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tv   Mad Money  CNBC  November 6, 2017 6:00pm-7:00pm EST

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tasty burger >> is it a tough job >> it is a tough job you can cut yourself with the scallions. >> but dan mentioned double bottom shack will get you done. thanks for watching. my mission is simple, to take 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 cram america. this time from san francisco my job not just to intertan by to educate and teach you call me at 1-800-734-cnbc or tweet me @jim cramer even as stocks continue to power
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higher, nasdaq climbing .33%, we keep hearing obituaries for this market will the alleged cause of death will something natural like old age or stocks went up too far too fast given the fundamentals? will be slaughtered by the disappointment out of washington maybe -- just maybe the grim reaper's being held at bay by a series of positive events closely tied to the nature of how companies are doing, hence the continued sense on both wall street and main street that there's value and then there are hills. or at least values and then prices just look at broadcom's $105 billion hostile attempt to acquire qualcomm
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the thing about technology is skeptics don't understand how the industry has gotten so much bigger certainly the stocks are valuable with trading. the tie up with disney and fox, the story broke earlier today where disney will be buying the non-sport part just like broadcom trying to buy qualcomm, a disney fox deal make it so there'll be less concentration on one product in this case espn. fox is worth more to disney than to wall street you the shareholders are the ultimate winners disney fox seem to be dead at the moment now broadcom bid for qualcomm is
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a bombshell buzz it's huge and hostile. the ceo, who is one of the best ceos in the industry the only reason we don't think of broadcom being an important player in the food chain is because apple suppliers play by the same rule as fight club. broadcom a is more content in the iphone than any other company on earth qualcomm is selectall quality. nothing good can come from fighting with your largest company, and largest company in the world, so qualcomm's got a
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problem. broadcom has been viewed as somebody who has a significant view with its customers. the options of this deal being complete seems pretty wrong. qualcomm has been held back by apple. however i'd argue if apple prevails in court against call come which is a responsibility, the shareholders already modern lane to tender to anything in qualcomm let's step away thou, think more about the returns behind it because it has to do with a much bigger thing put simply, many other industries we have too many
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semiconductor companies and they're dpeeting for more business same goes for disney fox, too many companies fighting for the same consumer. many doubters just don't get it. the people telling you that this market's done for are only considering the earnings assessment they're never looking at take over values because they haven't been able to gauge the worth of one company to another or one entertainment company to another. tech has become more than cell phones and personal computers. both of those potential deals show you to worth of these chip makers beyond what we're willing to pay for the earnings per share and the worthy worth of
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entertainment. maybe disney has franchise models and they why they covet fox. the qualcomm and disney talks, they're so huge that they overshadow another combination in the semiconductor land, marvel tie up with kaftty. marvel's way too be hold in the industry cannon is -- you buy the two and it changes the stock again, defensive but loved by wall street, which for the most part hate it had two companies it matters people. now, there are many people were saying this successful merger springing up every where, i'm one of them but i also recognize that it can be failures. on friday we thought there could be a additionally between sprint
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and t-mobile then sprint's owner put the -- on the transaction and that brought both stocks down badly i think t-mobile stock, now that it's down is a buy i think i'm an outlieier here and that's why the stock was crushed. i'm hear talking of consolidation within the oil patch now the the price of crude is at a 2 year high. just like the semigroup, just like the entertainment group there are way too many oil companies. the only way to jump love these levels is to merge, something the bears may not be able to imagine but something that hasn't happened yet. the skeptics wants to judge stocks based on their price earnings which seem to get more expensive by the day when you look at companies the way ceos and the way entrepreneurs do as take over market, then there's more to this market than you think
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in the real world, there's much more than one way to value a company. the coast of buying all the shares, not just a percent over the shares like a regular money manager would. right now merger potential is driving this market as much as anything else. let's take some calls. alex in california >> hello dr. cramer. >> how are you. >> caller: a west los angeles booyah to you. >> what's up >> caller: jim i have a question about your long-term outlook on a leading fie bro optic technology company the price went down 25% on china and data center weakness now it has a pe of 7 as in one, two, three, four, five, six, seven. what do you think? >> i'll tell you i was on that call, that was a huge mess
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i think when you have a miss like that you have to wait three months you can't go in there bet that its done this could be the first of what could be many really bad quarters i'm going to take a pass on that onism bill in florida. >> caller: hello thank you so much for all those long hours youdedicate to helping us being independent i've been able to provide a better quality of life to my family >> then i did good what's going on? >> caller: what do you think about alaska airlines and the virgin america deal? >> you know, people are not liking that deal i thought it looked like a good one but this company is no longer making its numbers. this company was buy clock work and not anymore. we're going to stick with southwest, even as the whole group seems to be coming down.
