tv Mad Money CNBC February 24, 2015 6:00pm-7:01pm EST
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>> google it. i'm not even making that up. >> is that your final trade? >> no, it's not. hewlett-packard, not honeywell. hpq on the sell-off. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 for more fast. jim cramer and "mad money" is up next. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always work somewhere and i promise to help you find it. "mad money" starts now. hey. i'm cramer. welcome to "mad money." all the people want to make friends, i'm trying to save money. my job is not just to entertain but to teach and coach you. call me at 1-800- -- or tweet me @jimcramer. in a bull market things go right. that's what happens. objections get rebutted fears are quelled. which is how the dow and s&p
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rallied to record levels. s&p climbing .28%. by the way that's a 15-year high. yep. bull markets take their cue from johnny mercer. as investors ak sen wait the positive eliminate the negative and don't short mr. in between. let's start with some big winners. last time we learned the u.s. is investigating whether the gold market has been rigged by some of the world's largest banks. now, we're all used to what happens after that news right? immediately the targets get hit. and all too often the case one of them is the bank jpmorgan. just when the stock looks like it's going to break out we get this investigation. and like chuts and ladders this seemed like it was headed right back down into oblivion. oh, but not in this market. jpmorgan convenes an analyst e meeting and going to charge
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because under the new capital rules the company is penalized for too much capital. so the stock doesn't go down at all and looks flat before the openings. some hoped jpmorgan might have split itself into easier to manage morsels. nope, in a session that should have been accompanied by al green's let's stay together, jpmorgan jpmorgan's cfo said why a breakup would cost the company money. then goes higher still. step back for a moment. here's a bank that's being investigated for allegedly rigging the gold mark, charging fees no one else is charging and shrinking value. the result jpmorgan has one of its biggest gains in ages up a buck 47. that's true bull market action. and to think they gave me a toaster oven when i opened my account 35 years ago. or take home depot. when i got up this morning i was reading in ahead of the tape piece in a money and investing section of "the wall street journal" and it was entitled home retailers appear too
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pricey. and made you feel like home depot was ready for a fall because its share price had become, and i quote, untethered from the rebound in home sales and construction. the stock, the article suggests has begun to price itself out of the market. it was a scary, well-reasoned article. in a bear market this piece would have come out yesterday. you might have taken action. you might have shorted the heck out of home depot in the expectation that the company would disappoint when reported this very morning. and then it would blow up and you would make a fortune being shorted. but this is not a bear market. it is a bull market. so while i'm reading this home depot is too pricey and untethered from reality piece, i'm also watching home depot's earnings scroll across the tape. they're sharply better than expected, maybe even astonishly better than expected as in magnificent magnificent. you get this negative article after home depot employeeblows away the numbers. think of all the money you save
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because you couldn't take action. stock as the article suggested. no harm no foul mr. ahead of the tape. or toll brothers three months ago the terrific home builder reported a quarter the analysts didn't like. the company's excuse what they didn't like because toll says earnings didn't include a lot of good news about to come from some apartments it planned to open and put for sale in new york. the analysts huh-uh wasn't a bull market then. it was tepid. the analysts were skeptical. fast forward to today. this time the company reported everything toll said would happen three months ago did happen especially the price for properties so the stock soars and a bear market delivers. in a bull market toll says not to worry. and then it blows projections away. looks like housing and home depot aren't untethered after all. both going higher. next up for the longest time we've been pushing for first solar to split up right here to give a yield and a growth vehicle that manufactures those products. the company seemed to be
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dragging its feet. that is until today when first solar does a joint venture with another solar firm and sets up yield co. hence why the stock rallied 10%. total bull market reaction to a bullish move. now, in a bear market even things that make sense don't work. in a bull market they work writ large. take cracker barrel. if you remembered our game plan last week i said this restaurant chain, which is uniquely levered to the interstate highway system wouldn't blow away numbers when it reported because the locations are the natural places to stop for the on-the-go travelers safing money at the gasoline pump. sure enough today cracker barrel reports a fantastic quarter and cites the fact that you guessed it, it's the natural place to shop for the on-the-go travelers saving money at the gasoline pump. it's textbook bull. you say it here. comes out there. how about shake shack, burger train, brain child of uber restaurant and danny meyer, a
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month ago stock more than doubled out of the gate. today, skeptical analysts rolled out coverage. and i have to tell you reading through them it was tepid at best. of the seven firms covering shake shack only one recommended it. only one. i say ouch. in a bear market those six holds would have hammered the stock into oblivion, but instead it's the lone bull by recommendation that gets listened to. and the stock flies up 4.5%. why? because the piece articulates a view that shake shack is like no other. in fact, it's a category unto itself fine casual dining. could shake shack be the tesla of burgers? a burger so good that -- of course it's not just individual stocks. last week it was supposed to be brought low by thein tractables. instead the new greek leadership said it would renounce any onerous terms meets and agrees to onerous terms.
