tv Mad Money CNBC April 6, 2017 6:00pm-7:01pm EDT
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rate, today they had a great interview on the squawk son the street, you should go back and listen to what he said. >> that will get you done. >> i'm mellissa lee, thank you so much for watching. see you back here .. 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 you but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. >> it's the anti-amazon rally! yep. retail retailers, actual bricks and
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mortar retailers led the market today. even though it marked time awaiting tomorrow's job market. indeed rising 2.5%. despite the churning and fl flopping, the stocks of so many household retailers, kohl's, macy's, nordstrom, target,elle bra brands, bed, bath and beyond and costco all soared. while amazon's winning streak finally came to an end with the stock, up 20% for the year, down 11 bucks today. what happened? are people suddenly going back to the mall? are people saying, i want to try things on? today was a relief rally and numbers came down too far too fast and numbers weren't quite
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as bad as people had feared. definitely not good numbers but when you're as negative as most portfolio managers have been on retail it doesn't take much to get it raising. consider when smokey the bear suggesting a few burning embers left over from a campfire could burn down the whole forest. today, we had a forest fire in retail. in the last few weeks we had pretty horrendous retail stories out there including a bunch of bankruptcies and store closings. we got that slap up side the head last week from lululemon that caused the stock to drop more than 20%. a sale from you. we heard earlier this week from urban outfitters, if anything it's gotten worse and sears put out that holding letter sugge suggesting the company is at death's door. then, yesterday we got two really important data points that can often lead to a short
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squeeze, hedge fund managers betting against a group or particular stocks in that group find themselves scrambling to bring in their short positions or buy back the stocks declining pretty consistently. first, yesterday, kind of an odd piece, citigroup's across research department put out a huge sale recommendation. is retail the next big short? referencing the book and movie describing the giant bet against housing that made off so huge. city advised people said it made a ton of sense to short the retail retailers. it's very rigorous about the online grim reaper with a fantastic analysis headed death by a thousand clicks. here's the issue. if you read the piece, you would have bet against every single retailer especially city and target. it was a bricks and mortar
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retail retailers. and pushing this border tax meant to pay for the wall is a tariff over imports. and considering what they originate overseas, the border tax is more like national and aggressive sales tax, either paid for by the consumer or e eaten by the retailers. either way it's bad for the industry. yet paul ryan and analysts have been writing an obituary for retail and hedge funds wanted to cash in on it. gentleman placed their bets and waited for the undertaker. i guess you could say they waited for the smell of emba embalming fluid in the morning. it's the smell of victory. then the second quarter, the federal reserve, federal reserve sell stocks? yeah. yesterday they released their minutes for the month of february. in it they said they believe
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some stocks are too elevated. in other words, giving you the big short high sign and why the empire fell like king kong from the empire state building after those pesky planes hit paydirt. forget the fed is 0 for 2 -- baseball season -- 0 for 2 when it comes to stock market calls the last 21 years. 21 years ago, fed chairman alan greenspan whiffed when he said he felt the stock market which had been rallying for some time suffered from irrational exuberance. oh, no, what happened? the dow jones average plummeted from 6,521 to 6,328 in ten days that chunked millions of investors. greenspan was dead wrong. after that last pullback, 11,722. there were no dips until then.
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you had to buy that greenspan inspired dip with both hands. the feds second cut at the ball, janet yellin told us i quote, some sectors appear to be stretched especially social firms and biotelling sectors. tough to tell which social me a medias she didn't like. doesn't matter. every single one rallied for months on end after she said it. >> regen ron trended up and never looked back and incyte, ran for 131. lest you think i'm cherry picking, taking a bib biotech took a dip on her cell call and zoomed pretty much in a straight line. what can i say? to me it feels like an 0 for 3 situation that's developing. maybe the feds should think a
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little less about stocks and more about the economy. how about this retailer, bed, bath and beyond reported on its not so great quarter and the stock was sinking like a stone. it told a pretty compelling story and bed and bath continued to buy back stock having reduced it from 250 million to 150 million and have $5 billion of stock left in its repurchase and only a $5 billion company and stock rallied at 3.93%. then l brands behind victoria's secret while weak wasn't following up with a negative forecast. it went up 11% because the numbers weren't slashed. costco, the giant big box retailer actually reported 6% same-store sales increase. the street was looking for just three. boom, $3 game.
