tv Mad Money CNBC September 12, 2017 6:00pm-7:00pm EDT
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multiple transactions in these department stores. >> multiple transactions in department stores? interesting. >> letter m. a lot of them melissa lee. thanks for watching. "mad money" with jim cramer starts right now. . my mission is simple, to make you money i'm here to level the playing field for all investors. "mad money" starts now hey i'm cramer, welcome to "mad money," welcome to kram america. other people want to make friends i'm just trying to make you money. my job, to ed kalt and teach tweet me news flash, stocks by and large
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do get cheaper when they go lower. call me captain obvious for pointing it out but i think this common sense wisdom also gets ignored when we're analyzing stocks on a day-to-day basis far too many people act like it's not part of the calculus. all three major averages ascending to all-time highs. dow rose 23% s&p, nasdaq both rose to 43% i came across -- i came across it today in a fabulous report from a friend, recommended the stock of cnn become's company. the comcast stock was downgraded saying it had run too far too fast today with the stock down more than 10% they upgraded come
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cost, just as everybody seemed to be turning on it. they believe the term is facing comcast, cut t.v. sub subscribers. the stock doesn't seem to have any transaction today but they make a good point. stocks of good companies it's something you do acknowledge on a day that apple launched its knew iphone speaking of apple, it amazes me that -- oh you know i always have to try. it amazes me ten years after the first iphone came out, the thing i keep hearing about this new phone is, well work do you upgrade. here's thing i don't hear, how outrageous 1,$000.
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i don't hear, i don't want to try it, i got to put it in my hand before i use it i'm hearing yes, i'll upgrade or i'm hoping someone will buy it for me those are the two thing i've heard all day. that's incredible. it's the most beloved device i can remember imagine somebody upgrading someone that just bought, me i bought the 7, i'm upgrading. when ceo tim cook came on the show to remind people his company was being prematurely buried by the stock market it was just a pod or trade system which went really well in short, this was the stock that got cheaper as it went down if you bought it in the '90s after cook spoke to us, well, you made a ton of money.
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suburb companies, fabulous balance sheet, amazing profitability and you couldn't give the darn thing away despite how inexpensive it had gotten. the stock did get hit today on the intersectiroduction, that's probably traders losing money on a stock they bought yesterday or maybe they stupidly bought it on today's open i don't think they should treat it, i think they should own it caterpillar, it had an analyst meeting today and the stock broke out $120 to book in. at the beginning of 2016, which was not that long ago, this stock traded at just 60 bucks, half of what it went out today as analyst pile downgraded the stock of this american company argued the best type of equipment maker on earth, the stock and caterpillar got
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cheaper as it went down. who can figure whenever you see merchandise being marked down for no really good reason, i think you should view it as an opportunity. here's one, the stock of tech knowledges have -- it's acquiring rock well columns, a maker of key airline parts i've been urging them to do this deal for a while, and here it is at a price, just like they paid for good ridge six years ago back then, it was wheels brakes and landing gear of goodrich this time with rock well columns, electronics as well as seating many components. yesterday it was an $8 billion deal this time it's a $23 billion, people say oh come on wow,
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really expensive go back and look at the stock. the goodrich deal marked the sustaining of a move that's taking technology from 68 bucks to 109 back then the forecast would remain unchanged the business was strong the earnings are better than last time and it increases more visual here's my theory about united technologies as stocks have come down wouldn't you know it's gotten cheaper. because of the decline investors are running away from the stock not towards it i think we'll look back on this as a great buying opportunity, not unlike goodrich, six years ago. sometimes stocks get hit for entirely wrong reasons a little less than 18 months ago we brought on marriott locations
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worldwide, the stock has been hammered from $91 down to the 50s. investors were worried about the air bnb. marketed as investments and a cheaper way to travel, since then, double, double last month home depot fell from $153 down to $144, why because amazon aannounced with sears for products sure we got stores that hold business, but more importantly sears and amazon wouldn't a serious threat to anyone sears fewer people shop in those stores we see this all the time, amazon's suppose to -- but as macy's really been destroyed by
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it macy's will be the first to admit its business has been hurt two years ago i heard a money manager recommend the stock at $70. today that same manager who like macy's mostly for its real estate value comes out and says he sold the whole position and the company will have a lot of problems prospering in the company. let me think, he love the stock at 70, hates it at 22. okay, business is bad but not $22 bad. with a new cer method, he understands what need to be done monster 6.8% dividend yield i'm willing to bet that this marked so dramatically, especially announcing after macy's go private. not every stock that goes down initially get cheaper, shares and macy's didn't fight the decline of the rae tail business
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when therm 60, 50, 40 or 30, that's why i didn't recommend. at 22, i think the weaknesses baked in here's the bottom line, don't smear at every stocks go lower, sometimes there's pain ahead at the stocks get cheaper of ignorance. remember apple, caterpillar, united technologies or even macys, i think when you do you'll look back and recall buy low, sell high, quick investment strategy who would have thunk it. jacob in indiana >> bowie ya jim. >> what's up >> last stock earnings in the last three quarters, recently took a hit from irma before that a 52 week price performance was suffering. it bounced back yesterday, made small recoveries today i still don't understand the
