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tv   Mad Money  CNBC  January 5, 2018 6:00pm-7:00pm EST

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and buy the options. either way it does look higher >> mike? >> covered calls are always the best way to get started as an options trader >> i want to get out of banks and into biotech >> thanks for having me and let me put a jacket on. buying opti >> thanks for joining us "mad money" 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 other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach call me at 1-800-743-cnbc. or tweet me @jimcramer this is some kind of wild, wacky market we have going here. we have a ho-hum labor report
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today. the single most important piece of information that they release. the dow gained 29 points and the nasdaq fell. the market is down right shocking the bank stocks have been rallying for days since the economy is red hot hot enough that the fed might have to raise rates repeatedly the hope of fast paced rate hikes have been driving the financials higher and i have told you that the financials are the most important leaders of the sector out there not tech, not health care. not even industrials but the fibs as we call them is to help the banking system with a big job loss in retail, no doubt thanks to amazon and online brethren the industrials and the transports caught fire the former because maybe the fed wants to strangle the rapid rate hikes but a lot of the transports are connected to the e-commerce throw in the big pushes from the analyst community from amazon and apple, two of the market
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generals and you get new winners all plumped up to feed the beast. so can the beast continue to charge higher? well, let's consider a game plan for next week. so monday is going to be dominated by the kickoff of the jpmorgan health care conference. formerly called the consumer electronics show the confabs of the entire year, these two get together and they move the stocks. how important are the conferences? well, this year's ces starts with the most dramatic, exciting speaker in tech today. fortune magazine's 2017 business person of the year, jensen wong, the ceo of nvidia. he's speaking sunday night to get it started with a bang and he'll talk about the cloud of gaming of cryptocurrencies and data centers everything else that matters if you only read one thing about tech this year, you need to get
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a transcript of this speech. i find wong to be one of the greatest inspirations out there today. and he'll set the scene for this conference like no other i bet he colors tech trading with if comments you can see a number of stocks ramping at adobe and other semi-conductor plays i like nvidia so much, that yes, i renamed my dog after that company and now he walks around the house like he owns the place. look out on monday, nvidia's friendly rival of intel speaks. i bet he'll pet this intel security risk story to risk. i think it's a tempest in a teapot the honorable cruz anick may be soft-spoken. i bet he has doomsday stories that will be debunked and over by tuesday over at the jpmorgan health care conference i'm paying close attention to brent saunders.
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i think he'll have an vision of an up 2018 something that some don't believe is possible. hence it climbed up to 172 today. if brent tells a good story i think it can mark the new beginning of a run for allergen which makes botox and other drugs. we own this one in any charitable trust while we have gotten singed, i still think there's a ton of hidden value here. maybe he will unlock when he speaks on monday tuesday we could get some dynamite commentary from that jpmorgan conference from nonother than jpmorgan's jamie dimon. he won't talk about what the company will earn. we'll get those results on friday when the company reports but i think we'll give the whole market a jolt if he comes to play now ordinarily i don't take my -- from the little companies
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like schnitzer steel but these are extraordinary times. the chinese are dumping the steel where it's a national security interest to block them. when that happens you'll see a legion of money managers and commentators on tv and carrying their -- tearing their hair out for how we're in for a big crash. so any commentary from any steel company right now will give us an inkling about my biggest worry at this moment when i say this is my biggest worry i don't mean a potential trade war. i mean the bonus warnings from faux bulls who are dying for an excuse for turn bearish. why isn't that triggering a trade war, why does that frighten me so much? okay, we're in a trade war with china. and we have been losing for ages because our leaders like to pretend it isn't happening of course there are good reasons for that right now we have so many winning companies that do business here, do business in the people's republic. look, gm with the record number,
