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tv   Mad Money  CNBC  April 20, 2017 6:00pm-7:01pm EDT

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>> i think you zell sell it. >> hockey night. when do you want to buy, hasbro, matel week. >> i'm melissa lee. see you back here tomorrow 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. sometimes, it all comes together and you get a 24 hour news cycle that is just plain
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bullish! like the one of we had today, 174 points. s&p 50012.67% and nasdaq at a new high. i tend not to like those figures as indicators, spoon-fed. that doesn't change the fact this is what investors really care about. however, there are a couple of joyous weeks every quarter their collective results control the allegation of trading, they sent the tapestry and mosaic and service the evidence how companies are doing and how their stocks are performing and how weak the economy might be.
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before i go to the micro that influenced company's action today. i need to give a nod to the winds that allowed this bullish fire to rage. they came in at a two month old and technically oversold. the financials one of the highest in the market. there's so much worry about the upcoming french election on sunday. third treasury, secretary steve mun nu shan predicted we get meaningful tax reform this year due to the looming debt ceiling stalemate. you consider the government had become a real drag on the market ever since speaker ryan's healthcare debacle, all of this was exceedingly helpful for the bulls. i will give you credit. today's rally was more about the micro. the good news parade began after the close of trading yesterday when american express reported a meaningfully better than
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expected quarter and made it clear there was market strength in march the end of the quarter, strength that continued into april. i found it extremely significant ammex sold good news around the world clouding mexico and japan, 17%, 15% and 11% growth. it was a precursor to the outstanding numbers just reported by visa after the close. the dow stock doing quite well. buried within the ammex conference call was an amazing statistics. 60% of new leads are from digital a lead to buy google's apparent alphabet and facebook and winners whether ads on the web. then csx. wholly cow, a railroad we felt was a ho-hum stock, you know. >> sell sell sell. >> they reported a quarter i still can't believe how good it was. i don't know how much of this
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beat can be attributed to the new ceo, hunter harrison, almost every business was up, including coal. coal gained 3%. some of that might be because of robust exports after coal producers in australia had storms nevertheless it's a welcome sign as were increases in minerals, chiefly aggregates meaning things are being built out and steel and an excellent quarrel report and new quarter this morning and autos. csx stock justifiably 5.2% on the news and we got news from two global giants, okay, that's all right, talking about unilever gave you 2.9% growth, and nestle, 2.3 and people looking for 2% growth. both companies gave you excellent color. homecare improving and latin america getting better. when was the last time you heard
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that and boosts the dividend by 12%. nestle told us while north america was subdued its sales accelerated in europe and asia and it had pricing power in latin america, 2 for 2 for the package goods kingpins. this morning we were greeted with a positive pre-announcement by footlocker. you know we like footlocker on this show reporting april sales were going double digits, outstanding! then we heard positive research about retail from the big bear, jpmorgan stalwart whose work i value immensely. we'll bring him on the show later tonight. i don't bring analysts on, this guy i do. the boss says retail is picking up and upgraded g.a.p. stores, a company he disliked for ages. we'll get the skinny later
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including retail stocks worth buying right now. i mentioned bonds were down and yields up today, and any bank reporting earnings. who came along with this session? keycorp, had amazing growth, good cost controls and a nice boost. i like the gains starting to flow with first niagara. i like key and we own it for my charitable trust. its performance has exceeded what i've been telling club members to expect. a bank stock. the weakness in bonds caused people to circle back to the finals and that goldman sachs quarter was truly and outlier. i'd say they could go higher. two that matter, snap-on tools and sherwin williams both put up numbers that had their stocks screaming. snap-on have seen it sliding of
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late made it up in one trip with organic growth. i will let its ceo tell you more about that stunning number in person making his appearance on the show. the number we got from sherwin williams confirmed what we believe in the housing trade, that people continue to invest in their homes. you don't invest in a lot of paint if your place is losing value. it spurred home depot and lowe's, two retailers on the verge of spring planting and gardening center and the research on stocks we're about to report. today's research insanely positive. so many people fretting about disney because of the weakness of espn. today, morgan stanley said you should buy the stock because of espn and a 40 page epistle called from drag to driver. they say espn is in better shape
