with the largest market capitalization in the world. since the heavy super charge days they've had periods of excellent performance and others cyclical in nature. all the company had to deal with occasional down turns that hurt crucial customers and regions aren't globe that were great growth areas. cisco never lost the edge throughout this. you can only -- you can only ride a wave so far, so to speak. and then seemingly out of no, where they hit low tide. the slow mature internet morphed into the young spri kid known as the internet of things. now it's no longer just your computer that is linked to the net, think about it. it's your appliances car, it's your search engine. it's your tv shows. it's your watch. it's your shirt.
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it's your fitabout it, cell phone, camera. pictures, web page your wallet. it's your tweet, it's your sports scores heat air conditioning, security system, your city your library, your military, airplane country. has your heart. it's your brain. if you thought the original internet is overwhelming you're talking data five or ten times what it used to be a few years ago and double no time flat. the opportunity is just too great f you're running a business, you either have a strategy and you live or you stick your head in the sand and you die. john chambers saw the first internet coming. he saw the much bigger and better sequel of the internet coming, too. he put his own huge company through a gut wrenching pace of adoption who better to help you figure out an internet of thing strategy than cisco. they executed internally already while the others were puzzling over it. once again, they except this time it's bigger they as in
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cities and countries, as well as companies, are calling john and telling him, hey please offer us a one stop end to end secure solution because they're desperate. they need to master the internet of things. i said secure. many secure if cyber attacks. anti-hacker fire eye was up so good and after a good quarter and tolltal cramer faith, it soared this morning. but you know what? i still like the intergrated security approach that cisco offers. people only want to deal with one provider sometimes. after a day where they led the dow, you might think missed that move. do you know how many money managers said that during cisco's incredible dramatic five year run from 1995 to 2,000 when the stock advanced from $2 to $65? do you know how many traded in and out of it the way we see people trade in and out of apple all the time? i'm telling you this is just quarter one of the numbers i've been expecting for 'tis he
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could. i say game on! what else is working? how about expedia and trip adviser. what happened? they had takeovers? yes. in the case of expedia. it made a bid for orbitz. it will take a vicious war among expedia, orbiz and priceline and create a truce and end of real price competition. trip adviser reported a jaw droppingly fabulous quarter at a people were fearing a travel industry slowdown related to the strong dollar. but with expedia and trip adviser used by billions of people to travel faster with applications that work best on cell phones. these two companies will dominate the $400 billion travel industry which is consolidating like mad. i bet they'll bust the expedia-orbitz tie-up. you can say hey guys listen.
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going. >> caller: google can come in here and wreck us tomorrow. any company can claim there is plenty of competition and it works. you have a consolidated industry that is based on connectivity and data agragation. social, mobile and cloud. all the super growth themes i have preached endlessly to you as being among the most important pillars of this major run. how about another major pillar whole foods. there is a company that some say stumble stumbled, but it never lost his touch for its destination of natural and organic foods. it didn't stumble. just everyone caught on and came after wfm with reckless abandon. and sprouts, fairway, fresh market tap into funds that build into their networks. next thing you know whole foods seemed like just another supermarket when it came to the numbers even if of course it was never that when you actually go there.