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whoa wait a second. i know it sounded bad for greece. but greek leadership goes back to greece, speaks to the parliament they agree to do nothing at all. nothing. and the germans go along with it. all right. so maybe you think they gave in something, i couldn't find anything. bullish. how about fetchy janet yellen on the hill today. in the old days we wait with baited breath as the fed chief would drop some sort of bombshell cause the stock market to swing wildly. you know what you would be after the fed chief speaks you were shocked, miffed angry, confused, upset, because of the testimony. but yellen let me give you the sub text of what she said. you know in the cartoon version or the bubble or whatever that is. the chyron what people call it in tv. look nice people i'm not going to say anything important or different from what i've already said. i'll be polite and you'll trust me and i'll trust you, you'll let me do my job and i'll go
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back to work when you're done with me. thank you very much. she came she said nothing and she conquered. believe me that only happens when the bullish stars are aligned and ursa major gets obliterated by taurus. usual caveats, there can still be things that sting. why can't macy's do better than it has? when will communists in china start up the junkets again while they -- it's like china's faux communist decided to embrace mall ichl but only when it comes to crushing las vegas sans and wynn. things go right in a bull market. and when they don't go right people still find reasons to cheer and buy stocks anyway. that's how ultimately markets really do go higher and this one knows how to go higher better than any i have seen in ages. i feel like taking calls. i would like to start with tom in florida. tom. >> caller: hi, jim. in a massive bib di bob di boo
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ya coming to you from destin florida, my friend. >> i caught some pamp no -- >> i hear they can break your arm when you get into one. that's what my friend told me. >> they taste good. you do it with a little -- let me give you insight. it's a little off track, it's like the food network, but use aunt jemima pancake batter. >> caller: sounds good. i want to tell you, i have enjoyed your show so much basically from the very first week if not the very first day you were on. i guess that was about ten years ago, correct? >> man, you are old as the hills if you remember that. i wasn't around for the beginning of the show. >> reporter: listen young man, i happen to know i'm six years older than you are. so no complaining. >> thank you. >> reporter: anyway-- >> caller: after i got over the initial shock of listening to gunshots and crying babies --
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>> yeah. >> caller: and i consider you a brilliant guy. and what's more even better you're a great guy. here's my question. i own a telecom stock idt. >> it's the biggest building. >> caller: i like it for the best of all possible reasons, it's making me money plus paying dividends while it's making me money. and the news out is that they are going to be moving into cuba now with this new congressional act that was passed. and i read that cuba has some of the most expensive phone service in the world. so it sounds like a great idea. i just sort of wanted -- >> here's the bottom tom. cuba's a very small country. you know what maybe it's just icing on the cake about cuba. but don't make a decision on it. i'm going to go clear across the country. i'm going to audrey in
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california. >> caller: what's your opinion of digital ally dgly. >> i'm not alied with digital ally. there are many other stocks i like. you know i believe that taser's good. now, taser is caught in the earnings crossfire. i use a little you know gun metaphor there. february 26th it reports, but i like taser very much. i think it could come in because it's up so much from when we first started recommending. wow. we've had a coup frl this state. let's go to kirk in idaho. kirk. >> caller: hey jimbo, kirk from boise, idaho. >> right back at ya. >> caller: two weeks ago you had some good things to say about exact sciences. and i like the stock. i decided to wait until the reported earnings. and they got kind of destroyed today. >> but you know what we don't want to get too greedy here. this stock has had just a magnificent run. it's been fantastic. and i don't mind people taking profits in this exact science. it's been amazing. we liked it in the single
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digits. i know they've got this call in cancer way to be able to find it. but not everybody's on board with this. and i've got to tell you, if you want a ca-ching exact science, i am giving it my lesson. that's big. okay. in a bull market things go right. and therefore they go higher. when they go wrong, hey, people find a way to buy anyway. enjoy the ride. on "mad money" bite into the fresh earnings report from domino's pizza. the company knows dowugh, but can this buy extra cheese. is disney too good to be true or sit back and enjoy the games? should you party with fiesta restaurant group. stake with cramer. don't miss a second of "mad money." follow @jimcramer on twitter.
