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tv   Mad Money  CNBC  May 10, 2016 6:00pm-7:01pm EDT

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that's shocking. >> did they close in '76? >> the price of secondary, if they haven't already. thanks so much for watching. see you back here tomorrow at 5:00. don't go anywhere. for more fas money. my mission is simple, to make you money. >> i'm here to welcome you to the market. there's always money to be made. i'm here to help you find it. >> my job is not just to entertain you, but to educate and teach you. call me at 1-800-4cnbc. it's been an ugly earnings season.
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we've had disappoints galore in pretty much every sector. it's been almost nonstop depressing. it's hard to recall a time when the misses were sao widespread. earnings fell at abc and a strong dollar played havoc with merchandise sales. leading to a sharp decline in the stock. it didn't do the number. even the worst earning seasons have silver linings and you're seeing stocks line with silver everywhere. which is how we could rally so hard today. s th nasdaq -- we could only run like this when oil's going higher and the dollar's going lower. wot stronger oil and a weaker dollar, the rocket guys nowhere.
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classic failure to launch. or when they're going in the opposite direction we're going up in flames. this market is as stupid as uncoated free sheet paper which is even dumber than plywood. it believes when oil is up, the global economy has a pulse. more travel in india, more jobs in the u.s. why do traders reach these conclusions? the oil market is supposedly glutted, way too much supply. therefore when the oil features go up, it must take tremendous new demand to make that happen. how about the dollar when the greenback's weak, so many companies oversees are doing better versus the year before. you know what happens? >> buy buy buy. >> lox, not nova, not belly.
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but liquid oxygen. here's the great thing about the wind down of earnings season. with the retailers finally coming out with their numbers. we start to see genuine introspection or at least what passes for introspection ones with wrls. money managers look back, they think, and they buy the stocks in the big time loser earnings period we just got through. if the recent slag in the entire market. winners, because this quarter's performance cemented their positions as phenomenal companies. if you could deliver during this heinous quarter, i think you're doing something right. why don't we start with the consumer packaged goods base. even as the raw costs were down, from plants to animals to oil and gas. who stood out? you could certainly bless campbells soup, which is embracing the natural organic trend. you might not be a friend of
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pantry products. i know clorox didn't shoot the lights out, but it crushed the bottom line. the star by a mile frankly. was pepsico with 3.5% organic growth, ceo delivered a remarkable quarter in every way. because pepsico reported first, it was hard to understand how good it was until we saw the comparisons. now that we're looking back, pep was best in show. speaking of bench companies hitting new highs. they went lights out. the stock has not looked back since. best drug company j & j hands down. j & j's earnings per share grew on a strong clip. plus, pharmaceutical sales voted
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5.9% worldwide. i thought that was a typo when i first saw it, ceo was the first with the most. j & j reported first, we could only look back and wonder if those figures, all time high. i'm sure many of you are sick of me saying -- you're sick of it, i know it. you don't want to hear it, you don't want me singing the praises of steve easter brook, the man who turned mcdonald's from a mangy beat up dog to a sleek greyhound many more than a year. you don't want to hear it, as sam girard told dr. richard kimball in that scene in the fugitive, i don't care. i remember when easter brook came up with that all day breakfast concept, people laughed. not me, i feasted. still do. that's how mcdonald's produces 6.2% in this quarter, not to mention lower raw costs.
