tv Mad Money CNBC September 15, 2016 6:00pm-7:01pm EDT
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they can move higher. >> i'm melissa lee. thanks so much for watching. see you back here at 5:00 for more "fast money." ""mad money"" with jim cramer starts right now. 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'm just trying to make you some money. my job is not just to entertain, but to educate and teach. so call me at 1-800-743-cnbc or tweet me @jimcramer. of all the calls i've ever made on this show, few have ever been more right and yet more derided
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than my view that you should just own apple, not trade it. yet today with the stock breaking out to new yearly highs, it's time to talk about why we stayed the course. this is important and not just because apple, the largest company in the world, can actually help power the entire market upward as it did today, with the dow gaining 178 points, s&p declining, and the nasdaq falling 1.47%. we have to analyze my apple call because all the years i've been in this business -- and, man, i've been in it a long time -- i've rarely ever gotten so many criticism, so much cat calling than i did for my don't trade it, own it mantra when apple shares got hammered after the march quarter. i was widely seen as being sentimental at best and at worst down right stupid and arrogant and ignorant. after all, hadn't the facts changed? what wasn't the growth gone?
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despite the widespread hate for apple and its stock, including it's so-called bullish analyst who's are mostly negative anyway, i thought otherwise. as the stock tried down from $112 to $93, was convinced nothing really had changed asize from the fact that had gotten much cheaper than it should have been ahead of the brand-new iphone launch. with over a billion iphones out there, could eventually move the needle. i didn't think anyone other than the most nimble traders would be able to get back, get out of apple and then get back in again. that wasn't worth it. not worth the risk even though that march quarter was the first down quarter in 13 years and therefore the stock had indeed lost its growth luster. i didn't want to try and back away from the darn thing even though carl icahn had bailed after three years with the bag name investors saying that a slow down in china convinced it was time to go. many analysts were saying apple's best days were behind them. today we learn that the new iphone 7 widely hailed really
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before its launch as a total flop, is a huge hit. with many of the models of that phone sold out worldwide, to call these sales better than expected is a dramatic understatement. especially when you consider all the bullish things that sprint, at&t and t-mobile are saying, the latter krouing these are the most pre-ordered devices in t-mobile history. that's huge. it looks like once again you had to own apple, not trade it given its remarkable run over the last couple of weeks. now, i wonder how the 295 ill advised, large funds that bailed on apple according to bloomberg feel about missing this quarter's 21% gain, the ones who traded it and didn't own it. but now i want to rewind the tape to show you the importance of conviction when you own the stock of a company you generally believe in. i've liked apple stock for over
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a decade, recommending it ever since i bought my youngest daughter a second ipod, not because she lost her first but because she wanted one with a different color. we've been an apple family forever. it's a classic case of loving the product so much, you had to buy shares in the company. since then it's increased about 20 fold. i figured i had some street cred with my own it, don't trade it mantra. no. when apple stock got crushed after that quarter, now my conviction too was sorely tested. i was bombarded with messages from fund managers i trusted, from individuals, from people in the street who insisted that i had simply lost all perspective, drunk the kool-aid, and was acting as a shill for a once glorious now spent company. i argued that this darn company had the best balance sheet in the worth, more than 200 billion in cash, stocks that sold at nine times earnings. i set it at the service stream that all of us seem to be paying into, just accepting the costs, like icloud and apple music. on the conference call, cook
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told is the revenues -- this stream boasts higher gross margins. apple doesn't really have to did anything to get the money. it comes through the program so to speak. their retort? cramer, apple of value trap. get out ahead of the dud new phone. this is not the apple of yore. and of course you're a dope for sticking with it. then when the stock hit $93 on may 2nd, down about $20 from its high for the year, ceo tim cook came on this show. i put the concerns that everyone was bugging me with right to him. why, i asked him, why should anyone own the stock of apple? he said -- >> the most important thing is that customers love our products, and they're usiing an the satisfaction's never been higher. the loyalty rates have never been higher and that's the most
