tv Mad Money CNBC August 3, 2016 6:00pm-7:01pm EDT
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on. >> i think for the traders from a gap fill down towards 200 that could be a dress trait in the near term. >> didn't give anything to the bears. >> is there enough for the public polls. >> tomorrow, sister. >> we my mission is simple, to make you money. i'm here to level the playing field 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! welcome to "mad money." welcome to cramerica. other people want to make friends, i just want to make you some money. my job, not just to entertain but to teach. so call me at 1-800-743-cnbc. we can start picking winners, anoint them, so to speak and nab
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some losers and render decisions about where to put your money. averages are bouncing a tiny bit today. s&p inching up. and nasdaq. remember a few weeks ago when i told you that the s&p 500 os later i follow, the one that measures the buying pressure was giving an overbought reading of plus 10, indicating excessive buying and it concerned me? back then i said the market would have to work off by a selloff or decline over time. the market chose the latter path. and we've now gotten to the point where it's no longer unsafe at any speed. i'm not saying just buy anything. after a shallow advance, the dow produced seven losing sessions.
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the bull market was lucky that it wasn't more damaging and permanent, because every time the market takes a sharp turn down, more people flee. what looks more promising? i see the humanization of pets, semi-conductors of all shapes and sizes and the steel stocks. how about those to avoid? the retailers, super markets, restaurants and airlines and travel and leisure businesses. let's roll up our sleeves, okay. and go over these winners and losers. first, let's tackle bpets. i still think the best thing besides the internet of things, no. you're looking for a true rising tide. i say look to the growth in spending on companion animals. this is that so-called
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humanization of bets, not to confuse with the "secret life of pets." the ceo of i dex laboratories, when he came on the show five weeks ago, goes like this. as cats and dogs become more involved with their masters as being demonstrated by being allowed to sleep in your bed, health care spending on them has surged. sure enough, it gave us the biggest beat in raise which saw the stock rising to the moon to just under 108 today. what's behind the run? on the conference call, idex talked about accelerated companion animals gains. it showed 10% to 11% growth, natural, organic, including vet-connected business lines that have 13% gain on growth,
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like recurring diagnostics, which is what happens when millions of pet owners take trips to the vet. the animal focus drug company reported upsizes and noted that its companion animals business also had 11% organic growth. it's no fluke. it's a bona fide secular trend! how about the semi-conductor stocks stocks? they've been on fire, including arm holdings. but honestly, this semi conductor rally could have been fueled by earnings alone. we've seen numbers from texas instruments and amd. cirrus logic. and it's given the am stopple s rally a second win.
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i say peers, because apple components manufacturers are not allowed to name apple. there's no negative pin action. and that is a sure sign of strength. and when intel gave you subpar reports, even though it had run quite a bit from the bottom, the real stand outs? nvidia, the video chips maker. and i still like nxpis. which ran big into takeover talk but it's now pulled back to a very buyable $83 level. the third theme i like? biotech. it looks like the long national nightmare that was biotech is over. i like to judge this by what makes it run. last week they reported a better than expected quarter, but even
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when the stocks aren't so hot, like biogen, biotech stocks are running on positive clinical trial data. witness the gigantic leap in ionis pharmaceuticals. remember, we had them on this week? and their partner biogen exercised its commercial rights to buy the rights to the drug. the four horsemen of the apocalypse seem to be back in the races. in addition to the aforementioned biogen and cellgene, we'll see if the recovery's more permanent than people think. then there's this weird group, the steel stocks. everybody loves a low dollar stock. it had an amazingly positive
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reaction to the tariffs president obama put on the steel companies. these commodities will keep running, however, if you want a growth steelmaker that happens to be addicted to profitability, i propose you buy nucor, it came on the show a week ago after reporting excellent numbers. now for the losers. many restaurants can't seem to get it right. today's trend, dying equity. its applebee's division. and darden, only panera bread and jack-in-the-box have managed to buck the trend. super markets have taken it on the chin, too. both whole foods and kroger
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having a very tough time. unless you're in the dollar store quadrant, you're getting slammed. then in the oil, overcapacity, and now the zika virus are stinging them. and tonight trip adviser reported very suboptimal quarter, royal caribbean in the travel and leisure doghouse. we're seeing rare weakness at nike. and under armour. much of that is caused by the decline of sports authority. but we got news from kate spade. it's not just sportswear, it's sneakers that are struggling. if you can get comfortable with an animal health company or a biotech or steelmaker, you could be rewarded here, but if you own retailers or restaurants or power companies or airlines and travel leisure businesses, you could be in for some turbulence.
