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tv   Mad Money  CNBC  May 20, 2016 6:00pm-7:01pm EDT

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is one you want to sell. >> i like the spy june 205 puts for about $3.20. >> looks like our time has expired. i'm melissa lee. check out the website. don't go my mission is simple. to make you money. i'm here to level the playing feel for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer. other people want to make friends. i'm just trying to make some money. my job is not just to entertain you but to educate and teach you. so call me. or tweet me @jim cramer. thank evans the s&p 500 broke its losing streak of four straight down weeks today.
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nasdaq falling 1.21%. good. the bull deserved it. we are void of any news which allowed to us boulder a small rally led by the beaten down and at last a balance in retail. however, looking forward to next week, the dollar, the fed, oil, they're all going to come into play. calling some real discordant tunes. it all starts on monday when we get a slew of data from the euro zone. that will give us a sense of how weak europe is. why do we care? because the dollar has been up for four straight weeks. and a strong dollar is bad news for our u.s. based international companies. my beggest worry is that we get sub par data from across the atlantic. it will make the euro even more competitive. to make matters worse, we have a host of officials speaking next
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week including the co-chairman yellin. when we hear about three rate hikes, combined with weak european data, the next week it could get you goly. tuesday, a motley crew of earnings reports starting with auto zone. the big auto parts retailer that i like. i've been riding this baby for years as the do it themselves. and auto zone keeps voraciously buying back its stock. this is a rare moment when the rates are far off its eyes. if auto zone gets hit, i buy it hand over fist. housing matters. which is why i fear worst. stocks already down 17% year to date. in 2016, sfoks are down, they tend to keep going over. toll is right in the blast. i think you have to stay on the
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side lines. we hear from best buy and we haven't had a good read through on the consumers electronics yet. so i don't know how best buy can possibly buck that trend. i say pass. here's one i like. in intoit. a very good company with fabulous customer relations and i would put it on before the quarter even though the stocks are up nearly 7% for the year. that's precisely what is working in this environment. wednesday is a hot button with me. it has me a little bit bothered. it is about costco. this stock is a long time holding for my travel trust. you can follow along. however, i'm very concerned that the quarter that will be announced will be weakened
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because this is the last reporting period where costco will be tied up with american express. next time we partner with visa but the transition is a rocky one and i know this hurts sales. so i know you must expect a weak number going in. that could be the chance to buy. we also hear from tiffany. the jeweller. that's been a terrible story. down 15% for the year. this company seems to be capable of turning things around even for a nifty graduation present for my daughter there this week. but they blame the strong dollar endlessly even though it has become less of a factor. i'm starting to wonder whether management is up to the task of this difficult retail market. is tiffany due for a better quarter? i think you keep stocks like this in the penalty box. but it would be a coiled spring if something good actually happens. i'ming is of slashing number
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with tiff 9/11 it isn't entirely tiffany's fauld. williams-sonoma is such a good company and it is in the home goods category. theon home goods selling well are from the home goods chain. as we know from tiffany and also the hardware, it is in a rebellious mood. maybe the rich are scared away by bernie sanders. maybe they'll start shopping once the campaign finishes. like a dying animal. for now i am hands off on williamson open a even though my wife loves it. even though it is really overpriced things. you get me, right? for the last two weeks we've
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heard that it's been tough why. don't we wait to hear from the horse's mouth? pbh. the last quarter, terrific. these days, you know, you take your life in your hand when you guy stock over retail company let alone a power plan. popeye's reports, too. these restaurant chains are all in the dog house. because of the disruptive value meals from mcdonald's. hey, that stock got clocked today. and worries about minimum wage increases. the workers are not struggling. the profits are. it is so unusual to see this stock of popeye's down 10% from the year. at this point i would rather go with dine equity. the ultra competitor has rolled out a new menu at applebee's which we saw last night.