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stock's museum my stock is uve, does it have room to run? >> before anyone applies for an insurance company if you do not know the exposure of that company to the storms themselves you're being reckless, i will not be reckless i'll look into what universal insurance holdings exposure is between wilma and katrina there were insurance companies wiped out. allan in new york. >> jim, let me be the first to wish you an undefeated eagles to you. hopefully not the last >> i don't know,i'm so super sti stishs my wife asked me why do i go out the same door i go out in, i've been doing it for 50 years i used to order green jersey every single time, the green gap shirt in the eagles game -- don't worry regina the story
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doesn't take long. i say so long i wear this green shirt the eagles win and mrs. reed, tammy said to me, you're right my husband and i have nothing to do with it so let's say super stishs thank you. how can i help >> caller: enjoy it while you can. the stock is up 20% in teva. they just got a big approval, they did a nice migraine presentation, they're selling off part of their company. my real question is about the ceo, carey schultz >>i hear good things i've made a lot of calls on this because i was surprised the stock wen up yesterday first of all they didn't have a ceo. second the good thing extend to the fact they sold something that actually raised some cash i don't like the generic business but if you wanted to observe something think about owning allergan which owns 10% i know it keeps going lower but
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i think one day that stock will be too cheap too when merchandise gets marked down we got to think about it as an opportunity if the fundamentals are good for if the decline overemphasis on "mad money" tonight, with the interest rate poise continue to rise i'm going to sit down with the ceo to find out what's ahead has the idea of tax reform become something of a pipe dream? a stock whose shares are up more than 75% year to date, but can it keep climbing stick with cramer. ceo to find out what's ahead
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. spin toss and healthcare wheel has taken death trust fund, here's a company that owns roughly 1200 senior housing facilities, medical office buildings, hospitals and research labs to talk about across north america stock rally to hang 9% for 2017. investors have had some concerns about the outlook for senior facilities usually baby boomers starting to get old. repeal and replace obamacare is on ice any more attempts to get rid of the affordable healthcare will make this stock perhaps undecisive so let's check in with debora, the chairman
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good to see you thank you. >> good to be here have a seat. i started it like that because the fact is you never lost your groove but when you came on your stock and company had been getting bad p publicity which you came here and said was untrue and it was and that was an unbelievable moment to buy. >> which you said. >> well you came here, i needed to hear from you you know how many people run from that situation, from people taking shots at you. so it worked >> it did. >> i want to talk about this new growth area, life science area describe it for our viewers. >> this is a fabulous new part of our business, we've invested 2 million in capital so far. it's a university base life science business incredibly needed business because as we know there are so many americans will chronic illnesses, so much research to
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be done. university, highly rated one, most of our companies are a-rated or better. we can develop and own these buildings for them, the universities are the engines of economic development in these submarkets they're magnets for private capitals we bought a great porfolio, it's at yale, duke, washington, and we are developing these hubs of research and innovation with and for these universities to help them grow by using our capital >> okay, so how do you know you have the right credit? how do we presume necessarily that a university is going to be able to pay? >> it's a pretty simple analysis sis. if you look at the investment we made which is now 6% of our business, should be growing to
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the 10% range over time, they're a-rated. 75% of the risks come from either a-rated companies or university or companies over market cap capability. i have great about the quality and think it's a really good adjustment return from us. >> robinson i heard him make this statement, he was making a killing doing fabulous and suddenly turned against it how are you able to measure thing like he did in order to be not able to have some clungers >> chen view was our great investors. we believe in a diverse tied porfolio. >> you named no big bets >> we've always believed in financial strength invest ability and we believe in portfolio. we are humble about whack happen because there are unknowns out
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there about investing as you know we have aligned with some healthcare provides and our business is still 94% private pay. >> okay, now there is a sense that there's been some deacceleration, similarly in senior housing explain this to me, the demographics are unbelievable, you mentioned it could happen. i have to believe this corrects itself so your getting an opportunity lower than it might be after correcting itself >> let me dpf you some facts what is happening is in some markets there is a timing mismatch that is, there is an excess of development occurring with respect to immediate demand. we all know that this wave of demographic demands from other 75 is coming and it will overwhelm all the vacant units in the u.s. there is some time
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lapse in the markets we talked about that last time. >> yes >> two years ago there were double the starts in senior housing in the second quarter of '15 as there were in the second quarter of '17 so, what we are seeing is demand isn't necessarily increasing adsorption is very strong. the penetration rate, ie how many seniors use senior housing is increasing and stars are ticking down compared to the pique in the second quarter of 2015 there still will be that mismatch, we still will see the deliveries come on but it's an enormous cycle that will get absorbed over time >> tell me about what happens with your places in hurricane irma >> thank you for asking. this is where about ceo of venue that is is an incredible honor we do business with the best
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care providers in the united states some of them senior living, evacuated almost 10 communities with very frail senior people who have incredible needs. everyone is safe, the staff went with them, some of the staff haven't slept for days taking care of the seniors. so far everyone have been state. the same with our partners at kin drid healthcare. they're very prepared. i'd say to people with parents who live alone, senior living is really a better way to keep your parents safe >> absolutely know the truth about that thank you so much debora "mad money's" back >> coming up last year new realic suffered a down turn.
