tv Mad Money CNBC April 24, 2017 6:00pm-7:01pm EDT
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>> you're dating yourself. >> honeywell. we talked about it last week. look at the earnings. they're showing they are numbero uno. "mad money" with jim cramer is next. 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. others want to make friends, my job is to help you make money. to look at this reaction to yesterday's french presidential election, dow roaring 216
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points, nasdaq moll vaulted $1.34. the eiffel tower we see from lower manhattan, not the sach you of liberty. let's get serious about what it all means, the first is that the u.s. has enough entanglements in europe. but the french -- it's no wonder we felt some of that love across the atlantic. it's fair to ask, though, is there any real linkage? absolutely. if both the candidates had made to the runoff including marine le pen. there would have been a flight out of treasuries and over to bonds. lower rates automatically triggers selling in stocks. further, the dollar would have gone way up on increased demand
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for a steadier currency, rather than a shaky euro, something that would have hurt our international companies, the ones who are based here but sell ther because a weak euro makes for a terrible transition back into dollars. instead we have a centrist, emanuel her chron. otherwise the principle positive for our stock market came from hedge funds betting against u.s. stocks because they wanted to benefit from the possibility that he wouldn't make the runoff. hedge funds need to buy stocks in order to close out those short positions. by the way, it is worth pointing out, that with these moves, many of the european forces are now outperforming the s&p 500. should we be talking about a trump discount ramp a trump bump? probably unfair, but everybody
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since the defeat of the american health care bill, we have been twiddling our thumbs here, at least until today. later on we'll talk about what can derail us. les play out what's allowing our markets to fly. better earnings from a whole host of companies. on sunday, i sent a memo to the "mad money" staff with ideas of what i think we should be focusing on in the next couple of weeks. my seventh suggestion, how come bar never comes down? we got our answer at 5:00 p.m. yesterday because there is a suitor for the company, becton dickenson, both are situated pretty near each other. you can only imagine how the combined energy service
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hospitals, which is exactly what the hospitals want fewer vendors. while cr barred may have seem -- on monday, you picked up a quick buck for doing any different other than own c.r. barn stock. i like to focus on single stock reward, like the 20% game you got from bard this morning, yes, i like diversification, but it's worth it to point out, what a win. next let's talk earnings. hasbro, the entertainment company and illinois tours, the manufacturer of a host of key parts and machines that dominate whole industries. mattel which reported a very disappointing quarter last week is a toy company, hasbro is what i call an experiential
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enterprise for people who want to have an immersion experience. why is it so important? because of the mechanics of money management. so many hedge funds think that mattel is the same as hasbro, so they place wagers against hasbro when mattel came up on the short side. the best run industrial that you have never heard of, which much -- really strong earnings, fantastic organic growth, but it defied all the conventional wisdom of how they defied the sell -- same we got 121. while it's a solid franchise,
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the company's margin up side is limited and the stock is elevated. guess what, illinois tool works is now at $150 after blowing the martins away, up 3.6 today. then we have the phenomena of the companies that reported remarkable numbers in the last few weeks, but for some reason the market overlooked them because they came right before the french election that wall street's so terrified of. honey well's stocks moved higher. most recently an astounding performance by key corp. . then of course there are the positives that are in front of our faces in the semiconductors, naming the big bills for apple and cell phones. now that we're unshackled, we got quite a ride in qualcomm,
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texas instruments. i suggested eed xilinx. two research corporations recommend xilinx. and we do have t-mobile, who after the close reported a great number that, could be reflected tomorrow. i have skipped over what so many are speculating over president trump trying to get tax reform done and it will be bigger than any tax cut ever. we know the president plans to unveil his plan on monday. today's rally is all about these tax cuts, and i think i have to call a time-out and explain how that's not the real driver of this fabulous move, it's this granular information about what's going on with the companies. look, i believe the president can work wonders for the business community by changing regulations, in fact i think
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deregulation in the banking and oil and gas industry has already made a difference for these companies. but there's not much hope for the biggest tax cut everybody. we don't even know if they'll be able to avert a government shutdown on friday. so the commentators that want to hang the rally on wednesday's potential tax cut, they're raising the bar way too high. we're going to rally today because france didn't implode. if trump gets legislation passed, oh, that would be fantastic for the market. but you really need to stop banking on anything that involves congress, you're just setting your portfolio up for failure, instead of looking at the main chance, the phenomenal performance of so many companies