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you have a chance of finding the bottom if the numbers are not that good. thursday, the poerl a opposite of went the fancy schmancy stuff. we heard from burlington stores and ulta salon. all four of these have been terrific. they're viewed as discounters. i'm concerned that the $2 stores, well, the $1 and $2 stores. that's, it is not an outdoor apparel company. i'm concerned that both the dollar stores are getting, reinrig vatd market. i think the dollar tree is back thanks to the merger with family dollar that is rolling out. ulta, the place women go for make-up. however, it is a fabulous company with an amazing ceo mary
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dillon and betting against her is a fool's errand. although it never seem to stop the short sellers. we heard from game stop, sig net. time for something good to happen. more and more, just a retailer and less and less on the video game console retailer. 37%. it might be able to beat the numbers. even if game stop dispoinlds, i think the 5% yield will keep it from being really hammered. palo alto networks, i'll still talking about ransom wear. earlier this week, where hackers lock you out and hold your money
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ransom. they should make a movie about it. we know there is some big time bank hacking going on. so i think palo alto could give you a great number. given how out of favor this group is, i wonder if anyone will even care. how about friday before a holiday? a good day. let the junior guys, go to the hamptons or wherever people go. in california or something. can she speaks, we all stop and listen. a cacophony of fed speakers, they tend on move the tape every time they move their own trams. the only one we should care about is yellin's. we don't need those other viewpoints. same with the special teams
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coaches. save it for the internal meetings, the locker room. that's the way the fed should be. they should learn frf nfl. we have a heavy weak werngs some compelling opportunities. if yellen makes us feel like we're facing two or three hikes, any gains could be wiped away. george in new mexico. >> caller: hi, jim. first time caller. my pleasure. >> caller: i hold yahoo! with a 28 to 29% gain right now. i keep seeing all the takeover. i am a better to take my gain now or should i wait and see? >> i want you to take half off. i'm beginning to worry, done some good work. it is a principle asset.
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let's cut it in half. the core business worth more than just that. mark in nevada. >> caller: hi. got to speak to you at week as well. just an impression. it seems just a little less busy. a particular stock i'm looking a. charlie bob larry is the simple. >> 10% yield. it is a self-administrate regional. i have what i like, i did sun shop krerng those are the two that i like.
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everything else, no. plenty of big reports next week. could it all change if yellen comes out sounding more like arrested hawk than a slow moving dove? "mad money" tonight. the company that gave us spam is making moves. then i'm telling you why it is time for the fed to sit down and shut it. create an at any time. i'll let you know. so why don't you stick with cram cramer.
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what the heck just happened
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to the stock of hormel? i've recommended it repeatedly. that it was trying to do more natural and organic. but in the past week the stock has been obliterated. falling since monday. the food companies were involved but a big part has to do with the latest quarter. look, there was a pretty solid quarter. despite the strong headline numbers. investors are worried that the declining numbers and turkey products not to mention the supposedly rich valuation. given that it hassome some of the groet in the industry, i think it is justified. when you see a stock get killed, is the market overreacting?
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maybe something else to worry about? the president and ceo of hormel foods. welcome to "mad money." good to see you. >> we like what we saw. we know that the analysts are really focused on margins. margins aren't necessarily what our viewers are concerned about. they were concerned about commodity prices coming down. worried about the idea that maybe it is too good. it is basically too good and can't last. what is your response? >> we announced our 12th consecutive quarter. a pretty impressive. we've delivered earnings growth 27 out of the last 30 years and this year it will be, we need to really focus on the things that
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we can control, to continue to deliver long term growth. and those are the things, brand building. innovation. acquisitions. wednesday we announced the acquisition of the brand, another entry into the healthy, wholistic organic space. over the long term those are the things that will allow to us continue the 5% top line, 10% bottom line, long term growth goals. >> and there is a great, we call decks, handouts with great stuff in it. this is a cult following. people absolutely love the product. how about the price you paid? when can you get the payback? >> we heard from your staff. it is a statement on all their desks. it is a great brand in this specialty peanut butter category. the price we paid is a very fair
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price. as we think about it over time, it will be a great platform for us to grow. >> what else can you put through? >> we don't own it yet. we're working on that to really find out what kind of platform it can be. we're very confident. we think about justin, the founder of this. his, he is an incredible success story. >> it's been great. >> his mission focused on people, protein and planet is something that we really connect with. and we believe once we get to learn more about it. a great platform for us. >> now you aligned your portfolio with consumers. you've got the millennials, gen-x and boomers. >> we want to make sure we're covering the entire spectrum. the nice thing, we're doing it with both legacy items, so we're doing with it spam, hormel chili
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and some of the recent acquisition, like applegate, skippy's, wholly guacamole. so we feel like we're doing the right thing to appeal to the whole thing. >> there was something i didn't understand. you said you need to gain back distribution that was lost when supplies were pressures. >> when we acquired apple gate, we needed additional supplies. it's not like there's bountiful supplies of organic pork. that was our first major concern. so it was constrained. as a result of that, because of the increasing demand, we didn't have all the supplies we needed. so we've worked hard. find new producers on the pork side. and then combine that with the
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fact avian influenplans too. >> you have a really, you talk about there's been episodically things that have gotten wrong and you've fought right through them. each time a flu issue. >> that has been our message. something we need to grow our business for some of the most incredible volatility. we've had resessions. we've had grain prices that have been you this the roof. we've will the impact of the turkey. each time it has allowed to us overcome the head winds, the obstacles and deliver year over year growth. >> you talked about overseas, it looked like the international
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profit dropped a lot. in it you mentioned the eu pork. >> so what's happening, the russian market closed to eu, they were no longer to their pork, so that pork has made its way into the asian market. having an impact on our ability to sell. >> but that a smaller segment of our business. but we would like to become mr sbael, more global. you're taking share of skippy right. now that's because of brand awareness and new ideas and innovation. >> when we brought the band, we knew we could innovate against
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the band. we knew we could prioritize it and have our sales force focused on it. that's what we've been able to do. we're being able to not only grab a share back but the innovation that we've done. we've launched skimmy pb bites. a great on the go protein infused item for anywhere any time snacking. >> i think it is all working. long term, you're going to boring. that's the hormel president and control of.
