tv Mad Money CNBC January 3, 2018 6:00pm-7:00pm EST
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the credit suisse bubble popped, now it's ramping up again. >> be safe in that store there, mel. >> bomb cyclone. >> bomb cyclone. micron is a bomb cyclone that's a good thing. i'll tell you what happens afterwards i'm melissa lee, thanks fo ♪ my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money," welcome to cramerica other people want to make friend, we just want to make you some money my job is not just to entertain, but to educate and teach you so call me at 800-743-cnbc. how many times have i told you that the gains from the tax bill
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are already baked into the market how many times did the chattering classes tell us the move's been made you'd be a fool to start buy now. after another good day where the dow gained 99 points and the s&p climbed 4.64% and the new highs across the board, who looks foolish now? baked in my derriere. clean this up a little we're all going to die look, every morning i peruse -- every morning i peruse the research published by major wall street firms you get a mixture of ten upgrades and five downgrades and most often you get a price target boost because the stock has overrun the projections. that's about as bullish as it normally gets. today, though, today, i counted 29 upgrades of significance and two downgrades, two baked in baked in
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are you kidding me baked in i am done with that! i am done with hearing about baked in this is the official baked-in cake, and i am taking care of it right now. thank you steady cam producer for my boeing knife. why are we getting these upgrades -- oh, i'm on a diet i'm on a cleanse give me a towel. that's no way to start a cleanse! the recommendations are included and estimate bumps -- tax reform tax reform that's right the very event that was supposedly baked into the cake that all of the gray beards told us was in this already they said was being overblown is proving to be the main reason for most of these positive analyst reports and upgrades which makes me wonder, where are all those people who kept you out of the market because they thought the rally had run its course where are the bears? are they hiding?
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let me look. where are the bears that told you don't buy now because tax forms already are well known frankly, i am outranged, ged. i am surprised that tax reform and hardly anybody the bill would pass as late as november and it occurred so quickly the analysts didn't have a chance to revise their estimates and now we're getting upgrade after upgrade of any domestic company that's even remotely a full taxpayer look at all tulta beauty becauss getting a tax cut, same goes for dave & busters, oracle and general mills. take waste management, a longtime cramer fave, follow along by the actionable trust.com club this morning's research, legitimate firm, raced its price target for waste management from
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$79 to $114. why? because of the baked-in tax reform i could use some napkins anyway, licking your fingers when you're on a cleanse, let me tell you, and when you're at a mexican bar, i have to stay with the tequila. anyway, you know what? i think these are all buys every one of them. ulta has spent enough time in the bear's den to surface without too much worry about competition from amazon. dave & buster's can take the newfound money to expand and it's got plenty of places to grow and plenty of money to be made on liquor and the silly games like the claw that we get to spend $50 on to get a three-inch tall bear i'm not kidding issue the claw how much money have you lost on the claw what are the margins for that business as for dax why not? if footlocker can do better and nike and each underarmour is going up it was not as bad as the bears made it out to be.