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welcome back to domino's. ♪ don't let the headlines mislead. domino's, the world's second largest pizza chain with over 70,000 locations, best technology in the business including fabulous online ordering platform and terrific mobile app. up a quick 37% with dividends since we last spoke to the ceo in october and the stock has given us a magnificent return over 1,000% including special dividends, that's right, you heard, since i recommended 10
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bucks roughly five years ago. domino's reported that the company missed earnings slivering 2 cents off higher costs. to me that was perhaps the least important thing about the whole quarter. domino's posted an astounding 11.1% domestic same store sales growth. international 6.1%. these numbers especially domestic ones are incredible. and we have seen only a handful of restaurants actually in my lifetime that's been able to generate double digit gains. can this performance continue? let's check in with patrick doyle, he's the president and ceo of domino's pizza. mr. doyle, welcome back to "mad money". >> thanks jim. great to be here. >> pat, are we going to have the debbie-downer domino guy when the stock was in the 50s in the spring? or are we going to get the guy who came to play in the fall when the stock was at 73 and up that big since then? which guy do we have? >> pretty happy with the quarter. it was really a terrific quarter for us across the board. the momentum was great.
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very happy with the results. >> you know 11% is incredible. we've got to talk about how you did it but there was something else. for the first time in you're opening 100 new stores. that's the first time in 11 years i've seen that kind f growth. is that because franchises have more money? is it because you say pedal to the metal? >> that's exactly right. franchise sees are doing well. they made more money last year than they've ever made. they're excited about the brand. and that energy is playing over into them opening stores. so we did, you know over 80 net stores open domestically. we did almost 750 stores net open globally. and so the franchisees are excited. and they're investigating in the brand. >> the other day, pat, we saw walmart had to raise wages. nine buck maybe goes to ten. i'm thinking of you and read these numbers and thinking we got delivery people they're not talking about making a buck more. they're talking about having their own franchise, aren't they?
