tv Mad Money CNBC February 20, 2015 6:00pm-7:01pm EST
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call the final call carter? >> well, at this point we think you should be contrarian and bull miners buy some gold. just get up the courage and do it. >> mike? >> sell some puts. >> macy's define risk call spread. >> our time is expired. i'm melissa lee. thanks for watching. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull at work somewhere. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cray welcome. my job is to teach and coach uf. call me. call or tweet me. we've had a real good run here. pretty much week after week after week. it feels terrific to end this one on a high all-time record kind of stuff note dow climbing
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155 points s&p up nasdaq gaining. even though it's largely because of the news that greece and the eurozone have reached some sort of agreement on the terms of a bailout to deal with the greek financial crisis. here's the thing. you better have your biolist ready monday in case it sells off after realizing this greek deal is a total kick the can four months down the road cop-out. it doesn't solve anything and frankly really isn't even a done deal. so what will we be looking at next week? what's the game plan? we're still in earnings season with a heavy emphasis on retailers. my favorite stocks. the ideal for cheaper gasoline and colder weather. what else? inquisitive companies might tantalize us with ideas. monday morning we hear from a company with a stock with a magnificent move. i think it's not over. i'm talking dish network run by this wily charlie ergen.
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i bet we'll hear about deals involving cable cam bows and we'll likely hear the upbeat tone. i feel sad about some of the combinations t-mobile's been talking about. next up, we know oil and gas companies have been hammered beyond all recognition. more indebted players are completely on the ropes. how bad is it? we'll listen to gary evans of the hunter resources. if evans lays out a clear set of sales and not take it off the table, i think this $2 and change stork could jump regardless. but it has been merciless. we get express scripts, the pharmacy company that seems to have run its course. you know why? remember how it started? because of that fight they made that deal with abvee for the hepatitis c drug?
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that's where the biotech war started. i think express scripts will take a good story about new found buying power. they could cause the biotechs to dip if they say they're not done with the price wars they're incityin ininstigating. tuesday and wednesday, domino's pizza, i want to focus on india where the company got accelerated growth. i want to hear about decline in commodities, plus anything new technology. domino's has been the most forward of all food service companies in embracing the internet. how is apple pay doing for them? how about retail. we've got retail reports earlier this week. macy's on tuesday. i think both will be benefitting from the recent cold snap as they clean out their winter inventory at a premium of what they thought they could sell it a few weeks ago. that's typical when they have to mark down the winter and bring in spring. that stuff is flying off the
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shelves. macy's should be fine. i bed dillard's which doesn't get enough credit for its turnaround will put out strong numbers. i like that company. is credit still too hard to get? is it the spike in home prices not sales has now passed? why don't let toll brothers tell us when they report tuesday morning. they are thorough in more than just their narrow splotch of the industry. we'll hear from home depot. i bet the ceo will talk about his predecessor and come up with nice numbers in a totally coherent conference call as we listen aisle by aisle what's selling better than planned. we could also have major news next tuesday getting report from valiant, the drug company. we'll announce a sale. if they do i'm telling you that both stocks will go higher
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because it's extremely positive for valeant to buy a company with a high tax rate and have the tax rate slashed. they need to continue to roll up companies. that's the big story of next week if you ask me. one more panera and noodles, did you see that? missing the numbers. i think cracker barrel could put up strong rumts tuesday. this is the interstate highway restaurant chain. and the money consumers are saving while they drive courtesy of cheaper gas could find its way into cracker barrel's coffers. don't forget to order the apple pie and ice cream. wednesday is more retail. lbrands, die equity and applebee's. it wanted to come down. that's how you want it to come down so the trust can buy more. all three have terrific ceos, all expected to have numbers bump. listen especially to target's