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important thing for the long term of apple. >> but the question, aren't apple's best days behind it? don't we have everything we ever need on our current phone? cook took me to task. >> i couldn't disagree more. >> okay. >> here's what i see. we're in some incredible markets. the smartphone market, eventually everyone in the world will have a smartphone. penetration today is in the 40s. long way to go. emerging markets like india, the lt penetration is zero. we've got great innovation in the pipeline from new iphones that will incent you and other people that have iphones today to upgrade to new iphones. >> i will need something else? >> you will need something else. >> i can't think of anything else that i need. >> but we're going to give you things that you can't live without that you just don't know that you need today. >> okay. that's what i want. >> that has always been the objective of apple is to do things that really enrich
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people's lives, that you look back on and you wonder, how did i live without this? >> how about carl icahn's fear of chinese weakness? isn't that a reason to sell as it was for him? >> i am -- i could not be more optimistic about china. i think the long-term thesis is intact. there has never been anything like it in the history of the world, and i'm still as optimistic as i've ever been. >> what else could they do a ton of business? how about in india? >> this is another huge one. >> okay. >> india will be the most populace country in the world in 2022. india today has about 50% of their population at 25 years of age or younger. it's a very young country. people really want smartphones there. >> look, i could play the whole darn interview, but the sum total of it was that this interview was all i needed to
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strengthen my resolve. strengthen my resolve that you should own apple, not trade it. soon after the stock dropped a couple bucks. during that period i was subjected to endless scolding about my refusal to admit the appearance was a desperate gambit by tim cook to push up his own stock. my conviction had been bolstered not by a desperate gambit, by an honest series of answers from an executive i very much admire. then the stock stopped going down. that alleged desperate gambit, it was the bottom. since then the stock has rallied 22 points. 22 points. we now know that apple had indeed thought of something else to make us want the new iphone. faster speed, more storage, things that make my iphone 5 i held up in that interview look like something from the flintstones. cell phone dinosaur. i bought mine. i'm just waiting for it just like you. samsung has phones that catch on fire while you're charging them,
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fast phone versus fire phone. samsung, very suboptimal situation. look, i'm not saying that apple stock is going to roar back to the 140s as predicted on off the charts last week when the stock looked like it was going to roll over to the low hundreds. nice call there. in fact, feel free to sell apple tomorrow. go ahead. take the huge 22-point game. tim cook came right here on this show to calmly remind you of something you perhaps didn't needry minding. apple makes the best products in the world, although admittedly when your competitors and interest dental arsonists, it's easy to compare. as long as the financials are as long as they are, as long as the stock remains -- most important, as long as the products are the best on earth and we can't live without them, my philosophy on apple remains the same. don't trade it. own it. carol in south carolina. carol. >> caller: hi, jim. how are you? >> i'm good. how about you? >> caller: i'm great. i'd like to get your take on
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twitter. seems like they've got a lot going on, and this is a very controversial stock right now. is this going to be like facebook when no one wanted it at 17? >> well, the problem there is that facebook ended up having great growth. if twitter has great growth, if they're able to reaccelerate nfl works, do something, then that stock will look back and do it, but i don't see it's in the cards. i think if the stock goes down three or four bucks, it gets bought by someone else and that's your best hope. dennis in michigan. >> caller: i thought your perspective on the upcoming split up of rr donly. >> i would own the stock, get a 6% yield until it happens. todd in illinois. >> caller: hi, jim. i'm looking at at&t. it seems a little pricey today. i think today it's at 40, 45. i just wondered if you had a price point when you might by at&t and if you think it might be a good buy still. >> i think at&t is a much better
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run than it used to be. i would by uy it. pull the trigger. nick in new jersey. nick. nick? is that nick? >> caller: yes. >> you're up. >> caller: hey, jim, how are you? >> i'm good. how about you, nick? >> caller: good, good. jim, i'm long on a groupon, and it had a very good second quarter. however, in last one month, it dropped 20%. i'm not sure. should i hold on, or should i -- >> yes. i've been saying that groupon has bottomed. i think that, nick, you should definitely hold on to it. i think there's another point there. it's a nice run. guys, i've said it a hundred times. i'll say it a hundred more if i have to. at least now you know why i'm repeating it. don't trade the stock of apple. own it. on "mad money," unlike gambling, investing doesn't have to be a roll of the dice.