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than people realize, great news for disney. christopher daily penned a piece this morning for city saying investors sentiment worsening in semis. we could not disagree more. business is good. time to back up the minivan. wow. daily made it clear the personal computer is better than expected. he pushed microcon and texas instruments and we couldn't agree more. the largest company on earth, apple, including research from stanley talking about how this quarter could be good as it paves the way for the iphone super cycle. i don't like that. i understand the sentiment. apple stock soared. there will be a couple losers any day. verizon. i think some of that is going to t-mobile. people didn't care for travelers. storms will be storms. a lot of storms just knocked
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down the business. ebay didn't grow as fast as it should have given all the money spent to improve the site and some say united rentals not getting better. today was a day for guys like me who like to put together the mosaic from individual companies and reach our own conclusions. those conclusions were almost uniformly bullish, not oil, not bonds, not trump gave you this beautiful one day rally. jay in new york, jay. >> caller: hello, dr. cramer, long time listener and value your opinion. what is your opinion on halliburt halliburton? >> halliburton, about to report. here's the problem. slumber will report tomorrow. not one to call bottom. they won't call bottom and if they did, halliburton would get
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hurt. i believe over the long term you want to own it. it's going back to 47 and you will get a better price then. steve, in my home state, new jersey. steve. >> caller: hi, jim how are you? >> fine. how are you? >> caller: i'm doing good. my question is about yahoo! market cap at $45.5 billion and $47 stock price. with the yahoo! sale of the core business only 60 days away, the fact they will be getting $4.5 billion for the core business, $43 billion they have in alibaba stock, $9 billion in yahoo! china stock and $7.5 billion in additional cash currently held, totally $64 billion versus the current market cap of $45.5 billion, which would be a stock price of $67 or difference over 40%, what is keeping the company stock from adjusting to the component value and should we back the truck up?
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>> noy don't back the truck up. it's a plan merger. you have great numbers you reeled off there. i don't know about the tax considerations. it is a holding company after all. if you want to hold it, that's fine. i'd like to find the next big one. sometimes it all comes together like today that people put together details about companies and reach their own conclusions. today, they come uniformly bullish. on "mad money" tonight, santa ana snap-on, maybe they've got it wrong. and who could be the biggest winner from the sherwin williams-valspar merger? it may shock you. >> something you don't know about, a rare appearance by matthew boss, an analyst. coming up. stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question?
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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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look at the stock of snap-on run. it is a maker of high end tooms for automotive shops and aviation, construction, military. company stumbled a bit last time it was reported. it had been give an hard time in
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recent months. this morning it delivered a truly incredible quarter up more than $9. it beat off a $2.36 basis higher than expected sales and organic quote that's huge. suddenly it seems to have its groove back. i didn't think it was lost but some people were saying stuff. and president trump went to their headquarters this week and the kind of company that should benefit if the president authorizes the construction plan or lower tax scheme. can the company my charitable trust owns. welcome to the chairman and ceo, welcome back to "mad money." >> great to be here. good to see you again. >> congratulations. what was this week like? >> i'm telling you, the first time a president has visited snap-on in 97 years in our history. you got to be pumped, i can't lie. >> why do you think you were
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chosen? >> i think he wanted to emphasize the essential nature of american manufacturing and also talk about the american worker. snap-on is about american manufacturing and what we sell off the trucks is made in the united states, shaped by american craftsmen into the hands of american professionals enabling them to do special critical tasks. >> where are your plants? >> all over the place. tennessee, elkmont, carolina. city of industry, california. >> this is an interesting quarter for you. i heard on your conference call, you said europe is a monster right now. >> monster. remember, i've been on the show with you and said france gives me a headache. our european hand tool business we make in europe we make a lot of those products in europe. we make in the markets where we