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macy's when the cfo met with a group of investors with the boss, discounters, department store, select stores in the mall all doing well. at least not bad. when you have all these retail obituaries written and you get actual proof of life, sellers stop surfacing. that's the kiss of death for short sellers. in order for them to profit they need sellers to come out of the woodwork. no buyers no profit. the inverse with short sellers. they need current investors to panic and spew stock all over the place not unlike reagan in the exorcist. if they don't get the projectile vomit of shares that crushes a stock the stores can't ring up a profit. why would you panic if there are no number cuts? why would you blast out of stock in fear when no one else needs
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to sell because there is no real reason to sell. >> house of pleasure. >> that's when the shorts really do panic. they can't take the pain of seeing these stocks go up when they think it might be the first day of a major move. they have to be thinking what happens if some analyst comes out tomorrow and calls a bottom and we're short or a good non-farm payroll tomorrow, the pain, it could be horrendous. they buy like crazy today. you had a retail rally on the backs of those too negative. does this mean we hit bottom in retail? i don't think so. i think we could see sellers return after a couple good days. lessons have been learned and pessimists got too pessimistic and the cadaver wasn't a cadaver at all. bottom line, don't get too negative on any particular group that has a pulse even if you think it's the walking dead. it has a tendency to blow up in
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your face like we saw in today's session. i'm starting with george in california. george! >> jim, thank you very much. because it's under valued and because it's moving into data analysis centers, intel is my best of breed. am i right? >> i like your call. people said he paid too much. they're wrong. he has to be in autonomous drive. if you're not in the connecting car you're nobody going nowhere. i think cre san niche made the right move and there's upside. john in pennsylvania. john. >> caller: jim, thanks for taking my call. >> of course. >> caller: i'm about five minutes from franklin mills your dad's old shtomping ground. >> my dad made me watch and said jimmie, you have to short this one. that's when i was a head fund manager. >> caller: funny. you spoke and i had johnson
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controls at the spin-off and i automatically got some shares and bought it on the way up. i sold it at 72 and peaked at 76. >> sweet! >> i got 10 or 12% gain on it. it's pretty volatile and back at 66 n$66 now. i want to know your current thoughts. >> i am a little concerned. i didn't like those auto numbers that came out the month of march. i think we will back away from that trade. look at it again. those order sales, wow, no go. how about bob in illinois. bob? . >> caller: hey, jim, i'm sorry. this is bob from chicago. what do you think about the dow dupont merger and do you think it happened too soon? >> i think it will be by october. i think they did a good job.
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and i think the world of dow chemical and i reiterated it continues to be a great buy. i prefer dow over dupont at these numbers. today, we saw the anti-amazon rally in all its glory at last. don't get too negative on any particular group. don't get too comfortable. sellers can always return. we're the anti-monkeys market. i'll explain why they can do little for your money. and do unlimited breadsticks mean profits? which could affect your appetite for growth? >> if you're seeing stars, you're not alone. grab a cold pacifica and make yourself company. i'll interview the ceo of the country behind some of the biggest wines and spirits and the biggest gainer. stick with cramer. >> announcer: don't miss a
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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. jobs, wages and the u.s. economy, how they're working the latest numbers. squawk action on the street. it's off to work we go! woman: on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. and each job created by the energy industry supports two others in the community. altogether, the industry supports over 9 million jobs nationwide. these are jobs that natural gas is helping make happen, all while reducing america's emissions.
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you'd think this market would have a little more affection for the monkeys. i'm talking about this song "i'm a believer" and those who believe keep winning and those who don't miss the big opportunities. worse, they get crushed for making the wrong bets. you remember the classic monkeys song written by neil diamond and nicky dolan, a great follower on twitter. i thought love was only true in fairyta fairytales. in short sellers, they don't believe in fairytales. they believe disappointment will halt all the bull's dreams. you have to bet against the fairytale!