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our cosmetics line was a hit. the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that. another step on the journey. will you be ready when growth presents itself? realize your buying power at open.com here's what amazes me about all the people clamoring about the feed for the feds on raise the interest rates stat. there's no boom in anything. an darn thing that has to be stopped by the fed. nothing even on the horizon.
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in other words, calling for the fed to tighten is like calling the fire department to turn down your thermostat. it's overkill. take the offside tech bubble. i wonder if they even saw a single tech call this quarter. where is the bubble? it is all about the adoption of the cloud. one of the deflationary trends i can recall. it lets people fire people. sure there was a bubble in tech with the privately held unicorns but that's over. these companies have no access to the public market. they can only hope to sell out. like cisco which bought jasper. the company in february from 1.4 billion. a fraction of what it might have gotten if it had gone public two years ago. or they can do a deal like square did. the one that came deep in the hole.
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or they can just fold. air b & b or oober are the only ones anybody wants to share. and who knows whether we with a only a wave uberif you looked at its fins. the emphasis is on had. these days when they report good quarters as they did two weeks ago, it lands with a thud. that's the opposite of a bubble. the air keeps coming out of the tires, pretty much everything other than facebook, amazon, adobe. the valuation seems to dribble down by the week. a sporadic deal and then nothing. big pharma not taking bait. i don't see any heinous valuation. two markets have overheated. the latter.
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the more like living it does $1 poe 5 million. go listen. the valuations are down 5 to 10%. pnling bonds. it is unfixable. they will say hey, we buy high yield debt. they're scorpions. just in their nature. gold. fed tightens again. treasuries? oh, please. the yield is way too high. oil? stop joking under. along with medical costs and rents both of which are impervious to the fed.
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you can avoid it. why not? we had wholesale credit freezes and the ipo market hasn't recovered. the federal reserve can't roll back minimum wages or higher overtime pay or government costs. it gives the defligsary power of digitization. all which are hammering persons raises. you put through a rate hike and fewer business. who does a rate hike? commentators who don't understand how the new economy works? money managers? so here's the bottom line. there's nothing urgent needed to tighten immediately. i say, why not be patient?
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let's to go elio in massachusetts. >> caller: a bay state boo-ya. >> what's up? >> especially with oil rising and a low pe racio. i'm not a fan. i'm not pushing any oil stocks other than slumber. these others? why bother? they're not my cup of tea. one word for the federal reserve. patience. take your foot off the rate hike gas. the two, three, take it off.
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tonight i'm revealing a very special play that could pay and won't keep you up at night. is there a reason for the call? plus, all your rawls to had line round. stick with cramer.
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we know that it is not exactly easy to get credit in this country unless you're all but wealthy. and the rate hikes will only make it harder to borrow money. so what do we do with a company like allegeding tree?
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lending tree? just to be clear, this is a totally legitimate business that's not to be confusing with lending club, the now scandal. it might even get tighter. let's check in with doug, the founder, cheryl aairman of lend tree. >> how can you do that in this environment? >> our growth is actually up about 80%, on revenue and the bottom line. and it is happening because the online lending business is really taking off, as match maker with over 300 lender. >> the mortgage market. we are concerned on the network. one, two, three. that will hurt the business. >> it will hurt the overall business. particularly in refinancing.
