tv Mad Money CNBC January 10, 2018 6:00pm-7:00pm EST
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tbt is a hedge for that. >> overstock >> delta airlines in earnings, sister see you back here tomorrow at 5:00. "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 make you some money. my job is not just to entertain but to educate and teach you put in perspective so call me at 1-800-743-cnbc or tweet me @jimcramer. fear is the least rational emotion. logically you can't be worried about one thing and suddenly freak out when the opposite
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happens. it's totally lacking in rigger but it happens all the time around here and that's what throwing us off today sending the dow dipping, nasdaq loss 0.14%. let me explain what i'm talking about so you can see how a bullish situation gets turned into a bearish one by mepessimists who want it bo way. >> sell, sell, sell. >> and -- >> sell, sell, sell. this morning we awoke to a story of how the chinese are cooling to them. oh, boy, did that freak people out. shares came in for sale at the opening because of the chinese perhaps dumping the treasury you know the dow is down 100 points in lightning speed on that one of the principle worries of
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portfolio managers there is no inflection in the yield curve meaning you're almost getting the same return from short-term treasuries as you are from longer term ones that puts news a situation where we have what's known as a flat yield curve. something that is often a precurser to a recession makes sense fed raises rates too quickly, falls off and the economy worsens. if china comes into the market and starting dumping longer term treasuries >> sell, sell, sell. >> we won't have a flat yield curve anymore. the supply will move it up long-term rate also go higher and bears lose their big thesis. popping up the idea that a recession is right around the corner does it look like one to you i wish the federal reserve would sell off its own gigantic stash of long-term treasuries that would accomplish the same thing that the chinese would it's why i'm calling for president trump and gary kohn to
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issue a half a travel bond offering to make america's infrastructure great again, kill two birds with one stone build new bridges and tunnels and allow interest rates to rise tell me, how can we be worried that long-term rates are too low, so low they might be seeing a recession and when they go up thanks to the chinese we just freak out even more can both sides be bearish if you believe this is the case i got bad news for you today's sell-off in bonds in the concomitant rise in rates was so small you would need a microscope at least one of these things to see where it is. when i got in the business interest rates we were at 14%. when they got down to 11% we celebrated so keep any interest rate related scares in perspective with the yield of the 10-year down to 2.55%.
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gee, that's something to worry about. let me make one thing crystal clear this is not a be careful what you wish for story we want rates higher, period the pace of loan growth is slowing. something i'm sure we'll hear about when the big basics start reporting on friday. high or longer term rate also make banks eager to lend more bonds the chinese dump, the better ♪ hallelujah >> many other places where the bears are vying to have it both ways inflation is heating up. rearing its ugly head in europe where german bond yields have increased by 11% since the beginning of the year. put aside the fact that german rates are still negative meaning if you buy their bonds you're sgarped to lose money. doesn't matter suddenly everyone is fretting about inflation. which leaves me scratching my head because just last month everybody was worried about the lack of inflation.
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yep, the fear was that without inflation, wage inflation workers wouldn't get paid more so consumers would spend l'eggs so companies would make less money so maybe the fed wouldn't be able to raise rates quickly which therefore would hurt the bank earnings. that's the litany. that would be terrible for the market's most important leadership group because the financials determine a lot of what's working when things look bad this morning because of our newfound inflation fears jpmorgan's stock started to rally makes sense. the other financials soon followed and they did turn around the whole market for a time and, you know what, i got to tell you, you see how magic that leadership is when they turn around but that's why you can't have it both ways. you can't say, boo hoo there's no inflation let's sell stocks and then say, boo-y boo into, ts inflation, let's sell stocks anybody that tries to make both arguments is being disingenuous which is why you hear this from
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money managers who want the market to go lower why? so their performance can catch up with the averages that's the way this works, people i'm from this business oh, boy, here's the biggest one, oil. now that oil is comfortably above $60 a barrel we're hearing about how dangerous and inflationary these prices could be for all the people in businesses who need to buy the stuff. every time someone mentions crude it's within the context of oil being a breeding ground for inflation. it's practically a cliche by now but a couple of years ago when it was down and it was in the 20s and 30s, all we heard was that if it kept going down, it could take employment and back balance sheets with it the economics of once red hot states like texas and oklahoma were suddenly called into question there were even some conference calls devoted entirely to falling energy prices that also had independent oil companies thinking they would run out of cash and create a huge hole in
