tv Mad Money CNBC September 14, 2017 6:00pm-7:00pm EDT
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>> you knew that how >> i can't believe i'm about to say this exxonmobile, held at 76 last week, first time in a long time. >> thanks so much for watching see you back at tomorrow for more "fast money." "mad money" is jim cramer starts right now. 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 the people want to make friends, just trying to make you money. job not to entertain but teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. people are always preparing for the big one. they never seem to prepare for
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the small one. i'm talking about the doomsayers and insentence that we're going to get crushed if we own stocks here even with another sedate session. dow advanced a little bit, nasdaq declined .48% i hear this every day. read article in the paper this morning, smart young fellows doing the short thing. market is up too big, too expensive. got to go down really reveltory stuff if north korea fires icbm, that cassandra is dead right. no argument there. existencial crisis issue there was talk that nuclear power fallout couldn't be contained and parts of china wiped out.
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trading during chernobyl, and people exiting stocks because of the kiev cloud they thought heading their way. not drinking milk until late next year. thermonuclear war would send the stock market down. any bull left standing looks like idiot but living through that i'm inclined to stay the course why? why can i come out on day like today and shrug off the losses in the buddies including apple first the checks are in the mail talking about the checks you get from insurance companies for damages like rain damage from hurricane harvey how do i know this nothing gives you clues better than the stock market. remember the peak auto thesis, autos headed like this, disrupted by destroyed cars in houston that are destroyed general motors is finally break
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out. remember how many years toiling in the - >> house of pain >> just less than a month ago, maybe a little more. but morgan stanley had the misfortune of downgrading this right before the storm now 52 week highs. slowdown thesis for the auto industry is kaput and parts industry is soaring. look at illinois toolworks itw. couldn't give it away, seven straight days roared higher. short becomes a long and probably not done because bear case wiped away. car max and auto nation zoomed higher why not? that's where you buy cars and downbeat interviews on squawk box i don't think the ceo of
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auto nation will be singing the blues next time he's on. one of the short sellers, 26% of that stock in their hands, what is bear case now not sure there is one. or everybody else, chugging along waiting for something good to happen that wasn't. steel, no. i mean coal, maybe, minerals, agriculture, wood, cars. hold it. wood cars? wood as in how much wood they're going to need to rebuild florida. cars, how do they get those to the houston area norfo norfolk southern and union pacific keep running and companies have said nothing yet. that's when you want to get in once they said something, maybe you take the profit. second market is doing one of its rotations that i like so much. most people hate these things because they can't read them
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well don't know how to read the tape. that's my job, okay? looking at facebook and amazon going down, doesn't bother me but everybody else is saying whoa as fang goes, so goes the market apple going down after the launch, saying, i guess it's over ringing the bell wrong. this market's rotating into what's been left behind of late. that's healthy you know what? health care. it's catching up how can you spot the rotations it's simple. number one rule of thumb for spotting rotations first you look up what stocks are rallying the most. percentage gains or big point gains. then see if there's any news or research behind the particular move that you're seeing. if there's nothing to it, no obvious reason, then you know what you're witnessing beginning of a rotation. so let's check out the stock of johnson and johnson, resting for
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ages, since summer began, bursting higher. perfect, first lead. big-time money managers don't want to buy stocks that have run but are about to run why beginning of the rotation? i know the way that wall street works. when we get a move based on nothing like today, it allows the analysts to come out and say something tomorrow that's positive that explains the run believe me, all the j & j analysts waiting for move like this as reason to reiterate the buy operations e eli lilly and others, positive news about a new drug, even more likely the analysts will squawk about it but saying it's worth squawking about if no reason for j & j move, if you're saying you're a big silly because something can always be ginned up. j & j is huge overseas sales
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50% from the u.s., colossal in europe go over the hoot and holler, the slang for the squawk box at brokerage house and yes, that's where the name came for the show raise numbers j & j because of currency dollar's been weak raise numbers. good reason? how about lilly? atopic dermatitis, that's something that one of the bulls can talk about tomorrow. give you rationale it sounds so theatrical. sometimes that's what it's really all about like the bard meant to pen in the financial text "as you like it," all the market's a stage and all the stocks merely players. what else? aerospace, it's been a month, just announced a boost 12 to 14
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for those per month. gave dutch bank an opportunity to -- woke up the complex. including the stock i told you to buy at 109 the other day, united technologies. sneak in ar conic here, one of the remaining players not snatched up. going on for months, what is take so long final reason so shrug off the apple fang blues oil. repelled oil for ages and probably do it again but didn't count on the short-term demand for crude because of the hurricanes if i were to short these stocks fear updates from lurking bulls in bears' clothing and want to desperately recommend the one area of value left in this
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market, petroleum. even as we know from alpha, short sellers targeted as hapless and lacking spending discipline not wrong. but bottom like, only a rotational play. doesn't take much to get short-term rotation going. even if many of the moves might not have long-term staying power. not saying relax and enjoy the ride opposite that's complacency, i'm saying observe and understand make sense of the action steve in virginia. >> caller: colonial boo-yah from gainesburg >> what's up >> caller: long-time viewer going back to todays with larry and cramer thanks for the sound advice and help over the years.