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the result all time high. i'm still reeling from those facebook and amazon quarters. the stocks move so much, i recommend you wait until we pull the trigger. when facebook and amazon cost massive target boosts. we need to talk about who didn't win. any semiconductor company. facebook and amazon -- in the true earnings sense of the word, they were blowouts. the rest of blowouts that perceive jackknifed tractor-trailers. how about the industrials? >> honey well did it again. honey well, see you dave cody, neighbor. gave us the requisite beat and race. strong giant. pretty much the exact opposite of what everyone else is saying. we had a lot of solid industrial quarters. let's not forget about the endlessly consistent 3 m, with
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its total refusal to make excuses. 3 m's just a triumphant story of gigantic buy backs. a good chief executive never complains and never explains. he just delivers. >> no wonder they're just barely below the all time highs. next up, a global consulting company that i previously recommended. even i didn't expect to trounce the estimates. when you look at the constant currency numbers, hence why it's an all time high. it's good to find anything that stands out in a nonpharma health care space. this time unh gave it a terrific beat. and while execution and a strong
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product surely helped. so did dropping out of the insurance exchange under the affordable care act. >> because of some performances by their ceo's, i'm talking about federal realty. at one point during this already tumultuous year each one of them brings a shopping center, it was pronounced dead by investors. those blind things that go on those websites where it says look out below? wait a second, amazon destroyed bricks and mortar retail. not federal, not simon. didn't kafaro lose her magic touch? doesn't matter, she came on at the low, took us to a high. a train can be so halpable it doesn't matter who rides it. it's a winner opinion here's the bottom line, i know this sounds preposterous. when you get winners in a
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typical earnings season, they tend to stay winners. until we get conflicting reports, these winners are the go to stocks that stand out in an otherwise totally forgettable earnings morass. let's go to eddie in ohio. >> hello mr. kramer. this is fast eddie. >> hit me. >> caller: i own pharmaceuticals, it's dropped to the mid-30s, my average is 41. is it time to buy more? >> unclear. speculative biotech. very tough place to be. still hasn't made a come back, tough place to be. let's go to louis in texas. >> jim, this is louis. >> my question is r.r. donley. with the spin-offs comparing completion -- >> tom quinn lynn's bringing the
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company. the stock made a great comeback it's doing really well, i want you to own it. >> we are the champions, that must be a cue for me to finish this segment, i'm not done. i'm very much done. >> i expect these winners to continue to be winners, these are your go to stocks. mad money tonight, frozen in star wars. the force awakens are two of the highest grossing films of all time. it's powering more than just the movie theater box office. i'm sitting down with hasbro. i'm eyeing facebook, netflix, and google, see if these stocks can pull away. does the company have the processing power to continue heading higher after earnings? i suggest you stick with kramer.
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together, we're building a better california. the environment that's full of rotating bear markets, seems to swap sectors every few months. we want stocks to stay strong at any given moment. the high quality toy maker that's been on fire since the beginning of 2016. based on valuation, the stock barely burged. in february the company annihilated the ton around bottom estimates. why are these guys doing so well? hasbro's core brands like nerf,
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monopoly have been really strong. what's really taking them to the next level is disney. the new captain america film that just came out, or if they want star wars toys or any of the disney princess stuff, hasbro has all of these licensing agreements. we know that disney is a juggernaut when it comes to releasing blockbusters. can the stock keep running? let's check in with the ceo of hasbro. welcome to mad money, great to see you, sir. >> on your conference call, you say you have -- this was from april 18th, you have a robust line and strong retail promotional activity supporting captain america's civil war. >> we're ready. >> as movies come out, we tend to put product out 6 to 8 weeks before a movie. we know our retailers all over the world are incredibly excited about captain america.
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it has a tremendous halo on the merchandising, we'll sell captain america over the next year, we have several windows, including the home entertainment window. >> next week is going to be a big week. good for you guys. >> marvel has been an incredible title and star wars is an incredible title. the reason we have this strong partnership, we treat disney's brands like our own brands. we do great research and insights. great innovative product, make sure we're working with all of their folks. >> when i study in the company,er in of and plato, these are things i played with 55 years ago. >> nerf is a brand. our largest brand in the company it's bigger than star wars or any other brand. we did a lot of consumer insight work, really understood those consumers all over the world and
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said, how do we make a great innovative product that people are going to love. >> let's talk story telling. immersive innovation experiences. these all sound like a wave from the episodic this season's good, this one's bad a smooth long term runway for hasbro. we're beyond 1500 half hours of program we've been producing since 2010. they're all over the world, they're in emerging markets. we're on air in brazil, china. in addition to all the developed economies. we're putting our stories and characters first. people love the brands. you talked right near the end about the china opportunity both short and long term, what are the two you're thinking about there? >> we have to continue to