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>> absolutely. over 90% of our franchisees started as hourly workers. our drivers are on average making more than kind of the ten dollars that walmart was talking about with their tips. but, you know i think the best news is that you start to get some wage pressure because that means the economy's doing better. i've always said that the best predictor of same-store sales for us is more people being employed. so more people being employed means they're going to buy more paz e pizza. if that puts some upward pressure on wages, that's actually a great thing. >> yeah i thought that was a rational moment in the call because a lot of people were saying wage pressure we've got to be in trouble. no, wage pressure up means more business. now, my executive producer showed me an article recently how domino's won india. i need you to tell people how you can win a place where frankly when we think of domino's, we don't think it travels. but it's traveling like mad. >> yeah, it sure is. and india's been just a phenomenal success story for us. it's now the market outside of
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the u.s. that has the most stores. we're between 800 and 850 stores in india now. their economy had slowed down a little bit but it's been coming back now. the new prime minister i think is doing very well. i think you can start to see the economy moving. and, you know it's a product that is translated great there. obviously it's easy to have a vegetarian pizza. that's about 70% of our sales in india. >> who told you that first? where did i tell you to go because of my vegan and vegetarian daughter? >> absolutely. you were right. >> no, we were joking about -- my vegan now is a little more other worldly. here's a thing that really got me in the conference call. you're talking about something -- or there are multiple things but patrick isn't there something else going on that you can do 11? isn't there just something that technologically you've been able to take big share but the pizza
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has become a loved food again? what occurred in this country to make it so that pizza is the way you watch a game? that pizza is what you order -- something happened here. and you're at the inflection point. >> yeah. pizza's america's favorite food. you talk to kids what do they want most? it's pizza. you know i think when we fix the pizza five years, six years ago now, that got it going. it got people interested again, the technology and kind of this whole tech-to-table story has clearly been working. but you're right, i mean people love pizza. kids love pizza. families are happy with it. and once we got that right, that really started this growth trajectory that we've been on. and clearly as you saw nourt quarter has only been building. >> now there are things that you do that strike people's fancy and make them like. everyone said to me on the set ask him about dom. why do things like dom work? >> you know what?
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people want to associate themselves with a cool brand that's doing new things that's trying things. dom is working well. the customers -- we've put actually a half a million orders have been placed using dom now. and, you know, people want to see that. they want to associate themselves and do business with brands that are trying new things. and, you know they're going to get some wrong at some point. dom worked. and customers are excited about it. and so it attracts them to the brand. they see where somebody's doing new things trying new things and they want to do business with us. >> well you've got the most impressive social media -- you really are the social mobile digital cloud restaurant play, aren't you? >> yeah. i think we are. you know it has worked incredibly well for us. we keep investigating there. and we're getting a great return from it. >> well wouldn't be any good if the pizza didn't taste good.
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and it sure does. that is patrick doyle, great to see you as always sir. >> thanks jim. >> guys i love it when this stock comes in. i love it when analysts get cold feet. i love when they downgrade it. it's a cheap stock generating a lot of cash. pay dividends, buy back stock. domino's, i say you hope it comes in so you can -- >> buy, buy, buy. >> stay with cramer. coming up party with pollo? from taco cabana fiesta restaurant serving up serious sizzle. but can the stock keep bringing the heat or will it go cold? cramer's browsing the menu with the ceo.
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do not confuse healthy skepticism with disbelief. there is a huge difference between being skeptical, which is constructive. and simply refusing to accept facts that are staring you right in the face which can be incredibly destructive to your portfolio. consider the insanely fabulous numbers we've been seeing from so many retailers and restaurants of late. you don't get home depot posting 8% same-store sales growth or 11% figure from domino's pizza whose ceo we just heard from unless something truly special
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is going on. numbers this good frankly are just not supposed to happen. but we must accept they have and are happening. and the genre action that i hear? i keep hearing disbelief. the common refrain is that the numbers can't be this good. the consumer isn't doing that well. it has to be unsustainable. it's based on nothing. that's not skepticism though. it's merely close-mindedin credulity matched with -- i want to hear honest skepticism. okay, so as long as the price of gasoline stays low, these numbers, can't they continue? if gasoline goes back up, maybe we should be concerned. or last year the weather was so bad restaurants and retailers are up incredibly easy comparisons and maybe the numbers won't mean that much in the end. those concerns make sense. they put the situation in context. they allow you to grade the retailers against each other rather than just the overall