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in t . >> i bought regents stock a number of years ago and it split, and it went way down. now it's starting to come back up. my question to you is, should i keep it? >> okay yeah, no, no you want to keep it, regents is a fabulous franchise in a great area in the south, which is growing and i think is going to be growing faster as we recognize all the natural resources we have there. i want you to own it. and if it comes in, i would buy more. how about steve in missouri, steve? >> caller: steve, i've subscribed to your newsletter, i appreciate you educating and entertaining, so i guess i'm a faithful following of brother jim's church of cramerica. >> i hope you'll be a part of my club member call, how can i
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help? >> caller: despite the publicity on ual, would you suggest waiting 18 months like chipotle, or something different, considering there's far fewer choices in airlines than there is places to eat? >> thank you for your incredibly kind comments, we have gotten -- it's very hard to not choose united, you're kind of hamstrung, so i think that united will not necessarily be nearly as affected, i care more about international, which i don't think is doing that well, which is why you know because you're a member of the action alerts club, that southwest which i reported this week represents the better buy. >> caller: jim, tell me about a litt bit about l brands and if you fl like it's a stable company to invest in long-term.
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>> we had matthew boss on last week and he is talking about the idea that we have seen a trough in traffic. i went to the mall this weekend, we went store to store to store and i still do not feel great about store brands, because we like those that are in the strip mall, not captured by the mall. i like home depot, i like amazon, but let's be ready, it's stock is quite elevated, which may allow a dip. on "mad money" tonight, hasbro from viewing to video, to the toy chest. as the buy the weakness train left the station after today's rally? i tell you if you missed it or
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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. just because two companies belong to the same industry doesn't mean they'll give you the same results. sometimes the dirps between the two is incredibly stark. just look at the toy makers, last week mattel posted a disappointing color, but i told you that hasbro doesn't necessarily follow in its footsteps. the company reported a monster
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68% earnings substantially higher revenues, in response to stock is up nearly 6% today. what sets hasbro apart? first of all hasbro has the exclusive rights to disney. think "star wars," all the marvel comics, movies and all the titles that you associate with disney. there are some used disney pictures coming in this year, plus hbro has been growing digital becames business. so can the stock keep climbing? let's check in with brian goldman, the chairman and ceo of hasbro. welcome back to "mad money." >> hi, jim, how are you doing? >> i want to talk directly about the notion of the experiential opportunities you have and you're doing 360 gaming, meaning that people are not just buying toys off of a shelf, how much is
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that translate to a major act sell lags in your earnings and your revenues? >> as we build these experiences, we're surrounding the user in a 360--degree way. we're also creating digital games and what we're finding out about our brands is they really resonate in that mobile gaming space, and we're seeing great performance, from back flip studios, which is our own company, but also third party relationships. >> how is it possible that you start talking about big pickup in monopoly and dungeons and dragons, these are things that my kids and myself, we know and thought they were spent years ago, clearly not the case. >> it really starts with the consumer insight. we spent spend a lot of time getsing consumer insights then we're surrounding them with storytelling, so every one of our brands, we have an immense
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story, magical gathering, and monopoly it's about engaging people in a social media sense. even brands like baby alive that you would think wouldn't have a social media presence, just this past quarter, 117 mlion user-generated pieces of content were viewed online. so people are playing with our products and sharing and we're fostering that and allowing people to experience these brands in any way they want, any platform on any screen. >> i didn't give it enough credit, i'm a member of the dollar shave club, i love these clubs, i am going to join the subscription service that you're going to have for new games because i don't want to be left out. tell me about this. >> hasbro game crate is fantastic, it will launch this summer. each crate can be selected, either you can select the family crate or a party crate. but there will be three games