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is it time to file a missing persons point for the u.s. consumer? i'm investigating what's behind the decline. and the cowboys put up a good fight last weekend, but there's a more powerful punch coming to the stadium this weekend. i'm talking to the team's owner to see what he has planned. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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if you believe a given industry has bottomed but then you wait around for definitive proof, i'm telling you right now you're going to miss out on some monster gains. just look at what happened with mccal, the chinese gambling haven. after years of growth, it suddenly went into free fall back in march of 2014.
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why? well, the government. the chinese government decided to crack down on corruption, and it brought an abrupt halt to all the soft bribery that had been going on, like junkets to mccal, something that had been incredibly lucrative for the region and the casinos that operate there. in the old days if you were an official in the chinese communist party, getting flown down to mccal by rich people who want favors was pretty much a perc of the job. they don't call it a party for nothing. but once the corruption clamped down started along with the anti-vice campaign against things like expensive liquor, the casino stocks with mccal exposure got annihilated. from their peaks in 2014 to the lows at the the beginning of the year, las vegas hands lost a staggering 60% of its value. mgm resource lost 43%, and wynn resorts plummeted by nearly 80%. notice how mgm performed better. however, earlier this year, the declines in mccal started slowing and they slowed
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drastically, to the point where their numbers were merely flat in february. since then these mccal ca stee know stocks have been roaring back. wynn has more than doubled from its lows earlier this year. if you were waiting around fr a green light telling you it was safe to buy, you passed up on some enormous gains. mccal has not only bottomed it might be making a real turn for the better. in august, mccal's gross gaming revenue increased by 1.1%. this is the first time they're been any growth in mccal gaming since may of 2014. in over two years, month after month after month, all it was go down. at least until now. the news lit a fire under the casino stocks like wib resorts, las vegas sands, the two with the most exposure. look, i like these companies, especially wynn. but at this point, i think we've really got to ask ourselves in the stocks already reflect a
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turn in the mccal gambling market or if they possibly got more room to run. personally i think the easy money has already been made because the stock market is basically a prediction machine that forecasts what's going to happen roughly six months in the future, and it predicted this pickup in mccal. that's why i started telling you to buy wynn resorts at the end of the february. even i wasn't early enough. it was at 82 then. now it's at 108. if you listened, you've up nearly 32%. still, if the numbers keep getting better, then wynn, las vegas sands, their stocks are going to continue to rally. let's be clear. the ideal time to buy these stocks was earlier this year. before the mccal gaming numbers actually turned positive, we know that because steve wynn himself, the phenomenal ceo of wynn resorts was making some incredibly aggressive insider buys in december and january. in fact, if you're looking for a singular moment that called the bottom of mccal, it wasn't the recent pick up in the august
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numbers. it was on january 19th when steve wynn disclosed he had bought more than a million shares of his own stock for an average price of $63.61 in a series of purchases in the open market, made from december 4th through december 8th. if that isn't real, i don't know what is. now, if you still weren't clear on the idea that his stock had gotten way too cheap, wynn came back and made another series of large-scale insider buys, which he disclosed on january 2nd. he picked up more than a half million additional shares at prices between $53 and $59, in multiple transactions. he told you to buy along with him. that was the green light to start buying the mccal gambling stocks even as most investors were fleeing these stocks en masse. he bought at the bottom. he knew it couldn't get any worse. you got to listen to his conference calls. mccal's gaming revenue declined by more than 34% in 2015, so it's easy to understand why people were terrified to buy wynn or las vegas since both