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general mills delivered much better numbers and the peanut butter chocolate cheerios and not the millennials and why not upgrade the sleepy, but once great company, and waste management, while the fabulous quarter thanks to the post-hurricane cleanups in texas and florida, and not to mention the home building boom can the stock hit 114. hey, it's only at 87, but at this pace, other analysts will have to raise the prices and the whole thing would have to start all over again you see, it wasn't baked in. that's the point oh, well hey, it's okay it's an -- it's an old zynga anyway, you know what's truly amazing about these recommendations? all throughout the tax debate we heard companies were just going to spend this money on buybacks and dividends, meaning only the rich would benefit but if all of the recommendations based on tax reform they looked at this morning, the only one that seemed geared toward possible buybacks is oracle, and i think
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even oracle was about to go on a hiring spree to handle the licensing businesses which were better than expected not only that, but many of these companies are going to buy plant equipment to take advantage of the capital expenditures and it's not just benefiting shareholders, people a lot of so-called experts scoff at the $1,000 bonuses many companies are now paying their workers. now, i've heard that it's gimmicky gimmicky i've heard that it is just a way to sell people on a tax cut that mainly helps corporations. i say wait a second, wealthy cynics the last time there was a tax break for corporations the repatriation of george w. bush in 2004, i don't remember bonuses at all, just buybacks and dividends for the workers. not only that, while wall street may spend $1,000 on a couple of california cabs and i'm talking about sauvignon, $1,000 is a lot
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for most americans there was a time when there wasn't a neck toll my name and if someone would have given me a $1,000, i could have done a reorg. fellow main house, beach house folks, this is something huge and unprecedented that may be too darn rich, you may be too darn rich to realize sometimes it's downright miraculous take dominion. dominion energy bought the bedraggeled scanna. >> sell, sell, sell! >> a south carolina outity that's been raising rates to pay for huge overruns in nuclear plant construction what did dominion do what did they immediately announce that they announced that they are going to give 1,000 in cas payments to all of scanna's customers who have been crushed by the price hikes to pay for the nuclear power plant. do you think that's chump change it comes to $1.3 billion for dominion you know how good a deal this was? the purchase will be immediately
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adityive to dominion's earnings. it may be snowing in south carolina or was that a shower of c-notes drifting on people's heads. it's raining cheese! hallelujah it's raining cheese, amen! the critics will be out in full force saying this is madness and everyone knows that tax reform is a reason to pound the table when there wasn't one before, but these upgrades are working and they are moving stocks i used to work at one of these big firms and let me tell you what's happening, right now, right now! if you're an analyst that covers individual stocks the director of research tonight knocks on your door and says did you see how much united technology has jumped on that upgrade did you get a look at the rally? how about five below i don't care how long you have to stay tonight. i don't care if you don't like any of your stocks, i want you to gin up a buy recommendation and have it on my desk tomorrow morning and i want you to get on with sales people and you start calling accounts and you start pounding the table and go make us some money.
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now i saw that happen repeatedly in the '80s and '90s, but it's been 16 years since i've seen so many recommendations that actually moved stocks and moved them big believe me when i tell you it's contagious guess what we haven't even heard from the tech companies that are going to repatriate money yet and we haven't heard from the semiconductor analysts who said the there ared onnels, and this stock rallied 14 bucks do you know how many people have spent some time in the doghouse which is a turn, by the way, given that my own dog nvidia has been moping around the plate yeah i didn't officially change his name with nvidia or the aspca or whoever keeps track of these things, this answers to nvidia here's the bottom line we're going into earnings season right now. the analysts are under pressure from the research directors to
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pound the table. they want to get ahead of when the companies themselves take the estimates up and guess what? this was day one of the process! baked in i think it's just getting started. why don't we go to david in my home state of new jersey to get things started david! >> caller: jim, love mad money and the morning shows with you and david faber. >> that's a dynamite show. we should bake a cake on that show what's going on? >> caller: excellent it is very informative and equally important to me and entertaining, you both crack me up, i love it. >> it's a business show, but we try to keep people engaged what's going on? >> caller: okay, december 282017 goes to my watch list, percentage gainers, i saw a lot, afrmt w-a-tt and sold it the next day
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and very happy >> that's good considering the critics, what's your outtake >> i see this trading like a mad man every day and i have got to do more work on it this is the top of the show and i have to own the fact that i don't know enough about that thing other than it jumps around constantly let me get more, but congratulations on making money. how about nigel in california? nigel! >> caller: good afternoon, cramer and happy new year! >> totally >> caller: i'm calling about novartis and their acquisition of advanced accelerator which is the symbol aaap. a company that did a really good job for me and i made quite a bit of money and now that novartis has taken over, what do you think of the company >> i like novartis very, very much i think they do a lot of things right and i don't think they're getting enough credit and i think they're an excellent company and an excellent buy each up here okay, okay, everybody.