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but those who counted whole foods out didn't understand that these seemingly jent gentlemen executives but what they really are is fiercely competitive gentlemen and in a span of 18 months, they concede and executed a plan to turn this into the most technologically advanced retailer and a program that can only rival the gold standard of starbucks. no offense, but you know they're trying to mimic you in a positive way. that is flattering. and 18 months they were able to do this. and just like cisco, you were in quarter one of the whole foods revelation. the quarter where they left from being a regular registered company to being the number one apple paid customer in this country. imagine. and again, like cisco, they had to transform themselves from the major dome of the internet to the keeper of internet of things kingdom, they had to trance frigs being the best organic natural store to where you learn if foods are sourced or sourced from, you always trusted cisco
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and whole foods. now they're telling who you else to trust in this more cynical world. and that natural organic wave guess who else is riding? how about cramer uber fav white wave. white wave guided numbers down. people were saying you're washed up. i think that mother said that when i was born. this stock soared 7% anyway. how can a company guide down and still have a stock go up 7%? because it has to spend to meet the gigantic opportunities in china and europe. which are desperate from the plant-based zrinks that white wave make,al monld milk soy. who isn't riding the wave? how about kellogg's. the world joins america in tired old cereals, cookies and largely not so hot for you snacks. huge missed quarter. kellogg's is spending to to simulate demand. tony tiger? endangered as the real thing. after the bell thank you fellow
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pantry dinosaurs me announced awful numbers. you see a pattern? any given session cannot tell us everything. where were china and greece today? here's the bottom line. on days like today, what can i say? the winning tickets right there in front of you like a powerball game that lets millions of people win. by giving them the theme of the numbers ahead of the draw. i want to go to ken, please. >> hey, jim. big fan. thank you for taking my call. >> of course. what's going on? >> so i'm doing a really well in the consumer sector. i realized i'm a little bit overexposed. i'm wondering about getting into a company that really doesn't deal that much with the average consumer. i'm talking about lockheed martin. >> i could not agree with you more. don't forget lockheed martin has great management and a lot of orders from other countries. the other guys have to stick in
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too. ken, you have yes, highest praise. how about tracy in michigan? tracy? >> hey, jim, how are you? >> okay how are you? >> good. certainly early happy valentine's day, too. >> thank you. >> i've had rite aid in the portfolio since 2012. with the announcement of the acquisition yesterday, i would appreciate your thoughts it's a little more complicated than it used to be. >> they became propriety airy pharmacy business management overnight. i urge you if the stock goes below $8 to buy even more. i tip beingly go into the violate my basis. that's how strongly i feel that rite aid is going higher. i need to go to jack in nebraska. jack? >> boo-yah from university of nebraska lincoln, jim. >> oh, man. we're there. well, invite us and maybe they'll let me be there.
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>> all right, jim. the stock electronic arts has gone up nearly 60% since i bought it in june. so i guess my two questions are is it still worth 21 times earning ands do you need a summer intern? >> wow, i do need a summer intern? i don't have a budget for. that but i'd like to go to mets games in the summer. now i got to tell you, i think the take two is cheaper than ea. they had a great quarter. take two is now down. that's wrong. i'd rather sell ea and buy take two. let's go to bruce in missouri. bruce? >> yes jim. happy birthday. >> thank you, partner. what's up? >> i thought you were about 66 though? >> no. i'm a young looking 66. come on! >> you're make meg feel old. i'm older than you. >> there is someone older than me throughout in the audience? how is that possible? >> it is. >> well jim, i'm asking you about citigroup. where it might be next month when some of that news comes out and where it might be at the end
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of this year? >> i don't know. i can only tell that you i think mike is doing a dynamite job and been given just an okay hand. interest rates are going higher. i have to tell you, you want to buy wells fargo because they're unique ly uniquely used in the united states. i don't want to have to worry about the government. all right. there it is. the winning ticket. you just can't miss it. buy the best and leave the raggedy rest to the others. okay. lacing up the foot ware stock. nike and cramer fav underarmor. can sketchers keep up with this crazy pace? i have the company's top brass fresh off an incredible earnings report. and tesla could be as big as apple one day? is this possible? don't miss my take. plus, it is crushing stone and so much more. i may have the hottest stock in this market right now. martin marietta materials.
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it's up 30% this year. stick with cramer.
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>> it's all broadway. it's showbiz, not shoe business. >> one of the hottest foot ware stocks out there, i'm talking about sketchers. that is the shoemaker with tremendously popular product
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line. remember the great ads? a rapidly growing retail business. 700 stores overseas slew of deserving awards for the best foot ware around. sketchers just reported last night and the company shot the lights out. inline earn onz record. staggering 26.4% year over year. rising gross margins. very strong international business including places in europe that no one is selling in. they gave upside guidance for the next quarter. they will make yet another quarterly sales record and is now $9 in cash on the balance street. that's why they rallied today. they're giving us more than 9% gains since we last spoke with the ceo and over last 12 months the stock more than doubled. i think there could be a lot more upside. take a closer look at the founder, chairman andceo of sketchers. it's not just shoe business it's showbiz. welcome back to "mad money." >> always good to be here.