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4 million autos. proctor & gamble, boeing, you see that horse -- major market for them those stocks will take a tumble if president trump gets aggressive about protecting the steel industry i bet they bounce back and you get an opportunity i have been worried about -- incorrectably by the way i'm worried about the home builders this week even kb homes. up 135% since i started to recommend it in 2016 and it went through hold to buy to -- under the cover of night i know we'll get a rate hike not the next one, but maybe one later this year that will finally knock the home builders off their pedestals. in the mean time though we're about to hear from kb and lenore and i bet they have rising gross margins like toll bridges did. sooner or later the strength will end but not any time soon though
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sooner more likely later. thursday i'm looking over to europe to get a reading on industrial production. i remain a huge bull on europe second only to my friend ken fischer, amazing money manager who's predicted the blowup in the u.s. and the renaissance of the eurozone in a series of articles and talks if you want to play to turn, i recommend the edu -- the izones, which gives you broad exposure to the continent friday earnings season begins in earnest with numbers from blackrock, jpmorgan, pnc and wells fargo. i want to hear how much money keeps flowing into blackrock because it's an important -- in the market jpmorgan will speak of soaring optimism not to mention buy backs pnc will probably have the biggest upside surprise of any bank and it can be bought even
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appear, wells fargo will tell you that the whole cross selling imbroglio is behind them even if it isn't and that the markets are going higher and that the customers have forgiven them given that the fed will be tightening multiple times this year and the tax rates for all the financials are coming down i think all of these stocks are buys particularly if they go down any time next week here's the bottom line when the market is in beast mode you need to feed it. give it a balanced side of techs. health care from jpmorgan and bank earnings and they'll keep surprising you i need to go to seine in nebraska seine? >> caller: how are you doing a frigid booyah to yeah. >> well, you can buy some canada goose. >> caller: the stock is pgi innovations. i did my homework like you tell us i found out about three things
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real quick one, a lot of places won't -- a lot of banks won't give you a home loan if you don't have these kind of windows, hurricane windows and doors in your place. >> right >> caller: insurance companies won't insure you if you don't have it. so not only are these windows made in america, they save lives, save homes and i have been at $12 a share up to 16, almost 17 today. 30% increase on my money. >> you're so right i have to d.c. -- i have been looking at beacon roofing and talking to home depot and lowe people's you have a winner there. you have a winner. and don't let it go. how about kim in massachusetts kim. >> caller: hey, jim, how are you? >> i'm good, how about you >> caller: just fine cold here in massachusetts. >> true. >> caller: i'm wondering about tech resources with this rally -- in the tech resources rallied more. >> it's a breakout it's a breakout move and this time it's real
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i think that it's not just china demand which is what it was before it's worldwide tech works i need to go to myron in arizona, please. myron. >> caller: hi, jim 2017 was a great year for amicus therapeutics which led me to ring the register on some of the shares what's your thoughts of going forward in 2018? >> i follow this company it's a -- i think it will be a good speculative bet amazing, i know it sounds like i like everything but i have three good stocks that people mentioned so i do like them. the market is in beast mode and i think next week's potential catalyst can help it charge higher. on "mad money" tonight, for the spinoff i wonder how much upside can be ahead and then the losers in the average have something to offer. i'm digging through the rubble to see if any of the worst
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performers could be worth owning and the investors were not cheering but maybe there's more to meet the eye than the numbers are showing you. i'm going to sit down with one of my favorite owners of my favorite stock >> announcer: 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 miss something head to madmoney.cnbc.com. hey, need fast heartburn relief? try cool mint zantac. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. nexium can take 24 hours.