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inside, they're curated by our gaming experts, and it gives you an opportunity to play a game that nobody's ever played before but it's been selected by our team. and the idea is you share what you think about this and it gives us an idea of profitable experimentati experimentation. >> something that caught my eye in your conference call that i think may be part of everything we have talked about. it's ethereal i know, ranking on corporate responsibility for cr magazine, if you can go back and tell people from hasbro what you liked, that's not like most companies, i'm hearing about customer immersion. >> we take direct feedback, and we really thought about this in a multitude of ways, we have a sustainability center of excellence, that we're working on products that are better for
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the planet, we are moving to biodegradable plastics, ethical sources is another area that we very focussed on, and of course inclusion in our workforce, inclusion in the kinds of people we portray and the way that we think of the productses and diversity. even our board of directors, we're thinking about diversity in how we build a board with wonderful capables and a diverse background. >> could that be the case in europe and latin america, i heard, or is it just that those areas are doing a little bit better. >> we're seeing a little bit of puts and takes in the uk that came out of a lot of discounting in the last holidays for our retailers, not in our behalf, latin america is performing very strongly, but we have seen throughout 16 all these regions of performing strongly, we use some of this as timing early in the year. as we get into the second quarter, we're going to get into
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new movies, like guardians of the galaxy, and then of course in the fall, we have our first animated feature film, my little pony, the animated feature, which is going to be fantastic we can't wait to release that and lions gate is distributing that for us. it's actually called forces of destiny, it was just announced, and it's all about a great cast, particularly iconic heroes, focussed on a lot of our female heroes. lucas films is producing this, and it will align a lot of -- along the lines of that, along with the 40th anniversary celebration of "star wars" and moving into the movie and you've got force friday starting on september 1. >> i think the stock is still
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very mh on trajectory. great to see you, sir. the stk's not done, it's got too much firepower coming ahead. coming up, t-mobile ceo john leisure is here to take on the giants. >> the ceo is megacool, and i'm in my late 20s myself. >> he's the mad man in magenta, and he sits down with cramer right after earnings. hey you've gotta see this. c'mon. no. alright, see you down there. mmm, fine. 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.
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macron, the centrist can date making it into the runoff. it's all about discipline. it was about buying when the opportunity was there, and in this case, before the french election, not after. i have core alert. the need to recognize when you have missed your chance. you weren't there. you didn't buy at the right moment, end of story, so in situations like this one, it's best to simply say, okay, the train left the station, now i need to wait for the next one, meaning the next pull bag. why is this so important to me and should be to you? it has to do with instincts, human beings are herd animals, our natural instinct is to buy when everyone else is buying, and also to sell when everyone else is selling. if you're going to be an investor, you need to go against the crowd. even though it seems that
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everything is good today and nothing could take the stock market down, i'm urging you not to jump low the stock market right now. there's a pretty good chance we'll get another pull back in the not too distance future. let me explain, we haveot another major political problem coming up that seems tailor-made to cause the kind of panic selloff that makes for a fabulous buying opportunity. i'm talking about the -- accidently cause a government shutdown because they might not be able to pass a budget by this friday. i'm not saying that a shutdown will happen, but even fears that it might happen could send this pathis -- it's hard to imagine that congress is having trouble getting it's act together. when you consider house speaker paul ryan and the gop has increasingly gotten fraticidal
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of late. just the notion that an accidental government shutdown might been the table, could give you enough to have a selloff this week. you may get a better chance to buy. i know this is advice that's rarely heeded. let's today you want to put money into an indexed fund because you can't take this one. you want to put in $1,000, just do $250. make yourself a shopping list of companies that have already reported superior earnings, so if something happens i would focus on honey well, with excellent numbers, one of the banks, all of which are cheap. rand research reported remarkable quarters, as did snap-on. csx, they had an amazing
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quarter. any of these places are a place to go, if you insist on buying, but it works better if you wait for a pull back. i know if this market continues to run, you're going to blame me for missing the move. i told you to buy because the politics of france have little to do with the price to earnings ratio of bristol myers. and if you can't stop yourself from buying stocks after this run, only buy small numbers of stock with fundamentals and have already reported great numbers. let's take a call from nita in new jersey. >> caller: hi, mr. cramer, how will you? >> i'm good, how about you, nita? >> caller: i'm doing great talking to you. i i would like to know about sirius. you like the stock?