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it's raining cheese if you're in south carolina tax reform is not baked in can we understand that from now on this is what this was about to show you it's not baked in i think it's just the beginning. on "mad money" tonight, i'm checking the dogs of the dow and to see if those puppies can be your best friend this year there goes nvidia and then is there still time for a place in your portfolio for children's place after a phenomenal run i'll take a look at what's on ahead for the retailer and a company that can help you stick to your new rear's resolutions like not eating cake and being on a cleanse don't miss my exclusive with the ceo of mind body and stick wit cramer ♪ ♪ don't miss a second of "mad money" follow @jimcramer on twitter. have a question? tweet cramer #madtweets send jim an e-mail to madmoney @cnbc.com or give us a call at 1-800-743-cnbc
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miss something head to madmoney.cnbc.com. (siren wailing) (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient
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there's not a gig i might take on the five best performers in dow jones average in 2017 all right, let's do it now we are going to enter -- >> the house of pain >> and deal with the five biggest losers the so-called dogs of the dow. [ barking >> although when you consider other than general electric no stock in the index was down 7%, there really aren't a lot of dogs to round up, good thing, too, because with ge's hideous 45% decline there's not much spare space left in that doghouse, but do you think ge's stock might finally be finished going lower at least for the moment let's not get ahead of ourselves, though. i want to go in reverse order, taking the dow's worst five performers from strongest to weakest meaning ge's dead last couldn't resist. sorry. all right. who was the fifth weakest dow stock last year? verizon. which ended the year down .8%.
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the gigantic telco carrier gave us odd ball performers, typically when the federal reserve starts raising rates in earnest, investors tend to bail on higher yielding dividend stocks, but verdon was worth eight points in the middle of november despite's last month's rate hike and the darn thing doesn't seem to want to quit other than today maybe it's starting to win back customers that it lost to other carriers including the uncarrier which is t-mobile. maybe the fed's rate hikes have been so well telegraphed that they're a nonevent and the 4.5% yield is starting to look really attractive it's hard to tell what's behind verizon's event. i'll chock it up to men reversion. it went back to what it was. nothing with verizon was that bad when the stock plummeted from the mid-50s to the low 40s in the first half of 2014 and nothing when it zoomed from 44 to 53 at the end of the year and it gave a profit when you
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include the dividend i'm not crazy about the stock, but you can do worse for steady income and decent performance in 2018 fourth worst stock, merck, the old saint merck down 4% thp 2017 was the key of key truda, the big anti-cancer drug that works better than most, but remember the economy is so hot that pretty much every active portfolio manager fled the drug stocks in order to buyer mo of the cyclicals. merck was casually the rotation, although there was a time when this company had so many irons in the fire that the stock could have transcended the business cycle. not anymore, but it has the safe 3.4% yield and some nice protection the dow's third weakest performer, exxonmobil off 7% before we chock up to exxon being an oil company, get this, get this, chevron was up more than 6%. the difference chevron had big projects coming online and of the booed productiboosted
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production i've gotten less enthusiastic about the group because i fear one day the fossil fuel industry will be the equivalent of big tobacco. when the millennials start running money that's what they'll do magellan partners which works 5% yield and transports crude from the pipeline star premium basin. hey, it's needed it just doesn't have the growth to get me excited, again, though, the stock can go up for the group, i just think it's one of my least favorite of the oils second worst performer, while 2017 was a sensational year for all kinds of tech, it was not so hot for ibm. with the stock down over 7%. now here's a company that's made many small acquisitions to augment its business, transform itself into a premium cloud play and all sorts of analytics attach attached to it the idea it wants to offset the decline in the legacy business and that makes sense to me the company did introduce a new mainframe this last quarter that will boost earnings and take