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at least until the end of earnings season. i want to go to tito in nevada. tito. >> caller: hey, what's up, jim. greetings from las vegas. >> man, not much happening, how about you? >> caller: not much, man. sprint's been having a great year so far, i was wondering if now was the time to pick up some shares now that it's retraced a bit from the high? >> yeah. i would be a buyer of sprint. i think the company has really come around. they've done a terrific job, and i'm believer. i wouldn't leave it, even if i tried. how about rob in pennsylvania? >> caller: hey, jim, a big boo-yah to you. >> caller: i'm a hershey shareholder. do you think mondelez may be
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coming back with a bigger offer for hershey and the ag will have any of reaction? >> i think we might see a higher bid and transaction. i would hold onto hershey. thank you for that call. now, are your stocks winners or losers? earnings season is separating the weak and the strong right now. and we're seeing strong turns in pet health, steel. on mad tonight, you probably i have its products in your pantry tonight, but after today's earnings, can you clean up in this market? my exclusive with the ceo is in. then revenge of the underperformers, four stocks that have gotten no respect, taking a totally new lease on life. and he began hayis career with
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money and little direction, but he turned his dream into a $25 billion fortune. i'm sitting down with the founder of nike in a rare interview. find out how he just did it. stick with cramer! don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail at cnbc.com. or call at 1-800-743-cnbc miss something? head to "mamadmoney.cnbc.com. you're here to buy a car
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is this the revenge of the nerds? or just the revenge of the underperformers? either way, the story has become a khai theme of this earnings season and most evident in etsy, the hippy dippy place for handmade goods, gopro, fit bit and groupon. all four of these companies have had storied careers as retail
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darlings and at various points crushed their shareholders' dreams of big profits. the decline wasn't caused by the company's actual performance. it was because of the bar being set for excessive enthusiasm for its products. take etsy which rallied nearly 9%. here's a stock that traded at $30 in april 2015. it was seen to be the next amazon. at the time i called it the natural organic amazon and told you to stay the heck away from this one about a month after it became public. the surrounding stock was totaling the love of its website with the brooklyn-based company. it seemed intent on empowering individual merchants, do-gooders, it was certainly sacrificing the long-term
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numbers for short-term success. but the long-term success has arrived. 39% revenue growth. 64% adoption of the mobile app. it was originally seen as a clunky site. the company, like the others, have been left for dead, so it traded as low as $6, february, a week in february. now because of its accelerating growth and world-wide reach, i have to wonder if etsy isn't one of the more undervalued stocks out there. how about gopro? here's a company with an exciting suite of products. and it went from $24 in the mid '90s. peaking after a disastrous holiday season, it was a long slog down to $8. but gopro stock has been on fire
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ever since. 20% sequential gain. and rising 11%. having been reduced by 35%. gopro is about to unveil a series of new products that might fulfill the hype of a few years ago, just when this darn thing looked like it had dropped off the radar screen. i think it could be a good trade -- not investment -- trade. speaking of much revolved. it's hard to get more hated than groupon was when the stock was trading $2. but last week, they recorded a quarter that gave you a lot to like, significant free cash flow as management turns around the core business and eliminated some empty franchises. but when the ceo, richard williams, told us in the conference call, we are further
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along the path to become the daily habit in local commerce, he had the facts and figures to back it up. i like that groupon has $780 million in cash. it can do acquisitions with ease. but perhaps one of the more ironic terms, is fit bit. even though its stock has been a dog, fitbit, the company, actual lay never really disappointed with its earnings. it just stung shareholders with weak guidance, not this time, which is why the stock soared 13%. it's increasingly moded health franchise have distanced this company from the competition, and i'm including apple. you could never size on its revenue growth. but i like the acceleration of growth in europe. plus the holiday season should
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be great for fit bit, this was a nonexceptional holiday quarter. they all stand out from the quarter. all realizing their formerly unrealized potential and all low-expectation places to be as the dog days of summer unfold. let's go to alex in new york. >> caller: boo-yah ski daddy. >> keith, what be shaking? >> caller: i'm calling you about sketchers, skx. it fell by 35%. i took a small position as a speculative trade. now is it a good time to enter into a sizable position for a bounce back or maybe a longer term play? >> no. we're going to wait until the company comes on air, and we'll talk about it. because the stock's had a bit of a hit. it does seem cheap to me. let's go to janet. >> caller: hey, jim, how are you? >> i'm doing well, how about you? >> caller: great.