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develop the points with consumers. the rules are different so it takes a bit of time. we have the opportunity to gain market share and grow that business. in the longer term, as we place more of that 360 degree experience, we can build a strategy. >> froetzen seems like a win for you guys. >> disney's princess and frozen, that business is 2357b taftic, we're off to a great start we just started shipping princess and frozen this first quarter. the brand is off to a great start with us, the team has done a great job, and worked with their team on understanding the modern princess, how do you build for modern day empowerment for little girls all around the world. >> the hasbro i in was a local insular company. what i'm hearing from you is a
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national company that really understands the consumer in scores of countries. >> we have half our employees outside the u.s. our refrn news are split between u.s. and international about 50/50. we're seeing double-digit growth in all the emerging markets. it's a process of building our brands and building them around the world. >> that's brand management less than making the toys, which is an expensive job. >> we no longer manufacture any of our own product. we've gotten out of the manufacturing business. we still contract with major partners for multiple decades, we are moving production to new strategic areas in geographies. and production. >> you brought it up, you said retailing in some areas. do me, then they talk about it for seven straight questions, to me, it seems like something you had to put out there, because
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latin america has some challenges. >> we took a bit of a writedown on some bad debt opinion that's really what was related to one retailer, one market. what we're really seeing is great robust takeaway, and a growing business. >> what did you do to play-doh that makes it exciting again? >> the last three years have been the best three years in the company's brand. >> it's not possible. >> it is. it's up double-digits in the first quarter. >> it's a wonderful brand and enjoys a higher operating margin than the company averages. that's helpful as well. >> we hear about this so called death of the mall. where are people buying your stuff? >> online. omni channel retailing. it allows us to sell all kinds of products that we normally
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couldn't sell before at all kinds of price points. >> i was so thrilled when i heard you were coming on the show it's just the kind of thing people can buy for the kids and put it away. >> you see why i'm so excited about the story. stay with kramer. physical they're sitting still, they're going to get hacked, right? >> don't miss what the cfo has to say just ahead. i take prilosec otc each morning for my frequent heartburn
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as the market rammed today, money started flowing to the once beloved growth names. including facebook, amazon, netflix and google. it's the f and a in fanning that are the real standouts. facebook is still digesting what
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is one of the best quarters of the year. to prove why this has gk the ultimate gross sales of the era. the costs are going down. that's called leverage. the good leverage not the bad indebted kind. the mobil platform seems perfect i know there's been some chatter out there i find it farfetched. although i will say this. if someone was personal, i hope they would be blocked either way it's a nonstory when it comes to earnings. how about the other incredible performer. today bernstein slapped a grand price target on amazon. sending it soaring to an all
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time high. they believe amazon's buildout is so far along, as the spending declines it will have higher profits than anyone else imagines. his estimates are above the street's consensus another analyst raised levels, he will sore. a division that bob pack values at over $100 billion. a little less than a third of the company's market gap. as much as i do think the company's current buildout is far along i'm not sure they will give them back to the shareholders. just today, the company rolled out a competitive product for google's youtube.
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netflix, the fabled n in fanning is a real quandary for most of you. signups seemed to have slowed, the costs have gone higher stocks down nearly 20% for the year. has netflix been punished? i think the risk is good for this $40 billion company if the numbers stay soft, i don't know how much it matters here. google, is the one that's most intriguing to me, i know the stocks seem vulnerable on the top and bottom line. they're vulnerable too. i think there's so much low hanging fruit here, and the combination of a weaker dollar, could mean that alphabet's numbers could go higher. in the meantime, we wait for the company to deliver. it's tough to value a stock when you're dealing with a company that failed to make the
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estimates. does anyone doubt that alphabet could come back with advertising. i think both could be in store for shareholders the next time the company reports. it's amazing since i came up with the term fanning years ago, not many term firms have been able to grow faster than these companies. only google. netflix, it's very expensive. amazon, as for facebook, the estimates will turn out to be so low, the stock will end up being a lot cheaper than it looks right now. let's go to gene in indiana. >> caller: thank you for talking. >> of course. >> caller: you ready for my question? >> i was born ready. >> caller: i want to know about twitter, how come it goes up a few bennies and the next day it goes back down again? >> because twitter is earnings
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challenged. i think if you ask them why the stock doesn't go anywhere, because we haven't been able to deliver. it's a failure to deliver, that's what matters, they could learn a little from dominos. fanning still got it, i'm talking about the phenomenon that is amazon, facebook, google. you know what the workers are doing? they're uncovering avenues to crack the code on profits. is all that glitters gold? i'm going to silt down with the ceo to see if the stock can regain its luster. and dollar for dollar, i'm taking all your calls in tonight's edition of the lightning round. stick with kramer. you both have a
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sometimes the action can give you terrific clues as to what's working out there. take the cyber security space. fire eye got crushed, down 19%, in a single session. the rest of the cyber security core got hit too, with one exception. fortnete. of barely blinked. it gives its customers an end to end cyber security offer. it's not an episodic company so to speak. we know most companies got obliterated august to february. some of the cyber security stocks have come roaring back.