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companies were coming off a -- but as 2016 started, we began to get some encouraging numbers. in january, total mccal casino revenues were down 21.4%. that's when steve wynn bought. by the time the february numbers came out, though, it was clear something had changed dramatically because in february, mccal casino revenues were down just 0.1%. that's basically flat year-over-year. some backsliding in march, down 16%. next few months, down the high single digits. then down just 4.5 in july, which finally brings us to august, where these numbers increased by 1.1% year-over-year. for anyone who had any doubts, this is the proof they needed. honestly, think about it. you would have been much better off buying when there was no proof, except for the most piece of evidence, steve wynn's insider buying. or just a tiny bit of proof in those improved february numbers. why don't we start with lvs? after experiencing a 20% revenue
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decline last year thanks to the slow down caused by chinese's anti-corruption campaign, las vegas sands saw its revenues decline by just 9.8% in the first quarter and 9.3% in the last quarter. their earnings declines have been shrinking. we basically saw the same trends with wynn. only the swings are more extreme because wynn has more exposure to the vip gam ling market, which is basically the target of the chinese anti-corruption campaign. after a 25% revenue decline last year, wynn's revenue fell by just 8.8% in the first quarter. then in the second quarter, it 'twas up 1.7%. earnings, got killed last year. they made half of what they did in 2014. in the first half of 2016, wynn already experienced a dramatic rebound with its earnings per share up 55% year-over-year. one more very important thing. both las vegas sands and wynn resorts have opened new casinos
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in mccal just as the mccal gambling market started coming back to life. this past tuesday, lvs opened the parisian mccall. it's a 3,000 room hotel and casino. meanwhile, on august 22nd, wynn opened the 1,700 room wynn palace on the ca tie strip. that's mccal's new tourist hub. at this point, it's unclear how much these new casinos are going to can balancize their existing ones, but these openings were very well timed. wynn is more focused on appealing to high rollers. i mention this because the 87-year-old billionaire who owns galaxy entertainment, the largesays this is too early to call this a recovery. las vegas sands is the best way to trade mccall. on the other hand, though, wynn is currently generating better numbers. i per few to take my cue from them. wynn is cheaper. las vegas sands is 24 times.
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to be sure, i don't want to leave out mgm resorts. we like this company very much. while mgm has less mccall exposure, the stock would be well worth buying here. after losing money for years, mgm swung to a profit in 2015. they could continue to do well as the company is reorganizing, selling off assets in vegas. look, again, if you want to invest in mccal, lvs or wynn. let me give you the bottom line. i did this piece tonight because you often ask me if it's too late to buy wynn, and i am telling you i think the low-hanging fruit has already been picked here. but if like me you believe that mccal is ready to bounce back, then both stocks will have some room to run. but i would wait to buy them on a pull-back because stocks are all kind of the hoopla of these new casinos opening. vegas sands may be the safer place because of the mass market. but if you like games with long odds and higher payoffs, then steve wynn's wynn casino absolutely is the way to go since they'll make a fortune if rich vip gamblers start coming
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back to mccal. sales at u.s. retailers fell for the first time in five months. how does it bode for an interest rate hike and your portfolio? then the dallas cowboys took the top spot in forbes annual list of world's most valuable sports franchises for the tenth consecutive year. tonight i'm talking to cowboys owner jerry jones, and i'm an eagles fan. amazon is a consumer's dreams. thousands of options, easy searches, but is the story the same for sellers on am zob? i'm talking with one company trying to take the stress out of selling on the online behemoth. i suggest you stick with cramer.
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off the rails. we got a staggering figure today from the commerce point, a 0.3% decline in sales from the previous month in the first retail sales drop in five months. people, this is just a plain bad number. well below what anyone was looking for, and it begs for analysis, especially given cheap gasoline, close to the lowest jobless claims this morning. let me take a stab at it. it's gotten a heck of a lot easier and cheaper to stay at home. you can really save money eating in because of the incredible low cost of food, which has come down due to lower commodity prices and intense supermarket competition. it is so low that outfits like cracker barrel old country stores, a nationwide chain, cited it as a reason for a dramatic cut in its outlook that it gave you on yesterday's somewhat disaster conference call. you also order away from amazon.