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the gigantic junk bond market. back then everyone understood we needed much higher oil prices high enough to get it to accelerate and take the pressure off financials and eliminate the threat of looming bankruptcies the sweet price that was supposed to make this all happen, yeah, you got it, north of 60 where we are right now yep, when investors were terrified of lower oil, $63 crude was seen as the holy grail and that's where employment would pick up, need for pipelines, and oil companies would be able to turn a profit allowing them to pay back the banks plus at the same time oil in the mid '60s isn't so expensive it would raise the price at the pump to hurt the consumer especially since new cars are so much more fuel efficient. in short, oil prices are now where everyone hoped they'd be two years ago in order to make the stock market hum and what happens, suddenly we hear we're dead men walking because oil is too high
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you can't make this stuff up there's just no pleasing some people and you know who they are, you got it i've become used to some of these scare tactics. other than the amazing warren buffett who advocated against this morning when being interviewed by becky quick a long-term approach, he advocated, let's go long-term where equities tend to perform well versus the bond market competition. most money managers want to talk about what can go wrong. even directly contradicts what they claim to be hoping for, not that long ago. buffett is so returns precisely because he doesn't react with alarm to nonalarming things. and he's been in the business long enough to know there is nothing wrong with buying stocks right here right now, i'll go one step further in a way i'm glad these cassandras are out there driving the market lower because they're going to give you a better entry point for your 401(k) or your i.r.a. the bottom line, don't be
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careful what you wish for, when good things happen embrace them. there's a cohort of money managers out there who need stocks to go lower and they will say anything to make you feel afraid they are the anti-goldilocks crowd. nothing is ever right for these people it's always too high or too low and definitely pointing to some looming catastrophe. these bears would be great in a horror movie just please don't take the financial advice all that seriously. i'd like to go to tony in california tony >> caller: hey, cramer >> yo, yo. >> caller: how is it going. >> great day got back from florida. boy my arms are hurt. >> caller: i'm hanging out in the rain in california. >> i covered some when i was a reporter out there covering homicide crime, it was never as bad as what i just saw this year has been just
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job-like, horrible for california in the last 12 month, wow. >> caller: we've been getting our you know what kicked >> it's terrible >> caller: i wanted to ask you about digital realty trust, you know, it's been a real good performer for me and a thank you for that but, you know, it seems caught in a bit of a downtrend with the rising interest rate environment, i was just wondering do you think it's still a hold. >> i got to tell you i've been watching this group, they're all trading together you know they shouldn't be you're in a good one i would actually be a buyer of more digital realty. that's how much i like it. now to tim in pennsylvania, tim. >> caller: hey, northeast philadelphia extra sharp cheese on our cheesesteak boo-yah. >> geno's, i'll be there sunday. how do i help? >> caller: learning with my dad and from you onc spark therapeutic. >> oh, my, this is -- you've got me in the most controversial
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thing and it's even a little controversial than the eagles being underdogs this weekend i've got to do more. meg has done fantastic coverage but i'm not done learning this story. let me come back on that one all right. matthew in ohio. matthew. >> caller: boo-yah, cramer i'm here with my dad >> hi, jim >> ah. >> caller: i like trucks is it a good time to take a ride with ryder thank you. >> chief, they're kind of much more into the logistics now. i know those trucks look cool but they're not. but ryder's logistics business is good. you know who's is better xpo. i wish that stock would come down get right back in it all right. you can't have it both ways. 9 second-guessers threw us off today. you know what, there's plenty of cash on the sidelines waiting to give in giving you a break on "mad money" tonight, man who helped push domino's from ten
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bucks where he started recommending it to $200, "mad money" fave patty doyle just announced his retirement plans [ baby crying >> i'm talking to him about what's next then severs hitting the play button on the video game stocks? i'll tell you if it's time to power up your portfolio or do a reset when i go off the charts and tableau software symbol data is making major changes to core part of its software to keep up with its customers' data needs can it also help your portfolio? i'm going to talk with the ceo so stick with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweet. 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.