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james in florida >> caller: booyah dr. cramer this is james from atlanta >> how are you >> caller: i'm great how about yourself >> well i'm looking at the falcons scratching my head not sure what's going on >> caller: you and me both i want to get a take on stamps.com s tmp. the stock got hammered last week so i'm a little curious as to if it's a buy, sell or hold >> we've looked at there and we come back with the same thing, which is this is really hard value. it's been a gigantic short squeeze and we don't mess with those battlegrounds. don't let the skeptics distract you when you look at companies as take over charges as enterprises there's more value in the market than you think on a special on more "mad
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money," google announcemented a new partnership. will a combined power create a force to be reckoned with? paypal added a verb to the english language, just venue moe me we're going to find out what that means i think the place has got a lot more place to go stay tuned to find out more. sure the tech market is a site to behold is it time to shift your company to boeing and caterpillar? i'll tell you if the industrial bull market is still going strong so stick with cramer
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every year i like to come out to san francisco and around this time, because this is when sales force.com, the big service company holds its annual dream force conference kind of like a tech -- and most important, learn sales force has been on fire lately today it raises fiscal 2019 revenue guidance and the company continues to grow like a weed. the stock has rallied almost 50% year to date earlier today i was able to sit down with mark benny the visionary c visionary koe founder and chairman take a look. >> mark, i see some big characters behind us, i see einstein >> yes
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artificial intelligence. >> ion steeinstein was just a pt >> we're all getting mather. >> what's the theme this year? >> dream force is taking ai and making them so easy to use we can all get access for them. every company can be part of the industrial revolution and every company and individual can become a -- >> but the majority of people watching the show hire fourth industrial they don't even foe about the third. maybe a little more less jargon. >> well we all know we're in an incredible time for technology artificial technology, nan know technology, all these technologies are hitting us at once and that's the fourth industrial revolution. the question is what are we going to do with all these technologies is it pretty more inequality
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is it dividing us? in some cases it is. or are we going to use this technology and raise ourself up and create more equality, be more connected and be united that's why the people here at dream force has been able to come together. we have 170,000 registered to be here and 10 million online i think we have to make it so that people don't have to code but they can do clicks, not code, they can configure and that's what our platform is all about. we're creating a massive sales economy will millions of jobs. people can go to our trail platforms shlg learn how to use these technologies, change theirs and get on this training and go with us >> why you for $10 billion seat 20 billion why even set that goal up? most guys underpromise to
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overdriver why do you promise when it's kind of taking away from your hand >> well, you got to shoot for the stars. if you go somewhere you got to figure out where you're going. we've become the faster software ever to $10 million and we want to be the fastest to 20. we're working so hard to do that they have to contact with their customers in a new way >> now, there are other companies, for instance, a sap and oracle they'd prefer you not to get to 20 billion how can you outsmart companies >> our customers is going so much fast r than the customers using those old technologies our customers are just faster. it's easier to use you don't have to be a programmer to get going. and big companies are here
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adidas is here they transformed the entire business of sport. >> and fox is here >> oh fox is here. they're rebuilding how they're building media we're going to show that today at 3:00. people cannot believe what can happen in a modern studio connecting with their customers. >> that may be the division that disney wants -- >> all of fox course we've been working on, fox is a critical component. you can do it today with data. we've been talking about this jim for years, right with the cloud and social and mobile and now ai all of these technologies coming together give you as a ceo the ability to do thing that your company would never be formed as possible that's why we have the ceo here to talk about it. >> mark, it used to be veteran's
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day. i understand the va has been trying to figure out how to get in touch with its people >> let's talk about two things every veteran deserves world class customer service, the kind you get, you're going to get through the va the va has signed on to transform their customers the veterans and we're trying to give veterans jobs. we're trauning them using our platforms so they can get jobs in our customers and have these amazing great careers. >> when you see resumes these days, i see one that hit my desk and it says trains in sales force. can you blaef thelieve that hap? >> it's all coming out of the platform, you go to trail head.com you can learn how to use all of