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the numbers aren't captured in this company, growing by leaps and bounds really does distort any index that you have. spending patterns have changed. millennials are spending on experience. we hear that all the times from the companies we talk to. they go out, they take pictures of experiences and send them to friends via social media. you know, facebook, instagram. sure, they are going someplace, but i believe many of the places they go to simply aren't being picked up by these aggregate features, nor more than i believe that the gigantic apple spend will be picked up by the september numbers. millennials also like to stay home and play video games. and binge watching television series that are usually superior to movies these days. there seems to be still one more wave of web inspired frugality. 100 million shoppers go through walmart each week, and that place is drawing them from more expensive stores. there's also this sharing economy, and that may not be reflected. staying at airbnb won't be
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recorded like a hotel spend. it's a more difficult retail environment to track, i believe. oh, and so many have to save more money because of rising cost of health care insurance and deductibles that are higher. finally, housing demand is still booming and that's not captured either. we heard that from the ceo of toll brothers just last night on "mad money." >> jim, we announced three weeks ago, three weeks into our new quarter, that our deposits, which is an indicator of what's coming because it's when somebody put az check down on a lot, were up 23% for these three weeks. we are now three weeks further in and up 25%. >> that's great news. >> we're rolling. >> it was great news, but people don't like the housing stocks. anyway, now, if you were spending money buying a house, you may not have enough left over to do anything but try to furnish it or fix it up. hence the retailers that are doing really well, home depot first and then lowes. it could be any or all of these. here's my bottom line. when you talk to business people as i do, i have to tell you, you
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know what they are? they're baffled by this decline themselves. some of them are going so far as to talk about a national malaise inspired by the presidential race. i haven't heard that since the jimmy carter days. the candidates' daily blasting of the state of things is a little counter to the desire to spend. no matter what, demand is not as strong as stocks need to stay up in the air if the fed hikes rates. then again, looking at this retail sales number, you have to ask why would they bother to raise rates? adrian in texas, adrian. >> caller: hi, jim. you are my husband's guru, may he rest in peace. hey, jim, more and more brick and mortar stores are accepting paypal. in this slouchy market, paypal is finally moving up. what gives, and remember the alamo. >> oh, absolutely. and, you know, your late husband, i still -- you know, i love it when i hear that this show meant a lot to people. i have to tell you that paypal has been an okay stock for our
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travel trust. we are telling people when it got to the last quarter, you got to sell it before the quarter has reported, we believe. we still own some. we tried to sell the rest. it's such a competitive market out there and it's at $40. it's had a very big move, so i'm not going to bless it for new capital right here unless it goes back to 34, 35 range. bobby in new york. bobby. >> caller: all right, jim. big fan. long-time viewer. my stock is michael kors. >> i got to tell you, brob by, the handbag business is not a good business. it's just not a good -- i'm not going to encourage that. it's just a -- there's so much other better places to buy including pvh, manny cha rico, shirts, ties, tommy hilfiger, calvin klein. that's better. where in the world did the u.s. consumer go? the reason for its decline are plentyiful, but one fact remains. it's not a pretty picture of demand when you have the federal reserve with an itchy trigger finger. there's much more "mad money" ahead. dallas cowboys owner jerry jones
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paid a meager $150 million for his team. it now brings in 700 million in revenues and is worth a ton of moisture. then amazon is at the center of retail but it's more than just one store. it's made up of 3 million marketplace sellers. i'm talk to the team that's figuring out how to game it and harness the strengths. and the lightning round. so stick with cramer. at boll
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deep in the heart of text, jerry jones built an empire. on any given sunday, it's america's game. is the business of america's team still strong? >> now that the nfl season has started, it's worth remembering football is not just the most popular sport in america, it's also a business. that business can be incredibly lucrative. tonight i am thrilled to have a chance to speak with jerry jones, the owner of the dallas cowboys, literally the most valuable franchise in football or any sport for that matter. the team is valued at more than $4.2 billion. cowboys aren't at home this weekend but a big matchup at at&t stadium. for only the third time ever, it will lost a boxing match.
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mr. jones, welcome to "mad money." >> great to be on. this is an exciting time. we're sitting here. they're building the ring, adding additional seats. we've got fighters on the card all over us here. champions in the past, champions now. it's an exciting time. >> let's talk about the incredible value of the dallas cowboys as a franchise, and i just want our viewers to get from you why a town, which is not the biggest town in america -- the new york giants are worth less than your team. chicago bears worth less than your team. how is it possible that your team continues to go up in value? >> well, first of all, those values -- you know, i would trade those values for some more first downs or some more touchdowns. i may never -- would never see that value. but certainly we do know that
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market is huge. you've got a great, great legacy of football in this state, in this area. and great-grandmothers remember stories of their sons or their fathers telling them about two a day. so that legacy here, this is football country, number one. >> okay. >> number two, this is a tremendously economic booming area. i bought the cowboys because i just wanted to be associated with sports and football, and i didn't buy them for money. i fortunately got a little money together. i gave it all up to get to be a part of football. and so i didn't look at it financially, but had i, had i looked at the potential growth, had i known that at that time we were going to go into 15 or 20 years of one of the greatest economic expansions this country's ever known, i might have felt a little better.