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>> happy birthday jim. >> thank you very much robert. thank you. let me you know i go through and you taught me more. there is more to it. one thing mising in the call people are not talking about pete rose and whether he's in the hall. they're not talking about the 600,000 likes from one insta gram for demi la vat yoe. talk about how it's the ethos, it's the experience that is driving sales, not the distribution center which is what everyone wants to talk about. >> that's a great product. it's all about that. nothing nicer than nice shoes. makes a difference between a good day and bad day, the shoes you're wearing and the comfort that they give you. it's all about comfort. >> well at the same time, david, you're able to raise prices. no one is raising prizes in america. how can you have a 7% increase in time when most guys are having to cut prices? >> some of that is mixed. we have more adult shoes.
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kids are coming back. when you innovate and have technology and worth the price increase and you put it side by side with something that doesn't have that technology, it's easy to raise prices. >> are you seeing what it's almost like there is a major shift happening around the world i know you know this that nike spent a huge amount of money to get me to look like i could be on the court with durant. adidas wants me to be playing sock wert german national team. you want me to be in the stands. there are a lot more people in the stands than there are on the field? >> well performance wear performance foot ware is street. spandex is the new jean denim. and there is nothing that goes with that look but athletic. so the whole world looks like athletic athletes anywhere you go today. and the products are the colors knitted foot ware and the combinations and materials that
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it didn't even exist three years ago. so it's just a big splurge. >> and they're jumyer than ever. >> what is driving sales? we know the domestic people. we know what demi lovat co. pull. it is ringo star pulling or just the fact that this is a uniquely american brand that people love overseas? >> reno is not out yet. people love it overseas. it always starts with the product. we use the advertising to let people be aware of it. it's the product itself in a sells through that makes it so large. we resonate everywhere in the world. >> are you looking at the numbers that i was looking at which is how much nike sells in a given year 16. i look at adidas, they have eight billion. i'm thinking you really -- i know a lot of people want to say it's the top, there is so much green field room in the shoe business for you to take from
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those guys alone that you could have multiple years of growth. >> absolutely. when you look at the nike numbers, that's not even all footware. we haven't started outside of the footware market. we're so underpenetrated in a lot of the marketplaces. the people are just starting to learn our brand deep down in and across the board. >> the couple that thought that people buy more shoes today than ever before. >> why is that? that is a secular growth story. >> when shoes used to be shoes with heels and soles, it was one thing. but to day with sneakers the colors, the fabrics, the hookups, you have to buy as many shoes today as almost as many shirts. why not?
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memory foam and -- look i wear your shoes. i'm an older fellow. i couldn't believe, you told me that your feet get bigger when you get old. i was a 10 1/2. i was a 9 1/2 my whole life. you understand the technology of older people's feet. and the other guys are all trying to get me into a narrow shoe so i can play basketball in the nba. dhoent have it and do you. what it is? because you've been around? what is it that you understand that they don't? >> it's just a good understandingst foot ware business and how to veb develop products that work for people today the we came up with relaxed fit. that astonished me. as you get older, the front of your feet widen out. the toes start to move out. nobody makes shoes like. that that's dwr we have ringo and joe montana and pete rose and everybody saying we have this great product. you put them on, you never want
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to take them off. you used to come home from work and take your shoes off. when you have the sketchers on you don't take your shoes off at night. they're too comfortable. >> one last question. quickly. everyone stopped at my super bowl party and watched the pete rose ad. what feedback do you zbhet. >> very positive. i think more people absolutely want to get into the hall of fame and we certainly think he should be. and it just gives a tongue and cheek attitude and gets people thinking about it again. it works great and always gets great results and great feedback. >> and he should be in the hall. >> yes, thank you. i did what -- i can't start the campaign myself. maybe you can. look i'm a philadelphiian. guys, just a fantastic quarter. i know it's multiyear move and you just kept delivering. thank you so much for coming on "mad money." >> always a pleasure and happy birthday again. >> thank you. that is robert greenberg and the cfo. i know it's a huge move. it's not done. it can go higher. after the break, i'll try to make you even more money.