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>> let me tell you why i like it because some people feel that automobiles are peaking, it's done a terrific job and even has price flexibility if they want it to. i am in favor, i saw a downgrade last week and i sloughed it off. >> caller: i bought, me and the caveman bought unilever about two years ago, it's doing well, i just wonder what your projection is in the future? >> i think it goes up over time. the ceo has done a remark m job, he was chased by kraft heins, he gave you a video boost, what else can you aor from a ceo? you know i think chasing is a
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gave us the power to turn this enemy into an ally? microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease. there are over 100 million pieces of dna every sample. with the microsoft cloud, we can analyze the data faster than ever before. if we can detect new viruses before they spread, we may someday prevent outbreaks before they begin.
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offering -- posted a 4 cents earnings, after a 4 cent basis, up 11% year over year, that caused the stock to have a little bit of a hiccup in after hours training, even though the company signed up 950,000 prepaid customers, the percentage of subscribers they lose is low, 1.18%. let's dig deeper with john lege legere, you've got a record low churn of 1.18%. where are you getting these from and why are they staying with you? >> well, first of all, jim, we're getting them from everybody, and i have always told you that both dumb and duer have been big
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contributors to the success of t-mobile, asou saw with verizon's results last week, they have caught up with getting their customers to us. but it's up across the board. this quarter on the postpaid phone size, we estimated that we took 250% of all the postpaid growth phone industry. the churn is record low, and it's been driving us to 11% service revenue growth and i remind you that no one else in the wireless industry has grown since 2014. our uncarrier moves and our focus on the customer has been very successful and there's a lot more growth to come. >> you are a transparent guy, sequential decrease, and that was primarily due to systemly lower gross additions, all of these i expect to be reversed by later in the year? >> so we did 386 ,000 prepaid
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nets, for example, and the tax season was a little bit delayed, that equated by the way to verizon, minus 17,000 prepaid. i think what you have to look is, at the size of the industry pool that was available, we completely dominated that, you can see that we took it all the way down to the adjusted ebita line with $2.7 billion and 21% year over year normalized groh and net income was very strong, but very importantly, what we have given is a 45% to 50% growth. there's a samsung major device that was launched last week, and that will have some impact on industry growth and certainly a lot of talk about when apple will have a new device, which drivers a lot of growth in the industry.