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we love a good breakup here on "mad money. there are few things better than when a company decides to split itself into two smaller more digestible pieces in order to unlock that. it caught our attention last august when wyndham worldwide one of the world's largest hospitality companies that you might recognize as ramada or day's inn, the number one
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purveyor of time share and vacation rental companies announced it was breaking itself up wyndham is a long time favorite and we learned it will spin off as a separate business wyndham hotel, in order to become a pure play on time shares and vacation rentals. now, i was pretty bullish about the story at the time. and the stock has given us a 9% gain since the deal was announced but if you're thinking the upside is exhausted, think again. wind ham worldwide has more room to run how do i know that because we have seen this before in fact it's eerie how similar wyndham's situation is similar to what marriott did in 2011 back then they had a hotel and vacation rental business and they spun it off as marriott vacations. if you owned both parts of the breakup you maid a kidding and i think the -- you made a killing
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and it's worth to look at it through the prism. they're not perfect analogs but to quote the late great mark twain who holds up well. history doesn't repeat itself but it often rhymes. so how had the two marriotts to use the analog done since the breakup at the end of 2011 marriott international the hotel business has seen its stock more than quadruple surging up to $134 for a monster 394% gain. ♪ hallelujah and marriott has skyrocketed from $18 up to $134 in the same period that's a titanic gain. to be fair this has been a phenomenal period for the broader stock market, but both left the averages in the dust. and more to the point maybe the best comparison here is wyndham worldwide itself which is more than tripled since the end of
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2011 hey at 238% gain is great but both marriott international and marriott vacations has done a heck of lot better they had that broke itself up is better than the one that stayed better if you hang on to both parts of the company after the spinoff that would be too rosy history doesn't repeat itself like that. and there are important differences that i'll get to in a minute but i think it's important to acknowledge the precedent because it gives us a reason to be bullish about wyndham's prospects. i think this is worth earning even if marriott hadn't proved it can work wonders. wyndham is an incredibly well run company. the ceo is retiring and after the breakup it will get better right now, if you want vacation rentals they don't buy wind ham
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because it's neither fish or fowl after the spinoff you'll have two digestible plays on two distinct businesses. wyndham lab one of the largest in the world more than 8,100 locations. more than anyone else in the industry go to the website see all the brands very easy to navigate websites by the way now, they're not all like -- we're not talking about four seasons here ramada, day's inn, super 78, howard johnson, but in a world where consumers are focused on getting the best values these low cost offerings have become very popular don't forget millennials don't want to be in the room they want to be out there instagramming. the room means very little to them the core of wyndham is the vacation rental business and i think it will get the credit it deserves wyndham is the world's largest developer and marketer of the vacation ownership products. they have over 2,200 -- i'm sorry, they have over 22,200
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i'll figure it out over 220 resorts across the world where they sell time shares and run their own vacation exchange networks and you can stay at someone else's time share this is a popular business look at how well marriott vacations performed since it spun off it's growing like weeds, sign me up now the comparison is far from perfect. vacation rentals were a small part of marriott's business whereas wyndham's split is 50-50. more important, there they be less upside here simply because wyndham is approaching this breakup from a position of strength the stock has been a fabulous performer and they're not spinning off the hotel, because they have to they're doing it because it's good idea. marriott was a different story by the way the company only embraced a spinoff after a couple of weak years and it was a long awaited recovery in the industry the economy was pretty fragile
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when marriott broke itself up. so it had to do with the acceleration in the -- whereas right now the economy is on fire, and while i think it will continue to improve, let's just say that there's not as much room left for improvement. and even though the lodging industry is in very good shape right now you know there's a lot of hand wringing about the upstarts those worries that have really hurt the group endlessly and they haven't been able to stop wyndham's relentless march higher yet, but every now and then you can imagine some analyst using them as a cudgel to knock down the stock. look, this morning, the analysts at mcquarry published a piece about how the market is not kind to the lodging breakups. but they note that the time share stocks tend to go lower once they begin trading. specifically in first couple of weeks after a breakup the time share portion tends to get slammed that is what happened by
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the way to marriott vacations too. before it came back with a vengeance. i say fabulous if you don't already own wyndham world wilde, wait for the breakup so you can add to your position if we get a post spinoff pull back in the time share division the mcquarry piece did do some damage, it pushed the stock down 3% today but i like another big piece of research bullish and to me rigorous note from stifel. they were forced to raise their price target and increase the earnings estimates i bet it's the first of many number bumps here's the bottom line, wyndham worldwide has been on fire but with the spinoff of the hotel biz coming up next quarter i think it has more room to charge if wind ham follows in the footstep fofts marriott breakup a little bit, then chapter the breakup can be just as good as chapter 1, the marriage. the record run couldn't lift all stocks out of the slum i'm listing the biggest losers
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could the stars be dimming for the stock of constellation brands was today's drop a chance to buy? we'll talk with the ceo. are you an observant investor? i'll tell you why it's beginning to make you money. stick with cramer. at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move.