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>> coming up tesla took a detour in today's trading after delivering wall street disappointing figures. now cramer's taking a test drive to see if the brakes are still on the stock. or if it's ready to ride. you don't want to miss this.
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everybody gets one warning but just one. we have a strict two strikes and you're out here on "mad money." i'm talking about how tempting it is to put tesla's ceo on the wall of shame. he won. consider this your first and only warning. now i've called tesla cold stock for ages. the definition of a cold stock is it can't be valued by traditional metrics. you had to believe the car will be better than any other car in the class and ceo would execute on the electric technology and allow this kplp to grow from the automobile start-up into the world's most lucrative manufacturing company. you know i believed. if you listened you should have made a lot of money. last night though must dash every aspect of that dream. tesla missed on sales, on earnings earnings, on gross margins. and on guidance. tesla may not burn fossil fuels but it is burning money like
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crazy. there is no way the balance sheet can support the amount of investment needed. gasoline is going down in price. but that is not why i think he deserves a position on the wall of shame. it's for himself what he said in the conference call. i'll let him hang himself. listen to this guy. first, why were sales weak? they were manufacturing problems that held the cars back and it was physically impossible due to a combination of customers being on vacation severe winter weather and shipping problems. customers on vacation. i'll remember that. weak china sales, the biggest issue which we're still fighting to address is the perception that it is difficult to charge your car in china. this is false. it is not difficult to charge your car in china. unfortunately this sound brain dead but our sales team is telling people that was difficult to charge in china even though this is not true. that spritis pretty silly. brain dead?
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here is mus being on the losses. our financials are better than they appear not worse. that is really the point. better than they appear. on the kind of profitability he expects, i'd like to emphasize that doesn't mean bs profitable. it means really profitable. now he didn't use the term bs. i haven't heard a ceo actually lyly curse on a call since jeffrey xilg cursed at a critical analyst before his company's demise. what about how tesla will be as big as apple one day? here's a great quote. if you take this year's revenue and if we are able to maintain 30% growth rate for 10 years, adds to the 10% profitability number and you have a 20 pe. our market cap would be the same as apples is today. that is going to require an order of $700 billion. i am hopeful we can do this without any significant delusion to the company maybe minor dilution. oh, yeah apple, of course. what wave are you snon how much
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money do you require for them to be next april snl. >> we're going to spend staggering amounts on cap x. where is the money going to come from? near the end of the call i felt like i was listening to the rambles of john deloria, another man that created a much loved car but also had the balance sheet that was hated. it is almost a spoof of a conference call mocking those who try to take the company seriously and animal house call. maybe something in honor of the company's 40th anniversary of saturday night live? so why not nail him to the wall of shame now. the man is a genius. i'm not disputing. that make no mistake about it. this is a fiasco earnings miss of immense proportions coupled with the arrogance of a steve jobs without the numbers to back it up. bottom line tesla, great car, bad company. sim in oregon.
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sim? >> hey, how you doing? so my question to you is i've been a big fan of the though. my question to you is what do you think amazon share price is tapped out and is there any room for growth in the month to come? >> i don't think it is tapped out. i think the shorts think it is tapped out. it's a cold stock. it's hard to value. they did put up really good numbers last time. that brought people back to the fold who have been leaving it. so amazon i think can go higher. i'm not recommending the stock. let's go to mark in nevada. >> hi jim. greatly appreciate you taking the call. >> of course. >> i'm from hernd son,nderson, nevada where it is 75 degrees today the we'll blow warm air your way. i own century link and own it for 5 1/2% dividend. the latest quarter came out and disappointing. and so two questions. what is your opinion on the stock? and is there any chance an activist fund like green light
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or persian square or jenna partners, any chance they could shake things up? wishful thinking? >> first i prefer at&t because of directv tie and verizon. i think it is wishful. the activists seem to go after got companies. they go after the companies that are winning. and therefore, i think the boeing ji too high for the activists. they're not winning k we go to em fli arkansas please? emily? >> mr. cramer nice to see your hard work and helping us find a bull market. >> thank you. >> i picked up some shares last fall and you medicationed it may be ready to make a comeback. we found out there were accounting issues and the stock price declined. if i have a long time horizon, do you think i'm wasting my time for the company and stock price to dom back around? >> i felt that whether the ceo left that thing was get better. i didn't -- the accounting irregularities should have told me to sell. it's not worth selling. it is worth holding.