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this stuff and we bring you along, come to our conferences, not just here but all over the world. we're going to make sure you're part of the revolution and not get left behind. >> you taught me soshl mobile cloud artificial machine learning where's your social? >> social is at the fabrics of how sales force work when you're building applications on sales force like how home depot has it's all integrated in a social media-type frame work. we all let you connect to the external frame networks like facebook, twitter and others and bring that data in your property and talk to those customers. >> we've been speaking with that cat tee -- >> the connected motorcycle. >> right, the connected motorcycle versus the non-connected. the connected motorcycle is something millennials want
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they just presume that you have it people that don't have it, don't have the millennials how important is it to reach the customer before they made up their mind about what brand they want to chose? >> your great opportunity for your customer is your last customer all of you customers are on a journey with you you can be on a get back into our business journey, you can just be on a renewal journey the company's doing a brilliant connection with their company. they're going to have that deep relationship with you, that's so powerful, that's what marriott is doing also. they realize loyalty is dead they want to have this huge community map out where they are on their journeys and get all the customers into their marriott hotels. walk in have a great experience, have your key on your phone and
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welcome back to particular yamas the customer experience. >> that doesn't sound like the loyalty program. >> loyalty is dead >> okay. >> because it's all about your community, isn't that how you buy from your friend >> yes when i think about community i think about strategic partners, i think about long communities that have figured this out >> you're going to see us do amazing new thing with google. >> google? when amazon is your partner. >> we have a phenomenal relationship with amazon, dell, cisco and now google as well >> they're fine with us? >> our whole industry is about customers working together to satisfy customer needs and we need many partners so we can satisfy all the needs of our customers. >> mark benny our
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founder/chairman and ceo >> thank you for coming to san francisco by the way >> i'm not don't stick with cramer. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.
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prevagen. the name to remember. today's sales force had some exciting news. the company's teaming up with google to help customers become more productive and offer great insights across the business i had the opportunity to sit down with mark benny and google executives, diane green, the ceo of google cloud. and the senior vice president of ads and commerce at google let's jurn in. >> mark of all the years i've been following sales force it sound like this may be the ground breaking partnership. explain that to us >> we have great partnerships, amazon, cisco. this is an incredible moment in sales force history. we have a fool relationship with
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google we have too amazing executives with she rhie dar and diane. he runs the advertising business >> accelerating revenue. >> and diane whose on the google board by runs google cloud, one of my personal heroes for almost three decades. incredible and now sales force and google are coming together for the first time it's the best of both worlds i couldn't be excited. >> why does google need saelsz force? >> well google loves to partner and google cloud loves to partner. sales force is going to zsh the two together do for customers what's not possible of course. we're also generating with sales force and giving a nice way for people to adopt super easily what we hear from our customers when they go to g suite it
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really transformed their culture. they get more productive, more claptive so, when we can integrate that with all the sale forces products, then all of that productivity goes to all the sales forces customers and we think it's like a tremendous thing. then to do it on google cloud, can't get any better >> okay, please give us a sense of how you get in touch with the consumer using sales force, because you've already been i felt, the best at being touched with the consumer. is this at another level >> this relationship addresses the number one request that we have from our customers. our customers want a holistic view, a total view across all the systems. this has really a first integration that brings all of that information together, so you can do better things you can send a better e-mail for marketing. you can show better ads and you