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we're feeling pretty good about where we are getting the pizza right, getting the communication right and give the customers the kind of experience that we wanted to give them. still a lot to come on the technology front and part of that is around the delivery experience stay tuned we're a competitive bunch here >> wow, domino's pizza, longtime ceo patrick doyle would be stepping down come june. that's right he's going to be replaced by richard alison currently the president of dominos international. down 7 bucks easy to understand why in fact i'm surprised it wasn't down more. maybe much more. we've been behind doyle nearly every step of the way. ever since he came on the show in 2010 stock was around 10 bucks and change even at today's decline, it's at 200 bucks and nearly 1,900% gain under his leadership they transformed from a self-described cardboard tasting pizza to a terrific company with an amazing online ordering
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system and phenomenal pizza so what does the future look like without him? let's ask the pan himself. patrick doyle as he gets ready to take a victory lap after an amazing tenure mr. doyle, welcome back to "mad money. >> thanks, jim i appreciate it. >> pat, when i spoke to you yesterday, i was sad because you've been remarkable and you've been a great friend of the show you're a4. got a lot of things to do. why now? >> you know what, i accomplished the goals that i had set out for myself when i took over in 2010, franchisees are doing great. they got the best unit economics in the industry. we're number one in pizza now and so really the third part of this for me and kind of always thought it was going to be about a ten-year deal, this is going to be about 8 1/2 by the time i leave at the end of june but it was do i have the right leaders in lace and the board, this is ultimately their decision on who
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will succeed me and i couldn't be more thrilled that rich alison is going to be the next ceo, russell wiener is going to be the chief operating officer we have an amazing team in place and so i would not leave unless i was confident that this business was go to do even better going forward and so terrific team, if they're ready and i've hit the goals that set for myself, there's a rhythm to these things and this is the right time to do it. they're ready and so i'll run hard until the end of june, take the back half of the year off and figure out what i'm going to do next. >> okay, i need to tell you, as soon as people heard that you were leaving,chipotle's stock jumped a huge amount no, i spoke to him he has really no plans he wants to figure out what his next chapter in life is, right >> that is a exactly right and i don't -- you know what, i'm in a position that fortunately i can do this sequentially so i am
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thinking about nothing but domino's until midnight on june 30th and then my wife and i are going off and take six months and figure out what our next adventure is going to be and i'm not going to retire. i'm too young for that i'm going to keep doing something but i have no idea what that is going to look like and i'm going to take in a little bit of time the back half of the year and figure that out and, you know, maybe you'll give me some visa long the way on that. >> well, you're young. i said 54 years old. it's too early but you said you'd accomplish, what, three things when you were done when you got all three done you were ready to roll, right >> yep that's exactly right >> so let me ask you something, did you know when we first met that when you did that revolutionary campaign where you told me that the pizza tasted like cardboard, that you could have that phenomenal return? i mean you had to start somewhere. you started with the most basic, but then you just became a
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technological marvel too did you know a lot about technology i know you know a lot about taste of pizza >> yeah, you know what, i did not. i mean, if i think about the different areas of the company, certainly i ate a lot of pizza i was eating domino's when i was in college and, you know, i had worked in finance and i had been a marketing guy and i had run operations and done a lot of different things but technology had not been on that list. and, you know, look, all i can say today is i understand what you can do with technology but, you know, kevin babsa coni is terrific i have to have a lot of people smarter than me to make that work. >> i want to give you a chance to talk about something you did, make it so that again younger people, immigrants, people who would not normally be able to have a business for themselves,
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you created an environment where that could happen. talk about that to us. >> well, and that's ultimately what's most important to me is, you know, over 90% of our franchisees in the u.s. started as hourly workers in our stores. and, you know, we've now got an 800 franchisees in the u.s. that are making just terrific money on their business, they're creating opportunities for more people within their business, they're generating new franchisees and there is nothing more important to me than that and that creating opportunity. that's what gets me excited every day and i'll tell you that's the only hard part of this is, you know, i got an awful lot of great friends in the system and in the company and i guess the good news is, you know, can't be a pure friendship when you're working together and, you know, and i'm going to continue to be friends with an awful lot of them going forward. >> well, i got to tell you, i've got just one question about
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mr. alison how did he do in international and what can he bring to the table? >> well, you know what, you look at his track record in international. he's been running it for seven years. it's been growing faster with him running it than it's ever grown before track record is absolutely phenomenal before he came, he worked with a lot of different restaurant companies as a consultant and then, you know, came here and is just lighting it up as a leader. he's smart he's disciplined and he is an incredibly good person and, you know, all of those three things together with the track record make him a terrific choice and again you know it's why i'm leaving now, if you've got somebody ready to take over, there's just a rhythm to these things, and it's time he's ready and i couldn't be more excited. >> all right well, look, i know you're not done before you retire you got to come here one more time. you bring me that no cheese pizza i like so much pat doyle, congratulations in all you've done. i hope you have just do so many
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more great things for people and for shareholders and, yes, for you and your wife. why not? it's your time too that's patrick doyle, president and ceo of domino's pizza. the best performing stock and the best performing ceo we've ever had 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.