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>> quite welcome >> caller: my question is about sage therapeutics, tuesday i watched the stock plummet. almost as quickly it started climbing back. following one of your principles i decided to jump in and buy some but dropped again today and down 11 points do i ride that dog until it won't hunt >> had bad news on the phase iii drug lot of people were banking on it's not a one product company wish they would explain it i'm not there on that one. thanks for the things you said about being with me. i think sage, if you get upswing, exit. don't worry about a loss it's already a loss, just be taking that loss as opposed to just looking at it drake in texas drake? >> caller: boo-yah jim
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>> you're fired up how can i help >> caller: question on cybersecurity, equifax, you know what i'm talking about >> the board loves the ceo because he's still there >> caller: fire eye or colorado? >> palo alto had a beautiful quarter. proof point has been terrific. i did -- would like cyberarc to come down, missed quarter. i did a panel about cybersecurity and no anyone who said this business doesn't need protection i guess the ceo didn't attend. maybe put him on the wall of shame. time to crank it up. ready, set, spot rotation. market is doing one of its switches what's left behind i say stay the course. what wall street got wrong about apple.
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and marine industry generated dollars for florida. as evacuated floridians return home what it means and best move for best buy, answer might surprise you. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer. have a question, tweet cramer, #madtweets send jim e-mail to mad money at cnbc.com or gifs a call. miss something, head to "mad money.
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it's hard to understand how fast consumer behaviors are changing these days. especially if you're over the age of 40. i think one of the reasons why there was so little wow got to have it about the new iphone, among the analyst community, is they might be too old to get their heads around the way that
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younger people see these products millennials are far more likely to figure out how to use and adapt them download new apps that older folks don't know about and generally care about features that mean little to those of us who started on flip phone or blackberry they have a different mindset. why? think the way they document themselves in this new experiential economy i don't like making broad generalizations about entire generations based on anecdotes but baby boomer like me, best way to figure out what is happening or going to happen, watch what your own kids are doing. last year in one week i learned tremendous amount about these devices. had eldest daughter out to beach house. she demand i play pokemon go
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i had no idea except that seattle seahawk mentioned he loved it i played it, noticed three things first a total blast. really was second taxed the iphone. and third, so primitive like pong or donkey kong when i was growing up i suddenly could envision a game to talk to you about in high-res lusion, allowing to talk to people in realtime not yet available but closer and closer i want to see what iphone x can do i know my kids will tell me before i know myself we had to go back to the house because drained battery so
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quickly. two extra hours on these new phones give you more playing time more sophisticated games so more service revenue for apple. and other daughter went on an actual cruise. i've studied the industry and loved it when turned around carnival and richard fein appeared on the show no idea anyone would want to go on the cruise, least of all my daughter it was edm cruise. chance to brand yourself via instagram. show what experience you're having with iphone camera when you do it. phone with better resolution, fabulous makeup, showing people how much fun you're having and pictures look great. video, sound, water is shimmering, hollywood
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instamagic no camera, no experience, it's like it didn't happen. new apple device lets people document that experience with better allows you to brand yourself on edm cruise and posting in wow mode creating something worth watching any of the 50-year-old analysts get that thinking edm is some sort of natural food don't understand anything new because don't understand how 20-somethings use technology to brand and rebrand themselves don't understand silly games see it all as incremental. young people explore the seemingly unexplorable and recreate themselves in setting to friends like big screen movie. that's why these things are surprising and therefore worth the cost young people scrape together money to be someone else and stretch the bounds of
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entertainment. that's why it's blah, blah, blah, instead of wow why the analysts think the stock should be traded and why they're wrong. marylena in california >> caller: thank you for helping me grow my portfolio, you've given me confidence to manage it, been incredible. thank you. >> that's what the show is about, confidence to manage your own port polio, be a better client, investor and trader. how can i help >> caller: question about fina had a great run would like to know if i sell or hold it. >> a little bit off the table is not bad. it's chinese stock it's under the category of
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greed. rob in florida >> jim, big fan. quick question would you rather own snap, twitter or neither >> gun to my herksd i would tell you take the gun away from my head neither. i just feel like -- whatever happened to facebook don't like the high dollar amount go for quality i'm a big believer in quality. just something i like. if you have the right camera, make yourself look at hollywood star, brand yourself but if you don't take pictures, it didn't happen essential for the selfie generation, brush off the apple blues, analysts are wrong. much more ahead. including exclusive with brunswick. can they move past the high seas and start moving higher?