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had we been having this interview when i bought the team and i had been sitting here holding a glass of water, i would have been shaking so bad, i couldn't have held the water. >> jerry, you mentioned an interesting thing, which you said to be affiliated with the nfl, be affiliated with the team. there's a company, twitter, and i know you follow all sorts of business. it's not really doing that well. do you think being affiliated with the nfl for tonight's game is going to matter to twitter? >> well, i think so. every time that i've entered the world of affinity or interest regarding the nfl, i've underestimated it. i didn't see just how much interest or how much affinity is there. i had a great tv executive named dan burke tell me in 1989 -- he said, i could hire everybody in hollywood and couldn't come up with all the soap operas that go
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on during the season and off the season, on the field, off the field, as you can in the nfl. it's a soap opera every day. that creates a lot of interest. that creates a -- if you will, it becomes relevant. and i think that's what it's about. now, i love the game, and i love the x's and o's, but it's about culture. it's more than x's and o's. >> look, i'm an old sports writer. you know i'm an eagles season ticket holder, but most importantly, i play fantasy. all of our guys play fantasy. we need help from you. when we lose on sunday, we are just at the depths of despair. how do you get over a loss? how do you recover from a loss? >> well, here in dallas, that muffled sound you hear in new york is me screaming in that pillow. and by the way, i'm up on dallas' tallest building, maybe thinking about it. so i don't get over it.
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>> all right. >> it makes me sick. >> we sat here in our draft, and zeke went very high. do you think about -- is it like that in real world? like when you draft zeke, is it like us getting zeke in the fantasy world? >> well, i'd say this. you may know as much about zeke as i do in your fantasy world as when we draft him. and i say that tongue in cheek. but the facts are when you're drafting, looking down in the soul, looking in the heart, looking in what makes them a potential champion, now, that's hard to do. that's like walking in a graduate school, walking in a business school, and picking out your millionaires of the future. you can't figure out what's inside. that has to come. >> you at times have been at odds with the nfl. your attitude is one of, i think an evermay man, frankly.
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you're wearing a suit but i don't regard you as a suit in the nfl. you've got your own views. how have you been able to maintain that without feeling like, i got to calm down. i got to be one of the owners and know more than that? >> well, first of all, i got in the nfl because i love the sport. i love football. and because people like bill ford were the gold standard for me. just to hang with those guys. i really -- i've said this lately a lot. i was a walk-on when i got in the nfl. the nfl has lifted me to a level that i would have never gone on my own. and so it kind of gave you incentive to be more than you could be. and the nfl has really been that. and every step of the way, i just really can't believe that it's been 27 years of the kind of life of being involved in competition, sport.
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i thought i was leaving the business world. i really did. i thought i'd get cabin fever, where the real heroics are, where the jobs are created or where people really go for it. i never dreamed i would be so alive and well in the nfl as well. >> let me just ask you one last question. tell us about the big fight saturday night and what it means. is that your next big thing? >> well, first of all, canelo alvarez is a mexican hero. we have such a huge interest in our mexican hispanic fan base. it's huge for us. every time we touch boxing with our stadium, we create an affinity in our fans that follow vaqueros to dallas. on the other hand, i'm a big boxing fan, and i really believe that one of the great places to have a match, one of the great places to fight is not just in a
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smaller setting, but how about in front of 60,000, 70,000 people, with a collegiate atmosphere and have that going on? we can do it in this stadium because we drop a screen down that is 180 feet long, 70 feet tall, and when they're fighting, you can be sitting in the top of this stadium and see their baby blue eyes when they're getting it on. >> i love it. >> that's the way to watch a fight. >> all right. jerry, look, i want you to have good luck in the fight. i will wish you good luck against the skins because you're a good class owner and a good guy. i want to thank you so much for coming on "mad money." >> well, if that will cause them to be sweet to us, i'll take it. >> that's dallas cowboys owner, president, and manager jerry jones. i am an eagles fan. i can't help it. i like the guy. "mad money" is back after the break.