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however, lending tree has grown despite originations over the last five years. very similar to the travel business, lenders need with it extra volume. >> i could not believe, you are said in your conference call, you brought up lending club. you brought up how much could it hurt you, not that much, and there were others. could you insma what you said? >> absolutely. lending club and others are doing what lenders have done for years. except they're much more automated. and they had an issue with internal compliance. others might have an issue with credit, et cetera, et cetera. but it is one of 300 in our club. they will need to compete
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against citi and chase and others. >> this is like price line in a merged airline business. >> you've got it. it is the same thing. we have 30 lenders on personal loans. they are moving into personal loans with very, very stable sources of capital. >> it is in the lending club's dna. a lot of them came of age when that? what's bringing them in, we see they satisfy gentlemen with you. they don't want troe finance but they want access to the customers. we save allegeders money from marketing. that's the whole deal. >> now, we earlier had had
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zillow on. i was talking to him about his businesses. doug is the one who competes against you. he is determined to take your business. >> zillow do a great job in mortga mortgage. they like more of a matching or more of a lead model. we have both. but zillow will be an interesting competitor. we're not just mortgage. >> auto. ? i want to mention, are there any bubbles? i don't see bubbles anywhere on the economy. >> i think there are republicbu. i'm buying it. i'm not seeing bubbles in
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allegeding in general. i think it is getting much more competitive. >> i'm buying, you're buying. there are still 12 million shares. you've been buying back stock but it is going up. we have a huge buyback underway. i paid taxes last week. wess now is the time. i'm looking at an article about donald trump. do you think it would be good for business? a lot of people are concerned. >> do i. i was a support he of ben carson during the primaries and the people who worked with carson came over to work donald trump. i certainly think he will be better than hillary clinton. >> hillary clinton speaks for people who may not be all that wealthy, who would be clients of lending tree.
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>> i think donald trump speaks for the working class as well of i grew up in pennsylvania. i know those people well. we want to save them money and i think he will be best for the country. >> let me go back to lending club. you think. >> reporter: other companies still getting in that business? it is a good business if you do it right. >> it is. as a matter of fact, your old place. goldman sachs, they'll be entering the personal loan business. discovery is entering into the personal loan business. home depot is entering the business. they write bad loans, they'll have defaulting. just like mortgage companies have faced. >> i like the hedge fund companies. >> you got it. >> you have been at it a long
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time. when i hock at the income. >> internet allegeding today, they're focused on it. it is increasing our revenue per customer which allows to us step on the gas. ? other than guilt by association, because of lending. that's the founder and chairman of lenling tree. if you're going to make a statement... make sure it's an intelligent one. ♪ the all-new audi a4, with available virtual cockpit. ♪
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technology moves faster than ever. the all-new audi a4, with apple carplay integration. it is time! are you ready skee-daddy! time for the lightning round. we'll start with mark in europe. >> hey, jill. we watch the show religiously. we love this. and the stock hit 92.
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it went down to 65. >> okay. we don't care where the stock came from. it is where it is going to. a little less than that i'm interested. down 20% and i think you pull the trigger. >> i think you want to buy. tim in washington. >> jim! my stock is fiesta restaurant group. frgi. >> wow, it has been eviscerated as have. of the stocks. i've been talking to my team. we're going to put together a very big restaurant rundown next week. >> jim, how are you? >> i'm feeling better than my voice. what's up? >> caller: i'm looking long material for ctg.
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>> i'm not going to bless that. i need beverly in texas. beverly. beverly. >> caller: hi. >> hi. >> caller: i'm so excited. i was asking you about whole foods. i own whole foods and i don't know if should i sell it, hold it or buy more? >> no. buy more. this turn is real. the other guys are going by the way side. they are turning around whole foods. this is the level i want you to buy. mike in massachusetts. mike. >> caller: i'm a young investor. my stock is solar. today it is down to 48. should i buy more? bring my price down or hold? >> i think it is an overreaction.
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devin in california. >> hey! >> interesting speck. i'm not there because i know that balance sheet is not good. i'm with slumber. that's the conclusion of the lightning round! >> the line round is sponsored by td ameritrade. >> it is time! it is time for the lightning round. everyone is always carrying a high resolution on their phone and you can end up on instagram at any given moment. if they develop a phone that can
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hear this voice, i'm in trouble. >> congratulations on graduating emma, by the way. >> don't tell her i have a sore throat. >> don't know it well enough to opine on it. some pro try itary brands but they specialize on making private label products for supermarkets. i set my stamp out. they came back with soup. they had hormel chili and then they came up with cramer original, special k. we have special c. and it turns out that amazon -- king me! spins? fruit spins? a really big night? i prefer special k.
