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tv   Mad Money  CNBC  June 19, 2015 6:00pm-7:01pm EDT

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affected. to me that's the way to play if you want to play a break-up. >> time for the final call. last word from the options pit, carter. >> energy. be careful. watch out. >> mike. >> use put spreads. >> dan. >> twitter risk reversals instead of long stock. >> that was quick. i'm sarah ivan. >> there's always a bull market somewhere and i promise to help you find it. mad murn starts now. . i'm cramer! welcome to mad money. welcome to cramerica. i'm just trying to save you money. my job is not just to entertain but to teach and coach you. so call me or tweet me me @jimcramer. the financial hostage crisis will soon end. that's the good news out of europe. some actual deadlines where the
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greek drama can draw to a close. the bad news is that on days like today where the dow tumbled 100 points the s&p lost .54% and the nasdaq declined .31% it feels like that drama will wednesday a bang not a whimper. that brings me to next week's game plan. i've been proselytizing caution all day in part because of the greek situation is a bit of a lose-lose proposition for us at least in the near term. hear me out. first, i don't think we'll see anything important happen this weekend as the leaders of 19 european countries get together monday to bicker about what to do about greece. at the same time many are worried about a monday-morning run on greek banks that will necessitate immediate action by somebody. you can only imagine the window of events -- bank run first, possible resolution after -- will produce the down beat s&p futures trade that him miblgs whatever weakness europe's forces are experiencing in our country. you have to expect the dollar could be stronger against the euro and the main reason our
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market has been so buoyant is that the super freaking strong dollar has been cooling down. the combination of a weak euro and skittish forces over there could translate mindlessly through stock futures into a big down opening here. i wanted you to be prepared for that. let's say the council of nation offers greek something they could live with, not that i know what that would be and we get a deal. i wonder if we mont immediately hear from the various fed heads that with greece settled the fed will soon raise rates. [ boos ] i almost expect that to happen and i'm sure these gas bags will be more than willing to comply with that kind of chatter. if we get no deal and the dollar continues to rally and we have to expect our companies earns will suffer. don't forget it's not like we had good earnings this week from our domestically based international companies, both fedex and oracle disappointed. i found a worrisome harbinger
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since earnings season begins in just a few weeks. our market season could sell off so why not wait? the worse that happens is you miss a small rally on top of the gigantic one that brought nasdaq to all time highs yesterday. what else? we have a few key earnings reports that will produce rather electric trading. let's start with sonic! the cramer favorite restaurant change. we spoke to sonic at the back in the beginning of may when it fell 29 bucks. the stock advanced $33. i thought it was oversold. i expect sonic to report a solid quarter monday and this might be the kind of domestic stock maybe you buy some if it's pulled down by futures after the greek bebecome kuala lumpur. i look these guys who have been buying stock back hand over fist since the last quarter. on tuesday morning we get durable goods and i need you to keep in mind that weakness in these big capital goods stories is one of the reasons the fed has been able to hold off on raising rates.
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so if we get a strong durable goods number and a greek deal that day, we'll spend the whole day in fed purgatory with pundits galore wondering why the fed hasn't tightened instantly which means tuesday could be a bit of a bummer. tuesday brings two companies i'm expecting news from carnival and darden. i spoke to carnival's ceo and i was impressed with him and the comeback story he's generatedment it's another place to go if you can put the greek sideshow into proper perspective. same goes for darden given that the restaurant stocks are getting respect as demonstrated by the red hot ipo fogo dechao. i think they've turned the corner and the story is getting legs now that it said this crab legs, name the serial disappointor that was red lobster and concentrate on olive garden along with a supportment of smaller chains. plus darden has a good 3% yield. if you like the numbers from kay
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bee home today and obviously many did because the stock rallied 9% then you should love it when lennar reports wednesday morning. kb told a story of tons of first time homeowners. i bet lennar can tell a similarly rosy story. thursday is all over the map. first we get results fromming a censure, the big consulting company that's done so well for so long that it's spoiling us. beprepared to be spoiled again asing a censure has become surprisers. you'll most likely hear about strong european business which has become accenture's hallmark after being a down day. thursday evening a split decision. if irs there's nike which has been terrific of late and i worry about a potential chinese slow down owing to a dip in conspicuous consumption. i think nike is too powerful a story to bet against. nevertheless i don't like it that it hit an all time high