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them brunswick, maker of boats and engines and exercise equipment brunswick stock seemed like got new lease of life starting next year until reported recent quarter. since then slammed reason, when you look at quarter, headline numbers strong brunswick beat top and bottom line estimates, bullish commentary on the marketplace in the united states and rest of the world. unfortunately margins shrunk and seeing weakness in end enough to spark a selloff. finished enough? deserve to be punished in the first place in talk to the chairman and ceo of the welcome back to "mad money." good to see you. >> good to be here >> first i got to ask you, something about boating made it not just a male thing but women? i say that because when i told
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wife you were coming, asking about the table tea pot holders, platform, stereo and hull colors, i prefer glacier green >> we can do it. in fact the value of boats keep going up consumers keep speccing more and more to make it more enjoyable experience. >> when i was growing up, grandfather had it now women and kids want it changed dramatically >> if you go on the site, there's a whole aspect devoted to how to convince your spouse this is the right thing to do. >> tough to talk about but terrible hurricane, and after hurricane sandy, superstorm, everybody has to have insurance. i know this from -- we have a 17
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foot boston whaler everybody needs insurance so we all got new boats when it happened is the same thing happening in florida? you're committed to the area what have you done with the hurricane? >> start with replacements if you go back and look at hurricane matthew, sandy, katrina and most recent one now, the boat aspect is delayed about 12 to 18 months. priorities are getting your home, roof, life back to normal. getting checks from insurance company, all those things. other part is some people return to boating through used boats. not all new replacements i think first thing is huge parts and accessories business 25% of the company you'll see some of that as people repair boats and over time pick up new boats. >> i understand your company has been charitable when it comes to what happened in the hurricane. >> i don't want to say we ever
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get good at it but we're barrette good protocols and systems about what to do and where. particularly with hurricane harvey, we devoted -- made a lot of boats, engines, available for the rescue operations. >> that's terrific wanted to ask you, there wasn't a comment and there is a chart that shows unfavorable increases in warrants across in legal expenses and another showing highest not doing well did that knock the stock down? overall a pretty good quarter. >> hit by a couple of things, marine max, mix to bigger boats and people read into that for us secondly, big boats in perspective, less than 4% of brunswick's revenue and even less of our operating income people focus on a very, very
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small portion of our corporation. >> you've also diversified very well into exercise equipment how big is that market we've had planet fitness on, done work with lifetime, growing like mad now it's private. is that the best customer? hospitality? where are the big customers for equipment? >> 90% of the fitness business in commercial space. 60% club, 30% is verticals, hospitality, multifamily housing, education, military, those things. >> rehab too >> also. but military is more for deployment and bases and those kind of things but made three acquisitions, cy fit, rehabilitation for baby boomers, and secondly indoor cycling group, icg, to take advantage of the trends in group
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exercise also cybex number one player, bought fifth largest player. >> two for two boston whaler as you know. one last thing, in your deck, talk about the popularity of fishing. not selling as much fishing gear but business is good one isn't it >> number two activity in america, millions of people fish i think that's one of the misconceptions hl of a lot of volume is people who fish, go on the lakes. time with buddy and family and grandchildren. it's a lifestyle those are middle-class americans. >> something everybody has in common i find it's greatest investment for fun. i'm endorser what can i do?