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which brings me to panera bread. i was astounded they got a 15$10 million takeover bed considering many stocks were sold short. that's a staggering number of hedge funds expecting disappointment in the company's strategy. the facts told you it wasn't a fairytale. cracking the code, figured out how to have mobile pay and issues with going out or staying in and those technological breakthroughs that gave the company accelerating same-store sales. any who took a look at that including jap holdings saw those numbers and didn't have a trace of doubt in their mind. how great is neil young? i get it. restaurants have been terrible. they had broken away from the pack. the shorts got it wrong meaning it ain't ever coming back to earth and the trade has to be closed out at a huge loss.
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then there's consolation brands and we'll hear from them later in the show. constellation makes brands here. because the beer is imported, those who believe the border import tax that dreaded paul ryan thing will cut into their sales. that assuming ryan can get a major piece of legislation passed. you know what they say about assumpti assumptions. the constellation delivered stellar numbers unfortunate for the shorts, the fastest beer company and wine and spirits company and have you checked it out? it has humongous accelerating cash flow. i'm saying this not just because we can't keep the keystone brands in stock, i'm saying constellation probably wouldn't even hurt by a border tax.
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it wouldn't be noticed. nemps the shorts couldn't resist. this morning, they were run over by a beer truck. finally, there's tesla, right? today we got a fabulous piece of research out which has a sell on tesla stock and instrumental to the short case with the lack of belief in the company's plans. another attempt to justify the sell call and 1$165 price targe with the stock shy of 3$300, up 40% for the year, a piece called red pilling the test la bull case. this is a good piece. red pilling. what were you thinking? what was that movie? if you've seen the matrix, you know lawrence fishburne offers reeves a red pill or blue pill that lets him keep living in
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ignorant bliss. a great monologue. we think many investors have taken the blue pill while we remain stubbornly in the red pill camp. here's a guy that it has neil diamond must think it's made-up tv band. >> stubborn and wrong! sure he has the litany of negatives we all know and why 26% of tesla's stock is showed sort and billions lost daily. what you need to know is beauty is in the eye of the beholding buyer and they ain't buying what they're slinging. three stocks without the disappointment needed for them to make money. instead the shorts are losing fortu fortunes. for them, in the end? my predictioprediction, pain. they will side with neil diamond, nicky dolans and the morning key
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yesterday, when the few remaining restaurant plays that seem to be working, panera bread got a takeover bid. with them leaving the scene there aren't many investable e ones left. i want to help you see the winners and losers in casual dining place. consider garden restaurants, parent of olive garden and the parent of chilies. they rallied nicely trading almost in tandem. in december the stock rallied and then the paths diverged, darden marching 25% higher and blinker declining 14% over the
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same period. what sets this pair apart? how has darden managed to keep climbing while blinker failed like many other restaurants. to his spot winners from losers. on the surface they steam have a lot in common. blinker owns and operates or franchises 1600 restaurants across 31 countries under the chili's brand and magiano's little italy brand. darden, mostly olive garden and longhorn steakhouse, capital grill, bahama breeze, and others. for most of the second half of last year they shared similar trajectories. from the beginning of july to latest november blinker rallied in a huge move and darden give you a better 25% gain. then blinker fell off a cliff and darden, it just kept running. something changed.