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ceo hear about his vision for the company. after the close wednesday and the stock has been quietly climbing inch by inch. last year at this time sales force reported a terrific quarter. but stock initially went up and nosedived. it marked the multimonth pasting in the group. i don't expect that to happen. i expect the opposite to happen. i believe sales force could punch through the old highs and work toward 70. on thursday, i can't wait to hear from black hawk up. black hawk network holdings the company that makes prepaid cards. frankly i don't know how long black hawk can remain independent. i think the size of the opportunity here is much bigger than that. this prepaid gift card business is one of the hottest segments in retail. black hawk owns the segment. after the close thursday we have
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to wonder if jcpenney can deliver. it does have that huge network of stores to leverage so you can return goods, i want you to keep in mind that you need to hear what pennyey says. additional spending which they told you was peaking if you just waited for about three minute noose the conference call. that's how a stock can sink three bucks on a headline and zoom back up to close $4.60 all-time high today. it was always about the spend andity eventual winddown. not about the numbers. guys you have to focus. monster beverage also reports monster sales. the convenience store is the ones that are attached to gas stations. i don't know if that's from spare change from gasoline. i bet they have a boost in sales. i like this one going into the
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quarter. that's me having a cool monster. not bad, right? you can run it backwards. lately the best performing under the radar retailer is ross stores. dress for less, man. i don't know how much more ross can do for an encore so maybe this one i pull back. i don't want you to chase it. friday we hear from nrg energy. the ceo david crane loves to talk he's a visionary, sees all the electricity we can make from rooftop solar. i bet he'll flesh it out for us. here's the bottom line. the next week you need to be prepared for when the euphoria from today's greek bailout starts to fade. get europe inspired sell-off if or whennage athens balks. that can be your chance to buy higher quality stocks i'm talking about that i think are going to have very very very very very very, very good
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numbers. eleven len in new york len. >> caller: greetings from westchester county new york. thanks for taking my question. i bought bank of america at 8, sold some recently. now i'm holding the balance and basically same scenario with citigroup. my question is what is your thinking, buy, sell hold in bank of america where the ceo is taking a salary haircut, profits are challenged and interest rates poised to increase. >> the reason it did that is because john is doing everything right and wells has got just that clean, clean story that is domestic, no international. i don't want international. even though i think europe is turning i don't want international. too many headaches. larry in minnesota. larry? >> caller: boo-yah, jim. >> boo-yah.
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>> caller: morgan stanley annoyanced a spin-off of ferraris from fiat chrysler. i wondered if you could tell me more about that. >> i just know the fiat chrysler side, a terrific stock i don't think is done going higher. i don't think toyota is done going higher. let's take another call, vernon who may be from vernon california. vernon in california. >> caller: boo-yah, jim! >> uh-huh. >> caller: jim, tell me a little bit about ma mastercard keep it sell it. >> ma looks like it's -- this stock could take out 90. you know what? there it goes. i think mastercard is on fire here. i've got to tell you i don't think it stops at 90. that business is very very strong and that company is very well run. by the let's go to calvin in my home state of new jersey. calvin! >> caller: jim, how are you? >> i'm all right. how about you? >> caller: oh, i am excellent.
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i'm a little cold. i'm only 22 minutes away from you. a path ride downtown newark new jersey. my question to you is this. i bought an international bank stock around $9.12 a share. the stock has taken a hit because they cut the dividend the symbol is san. >> the problem there is they've got this american, their stress test being applied that people don't like. this has been a big win and then a big loss. i think it will be a big win again. hold on to that. next week the highs from today's greek bailout fades. it will do you really think it will be that easy? it's europe for heaven's sake. "mad money" tonight, crowning a queen in the epic battle between two of the biggest names in beauty. by the way, let's talk twitter
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for a second. twitter is flying high in 2015 up nearly 40% this year. have you missed the move or does the little bluebird have more room to soar? plus a rising natural foot player backed by bill gates scored another major victory. don't miss my exclusive with the ceo of a company that one day will come public that you want to own and that is called hampton creek. >> announcer: don't miss a second of "mad money." follow jim cramer on twitter. have a question? tweet cramer. send jim an e-mail. or give us a call.
