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tv   Mad Money  CNBC  January 10, 2017 6:00pm-7:01pm EST

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still mad because she didn't go to georgetown. got to dance with the girl that you brought to the prom. barracuda. >> i'm melissa lee. see you back here tomorrow at 5:00. enjoy the original music. "mad money" starts right now.5: more "fast." "mad money" starts now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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. others are trying to make friends, i'm trying to make you money. call me, or tweet me @jimcramer. what if business is getting bet sn
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er? if something like a small business survey shows a remarkable return to optimism. the dow fell 32 points and the s&p ended flat. nasdaq climbed .36% to an all-time record high. every friday when i do my game plan, i try to find what good influence stocks and i like to highlight it for you. one of the things that hit my radar screen putting the plan together last week was something called the national federation of independent business survey of small business optimism. i was intrigued. i wonder what would happen if a real big jump in the survey and big boost given small businesses do most of the hiring in this country, but then i said forget it but i missed it. what chance could this survey move the needle. i was wrong. today this survey showed the greatest surge in optimism since 1980 and ushered in a tremendous
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change in thinking about the prospects of the economy and pulls 619 businesses, enough to be representative. show the jump of 7.4 up to 10 a.8. that's the highest since 2004. this survey is heavy he skewed toward the notion of expansion, the more of tim mptimism, the m hiring. i can't emphasize how important this is because right now there is a perception in the main stream media that there is nothing but trouble ahead with trump's nomination with his plans and style and maybe so. this survey says main street likes what is happening so far and you can extend the survey to mean more lending, more building and buying. maybe you need to go out and get a new ford f 150 and maybe take a loan or get a lease and do something you wouldn't have done before the election because of a funk. something that started in washington.
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for years we've heard the market liked gridlock. that whole mind set is being called into question. we favor gridlock because it keeps rates low and own pack tore and gamble with a real estate investment trust. however, it doesn't make you want to own the bank stocks because they need higher rates. it doesn't make you want to buy the medade males because they n more. you don't want to own an airline or railroad or industrial. they under perform. more business means more technology sales, too. to put it another way, if the economy builds a full head of steam, there is a whole different group of stocks to buy than what the stagnant economy, and that's exactly what is really driving this trump rally. now that's an awful lot to put on one survey. what happens, though, if there are other signs of strength. last night we saw producer price
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index in china much stronger than we expected which signals there is more economic activity. maybe president elect trump doesn't get his way instantly on a $500 billion infrastructure spending bill. in that case, it's a boost to see china might be stronger. that's why stocks like caterpillar, cummins, valet won today. we need those stocks to rally because they are part and parcel of the new bull market, the one that started after the election as opposed to the one before limited to household companies and f.a.n.g, facebook, amazon, netflix and google. china posted a 17% gain in december car sales. no wonder gm put out strong guidance today that caused its stock to jump 4%. they are big in china.
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gambling has started the year off strong igniting the stocks of kascasino companies. we know retail is a drag, thank you, amazon. i see no change in that. but this market was really surprised by the first good number out of chipotle mexican grill in ages. a number that showed a decline of same-store sales of 4.8%. that's remarkable given how negative the numbers are for ages with double digit declines becoming a staple. sure the earnings were below expectations but not what you should key on. when you're analyzing restaurants, you key on americans are putting the health care with the chain behind them. we studied the restaurant chains affected by health care concerns and the stocks don't regain luster until 18 months after the last incident. the last incident chipotle was 13 months ago. numbers weren't positive but
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chipotle is right on schedule which is why i'm fix sated. it's amazing how negative people are out there. i know it doesn't seem like them. when it broke, chipotle stock plunged 16 points. i found myself shouting that's the most stupid reaction imaginable. same store sales disappointed for ages. the earnings could be impacted from increased labor costs to something that struck my own in brooklyn, out of control avoc o avocado. we're getting killed on the guac. the numbers trickled down to a host of chains including popeyes louisiana kitchen. they didn't understand. it wasn't an earning's forecast slash. that's what matters. pa ne panera bread rallied, too. better than expected i can't pass up the sale of a couple
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unimportant divisions by the debt challenge vrx with $30 billion in debt, valent is viewed as a ticking time bomb. it doesn't do much to slim the debt down but it's a start. it makes you feel better about committing capital. don't dismiss this. valent is hanging over the market like a piano because its long history of raising prices, we can definitively say about valent. >> not a trump stock. >> and tremendous debt load that can cause havoc with the entire corporate bond market. it's something my friends in the bond market talk about all the time. maybe it's not so bad now. we can take tidbits and make a positive mosaic. you don't need to worry every minute about what will happen with upcoming hearings and the lower corporate taxes with deregulation. a better business environment
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can support higher earnings as gm showed with guidance. let me give you the bottom line. as much as we rally with the trump administration super probusiness agenda, the fact is not everything needs to be viewed through the prism of wars over cabinet appointments or jabs in the media about the failed upcoming presidency of donald j. trump. today is the day we simply said hmmm, maybe business is better. in the end that's what needs to happen to sustain the rally and maybe it's started to play a role. let's go to vince in pennsylvania, vince. >> caller: jimmy, it's vince from south philly giving you a boo-yah. >> ginos right back at you. how can i help? >> caller: xerox and conduent is cut. i was just curious what your outlook is on both companies going forward. >> conduent is interesting.