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how can good paying jobs disappear? it's what the national debt could do to our economy. if we don't solve our debt problem 19 trillion and growing money for programs like education will shrink. in just 8 years, interest on the debt will be our third largest federal program. bad news for small businesses. the good news? there's still time for a solution. ask the candidates for a plan to secure our future. experience the thrill of the lexus is f sport. because the ultimate expression of power, is control. this is the pursuit of perfection. before the band separated over unknown creative differences. [ crash ] and reunited three decades later for a tour that sold out in three minutes. and your cisco hybrid cloud
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and if you do have an accident, our claims centers are available to assist you twenty-four seven. call for a free quote today. liberty stands with you™. liberty mutual insurance. with dand bold styling to to stay ahead of the curve... the lexus rx, rx hybrid and rx f sport. this is the rx, elevated. thiss the pursuit of perfection. >> announcer: lightning round is sponsored by td ameritrade. >> it is time! it is time for the lightning round! when you hear this sound -- [ buzzer ] -- the lightning round is over. are you ready, skee-daddy? it is time for the lightning
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round. david. >> caller: hey, jim. great job you did on the ground zero rising. >> thank you. >> hey, i'm interested in kendall morgan, kmi. >> it's coming back. i prefer enterprise and magellan midstream partners but i have to admit kmi can come back. oil, i think, can range 40, 50, 40, 50, when it goes down to the 40 level, i'm okay with it now. tim in florida. tim. >> caller: hey, jim. hello from the space coast. my stock is -- >> we like citigroup for my action alert charitable trust. david in ohio. david. >> caller: jim, how are you? got a question here for you. >> sure. >> caller: i bought fire eye.
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>> you want to hold it. fire has got new management. we want to see if they can turn it around. there was so much hot money in that thing. don't expect anything until you see two good quarters in a row. jay in texas. jay. >> caller: my question is on ser ep tuesday. >> a tough situation because there are articles yesterday from a guy from the fda. pieces of research today from the guy saying people in the fda are still against it. i think this thing all the way up at 30 is a little bit too dicey. ron in nevada. ron. >> caller: how are you doing, jim? >> i'm doing well, ron. how are you? >> caller: i'm good. i got a stock, ren. >> my god, resolute energy. this thing has gone from $100 million to $260 million in zero to 60. but i think you missed a lot of rent frankly. i think you've missed too much
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rent as a matter of fact. how about carl in alaska. carl. >> caller: hey, mr. cramer. booyah from the great state of alaska. >> done, yes. absolutely. >> caller: i'd like to know what your feelings on semiconductors on. >> yeah, they're making a merger. i think it's good. i got to tell you i do want to just mention -- i've been mentioning nxpi ask my favorite. how about the sky work solutions? let's go to jack in virginia. >> caller: james, i own both happen co-and z rock. they're both scheduled for a split next quarter. >> right. >> h i think the parts are both both. nor. thatting ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade.
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that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. yeah. well, we gotta hand it thto fedex. glasses. they'vhelped make our e-commerce so easy, and now we're getting all kinds of new customers. i know. can you believe we're getting orders from canada, ireland... this one's going to new zealand. new zealand? psst. ah, false alarm. hey! you guys are gonna scare away the deer! idiots... providing global access for small business. fedex.
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we spent a lot of time talking about how amazon is one of the best thing that's ever happened to you, to me. they got thousands of different sellers, price matches, easy searches, one click checkout with rapid shipping. we've liked the stock forever. what's it like if you're trying to sell something on amazon yourself? that's a very different story. selling on amazon is a complicated mess that's rife
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with commission which means you need to constantly manage pricing in order to have a shot or need someone to help you navigate the waters. that's where marketing comes in. patou is a privately held company. in other words, we're not going to be able to buy the stock, but it exists to make live easier for third party vendors. patoo's proprietary software helps cut out the noise. the art of selling things on amazon's online marketplace. it may not occur to you how to do it. these guys know. they'll help optimize your branding, which of your products you should sell, how you should list them. not only that but aggressively going after unauthorized sellers who might be undercutting you by selling sham merchandise. they actually order something that looks suspicious and get them removed. patoo has had tremendous success boosting customer sales since it was founded in 2014. in exchange they get a cut of sales or a fee from larger clients. do not take it from me. let's get a closer look from the
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co-founder and ceo of patoo. mr. dim on, welcome to "mad money." when i first heard of your company, i said, okay, patoo, what is that? but it has to do with amazon, doesn't it? >> correct. patoo that's a bird that's indigenous to the amazon, and it's a camouflage bird that is integral to the ecosystem but hides out in the background ask that's what we do for our clients. >> people don't know whether you've been hired or not, but that's not the point, right? >> correct. we want to make our brands shine. >> give me an example. i want to mention just so we can queue it up so to speak. people think you put a brand up and people click on it and buy it. but it's not that easy, right? even big companies need help. >> correct. if you think of the things that people love about amazon from a consumer perspective, 360 million items for sale on amazon. so a large selection. they also have convenience of prime shipping, which people love. and the reviews.