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today and it has a negative exposure to the super freaking strong dollar. if you don't own it i would hold off unless it comes down maybe earlier in the week. then there's micron simple moo, a stock i haven't liked. and frankly it's turned into a poor performer, down 30% for the year. that makes me interested in it. as week as micron sales might be because some of them are connected to perm computers, remember p.c.s? i get the stock could bounce no matter what. in that sense micron feels washed out just like the airlines where i told you the other day the high-speed decline has run its course and stocks have become too cheap to ignore? micron is no slam dunk but know longer think it's a pariah especially when you think of my favorites favorites. when i see cuervo i think about that. then we hear about how finish line is doing. the last time the company is reported it gave you good
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numbers on the heels of nike. i think it will be hard to keep finish line down this time and i expect a decent quarter although i prefer underarmor nike and skechers. the big movers seem to unfold. anthem united health will scoop us cigna or humana. aetna may want to play too. the action in the too old stocks has become revealing. last night we revealed jana a very aggressive hedge fund has taken a position in conagra, demanding changes and the stock has fallen 10% on that news. pinnacle foods shot up on 9% on the belief it could acquire a private label division that conagra might be able to part with. this group is ripe to take over target which is is part of the anything goes merger attitude so prevalent these days. here's the bottom line. with today's decline our markets are reflecting that we're in somewhat rougher waters directly tied to the greek denouement.
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i say we don't buy any dips until we know for sure we're getting some sort of resolution simply because we're still hostage to our european cousins. and remember even a good resolution could be turned against us given the feds' wariness about raising rates until after the greek situation is in the rear-view mirror. jeff in michigan. jeff? >> hey, jim. a big utica, michigan booyah to ya. thank you for the investing knowledge you give us home gamers. >> that's what it's about. that's why i come out here every day to play on the morning show. a little more news and analysis. this one is more knowledge. go ahead. >> gramp and i have been watching since episode one and we're just finishing a round of golf now. he'll be 91 this year. >> holy cow, that's better than tiger. >> you're keeping him going, jim, thank you. >> okay all right. >> my question is on rockwell medical. i called it a winner and it had just gotten approved on its drug. do you think it's ready for another break. >> >> i like the device group so
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much. my favorite though i have to default to is st. jude med and edwards life science. yours is a good one. see you rockwell med and raise your edwards life science. can i go to david in texas? david? >> hi, jim, i'm a big fan of your show. >> thank you. >> what is your opinion of smith & wesson long term and do you think they have a chance of winning the u.s. army contract? >> they do. i know -- smith & wesson is good. i've never been as big a fan of this one as i have been of orbital, remember that old atk? but i think smith & wesson is good. you should be looking at -- we have the winchester division it won't be sold but the winchester division is doing quite well and olin has that stuff from dow chemical, that might be a better buy but it's derivative of the true gun position you might be advocating because smith &
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wesson had a good quarter. it's time to get a tad cautious. until we get a resolution i can't recommend buying every single stock on a dip here but we'll get through anyhow come together. tracking the action in fit bit following its wildly successful ipo. is it about to compete with the apple watch? or it is a flash in the pan. don't miss my take. then it's hot, cold communist, capitalist and it's putting a number of stocks on a wild roller coaster. i have moves in china, plus it makes everything from car seat commercial air conditioning systems and it's spinning off a huge business i suggested in get rich carefully. then johnson controls puts you in the driver's seat. i've got the ceo, stick with cramer. >> send jim an e-mail to mad
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yesterday we witnessed one of the hottest ipos of the year as fitbit, the number one maker of connected wristbands to track your health and fitness priced at 20 bucks then surjted 50% at the get go with the stock rallying another $2.82 to $32.50 today. even after this monster move i think that fitbit is still worth buying. the reason? okay fitbit is the leading maker of connected activity trackers with roughly 85% market share in the united states. their products range from a $60 entry level wristband for tracking your steps distance travels to calories burned to a full on smart witch all of which work with fitbits ecosystem including mobile apps and an online dashboard helping you analyze your fitness while giving you tools like virtual coaching. people need that.