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i'm calling about office depot, odp. what are your thoughts on the q q2 earnings, and what do you think about if another merger is in the picture? >> i don't think another merger is in the picture, and i think that it's good that they're cleaning up their story, but i got to tell you, long term, i'm not a fan. just like the nerds, these stocks have been late bloomers. how does expectation spell their stock. it's been a historically weak august. much more "mad money" ahead. whoever said print is dead never took a look at the stock of r.r. dollar donnelly. and my exclusive with the company that's been cleaning up for more than a century. can clorox keep you out of a market mess? i've got the ceo. and the man who made icons out of the swoosh and athletes who
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wear it. coming up, cramer is joined by one of the most successful entrepreneurs of all time. find out how bill knight captured both the hearts and the feet of the modern consumer. >> i though you asked me what was paid to michael jordan. the original contract was $250,000 a year. >> when "mad money" returns.
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kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. an american story of unmatched success. from the tracks of oregon one man changed the way we run, train, and dress. now bill knight is writing a new chapter. these days, people act like
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aev startup is a tech company or biotech company. we forget that the giant corporations of today were the success of yesterday. take nike. it dominates the sports apparel markets, but when bill knight started the company in 1964, he was one guy, selling chinese sneakers out of the back of a car. i mentioned this, because phil knight, the founder of nike, published a memoir called "shoe dog". that i think is one of the best books i have ever read. he's talking about nike, his book and his life. welcome to "mad money." >> thanks very much, jim. i can tell you in all honesty, it's a great pleasure to be on
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your show. >> thank you so much, sir. i found out about your book in an odd way. i found out from bill walton and asked me if i'd raead it, the great basketball player. when i found out you were coming on the show i was so excited. let he ame ask you, as a shoe d where is nike in the firment these days? under armour is hard charging, kevin plank reminds me of you in your early days. nike is king. can neike stay king with those competitors? >> yes, and we will. we'll compete very hard, and we have a lot of growth in our future and i'm very optimistic. >> what is going to become of this industry of apparel when we have endorsements that a lot of people feel are out of control,
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but are clearly a tremendous driver for sales? >> yeah, well, this may surprise a lot of people, but in our endorsements, at nike, we use a very sharp pencil, and we sharp on endorsements from time to time. there was a great soccer club in europe, we said it's too much. it's too much for us. so you can read a lot of money about endorsements like michael jordan, but he's absolutely worth it as is lebron james. >> the idea was that people, if you saw people liking the shoe, if you saw them wearing it themselves, that was a personal endorsement. has it gotten upside down now where you ask the guys to wear the shoe and they'll pay them is this . >> i don't think so. some of the best endorsements, we were proud to have them wear the shoes or clothes for no
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money. but we use a sharp opinion sipe. and if the athlete doesn't produce the sales, it's not worth it to us. >> i saw today the news that the wolverines are going to roll out jerseys with images of michael jordan, but they were the football players. is that what you had in mind when you started the jordan line? >> exactly on plan. no, that's a sarcasm in case you couldn't tell. >> no, michigan would want to call me if i don't stop you right there. they're baffled. what do we say? >> no, it's, no, i think, obviously, the whole industry has changed dramatically from the way it began when i got into it. and the jordan brand has become a true brand. and it stands for more than just basketball. and so the first football team to wear the jordan shoes is going to be the university of michigan, and we're proud of that, and if you saw the claims