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for years many brick and mortar retailers have struggled, crushed under the boot heel of amazon's online dominance. lately been bouncing back. continual theme of mine and as i told you last night, it's real one that can make you money. highlight a traditional chain that's been thriving for years now despite that core business is at epicenter of the amazon blast zone stock of best buy. five years ago, looked like this
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electronics retailer was road killand regularly dismissed as showroom for amazon. remember that. go look at speakers and order off the web for lot less money then jolie took over as ceo and roaring back stock quad rupling over five short years. one problem with the stock is so darned strong. rarely opportunities to buy it, price breaks almost never a major pullbook and when you do, rebounds. that's why it caught my attention two weeks ago. 12% in response to cautious conference call commentering seemed wildly overdone to me best buy bouncing back but down $5 from highs and lot of big cattles coming up in nextto weeks, that's why i think it's
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not too late to buy the stock of bby. before we get into details, understand how best buy turned itself around. when he took over, rolled out initiatives to stem the bleeding, get the business back on track how? improving the customer experience at best buy stores, developing a stronger digital presence and offering unique benefits and membership programs home theater systems that require extensive setup. any business you need human assistance is harder for amazon to take away real service business and they help old guys like me make good choices for my kids. i understand how they work, install and help out in a jam and shut down underperforming stores and cut costs most important, best buy become one of the most shareholder
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friendly companies on earth. ramped up dividends and playing series of special dividends, and got aggressive with the buy back repurchased $1 million worth of own shares to spend over three years but then announced other one and boost to regular dividend and 45 cents special dividend supposed to last two years and best buy said already spent $750 million of the previous and announced $3 million buy back. in short, last few years best buy has been a capital return monster. that's really helped propel the stock. at the same time jolie declared victory on the turnaround program i talked about and next phase, maximizing multichannel business and providing new services
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instead of selling security cameras, security monitoring and home service accelerating in canada and mexico you can understand why believes turned the corner. 2017 fiscal year increased earnings per share grew at 48.8% clip that's another reason i like the story. reason i'm talking about it right now is simple, best buy stock is pulled back latest results a little more than two weeks ago why? wasn't the headline numbers. delivered a six set earnings beat off 63% basis and sales increased 5.4% and guidance for next quarter incredibly strong. took my breath away, forecasting 4.5 to 5.5 same store sales
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growth that's flat-out fabulous these numbers make me feel like got its groove back. why did the stock plunge nearly 12% in response? to be fair, after you saw the numbers but before the conference call started, best buy had rallied 5% in premarket trading. numbers looked good. but call though, management made a few comments that spookd investors. first they said, going to quote here we do not believe that mid single digit comps are a new normal end quote. don't get used to 5.4% same store sales numbers. most damning thing, chief financial officer corey barry used worst word that retailer can say, competitive repeated some variation of that word five times.
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first time innocuous, she said it's hard to predict the third quarter given the promotional nature and competitive nature of the quarter. that's forgivable. but then asked about the strength in the gaming business, driven by nintendo switch. started off strong talked about doing well in the category then quote, as you think about what changes in q4, i think you have to recognize the competitiveness around gaming hardware and in particular whether or not this growth rate continues through q4 more broadly. less encouraging and asked what company is expecting second half of the year, mentions good things and new iphone but once again fourth quarter highly competitive environment. that caution, competitive,
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promotional, it freaked people out. investors sold willy nilly, worried that best buy was going to get slammed end of the year i think it's must ado about nothing. knew electronics was competitive space and holiday season can be promotional. not was reveltory. best buy competing and thriving for years now. recent pull back gives you chance to buy the stock. first since 2013 and timing couldn't be best i wish i had been around last week to pound this earlier because it's moving up still ideal time to buy. holding investor day next tuesday and i think management will lay out growth strategy in more detail. and iphone x, they have a great relation with apple. i bet they sell a ton of them
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and the accessories. $2.2 billion left in prepurchase -- plus they watch the show and i bet they lay off promotional/competitive gibberish from here on out i hope they do high quality stock marked down for wrong reasons, back up truck. best buy is high quality and already starting bouncing, i think bby could have a lot more room to run. "mad money" is back after the break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.
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>> caller: ignore the haters watched your show last week, watch it every day but, you know, every time a man comes up, ten trying to take him down. >> i ain't got haters any more what's up? >> caller: game stop >> it's too hard you know what, think about it, gave a talk to -- activation blizzard so great. ea is great. don't need game stop dave in illinois >> caller: my good dr. cramer. stock today, smell you later international flairs and fragrances, iff. >> last quarter good, one before wasn't i like those guys. i like them. you know what, got to get freddo on from estee lauder they're smoking. rick in florida. >> caller: hi jim.