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sell has been up in sales for 14 straight quarters and profits, profitability, oi margin for 16 straight quarters. it's become a bellwether, a monster. >> you have new tools that have always helped. thermal imaging diagnostic has come on strong. why? >> it's a new tool. diagnostics has been rising in the auto-repair business. there are a lot more computers on cars. usually we measured the computer code in thousands and the car will tell you what's ailing it and if you have the right diagnostics you know how to fix it. it doesn't show you some detail. if it tells you it's a cylinder problem you can't tell which cylinder it is. we have a new tool called the thermal imager and you shoot it there and heats right up. sometimes it takes a half hour to drive to generate that sound. a mechanic these days can run it
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a minute or two, take our thermal imager and look at it and see the heat starting. very popular. >> if i don't take it and the other guy takes it, it's a competitive advantage. >> it sure is. they're booming in sales and diagnostics up tremendously in the quarter. what i told the president is one of the key things about snap-on, the success of manufacturing in america, our people generate customization in the midst of consistency. we have consistency. we keep him proving our processes and we have more and more customization. our skus keep expanding. because we have capable people train trained very very skilled we can manage that consistency. we were up in natural resources this morning, really heralded, 10% organically. part of the reason is last year we brought out for oil and gas
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687 new products just last year. for power generation, in that orb, we brought out 707. >> customization in the midst of consistency. >> at the same time, people have been saying, jim, your charbtable trust is buying it but -- >> it is stabilization. the delinquencies were down in the quarter. i would say stabilization. 1.6 last quarter and 1.64. >> and the great recession didn't matter. >> the great recession other losses went up 100 basis points. that's worth $15 million on this portfolio. last year alone we ate $23 million of bad news from currency and we still improved our profitability by 140 basis points. we shook off $23 million. 15 is not so much. >> last question, you were very colorful in this conference call, transformers and jack
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reacher? >> transformers and jack reacher. sometimes, we were talking about our tool storage and it has been booming. this quarter it was a little bit off. sometimes you have a product that makes money, that's good, jack reacher, make some money. on the other hand you bring out a great one that's a real hit and creates excitement in the marketplace. the technician says, i have to have that new box. that's transformers and hundreds of millions of dollars. >> you have a lot of transformers. >> i have to tell you, no one is more deserving than you, ceo of snap-on. it's up $9. it's just getting started. after the break. coming up, it's time for real talk on retail, a rare appearance from jp retail analyst, matthew boss as he breaks cramer to break down the always tricky shopping sector and two calls on retailers on the rebound. >> a real key point we know the
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u.s. is overstored but starting to take the correct steps. >> the market is closed. there's no excuse not to stick with cramer. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote.
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a little over a year ago we learned sherman williams was buying vas spar for 3.1 million dollars to become the largest company of paint and coatings. they get a 35% premium and sherwin williams gets to take out a competitor turnings the coatings industry into a duopoly along with ppg. unfortunately the industry is leery of acquisitions that cut down on competition why the federal trade commission has made it difficult for sherwin williams to get this deal done asking for larger and larger concessions. finally they announced a new plan to ease the worry of
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regulators. they told us they would sell valspar's north american industrial wood coatings business to exalta coating systems. exta, home gamers and they specialize in products that protect buildings and other infrastructure. it may seem like a minor transaction to you, transaction within a transaction. we love it when big companies are forced to hold a fire sale in order get a deal done because the smaller buyers in these situations tend to be huge huge winners even though no one is thinking about the middle. one example no one picked up on early on was constellation brands. a few years ago they bought the us rights to corona, medalo and pacifico the most popular beer in america, next to nothing.
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anheuser-busch was buying modello and they wouldn't give their blessing until they got rid of something substantial. what happened? if you paid attention? constellation stock rallied 539% since that transaction was announced. could axlta be benefitting from a similar dynamic. it's possible this company you never heard of might be the biggest winner from the sherwin williams-valspar merger? i like sherwin williams but they may get a big run and had a quarter high. i think the acquisition will be very positive for the paint business even with this coatings business a straightforward acquisition. sherwin williams and valspar are complementary businesses and it will help accelerate the growth worldwide, particularly in europe and asia and those numbers are coming on strong.