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a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard. female announcer: presidents' day is over, but the savings go on at
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am i beautiful yet? >> you're gorgeous. >> it brings in billions, you know. >> i know. you're gorgeous. >> hey, as i've been saying for years, there are a few things more important than execution. the ability of a company's ceo to deliver. the person at the top matters. consider this case study a battle of beauty in the cosmetic space between the best of breed'sbreed estee lauder and worst of breed avon. beauty may be in the eye of the beholder not the stockholder but at the end of the day execution comes down to the numbers just like always. estee lauder's most recent quarter was gorgeous avon was hideous. estee lauder has given you more than 20% gain in a terrific 178% gain over the last five years. avon is a different story, a
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stock down 42% in the greatest bull market of our lives in the last 12 months and down 72% over the last five years. while your cd looks pretty good against that they can't pin all the blame to that hideous underperformance on avon's ceo. she only took over three years and her predecessor left her a huge mess to clean up. what a bad hand it's not like mccoy has been doing a good job. it's gone from 18 and change to 8 bucks and change. now a single digit midget. i think estee lauder is great and avon i wouldn't touch with a ten-foot pole. how is it that these two companies which are basically in the same business selling cosmetics and personal care products can have such radically divergent products? how is estee lauder's products a thing of beauty while avon looks like it fell off the ugly tree
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and hit every branch? part of the story is estee lauder is well manage. avon feels like it's not being well managed at all. these two companies do have quite different business models. estee lauder sells a host of different makeups, hair care and perfume brands in 150-plus countries in department stores specialty, retail drugstores, spas, hair salons and the occasional freestanding store as well as its web site. avon is a direct sales company. you can't just walk into a sephora or any other retailer and ask for avon's merchandise. instead, they have an army of roughly 6 million independent sales reps in over 60 countries who have parties and go door to door. you can make the case it's a tough time to be in direct sales. maybe they're not doing as well. you're thinking herbal life, right? think again.
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that doesn't hold water because tupperware report at the end of january was gorgeous. avon's problem is not the direct seller. the problem is it's a bad direct seller with a track record of a lousy execution. estee lauder is a, on the other hand high quality company with top notch execution. when i saw these brands it amazes me that all the good ones are theirs. clinique clinique, origins, mac, that thing is smoking. bob bobbi brown, avida, michael kors, beauty smash box among others. when estee lauder reported on february 5th the ceo knocked it out of the park. it was an astonishing quarter, blew away every line, every quarter. this is the kind of mostly international company you would expect to be hammered by the strong dollar, like whoa is me
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kind of thing. yet he delivered an 8 cent earning with higher than expected revenues and record all-time gross margins. some of the bears here had begun to question whether the company would reaccelerate sales growth at least on a local kiernscy basis. their sales increased by 5% including 4% in the americas. it's no wonder the stock suddenly has become one of the sexiest models in the wall street fashion story soaring from 72 to 78 the day it reported. that's its raw power or higher. it's continued to climb, rallied to 81 dollars and change. here is the amazing move. i think estee lauder has more room to run. we know the company's slower growing brands have just begun to turn around. meanwhile, under the leadership it's invested in other brands. consider in 2007 estee lauder and clinique represented 60% of the company's sales now down to
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40%. midsized brands now collectively represent as much of the company's sale as estee lauder and clinique. and the midsized brands are growing much more rapidly. mac in particular. where did this thing come from? it's got fabulous growth in all regions including places that no one has growth. china, brazil, turkey. on top of everything else estee lauder is an innovator. it spends a lot of money on research and development so it can roll out lots of new products. it's avoiding the cannibalization of its existing business. this focus on innovation is now estee lauder created the sixth best selling makeup products in 2014. plus at a time when companies are struggling overseas's estee lauder is growing. this one any weakness this is a high quality growth stock to buy in this category.