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some of the pressure off the ceo. ibm remains a great innovative business and to quote a much-needed upgrade today which is how the company benefits from a weak dollar and has historically performed well at the start of the new mainframe cycle where we are they have some amazing proprietary products what's the deal? it's up against amazon web services and google cloud, and microsoft azure which are running the so-called public cloud. ibm only has private cloud business services i believe that's holding them back ibm has better encryption which gives them a real edge when it comes to cyber security and it's a good celling point if you ask me ibm has reinvented itself many times in the long history. i'll bet they'll do it again, we just don't know how long it will take and they're not doing it fast enough for many portfolio managers including warren buffett who has been jettisoning the stock in spectacular fashion. the stock can hunt at 3.5% yield
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for protection, i think ibm is a buy. finally, last and sadly, really least, is general electric it's down 45% last year. yeah, you heard me, 45 it takes a special kind of industrial to lose that much value during the best economy in ages first, let's be clear. ge refuses to be introspective about what went wrong. that's a bummer and i hope the new ceo explains why the company couldn't earn the two bucks this year that it forecasted at the end of 2016. if he walks us through it and takes the big writedown we've all been expecting i think we'll be greeted positively, but tough thing for flannery will be figuring out how to maintain the already halved dividend given the losses are enormous and the cash flow may not be as high as he thinks and he's got to sell them fast as it might be a stretch of ge to see what jeff immelt was trumpeting before flannery took over immelt used to say they were indifferent to which direction the oil went
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it is now because of the acquisitions and disposals are very much an oil-related enterprise where sales do much better as the price of crude rises and it's rising. maybe he's lucky here. it better be lucky than good and i think flannery is prompting for the sale to raise cash to get the best value we should sell it piecemeal and get better prices, but the clock is ticking. someone or smomeones want to bu pieces of this and get a real bargain. i'm keeping it on a tight leash for my charitable trust and i've issued more mea culpas for owning this one than any other stock the truf has earned in 15 years, but i want to see what flannery lays out before i decide whether to bail into the newfound buying we've seen over the last couple of days. i can't believe that ge is truly as horrendous as the stock suggests, but i've been wrong all of the way down. a fresh start with a recognition of the errors committed will go a long way toward establishing
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the credibility that the company needs at least if it can stem the bleeding and solve the bigger issues like debt, like pension, like long-term care obligation, and of course, power, oil, and infrastructure that's a big to-do list. flannery needs to do it all to save the company and he's been dealt a bad hand by the previous ceo and he has to work fast to augment it bottom line, i'm not a huge believer of the dogs in the dow and you can buy the worst performers and expect something good to happen that seems -- let's say, silly nonetheless, on the yield a len, ibm, merck and exxon can hang in there and ge is a whole different story, but if these are the worst five stocks the dow has to offer i'd say we can buy them low and buy them high and watch those equities fly hey, anybody hear that melody before much more "mad money" ahead. finding winners in the retail space isn't child's play, but children's place won't make you feel that way. others were left behind and a
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great advice. call today. a place for mom. you know your family. we know senior living. a place for mom. you know your family. we know senior living. together we'll make the right choice. some stocks just don't know when to quit maybe they take a breather or even go into hibernation for a couple of season, but then they come back stronger than ever and when you find one of these winners, you need to hold on for dear life and get on the ride. take children's place, plce, the pure play children's apparel retailer that's one of the few mall-based brick and mortar chains that has thrived in recent years the stock has more than tripled since its lows in 2015 and it's brick and mortar, and it was a 44% last year alone, but here's the really crazy thing for most of 2017 the stock of
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children's place did nothing and it was in a holding pattern until mid-october and the whole 44% came in the last ten-odd weeks in the year as part of the broader comeback in retail, but these gains are bigger than what we saw from other brick and mortar merchants so what caused this stock to catch fire all over again? more importantly for you, can it keep roaring in 2018 first, let me give you background on this story because what's really intriguing is not that the stock vaulted into the stratosphere when retail came back into style in the wall street fashion show, it's that the company managed to do so well for so long even when other retailers were struggling. children's place has more than 1,000 stores across the united states and canada. another 168 looks overseas and many of those are located in, yes, shopping malls. shopping malls yet when analysts and journalists were penning all these obituaries about the death of the mall, children's place somehow managed to keep on delivering excellent numbers