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from the transition when they moved from their old endorsement over to nike on allugust 1st, i was almost a riot like the jordan shoes in the big cities. they had the 250-person marching band lined up around the block. >> one of my staff members has a hoops store near her, and every time there is a new addition for jordan there is a line around the block and it starts in the middle of the night. how do you explain the staying power for whom many never saw play? >> he was the best at that played, maybe the most dramatic as well. he had a colorful game, a handsome guy, and spoke well and stayed out of trouble and jumped over the moon and made all the shots that were storybook. and tinker hatfield designed an
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innovative product for his feet and it caught and became a brand in and of itself. there are a lot of people buying the brand who don't know who michael jordan is. >> there seems to be a bit of luck. as you said in "shoe dog", you went after ryan leaf instead of peyton manning. >> when it all comes together just right, it creates magic. >> is footwear getting too ex p pensive? we saw $225 online for a pair of jordans, does that not fit with the persona of nike that you created? >> well, i think ultimately, we say around here, the consumer decides. and he'll tell us, he or she will tell us. and that the important thing is
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that the shoes are comfortable and they perform and help you perform and when they're doing those things, they're worth a lot to a person. >> historically, you've not revealed, the company's not revealed how much you pay michael jordan, i doubt that you'll do that in this ifts view, if you want to do that, that's fine. how about the best deals, i think that the neike nfl deal ws a coup, it was a major deal that really helped. >> yeah, i think so, too. getting the nfl deal was a big deal, but the nfl wasn't cheap, and we figured, we used as sharp a pencil as we could and it panned out better than what we thought it would. i know you asked me what we pay michael jordan. i won't tell you what we pay him today, but the original contract, we paid him $250,000 a year. and "fortune" magazine wrote an article that said there's no
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doubt that nike's lost its way to npay that much money to michael jordan. >> how important are the l olympics? you spoke about olympics '72. but there was great joy. they're important, aren't they? >> especially to me as an old track guy. the olympic games are the pinnacle for any track and field competitor. it's true for many of the other sports, gymnastics and swimming and volleyball, probably. the competitive arena is our fashion runway, if you will. that's where we show our stuff. and show that it's, it is the best product, because it's being worn by the best athletes. so the olympics are huge to us. it's ultimate athletic contest, and we're very optimistic how we're going to show in rio. >> are you surprised about how nike is kind of universally one
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all the time. i was at the trade center today. i saw so many tourists, and they're just wearing nike. i don't know if they know what nike is, but it's a brand that has a life of its own that often has nothing to do with sports. >> i think in obviously trying to make the shoes and clothes that fit well and are comfortable and that kind of breathe and you can move in, that's what we try to do with our athletes, and it carries over to the general consumer. it can also be a more comfortable shoe to mow the lawn in. so yeah, it gets a lot of crossover, but our ultimate feex is on the athlete and his or her performance, but if we do at that right, we get a lot of the other consumers as well. >> how much does technology still matter? you innovate, you have innovation as the reason you succeeded. is innovation the reason you say nike is going to be here and big for a long time? >> absolutely. we spent a lot of money on it,
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we think we have the best people and we think we'll get the best results as we have for the last ten years. >> that's phil nigknight. we'll keep chatting here and you'll see pomore of our talk tomorrow night on "mad money" you pay your car insurance premium like clockwork. month after month. year after year.