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last night we reviewed the ten best performers in the s&p 500 in 2017. as part of my annual january ritual, i evaluate the biggest winners and losers we need to look at the losers to see what happened in 2017. now, in a bull market it's not that easy to be a real seller dweller. you have to convince -- it's a
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grievous sin to end up on this list but remember this is a forgiving market so it's important not to get too judgmental i'm telling you there are some in this -- in this list. case in point, footlocker. down 34% even it rallied hard from the bottom over the past couple of months but that erased the most recent leg of the decline. the stock went down from $47 to $31. it was so hideous you might have thought that people stopped shopping there all together. now it's come all the way back where it was before it crashed over the summer. the reason footlocker simply said same store sales are running steady and no further degradation that's all it takes when the expectations get too low footlocker is an excellent company. imagine what they would say if things would get better. not as good as alta and others, but one they could engineer a
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comeback i would say, hey, domestic retail, better consumer, just buy it but i would like to wait for a bit of a pull back the next worst performer, signet jewelers the stock was down 40% signet is jarrod's, kay jewelers, had been considered the financier of jewelry than a jeweler store. there was a brutal piece about sexual discrimination at the company, not long after the ceo mark -- who has been on the show and retired for health reasons his successor is trying to clean things up. but sales and earnings do look like they peaked making me think this represents either value or growth i wish the new ceo luck. but at best this is a work in progress with an okay business model and yes, a tarnished reputation hard pass. eighth, advanced auto parts is a
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real quandary. they had a fast growing oligopoly, but it got stung because of the mild winter and then ordering back to the factory direct -- amazon however, we have the blizzards all over if place. the year of comparisons will be fabulous i think the industry is ripe for consolidati consolidation. so advance auto parts seems intriguing especially with a turn around plan in place. i think it's worth speculating on foreign a return or a takeover next up, there's a glut of natural gas in this country. even with replacing coal with gas and new natural gas export terminals opening up which brings me to chesapeake energies down 43% last year with the cold weather i doubt it will maintain a sustained rally. the main product is way too plentiful. while the fossil fuel stocks are making a comeback it's severely lagged until this week because of the cold weather. if you're a believer though i
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suggest owning apache, understated natural gas company. not chesapeake which is a bedraggled security because of a hideous balance sheet. another one that's interesting to me, mattel. lots of investors were huddling, thinking that the dividend had to be secure but they didn't realize that barbie is under assault at the same time that toys "r" us is going bankrupt so the dividend disappeared and took much of the market cap with it the best thing that could happen is in this toymaker accepting a bid from cramer faith hasbro something makes a lot of sense with it being down 44% last year but with a ceo installed i think that's highly unlikely a lot of bottom feeding investors are taking to heart they hired a good executive who i'd love have come on the show just could be a terrific turn around expert. you know what you have to do here wait and see what happens with
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toys "r" us. this goes lower and they decide to liquidate their stores. we have covered ge just remember, i now regard ge as a play on oil with the health care kicker. oil is going higher and that's going to give new ceo some breathing room for the seller -- talk about envision health care they reported a miserable third quarter and then told you it might be up for sale taking a strategic review. envision is a physician service that got hurt by hurricanes harvey and i think labor costs are too high there might be a bid and that's something being speculated on because they pulled out of the jpmorgan health care conference next week. that said, business is bad or at least it's bad -- who would want to buy envision even if the stock is down 45% last year? let me rethink that. because number 49 -- 497 on the no hit parade scana, the south
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carolina utility company, just caught a sweet premium takeover bid from dominion energy this very week. we spoke with tom farrell last night and we came away thinking he might be stealing the company given how good the region is and how poorly scana is run. it's a rare instance of a stock down 46% in one year and then immediately making you money in the next now, i ring the register on scana and i would buy the company trying to buy it, i would buy shares in dominion which has been hammered because of the weakness in the utility group. the worst performer last year, under armour down 50% this former market darling has been crushed by it own parapa tick management. you stick your finger in nike's eye, they come back hard we don't know if nike is beating them no matter what.