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as i mentioned before, there are two aspects to this story. first children's space has benefitted from a terrific turnaround spearheaded by the brilliant ceo jane alfred with assistance from the activist hedge funds. for a long time this stock was an underperformer and the company's results were subpar and thanks to the series that started paying off in late 2015 and came into full bloom in 2016, children's place got its groove back, the company implemented a new inventory management system that gave them better control over what merchandise they were carrying supply chain management is very important and they partnered with amazon to sell things online they shut down on profitable stores and they started licensing the brand of franchisees overseas even when sometimes got difficult for the rest of retail, these efforts allowed children's place to keep posting excellent results. many people shorted it they were wrong. meanwhile, it moved into the tween apparel space, selling larger sizes for older kid, too,
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and it paid off big time the second big contributor to the company's long-term strength, simple it's difficult to buy clothes for young kids on the internet they keep growing and it's amazing! taking a 5-year-old shopping may be a harrowing experience, but if you want the clothes to fit, you've got to try them on, and that means children's space is much less vuler ina believe to online competition than most other brick and mortar retailers, and it has the death star that is amazon can't each breach still, each though the company had a lot going for it, it spent the stock languishing between $100 and $120 a share. what happened? what went wrong? the numbers were okay when wall street was hoping for them to be amazing. the company beat off a 76-cent basis, but the revenue came in a tad light and while same-store sales were better than expected up 3.6% in the previous quarter. make matters worse, the guidance for the next quarter was a tad
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tepid in response, the stock got slammed and failing to meet high expectations was a serious sin last year, at least. since then, we've only heard things in september, morgan stanley published a lengthy report where they call the company and i quote, one of the few retailers prepared for how the world will change even better, they were bullish about the third quarter and that turned to be out pretty darn prescient. the company knocked it out of the park any terrific top and bottom line beat and not to mention the 7.5% same-store sales growth shocking all of the worries about the weak forecast from the previous quarter, suddenly forgotten. the company raises full-year earnings forecast and the stock took off and let's remember the time of year which were's place reported these numbers right around the time with we realized that congress was actually going to pass their huge tax reform package that would be very beneficial to domestic retailers. children's place paid a 30%
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effective tax rate last year 40% rate the year before so this new 21% number is going to translate into a clear and present earnings boost and let me tell you something, from the first block, it ain't baked in no more cake cleanse. and the same time for months now, it's been getting clear that brick and mortar retail may be in better shape than we thought. the whole industry had its best holiday season in years and this rising tide lifts all ships scenarios and wouldn't you invest in the ship that was sea worthy children's place saw gymboree file for bankruptcy in june and they swiftly closed 303 competing stores and that's a lot of business up for grabs and it helps explain the most recent quarter, and what about the next time children's place does report the company has crushed the last two fourth quarter in 2015 and 2016 and those are much less retail friendly environments than we have now given the company's recent performance, i see no reason why
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they can't do it again, and eveh though the stock is so high, it sells for 18 times earnings and when you consider it's one of the best-run companies in the whole industry, plus those earnings estimates will still need to be raised as it calculates the impact of the tax code that is not baked in which means the stock will be a whole lot cheaper. bottom line. the children's place is a traffic story and it's a dynamite executive and every time the stock has sold off and it's turned out to be a fabulous buying opportunity and jane addressed it right at the top of the call given the monster run at the end of last year, and maybe they have profit taking in the not too distant future and all i can say is any weakness in children's place, is worth buying john in new york john >> caller: hi, jim, how are you? happy new year. >> better than average how about you? >> caller: sounds good listen, walgreens is coming out with earnings tomorrow i own the stock. what's your opinion of the stock? >> homey don't play that game.