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when the company reported its most recent results two weeks ago, they delivered a three cents earnings base. hard to get that kind of growth. guidance for the next quarter and the full year came in well ahead of wall street's expectations. the greater the stocks run is still down 35% from last summer. fortnete is the name you want to reach for find out more about the company where ted and mr. damato welcome to mad money. >> i think sometimes what speaks loudly about a company is the partners it has. it jumps out for me, that you are amazon and microsoft -- two big clouds. they're your partners. how did you get them? >> well, cloud is coming, i mean, there are three big trends
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going on right now. things people are thinking about. perimeters are becoming borderless. with the cloud coming, everybody's shifting to the cloud providers. right now there's a lot of hybrid models. people are looking for metered models as well. you can download it and buy it from those partners as well as a variety of managed services. >> at one time there were different parts of the enterprise you had to protect. now you have the cell phone to the web, you come back, there's so many places to hack. >> that's right. it's interesting, because you're talking about iot. that was one of the vectors i mentioned, thinking from iot to the cloud, that's what fortinen's security does. we provide the services and partnerships, to go from iot to
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the cloud gardner recently said that about a quarter of the cyber breaches will originate from iot devices by 2020. >> could that also be your car? >> could be. we call them headless security devices. >> right. you are growing at roughly three times the market, how are you able to do that? >> we tripled our rate of growth. >> other guys felt that was a waste, it kept your earnings -- >> we are grabbing major share, we now have. we focused on the enterprise. we have 270,000 customers. we added 9 customers last quarter alone. >> at the same time, you decide to do a buy back. now, most growth companies don't feel they need to do that.
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was that just because things got out of control? >>. >> we saw value, we have the cash. we have close to $1.2 billion in cash. our fortinet security fabric, the reason it's so great, can i give you an analogy. he said there's all these features and functionalities out of there, he had 30 plus security vendors with different technologies, he said, what he really needs is like an organic tree. right now, somebody told him the roots, somebody sold him the trunk, the branches, the leaves. what fortinet does, we start with our basic architecture as the roots. and we go all the way up through the roots. through the trunk, through the branches. think of those as being leaves. that's the full integration.
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>> when i see you have cisco mentioned. at one points cisco would have said, we're trying to wipe out everybody in the space. they turned to a more cooperative approach? >> we're all here to protect. >> if we want to partner with whoever, and we can help our customers, we're going to do that. it makes sense to cover enterprises that have their network infrastructure. >> i thought you had a customer we can't leave out. nato. nature toe is under -- like all these government organizations, under attack in the east, the west, from the bad guys everbefore. you do that kind of threat prevention too? >> the bad guys are after information. if we can aggregate information from multiple sources. nato is one that's valuable as well as the 100 or so other providers of information we have, that we consolidate and protect many enterprises and governments around the world.
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>> when you are recruited by a government, how did they clear you? one of the things i talked about is cyborg. when someone leaves your company, how do you know they're not a bad guy. >> we vet our people, we're well vetted by enterprises. one of the things we point out is the value of independent certification. years ago, there was no one testing medicine or evaluating medicine. that's still the case with security. we tend to test out in the upper right in terms of the top in terms of security and performance. >> you mentioned banks. i still feel like i have to check my bank deposit, i check them once a week, is that
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enough? >> they're not spending, we have to presume that they're -- you mentioned one of your presentations if they're sitting still, they're going to get hacked, right? >> look, i think they all want to be thinking architecturally right now. >> it's that fabric, the interest grags, getting rid of the seams in in the network, continuously, there are so many points unite there. no one wants to buy threads any more. they want to be able to manage complexity. they want it integrated and be ready for the cloud. they want the coat that provides -- software solution services, the partnership. >> you wouldn't be with cisco and microsoft and amazon if you weren't the ideal partner. the cfo of fortinet, a stock we've liked for a very long time on mad money.