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i like xerox. i saw gold men saman sachs talk positive. it reminds me of the spin off that's the printers and p.c.s. just generates a lot of cash. i think they can do a lot with it. i think xerox is seven. i like the stock. let's go to dennis in michigan, dennis? >> caller: hi, jim, the industry is hit hard in particular brick and mortar. jcp is closing stores and it has been hit hard and in particular today down 2.5%. your thoughts on jcp to buy now. >> i'm not a department store fan. we've seen a critical level of departure from people going to the mall. macy's two years ago had the best christmas ever and look what happened. this is a secular downturn. it's not going to be any time turned around. i have no interest in owning a stock or recommending a stock at
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jc penny. burt? >> caller: hello, i'm a long-time listener, given the sector since the election day, what's your take on bny mel yry? >> it's a good bank. frankly, i think citi downgra d downgraded, i'll take the other side of the trade any day. $64 in book value and scrubbed clean would be a better buy. i like the growth there. let's go to tim in tennessee, tim? >> caller: jimbo, a great big boo-yah from kings port, tennessee. >> what's up? >> caller: with the progreat agenda, do you think the more people working than having disposable income, the automobile stocks are a good investment, particularly ford since they are keeping jobs in the u.s.? >> i want the leverage to china and ford has much less.
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ford did a special one tonight and i think general motors has much more cash flow. that said, i'm not a big fan of the autos themselves because of other challenges involving competition and yes, involving president elect trump who seems to have some definitive ideas how to reduce costs and make cars in america, and it may not work out that well for the different motor companies. i'm not a pal on the table buyer for autos. the independent business owner did matter. maybe business is better. today we saw what has to p haen for sustainable rally to take place, not a sugar rally which some people come on tv and talk about. on "mad" tonight, the markets had a remarkable boost but can it continue? let's go off the charts and find out. semi conductors are making a splash. i'm looking past market darling and focussing on a lesser known place and cutting edge medical science helped sciences stay healthy overall in 2016 and did rise nearly 20% even though it
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was the end of the year. could the new year inject life? let's sit down with the ceo and stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on cramer. have a question, tweet cramer, #madtweets. send an e-mail to jim at cnbc.com or give us a call at 1800-743-cnbc. miss something? head to mad money.cnbc.com. (bell chimes) ♪ nice work brother dominic. now we just need 500 more... translated into 35 languages, personalized oh and shared across the 7 continents.
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(other languages spoken) look abbot, i got it. it's a miracle. ♪ what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers)
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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
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as we keep hovering over dow 20,000, everyone is wondering if this market's incredible rally can continue. i've been trying to look at this from a lot of angles but as we head into earning's season i think we take a step back and look from an emotional perspective. that's why tonight we're going off the charts with the help of caroline brodin. she run as website and my colleague at real money.com to get a sense of how things stand with the dow jones industrial average and the s&p 500.