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i'm not going to recommend. af sis a better company. elan musk consider this a warning. i want him to give himself a chance to redeem himself next quarter. tesla is a good car but not a good company. >> i'll see you we can keep going. then we more gas in this country than we know what to do. i'm talking to the kpp about to export. plus all your calls on a thunderous thursday edition of the lightning round. so stick with cramer. >> tomorrow kick off the trading day with ""squawk on the street."" live from post nine at the nyse. >> they need to do this over again. i'm not kidding. >> it all starts at 9:00 a.m. eastern.
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if you want to get a sense of how the real economy is doing, look at the ago gats. not aggregate data i'm talking about construction companies.
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martin marietta is number two aggregate player in the america. major exposure to the texas market. $2.7 billion acquisition of texas industries last year that we praised to the skies and there is a terrific company. they reported what i can call a staggeringly great quarter. best of 2015. the company delivered an 8 cent earnings beat and much higher than expected revenues. a staggering 57% year over year. also announced 20 million share buy back. left the repurchase all the stock they issued in order to perfect texas industries. the stock rallied from $119 to $136 in a single session. they closed at $142 today. this is the analyst day. let's check in with the chairman, president and ceo. hear more about the company's prospect. welcome to "mad money." thank you so much. >> have a seat. >> thank you very much. >> i try to tell people
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sometimes you got to look at companies that seem like you know, a company that makes rocks to really make a great deal of money. when the cycle is right and the industry is occurring, this is your time. >> that's right. it is our time and our time where we are. this industry has been through a trough. what we saw in volumes going from peak to trough in our heritage business, we went to 125 million tons. >> in a big country. >> 45% of our volume. places like atlanta saw 70% of the volume go away and now we're seeing that turn. but more importantly, we've really moved our company the last five years and we have a one or two position in 8 a%5% of markets. >> you have to use hard times to take advantage of it. you made a major acquisition pretty much at a tough time for the country. and it's really worked.
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>> it has. we didn't make big acquisition tez wrong time either. we weren't buying businesses that peaked at the cycle. we tried to be counter cyclical. we did the deal with txi somewhere near the bottom of the cycle. when you get the synergy that's we're getting in places like texas and then the economy is lifting not just now the western u.s. but we're seeing recovery in the east, it makes a big difference. >> i thought they were trying to pigeon hole you at one point in the conference call. but north carolina florida. florida dot budget. these -- we don't realize there is -- there say boom going on in the south. >> there is a beast of a dot budget in florida. look at it this way. it's a record budget this year. but only 30% of that comes from the fed. there is a state like florida that said we have to control our own destiny here. and that is exactly what they're doing. population inflows into florida north carolina and georgia are huge. four, five years ago, north
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carolina passed new jersey as the ninth most popular state in the country. it's now number eight. the governor came out with a 25-year transportation vision. that is the type of foundation that we're dealing with in southeastern states. >> we also have to let people know it's not just government budget the nonresidential and residential construction that is happening in your core areas is extraordinary right now. >> there's no question. and you're seeing employment come back in strong ways. it's been uneven. west has done much better than the east. but now we're looking at north carolina georgia, florida, economic and employment recovery somewhere in the top five. when we see that tich movement people are buying homes. a 50 year average is 1.5 million starts. we're well below that still today. >> there is a lot of room. >> there is. and now we're seeing nonres. it usually follows that with 9 to 18-month lag. so to your point when people are
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getting jobs and can sell a home or buy a home, the non-res follows. >> they say listen you made this big bet in texas. but now permits are slowing down. actual lower energy costs is more important to a vibrant regional economy than the actual jobs generated by the individual oil companies. >> there's no question about that. at some point, somehow we got an energy play in this. >> thank you. no one ever says it. we're a low cost energy producer which allows great growth. >> that's exactly right. around -- call it 12% of our cost is energy. historically, 8% of that is diesel fuel. when you're seeing diesel at the numbers that we are, can energy and some parts of our business give us a head wind? no question. in most parts of our business, is it going to give us a cross tail wind and economic down stream tail wind i think it will. >> you tell the story better than anyone i had on the show.