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now let's talk avon. what can i say about this dog eat dog of a company that refuses to snoop? in its latest quarter, avon reported a 5% -- weaker than expected sales. they declined by more than 12%. disappointing four-year guidance. the expectations have finally gotten so low that avon stock failed do go down. maybe they're done getting punished. i can't get my arms around feeling good about it. remember it's a direct sales company and the business is about having good sales reps. but that's why it's declined. that's the most important metric metric. that has to go up. the trends have gotten worse. avon number of reps declined by 4% in this quarter. the company has retention issues, a symptom i think of the broader problems in this bloated, undermanaged company. that has been the history of this company for a long time. avon is not creating new opportunities for its sales reps
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to make money or attracting new companies with innovateive products. the company's sales reps have been discouraged by the slow speed of delivery of products quite a difference from estee lauder. if you're a direct sales company, you need to master logistics. avon has not done that well. they just pulled out of 13 companies and the caribbean. avon that gets the vast bulk of sale overseas is getting crushed. 17%, the revenues took a 17% hit from foreign exchange in the latest quarter. i follow hundreds of companies. that's the worst of any company i followed. but the weakness in brazil russia and mexico it's been hideous. estee lauder can thrive even in this market. it's brands that are trying to trade up. but avon is much more of a mass player. that's not helping them. bottom line, sometimes investing is as simple as buying what's beautiful and ignoring what's ugly. right here, right now estee
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lauder is looking gorgeous. avon looks like a gargoyle. if avon comes calling, don't you even think of opening the door. much more "mad money" ahead. including my take on twitter. did you miss your chance to pull the trigger or is this baby just starting to take off? rising national foods star hampton creek, it just scored another big victory. details from the ceo. plus, my exclusive with a growing crownedgrow ing crowdfunding player. stick with cramer!
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we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip
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recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. i think twitter has issues. i think it is a revenue gold mine. i think that is a reflection that people don't fully understand twitter anymore. i think it's become the new pr news wire where it's more bull horn than social network. >> why am i so adamant that twitter is worth a fortune? certainly a lot more than its current $30 billion valuation. it's not just because what you just saw. billionaire and full-time great guy mark cuban saying it's a gold mine. though it most surely is. it's not just because cuban said it's a bull horn one he uses
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repeatedly to get his message out. it's also because people have heard the ftc talking about the blocking of the cisco u.s. food merger or ceo talking about t-mobile's perfect quarter like the squawk thing. they like to give color of whatever they're talking about to twitter. legere wages a war on twitter. people love it. he's also figured out all publicity, even really bad commercials is now good publicity. why? because of twitter. that guy is instant rumble. now, i love sports. we have march madness coming up. i love playing bracketology. maybe three different game thz year. i want my info instantaneously. i can't wait to read it or find out later on. in the same way i followed adam shefner during the fantasy football league i couldn't live without the tweets from that guy. it's not just the good guys who
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give you the heads-up from twitter. the really bad guys like isis have taken to twitter, too. twitter has become a one-stop shop for the raw news in a way that no one else can match. raw. which cuts to twitter's real worth. people have always been willing to learn about things they don't already know. that's why i used to read say, "time" magazine. it was all about opening your eyes to what you were unaware of. but what most of us really want is to be current about things that we're already interested in. curated by us in a serial time line. that's what twitter does. we can follow everyone who's important in every area we care about. and they'll all provide content that amuses us, makes us coming back for more. they do it free for twitter. twitter doesn't pay them. when you really watch the oscars without twitter, would it even be fun? i know if i were running twitter i'd have a half dozen ideas about how to monetize the site. i know how to monetize with
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ideas that were pretty revolutionary at the time. i know it can be done again. no, i'm not trying to sell my services to twitter. my ideas are certainly better than theirs. i'll waive my fee. they can look at other ways to monetize their content. i'm just saying the idea of this company, the home of your personalized news service not actually making lots more money is ludicrous, but not as ludicrous of why google doesn't make off of youtube. twitter is invaluable and fun. so is facebook but for many different reasons. but facebook has figured out how to monetize its content in an additive way. i like their sponsor ads. i can't believe it. you know what? twitter will figure it out, too. or maybe somebody else will do it for them. let's go to tyler in indiana. tyler? >> caller: tyler, i'm a late-night fan. love your comedy and humor. i think you're amazing. i have a question on angie's