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eagles boo-yah to you. >> i got that andy reid versus coach peterson but battle for sunday >> can't touch finish line don't go there my friend joe in new jersey. >> caller: hey how are you? >> good, how are you >> caller: good. fm energy? >> no thinking about slummer ge. sean in texas. >> caller: boo-yah from the lone star state how's your day >> good, thanks for asking thinking about buying a boat don't have the money you? >> caller: same here i guess just got out of class. just wanted to know -- >> 17 footers my size -- i'll
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take it offline. what is going on >> caller: lockheed martin watching your show. >> buy buy buy. >> one of my favorite stocks that's conclusion of the lightning round. >> announcer: sponsored by td amery trade. let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
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lately so many brick and mortar retailers rebounding, it's worth asking if we should circle back to retail oriented real estate investment trust reit company spun off blackstone, been struggling. shares down. i think lot is guilt by association. if consumers prefer to shop online, must be suffering. might not apply to brixmor tj max, dollar store, just to name a few dig deep we are jim taylor, new president and ceo of brixmor property groups. good to see you.
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>> thanks for having me. >> talk at merrill lynch said, started saying this, odd way, internet is highlight the need for bricks and mortar in way that maybe didn't exist before explain that >> you know, it is against the broader narrative right now, narrative about bricks and mortar versus online retail. and think what retailers who are thriving in this environment get, it's really integrated approach to serve the customer and internet is part of the businesses that will thrive but not necessarily replacement for the physical presence of a store. if you look at amazon's recent acquisition of whole foods, very important point is in their obsession to serve the customer, they think the store is important. so again, think when you see these retailers who are pulling
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stores away, they lose online sales. >> you're the largest landlord of kroger, it's cut in half because company has to meet this challenge and not necessarily ready. what do you do good that stock is in half, you get worried. >> always kpes kpla competitive. and kroger will continue to innovate and there's new entrants, amazon and others as landlord need a good location with tenant doing good sales and providing reasonable occupancy cost something we as company are uniquely positioned. >> went on your website, you have a great number of areas where you are storm -- houston, florida, how are your centers doing? >> thank you for asking, jim
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we have over 130 centers in path of irma and 50 in the greater houston area happy to report we got through it largely unscathed modest damage at properties but team has done phenomenal job of getting properties back up and operating, grocery stores running. i can tell you today very few aren't open. >> also on your site, very transparent, satellite pictures that show vacancies. where are you in terms of total leasing? >> overall occupancy is 92%. what is most important is what we're doing from forward leasing standpoint, in terms of the volumes of deals we're doing, rent spreads, speak to the tenant demand to be in our centers, 30% range, and created $43 million of new rent above
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what was in place. >> someone asked about k-mart, people are concerned a lot are closing. you said they're a shadow anchor at some places and shouldn't be concerned. what does that mean? >> for certain centers might have shopping center with k-mart located next to it for us that's not significant exposure we have 16 k-marts in the portfolio but as landlord i have low rent basis, so lot of flexibility to respond. >> if worst happens, not worst. >> it's opportunity for us to create tremendous value. done it successfully >> last time we had your company on withmichael carroll, and yo had accounting adjustments are those behind you litigation or prosecution going on >> accounting adjustments definitely behind us board took quick action to deal with the irregularities, s.e.c.
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investigation continues but we believe as company we're moving forward. gotten a clean audit opinion and really are focused on changing the culture of the company to realize the great opportunity we have embedded in what we own. >> consistent company. why did anyone feel they had to smooth out earnings? >> i can't explain it either. >> don't know why people do things that are wrong. >> no. >> when i look at all the things going on in the world, i'm thinking if i close my stores, actually would hurt my business on the internet wouldn't i >> you do. there's a tether between what happens in the store and online with customers around the store. many of the better retailers are seeing that, thinking about the productivity of their stores, not just including what is happening within the store but around the store from online perspective. >> you turned down some
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companies? we want in, you look them over, you're not right for us? >> that's my job create competition for the space and work with tenant we believe will drive the best long-term growth. >> do you think there will come a time that people will understand the new nature, tenants that you have, shouldn't be concerned and realize that 5% yield is bargain >> i certainly hope so, jim. point to continued success we have leasing the properties with better tenants at better rents we're using this disruption as time to grow and improve as company. >> that's what we want to hear jim taylor, president and ceo of brixmor property group website is transparent, great deal of information. stick with cramer. the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders
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