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if planks is all in and focused, i think he s and if the stock pulls back to where it was a few weeks ago it's had a major rebound. you have a good trade going in the quarter. finally bringing up the rear, range resources. once again, there are much better natural gas stocks you could own for the long term. in the meaner, darker market i think don't bother with any of these. but last year's third worst performer gets a takeover bid and retail is looking up t weather is so cold it's turning losers to winners. the bottom line -- weirdly almost every one of the losers has a decent speculative thesis. if you made it through 2017 with these, you might as see what the beginning of 2018 brings for you. just in case another scana-style fairy tale comes true. oh, our old friend larry in massachusetts. larry! >> caller: jim, happy new year, first of all i followed your lovely wife on instagram and it's great to see
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the beautiful world that you have built together through her eyes. >> lc dettwiler has been in india for about six months now take a look at her instagram she's having a great time. either heather gaines in charge of instagram observation, not the actual product for us, thinks she's a great follow. thank you, larry >> caller: don't miss too many trips with her >> no. she knew i couldn't go away for two weeks. we'll have a talk this weekend >> caller: i know. i have been looking for a good entry point on incite -- it implies a 170 price target since you said don't give up ten points higher in november. do you still feel the pipelines as well as the partnership with lilly and novartis justifies if initiation >> i think incyte is oversold. we -- you know, when i saw it today, man, maybe i'm nuts, i think it's a good value. larry, i think it's worth a buy.
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and thank you and dettwiler will be home from all the different cities that she visited that a lot of americans don't go to matt in louisiana, matt. >> caller: happy new year to you. >> same, matt. >> caller: a couple of years ago, i want your opinion i purchased some smith & wesson stock and it's kind of tanked. i don't want to get rid of it. so i'll keep kind of telling myself the buffett quote if you don't want to own it for ten years don't own it for ten minutes. what's your thoughts >> well, i think you're going to need a change in the house, the senate or the president. because this is a stock you buy when the democrats are trying to make it so you can't buy guns. then you sell it when you can buy guns i wish there was more to it, but there isn't. that's what i have to say. now i wouldn't call this a buy list but i think 2017 losers on the s&p, boy, they have a lot of speculative thesis there. much more "mad money" ahead.
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today's decline -- i can't have this either. but this is the decline in constellation brands is maybe something to buy i'm sitting down with the ceo to see if it could be a buy opportunity. and then how the cold snap in the northeast can give you the next big investment idea we'll have the lightning round. and plus a look back at the week that was. so stick with cramer your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
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we need to be start concerned about long-time favorite constellation brands? they import some of the most popular mexican beers into the united states. they have a big wine business including the red hot prisoner brand and san miguel favorite casanova and high west whiskey and they have vodka. a lot of new names that seem interesting to me. long term constellation stock has been one of the best around. they have a terrific track record, reported fantastic numbers but this morning constellation reported a revenue miss even though the earnings were better than expected, the stock
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got hurt it was down 2.6% today how deserving was this decline on the one hand, management raised the full year guidance on the other hand the revenues were a tad breaker and for commentary about the ailing and relative thing, wine and spirits business more importantly when a company is this good disappoints in any way, you know the stock will get hit. that said i'm a believer in constellation. i think the pull backs are rare and need to be bought. don't take it from me though let's check in with rob sands, the ceo, and find out how the company's prospects look here. welcome back to "mad money." >> thanks, jim. >> all right, rob, i think a lot of the analysts buried the lead. the beer business is real strong, isn't it >> yeah, jim, the beer business is exceptionally strong. we've posted fantastic results with depletion growth at sales to retail at 9%, 9.1% in fact, which was right square on