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so why am i such a fitbit fan? one word -- growth. fitbit has been growing its sales in earnings. unlike many ipos, it's profitable at an astronomical pace. the company posted 17 5% revenue growth selling 10.9 million devices, a 144% increase year over year and growing its user base by 158% and guess what? the first quarter of 2015 these numbers accelerated in part because of the introduction of the fitbit charge and the incredibly cool -- take it from me -- fitbit surge, the new smart watch that can link products that sync with your phone, give you caller i.d., wake you up with alarms higher end surge will control your phone's music, monitor your pulse, give you gps data along with the fitness tracking stuff you would expect from fitbit. it's a fitbit uber ecosystem, not just a device. and that's how in the first quarter the company delivered
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209% revenue growth, 50.2% gross margin margin, 9% basis points and a monster, yes, this is true 441% increase in earnings. these are staggering. but we know from my interview with fitbit ceo james park from "squawk on the street" yesterday morning that the company has been investing in r&d. surprises coming up more new products still to come. take a look. >> we're doing a lot on the r&d side so hopefully people always continue to be excited about what we do. >> plus even before the ipo, fitbit had a clean balance sheet with $159 million in debt already outweighed by $237 million in cash. now they have another $420 million and fitbit has made it clear what they're going to spend that money on. they talk about r&d expansion and possible acquisitions of complementary businesses products services technologies or other assets. this is a company with financial flexibility that's looking if any and every way to continue growing its business for you. and best of all fitbit is about
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growth that's profitable. the company has been cash flow positive since 2013 when earnings positive last year and they generated 131.7$131.7 mltdillion of net income. it's cash machine. obviously we like it when companies can turn a profit. that's the point of being in business. from the perspective of the newly minted ipo, there's a whole other reason why this is important, the fact that fitbit is profitable means we can value its shares versus other publicly traded companies that are also profitable based on a price-to-earnings multiple arithmetic. rather than having to rely on valuation metrics on price to sales, cash flow analysis uniques, eyeballs which brings me to the main reason why i seem confident about fitbit. after today's run, this is one of the cheapest high-growth stocks i've ever seen. like i told you last night, if we assume very conservative numbers, these will just be like so off the wall negative and low, say 50% earnings growth for 2015, 30% for 2016, that will
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make fitbit -- that means fitbit will make $257 million net income next year. divide that by 206 million shares outstanding and you get $1.25 per share in earnings power for 2016. remember, that's assuming fitbit can only grow at 50% clip this year and 30% next year. these numbers represent a massive and practically unrealistic deceleration if i'm trying to be a negative nancy, from 209% plus sales growth in the first quarter of 2015 not to mention its insane 441% earnings growth. so when we talk about assuming 50% growth for this year, that's a beyond prudent projection. the low ball forecast assumes fitbit's margins will stay flat even though we just soldaw the company's profits rocket. so i bit fitbit's numbers will be higher especially since the sales and earnings growth were accelerating not decelerating. but for the sake of being conservative and risk-averse because when i wasn't the numbers sound so big you would laugh at me let's assume fitbit can earn $1.25.
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give than the overall wearables market is supposed to grow at 123% clip in 2013 it wouldn't shock me if fitbit can exceed that earnings target if 2015 but we want to be cautious. so with $1.25 in earnings for 2016, that means fitbit is trading at 26.4 times next year's earnings estimate even after its epic rally. that's just too cheap. consider that gopro and other sports and exercise technology company trades at nearly 30 times next year's estimate bus gopro's growth palses in comparison. fitbit has sales growth in excess 20600%. it trades at a 12% discount. that's insane. how about underarmor rapidly growing athletic apparel retailer getting its own wearable technology business. underarmor trades at 58 times next year's earnings estimate. 122% premium to fitbit even though fitbit is growing faster
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than under armor. if we give it the same low balled earnings estimate fitbit would be a $73 not a $32 stock. i'm not saying fitbit's stock won't double but i will say you can't call it expensive until it's as expensive as under armor. while fitbit has repeatedly said it doesn't want to put itself up for sale there are potential suitors who would love to acquire fitbit. just look at this crafty exchange between ceo james bark and my buddy pal, friend scott wapner also hosting with me squawk on the street yesterday. >> apple ever call you about doing a deal? >> can't really comment on that. >> anybody ever call you about doing a zmeel have you ever thought about selling the company? >> look, we're building a long-term company. it's been over eight years. i'm really excited. >> statesman. what about the to ten, worries like the idea that the apple watch is going to -- look at
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this. i mean, it's going to eat into fitbit's market share? admittedly, all of fitbit's financials are from being before the apple watch hit the market. so this newfound competition could absolutely affect their growth trajectory. but i have to say, i don't think apple and fitbit are vying for the same customers. the entire fitbit product line sells for anywhere from $60 to $250. the cheapest apple watch costs more than $350. as much as i love my apple watch, the fitbit is more comfortable to wear when you're exercising and the apple watch only works if you have an iphone. there's room for many players and these worries are baked into fitbit's share price and then some. here's the bottom line while fitbit has rocketed higher after becoming public this is a real company with real earnings so we can figure out what it should be worth. even after making some incredibly conservative assumptions, fitbit's stock is a terrific bargain here. as i said all day yesterday when it was only at $29.30 sure
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there are risks but at these levels they are far outweighed by the rewards. you know what? there's much more "mad money" ahead, including my take on how china could make or break your portfolio. don't miss my guide to mastering the world's second largest economy. then johnson controls is spinning off a massive auto business. can this stock steer your portfolio in the right direction? i have the see yoechlt. plus my excluesive from the man who went from the mail room to the top position at espn. stick with cramer.