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. in january we had a plan that was lined out working with congress that we thought we could get tax reform done by august, and that was based upon doing healthcare first and doing healthcare fast. i think as you know, healthcare took longer than we expected, we then got into the august recess, that's what pushed back tax reform the market moved, i'm now incredibly hopeful we're going to get this done by the end of the year >> is tax form really going to happen this morning cbc, secretary
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steve mnuchin told us that tax reform is coming and it's coming at the end of this year. all i can say to that is i wish. we need american companies to be able to repatriate their overseas assets, because our corporate tax rates are way too high and ridiculous. plus, a lower corporate tax regime can be a bloom to so many domestic companies since there's new hires within pay taxes themselves, it may not explode the deficit with some components predict as much as i love tax reform i'm a realist. the winner this year at the time of the inauguration i couldn't have been more excited about the president's economic agenda, but not anymore. i know better now. first secretary mnuchin admitted the white house got sidetracked
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on healthcare reform they couldn't even do it it was a failure, total waist of our time and their time. then there was an issue on the border tax in the end the border tax was going to be scrapped because it could have hurt so many importers and cost tens of millions of jobs, now a waste of your time and mine then this morning the sector says he wants to change the formation. many issue state and local mctax to play for the plan here we go again getting bogged down with controversy y'all ideas they don't have the votes to pass in congress i, like many of you want something to get done. the best way to get tax reform done is to keep it simple. why the president's people don't see this is beyond me. any kind of comprehensive reform whether hidalgo county,
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immigration or taxes always takes forever, always end being up unpopular you believe usually fails. with infrastructure, we're all sick of how our roads, bridges and tunnels have falling apart, we'll buy them and do it because we're patriotic and practical. the republicans will fight with the democrats and with each other, then forget it. there was a time when i used to ask each executive when they came on this show what they'd do with the money they get from lower corporate tax. how much are we putting in dividends, buy backs new jobs, how much will be from overseas all together i don't bother doing tha anymore, you know why, because i don't want to waste your time. going about it the way the white house is doing right now ensures
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failure, the best is the enemy of the good. memo to the gop stop trying to make tax reform perfect, just get something passed let's get this done. don in indiana don. >> caller: jimmy, nucor has been on a trajectory, can you share the reason why >> the price marked down because stock was downgraded by morgan stanley. this is one of multiple downgrades we like nucor because it's the best steel company in the land and it always will be and the stock is put down because of fears there will not be tariffs on china, no infrastructure spending, the last quarter with weaken and one make be weak too. that's when you buy the stock and put it away, not whether you sell it and give up on it. nucor, 50, 51, 52, 53, buy it.
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jj in new york >> caller: i'm looking at a stock jeld win, they make replacement windows. in response to the damages done from the most recent storms, you'd say buy, sell or avoid >> you know, i -- my old hedge fund we owned a fuj percentage in a company that was predecessors to this we got to do more work a stock up that big, basically there could be a lot more demand may not see it we got to do work. memo to washington, use the kiss philosophy, keep things simple and get tax reform done for the benefit of the country still more money ahead, including a sit down from a tech company. new realic is up more than 75% this year. then refiners seem to be rumble back to life after
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hurricane harvey forced them to shut down a few weeks ago. all your calls, rapid fire, tonight's edition of lightning round. so stick with cramer your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.