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we'll have to look at the number, but i don't know i think they should have an okay number and i am worried about the front of the store why am i worried about the front of the store because of amazon. why am i worried about the back of the store a price car on prescriptions and i wouldn't be surprised that it does well and we care about long-term future and not 24 hours. randy in new york. randy? >> caller: hi, jim happy new year, love your show. >> i think i have a diamond and you're on it >> caller: oh, wow calling about alibaba. >> i think it turned out to be trading with fang. apple, amazon and alibaba. alibaba is fine. yes, the chinese got comeuppance in the moneygram thing and president trump is not too cool on it. that said, i think alibaba is a well-run company and i would own the stock here dude oh, man, if i would have known these i would have put them on holy cow these are fabulous they beat my jams any day of the
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week, but mine have feet some stocks just won't fit children's place is a raging buy on any weakness and much more mad money ahead including a stock up 45% in the past year can mind, body continue its move i've got the exclusive for the ceo and then how this market's bad memory could be good for you and your calls, rapid fire in tonight's edition of "the lightning round" so stick with -- cramer
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that's focused on the health and wellness industry. there are over two months ago we checked in with these guys from mind body that reported a huge, fabulous quarter sending its stock surging into the stratosphere, but once wall street got excited about tax reform and the cloud name suddenly went out of style the stock pulled back from its highs along with the others and plus it didn't help that one of mind body's largest shareholders sold 1.67 million shares cashing out at $31.60. the stock got slammed on the news, and it's back up to 32 there was nothing wrong with the company when the stock went down money managers were raising capital so they could get a swap of the cyclicals and the domestics that benefit from the big tax cut. now that the money is pouring back into the cloud any they're taking mind body back with it. let's take a closer look with rick stowmeyer, the chairman and co-founder of mind body and welcome back to "mad money."
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good to see you, sir >> we have the right time because people, myself included we're all thinking how do we get in shape and if everybody thinks the same way, then it's not easy to get an appointment with a trainer. it's not easy to get into a spin class. what does mindbody do for you? >> these are the top resolutions and they improve our lives and lead a happier, healthier life and what we want to do is have those people get engaged and stay engaged and they have to find the right experience that will give them what they need for their body and we've introduced dynamic pricing it's just something that we take for granted in our everyday life, the way we book airline tickets and uber rides and book a hotel room if you wanted to get sporting event seats and theater tickets, now we have that in the wellness industriy and it's super exciting >> this is fabulous for a company that employs rachel w., my wife's favorite spin instructor meaning if you can't get in her class she's furious, and she'd
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pay up for the right instructor. what happens with dynamic pricing is the people that are willing to pay up can get exactly the experience they want and the people that are perhaps more price sensitive and let's talk about the college student, for example, or someone on the li limited income they'ra able to find it much cheap per they're more time flexible or if they're willing to book in advance just like it works with travel. >> let's back up brick for those who aren't that familiar for the idea that you have to fight to get into the class mindbody is a way for both the gym, the spa and the client to get a good resolution where people know you and they have information about you at the same time and you can book yourself >> that's right. there needs to be a robust and continuous low growing supply of wellness services. they're they're partners in both
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these bees and i'm a partner twice over and they're surprisingly complex to run, but once they get the right target audience and they understand how they're going to deliver their services in a predictable way, they are really quite durable and so what we're able to do is give them a business management system that solves their fundamental problems and then connect them to a much larger audience and get more people in the door because if you've got 20 spin bikes and you've only filled 15 of them, that last five is lost forever >> absolutely. >> that's what we say at the end, we use dynamic pricing. those rooms, they're -- you can get $50 for them and it's better than nothing >> that's right. that's why mindbody must help the gross margins of your clients. >> that's right. if you implement the system of mindbody it starts by enabling people to book your classes and a poims and we have 6.8 million users and this is connecting both the regular clients as well as new consumers in and right now after the new year's resolution is when the most new