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what's the deal with china? what's really going on over there? this morning, we learned the jarring news from hershey that chocolate sales are down because, and i quote "macroeconomic challenges and trends are affecting consumer shopping behavior resulting in continued softness within the china modern trade." [ buzzer sounding ] geez, people in china are cutting back on chocolate to make ends meet? questionable. making matters worse, hershey just shelled out $394 million for an 80% interest in shanghai golden monkey food back in september of last year. in today's release, hershey said it was moderating its full year net sales expectation for shanghai golden monkey food the acquisition, because of the chinese slowdown. i'm calling that a
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disappointment. this news comes on top of a piece of research that was very informative from wells fargo saying that banally is coming in at a 4 year low with june numbers down as much as 20% which were really weak. that spells more trouble for mgm, wynn and sands. we know the liquor company that its best liquor brands haven't been selling well in china. remember that piece last night? we also know sales of expensive clothes and accessories like watches way down. quite a change from the old days. so what the heck is happening in the people's republic? first, the communist party is cutting back on conspicuous consumption. the gambling junkets to macau are a thing of the past. you don't get that dropoff unless it's mandated. expendive jewelry, liquor chocolates? that could be the crackdown on government corruption. say you want to bribe a government fish, it's easier and less conspicuous to give them a
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case of johnny walker blue an expensive watch rather than a duffel bag full of cash. again, this all seems government-led to me not consumer oriented. now, it's true the chinese stock market got hammered with the shanghai composite index experiencing its biggest decline since 2008 but hershey flagged these sales since april and may when it was still soaring same with the other slowdowns. in the end, i think that the chinese communist party's anti-corruption and anti-conspicuous consumption reforms are really starting to take hold. they're rocking the economy, that's the problem. for the first time in decades, they've stopped acting like capitalists and started embracing communism. that's what's really going on. which leads me to a couple of other question marks. did ali ba -- alibaba see this coming? it was followed by a charm offensive in management in this country to drum up more business
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not there but here. the spending spread to other parts of the economy that the u.s. sells into? apple is still doing incredit by well we're told. starbucks told us business is indeed accelerating in china. yum brands, which had been battered because of issues at its kfc in china have seen a return chinese auto sales are hot and then not. confusing set of data but the last few numbers have been soft. plus we're getting conflicting numbers about chinese trade. many of the big commodity companies have seen slowing orders in china. that's been going on for several years but the freight index jumped about 40%. that's a terrific measure of trade information into china. and nordic american tankers, not an oil tanker company that's heavily dependent on growth has been hot as a rocket rallied more than 40%. here's the bottom line -- china has become the biggest conundrum i follow in the world. it's impossible to figure out. here's my take. the people's republic is a
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developing fluid story. in many ways, the next leg of growth or lack thereof worldwide will have to come from a turn in the chinese economy. after this week's down beat news, i have to tell you, i'm nervous about a turn. you have to stay tuned. but when chocolate sales turn down, i say you can't afford to be too bullish about this former juggernaut of an economy. susan in california. susan? >> jim, we love you and we got lots of fans for you out here listening into this. we want to see what you think about mastercard's move into china? >> that's a ten-year story in china. we trimmed -- we have a huge gain in mastercard for travel trust. we've been waiting and waiting and jack moore, the research director and i decided we were going to trim a little sometimes there's -- bulls make money, bears makes money, hogs get slaughtered. california, jakethon how are you. >> booyah how are you?