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burden has a track record that's terrific. she told us to stick with apple and 11 month s ago she went bullish after being clobbered. since then up 17%. does brodin believe the trump rally can continue? if you look at the tools most technicians use, you might think the chart is bullish and the dow and s&p are making higher highs and higher lows and both above the 200-day moving average and 50-day moving average. those are signs the averages have more room to run. she has her own sophisticated method to analyze the charts and is seeing something that makes her want to get more cautious, both about the dow and s&p. the issue, okay, regular viewers might remember that brodin called the queen for a reason. she looks at past swings in a given stock or an index both the size of the moves and the
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duration and then she filters them through the lens of the ratios. the numbers discovered is a medieval mathematician that repeats over and over again both in charts and nature. things like flowers, snail shells and stocks. brodin takes these past swings and multiplies by ratios, 38.2%, 50%, 61.8% and 100% to find key levels where a stock or an index might change its trajectory and not just price. what's unusual about the methodology she can do the same thing with the charts x axis with time finding crucial dates where the market is more likely to change the trajectory. it has brodin feeling a little troubled with both the dow and s&p. so let's take a look. this is a weekly chart of the dow jones industrials that she's done for us. she spotted a confluence of time
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cycles. when she sees them coming together at the same moment, these together here this is when she looks for a possible reversal of whatever the market is doing. when we've been going out dramatically, they suggest the rally will pull or turn into a pull back. she's not saying that the trump rally is definitely coming to an end but does think that at the very least, the market could approach an important decision point. when it comes to the dow industrial, brodin spotted eight fibonacci time cycles. perhaps not surprisingly, they coincide with trump's inauguration. by the hype, sale the news oriented traders might be looking to ring the register but not like brodin is making this up. methodology is about math. it's based on the dow's move from the low in october of 2014
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to the low in august of 2015, fit there through 161.8% ratio and you get january 20th as an important date. so the fact that there are all these time cycles coming and the dow is a tad ominous but even though this setup typically leads to reversal, about 65 to 70% of the tile nevertheless a cluster of timetables, it's entirely possible the dow could pick up speed next week but the balance or probability suggests the rally will take a breather or give up the ghost. not just the timing issue. at the same moment brodin points out the dow hit key fiboncci tables. she sees resistance right above 2,000. okay? and that's the level everybody is so excited about. running from 20,098 to 20,00019.
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this chart suggestions there is a descent chance it will run out of steam. brodin isn't trying to call top in the dow and not predicting a crash but when you put it together, she does think it makes sense to get more cautious, perhaps take profits. she wouldn't actually recommend shorting this market if we get a genuine sales signal, not unless you're a very nimble professional trader. i'm trying not to make that the focus of the piece. she believes the time window is a natural point for pull back and a broader up trend. healthy markets have pull backs. if brodin is right to be concerned if the dow does sell off, she recommends using the week to subdue buying. not like no go, it's maybe just some accumulating but is a natural place to start thinking the market will come down and it's not just the dow she's focused on. want you to take a gander at the weekly s&p 500. here brodin sees very similar
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set. looks the same. very similar cluster of fibonacci timetables so natural for the s&p to pull back at some point during the next couple weeks. last february brodin predicted the s&p could run to 2,023 before running in the fuel and we blew through 50 points ago and a powerful sealing of resistance from 2,285 up to 2,335. meaning up around 15 points from here things get difficult. here is the level in the s&p like the dow. here is the bottom line. the charts are interpreted and suggest it's time to get cautious in the broader stock market. not predicting a top but thinks if the trump rally is going to take a real breather or reverse, the next week and a half is when it would happen. my view, look, i say nobody ever got her taking profit going into what i am concerned about which is a pretty to much use earning
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season and the headlines hast we -- last week but i'm looking past focussing on the plays and space you may have missed and one medical device play that could help you fill your heart and portfolio. innovative implants help edwards life sciences move higher in 2017? i'm talking with the ceo after the presentation and with yesterday's deal, the power of pets couldn't be clearer in this market. tonight i'm taking it a step further and highlighting another player backing on the trend. so stick with cramer.
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[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.