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or special c when he finds where i threw it. i'm here at ththe td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. when you cook with incredible tokyo-stingredients...les. you make incredible meals. fresh ingredients, step-by-step recipies, delivered to your door for less than nine dollars a meal. get your first two meals free at blueapron.com/cook .
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he know that many have you want some exposure to emerging markets. because they have tremendous potential for growth.
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but in emerging markets are also very risky. and in reason years they've been far from kind to your portfolio. brazil is kind. venezuela is even worse. chinese stock market has been a destroyer of value. in short if you played with emerging markets in the past year, you've probably gotten burned. what if there was a better, safer, smarter way to play emerging markets? way to capitalize on the eninvestigatements without actually investing yourself? it urges the out there is. msci. mary, sam, charlie. with a stock that's quietly generated outsized performance for years without sunning investors for years. msci are indexes and analytics. in short it is the creator of
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indexes. they've been creating them for years. and something like $10 trill have been margd up against indexes. these guys serve 97 of the top 100 asset managers. the company has it based on their index. they have a very popular merging popular endecks. and another even riskier frontier markets index. but msci has gotten creative. stocks with certain characteristics. infrastructure, agriculture. you're looking for a real estate. or may be you want a strategy endecks like one where they hedge the risk. msce will build you a custom index. tailor made for a given climate. how about the analytics side?
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they have an entire risk management platform to figure out what the potential down side is. and including some cloud based software. they have the management tools. systems administerive business. that's what they want to do. if you're in the money management business, whether you're in a passive index fund. as the business of investing becomes sophisticated, the company have become increasingly essential to the entire business of money management. but the reason i bring it out is because i've noticed that the stock has been a tremendous consistent performer. up 5.5% year to date. rallied just over 20% in the last 12 months.
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s&p 500 is down 3%. and it has gained more than 120% over the last three years. compared to 22%. in fact, it became public in 2007 a month after the market peaked. since its ipo, the stocks up more than 300%. the s&p 500 only at 40%. same time frame. and there are good reasons why it has done so well. it reported, they turned 6.1% revenue growth into some magnificent 36% earnings per share growth. thanks in large part to a gigantic 680 basis point increase in the operating margin which rose to 40.6%. that's fabulous. how does it general trait stellar numbers? first of all. there are currently over 750 linked to the indexes. and although the performance of
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the market is linked is pretty inconsistent, downright weak for the past couple years. you make your money less from performance and more from taking a cut of the assets under management. the cash keeps rolling in. meanwhile it is remarkably consistent. three quarters have to revenue comes from index or analytics. and they ten to have extremely high retention rates. the reason, they're that essential. the company has retire 29 million shares. that's 25% of the share. one quarter of it. talk about a monster buy. just in the most reason quarter, they he i am bursted $335 million at an average price. the stock is at 75.
tv-commercial
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so here's the bottom line. the next time you feel desperate to get some emerging market exposure, don't buy it on the submerging index. invest in the developing countries has been a game for years now. even if the global economy gets better, it will be extremely risky. why not just invest directly in msci? the company has been a terrific performer because they make money regardless of whether the indexes go up or down. which is why i think even though stocks have a run, msci is a terrific and long term investment.
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our cosmetics line was a hit. the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that.
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another step on the journey. will you be ready when growth presents itself? realize your buying power at open.com [phone buzzing] [engine revving] [engine revving] [phone buzzing] ♪ some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection. i'm a spam guy. i like to say there is a bull market somewhere. i am jim cramer and i will see you monday!
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>> narrator: in this episode of "american greed: the fugitives"... they were the heady, get-rich-quick days of the dot-com boom. >> promising internet riches was the way to get into somebody's wallet. >> narrator: among the companies that raises millions -- an online-video start-up with a famous pitchman who exudes trust. >> i'm sure you've heard of it. it's called the "internet." >> narrator: but the website is a sham. its only purpose is bilking investors of millions, and when the feds come knocking, one of the men who's allegedly running the scheme heads to sea. but first, street criminals turn to white-collar crime. >> this is the first time that i had seen people who graduated from narcotics, violce

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