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the market became increasingly concerned about the weakness in the restaurant space. blinker stock started getting slammed but darden stock became red hot. it's all about the stay at home theme i'm always mentioning to you. in a world you can get nearly anything delivered to your door as you sit on the couch and play video games or mess around on facebook it's hard to get people to sit down for a restaurant. and this company has been in sync with the rest of the industry. in mid-january the company missed 3.1%. even worse, management slashed their four year guidance across the board including a major cut to the same-store sales tax 1.52% to down 1.5 to 2%. some say it's because they got a
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lot of negative press on veterans day. chili's was having free food for vets and one veteran was questioned about his service and it was reported. management talked about what they're doing to offset the s t softness, focused on convenience and to-go business and giving consumers the value they crave but the stock keep des cleaning because we don't know if they can deliver. report is in three weeks. can't be super optimistic. darden very exciting. they reported a terrific quarter late last month in addition to a nice top and bottom line beat with stores up, not a great huge number but more than competit competitors. olive garden sales came in higher than the industry average, really big, while longhorn steakhouse outperformed and doing better than anybody
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else. on much to that, management raised their four years earnings guidance. darden made an acquisition picking up cheddar scratch kitchen. 165 locations and they paid 7$70 million. it will advance earnings by next year. the manager sounded very confident about march and their go-to business was stand out, up 17%. that's how you get a stock to hit 9% on the news. a new all time high yesterday, not many on that list. darden's turn has been years in the making. it started in 2014 when they sold off the red lobster business to a private equity firm. the old management team kept announcing new initiatives including the online platform now successful. at the time, the moves weren't paying off. so an activist fund starboard value got involved with a 300
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page presentation full of sca e scathing criticism where they outlined criticisms of the old management team as well as plans to boost earnings. in 2014 they were able to convince darden share hold others to give the entire board of drrsz the boot, very unusual replacing them with the ones they chose and replacine ining tis with the operating officer. starboard replaced darden's complacent old management team with a highly motivated new team. since then they have worked t e tirelessly for the shareholders and for years remodeling for customers and the new remodel gets a 10% boost in traffic. it's growing higher at a double digit clip. garden's main concept, olive
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garden, almost synonymous with bargain. think about endless breadsticks and salad. this is how i made it in life. wear cargo pants. to olive garden. neither company is particularly healthy food. darden is perceived as being healthier than chilies, unlimited salad bowl and chilly gives you baby back ribs. i'd rather have a smaller dividend and growing business than larger dividend and shri shrinking business. some contend darden has gotten too expensivexpensive. it's best in show. don't worry, it's not real wine what they tell me. this seems fair given the few restaurants grower. how many money managers will pay for a stock that might have declining revenues.
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bottom line, it's very tough to invest in the restaurant industry right now and why it's so important paying off for green stocks like darden rather than going bearing gan hunting for companies like blinker. blinker, letrink brinker, let's say they have a lot of work to do. let's go to dick in kansas. >> caller: long time neighbor. we're impressed with the product of a store service and it is very clean and considering b buying incremental shares in my position. i wonder what you think about it. >> i like the idea. it is doing the best in that particular category. remember, the supermarket business is very cutthroat right now. they're best in show.
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i'd buy some and keep going to it and make sure it still looks clean and good and doesn't get run down. sometimes that's the problem with supermarket chains. john! >> caller: hey, jim, on this rainy day, how we doing? >> we doing okay. how are you? >> caller: doing fine. i have a big umbrella. >> that's smart. that's good. i'm like a weatherman here. i of horse sense. what's up? >> caller: when i was online in 2012, i was buying stock like a drunken sailor, pgs. it has a great yield and went down a little bit. i bought more. i wonder if i should go back in it. >> i cannot recommend the stock on the showles? the ceo comes on the show and explains to me why it was so weak. i'd keep a position if i had it,
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don't invest more. paying for upper breed stocks is worth it and why you should stick with darden. constellation brands looked better than expected numbers. i will sit down with them to see if they can give you something to celebrate. remember, they sell corona. i'll be the judge when we play diversified. and tonight's edition of the "lightening round." stick with cramer. blrs blrs
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. ever since the election many investors have been terrified about an idea republican leaders keep talking about in washington so-called border tax on foreign imports. they want don't want it to hurt the deficit and high quality stocks like constellation brands, the long time favorite that has popular beers and a major purveyior of harder spirits, too. you missed the fact it is doing well. a blowout quarter off 1.$1.36 basis, strong guidance for the fullback year.