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regular viewers know i've been a huge fan of the video game stocks. there is he a whole generation of people who can't remember a war without nintendo many are old enough to spend meaningful chunks of their money on hobbies plus the technology keeps getting better including the chip it's run on making games more and more alluring for couch bound millennials who order domino's pizza as 2018 gets rolling i think it's important to look at what's been working here and what might change going forward that's why tonight we go off the
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charts with robert marino. brilliant technician, happens to be my colleague at realmoney.com. get a better sense of this exciting industry that i know you care so much about first of all it's worth putting out over the last 52 weeks the best performing stock was the one we had on the table forever. take two interactive software up 127% that's so good it makes electronic carts, the two largest gaming companies look like lag bards even as their stocks have surged 42% and 74% just in the same period. wow. i know they look bad but wouldn't you love to have a stock that was up 70 these are tremendous gains even if they aren't at take two levels and more important merino thinks both look poised to play catch-up to take two as the year progresses but let's look's chart. at least in the stock market this one is the undisputed
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leader so glad we had strauss on so many times for those who don't know about this sort of thing maybe you have too much of a social life perhaps, take two is the company behind the most popular gaming franchise of all time, grand theft auto they also have a series of other major titles, redemption, border lands, ex-con and nba 2k among others and these are the ones that do good on the nvidia chip i always talk about. i used to look at take two as a scrappy underdog but its stock has been running so fast for so long it started to rival the big boys even if this $13 billion company still isn't quite in the same league as the $34 billion ea or the $50 billion agotyvision. after flying flew the stat that times to fear. see right there, had the lid on
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it and then pulling back rather dramatically time when a lot thought it was done merino said it pulled back below its 00-day moving average and since then has been consolidating in a cup and handle pattern, all right. right to below ceiling of resistance at 115. this company formation is important. a little cup, the bottom, followed by sideways looking like a handle. one of the most reliably bullish patterns in the book, the book being "get rich carefully" with a whole chapter on those patterns $115 ceiling retesting its november highs and merino likes what he sees happening here. now, it's not just that. the moving average convergence or mac d indicator get a load of this, an important gauge of momentum that technicians use to detect changes in the stock's trajectory before they happen has just made a bullish
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crossover. there's your bullish crossover we know to look for those where the black line crosses over the red. another reliably bullish nall that a stock is ready to run predictive important. the on balance volume line, a momentum indicator that looks at volume flow adding the volume on updates and sub statisticing it on down days continues to move higher going in the right direction. that's another bullish tell suggesting money managers continue to add their positions even up here now, sure, over the last couple of days take two pulled back dropping below that level, again before bouncing back above it today. but merino think it has a lot going for it and ready to resume its long-term march higher wouldn't that be incredible to go again that wouldn't stop us. that's exactly the kind of i'm i'm always looking for and dogs remind me of what happened in nvidia he doesn't think take would is the best bet in the video game space because activision and e
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has have more room the daily chart of activision which my charitable trust owns, i talked about it this my club call call of dut duty and a host of incredibly lucrative franchises. it has a expose tour to businesses where they pay real money to watch others play video games in big arenas. it has a season. ncaa scholarships for heaven's sake it's under consolidation for four months. basically trading sideways, stuck in a range between 60 and 67 last month it dipped below that and panic right there but bounced after mitting its 200-day moving average making a comeback ever since the shorts have been laying on it right here and so far have been very effective in keeping the lid on. feast your eyes on the that cast