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hora of the country. not question the whole group. the group's too strong. think of it like this of all the retailers i've heard from it's really macy's and walmart that have disappointed. and you know what? really the latter was about an outlook involving raising wages. walmart actually had better than expected number. what does it mean to be skeptical? it means asking the right kind of questions. that's what it means. for example, we have to ask ourselves what's changed here? was this the quarter where people started returning to the mall? a year ago we thought the mall was dead. is it alive again? how many of these gains are from just cheaper gasoline? how much of the profit increases are from better employment? as domino's ceo pat doyle just told us. where did all those promotions go? remember how we kept hearing the holidays were promotional? is that done? is the willy nilly discounting finally done in this country? is the great recession really behind us? or how do we explain what visa said in its conference call that
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the consumer isn't spending as much as we think when these numbers seem to indicate the opposite. has visa's outlook changed? i want to know. i got to ask. plus, we need to rethink what was collectively -- take these terrific numbers from the hotels and theme parks, six flags, disney, priceline, how is that possible given the strong dollar and the lack of foreign travelers? how did expedia do the number? how did we get to the point where people are taking to the roads like never before? is that again thanks to the amazing decline of gasoline? or is it a mindset? is the country changing? we have to ask these questions. maybe the great recession's finally in the past. here's another important one, who's doing all the spending? we know it isn't the upscale spenders tiffany and ralph lauren told us that. but are dollar stores doing well. how do they stack up against macy's or nordstrom? we used to ask those before the recession. is bed, bath & beyond now solid because of consumer spare change? can best buy get more customers in and have a growth story to tell? how can people spend so much
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money on video games? how do they have the time to be watching so much television playing so many games? futsing around on facebook? how much is being driven by the web? is that what's getting people in the doors? that's the kind of skepticism i like. i throw all these questions out there because that's what people should be asking instead of saying i can't believe it. huh-uh. or aggregate numbers say these numbers -- or this will end in tears when the fed slams on the brakes. i heard that one a dozen times today. that kind of amateurist analysis has become common place. i'm sick of it. bottom line, i want you to be skeptical, not incredulous. the first picture, money, the second, it gets you nowhere. let's talk to dina in new jersey. >> caller: i have a question. ciee, i hear the government is mandating -- thing of the past. is korea good investment in the future?
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is it a good buy right now or shall i wait? >> well you know it's funny you mention that. i was thinking about cree today because people reported such a great number. remember the ceo told us that cree is selling well. you know what i said? let's not outthink this by home depot, don't buy cree. go to shawn in idaho. >> caller: hi jim, thank you. i would love your recommendation on hpq. i've held it over the year but i'm in retirement age now and would like your recommendation. >> i got to tell you something. i'm very lucky to work with my great friend david faberer. and he's going to be interviewing the ceo. and why would i want to opine before i hear what she answers to his very tough questions? so let's listen together maybe we can make a judgment that's more informed than what i can offer right now. remember, there's a fine line between healthy skepticism and the flat out denial of a good thing that could be making a lot
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of money, a lot of people are being kept out of this because of that fine line. follow the fundamentals, not unfounded negativity. much more "mad money" ahead including my interview with ceo of fiesta restaurant group? and are major rallies in mastercard and underarmour too good to be true? or can they keep tearing up the street? don't miss my take when we go off the charts. plus a brand new edition of the lightning round just ahead. why don't you stick with cramer. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either.
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i think about the shape. i think about color. i also think about sound. i take it into my brain and i think about... ..what would it look like to me? my tin man has a big toe the size of a house. the lion is small like a toy poodle. it has webbed, duck feet. and he is very scared of everything. my scarecrow has wooden teeth... his fingernails are really long. and his clothes have tubes on them. ♪"somewhere over the rainbow"♪ ♪"somewhere over the rainbow"♪ and that's dorothy. she looks like me.
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everyone has a favorite movie. now people with visual disabilities can find theirs. comcast is proud to introduce the first talking guide. from xfinity. restaurant stocks, what can i say they're on fire. but sometimes when a high quality restaurant stock runs up in the quarter even terrific numbers can't stop it from selling off a tad after results. considering what happened last week with cramer fave fiesta restaurant group. the fast growing pollo which serves caribbean food at 161 locations mainly florida and southeast and taco cabana with 174 locations, highly concentrated in texas.