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. these days some of the hottest stocks around are companies people don't deal with in their day-to-day lives. take new realic, the class base software f application monitoring, meaning to help companies keep track of how their softwares are doing. why they may not sound all that sexsy, new realic stock is on the rise
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this company has -- it's got terrific growth. company revenue increased by over 36% last time reported, beginning of august. new realic is described as a new tech urgent. can this company keep roaring. let's deal with the ceo of company. we know the stock's been red hot and i think a lot of that is because you have customers that can't really be sure they're product's working without you. what i want to talk about right now is one of my favorite sites in the world mlb.com never seems to go down >> the company behind that is called van tack and they've transformed the way we watch sports and consume all sorts of media. in the game time in the world series many people are streaming that game that you couldn't do on t.v
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new realic provide them the confident to run at pique production >> i think that's why when disney increased the stake, a lot of people were saying, yeah i know that site, that site works. >> yeah, and you think about disney, few people dispute they have the best content in the world. so, now they're saying with looking forward we also want to best technology in the world, we want the technology that zribts it how are they going to evolve coming a technology company. we're coming along making that work for them. >> walmart bought jet.com, there are going to be surges when people want to go to jet.com, how do they know their site's not down >> jet.com has been a customer of ours for a long time.
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it's a story where walmart decided to get serious and made a decision if you think about it for jet or mlb there's these moments of truth where you must shine at that moment, you need to foe exactly what's going on in realtime are people able to purchase the items online, what are they browsing if it's slow why is it slow, how do i make it faster immediately. >> there's a company that we're familiar with on this show, we interviewed many times, cisco go and -- >> i'm not an expert in valuing companies, we're happy to compete against cisco. we do it all day long. we're strongest in the cloud, that's where the future is our competitor has an onpremise buyer and they were bought by a company with a stronger premise buyer. >> explain to people on premise
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growth versus sales growth >> you've been covering this for a long time, pretty good call on your part. what we're doing in our category is taking that software to it monitoring to help provide infrastructure that helps our customers move to the cloud. >> it's important though >> any cloud you're running on, we're partnering really well with microsoft as well as cloud and google >> now if i'm on air bnb how will they know the site's not down if. >> they had a moment of truth at the super bowl last year they had an opportunity putting the ad up, and they didn't anticipate having that ad opportunity. ty had to scramble and prepare for a surge of traffic on sunday fight when this ad goes ahead of a million people the ad on monday they didn't handle it well, they wouldn't new realic customers
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>> it's also rearranged business models of ryan air >> absolutely. in the past they thought of themselves as an airline that has a website. now all their business goes to the website and therefore the website is the business. if they want to visibility of how their business is doing they see it on realtime >> now you have a lot of money in the bank and have now made it determination fourth quarter >> yes, ever on track for that, we've been seeing that for about a year and a half now, that that's the goal and still on track for that we are a growth company, we're not a growth at all company. really it's all about the opportunity in front of us we're so early in this stage where all these companies are moving to digital and to the cloud. >> i don't think people realize how important it is. i was on a site this weekend, i won't mention it, many millions of people were running on sunday
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and it was too slow to deliver, it was a sports site and if you were to all -- if we were all going mlb.com for the world series which is what i would do, it's going to work isn't it >> well, look these are complex systems. it's not magic, it takes a lot of hard work we provide tooling to make sure these professionals keep their sites up and running the cost of down time is i remember bl damage >> that's the word i'm searching for. unank so much. foder of realic which is been a rocket because the business is a rocket m.a.d. one's back after the break.
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big texas boo ya first time caller. >> hope everyone's doing great down there how can i help >> caller: yes, sir i've been great. rest torsion healthcare. >> a huge am of stock in 25 and 26 we say we'd want to go with him. now the stock has more than doubled. they did have a good quarter, i'd prefer to wait for 10% pull back but what if the presentation made in new york. what a day dave in washington. >> caller: hi jim. even though i'm not a young investor i like long-term stocks and when disney below my cost spaces is it time to load up >> i can't be that promising short-term given the challenges they're facing if you're willing to buy, accept the fact it may go to 93.90 i think you'll be fine
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gary in idaho. >> caller: jomcramerer, boisesy idaho. what do you think about -- >> we fail t 60 -- he continue to buy stock and now it's in double let's go to chad in michigan >> caller: boo ya and go blue mr. cramer my stock is amv. >> amv does have this big over hang of an investment that another company made it which is why it's installed it's why i prefer invidia, invidia is not a crypto turnsy play, it happens to be crypto-currency people in it and i did like what people said about bitcoin today. how about frank in new york. >> caller: hi jimm i'm a long time hero of your
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program. i wanted to get your take on freeport >> it's a long suffering holder. i think your time has come essentially everyone shifting over now i think fcx works here copper sold out right now but i expect it to get recharge. the chinese need it they're the largest buyer. i like it. robert in new jersey >> caller: yes, boo ya jim i've been watch arm ral and since i've been doing that it's down 60% >> a fly out from baltimore drive up walk up or doesn't matter we can make a decision. until kevin blank gets here the thing is many my mind is the sell recommendation i read today. kevin blake comes over and says something different i'll change myin md. that's the end of the lightning round. amazing trading knowledge
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sent wait the positive ex sent wait the negative. i would never minimize the hor of these disasters that have killed dozens of people and caused thousands of families to lose everything they own as is keeping for the show for twelve years it's a business show and so preversely enough from a business perspective there are some ministries that make out like ban dits when the gulf coast can hit with a bad hurricane. i've already talked about the wrecked cars from harvey -- without paying out merchant claims because so few people have flood insurance on their homes. the biggest winner, probably the oil refineries we're going off the charts with bob lange.