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list. >> i was surprised they put it together. i didn't think they would. we said we didn't like the stock. i still am not crazy about it, but it looks like a decent spec now. twitter has become the world's personal news service. that is with worth a fortune more than it's selling for. it's only a matter of time before they can figure out how to mine the amount of gold they're sitting on. much more ahead, including my exclusive with the rising natural food player in hampton creek. i'm going to ask the ceo what's next. getting a glimpse into crowdfunding. could it help turn your start-up into a star? plus, your calls, rapid fire just ahead in the lightning round. stick with cramer. can it make a dentist appointment
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tape and check in with hampton creek food, this is a company taking this story to the next level with its plant-based egg-free alternatives for mayonnaise and cookie dough. you may have seen their products in your local supermarket under the just mayo and just cookies brands. after the latest funding in december, the company has said it plans to expand into biscuits crackers and pasta, using plant-based protein. that's like wave with drinks. i think hampton creek is exactly the kind of company -- recent deal with the multinational contract food service outfit we'll talk about in a moment. don't take it from me. let's check in with the founder and ceo of hampton creek foods. hear more about his company and the future of plant-based egg-free alternatives. welcome back. >> good to see you.
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>> josh you've got news and i think this is the news the kind of verification i've been looking for to make sure you are a food service potential giant. tell me about this deal. >> it's a big deal for us jim. compass group is the largest food company in the world. they serve 4 billion meals a year. they serve food at harvard, "new york times" cafe, goog hp qualcomm. we just stuck a really profound partnership with them we're supplying cookies, mayo opening up the channels to supply the stuff you mentioned, biscuits and pasta and lots of things to come. and the scale is enormous. >> i thought this was so exciting. when you came here you brought a big tub of mayo i'm showing mine, just mayo. will you be able to do those little packets, like the ketchup and mayo packets? would you have that kind of
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thing in your contract? >> we do in the food service world. we call them pcs. we'll be doing the pcs, portion control, the pumps not only the regular but the flavors, chipotle and sarache. and i'm trying to convince compass group to introduce a new product, i don't know if you've seen it but it's called just jim. >> this is a -- wow! thank you for that. i want to understand. in the context of what i'm thinking about here, you're talking about really upending the system in a way it hasn't been up upended in years. mayo packets has been a staple why would anyone want to use egg-based if it tasted the same and you know it was plant-based? >> you know, jim, i think the point is human beings care about food that tastes damn good and care about food that's affordable. of course they care about things more sustainable and in line
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with health and wellness. to your point, frankly, if we and other companies can figure out how to make things taste better, get them to a price more affordable, these other things that matter the answer is it's silly to do anything different. i think that's why you find our friends at compass group moving in our direction. this is much more than a trend. this is a new way of thinking about things. it just makes food a lot better. >> josh, maybe this is just margarine. maybe this is just the evolution of corn-base rather than butter. am i thinking too big? i've got to rein myself in if it turns out to just be olio so to speak. >> no. jim, the way to think about it is not a trend, not a side item. we have, as you know exploding populations, rise of type 2 diabetes, rise of obesity. we have resource scarcity. and there aren't enough companies asking the questions, what would it look like if we just started over? what would it look like if food in a mass xaibl, not in a niche
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way, not just in your local market, but in a way that actually matters with scale, can be a lot more affordable can taste a lot better? can have these things that matter? this is not a trend. i think this is something as you pointed out many times, this is here to stay. >> absolutely. people need to know it's not a fad. they absolutely thought for sure that it was, even people like jim at costco thought it was a fad. it's clearly not. the cookie dough bust of jim cramer. what happened there? we still have that? >> well, jim, i heard from your producer that unfortunately your cookie dough head is melted in your refrigerator. and i hope before it melted you had a chance to at least maybe nibble on the ear take a little bit out of your head before you guys threw it away. >> all i ever hear about is how great my staff is. i'm rethinking everything right in front of me. one last question. world's top ten most innovative companies 2015 in food, you guys are alga rhythmic. you're trying to find plants all
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over the globe that work for you. >> jim, there are 400,000 species of plants out there, and you've got to ask yourself why 92% of them haven't been looked at to make your food better. we have a team of data scientist that's used to lead google map and food scientists that find the best of them. we use data science, biocondemn awesome culinary. if you keep doing the same thing, you won't figure out how to make the good thing work for everyone. that's why we have a new approach. >> i'm proud you come on the show. i think you're doing a great thing. i think this is food making it affordable and healthy is terrific. josh tetrik thanks so much. back on "mad money". >> thanks, jim. >> guys, this is what we live for, isn't it? exciting company.