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tick oscillator and whether it's overbought or oversold and recently right now just recently crossed over above the center line now when, it does that merino says it's a sign the stock is ready to gallup. it's only a buck away from resilience that held it back for months and chaiken, the money flow, philadelphians which measures it recently moved into positive territory so you can see this was marking time here and just went like that. activision made a higher high uptrend and merino thinks it's ready to break out this four-month period of consoletation is like a coiled spring ready to propel it higher perhaps dramatically higher. electronic art, the old big daddy. in another titan behind battlefield, the symptoms aims. and nba live
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he likes this chart. another stock that's been consolidating for months for even longer than activision. hey, stock up 42%. ea stock began to flatten out the middle of last year then rolled over forming around the top. in december the stock got beaten all the way down to 100 bucks where it held. since then it's been forming, yes a cup and handle pattern just under 110 with ea at 112 the stock broken out above resistance and relative strength indicator, rsi, important momentum indicator tracking higher since december that's very positive on the other end cumulation distribution line, another key measure of money flow has been flat that's part of what i don't like about this he likes this but i'm not its biggest fan. this is going to need to pick up before merino think it's ready to run once it does he thinks it's has
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a lot of upside. it remains one of the hottest groups around and have more run to run in 2018 including take two interactive but the charts and what merone know suggested of ea and activision could give you better perform mass as they start to play catch-up to this tremendous outperformer run by strauss zelnick. gio in new york. >> caller: how you doing, jim. >> i am great. how about you. >> caller: good. thank you. i got a question about kodak >> yeah. >> caller: all right so do you think that due to the recent crypto craze kodak's be pumped or do you think kodak and kodak have coin to be one of 2018's hottest stocks. >> look, i think this stock is a lot short at the fundamentals aren't that great and ca-ching, ca-ching warren buffett and becky quick
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were talking about it would end badly. he didn't say it would end badly quickly. i don't want to be on the other side of warren buffett scott in new york. >> caller: greetings. >> how are you >> caller: surprisingly well how the heck are you >> surprisingly well myself. we're both surprising. what's going on? >> caller: it's all good i've had sirius xm since 2012. >> sweet >> caller: i like the product. i like listening to it i like the company i have a got 70,000 plus shares. i'd love to sitton it for another bunch of years what do you think? >> wow, man, you've done really well in that it's got two of the smartest investors largest shareholder, john malone and warren buffett agree about the channels, like 27 here's what i would tell you, people thought they had negative news today and i read through the news about the numbers and i thought they were terrific not only do i want you to hold
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on for those who don't own it any dip below five. >> buy, buy, buy >> good call by you. >> congratulations for making all that money on that stock we love that on "mad money." video game space is one of the hottest spots out there. electronic arts and activision the company that works with amazon, google and spacex. is it time to consider tableau software i got the ceo. and individual companies don't seem to matter anymore i'll reveal what does. the lightning round. stick with cramer. >> cramer, you are super, you are awesome. >> i'm a first time caller. >> thanks for inspiring me to get into the game. >> your show is the best >> you have transformed me thank you, cramer.
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i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom doughnut cutters. wow! all with points. that's how i created the ripple. the doughnut, in a doughnut, in a doughnut. suddenly, it's everywhere. i mean, it really took off. what will you create with your points? chase for business. make more of what's yours.