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>> doing well how are you? >> doing great. i love the show i think you're awesome. thank you for your help. >> thank you very much. >> i have a question about ebay. i want to buy some shares but i'm not sure whether i should buy them at a small dip or now. and i want to know how the paypal spinoff -- >> i like paypal so that's why i want you to buy ebay in a greek-related weakness on monday or tuesday. maybe wait for tuesday but i think ebay is a byeuy, buy, buy yes. that's because of all the work we did on pal, pal, pal. alan in new york. alan? >> hey jim, booyah from the booyah a. >> why not? >> how you doing? i'm calling basically about chinese stocks specifically j.d. and possibly even more importantly alibaba. >> we're staying away. we're staying away from the chinese market it went into bear market mode this week, it got too hot, j.d. is included. we're not going there.
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alibaba, if you want to do it buy it through yahoo which is worth like nothing and that's not the way it should be. okay, china, i have to tell you, right now it's tough to figure out. a developing and fluid story. we'll have stay tune bud i don't like the action. much more "mad money ahead" including my exclusive with johnson controls. i have the ceo. it wasn't long ago that espn was a scrappy underdog fighting to get viewers. i'll talk to the former mail room worker who helped to become one of the biggest names in media. success story abounds. plus why don't we end this week with a super freaking friday edition of the lightning round and look back always comical at the week that was. stick with cramer.
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you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.
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johnson controls, the powerhouse conglomerate that makes everything from automobile seating and interiors, batteries for all sorts of applications from car, trucks heating ventilation and air conditioning is making a move to bring out value. they announced they plan to split off their highly
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successful automobile seating business either through a spinoff or sale or maybe a sale of parts. this is an initiative i've been advocating for ages wrote about it in "get rich carefully" because auto parts don't necessarily blng under the same roof and there's some real value being left on the table. let's see what happens. it looks like johnson controls agrees with me. the benefits could be enormous. the seating business is number one everywhere in the world and deserves to be its own company so they can raise enough capital to maintain its market leading position, which i know it will. after a spinoff or sale johnson control cans use this that money to make acquisition to boost its battery or climate control missions. i think this is an extraordinarily transformational move that could get this stock really moving so let's talk take a closer look at it with alex molinaroli, the chairman and ceo of johnson controls and find out more about this proposed breakup. welcome to "mad money," good to
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see you. the stock is where it was when the deal was announced but the breakup value is substantial. just give the -- give people a sense of how coveted your seating business is. >> well you just did a great job of introducing the company. we are the leading seating company in the world. but what's most importantly is that as you look what's happening, we've been throughout sourcing wave the real opportunity is in china and our position in china is something tobacco vetted. >> why now? is it possible you think at 17.5 million units in this country or where china is it might be the peak or there room for room too? >> there's room. but this is really about johnson control. this is about the seating business strategically, being able to win. we've looked at our business, can we keep the parts together and be a multiindustrial and as you look at what we're doing
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with our business where we want to go with the remaining johnson controls, what the seating business needs in order to be successful, it makes sense. now everyone's talking about it. what can your battery business do? what will that business like. >> i'm glad you asked. i get frustrated. >> battery is you! >> batteries are us. we're in starter batteries, start/stop batteries and micro hybrid batteries. but people look at it as an auto parts story not as a real energy storage play. >> because, like when i look at solar city and test l.a. all anyone talks about is is they have these brilliant batteries and it will change the world. if there was a company that would get more money and do more with batteries it would be johnson control, not them. >> well, i'm sure they'll do great. >> you do, don't you?