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fiesta's been a remarkable run rallying nearly 18% since we last spoke. and pushed hard this stock when spent with the ceo in december. it's up nearly 50% since i recommended it just last july. and after that kind of move a stock can sell off even after a tremendous quarter. so it's no surprise when fiesta reported last thursday 3 cent earnings off 31 cent basis higher than expected revenues higher same store sales growth and 6.1 at taco cabana both experiencing terrific -- the stock got dinged. fell two bucks the next day. still, we know latin food is extremely popular right now and fiesta is going to be making a comeback because it's a topnotch growth story and a great buildout regional and national. which is why i like it. do not take it from me. let's get a closer look with tim taft, president and ceo of fiesta restaurant group, find out more about his company and where he's headed. tim, welcome back to the show. >> thank you, jim. >> when we spoke last i was just completely e namerred with pollo tropical and very worried
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about taco cabana. that worry was misplaced this quarter. >> it did. what you're seeing with taco cabana is coming into its own and showing strength. there's been a lot of work undertaken by the team over the last two or three years. and they're finally in a position now where they have the operations and the marketing lined up. so we expect good solid results from here on out. >> could this be a rising tide lifting all mexican boats given we saw amazing chipotle numbers and qdoba? >> i think high tides raise all boats certainly. i think gas prices as you mentioned in your last show last quarter is having a positive impact on sales in the industry by and large. but i think that solid performers are going to perform very, very well and taco's one of those. >> you tantalized us on page 22 of your excellent presentation. you've got a chart. there it is panera 3200 chipotle with 4500. this potential 58% growth for
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the first 30 -- and then we've got taco cabana and pollo tropical with na where you fill in na. is it possible we will see systemwide restaurants similar to panera and chipotle? >> first of all we put that page inside the presentation so we don't have to answer how big we think we're going to get. >> i'm on international tv. this is your chance. >> secondly, we put that chart in the document not to show how big we are but to remind ourselves how small we are and how much work we have to do. >> that is a really good point. that's why i tell people we are early on in the story. which is why i'm not freaking out about the quarter. there's another page though that speaks for itself, compelling restaurant level earnings appreciation and amortization where you are very close to chipotle. could you ever move ahead of chipotle? >> well, certainly that is not the objective. i don't think there's ever going to be another chipotle. but it doesn't mean there can't be another frgi. i mean they're in a class by themselves.
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they are a gold standard in our industry. but while we're trying to do is improve our unit level economics, every month, every quarter. and have a nice steady systemic growth curve. >> you're doing that. some of these remodelings, legacy south florida is doing incredible. the numbers you're doing per store i have to admit are amazing. can that -- i mean just extraordinary 4 million a unit i don't have anybody doing like that. what is going on at those store sns. >> i think what you have in south florida is the fact that those legacy stores we've been media efficient there the longest. we're serving second generation of customers down there. they know us they know everything about us. they love our food. and what you're seeing in the rest of the markets as these emerging markets, you're seeing us really grow. and the awareness factor of the brand and how to use, all of those things are growing. and i think in evidence of what's going on in central florida and the kind of growth that we're having eversince those restaurants and markets got to media efficient.
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>> well, tim, what would happen -- i know you've been in the business for years so maybe this is just too bold or way off, but what would happen if you put one right here in the new york region? why haven't you put one in new york or l.a. and your numbers are blowout, with no campaign, no national ad word of mouth doing numbers that shock people. wouldn't that be a gorilla way to get into some gigantic markets? >> the first thing we're looking at, jim, is we want to grow along supply chain lines. we could build one in new york and just rip the cover off. and we could build one in l.a. we have people that scream furs out there all the time. but what we want to do is have a systemic growout and have media efficiency. we can go out and build a good number of restaurants in different states, but what does that prove besides the fact one or two restaurants could perform very, very well? what we're looking at is a comprehensive growth strategy that shows and allows us to grow along supply chain lines and be very, very efficient.