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graces that rough patch a couple years ago that i think is now behind us earlier they launched a revolutionary product called hyper. which is an in memory data engine designed for rapid processing of larger complex data sets at speeds much faster than you get from the current industry standard. now at the moment they're in this quiet period so we won't talk about the quarter long term and talk about the product. what it does, how it can be used and check in with adam, the president and ceo of tab employee software to get a better sense of what's happening. adam, welcome back to "mad money. great to see you a lot of people are saying well, wait everybody always has data. what is hyper do that is so much better than the other mousetrap. >> we're really excited today to be launching the newest version of tableau which as you said includes hyper which is a breakthrough new data engine technology it lets you bring in data five
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times faster than before lets you perform queries or analyze data in tableau up to three times faster than before and bring in much larger data sets and perform analysis in many cases impractical before so customers are excited about the release. >> we had paul on from unilever recently far flung universe of products where he has to be at home in every different country. how does it make life easier for paul >> at unilever that geographic and also product dispersion you reference is key so they were having some amount of trouble trying to understand what was going on with different products and various local countries and with tableau they're able to globally take a country by country view of their product lines and able to look at and understand local competitive dynamics, get a global and drilled down local view which gives a lot more visibility into the business
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>> do you have to be genius to use it >> no, tableau is all about intuitive, self-service, you know, empowered analytics at a really low cost so we've got not just big enterprises, in fact, right here in your backyard we have the brooklyn public library using tableau so librarians looking at circulation patterns of language books and changesing what's displayed on the book based on the circulation patt n patterns they're seeing so do not have to be a data scientist although a lot do love it. >> we do our charity in brooklyn, where we live, it's a diverse community and the old days you would just have a bunch of books in english. i'm sure that is something they had no idea how to handle until you guys came along. >> yeah, it's exciting to be able to work with them so they can make data driven digs because as they say without data it's just somebody's opinion. >> very good i like that. we think about data and think about the internet and when chuck robbins comes on for
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cisco. billions of pieces of date and no one can make sense of it. it sounds like hyper could make sense of it so we could use it for something. >> i.t. and so many other big data applications out there, there's just an inundation of date father and so much of it needs to be analyzed and a lot of organizations have trouble doing that we're working with one fortune 50 industrial company who is able to load in with hyper in their testing ten times the amount of data in half the amount of time and more importantly, because they can bring more data in and analyze it in one shot, they've gone down from the 30 different, you know, workbooks, independent to look across their world by businesses into one single workbook and just think about how much easier, how much more cagneytively it makes sense to one human being to be able to look at and do analysis in a single workbook. >> exxon, world's largest oil company, different places have to be at home, east of africa and southeast asia, know what to
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do with their drilling budget and need tableau. >> exactly exxonmobil uses us in a whole bunch of different ways from doing security and risk profiling all the way through some of their uptreatment and downstream businesses and have been a great partner over the year. >> it's amazing because it's been said previously they had to use a lot of different vendors not in a way that's easily understandable from somebody who is not a computer scientist. >> we've seen a lot of that consolidation with a lot of big companies consolidating from the largest number i heart is 21 different solutions from big fortune 50 consolidating down to just a couple solutions with tableau being the lead one and as we build out tableau more and more broadly into a full analytics platform used as a mission critical technology solution within a lot of big enterprises. >> one last question, before this, before hyper, were there competitors that you felt like
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you had to -- like 6 1/2 dozen and now you've leap-frogged them. >> i think hyper is a breakthrough technology. at the end of the day it's about the business benefits. what's going to allow people to do is analyze fresher data so, before when things took a longer time to load in, bigger data sets, longer to analyze, people just refreshed their data less often you mentioned iot. think about our customer in national grid who is a big electricity and natural gas company, or a wind farm. you've got all this energy data coming in. if it's stale you're making decisions based on old data. if you can make up-to-date decisions you will make better decisions, i think that's the potential for improving businesses with hyper and tableau you. > said you would reinvent the company. you're doing it with the right kind of tools. i remember when you first came on you said it's a work in progress we'll get there. i think this sounds something that will take the industry by storm. want to thank adam selipski for
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it is time the lightning round. >> sell, sell, sell. >> buy, buy, buy >> and then the lightning round is over. are you ready, skee-daddy? time for the lightning round blake in nebraska. blake. >> caller: hey, jim, a big boo-yah from nebraska. >> love the cornhuskers. what's going on? >> caller: pretty impressive in 2017, i rhythm technologies. irtc. >> we have to get them while we're out in san francisco heart palpitations and do a lot of stuff i was hoping my watch would one day do because that's how you stop heart attacks, the most preventable form of death in this country. i like it. diane in new york. diane. >> caller: hi, jim how are you? >> i'm good. diane. how about you? >> caller: i'm great thanks i have a question for you. we have southwest airlines a couple of years ago, we sole it.
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we just bought back into it two weeks ago. what are your thoughts >> smarter than i am and sole it for the charitable trust and thought i was so smart making the 10%, 15% rick in new jersey rick >> caller: hello, jim. thank you for taking my call, sir. >> of course >> caller: my question is about general dynamics i've held it for awhile on a small gain and it's like watching grass grow. do i -- >> selling scott's miracle gro lockheed martin and general dynamics is all for me it trades in fits and starts tina in arkansas. >> caller: thanks for taking my call, jim, and for teaching me so much over the year. >> sure trying to. yesterday in the conference they said that and made me feel good. omar thank you for the ride. what's up?