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even better the valspar deal is expected to be immediately positive and boost sherwin williams earnings. even though the company is paying a pretty large penny for valspar i feel it's worth every penny as long as they can get the fcc's approval. sherwin williams was being op misic how long it would take. originally they thought it would happen without divestitures, and it was supposed to close late march and then pushed out to june when they realized they needed to sell something in order to get a thumbs up from the regulators. last week they said they're selling valspar's north american woods coatings business for cash to make the fcc and others happy. like most companies forced to do
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this for mergers this was a total steal for axlta. they're paying only 1.8 times sales for the thing compared to the profit. it's one of the leading providers for coatings, cabinets and building products in north america. excellent research and development division. getting zenith, luster lack, grain tone. you don't know many of those probably unless you're a wood aficionado. it sure doesn't help house related products like these are doing pretty well right now. as ceo, charlie schaefer put it, this is an out standing opportunity for axlta to enter the market with portfolio customers and these brands have a long term customer base provide an excellent platform for growth in this important market end quote. what happens? a tree falls in the woods and the stock barely budged in the news. i think it's a mistake and
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opportunity. it always equals a good deal. they didn't want to sell the wood coatings, not one bit. they fought tooth and nail to keep it. it was either sell or let the merger die. beyond that, i think they're giving them an enormous discount. why am i confident about that. any investstyture, valspar would only get 105. i wouldn't be surprised if valspar is negotiating with one hand tied behind its back and how axta can make such a terrific deal. make no mistake they're getting it for a song. it's about nine times the division earnings before interest and taxes. much cheaper than other coatings deals i countdown find and tend
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to go to 13, 14, 15 times before ebitda. they should have paid closer to $700 million. an investor that big would have changed the terms of the deal. the sellers had every incentive to keep the price down. it's not only a for sale, a for sale with a low price. it will bump the earnings 6% this year and 7% next year, not huge. the best part of this acquisition can't be captureded by the numbers. it helps exalt and diversify away from the automobile space which seems to be slowing and helps the north american businesses related to housing doing well. they only get 30% of valspar's sales from the u.s. and 40% from canada. pricing is going up.
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speaking of consolidation it makes the major players more attractive. not just valspar. remember, there is one offer to get another company and if one gets past the regulators the whole company will have to get by the landscape. i know, you have to pay more for paint. you never want to pass up these for sale situations, especially when they happen in an industry already going strong. i think sherwin williams is a winner with the valspar. i think the biggest beneficiary turns out to be little axlta since they're getting it for a total complete bargain. what's not to like? to ian in kentucky. >> caller: what's going on skee-daddy? >> not a lot. what's shaking with you?
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>> caller: because of the holiday today i want to ask you two questions about scott's miracle-gro with the gradual decrease for state and federal relations for marijuana do you think their hawthorne division could beat out the regulatory division and do you think they could rival some of the alcohol giants. >> good question. i looked at hawthorne over and over again and get a billion dollar valuation. it depends on what's called the holiday season for home depot and lowe's. i use scott's miracle-gro so i know where i speak. they need the next seven weeks to be good. this is the diciest spot. i i would be a buyer. phil in florida. >> caller: thank you for taking my call. my question is about dow chemical and dupont, i own them
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both. should i keep them? >> we have a guy, i wish i could get him on the show. he is monster good. he will be in charge of putting them together and they will come up with three companies, all laser focused to make you a lot of money. not unlike what he did with tyco. i see multiple gains and why my charitable trust owns them and will own them through the acquisition. you should, too. >> who said owning stock is like watching paint dry. the sherwin williams-valspar brings exciting profits and axle. upgrading g.a.p. stores today and retail. a hedge fund says the ceo of buffalo wild wings is out to lunch. that's not the only company facing an activist approach.
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my calls on the crazy an nutty action. rapid fire and today's edition of the "lightening round." stick with cramer.
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on a terrific day for the averages, let's not forget there's one marriage part of the economy that has issues, brick and mortar retailers. you hear they're dying and no way to save them. perhaps that's too damning. an opportunity after months and months of underperformance. i wanted to talk to a guy who's been very negative. matthew boss from jpmorgan. you know that i don't usually have analysts on the show.