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you think they're good don't you? >> i think they have great technology. what i really believe is that the market isn't ready for what they're doing today. the market will change but the combustion engine hasn't given up, it's decided to compete with the electric vehicle so you'll see hybridization, see power trains but it will require more batteries, more energy storage applications. not just electric cars and full hybrids. >> do you see that business accelerating in growth after years of that? >> absolutely. not only will it accelerate but broaden. it gives us the opportunity with new platforms and think of our business more broadly than in the path. >> i think that won't be seen until seating is gone. >> well people look at us because we own the viz and they don't know how to value it. >> it's like a secret sauce, it could be worth so much more. now how about the -- how is
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residential and non-residential doing because i know that there's -- those are real growth areas in america. that looks like it might turn overseas. >> i think the residential market has started to come back. but we're underweighted in that business so we're slower than our competitors but the commercial market, the institutional market is coming back. we're seeing orders coming in. for us that's our main stay. >> you have government, hospitals. but are there skyscrapers coming back and can you get that business? >> absolutely. we have product gaps and channel gaps. you probably noticed that we're disposing of our gws business our workplace solutions business. >> saw that. >> to the largest property owner manager in the world, cbre. we have a strategic relationship with them. we're finding new ways to get to the market. we're acquiring company called adti. >> that's doing very zblel we've
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integrated that company then hitachi, a new technology coming from asia that will be important for hvac market. >> i know when you were on "squawk" they asked you about whether this was prompted by an activist. i know that i felt that you guys would do it when you thought it was right even last quarter, though, i didn't think you thought it was right. what's changed? >> well the timing was driven by our strategic planning process. we start talking about capital allocation and we got to a decision point that we said are we willing to make the investment that's required that the organization needed wanted in order to grow? we've moved capital away from our seating business and i think appropriate for our business not necessarily appropriate for the seating business. >> i felt that when i saw it i thought this could be a little -- this -- i think the stock could go to $60, $65.
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i'm just saying that because this is something in my breakup value in "get rich carefully." i was a little astonished that it came back. but, i mean maybe this is just again because people don't real ties fire power that the company has because it is rooted in all together. >> i do think that's it. a year and a half ago is when i took over with the company and i can remember i had a meeting with all of our sale side and buy side analysts and they said what do you want? i said two years from now i want to make sure you're not all auto analysts. part of the challenge is that people see us through that lens. the people that follow us. the people that understand us. >> yes! >> they understand us from that perspective. >> you're right. >> so i have to tell my story. >> and i think both stories should end up being fantastic. that's alex molinaroli, the chairman and ceo of johnson controls. this stock is down where fa where they announced this opening and valuation creation. that's a fantastic opportunity for as early as monday morning.
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round. are you ready? time for the lightning round. let's stewart lazaro in florida. lazaro. >> hey, how are you doing? >> couldn't be better how about you? >> good good, this is lazaro from coral gable, florida. is it unreasonable to think ifrdi can replicate or exceed what chipotle mexican grill has accomplished in the last six years? >> unrealistic because fiesta group missed in a way that chipotle has not missed. that said let's take it on its own bottom. i'm a buyer of fiesta. they came on the show and explained what went wrong. i need to go to steve in california. steve? . jim this is steve in palmdale california. >> palmdale, man, i lived on route 5! interstate 5! that's fabulous. what's up? >> pretty warm here today. i called to find out about what
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stock symbol ktls, i purchased it about six weeks ago in aplay in technology and defense. they've risen 16% in that six weeks and on june 15 they received a new $30 million contract from the government. is what do you think should i hold? >> i like defense contracting, i like missiles. i mean i like phlegm a money point of view and i'm going to recommend that stock. in that, ladies and gentlemen, that's the conclusion of the lightning round. >> oh hey, you want twtr? is it a gang side? he says it could be a gang sign. here it goes. you ready? google class a plus twitter my us in everyone at twitter equals
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700. ♪ hey, macarena ♪ >> stick with cramer. >> how are you. >> couldn't be better thank you. >> really, now? >> yup. that's because of the new jamieson's gold i have that in my office. if you didn't know any better, you might have thought diageo's only customers were those who sipped cheap scotch on my dirty lynn linoleum floor. i have a degree in guinness pouring that i got when i was in dublin which is cool. >> how many times a day? >> well you have to keep your breath fresh. five or six times. >> which side do you want to be on? maybe the captain's? >> i'll have to come over and borrow some. >> better than listerine, works
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much better. my two favorite brands, corona and modell low. i'm not pouring tonight but last night it was flowing pretty. well, we had a good night. here at td ameritrade, they love innovating. and apparently, they also love stickers. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this. ♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door so print all you want and never run out. plans start at $2.99 a month. right now,
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if you only read one business book this year that's not written by me i want you to read a business sports book.