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the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. gonidakis. it is time! time for the lightning round.
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and then the lightning round is over. are you ready? time for the lightning round. starting with frank in new york. frank! >> caller: how are you, jim? thank you for taking my call. >> of course. >> caller: i watch your show all the time. i'm a big fan. >> thank you. >> caller: my question is johnson & johnson. i've had it for a while, and i want to know if -- it doesn't seem to be moving too much. >> no it doesn't. but after the close today, this talk -- johnson & johnson need their game back. they don't have it right now. that would be a welcome transaction. allen in maryland allen? >> caller: boo-yah, jim from the balmy state of maryland where it's currently 5 degrees. >> there you go. >> caller: so i bought some facebook about three weeks before earnings came out. obviously they had a blowout quarter and a great year.
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instagram valued at about 35 billion. but what's going on? >> i think we'll probably find out it's insider selling. i have to tell you we don't want to sell it. why? because i think if you look at 2017 numbers, which isn't that far from now, you'll see that stock is not expensive. going to burton in washington. burton? >> caller: hey cramer a boo-yah to you, buddy. >> what's going on? >> caller: i have a sexy speculative pick for you. compugen. >> i like gene sequencing but they threw a sale in the biotech recently and i like this regeneron. i think there's a lot more head in the cholesterol. let's go to jim in north carolina. jim! >> caller: boo-yah, jim, from the tar heel state.
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the question regarding progressive insurance, pgr. >> progressive is a great company. it's always been a great company. i recommended that stock when i was at goldman sachs. i still think it's good. i have to tell you, though. when people say insurance, i only think fishman. i think travelers, trv, because that guy knows how to underwrite. let's go to rod inn in florida. ron. >> caller: hi, jim. longtime listener. >> excellent. >> caller: my stock is ship finance. i'm looking for something for income income, not worried about the growth. >> geez, i tell you, i can't be as confident. when i think of income, i think of the kmi because rich kinder has game and even down here at 48, 50 even 35 he's still going to give you that deal. let's go to jim in illinois.
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jim? >> caller: jim, first-time caller from chicago, home of the blackhawks and white sox. my stock is watsco. >> my friend turned me on to that stock about 100% ago. you have got a winner on that one. terrific. and that ladies and gentlemen, concludes the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. >> caller: jim, a big boo-yah from the palmetto state. >> great barbecue, what's going on? >> caller: greetings from buffalo, new york. >> oh, man, my friend biebs is going to love this phone call. what's up? kurt in idaho. kurt? wow, kurt pick me up. whoa. >> caller: been watching you since you had gallagher hair.