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organic growth, including the housewares, think kitty litter, and then clorox wipes. plus management guidance was down right thrilling. forecasting 2.4% sales growth. it's substantially higher. that's why the stock went up today. and while clorox's dividend rate is now smaller than some of the others like proctor or kimberly, don't forget it has a lot less national exposure. let's take a closer look with the ceo of clorox. welcome back to "mad money." >> thank you for having me back, jim. >> you've invented some things here. otherwise i can't explain the top-line growth. but i'm not seeing a lot of top-line growth in your
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industry, talking about disinfecting wives, febreze kalts lcat litter, the flavored hidden valley products which are suddenly dwroiing so fast. >> yeah, jim, that's one of the hallmarks of our company right now. we have growth where others don't. the reason is pretty simple. we take out costs and reinvest those cost savings into the business. we have increased our investments in our brands tremendously over the last fiscal year and increasing it behind a very strong innovation program. we have innovation where others don't. and the last quarter really is a good example of how that's paid off. we've gained volume, 7% for the company, 9% in the u.s. and that really puts us in a pretty special place in our peer group. >> how did you come up with the idea of mixing febreze with the cat litter? >> that's a pretty obvious innovation.
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some people would have said that we could have done that long time ago. why? because febreze really is a gold standard in odor control, and odor control is the core benefit in this category, cat litter. so what we've done is combined the two best brand equities in this categories with fresh step and febreze and giving consumers a superior product that has really resonated very well initially, for the first time in several quarters, we're back to market sahare growth and we hav sales and we're feeling good about this category and the innovation, febreze in particular. >> renewed life ak whichization, when you had burt bees, renew life, i use ultimate flora. is this going to fit in with
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burt's bees as niche? >> we've always been a health and wellness company, jim, and that is a very attractive category that we like. why? because it is profitable. because it is based on a very sound and growing consumer need, and because it is expected to grow double digits over the next few years. it is a very strong fit with our capability, so we think it can really be a nice new growth platform for our company, like burt's bees, which, as you've said, we've done so well with. first job is to blow out distribution, which is a core capability of our company, and we'll plug in our marketing capabilities so we expect to see continued double digit growth and expect it to go 2 points in incremental sales in fiscal 2017. >> the other thing that surprised me, how's kingsford's growing?
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you're growing on top of double digit. that's not innovative. is that some sort of retro thing? >> our people at kingsford would be hurt if they listen to you saying they're not innovative. they've brought a lot of innovation to this business, no pun intended over the last few years. it's a $500,000 business. and we've grown it over the last p few years. we have extended the season of barbecuing and engaging with consumers online. we're big believers in being at the forefront of our industry and engaging with our consumers online. and what we've done over the last quarter is completely revamp the way we talk to consumers online. we're educating them about grilling. we're educating about making a perfect steaks, chicken, vegetables, with kingsford
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charcoal. and, as a result, the rate of consumer engagement has tripled from the last year. so this is a perfect example of how we're engaging with consumers in new ways and getting them back to charcoal grilling and with an 80% pmarke share we're benefitting in good ways. >> you couldn't do that without the social medias and facebooks and twitter s. >> this last year, 41% of our media spent went to digital and social media. that's up 30% from the year before, and we think this fiscal year, this number will continue to increase. so this is a big part of our revamped marketing efforts, and
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we like the are yoreturns. >> congratulations on a really good growth quarter. thank you, good to see you, sir. >> thank you, jim. >> company that has great growth. it's not in venezuela. i should have mentioned that earlier. it's one of the best quarters of the year. stick with cramer. what's better than "mad money"? how about more "mad money"? follow "mad money" on facebook, twitter and instagram to go one on one with cramer. >> reaction. what are the questions we have? ah, i always tell people you've got to start with an index fund, because i need you to be diversified. >> get more with guests. and go behind the scenes with the most interactive show on television. >> if you can't explain in three bullets why you're buying a certain stock, don't buy! >> follow "mad money" today.
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we start with john in wisconsin. john? >> caller: hey, you're the original energizer bunny. >> whoa, i like that stock. clor a >> caller: are you going to tell us what vitamin you take so i can take it and buy the stock? >> i take ultimate flora. >> caller: i'm talking about opk. >> i think he's doing his thing, every since that acquisition, his stock has done nothing. it's flat lined. i'm still with bill. i need to go do sal in new york. sal. >> caller: hey, jim, how are you. >> i am good, how about you, sal? >> caller: i'm doing well, i want to give you a big old school brooklyn how ya doin'. >> how ya doin' right back at you? >> caller: i'm doing well. 62 1/2s and 27s.