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thank you very much. i want to thank you very much. martin marietta. the biggest buy back i know. multiple year expansion in earnings is what i predict. "mad money" is back after the break. hey matt, what's up? i'm just looking over the company bills. is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow, that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer.
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it is time for "the lightning round." are you ready? larry in georgia. larry? >> hey, jim. a big boo-yah from the atm. >> done. >> i have a question about xerox. >> the stock didn't go down. that usually tells me that good things can be ahead. it should have gone down. i'm not going to tell you to sell it now. let's go to carlos in new york. carlos? >> hey, jim. i love the show. may i say i'm loving the new hair cut. >> thank you very much. much appreciated. >> tsra? zblefer since rick hill joined the board there, he made the viewers all that money. it has been such a win.
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he joined a couple years ago. i think kit go higher. john in pennsylvania. john? >> boo-yah, jim. >> boo-yah. >> this is poppa john from pennsylvania. >> all right pap yachlt. >> it is okay to buy fresh pet to help my 3-year-old grandson named oliver or is the pe too high? >> it's an expensive stock. i do believe in the long fundmentals of animal health. i think fresh pet is part of a major revolution to spend more on pets and great consolidation. therefore, i do own it. i don't expect a lot from the quarter. let's go to waco texas. waco in texas? >> yeah waco in texas. how you doing? big boo-yah. >> like that. what's going on? >> hey, my brother and i looking at plunk. they report in a couple weeks. wonder if you think that -- >> splunk is good. so i like dat yament i think splunk, you know you have to remember the high areas are
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cybersecurity and data analysis. but the good company. go to greg in arizona. please, greg? >> a warm arizona boo-yah to you. >> wow. yeah. man, i just sun devil boo yachlt wild cat boo yachlt what's up? >> thank for taking my kachlt appreciate. that how about disney long term? longer than ten years. >> man this stock has been a rocket ship about 13 straight points. i think as much as bob eyeinger is fantastic, it has to cool off. if you can get it under 100, buy, buy buy. i'm not telling you to sell. entry level, wait a couple points. let's go to shyla in texas. >> hi. >> hello. >> i'm sorry, i missed that. >> happy belated birthday. >> thank you very much. thank you. >> yeah. i want to know about the -- conocophillips? i'll go with jack morris the new partner and, you know we
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both feel it's time to own in oil. is that one to own? i think it's more natural gas than oil. i'm going to say no to conoco. let's go to john in virginia. john? >> hey, happy belated boo-yah birthday, jim. >> thank you. >> i invested in juno therapeutic after the ipo at $38. do you like this in the long term? i do. i like halo a little more. i like isis a little more. i like others a little more. actually, i would say i like cell gene. let's go to jim in minnesota. please, jim? >> jim, you're such an inspiration. >> thank you. thank you. >> my stock is snapple. >> dr pepper snapple is the best in the group. after today's -- maybe at this point, after this news quarter we look back and we say, you know what? i want more sustainability. i want to be in pepsi with nui. and that is the conclusion of the "lightning round."
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>> the lightning round is sponsored by t.d. ameritrade. [ male announcer ] at northrop grumman, we've always been at the forefront of advanced electronics. providing technology to get more detail... ♪ ♪ detect hidden threats... ♪ ♪ see the whole picture... ♪ ♪ process critical information and put it in the hands of our defenders. reaching constantly evolving threats before they reach us. that's the value of performance. northrop grumman.