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can gain better insight and give them better offers when they come into your store both online and off line this makes the partnership exciting for us. >> diana a lot of times when i hear about google services, i think well, you have to beat amazon great services. why doesn't that bother you? >> well, i can't say i was happy that he announced aw s before he announced us, of course. >> see >> but that's okay >> the history of our industry company is working well together diane knows -- >> is that worg -- >> when diane was said of m wear they work well for everybody we all have to work best with our customers. this is the full power of
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google this is about information, this is about advertising, analytics, productivity and the power of google cloud united with the power of sales force we have to bring both companies together in this very very smart way. >> i know a dream of yours is to be the biggest web services. discuss it move the needle >> absolutely. i dream of being number one. i think it's possible. we're making unbelievable progress and i think having one of the largest venders running on our cloud underscores how enterprise ready we are. >> the numbers we saw last quarter, great in the united states, unbelievable in europe, what is happening in advertising in europe? >> so, we've always focused on ads being very relevant. the great thing about google
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search, for example, we on base with the consumer first. ads are an sbe gradual part of that the more we focus on user quality, the better result we get. we feel like this is a continuation of a deep set of principles what we're reallyexcited about in this partnership is something like this has the potential to turn the notch up a little bit more, to deliver better ads. better insights for our customers and very experiences for our consumers. >> he really said it beautifully. you look to google, you see there incredible world of information, you see the advertising but you also get google google an lit ticks. and that coupled with sales manes our customers are going to have more insights than never
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happened before and that's great. >> i think google understands a good amount of what a customer is after i pretty much focus on the enterprise >> honestly the quality of google comes because when you think of something that you want, what to you do, of course you google it. it's being at that right moment that let's you show that amazing ad that makes the sale happen. that's why advertising seems to be relevant both for the user and top line >> i struggle try to explain to people -- first of all to have you guys on camera, thanks so much is it campaign america, venders, is it batman teaming up with superman
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>> where it is woman >> there you go. i am way to narrow in my thinking >> that's a key theme here as well, the conference, i'm glad she mentioned that >> let's talk about the advertising cue. how much does the advertisers need google in terms of the director/consumer? one over the thing i've seen at every both i go to it's about being sure zsh there's no more b to b or b to c, you can google i want the best earth moving machine and caterpillar's there. how did this happen? you use to have to go to a dealer, you guys changed that. >> and it's always there, availability, instantly it's amazing what google cloud can do >> you focus on the consumer
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name you look at what they want to see when they type in the inquiry. it's the focus on getting you the right piece of information you're looking for >> now, what happened to print does t.v. work i am with these consumer product companies and they are take 35, 45, 55% of the budget's going to you and to facebook. this is happening quarter to quarter to quarter so the results must be the proof. >> yeah well -- >> we're happy with our results. >> no really, diane something's happened here. >> something's happening here at dream forest that's for sure >> the world has changed younger people did not buy their things the way we did. >> we all see that technology is changing our world and we see a lot of ways to make it change our world for the better we have to do this collaboratively with the entire world. >> and you like him too don't
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you? >> yeah, well he does a good job. >> she's one of my heroes. >> you guys are all our heroes and it's a big deal. thank you so much z-- not to -- i've been begging her to come on >> jim, welcome to dream forest and thank you for being in san francisco hopefully you'll come back >> mark benny. diane green, senior vice president ceo of google cloud and then she rhie who is the anyove mh s commerce at google thk u ryucto all of you. stay with cramer
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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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jack: this ridiculously long table in the middle of nowhere? jack: to invite all my friends in the industry to try this. jack: fast food's first ever ribeye burger. jack: made with 100% ribeye beef, grilled onions, a red wine glaze and creamy havarti cheese. jack: ahh, here comes the competition now. jack: and of course, since they work for my competitors, i've obscured their identities jack: except for this guy. jack: he is so screwed. jack: try my new havarti & grilled onion and all-american ribeye burgers. ♪ a few years ago what i call the non-neglect by wall street, paypal's getting the attention it deserves. the reason's very simpling, paypal's doing well.