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timings of decisions for customers, but, may 1 of 2013 is when t-mobile u.s. launched. and very importantly, 16 out of 16 quarters we have added over a million net adds. we have had consistent growth, and whether it's an upquarter or a downquarter, whether it's highly competitive or not, our growth continues. i'm very pleased that we now have over 73 million customers, we took the mother lode in the spectrum option. we enter it from a great position of brand strength of customer strength and growth and now with a network that covers with spectrum every single inch of the united states in a very deep way. >> jim, why don't we still talk about mergers then? if you got the network, if you got the growth, shouldn't the other guys be merging in order to take on you? why do you even have to think
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about the concept? >> that's a great way to look at it. here's what i would tell you, this industry, if you think about the wireless players and the cable players and the internet players on the side and you think about amazon and you think about where things are going, you can see that it makes some sense that some of these capabilities coming together could increase customer value and shareholder value. number two, it's been over a year since anybody could speak to each other. number three, we have a regulatory environment that seems to be more favorable to consolidation, we'll find out. but many players, dish, sprint, i would even say comcast, admit that they don't have all of what they need for their success going forward. t-mobile on the other hand, we have a tremendous asset base, a great growing business, by the
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way, we're adding 3,000 more stores which will put us up to 16,000 stores, now matching the footprint of our network. we certainly can drive shareholder value and growth as a stand alone company, however, it will be something that we will look at the opportunities to even further accelerate that growth or create much more shareholder value. so we're coming at this exactly the way i dreamt we would at this period, from a position of strength, and willing to talk but not needing to, which is really a dirfference. >> do you have any idea of the average age of the people you're taking, because of the way you handle yourself, if you get someone as a young person, you got to get a revolutionary guerrilla approach, that's what the younger people want, they can stay with you for a long time. >> we skew much younger, we skew to the millennial audience, t-mobile is cooler.
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of course the ceo is megacool, and i'm in my late 20s myself, so i can see eye to eye with these customers, but most importantly as you have seen, jim, with 1.18% postpaid voice churn at an all time low and getting better, you're right, the millennial's skew to us, but not just the millennial's, it's all the customers who want to break the chains of a stupid arrogant industry. and we have a long way to go, and we're going it on behalf of the customers. >> john leisure, president and ceo of t-mobile. thank you so much, "mad money" is back after the break. bp developed new, industry-leading software to monitor drilling operations in real-time,
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so our engineers can solve problems with the most precise data at their fingertips. because safety is never being satisfied. and always working to be better. at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. ich is what we do. crowne plaza. we're all business, mostly.
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richard in new york. >> caller: what is your opinion of berkshire hathaway as a long-term hold. and do you think they should start paying a dividend. >> i don't want to go against that man's judt because he's the best i have ever seen, and 's also taking care of who should come after him. so i like berkshire hathaway on a long-term basis. >> caller: thank you for all you have done for me. my question today i'm calling today is vrx. >> they owe $30 billion, you're looking at an option that maybe one day they'll be able to pay all that. i don't feel that comfortable about that situation, but i always welcome management to come on the show. let's go to august in new york. august? no, maybe we should go to tom in
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virginia, tom? >> caller: boo-yah, cramer. what are you doing today? >> all right, how gabout you? >> caller: i'm doing great. chesapeake energy. >> it is a play on the weather, if it's really hot, it will go up. and that's what you've got, and there really isn't much more to it. i thought it would be a colder winter than it was, now it's got to be hot. how about norman in -- i like chesapeake because of the call on the summer. norman in oklahoma. >> caller: boo-yah jim, years ago i called you about a stock call call call called materion. >> yeah, i always liked them. let me do some home work and
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come back, because it was always a nifty little company. let's go to allen in florida. >> caller: i want to know what you think about cara therapeutic. >> cara is up more than 70%, we had the company on, $17, $18 has come back down, i believe in any pain medicine that does not cross the blood brain barrier. so i like cara. >> boo-yah jim. >> caller: wft. weatherford international. >> the change has come and it's time to move on. >> caller: thank you for taking my call. i'm a big fan of your show. my question is about american airlines. i purchased it like two years back and now my average price is around 52.
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>> look, i like southwest first, my charitable trust, southwest air is our choice, then i would go with alaska, then i would go with delta, then i would go with united, then i would go with jetblue. that's my order of how i like the stocks right now. let's go to dave in illinois. >> caller: abt, abbott labs. >> nobody ever made any money betting against white house. that's the end of "the lightning round." warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony.