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>> you really are the true peter lynch story. you know, peter lynch did not like regional stories suddenly appearing nationally. he wanted that this is one of the great mutual fund managers of all time. you subscribe to that going texas, atlanta, those are adjacent. you're not trying to blow that overnight because that can really backfire. >> it can. and that's something that you know we recognize that building through media efficiency and in texas as we mentioned the last time i was on your show that in texas and florida we can double and triple the size of our current brand just in that footprint over the next two or three or four years. so what we plan on doing is making sure we grow systemically and strategically. make sure that we evolve this brand and do everything that we can. there's a lot of work that still needs to be done. and a lot of learning that still needs to be done as well. >> well humility is exactly what is needed when you've got a $1.8 billion company that could eventually be 4, 5, $6 billion under your helm. i want to thank you so much tim
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taft president and ceo of fiesta restaurant group. great to see you, sir. >> thank you. >> this is how you do it. you do it measured growth. he said he could blow off the numbers, but that does it in one store that proves nothing. what he's doing is sustainable growth. and that's what i like in a restaurant chain. "mad money" back after the break.
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it is time. it's time for the lightning round. what is that about? and then lightning round's over. are you ready? time for the lightning round. start with kurt in idaho. >> caller: mr. cramer with a big boise state. >> my third boise caller. how can i help? >> caller: what are your thoughts on boulder brand. >> when we speak of organic we speak of white waive and sles shl and whole foods. those are my players. let's go to billy in arizona.
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billy. >> caller: hey, jim. first 55 and then 20 -- should i buy, hold or sell? >> which one? informatica. that's a good company. it's a very good company. i don't want you to sell. oracle should buy them they'll get mad at me but i think they should buy them. let's go to fred in florida. fred. >> caller: jim, my question is about ge. the stock is the same place it was october of '13. >> well yeah but the phillies are the same place they were october -- i still like them. it's got a 3% yield. it's you know waiting for the next season. and when the next season starts it's going to be a good season. let's go to matthew in illinois.
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matthew. >> caller: hi jim, boo ya. >> boo ya. >> caller: calling about true car. >> what the heck with truecar. this stock is horrendous. i was told maybe it's a good one. i got to tell you we are going to find out the truth about true car. i need to go to michael in kentucky. please michael. >> caller: jim from bowling green, kentucky. calling about aqua america. hold or sell? >> it's not my favorite. i like letter d when i'm going util. that's right, dominion. and that concludes the end of the lightning round. >> the lightning round is sponsored by t.d. ameritrade.
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here's some advice as we hit higher and higher territory. don't be afraid of stocks that are flirting with new all-time highs. especially not in the market where the averages keep making ones themselves. aufb a high quality stock that's had a terrific run will just keep on running. as long as the fundamentals keep improving. didn't say flat line but improving. tonight we're going off the charts take a closer look at mastercard and underarmour, two stocks within striking distance of all-time highs that i think could go higher. we're doing it with the help of tim collins. my colleague at real money.com where he blogs all the time like me. why does collins like mastercard? why does he like under armour? look at mastercard's weekly
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chart. this is a picture, it's not absolutely perfect but mastercard the kind of lower left to upper right range that shows it's among the best in the show. with only a single sizable pullback over the last couple of years. rather remarkable. for mastercard collins says the whole of 2014 the whole year was basically year of consolidation where the stock traded sideways in the aftermath of gigantic gains from 2011 to 2013. think of it like this, mastercard had been sprinting higher for years, and in 2014 it needed to take a much-deserved break. it was resting. that's often what happens with great stocks. now, collins thinks this long period of consolidation is bullish as it basically serves as a launching pad for propel propelling the stock higher. mastercard roared up more than ten bucks in just a few weeks. then at the beginning of 2015 mastercard started making what collins calls a bullish flag formation where the stock trades a bit lower and in tight range
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after a rapid move higher with the pattern sort of looking like a flag pole. but during this period there were a lot of bears joining the fray. stephanie lincoln and i were working together and we said oh my someone must know something. they didn't. this flag formation is what's known as a continuation pattern, meaning it's a sort of a pause. again, that refreshes between two terrific rallies. and just last week ma broke out above this flag. which considers extremely bullish development. mastercard which currently trades at $91 could easily make its way to $100 or even $105. meanwhile, there's also the moving average convergence-to- convergence-to-vergence line predicts not coincidence but changes in stock's trajectory. just made a bullish crossover. this is really important. i know it seems teeny to you, but this is a bullish crossover. and it's really important. that's where the black line goes above the red line. and that's a pretty consistent predictor of still higher stock prices.