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get a better sense of what's happening with these red hot refinery stocks. refiners have been warring, they've been seeing -- like this, you've missed it that's because this tends to be a very good time of year for the refining business. for those of you don't know refining is what's knew in the margin game. it's all about what is called the crack spread, the difference between what refinery pays from crude, from the producers and what they make from selling their end product. mainly gasoline and heating oil. there are certain times of year where the spread between oil and products that refiners extract from ten to wide refining origins get fat, this is one of them when an oil refinery gets taken off line but the price of oil stays the same, then the price of gasoline rises and so does
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the price of these companies when a hurricane like harvey floods the coast of texas and louisiana, a lot of refineries shut down. which brings me back to this crack spread, the key me tricks for this entire industry this is non as the three, two, one crack spread and that's by subtracting the cost from three barrels of tool, two barrels of gasoline. take a look at this chart three to one crack the recent spike all about harvey making it profitable. if you look at the chart of the van wheel of etx, and this one's ticker crack, it's up more than 10% since bottoming in early june, look at this
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with much of that coming in weeks as industry has been bosstered by the oil storm, the storm shut down on the gulf coast. you'd be hard pressed to find another group in the energy sector doing this, a lot of them had a tough time only a few of them bought line like let's start with the daily chart of andv. it's the refinery formally known as petroleum they bottomed in april since then it's made a series of higher highs and higher lows that's important for technicians. measures the level of buying and selling pressure in the stock. the chicken low has been strong even when it tipped in august. the stock sold off, barely went
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into negative term and quickly bounced back that's another positive. meanwhile, the moving average convergence divergence what we call the mac d indication which is what is helped to change stock -- before it happened. the black line goes above the red one, that's just a few weeks ago. fairly reliable signals, take a look not bad right. over the course of august, adv pulled back. since then the stock has surged back and its sideways action has created a bullish flag pattern that's another reliable pattern. it's where the stock goes up, consolidates for a while, it's resting, getting his mone joe
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back here. when it breaking out of the flag pattern it can go to 103 and make 110 sometimes you just -- if you're a trader that is just a dream come true, catch that game my favorite thing about andv throe they're -- in addition to bigger crack they want to take market share from the competitors until they get the refineries up and running again. price of oil -- price of gasoline goes up, a lot of refineries can't take advantage of it but these guys can valero did have to shut down five refineries if texas but there's a lot more in the rest of the company lange is a three surprise action of layers, been impressive you can see where the stock has been drug higher thanks to that
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crack spread in some ways this is a worst chart than what we saw with a enrique dvr. it went lower since the stock was in recent weeks, that's a good sign. there's that bullish cross over from the black to red, that was it in august that's when the in the meantime tmomentum came on the side 77 maybe 80 with valero. finally this holiday frontier, a favorite of mine, the stock is up nearly 40% since early june this is a track that's really liked. holly frontiermade a bullish pattern. then leveled off for a bit and began rallying again last week today the stock broke out above
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33 lange thinks this one could be headed to 40 very strong on updays and this is are question on looking at what this chart is versus -- watching this versus the candles. look at how much volume it is when the stocks the go on higher here's the bottom line, the chart's interpreted by bob lange, suggested the big refiners, an defer, and holly frontier have room to run. the farmers agree. stick with cramer. the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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track tuned handling, and aggressive styling. the bold lexus is. lease the 2017 is turbo for $299 a month for 36 months. experience amazing at your lexus dealer. . heard a lot of good ideas today, the one which was most excited with -- it broke out today. it tend to fly, because the numbers are going to be there. i promise you i'm finding just for right here on "mad money." i'm jomcramerer andi will see
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