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okay, illinois tool works well. here's a company that i have recommended as the best industrial you ever heard of. illinois tool works makes specialized industrial equipment. they're making parts for everything -- company's got great management, terrific margins and a fabulous track record. just this morning, illinois toolworks reported another excellent quarter. higher than expected revenue, even better it gave you 3.5% organic growth, and forecast for
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2017. you can understand why the stock climbed 5 bucks today. should you be worried that you missed this one or is it possible that there's more on the up side. welcome to "mad money," good to see you, sir. >> thank you. >> all right, how does a company do so much better than the industry it sells to. we all know that automotive is a good business, but it's not the kind of business that's generating the kind of return that you are? how does it work? >> the automotive story specifically, jim is all about the niche that we play in that space, so we are a value added problem solver for the -- we have a nichy space in the industry, high legal of problem solving for our customers. to give you an example. the average building material in
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a car is a $15,000 a car, and we have $35 a car. on that $35 to your point on growth potential from there, we feel like the ultimate growth for us is $200 a car. that's really been the growth story. >> i want you to talk about 8020. because that's really what this company is about. if people understand 8020, they'll understand why it's not too late to buy. >> 8020 is the operating system we use, it started up in itw back in the mid '80s and it's been something we have been practicing across the country ever since, and it's built around a phenomenon that we see over and over again in our kinds of companies, our kinds of businesses, which is a fact that typically 20% of a business's customers and product lines generate 80% of renue.
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and the inverse is also true, 80% of a company's business is product line, typically -- we radically simplify the business focused on that small handful of customers and product lines that generate the majority of the revenue in the business, and we also significantly reduce or eliminate all the cost and complexity that goes with supporting those large numbers of customers and products that generate a relatively small proportion of -- >> that's how you can keep raising margins, a lot of people felt that it was impossible to continue to take -- these are old businesses, but you're able to keep wrenching it out. >> it really comes up from that ability to laser light snfocus those larger customers and their dominant product line that drives the profitability in any company. >> one thing that stands out
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here, particularly after the french government changes here, the surge in europe is really quite extraordinary, they're doing better, more demand? >> we saw a nice uptick in the quarter, across the company, the automotive business that you referred to earlier was a good part of it. but overall, pretty broad based construction was good for us as well. >> and tests of measurement is strong. >> what started being in the geography, we saw a nice uptick in the business spending part of our portfolio, where we have had a fairly anemic environment in terms of business investment so that's perking up a bit. 3.5 in enviroent, that's inventions and also cateri ining and liste to customers. >> we have had a big pivot in the company going on in the last
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four years of really driving towards a much more concentrated effort on building an organic front in the company. so part of the progress is a result of that effort. and some of the macro help we got in the quarter. >> we can't train on these welders, so you've created products that don't necessarily require many years of aprentisship of welling. you came up with a better mouse trap? >> a big shortage of skilled labor, and we see it in construction right now as well. one of the limitations is for contractors to find qualified labor in the construction arena, similar in welding, so a big part of what we're on is try to build our equipment that had a high level of sophistication in terms of technology, but to make
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it easier and easier for an experienced welder to get up to speed. >> the chairman and ceo of im ill tool works, the symbol is w. it just make sense. "mad money" is back after the break. business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing.
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. some important news, alcoa, this could be the first of what i think are many after the company rationalizes it's cost. the stock is just being crushed. i would stay away. i think there's a lot of money that has to come out of this, and then t-mobile, this company does have a history of coming in after the company reports, i wouldn't sweat the program. i like to say there's always a bull market somewhere, and i promise to find it just for you, always here on "mad money." i'm jim cramer and i'll see you
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tomorrow. okay, let's go. find your awesome with the xfinity x1 voice remote. that's amazing! 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." ♪ first into the tank are erika welsh and keeley tillotson, college students with a business they created in their dorm room. hi, i'm keeley. and i'm erika. we founded our company, wild squirrel nut butter, this january as sophomores at the university of oregon. wild squirrel is seeking a $50,000 investment in exchange for 10% equity in our company. keeley and i love peanut butter.
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