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when it comes to semi
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conductors, watch texas instruments, broad come, micron and western digital. not just invidia. the now let's call it like we saw it repulsive obsession with invidia blinded people to the semis that can provide the fuel for the next leg higher and the consumer electronic show showcased a lot of technology to rely on semi companies, not just nvidia and finished the year on the downside of what i regard as a ridiculous mark up spike that probably should be investigated by the government as a way to enhance the performance of aggressive growth funds. yesterday we got a piece of research talked about texas instruments and how it's building into devices that matter. this incredibly bullish report put estimates at higher levels than peers. if you believe in the iphone 8
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super cycle morgan stanley predicted, you should be buying texas instruments, not nvidia. want to see the buzz about atonnous cars. i don't think about nvidia. think about electronics that can benefit just as much as a percentage of the overall sales when devices came on the show, i was reminded how positive the linear tech acquisition will be and what a combination. nvidia may be the king but historically best known for the substantial gaming division, you know, who else has a huge gaming business, amd. while close seconds shouldn't accord to a premium its stock deserves to trade higher. i think amd remains overlooked because people are concerned about the balance sheet but i believe this issue is solved by the brilliant last refinancing.
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when we keep hearing about these devices we watch programming on, we should think how 5 g will make wireless faster and better. a year ago, verizon's ceo told me to look out for 5 g. when a guy like that goes on record talking about fast technology and so easily identified with brodcom why do we endlessly have to buy nvidia? does anybody remember the better than expect the quarter from micron. boom and bust endlessly and will always be despite the diversification but what micro booms, it really booms and we're only in the second boom quarter still until the early innings and western digital that branched out into flash. remember flash is still tight but has a dominant position in the data center. one more area we endure nvidia. western digital sales at ten times earnings. it's absurd as the hard drive
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business is more commodity oriented. look, i'll not sm not saying i like nvidia. wrong. i adore the darn thing, which is why i've been recommending it for so long. nvidia machine learning and line of chips alone should allow it to trade at a premium to the group but it's foolish to ignore the changes at these other semi conductor companies and strong books of business. the nvidia umbrella lists space, especially those left behind almost forewarned and relatively cheap chip stocks. charles in massachusetts, charles? >> caller: hello, jim cramer. i called you last year. my stock is brooks automation. you preferred -- over the last 42 weeks flex is up 81% flex is up. where do we go from here? >> you had me on that. i still like flex, but brooks
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automation is better, indeed. i just did a lot of work on flex in the last few weeks and i feel very strongly about it. am i on the losing horse in a two-horse race maybe but flex has a big buy back and lower multiple. i'm not that worried. i'm sticking with this one but congratulations to charles who had the better mouse trap than i did. jim in ohio, jim? >> caller: thanks for taking my call, jim. >> of course. >> caller: i enjoy your show. first-time caller. >> all right. >> caller: my stock is frontier communications. ftr. i had it for five years because of the dividends, but it doesn't seem to move at all. your take on it, please. >> this is old fashioned telco. i'm always concerned what is going to happen is one day they may say you know what, that dividend is too big to pay so i'm going to have to say. >> don't buy. >> i wish you would witch to
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something more conservative whether att or my other favorite, which is verizon. let's take another jim, let's go to jim in virginia, jim? >> caller: hey, jim, i was wondering a few months back hpe was announced they were acquired by micro focus. after they rebrand to micro focus, do you see a big effect on the stock positively or negatively? >> this is is one part of hpe. i do think that hpe -- making some changes here after the bell. i like this. it's a charitable trust name. i like it because i really believe that in the end, meg whitman will do anything to bring out value and is going to succeed in doing so by a series of spinouts and mergers that will leave it. hpe a $23 stock can go maybe as high as $27. all right. here we go. the nvidia umbrella lifts all companies, companies left
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behind. companies forewarned and finally getting in the chip shape. all right. much more "mad money" ahead. could heart products keep hearts pumping? and it's known as the uber for pet owners and it could help you fetch some extra cash. i'm sitting down with private player rover.com to see how it's fairing and dollar for dollar i'm taking every question in the lightning round so stick with cramer. tomorrow, kick off the trading day with "squawk on the street," live from post nine at the nyse. >> no, it's value. >> did you make another reference to the giants? >> we going to let you live that down. >> starts at 9:00 a.m. ooerns. o. .
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easooerns. tooerns. ooerns. rnooer. . . what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water.
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for most of last year the medical devices ran high and ew was leading the way.