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expectations so consumer take away is extremely strong with our rir figures being north of 16% consumer takeaway growth in that channel. very strong beer business. >> but you did say that you felt the wine and spirits business were a bit muted i did think, geez, did something happen to wine are people like -- is the taste turning here wine is pretty popular in my neck of the woods. >> yeah, what we said was that we expected our wine and spirits business to come in at the lower end of the guidance range which was sales growth of 5 to 7%. and that was largely because we're seeing a bit of a slowdown temporarily i believe. or let me say in the short term on wine and maybe a number of factors, the low end of wine seems in particular to be
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slowing down quite a bit while at the same time the high end of wine and even higher end than previously is picking up in terms of growth. so the overall market right now is down a couple of hundred basis points but over a longer period of time the business and the wine business in general is growing about 4% we really don't anticipate that it's going to grow any less than that as we look into the future. so we think that any immediate weakness or softening is just a temporary thing. >> okay. now, there's a lot of excitement here about your investment in canopy this is a first mover advantage into cannabis. in canada, you point blank said you're not doing anything illegal in the united states, but you said this is a learning experience what can it mean for your company though >> well, you know, obviously, maybe not so obvious to everybody, but to us it is,
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cannabis is going to be a large market on a worldwide basis in the u.s. it's not legal at the current time but obviously, numerous states are legalizing it for recreational purposes. canada going to legalize it for recreational purposes at the beginning of this coming summer. so it's clear cut that it's going to be a big market and we think that it only makes sense to position ourselves to participate in that in the beverage end of the business. >> now, i'm just trying to understand this. the sovereign state of colorado so to speak where coors used to be brewed in the mountains, can a state trump the federal government and say you know what we welcome rob sands of constellation. we want cannabis beer? >> i would say the answer to that is no in that -- because we have federal licenses and things that
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rely on the federal government, we have to make sure that we're in compliance with federal law at all times even though the state law may allow it so until it's legal on a federal level we won't be able to participate in the u.s. market. >> all right now, there are a couple of things going on that to me are overlooked again because you're doing a new stuff. a high end rum in american oak bourbon bottles sounds good to me what can that mean is there really a market for that >> well, sure. you know, high end rum -- premium rum is a category that we think is ready to take off. what we're seeing -- we're seeing all sorts of brown spirits. first it was bourbon, second it was rye. other forms of american whiskey are becoming popular we think that high end rum is only right behind that so we thought that this was a
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good opportunity to participate in that category with a great brand called the real mccoy. i would say the same thing for high end brandy. we're seeing some early signs that brandy like brown spirits such as bourbon and rye, we're seeing brandy now begin to take off as well. the higher end of the market so our ventures group made an investment in the high end brandy as well so we're positioning ourselves to take advantage of the growth and all of the categories that are going to be hot in the future. >> got it, rob, i have to tell you, periodically there's been one line or another that's not right that gets you in the stock. you buy back the stock, $3 billion worth a great opportunity. rob sands, president and ceo of constellation brands there have been periodic differences in a quarter and they have all worked so buy the stock "mad money" is back after the break.
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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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lightning round is sponsored by td ameritrade >> it is time. it is time for the lightning
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round. you say the name of the stock. >> buy buy buy buy buy when you hear this sound -- [ buzzer ] -- then the lightning round is over are you ready, skee-daddy? i'll start with bud in ohio. bud. >> caller: hey, happy polish new years to you. >> it is bullish how can i help >> caller: last month you blessed my stock as a speck, but that was before tax reform it's a small cap domestic profitable and already committed to paying dividends. it should benefit hugely from the tax cuts so tell me, is all the good news baked in to p&g foods? >> no, they have the green giants, just when millennials want to shop in the aisle. that was a good stock. they had some equity but i like it here. let's go to don in virginia.