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people enter the market and we want to get them absolutely hooked in and give them a great experience and they'll keep coming back throughout the year. >> how do you get paid >> do you get both the customer and the business >> no. consumers use our systems for absolutely free. what we're doing right now is we have a base subscription revenue fees that we charge for the software we make a little bit of money off the payment process. >> okay. >> and marketing fees that we collect through the mindbody app on other properes. >> i like to get my haircut all of the time, and i like to look neat and they never know me and they treat me terribly if they had this, would they know me and know what i want and treat me with some degree of civility >> absolutely, man when you walk in the door, they'll say he needs a in number one. >> and you and i have similar hair characteristics, i think. >> you're way behind me. eight english-speaking markets,
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why overseas the u.s. market is undersaturated we became global right out of the garage >> why it's hard enough to do business in this country. >> point well taken, but right now we're in over 100 countries and this is inbound and people come us to and we came to understand that we needed to focus eight high per-capita income english speaking companies, u.s., canada, australia, ireland, singapore and hong kong. we have significant invents or of customers and available classes and appointments you can go on the mindbody app and go search in sydney right now, you can go search in london and you can see our customer base and it's quite sizeable so the why is because the demand is out there and there are very few people in the world doing what we're doing and there's a small number of niche competitors and we're the only ones that have achieved scale and being able to provide a crafted solution for the industry >> i have a name for you, mawa >> make america well again >> make america well we're not going to say again
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we'll say america well >> maw, because america has a long way to go in getting well. >> there are so many times when i'm willing to pay more for an appointment if i really need it, but nobody's organized enough. i don't think you should just be salons or hair i wish my doctors used you i wish walgreens used you when i want to use the minute clinic. >> we see ourselves as the marketplace of wellness and the system that gets out the real issue in the country which is the $3.4 trillion a year that we spend a year, 3.4 trillion a year and that's close to 20% of the gdp. 86% of that is preventable causes we're not exercising enough and we're not eating the right foods and dealing with way too much stress when you sign up for the classes, you will not only get fit, you will get a social experience and create friends and create a community a lot of people are suffering from loneliness and it's powerful stuff and the dopamine and ser and serotonin hit they're
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♪ ♪ it is time -- it is time for the lightning round -- [ indiscernible and then the lightning round is over are you ready, skee-daddy? it's time for the lightning round and we'll start with mark in virginia, mark! >> caller: sitting by the fire and having a brandy and i'm in at 43, buy, sell or hold >> which one >> lost you on the brandy because i'm a scotch drinker what was the stock hormel hormel okay hormel and smucker are both, woing here i like hormel and i will also throw in general mills and that's a twofer. let's go to jim in illinois. jim! >> caller: regard, mr. cramer, from frozen chicago. >> well, frozen chosen, though what's up? >> earlier last year after
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hearing you talk about industrial stocks i realized i was underweighted. i did a sector search looking primarily for companies that weren't the usual suspects and possibly looking for a hidden gem. >> okay. i found a company called amatech. >> that's right arne the corner from me. you did well don't sell don't sell that company is just -- i mean, i actually have been working on a big piece about it so it took the thunder out of thing, but you've got a win tler. let's go to charlie in new york. charlie! >> caller: boo-yah, jim. >> boo-yah my question, applied material materials, amat. >> people feel there's not enough demand now for flash and that mike and the drams are going to fall. i say that they've spent enough time on the wilderness and it's okay to buy. no, no, no i am just getting started. that's ridiculous. i'm baked in let's go to james in new jersey. james! >> caller: hey, jim. thank you for taking my call i would like to discuss nabors,
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ticker nbr >> really? that's the worst one, but the chart's good i guess i could go to nine if oil goes to 65 i have one more in my pocket let's go to chris in georgia, please, chris. >> caller: this is chris from georgia with a big, happy georgia bulldog boo-yah for you. >> i like the bulldogs >> caller: yes, sir. i'm calling about southern company. >> i'm not crazy about southern, and i don't like the nuclear power stuff, why don't you upgrade to a-e- tvrnlts and that is the lightning round >> the lightning round is sponsored by td ameritradeing ta well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate.