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the stock went up -- for the fiscal year. totally gettable if you didn't let the political headlines freak you out. that was the small picture. big picture, huge profits. let's talk to the yee. ni welcome back to "mad money." >> thanks, jim. nice to be here. >> i know the people started freaking out, thought there was weakness and you put it behind you. not a single analyst asked about it. when you have unbelievable results does it stop a lot of inquiries about the stock? >> it's hard to ignore this performance. the company continues to fire on all cylinders. it was an amazing year. net sales up 12%, eps up 24%.
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as you said, very strong guidance for next year. our first calendar year quarter under our belt. it is continues during our last fullback ye fiscal year. >> the border tax, no money mentioned. is that because it won't happen and doesn't matter, people will still drink bordello, corel la and pacifica. >> it's true. i didn't get a lot of questions on border tax. our view is we won't sit around and worry or base our decision on the probability of this oc r occurring. fundamentally, we have strate strategies in place if it does occur. if it doesn't occur, that will be great, too. we can go either way. i would say if you were reading the tea leaves right now, the best you can say is the probability of it occurring has
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dimini diminished. no one knows at this point what will happen with tax reform. >> absolutely. one thing incredible. i don't think people understand this. you talk about your growth particularly against your categories. you were the biggest provider of growth to this entire beer industry. >> that's true, really not the beer industry, total beverage alcohol. we contributed 25% of the entire growth in the entire beverage alcohol business in the united states. that is more growth than the three next competitors contributed to beverage alcohol growth in the u.s. we are by far the leader in growth in what is literally the most important category to retail food and beverage merchants in the united
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states. >> also, the cash flow here and the organic growth, beer, 13%. cash flow, 522 million to 7$789 million and you bought back and that weakness we had whether for the border tax or not you used to buy a ton of stock. >> as you said. we bought back a billion 1 of our own stock. average price of 1$151. here we sit today at the moment at 1$171. it's looking like a good decision, jim. >> it sure does. one of the things i came across and you and i have talked about this, pacifico might be the next big one. >> i think pacifico is the next big one. all of a sudden the growth has jumped up to high double digit growth, 20% in the fourth quarter. we don't really see any end to it. we introduced this 24 ounce can
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which has been a blowout sku. we really do think pacifica is going to come right on the heels of corona and ma ddello and especial as the most popular in the united states. it is about lining up high growth driver whether it's in wine, beer and spirits and why we acquired brands like naomi and high west in addition to the rest of our great portfolio with brands like robert ma dovevy and corona and others. as i said, i think the strategy is working extremely well. >> there was a moment you talked about hispanics, big consumers in america, of your beers, did not drink as much in the fourth quarter perhaps because of the election, but that market has
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really come roaring back. >> actually. that's not quite what i said. i said there was some indication hispanic consumer confidence was lower in the fourth quarter, which we believe. for a lot of the obvious reasons we believe that's the case. it does appear consumer confidence in general and hispanic consumer confidence is getting better and stronger as we move into the first and second quarter of 2017. >> also, i thought -- i wish they had asked more about conston noble and basicalllas w. >> they are fast growing categories. kraft beer conditions to be one of the best selling beverages in alcohol and tequila and rye and
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bourbon, the brown spirits, american whiskeys are also the strongest categories in the bench alcohol business. in the beverage alcohol business. we're incredibly well-positioned in these categories and able to take advantage of the growth in those categories. >> congratulations. you're the fastest growing company in this industry. you deserve it. thank you, sir. >> thank you. >> this one's not done going higher, stz.
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>> announcer: lightning round is sponsored by td ameritrade. it is time! it is time for the lightning round on cramer's "mad money." then the "lightening round" is over. are you ready? kathy in new york, kathy! >> caller: hi, jim. thank you for all you do for us list listeners. >> quite welcome. >> caller: bought trillo a little less than double what
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it's currently trading at. i'm thinking of adding to my position. >> you can't worry about what you bought it for. i think the stock is good and you're absolutely right in your plans. to sean in massachusetts. >> caller: booyah from boston, jim. >> let's shake it! >> caller: i'm calling about hub spot today. am i buying, selling or holding? >> i like that. there's a red hot stock not that long ago. i think you ought to go with it. craig in new york. craig! >> caller: j. c. craig from long island, thanks for take mig call. >> good to have you. >> caller: my stock has been heading south since it doubled. where are we at with therapy pu ticks. >> you should have taken half off.