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this company is a maker of devices to combat heart disease including a non-ebvasive heart valve replacement. gave up the ghost after life sciences ran up to high of 120. in part that's because the company reported not so great quarter and in november we got less than stellar research data. over the last week, the six weeks edwards life sciences made a come back and rallied back up to 99 as of today thanks to a bullish investor day last month with the company laid out positive guidance for 2017 and yesterday the company painted a pretty darn compelling picture at the jp morgan health care conference. this is a case to take a step back. look at the long eer term track record. edwards ended 2016 up 20% and the stocks gave us a fabulous 176% gain since we lost spoke to the ceo in january of 2014. so was edwards ready to get the groove back? let's check in with mike. he's the chairman and ceo of
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edwards life science and a better sense of the company. welcome back to "mad money". >> thanks, jim. nice to be here. >> sir, your level of confidence is extraordinary. on the catheter aortic valve, you were talking about doubling this. how is this possible? >> we're only treating the sickest patients with this technology. the catheter has been improved to use on patients with severe aortic sen notice at risk to go through surgery or in large clinical trials, which we expect to be successful and a lot of momentum. we expect not only will this be more than a 5 billion-dollar opportunity by 20121 but beyond that much larger yet. there are so many patients that can benefit from this and it's an under diagnosed and under treated condition that's deadly. so you can see why the potential is large. >> let's go over what the trial
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would do, the partner three trial would do and most important for many viewers, the lead. these are really big markets that you'll be tackling. >> yeah, so let's talk about those trials. these are indication expansion trials, if you will. so now the trial that's going on today, the partner three trial is one that randomizes patients to hope heart surgery or chance catheter heart valves and a group of patients that's pretty healthy, healthy enough to go through a surgery. we expect it to say a chance catheter heart valve is as good if not better than surgery. this will open it up to a group of patients not available to in the past. this trial will go on beyond that. there is one called the unload trail and an early tavert trial that will begin this year and actually evaluate patients that have severe aortic stenosis is a
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deadly disease like cancer in the idea of watching it and waiting isn't a great idea because this disease is deadly and so the idea that we can actually prove that we ought to change the practice of medicine and something to look forward to doing and the procedure is such a winner. it's proven to be very safe. it's fast. quick recovery for the patients. really remarkable. >> i got to tell you one of the things in your presentation intrigued me is you have to do education. there are cardiologists that doesn't understand some of the things you're doing. why is that? it would seem if i'm a cardiologist, how can i not know what edwards is up to? >> many of the card ol' jeiolog that are interventionalests are aware of the treatment and expert at it. when you get into general cardiolo cardiology, it's a little smaller niche. if you're a general practitioner, it's smaller yet and you may not be familiar with how rapidly this technology has
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evolved. you may be thinking the only treatment for these patients is opening the chest and stopping the heart and that's one that has real influence on the decisions of patients and doctors. part of our job is to make sure we get up out there in the past we've helped the leading center share the message. in the future we'll be more forward leaning and find ways to reach right to patients, right to general practitioners and to general cardiologists. >> yeah, i think people still think you have to crack the chest cavity open. you've stopped that. one of the things i love about your presentation is you purposely say we do not believe in diversification. not many companies say that. tell us why you feel so strongly you put it at the top of your presentation. >> yeah, you know, it's key. it's who we are. it's core to the strategy. we don't believe necessarily bigger is better. we believe being better is better. in our field, we feel like if we were to focus on this disease, these structural diseases that
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we could have a big impact of life and the opportunity so so substantial to have big opportunities. we can get good at it. the track record speaks to itself. eight, nine years we've grown in double digits and when i look ahead i've probably never been more excited. >> one last question, i see the president elect as saying look, we got to scrap affordable care. i'm a big beleaver if you got something that saves lives and gets people out of the hospital faster, there isn't a single program that doesn't want it. should we be concerned about anything involving the affordable care act and edwards science? >> i don't necessarily think so. of course it will be replaced and sounds like and we don't know what it might be replaced with. the things that we're focused on is to make sure we have access.
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a medical device tax and beyond life saving technologies like edwards and the incredible thing from people at our industry and our own employees that we create every day, they need to see the light of day and they will regret that. >> we've liked this company for years and years. we'll be back after the break.