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collins also likes what he sees from the slowest -- an oscillator that measures whether stock is overbought or oversold. right now mastercard is going to overbought territory. which is often a warning sign that a pullback could be imminent. however, when you look at mastercard's incredible run in 2012 to 2013 back in time a little bit overbought levels for practically the entire time. so never fear. in other words collins sees all the ingredients here for another repeat fabulous rally that we had brought mastercard into the analysts as one of the great stocks of the era. how about shorter term action? let's look at the daily chart. mastercard did seem it was very much down in the dumps. i mean people -- like i told you, people were very concerned. it was trading right at the low end of its range. but at the end of january bingo the company reported strong quarter. took a lot of people by surprise. since then the stock's been on fire over the course of this past month. collins points out mastercard rallied from the floor of its range to the ceiling and broke
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out above the ceiling at 8950 last friday. according to collins the previous resistance levels ceilings at 88 and 89.50 represent a floor. and a nice floor for mastercard. he sees the stock headed higher here too. especially since both the mack d, the top, and relative strength index both in bullish territory. in fact, collins believes mastercard will become a triple-digit stock in the very near future. though he says all bets are off if it falls below 86.50. what can i say owns it and mastercard and its vicious kpetd tor visa are two of the best-run companies in america and i think both are headed much higher as the world continues to morph from paper to plastic. and china tantalizes down the road. next up collins also likes very much what he sees in the action in long-time cramer favorite under armour. check out the daily chart of this terrific athletic apparel maker i regard as a stealth technology company and call it that and get rich carefully when the stock was about half of where it is now.
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you can see here that from late october through january, all right, late october through january, under armour had been trading in the sideways range, basic range between 64 and 73. but just like mastercard after a fantastic quarter recorded in late january, under armour roared higher running the whole gauntlet from the bottom of its range to the top in a few weeks and managed to break out of that earlier this month. that's a fantastic breakout. for the next two weeks consolidated gains basically trading sideways. but then last friday once again broke out to the upside trading up to $75 and change as of today. collins thinks under armour is headed higher. floor supports 74 another floor 73. so how high can it go? for that we got to zoom out to under armour's weekly chart, which collins says is just gorgeous. okay. it's a little you know kind of -- i'd say it's a little post realist for me. but that's okay. it's good looking. just like mastercard under
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armour's mack d indicator and then go down here made a bullish crossover and moved into overboughts territory. but again, some of under armour's strongest rallies happened when it was overbought. you have to match the overbought with what it's done in the past when it's rallied and find a like for like. given the stock just broke out above recent trading range, collins thinks we're in the early stages of a move that could take under armour all the way up to $92.50. he wouldn't be surprised if it shoots past 100. my take. at last someone understands the power of under armour even if it's a technician. i mean finally someone realizes the small capitalization does not match the opportunity kevin plank has traced out for the multiple years ahead of us. here's the bottom line and big lesson. just because the stock has run, doesn't mean you've missed the move. they were interpreted by tim collins indicate these could have a lot more room to run and i have to agree with him. they can go a lot higher before they reflect the full promise
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>> male narrator: tonight on restaurant startup two businesses on the brink of failure fight for a shot at a new beginning--a vegas duo who are betting it all... >> our salaries combined last year were $28,000. >> what happens if you don't get an investment? you might close? >> both: there's a chance. >> narrator: and a family clinging to their california dream. >> our lease is up in two months, and if we don't find an investor, there will be no more hiatus urban barbeque. >> narrator: with hundreds of thousands of dollars on the line, will one of them earn an investment from joe or tim? joe bastianich owns a portfolio of 30 restaurants along with eataly, a high-end italian market. tim love is a celebrity chef with six award-winning restaurants and a retail empire.
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