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mike-wise wic wiceiss is still show. to john in florida. >> caller: booyah! how are you doing? >> i'm doing fine, partner, how about you? >> caller: good. i wanted to see what you think about suburban propane. >> i like suburb ban industries, not propane. i'm not a buyer, because the industry is awful! justin in maryland. >> caller: a big battle more booyah to you, sir, how are you? >> i'm coming back at you. what's going on? >> caller: good calling about the underarm retailer, under armour. >> it's a battleground stock. they make me uncomfortable. a point up and point down not enough to temperament me. patrick. >> caller: jim, how are you? >> good, how about you, man? >> caller: i can't complain at
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all. my question is on that simex stock with the controversy on the wall, what's your thoughts. >> in morgan stanley, i made me feel i should be out there recommending the stock. so i will say -- and has tthat' conclusion of the "lightening round"! 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.
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you has been anything like here on the east coast you know april showers, they bring may flowers, right? when it rains you need an umbrella. sunny you need flip-flops and when it snows, get a jacket. same way for the mix in your closet because you can't predict the weather. your portfolio knows through heat and storms and the market. tweet me and i will let you know if your portfolio is diversified enough or if you need to do shopping. up next we will take a tweet. carol at first time invest, presumably meaning she's a first time investor. alphabet, which is symbol. morgan chase, raytheon and zylum, something to do with water. she standard am i diversified. professor! can i just say this is perfect.
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>> wow. >> it's perfect. one of my absolute favorites, action alert. the letter is so miraculous. raytheon, defense stock. look what trump is doing, do you need a defense stock? defense, infrastructure, i don't know. hallelujah! am i diversified, that's the best one i've seen in 2017. to ron, the pressure is on ron. ron in colorado. ron. >> caller: how you doing, jim? booyah from beautiful colorado. >> you have the edge on me. >> apple, facebook, eog, sherman williams and j.t. morgan and i also have a bunch of chevron,
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too. >> chevron, i don't know if we can stick it in. we can. chevron might have to go. chevron, cvx. that makes it tough because i like yield here. we have tech. sherwin williams the deal will close and boom boom boom the numbers go up the paint company. and the jamie dimon stock. we have a bank and oil. i just downgraded apple. no, no. oh, can i just say that facebook social media and apple is a tech stock and get away with that? i am not going to tell someone to sell either one of those stocks. sorry. that's what i'm going to do. is it violating the rules? they are separate.
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paul in texas, paul. >> caller: booyah, jim. >> boo yah. >> caller: happy 12th to i and your staff. >> staff is amazing, make me look unbelievable. >> caller: i have bx black zone group, etd, enterprise product partners, mgp, mgm growth properties, vgr, vector group and vod, vodafone. am i diversified? >> you know what this is? this is a portfolio a thing of beauty. why is that? it has fabulous yield! this portfolio generates a great bit of income. private equity and good phone company, not my favorite, that's all right. a company that sells cigarettes. take the money and donate to an
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anti-smoking company. l, cigarette and phone, this is involving casinos and private equity. wow! i don't know, i should retire. i think everybody's got it straight. stick with cramer. level 2 data, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network
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the market is waiting for clarity on three things. what is the united states going to do about syria and north korea? how strong is the market? the numbers this morning were fantastic, adp number was very strong. i'm betting we get a strong number when the labor department reports. that will be good. if we continue to have these geopolitical issues there will always be sellers every time we go higher. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow!
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meaning you can catch up on all the moments you might have missed. you seriously can't tell the difference between a bird and a plane? like that time gwen and blake got a little too flirty. that's so inappropriate to talk about us hooking up. xfinity watchathon week ends april 9. the greatest collection of shows free with xfinity on demand. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ who set out to solve a problem she faced as a mom. ♪ hi. i'm ginelle. i am the owner of cool wazoo. i'm here seeking $65,000 in exchange for 25% equity in my company.
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