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it is time, it is time for the lightning round. sell, sell, buy, buy. are you ready? time for the lightning round. let's start with braydon in florida. braydon? call >> caller:, hi, jim, it's braydon and i'm 18 and looking to make my first stock trade. >> be able to make that, buy
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schlumberger and own it for a long time. arthur in california, arthur? >> caller: mr. cramer, thank you for advice over the last five years. >> thank you. >> caller: i checked my portfolio and i saw alcoa down 27% and arconi can down 27%. do i sell -- >> those are actually. there is an adjustment there that would indicate they are not down as much. aa is the company that's the commodity side. 18% is owned by arconic can sell that stock, which i think makes it so if you buy aa off of a commodity, you may end one a big slug. lets be careful. tom in oregon, tom? >> caller: i'm from central oregon, jim. >> what's going on? >> with a lot of chip company stocks doing well, guy work seems to be stuck in a channel. what's your opinion? >> sky works has the most -- the actual most property in an apple
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but the problem is is that therefore they are viewed as an apple play. the super cycle will come up later in the year and maybe people like sky works but i prefer you to be in broad come or alternatively yes, nviaia. quinton in pennsylvania. >> caller: boo-yah mr. cramer. >> boo-yah. >> caller: mr. cramer, i bought shares on camping world. should i keep it or sell snit. >> he's a pretty darn good businessman. let's go to mark in california, mark? >> caller: jim, thank you for taking my call. your show is terrific. i watch it all the time. >> thank you. >> caller: may question has to do with pharmaceutical -- >> i do not like the generics. i do not like them at all. the one thing i don't like about allergan is they have a big slug because they sold to them. i say stay away. let's go to christi in
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california. christi? >> caller: i'm wondering if you think this last tick up with weight watches -- >> one-trick pony. no need to own it. lou in pennsylvania. >> caller: jim, the large over supplier retail space in the united states and the impact of the internet on brick and mortar stores, what is your long-term read on kim co. >> they made a big case about loading up with companies that literally cannot beat amazon. that said i don't feel a need to own that stock. i will be in federal realty. there is no need to be in that group per se. how about tina in tennessee, tina? >> caller: jim, it is such a great pleasure for my husband tom and i to be able to thank you directly for the inspiration and enlightment you offer us home gamers. >> thank you, tina, i try hard. i appreciate it. how can i help?
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>> caller: we appreciate it. our stock is worthing ton industries down 23% from when we bought it at the end of the november. is it an opportunity to buy more. >> we don't care where a stock has come from but it's going to. i recommend new corp because they have the business best model. david in virginia, david? >> caller: big boo-yah to ya, jim. >> okay. >> caller: looking to add a small company to high long-term portfolio. i'm looking at to you -- 2 u. >> hey, jim, big hello from the beautiful valleys. how can i help? >> caller: i want to get your opinion on selling my u.s. -- >> no need to be in that one. that's a commodity. no edge. i understand why people tice
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wa -- might want to own it because of housing. let's go home depot. that's the conclusion of the lightning round. the lightning round is sponsored by t.d. americatrade. . well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade. (bell chimes) ♪ nice work brother dominic. now we just need 500 more... translated into 35 languages, personalized oh and shared across the 7 continents. (other languages spoken)
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look abbot, i got it. it's a miracle. ♪ and they're absolutely right. they say that it's hot... when really, it's scorching. and while some may say the desert is desolate... we prefer secluded.
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what is the desert? it's absolutely what you need right now. absolutely scottsdale.