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>> caller: i'm down about a million percent on frontier communications is there any hope or chance of a takeover in the next year or turnaround >> you know, it is up 10% this year once the -- i saw the tax law, the reason i know sumner on twitter was saying, listen, i love the service, i'm buying it. i don't like the balance sheet i'm not going to get in there and say, listen, the charts are looking better i would scale out on any strength remember a million percent, the greatest thing about some stocks is they do stop at zero. never been a minus three but i do think frontier is in trouble. very troubled company. i want to go to mary in georgia. mary >> caller: hey, jim. how are you doing? >> i'm good. how about you? >> caller: i feel more like boo-hoo. >> why >> caller: stock is southwestern energy >> mary, mary, you're quite contrary, i think you're absolutely right too much gas, not enough oil i say stay away. terry in arkansas. it's the second from arkansas,
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razor back >> caller: terry from hot springs village, arkansas, a golfing mecca. great show, jim. >> thank you you are in one beautiful area. i have been there and you are so right. how can i help >> caller: well, i've own toyota motors since 2007 and the current dividend is 2.67%. do you recommend buy, hole or sell. >> toyota motor is a beast i would still buy it even up here that's how good that company and that, ladies and gentlemen, is the lightning round >> announcer: the lightning round is sponsored by td ameritrade had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one.
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something amazing has happened here and it doesn't get enough attention individual companies don't seem to matter much very more index fund buying has gotten so strong that it overwhelms all but the smallest stocks, ones, of course, too small to be included in the averages and the largest ones that are so big they feel like the indices themselves you know, it didn't used to be this way even as recently as a few years ago individual stocks mattered a bad quarter from a big name company could hurt the whole market now it doesn't even seem to create a ripple in its own sector at least not if the group has some momentum. why does this matter simple the dominance of index funds makes it harder to be a stock picker oh, boy, is it ever brutal on the short sellers too.
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why bother with a high paid hedge fund manager who takes huge fees when you put your money in an index and get an average return with a whole lot less effort. they're a great way to save. you shouldn't even consider owning individual stocks until you've got at least 10 grand in an index fund but that doesn't mean i want them to control the whole market and they do now it was a little hard to see this coming, i've got to he will you. i remember once talking to an extremely cerebral ceo at a major retailer 25 years ago whom i was congratulating as his company had just been added to the esteemed s&p 500 oh, he wanted nothing to do with it he was actually quite upset about it and wanted to know how he could get his company removed from the din ex-. i said that was silly. membership in the s&p 500 is a badge of honor but he told me he felt like all this work was thrown out the window because his stock which had been a good measure of his personal performance would now be just a commodity like every
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other stock in the index he said that one day it wouldn't matter at all what he had done, the judgment of his company's worth would be set by the indexers not long after that he sold his company and retired to do charity work i bumped into him not that long ago ane he was as adamant as ever once it gets into a major index its individual ceos effort's are meaningless unless they sell the company. boy, time has proven him to be a visionary. i think it's lamentable. when i interview jane elfers all i can think you'd have a much better return from owning that terrific stock than you would from the indices the truth is there's still plenty of individual stocks that can generate amazing performance much bitter than the averages but the forces of passive vesseling don't want to you hear about them such zealots, stock picking can still matter when we see a phenomenal executive on the show we need to call them out. we salute them so the next time someone tells you that active
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money management is strictly for boneheads and anyone with a bank puts all of their money into index funds i got an idea. i want to you remember the story we heard from domino's pizza earlier in tonight's show. that stock has gone from $10 to $200 because of one person now he'll say the team, of course but it's because of ceo patrick doyle. and i want you to try getting that kind of win from an index fund i dare you i dare you stick with cramer. what's team spirit wor (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 like you do sometimes, grandpa? and puffed...
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fdr-like twist maybe you have nothing to fear other than from the people who promulgate fear themselves. we saw that at the opening today. a lot of people panicked they didn't even know why they panicked gave you a chance to get in at some pretty darn attractive prices i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i'll see you tomorrow
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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." ♪ with a better solution to a school-day dilemma. hi, sharks. i'm cyndi. and i'm paul. and we're here today seeking $150,000 investment in exchange for 15% of our lunch-box company, yubo. [ bell rings ]
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