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i've got the januarys and i'm particular and tir sick and tired of watching them go up and down. >> i wouldn't touch a thing. i'd want you to be in it. we got to take reid in texas. reid. >> caller: remember the alamo! mr. cramer, how are you? >> yellow rose of texas, my friend. >> caller: i'm up 31% on d ph.d.. >> well, i think you're okay. and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. you're here to buy a car.
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what's happening at rr donnelly and sons? a bunch of businesses have been thrust into the spotlight. roughly a year ago we learned the company plans to break itself up into three separate, easy to understand businesses. a printing business, and a communications and data services company that will continue to be the most trusted name for publicly held companies.
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but, and this is a huge but. three weeks ago we heard about a possible merger with xerox. first bloomberg may want to acquire the entirety of donnelly. make the story even more confusing. rr donnelly reported, high other than -- higher than expected revenues, given how much the stock had run, anything less than perfection is going to result in a selloff. the communications being spun off. and the financial being donnelly financial solution. so does it make sense to do some buy in a weakness? or a merger may still be in the works? let's check in with the
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president and ceo of rr donnelly. find out where his company is headed. >> let's put it to rest immediately. you heard me say, first, the bloomberg story. any of it true? >> jim, we haven't responded on rumors in the nine years i've been ceo, and we're not going to start now. we on track for the spins. the soft spin that's going on now, we're paying people appropriatelily. we had a bank meeting today that went well, we'll be on the road in the next couple weeks. >> but the fact is, you are your own internal activist. this plan was put in place because you felt the company was undervalued. not because somebody else knocked on the door and said you have to do this. >> the management team, we felt as if in order to create value, we need to break it up. our financial business should be
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trading at a high single digit multiple. and anything i did would come down to the print multiple. rr donnelly, probably would trade at a higher multiple than today. and the conditimpany i will be involved in will be at a lower multiple. >> why did you choose that division to run? >> the good part for me is that we have all-team that's with us. we've been able to set up three management teams for internal candidates, our hr committee has done a great job. dan knots is going to run part. andi ive e've gone over to lsc. >> show pea some lsc. >>inserts.
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there's a nice book by jim cramer. >> i presume all these, but rlc may be able to to get some growth? >> the three leaders in the business are the same. you're not go being to see us go crazy one way or the other. we know we have to reward our stakeholders and make our payments. and acquisitions will be part of all three companies. >> have we arrived at anything for the payments? >> we haven't. >> as we think of financial solutions growth business, a probably small dividend. obviously, rsc will have a dividend and rr donnelly will continue to pay a dividend. >> reason with me for a second. you've added some great companies, delivered this great dividend and got some growth. why did the market never, we
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always told that the market's perfect and everything, but aren't you a living, breathing example of a company that just didn't get what it deserved? >> yeah, i take blame for that. we've got $1.2 billion in ibida. here's three companies, here's where they're going to stand. there'll be focussed management, cam tal structure. right investment policies, and we think at that will endip w u winning the day. >> you're way too humble. we've been making good upony with that yield and by buying the stock when it dipped tand it's been much bet ter than the
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averages. >> who do you compare us to. >> there's nothing else at that springs up that's like you. that's part of the problem. >> yes, no. we agree. >> the next time i see you, the company will be broken up, and i will see you as chairman and ceo of lsc. >> correct. >> i know you can't comment on the rumors, but i had to give it a shot. he will be the president and ceo of lsc communications next time we see him.
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- my product is called happy tree maple water. we're looking for $2 million for 20% of my business. - it does taste pretty good. - it's got broad taste appeal. middle america will drink maple water. they won't necessarily drink coconut water. - weird. - nasty. - disgusting. - oh, man. - my company is bungypump. they are patented fitness walking poles. - what we're about to ask valeria today is by far the mother of all challenges. - oy, oy, oy. - meet my mother. [eagle cries] narrator: deep in the heart of texas, two men carved a fortune from a harsh and unforgiving land. butch gilliam transformed a humble machine shop
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