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it is time for the lightning round.
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buy buy buy buy. sell sell sell sell. >> and then the lightning round is over. are you ready? time for the lightning round. let's start with connie in new jersey. >> caller: hey, jim, how are you? >> i'm real good. >> caller: i'm a senior citizen always looking for interest rates, my stock i'm concerned with is mfa. should i buy more? >> no, these are black boxes, these are companies that trade the yield curve, asset backed securities. they are too hard for us to be able to figure out what they do. i like a federal realty or a ventas. let's go to tom in connecticut. >> boo-yah, tom. >> caller: my question is avon products. is it going to be going up? >> i don't know. i'm so rooting for the ceo who
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came on. not yet. we have to get a couple quarters under our belt here. >> hi, jim, how are you? >> i'm good. >> caller: i love your show. >> thank you. >> and i really am looking forward to hearing your opinion of the stock i bought recently, i robot. >> i think this is one of those situations, i like products that are in the home. i like whirlpool, sherwin williams on this morning, ringing the bill. i think this fits the whole profile. let's not forget, home depot is king. douglas in california, douglas? >> thank you for taking my call. >> the other day someone put something out on workday saying there's a bunch of new software. accounting standard they won't be able to make so they gets much business. as far as i'm concerned they probably have a good answer for that. i think the workday's good.
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let's go to larry in california. >> boo-yah. how are you doing? >> boo-yah. >> caller: i have a question about pg&e. >> be careful, con ed just did a big secondary, that may be attracting a lot of money. >> let's go to mark in nevada. >> caller: love your show, watch it every morning. >> oh, good. what's up? >> caller: i want to know is there any chance an investor might buy into it? it went down 275 in one day last week. >> i don't think -- activists like to be in good situations now. i'm worried about that dividend. when you look at a dividend you say, 7 1/2, 8 million, you're fine, there was a bunch of research that came out that made me question the safety of that dividend. i never reach for dividends ever. let's go to john.
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>> boo-yah, how are we? >> couldn't be better, how are you, sir? >> caller: fantastic. i've been looking at -- i saw some of it, which is bgs. >> that was a great quarter, we were so affiliated with that stock for so long. they got new management, then they do this gigantic quarter and they're not on to talk about it. bg foods come back. eddie in california? >> caller: mr. kramer, a big boo-yah from northern california. >> beautiful. >> caller: xrx. >> the quarter wasn't that good, i like the breakup of the company, i urge you to stick with it. we're down on the recommendation. i think the value is there, and there really was a one time problem, and that company will be okay. that is the conclusion of the
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i always say you need to have some gold exposure. i typically recommend owning gold directly, the etf attracts the price. if you want to old gold, it needs to be brand gold
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resources, why? it's the best run company in the industry. a proven track record of being able to mine more of the stuff. the company has three mines across african countries. none of which are what you call stable. when the price of coal rises, rangold tends to benefit the most. the stock has rallied nearly 50%. however, when the company reported its most recent results, the stock got obliterated. even though rangold dplifrnerred higher earnings, their production went down. management maintained their full year management guidance which
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suggests they're dealing with short term problems. in the wake of a quarter that was widely viewed as a disappointment people want reassurance. let's go to the ceo of rangold resources. welcome back to mad money. >> hey, jim, how's it. >> i recommended your stock, i saw the numbers, i said, it's got to be one off. they have to be able to fix the properties. when i go through your notes it seems like you're kshd these numbers can be fixed this year. >> gold mining is not only about gold production, it's about profitabili profitability. our profits are up quarter on quarter, year on year. we grew our cash, we have no doubt. every quarter can't be a better quarter than the previous one, it's not real.