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i think the consensus might be wrong. mr. boss, welcome to "mad money." >> thanks for having me. >> we're at a critical moment here. everyone said it's bad to worse, bad to worse. you have a report this morning. you're saying that may be wrong. tell me about it. >> you're talking to probably the most negative guy over the past 18 months. >> without a doubt. >> what's interesting, you look at the first quarter, the second half of that quarter, march and april materially improved. look at a footlocker, download double digits in same-store sales in mid-february to high single and low double the remainder of the quarter. a key point we know the u.s. is overstore but we're starting to take the correct steps. over 4,000 store closures announced in the past 18 months. it's a big step in the right direction. i think this is still multi-year. the companies know what they're
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up against, they know about the brick and mortar against the e-commerce and we want convenience and value and innovation and where we like off pricers and dollar stores and we like the athletic sector. while we're maybe not at the absolute trough, i think there's real opportunity to own retail here. you need to be selective. >> you have been inspirational in a lot of my thinking, t.j. max, burlington, footlocker. what you're saying, there are winners, there are companies people should be open minded to. and ollie's,ski people about it, they don't know it. people didn't know what limited was didn't know what blockbuster was before it went under gaining 200,000%. there are winners.
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>> there are winners. you look at the off price sector. the world is coming to them. disruption is the friend of the off price sector. i think what is hurting some department stores, the value perception is complicated today and they're not the most convenience. convenience is amazon and e-commer e-commerce. it's value and convenience. tjx, i think business during this disruptive period continues to be strong. >> the stock doesn't go anywhere. >> you've had margin constraints. this is their toughest pair of the year, i think tj sets up well from here and i think burlington has the opportunity to double their margins and double their store count. we really like burlington, smaller cap name, 234 stores, we had them on the road last week, the ceo is talking about the best closeout environment in 35 years. >> things can double, they can
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triple. when retail first became regional and nationwide that's when you could spot them. satellite data points to 400 basis points in april. what does that mean? >> a real differentiation point i think jpmorgan brings to the table is their focus giving us the resources others don't have. orbital satellite data is the counting of cars, counting of foot traffic in and out of these stores unbiased data that gives us a differentiated point of view. i combine that with field work. i have a strong team of analysts in brick and mortar stores once a week. we look at this satellite data and combine that with our own store work and dig into our models and come up with our mosaic the sis. that satellite traffic has moved
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from positives to mid-ones. that's where we're seeing the capacity coming out. i think we're at the tip of the iceberg people starting to focus on that. you think about the market opportunity for long term survivors, think about nikes and foot lockers and off pricers, even the department stores. the department stores have been in decline and lost market share. the question is, i think if we have hit that peek these closures will continue but the real key is how many year-over-year. >> one last, you have been the most negative people tried to call bottom on g.a.p. stores and other people have thrown in the towel. you went the other way. >> on g.a.p. we're seeing old navy solidify, half the story. last quarter you saw old navy really outpace the retail sector. i think you will see those changes. you're seeing subtle changes at
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the core of g.a.p. not turning overnight. i think they have room on the margins, especially sgna. we have been negative on the g.a.p. and the stock has outperformed 50% the last 18 months and time to move to the side as we look forward to back to school and holiday where weather trends international is literally calling for a perfect back to school setup and nice strong start to holiday with a colder november. the g.a.p. stores is not a name i'd want on the short side heading into a setup like that. >> let's leave it like that. i don't have analysts on the show. some guys goo original non-derivative research. this is one of them. and with jpmorgan, with an incredible call i think. time to stop short and maybe time to start five. time for a break.
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40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks. young people are moving back in town. kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.
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they're coming back. when this guy got a flat tire in the middle of the night, so he got home safe. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance.
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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."
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that's where i take your calls rapid fire. then the "lightening round" is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." john. >> caller: hi. great show. >> thank you so much. >> you're welcome. >> caller: gnc recently made a move to the upside. >> it was one off. i will say don't buy, go for quality in retail. you have to hope for quality. to mel in ohio. mel. >> caller: hi, jim. thanks for your dedication to investors. what is your opinion on the high dividend telecom company, century link? >> centurylink made that acquisition and i think it's a good one and should help their cash flow. when i see an 8.4% yield that's actually a red flag for me. it could be. i just can't recommend something where that yield is so large
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that it seems difficult for anyone to pay that payout right now. i will say, no, don't buy. in michigan. >> caller: cramer, emin like em eminim. >> not publicly traded. what's up? >> ionis pharmaceuticals will take a lot of r&d costs out of the system. if i own this do you think wall street will reward it handsomely? >> no, i don't. i think people have it in for this stock. goldman has that sell on it and the stock can't seem to lyft. let's be conscious of that. to elaine in new york. >> caller: hi, thanks for the education. the stock is raytheon, that makes the creuise and missiles.