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last month the skpaen reported a blow-out quarter the mobile payment service increased by a stagger 9.3%. no wonder paypal has been getting the love i'm thrilled to see in san francisco, dan shulman who is the ceo of paypal. find out more about what his company is doing and where it's headed mr. shulman welcome back to "mad money. this quarter was the quarter people are starting to recognize that it is a network effect. you are no longer out there by yourself, it's an ecosystem. it's been that way for a while but why are people starting to recognize it >> i think two thing are happening, one our results are strong our revenues are up 23%. our cash flow $840 million and
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quarter up 36% the stat that i think caught the most attention was our net new subscribers, 8.2 million and the quarter up 90% the results are strong and good. i think the other people are seeing that digital payments are exploding. cash, checks are beginning to dissipate. people moving to mobile as you mentioned. i think we're at the global innings. >> this is payment processing but you talk about how people like the digital experience. is that versus say credit card, check, whatever. what's clear is the millennials, in particular they like this process. how's that possible? >> i think if you think about the under 30 generation, the millennial generation, they grew
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up with a screen in front of them so, they think about every day processes like payments differently than you and i do. the public, private boundaries are different than what you and i grew up with so for venmo they put a tag or emoji on everyone of their payments it's a social payment experience and they love doing it they open the app just to see what their friends are doing it's very different. you have to, to serve these markets, reimagine how money can be managed and moved there's going to be more change in financial services. >> you and i have talked about there, you are still saying listen, venmo is to precious to start monetizing but it's in the plan and i think what matters is that's your stock.
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you're not trying to take 3 cent per you're trying to get it where everybody uses venmo i think that's part of the joy, as more people get in it more people realize how better it is to use >> i think we're trying to build a enduring and great company over the long term that's will be understanding the needs of every segment of the market and really being very careful to deliver a delightful experience to them we did a major change about a year ago where we opened up our flat form, we became a third-party platform and offered customers full transparency and the way they pay that flipped our whole business model to partner with the whole ecosystem. i knew that was right in the media for long-term in paypal
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and for the short-term as well if you're going to build a great company over the long-term you have to be consumer and custome of champion. >> i think its got some people spooked. people say, jim, you love paypal, at 89 billion, visa, how to you get a nut i come back and say you sound like people who -- what has amazon being worth $50 billion what they didn't realize it's possible -- could be worldwide one day, what people don't get this is conceivably the amazon of payments. it's not mastercard, not wells fargo these are part of your e competent system, everybody knows they have to do business with you because everybody wants your clients and your guys are agnostic >> absolutely. we're truly a third party rkts
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we partner with visa, mastercard, discover, jp morgan case, city, facebook, so across the world we're partner. the thing that i would say we're at the very beginning of this payment explosion. p to p or person to person payments today it's 35 to $40 billion. in 5 years or so that's supposed to go up to $335 billion online digital payments today are about $3 trillion. about 2020 it's supposed to be over $8 trillion and we're a leader in that market with 218 million people using the platform so we just got to keep dplifring on what customers wanted, merchants want and to stay that market and leader. we're at the early innings of digital revolution >> i know we're out of time, but you've done a remarkable job
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hiring veterans, and if you can tell people why you do that. >> the veterans who serve our country deserve a tremendous amount of respect from all of us they are leaders, they know what it means to be team work, to work with each other they work under incredibly stressful situations, and we have an affinity group at paypal, an employee infinity group called serve that is a support group for all the veterans, we reach out we act tifrly want to hire veterans they have incredibly leader skills and we recognize that and want to hire more. >> the president and ceo of paypal this stock is not doing going higher "mad money's" back after the break. t-mobile family plans now come with netflix included.