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i want you to just -- you pick up a copy of "every town is a sports town" by george bodenheimer who went from working in the mail room at espn in 1918 to becoming the cable sports networks longest serving president from 1998 through 2011. then it's executive chairman, a position he stepped down from in 2014. it's hard to overstate how much espn belongs to cramer faith. it change how old we watch sports. one example that was incredibly difficult to watch college sports before espn came along. now you can watch ncaa games and filling out march madness brackets has become a national past time. by the way, pro don't get me started on fantasy football. the book takes you through the rise of espn from a scrappy underdog at a time when cable was treated as a joke into a world liedeader of sports. this is why i think you should buy it for your dad or brother. he's donating the royalties from
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"every town is a sports town" to the v foundation for cancer research. earlier this week i got a chance to catch up with george. take a look. george, you're a great success story. you started in the mail room of what may be the greatest cable or maybe just kbrodbroadcast everywhere. how did you work your way up? >> i was fortunate to be with a great company that promoted from within and literally never stopped growing. in fact, it still is growing. after all these years nearly 35 years later so got with a good company, had a lot of mentors and grew with the company is the answer. >> it could have been "sports illustrated." when you and i were growing up -- how did you know it would be espn? >> well we didn't at the early days. i mean we were happy to be there. most of us were 24 years old, happy to be employed working in sports and nobody could tell you we knew what it was going to grow into trying to fulfill bill
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rasz rasmussen's dream far 24 hour sports network. >> now espn has become so powerful that they determine the weekends that teams play they determine the schedule. has espn gone from being a humble company to the most important force in sports? >> i don't know if it's the most important force in sports. it's grown and we have contracts with many conferences and pro leagues as you know. and -- i'm no longer there. i keep saying "we" but i left the company last may. but it has a big reach and influences is sports conversation in the united states. states. >> espn, when i see what you did, what was your best thing you did and what was the worst move you made? >> i think the best thing we did was actually launch the notion of 24-hour sports. that's how i got the title "every town is a sports town" when i was running around texas, arkansas, oklahoma louisiana,
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mississippi, trying to sell espn to mom and pop cable operators saying "we have a 24-hour sports network, we'd like you to put it on your 12 channel cable system." and i got the same answer "george, 24 hour sports sounds like a crazy idea. why would anybody need that? we'll put it on if you're giving it away" which we were at the time "because this is a sports town." and i quickly learned that every town in america yo you are hometown of philadelphia is a great example. it doesn't matter where you are every town in this country a sports town. >> how many do do you need? >> the number hasn't been answered yet. >> you think this is saturation level? you're not there, you can say it. >> i don't think so. we've never overestimated the demand for sports in this country. people love sports. >> do you think fantasy is at a whole new level for espn? >> fantasy is continuing to grow. i think espn has helped fuel that, made a recent investment of course, and it's been great for sports because people -- it increases their interest in
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sports. >> how independent is espn? i thought that there was a kind of a break with the commissioner in the nfl over the domestic violence. i mean it was almost like when cronkite broke with the president about vietnam. is it that powerful? >> it shows you that espn functions as a journalistic entity and our producers and sports center producer and anchors are reporting news as they see it. as the management of espn at the time, you know, obviously they're free to do that as long as they do it responsibly and not take it personally. that's their job. that's what they need to do to serve fans. espn is focused on its mission to serve sports fans and the day that espn starts softening the news because this person or that person isn't going to like what's being said, the fans will see through that. >> but you have a mission, too. -- you're donating your proceeds for your book for "every town is a sports town" to a found changes that a loot of us who have watched 30 for 30 can never
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get over. >> thank you one of the greatest knights of espn ever was march, 1993, the first evers s sspies. jimmy mall van know barely made it to new york and for the 1210-12 minutes it was out of this world. we formed the v foundation for cancer research and since that night we've raised $150 million for cancer research. i'm very involved in the foundation. i head a fund-raising campaign so, yes, all of my proceeds from the sale of this book are donated to the v.a. >> are you surprised there's a backlash to caitlyn jenner getting the award? >> no. i think people are entitled to their opinions and obviously caitlyn is a big story in the united states so i'm not surprised. i'm proud of the company and the company has a long legacy of great things dealing with the
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arthur ashe award. >> that's george bodenheimer, the former president of espn and the author of the new book "every town is a sports town." we agree with that. "mad money" is back after the break.
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charge! so why would you invest without checking brokercheck? check your broker with brokercheck. happy father's day to someone. there's always a bull market somewhere. i'll help you find it.
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[ wind howling ] >> at the edge of nowhere, only the wind and small talk break the silence. >> all right, boys. you have fun. >> one step behind you. >> the stillness lasts only a second. >> all smiles, baby. are you ready? >> and then, it is replaced by this. >> here we go. [ air whooshing ] >> the sound of a human body moving at 120 miles an hour. these are wingsuit base jumpers at work, riding the new high of

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