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>> i like raytheon and lockheed martin having such a big move ever. to harley in maryland. harley. >> caller: thanks for taking my call. i'd like your point of view on the growth prospectser for engineering firm, abb. >> it's a good infrastructure play, yields 3%, i do like the stock. it's long term and we don't have infrastructure yet although i like what gary cone said today on our network. to massachusetts. frank. >> caller: hey, jim, i'm wondering about twitter. >> i want to get twitter through this quarter. i do not believe it is a good quarter and do not believe they have the advertising eyeballs. >> that's the conclusion of the "lightening round"! >> announcer: the "lightening round" sponsored by t.d. ameritrade. you know that thinkorswim seamlessly syncs across all your devices, right?
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so much for the high tide of shareholder activism. with stock valuations stretched and fed raising rates, many commentators argued the age of activist investing where a hedge fund takes a position and gets loud with the need to replace management with a better team has come and has gone. the events of the last few weeks suggests activism is here to
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stay. there's this heated battle at buffalo wild wings where they have been raising issues about the performance of ceo, sally smith. mercado wants to fire smith. they issued a blistering letter where they accused her of listless management with no plan complete with the board's diminimus alignment with shareholders. here's what maguire had to say on "halftime report." >> this is a company that has reached a state of scale and complexity that has outstripped the capabilities of this chief executive. in order to get the company on the right path we need a management team more suited to the challenges of the company. >> that was some of the nicest things he said. you can understand his point, it has done nothing for the past four years. the dining is hits and misses. this company has lackluster results. given there are buyers for a
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dining change. we saw popeyes and panera breads and j.p. holdings. it could eventually produce results that break the pattern of underperformance. the stock jumped $9.25 or 6% on mer ck mercada challenge. then there's whole foods and the company is in play. kroger, the supermarket giant which needs market share gains to continue growing is a logical suitor. the stock of whole foods has done poorly although it was a star for ages and i could see why someone would advocate for change. the titanic struggle for control of the parent company that beat off alcoa and became a high-tech producer for aluminum chiefly used for aerospace and trucks and buildings.
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paul singer, his hedge fund, elliott management, the guy who orchestrated the breakup of alcoa and frequently guests of our show. elliott liked the split and thought he was doing a poor job at the fund and wanted to install their own people. i thought they would be back to challenge him as the stock has been a good bet since the split. my chartable trust. you can argue the stock has only taken off because of elliott's bind and i don't expect a good quarter. cleanfeld committed a major unforced letter and spent a letter on his own letter head to paul singer and allege singer has something to hide after a celebration in a big soccer match in berlin 11 years ago. he talks about colorful memories unforgettable about a doubt and the ability to become lastingly
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legendary. the ending was also quiz call. if i manage to find a native-american indian's feather headdress i will send this additional essential part of the memories. singing in the rain is indeed a wonderful classic even though i never tried to sing it in a fountain. was this a veiled threat of exposure or a good man under relentless attack? when singer showed the board the letter they voted to fire kleinfeld. the notion it may have been ingest went out the window and if anything embarrassing may have happened in 2006. i favored the breakup and felt kleinfeld had done a good job. with him gone a chance to give elliott a chance to run the show. they have an excellent slate ready and i can't say the same about the management team that initially drew me to the spot. did elliott play "hardball" that caused kleinfeld to suspend his
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good judgment. it doesn't matter. if you want it to go higher as you should want it to go higher if you own the stock, i believe elliott should get the vote. they can better handle the ropes. activi activism is hard and may be working, too soon to say it's peeked.
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if i extrapolate my conclusions and say the economy is doing better than companies say, interest rates go higher and circle back to the banks. we have the top of the cue, jpmorgan, bank of america was great, city was fantastic, morgan stanley was great. all these are buys. 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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