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you know how i talk about the humanization of pets, veterinary centers of america of wolf by mars. y as we treat our cat asks dogs like people, this story becomes bigger than pet food and pet health care. that's why tonight we're going off the tape with rover. there is a privately held startup that's been around for a bit that's become the nation's largest network of pet sitters and dog walkers like the uber. scroll through the app to find a near by sitter or walker and book the service and drop off your animal. even though rover has a network of 65,000 sitters, they have a very selective vetting process. not old days nobody had a problem keeping a dog in a kennel and tieing them up in the backyard. these days people treat betters than children so they are willing to shell out for
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supervision. this is an intriguing story where the humanization of pets is in the economy. let's look at the ceo of rover.com, private company and find out more about the company and how it's changing the pet care landscape. welcome to "mad money." >> thanks for having me. >> in the time i mentioned i'm going to have you on, two groups of people hit me. one say i love you and i think it's the greatest service and the other is how do i get the number? it's obviously you struck a chord here. why is it so different? why is it so -- let's call it disruptive? >> well, right now in the u.s. most dog owners hate the idea of taking their dog to a kennel. 8% of dog owners take their dog to a kennel when they travel out of town. 92% of the market is searching for solutions. the most under utilized part of the entire pet industry. so we have 90% of the population that has the problem but doesn't like the available options until rover came along. >> i'm watching, i'm a kid in
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high school. i call a bunch of other kids and say look, i saw this rover.com. i'm going to set up rover.com, too. what are the berries? >> we only approve something like 20% of sitter applicants. there is a backyard check. our technology reviews their profiles. we have humans review profiles, references get submitted and ultimately we're a data businessment we look at the data trends to see what is doing a great job. >> what's the price differential in new york city where we are but cities, rent is expensive so kennel prices have been going up, right? >> yeah, in big cities, commercial real estate is expensive and prices of kennels get more expensive over time so rover is better. new york may be 45, $50 a night. but on average, u.s. wide is about $30 a night. >> now guys come under it nicely. i know one of the problems we have with the kennels, we have a good kent. i don't mean to knock them but we don't know what dogs are there and we don't know what's
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going to happen and they have cameras but this is much more on site, right? >> for overnight business people their dog to the sitter's house and see a sitter, their dog interact with the sitter if the sitter has a dog, they get to see that. photo updates, music video updates. see how the dog is doing. that sense aftof connection is important. >> we seen a huge deal for vca. gone into financing and comple e completed the series. it likes these but you're taking your time. it's 2011. you're not in a hurry. >> we're not in a hurry. we're really excited about the future opportunity. capping less than 1% of the market so there is a lot of growth and targeting 2018 for public offering. >> we had an outfit on last week that does basically the platform for a lot of gyms and salons. you have your own proprietary platform you use for rover.com.
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>> yes, we're a tech business. so for sitters we do everything from the photo sharing, the scheduling, the calendaring, we have 24/7 vet consultation and 24/7 support. it's a robust platform. >> you got this rover card system. i want you to tell people about that. i want their card. what does it mean? how do they get and it how do you profit? >> for daytime services which is dog walking, drop in visits, daycare, it turns out that host dog owners are really upset at the options because they aren't sure the service is being dell levered, the opposite of a hotel or restaurant. >> good point. >> what rover cards is, we invented them so a owner know what is is going on. did the dog go to the restroom? did it drink water? how far did it walk? which route did it take? when did the person enter and exit the home. so you know the service is being
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done as contracted. >> that's the next level, indeed. the ceo of rover.com. would the stock market love this one? stick with cramer. matters. every millised both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next.
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you know i been no fan of retail and i'm not changing my mind. we talked about jcpenney but uni believe in is lululemon. they came through a stellar presentation. they had the best numbers of any of the retailers in the fourth quarter. i continue to believe at $69 that stock makes sense. a lot of airlines were up today. on the 12th delta reports and i expect a pull back from this group on all these medical device companies featured out in san francisco. my favorite remains edwards life science which we saw. that's a better buy than many that have run today. like to say there is always a bull market somewhere. i promise to find it somewhere for you on "mad money." i'm jim cramer and i'll see you tomorrow. tilman fertitta: tonight,
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on "billion dollar buyer"... we took our entire life savings. our families are relying on us to make a living. tilman: they've risked their futures to follow their dreams. i don't want you guys to go out of business. now these entrepreneurs face their biggest challenge yet. a frozen cocktail company on the verge of melting down. i don't know if you're gonna be in business - in a couple of years. - we don't know for sure we're gonna be in business in a year. a furniture maker with a wobbly foundation. where's the rest of your team? - just me in the back here. - that is an alarm. if they can earn my business, their big bets will pay off. y'all should be proud that y'all created a good product. if they don't, they might just lose it all. at that number, it's still at a disappointing level.

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