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you can tell a lot about a market by the way it reacts to bad news if the market turns a blind eye to a negative story about a particular company, and then a few days later the stock starts a furious rally -- >> buy, buy, buy >> then you just might have something special in your hans normally they linger and create prolonged sell-offs. in this take, bad news is packaged, forgotten and the upside games start all over again. last time i talked about the stock of csx, the giant railroad and it is back to where it was trading when we learned about the tragic death of harrison given that csx ran up 25% on the news of his hiring, you expect the news of his death to hit the stock pretty darn hard, after all. harrison took the job less than
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a year ago, but the market quickly forgot as it fell in love back with the rails and csx raised higher once again. >> all aboard! >> i can name five different situations off the top of my head where bad news has been totally forgotten and errors were absolved simply because the bulls are looking for any bargains they can find >> buy, buy, buy >> let's start with wells fargo. here's a company that's still very much in the crosshairs of the regulators [ shot fired ] >> it's had chick anry and we still don't have the final numbers and the federal reserve can take severe action against the black. their own investigation team blasted the culture that allowed the shenanigans to occur how has the stock stock doing? it's been blasting through the roof languishing in the 50s. the misteeds have bein more like a minor indice correction and all people care about is how it impacts wells fargo's bottom line it caught an upgrade from
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bernstein that barely mentioned the chicanery. incredible how about new corp this steelmaker has pre-announced shortfalls three quarters in a row. what's stock done? it's gone pretty much in a straight line. 13% move higher after the last shortfall was announced and it was a meaningful one a real meat axe and not a butter knife or a ut. why did the stock rally in the wake of horrendous cuts, because they're hoping for federal infrastructure projects and chinese steel imports. they know that i've been endlessly disappointed in new corp, the company. [ crying ] but not the stock which was as hot as a pistol for two different animals, a bear and a bull, so to speak. everyone seems to have forgotten the last preannouncement even as the company has not been good at all. what else? two months ago there was a major panic in the stock of macy's
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the investors grew concerned that the chain wouldn't have enough money to pay. even as the company has vastly improved the deposition, while generating a nice karn flow improvement and the stores are looking better and with cold weather and chatter, the stock resumed almost 50% and no one says a peep now about the safety of the dividend. who knows what will happen if nordstrom comes back and says it's in play and wants to go private again. united parcel came out on december 5th and announced it was having problems meeting e-commerce demand. yesterday it fell $4.52 and today it added $2.74 and more than a race and the stock has hit an all-time high today finally, in the first week of december, schlumberger's stock fell from 64 to 62 after it gave the talk at the conference that led to estimate cuts galore. now the stock's up nine points from those cuts with no real sign of improvement in the services business and even
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though i like schlumberger very much sure the price of oil has risen and numbers are coming down anyway because nations and companies aren't boosting the drilling budgets yet the stock should be falling, not rising in the old days that's exactly what it would do these are just some of the most obvious examples of negative stories that the market has simply stopped caring a few weeks or days later, it's an absolution, a blanket pardon and a memory lapse all rolled into a bullishness that's a major prop behind the rally that we have been enjoying for more than a year now stick with cramer.
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look i know the intel was down today and why not? there's this glitch and everyone was trying to figure out what the glitch was i remember during the pentium glitch in the '90s, it was one of the great buy being opportunities before the stock took off i like to say there's always a bull market somewhere, and i promise to find it for you on "mad money." i'm jim cramer and i will see
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you tomorrow timeout. nooooooo! yes! amazing speed, coverage and control. all with an xfi gateway. >> 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." ♪ first into the shark tank is j. jones, an american who believes he has perfected a traditional english treat. hi, i'm j. jones from denver, colorado, my company is jones scones. and i'm asking for $100,000 for 25% of my company.
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