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opportunities to invest in well vested start-ups, as minimum as $2500. whether we get in on the jobs act scheduled for this october, a company may be able to open up its to be fairly wealthy to allow investments by regular people. this is a great company to go off the tape for. it has a network of 25,000 users, 7500 accredited investors, unlike similar platforms that basically act like listing services they actively vet the start-ups that want to list on their network and only accepts about 2% of them. this is incredibly exciting even investing in start-ups can be incredibly risky. let's take a closer look with the ceo and co-founder of scene invest, find out more about his company. great to see you. >> good to see you. >> this is exciting because a lot of people say, why can only rich people invest in things that could make them richer? >> right. >> i know there's a credit
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issue. but tell me what you're doing to make it so at the beginning at least ordinary investors who are wealthy can get in and then maybe ordinary investors can get in. >> we connect investors to high quality start-up investment opportunities. and historically only venture capitalists have been able to get into start-ups. what seed invest does is we have an online platform and enable ordinary investors to get into start-ups for the first time. >> we have a lot of people who call and want to buy 2,000 shares in a very red-hot deal and i'll say listen it's already going to move or your broker would have it. a lot of the things you may be investing in ultimately could be that deal and the brokers may not have it but you might allow people to get in. >> yeah. seed invest was built by investors by ss for investors. fairness and transparency is important to us. any investor on our platform will get in at the same terms as a venture capitalist. >> that's terrific.
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how do you make money yourself? >> so seedinvest as you alluded to before completely free for investors. we don't charge any carried interest like funds do. >> right. >> no monthly fees management fees. we get paid by taking a small commission on any capital the start-ups are able to successfully raise from us. >> give us an example or two of what you're invest nd right now. >> sure. i can talk about -- i don't like to say my favorite company because it's like my favorite child, but i'll give you two examples of companies we're excited about. a first is a company in the virtual reality space called virtuex. it works with the -- >> i love that. >> when you're wearing that, instead of using a controller/you're playing call of duty you're moving around in the game. you're in a virtual reality world. guess what mark cuban actually invested in the company alongside us. second company is in the robotics space called night scope. they make a five-foot robot that
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weighs 300 pound that's can hear and see and smell. it rolls around alongside human security guards to protect schools and malls and microsoft actually just adopted them on their own campus. >> that was something that it started with the boston massacre. >> that was the start of the problem. they're solving problems and people are getting in at the ground floor. >> are there venture capitalist whoz don't want you in? >> that was a challenge at first. but since then we've been able to prove that we're able to get our investors to add more than just capital to these companies and have value add. >> does that mean the same companies that may make the rouns in silicon valley are also making rounds here? >> that's right. most of our deal flow actually comes from venture capitalist that's are not investing in the entire round and want to share a part of the round with investors through seedinvest. >> explain the legal hurdle right now for someone who's watching. they always wanted to have a
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couple of shares early on how they may not be able to qualify right now for seedinvest. >> sure. the genesis of seedinvest is three about three years ago we saw the formation was broken. we got behind the effort to change securities laws. we changed it through something called the jobs act signed april 5, 2012. because of that, now investors can invest in private companies on the internet for the first time. but you need today to be accredited, which means you to make over $200,000 or have a million in the bank. that is all going to change later this year but not yet. >> so fair enough. so people who are interested, they can go to your web site and read about it. if they're accredited they can get to work. if not, maybe they ought to speak to someone in government because there's no reason why only wealthy people should get in on the ground floor. >> absolutely. you said it best. >> thank you very much. co-founder and ceo of seedinvest. if i were to start over again, i'd give some to the mutual fund
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who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? a couple of ideas for next week. monster could be terrific and don't forget dillards. just because you don't shop there, they could have a dynamite quarter. i like both of those and i like retail here. i'm jim cramer, and i'll see you monday!
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>> narrator: in this episode of "american greed"... barry minkow starts a business in high school. >> if you work hard and you're honest, then you'll do fantastic. >> narrator: and he becomes a sensation on wall street. >> barry minkow made his first million by the time he was 19. >> narrator: from teenage millionaire, he grows up to become a nationally known fraud-fighter, even profiled by the likes of "60 minutes." >> he searches public records, employs private detectives, and goes undercover. >> narrator: but all along barry minkow is pocketing millions in his own perfect scam. >> "we know fraud. and you're just fraud." >> narrator: he should know. because barry minkow acting as a fraud-fighter is like having a thief guard the bank vault.
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