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we have some tough operating environments. every now and then we have challenges. we had one of our best quarters. we had some challenging operating situations both on the ivory coast, compounded by some power interruptions and kabali where we had a failure -- we had to fix it. fixing things in these remote places takes a bit of time. it doesn't detract from our business of delivering value. >> at the same time, it's not necessarily raised the production cost. you're still dealing with the lowest production cost of any of the major miners, right? >> absolutely. and what's more, we're growing our cash position. never cut capitol, never impaired a dollar on our balance sheet.
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sure we're going to have our ups and downs, but the right thing is, we should have a few more ups than downs. we've been able to deliver that for 20 years now. >> you guys are always straightforward. you talk about how it's been -- kind of had a long streak where nothing went wrong, and in gold mining, things do go wrong. >> absolutely, we had a record year last year. we landed with a bit of a bump on the first quarter, we know what we're doing, this is a long term game, long term business, with a long term allocation of capitol. i've always kept my eye on the horizon. let me tell you, jim, everyone's pedaling very fast, we're focused on addressing some of these challenges and we'll fix it, very no doubt about, we'll fix it. >> it also seems with negative
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interest rates, if you're not going to make any money holding money in a bank you may as well go by gold, season the that part of what's going on right now? >> absolutely. >> i think everyone -- and i've heard this most of my life. . i come from africa, the one thing you don't trust, politicians and paper currency. you need to have a bit of a spread, and gold is a good bet in anybody's portfolio. >> i want to go back to the ivory coast, i don't know ivory coast. these are places you're more at home than i am. the power grid has supply interruptions, why should i think they can fix them? >> well, it's one -- it's a country in africa that's probably got the second best infrastructure after south africa. and it's got a government that's really investing in its infrastructure. it's come out of a 10 year
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conflict period where not much money was invested in the infrastructure. we have a backup power station which has the ability to run the mine when the power grid is down. the only problem is, with our expansion, we've had to order some extra generators they're only coming in in quarter three, we got caught with not enough generators to completely replace the power and the grid went down for about a week. >> that's good, now, the last question, when you hear about demand, we used to think india had big demand for wedding season. chi china. are those places still a natural buyer's or is it europe where frankly the rates are so ridiculous, you're paying to keep your money in a bank? i don't want to do that, i would rather pay for a deposit box and put gold in it. >> we ship gold every week, and when we don't ship it, and we
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delay it for a day or two. there's a lot of tense people around. there's a big demand for gold. we -- i think more so, we as an industry haven't managed that our supply side of the gold equation. slowly that supply side is now shrinking, and we have no reason to believe there's any softening on the demand side. when you look at the world, the global flicks as you point out. in a world where you can't make money by investing it in the bank. you can't trust anything, you need to have a little bit of security in any portfolio, and there's nothing better than gold. it's the only currency that politicians can't print. >> you're absolutely right, that's why we said it since the day the show started, you own rangold. thank you so much.
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great to see you, sir. >> this is the one to own, gold, mark bristow, stay with kramer. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t.
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a couple stocks going in different directions. fossil reported one more bad number. i told you i want to be careful about that one. and the apple watch is hurting them. stock was up 11 for allergen. looks like that quarter was the beginning of a major comeback, because there was a huge buy back announced with it, i know that whole group is shaky. witnessed by the fact that val yans can't get any traction what soifrn. that's the way it is right now, at the end of earnings season. there's always a bull market somewhere. i promise to find it just for you. right here on mad money. i will see you tomorrow. e.t. phone home.
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when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. lemonis: it's a small space.fit"... tonnie: it's been challenging. lemonis: ...a tiny cupcake shop with a big idea. tonnie: you walk in, you pick your cupcake out, you pick your toppings. lemonis: tonnie's minis should be raking in the dough, but it's not. there's $134,000 worth of debt. his biggest investor is his wife. erenisse: it's to the point that i'm not giving any more money. lemonis: tonnie's bakery is cramped and chaotic. sales are down. right now, we're losing money every day, and so i'm trying to stop the bleeding. and the debt keeps rising. erenisse: i'm just upset, 'cause i didn't know about all those people that we owe money to. lemonis: if i can't find a winning recipe for tonnie... we're closing the store. lauren: oh, my god. this is ama-- [ glass shatters ] lemonis: ...his relationship

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