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roger in maine >> caller: booyah jim. roger from maine i bought into olumber liquidate. i sold some and held some. considering the third quarter was not as good is it time to take the remainder and sell it -- >> yes and i'd rather put you that money in home depot. douglas in california. >> caller: thanks for taking my call dire straits for stock ayi chewing brand? >> it's not dire straits it's unexciting straits i think this is one to be avoided at this point. jacob in florida >> caller: hey jim this is jacob from florida state should i buy the trade debt,
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ttd? >> i know we keep waffling on this one because i keep thinking amazon, fwoog l, someone -- goaling, someone's going to wipe them out in the meantime it's doing great. i think it's high but you're on your own barbara. >> caller: thanks jim from taking my call i appreciate the advice we get from you my question is adt should i hold it or sell it? >> i think it's up on a lot of the hype that bill actman is saying what it could be or could not be worth to me it's overvalued stock because it's run too much. i would like you to ring the register on part of it mike in florida. mike mike what's up there well i got some one speaking in
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tongues. joshua in new york >> caller: mad jim booyah my friend this company technology may help your bud by look more like pena, talking about universal display corp too late to buy or is it warmin up >> i have been behind this company for a while now. people hate me for liking this company. they hate me for being right it's going higher. that's the conclusion of the "lightning round." h an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners.
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♪ with all the hoopla over the techal market, we can't forget the industrial bull market continues to stampede all over the place. let's start with aerospace which is one of the most powerful bull phases i can recall. it's been considered a cyclical up and down industry in particular i've seen boeing stocks hit highs in a two year time frame not this time though there's to many demands for planes same with honeywell and united technologies new technologies to make engines
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lighter and make planes more connected. there's much more to these companies. honeywell's a fantastic automobile turbo charger franchise. they consider the surger you're seeing part of this is about the directed consumer business that -- away from the network. i think it gives them a competitive edge while it's only a fraction in size of caterpillar you got -- here's a company that's written off as a casual industrial slow down, now there's no slow down there's an acceleration. that's how manitivoc stock rallied this year. it's probably not done going high how about illinois tool works. itw. not that long ago the stock fell dramatically there's so much more to illinois
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tool works welding, all within the concepts of learning its customers' needs. the stock took off i'd argue it should have never been down in the first place then there's deere here's another company we thought was silly call now that deere has cut tremendous cost, this market -- instead you get that kind of steady line you see from the drug companies finally you got comets which got slammed because of pressure on its margins. it explain the issues well in the conference call but more importantly they told you many of the businesses are up more than 20% year over year. manmade drug or food company's got that kind of growth. so, missile margins and quality
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doesn't matter the reason these stocks keep roaring because of the synchronized technology keep taking people by surprise. a true rising tie that's lifting all industrial votes stick with cramer. is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.
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ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. ♪ ♪ my ambition? helping people get what they want, understanding we're not in this alone, and teaching my kids that no ambition's out of reach.
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ambitions live everywhere. synchrony financial helps make them happen with data, insights, financing and technologies. ♪ ♪ synchrony financial. what are you working forward to? remember, i told you after facebook reported its remarkable quarter, what you had to do was wait a few days for the insider seller window to open and then close and then you had to do some buying because it was an amazing quarter, the stock will start heading up to 200 where it deserves to be that process is starting already. the stock of facebook may be the cheapest big cap tech company there is always a bull market somewhere i'll find it for you here on "mad money."
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i'm jim cramer see you tomorrow >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ with an easy way to take a comfortable bed with you everywhere you go. hello, sharks. my name is jim pittman. i'm from yorba linda, california, and my product is airbedz, the original truck bed air mattress. i'm here today seeking 250,000

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