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don. >> caller: jim, thanks for all you do and what you do for us. >> stamp looks good, they got me an apple and two oranges because of the cleanse i'm on. >> caller: hey -- [ indiscernible ]. the high yield. >> which one is it i'm sorry i'm focused on the cleanse what was the stock >> caller: ari. >> no, we don't know what they own. they're too dicey for me unless i have a read on what they own how about we go to al. i know that sounds like ow, but that's because i'm from new york >> caller: hi, this is al from port charles, florida. thank you for all you do for us and your wisdom. >> flaw. -- thank you. >> caller: i'm interested in kmi long term. >> what can i say? it's going to do well just because we're out of pipe. it's not my favorite i like magellan mystery and petroleum. and partners mmp
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someone initiated with a sell today and that person ought to come see me, come see me at bar san miguel because i won't buy them a drink to larry in illinois larry. >> caller: booyah, jimmy it's an honor to talk to you, jim. you're the best. >> thank you >> caller: jim, i'd like your opinion on royal dutch shell. >> you know, royal dutch shell is not my favorite but it's not bad. i have been impressed with chevron. i mean, you know, i renamed bug chevron but he's not playing he answers to bug. what's with him? let's go to nancy in wisconsin nancy. >> caller: yes, hello, mr. cramer thanks for taking my call. i look forward to your program every day. >> thank you >> caller: i own cy link - >> you're lucky. because it went from the hold to the buy, the conviction -- in one day. now they're getting some really -- it's a good business
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in the high end communication stuff. i think you own it let's go -- that's the lightning round. >> lightning round is sponsored by td ameritrade oh, either they don't want to say anything good about the markets. bitcoin, bitcoin and bitcoin. hey, cramer, how about bitcoin i'm feeling good about sleeping for heaven's sake. [ laughter ] believe me i would if i were doing the show at home i'd do the show at home in front of the mirror for like hours yeah, one pen. okay, you break it you have two pencils, wake up out there! a bull -- beast mode my carrier baked in i'm done hearing about baked in.
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oh, well i'm calling? oh see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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yes, it shouldn't be this easy we shouldn't be be able to say, baby it's cold outside and make
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money. we shouldn't realize that blizzards are tough on cars time to buy an oil parts retailer and profit from it and rack up a gain in home depot stock because you need to shovel your yard. the market is supposed to be too fast for this kind of strategy to work but it's working those of us in the last 17 years from profiting from the knowledgeable observation are now struggling to come to grips with the market that's reminiscent of a different time. before we became cynical and jaded about the stocks don't necessarily trade in sync with the underlying companies i'm not saying that this topic is bad and index fund and etfs are dead there are too many trillions invested, but i'm saying it's possible to pick up on the stocks that are better than average by just keeping your eyes open. and the disparities in the performance versus the broader market are pretty shocking
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now, look, we had it for a small group of stocks. mine, you know we have i had it for banks for ages the market caps are as my writing partner mentioned recently -- it may have been repealed it's incredible that the valuations have gotten to almost mythic plo portions. facebook -- zuckerberg said he has to fix it. amazon at $529 million apple at$898 million they represent the winners in their almost winner take all -- loser take none categories but now it's part of just f.a.n.g. so you buy the natural gas, you make money trump said he'll open up explorations, totally unlikely but you buy giant oil service companies schlumberger and make money. mcdonald's offers a dollar pen you cheaper than what others have, you make money
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amazon is going to acquire target, you buy it and make money. you buy the defense stocks, make money. i can list many more opportunities that couldn't exist in any other market. they would have been picked over or simply wouldn't work because the companies would disappoint you when they finally got to the equivalent of the finish line. that's changed thanks to the trampoline of index money coupled with low interest rate competition and new investors coming back to the market to buy individual stocks, stock picking has become fun again. also rewarding provided that you aren't buying total clunkers with bad balance sheets that don't deserve to go up no matter what. we're living in the era that elon musk can miss his own projections. the tesla stock goes ever higher we have marijuana companies with barely a lick of sale that are $6 million valuations. why shouldn't a company that has a good product that can make hay when the sun shines see its stock go higher? i pointed all of this out
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because i know that observations aren't per se rigorous and for almost two decades picking stocks with no rigor almost costs you money i don't know how how long the obvious will keep being profitable it will stop when everyone realizes what's happening and gray beards start giving up and stop buying stocks but simple common sense is actually making people money in this market. and that's pretty darn wonderful if you ask me. but enjoy it while it lasts. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.
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i cannot wait until sunday night. i am going to try to get realtime jensen wong the ceo of nvidia oregon state's own, one of the greatest people in our country when it comes to leadership in technology how can you not want to hear what nvidia has to say i always say there's a bull market for you, i promise to find it right here for you i'm jim cramer
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>> 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." ♪ he's hoping to whet the sharks' appetite with his idea. hello, sharks. my name is les cookson. my product is the carsik bib. i am seeking a $30,000 investment in exchange for 15% of my company. now just imagine for a minute, that you're driving

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