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what do we do with a high yielding bond market? now that interest rates have snapped back dra mat ukly and look to be headed higher longer term? i say we have to start looking at them individually to measure the growth prospect so they can pull out from the entire sector. take dominion resources, the
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largest gas and electric utilities with natural grass transmission and distribution business in the shell regions and joint venture to build a $5 billion nat gas pipeline connecting the markets. they're building a natural gas export terminal in virginia expected to be running in 2017 and most consistent records of increasing dividends including a 7.9% boost that gives the stock a 3.a% yield at the levels. has the bond created a buying nunt a high quality stock? let's dig deep we are the president and chairman and ceo of dominion resources. welcome back to "mad money." >> very nice to see you, jim. >> i have to ask you, tom, we have known each other long time. i followed your stock. it's just since the show began. i was taken aback that it could fall just like any other utility when we had that move. do you think that one day we'll get to the point where people recognize your superior growth clark sticks and cash flow and the fact you have a better record of dividend boosting than all the other utilities? >> i think, so jim.
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i think one of the disadvantages of the low interest rate environment that we've been through in the last few years is there hasn't been much differentiation between utility stocks. the pes are compressed. they're kind of grouped. and i think as we return to the time when interest rates are going up some people will still dividends from utilities. we'll have to start differentiating among the stocks and the real growth prospect. i think that's where we should do well. >> do you think that people recognize your area is remarkable in part the growth of it, in part because you have the lowest power cost in the country? >> we have very low power costs. we have really good operators at our company. we have four nuclear reactors just in virginia. we have a couple more in connecticut. they run extremely well and help provide the backbone of very low power prices to our customers.
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>> we had john chambers on last ni, the ceo of cisco talking about data center explosion, maybe the fastest growing industry in the world and, of course, this country. you are the data center electric provider aren't you? over half the internat traffic in the united states goes through our service territory. last year alone we added 14 new data centers. this year we already know of ten that we're going to add. >> i think it's interesting. you're the first utility company i saw that actually break out how important cybersecurity is to you. we had cyber reporting a number. you have to spend on that now these days don't you? >> we do. and it's not just cyber, we're worried about physical security of our facilities. so we're concentrating on both sides of the importance. we have important customers all of our customers are important. we have some that are important to national security. >> okay. now we have to talk about the l & g business. there was a time when it looked like 15 different companies that were going to get into the l & g
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export. you and another company had the head-to-head start w the collapse of natural gas priced do you think you'll be the last guy out the door? i don't know if anyone else will get financing. >> you know it probably will be difficult. i think i've said all along, jim to you on your show that we think it's highly likely we'll be the only export facility on the east coast of the united states. shahnear is in the gulf coast. it will be hard to get them permitted and financed. >> from the work i've been doing with energy consultants, there is going to be a lowest cost natural gas in the world with the exception of kuwait. the differential the idea that people think that because oil come down you will not get long term contracts is quite wrong. you're racking up amazing long term contracts right now, aren't you? >> we sold out our export facility completely for 20 years to two customers. one in japan and one in india.
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>> see, i have been reading and people keep saying jim, you're way too bullish. there is no way they can sell all that. but it's done. right? these are contracts that are iron clad. they can't be getting out of. >> cannot. they're all done. we don't ever take ownership of the gas also to what people may be saying. the gas is purchased by the customers. we deliver it through our pipe to our facility. we'll liquefy it and place it on the tanker for them. and it's their gas from start to finish. >> well, you know i know we didn't talk about the dropdown you could have of the limited partnership. that is a spectacular investment, too. you delivered everything over and over again. thank you so much tom farrellg to see you, sir. >> thank you, jim. >> guys this is the best growth utility in the country. there isn't any dispute with that. stick with cramer.
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a funny real estate guru promises investors financial freedom but he's leading into the financial enslavement. all new "american greed" at 10:00 p.m. things of beauty. i'm jim cramer. i'll see you tomorrow!
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>> narrator: in this episode of "american greed"... this man says he can make you rich. his pitch -- irresistible. >> if they want their cash to go to work at a higher interest rate, call me. if you want to make some money signing some papers, loan your credit, call me. if you have some unused collateral sitting around, you're not making any money with it, call me. >> narrator: he claims to be a real-estate investor extraordinaire... until the money stops. >> "well, you've got to start putting that money to work." that's what we need it to do. we did. >> narrator: and no one is safe from this golden boy's allure. >> he has the charm, the charisma, the personality, the good looks. i've seen some real pros in my life, but he was the best of the best. >> and at that point, the scales fell from my eyes.

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