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and then pricing. so while those things are great for the consumer, as a manufacturer, trying to have your item stand out with 360 million options is harder. having the items be controlled from a reseller perspective is also harder. there's about 3 million marketplace resellers on the amazon marketplace. so managing them is a beast. >> okay. how do you know what's best? how do you know what algorithm it might trigger, how do you know what people want? >> part of it is experience. we spend hundreds of hours every day on the amazon platform, so we understand the reseller activity. we understand what's going activity, what's bad activity, what helps a brand and what detracts from a brand. >> i want to talk about this counterfeit issue because i had an interview with joe tsai with alibaba. he said it's a big issue for baba. how about amazon? what can you do for the customer? >> alibaba has a very big counterfeit issue. amazon, it's smaller, but has about two times the counterfeit
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issue that brick and mortar has. retrack resellers and see what is back activity. is the seller good? is the seller bad? is the item counterfeit? in the case where it's got a shelf life, is it expired? we know how to track that activity. when we track it, we go on the seller level and sometimes purchase items to make sure they're legitimate or not and report them to amazon. amazon is extremely supportive about getting resellers off, but they don't lead the efforts because they don't understand the product as much as -- >> i mean star wars, a lot of people try to knock off "star wars." you've got a "star wars" darth vader there. i mean you'd order someone who had it dramatically under the price, you'd order the stomaite? >> price is one indicator. if it's below a price point we feel to be reasonable to make a profit, we may order that item to see depending on the profile of that seller. >> what's the -- do you negotiate whether it's subscription or whether take a piece because this take a piece
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model, i love the take a piece model. are you feeling -- is that often the best way for people to go or trying to wing it? who wants to let you have a piece for sale? >> so when companies want to generate more sales on amazon, which is what we love to do, we want to take a piece of those sales. but some companies have a different objective, so they don't necessarily want to make more sales, but maybe they want to control the market and control the presence and chroonl the brand. in that case, we have a subscription model where we charge them a flat monthly fee. >> i didn't know there was anyone who did what you did. and a lot of people need it because there are so many problems that are sold. that's the co-founder and ceo of potoo. very exciting company. remember, still private. stick with cramer. even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better
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and use less fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here. [phoneuzzing] 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. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley hey, it's been crazy with school being back- so we're constantly going over our data limit. oh, well, now - all of our new plans come with no data overages.
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wow, no more overages? so that means... go on...say it... we'll finally be in control... and we're back... introducing new at&t plans with no data overage charges. it's not just a car... it's your daily retreat. go ahead, spoil yourself. the es and es hybrid. this is the pursuit of perfection. >> own apple. don't trade it. i always say there's a bull market somewhere. i promise to try and find it for you here on "mad money." i'm jim cramer, and i will see you tomorrow.
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>> narrator: in this episode of "american greed"... for nearly four years, a mysterious computer hacker quietly steals millions from the irs. >> i'm just kind of blown away. this guy really does know what he's doing. >> narrator: but when he gets too greedy planning his next score, federal agents realize he wants money at any cost. >> threats of shootings, innocent people being taken out, law enforcement being shot at. >> narrator: and later... murder, mobsters, and misdeeds. a self-styled wise guy, domenico "dom" rabuffo, is making investors offers they can't refuse. >> everybody was gonna win. you could make your dreams come true. >> narrator: but to pull off a $49 miio
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