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tv   Mad Money  CNBC  January 23, 2018 6:00pm-7:00pm EST

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it in the business, i think we have to look at the smh here i think we see weakness in the next days. >> i'm ma listily, that's the end of "fast money 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 so call me at 1-800-743-cnbc or tweet me @jimcramer. if you want to understand this market, i mean, really understand it, you need to throw
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away nearly everything we've learned about stocks over the past decade. i keep telling you, this time isn't any different which means you can't take your cue from the playbook that worked in more troubled times wanted to give up on stocks on companies that -- and never look back but you know what, these days that tendency will lead you astray including on this where the dow slipped four points and the nasdaq gained .71% old habits are hard to break and the habit of baling on stock after disappointing news is no longer necessarily a money making strategy. in fact i will go as far and say
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it is a money loser. i am talking about the cut and run, the stock of bank of america. it failed speck tack collarly. and it would indeed crush you but that changed at your president trump surprise victory. of course donald trump, our booming economy is part of an expansion happening worldwide. this allows the federal reserve to raise interest rates. well what happened this time around the stock blew through the $21 level. it hasn't looked back. it hasn't even given you a nary
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buying opportunity i think it has a lot more room to run if you sold it, well you ended up leaving a lot of money on the table. and i don't know how you get back in, same for caterpillar. it would collapse either with problems with china, ishyou ssut the dealer network, smaller dollar it was always something. it got so bad that shares to low 60s in late 2015 and since then, it has been off to the races climbing to $169 as of today
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that's what happens when you have a synchronized global expansion. you had to resist the urge to sell on the bad news or you lost out on an amazing opportunity or if you heaven forbid you could buy on bad news. yeah, that's how people are making their money well, i mean you got to stock. consider a week ago, mark zuckerberg talked about how facebook had to make radical changes to keep their user base happy. he admitted it might cause short-term pain but it is for the customers. the customers are what matters old fashion throw back
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wall street hated it all sorts of commentators told you that facebook had lost its mo jo. it was done. it was finished. it was finnito buried what did your friends say, your wife or husband say. everyone i know said good. i had stopped using facebook gravitating towards facebook instagram. in short zuckerberg's was responding to facebook's need to interpretation this is a good anyone and most likely lead to higher ad rates as advertisers push for a better user experience and exposure to worldwide audience facebook still has a lot of
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assets so of course, the stock has come back with a vengeance. up for more than a dollar from where it was when zuckerberg made the anunsation. don't look at me let's deal with works in progress go for it basis. a few weeks ago, szt, consolation brands wine, modelo franchise or pacifico were at fault ceo said the weakness would be ephemeral. he has always backed it up and this time by huge bucks.
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$3 billion buyback i told members that it was time to buy consolation which is what we did for the trust regular viewers know in my spare time including tonight, my small plate mexican restaurant you know they pay less than $30 million for this incredibly hot brand. and then what did we learn yesterday? backardi she would out 12 billion for patron yet it is not even in the forecast for consolation. who is think about that? yeah, the casa amigos, this man paid almost nothing for the one that is to me the best and maybe the hottest. you want another
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i have no idea what the post earning of selling ibm was all about. i can tell you the quarter wasn't nearly as bad as the bears had you believe. now know what the stock is doing? recovering the quarter was good and the forecast was great in the old days, people would stay away from that thing like it was toxic me, i want more. how about proctor and gamble and j & j? proctor reported a widely pan quarter this morning already improving itself under the leadership bring a lot of new ideas to the table. maybe take costs out projected a good quarter
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but got hit for a key drug this is precisely when you want to buy a stock like johnson & johnson. it is like, hey, i am a doofus, sell j & j but this stock hardly ever comes down and what is this management going to do but to find more ways to find you money and perhaps in the market of 18 months ago, they needed to spend several quarters in the penalty box, i don't know 18-month majors. now that i am saying these are straight out buying opportunities. new nature in the beast. this bull market is like nothing we have seen since the great rallies of the '80s and '90s
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if you take your cue from the last decade, you will miss out to some incredible opportunities. we are now in a world where bad news is good news. bad news is the only thing that gives you enough of a meaningful pull back to pull the trigger. take advantage of them they just don't come around often enough anymore brian in new york. >> caller: hello thanks for taking my call. >> absolutely. what's going on? >> caller: my question is about archer daniels midland the merger deal. i have been a long time owner of adm and believer of the idea that the world needs grain/food
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logistic. >> i want you to hold on to it but no sense to cut and run now. the news if they get bungee it is big i want to go to richard in arizona. >> caller: hi, jim i am looking at a company about a 3.5 to 4 billion market cap. very profitable. bed bath and beyond. >> i keep waiting. i keep waiting and waiting for good news. why do that? i do not think this is the level to give up on bed bath even as i admit they are the focus of the death star amazon anyway, down from 60 to 20 the idea of writing off a company after one bad event it's
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no longer proof. it is rash and rash will cost you a lot of money. "mad money" tonight, an under the radar tech player. netflix may be hitting all time highs but i will tell you why it is bumming me out. maybe it is time to cha-ching, cha-ching. stick with cramer. >> 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 tmaon.cc.m.o dmeynbco
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i keep telling you, every now and then, this beast of a bull market it will blink, give you terrific buying opportunities in these high quality stocks
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but these opportunities don't last very long you have to be ready to pounce or you will miss your chance to get a lower price that you deserve. tonight i am going to go right into the beast and tell you about te connectivity. a major electronic i expect it to give us a good quarter. secretly i am praying -- well i just told you -- some minor defect that it will get slammed. this is how i feel about so many stocks these days. i love this market i feel more comfortable recommending things when there is a possibility of getting hit. why do you want you to be ready, willing and able to pick some
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up first let me explain why te connectivity, the artist formerly known as tyco electronics. it has exposure to a lot of businesses including all sorts of electronic components especially connectors. now if i were a science teacher i would tell you that a connector is something that pleat completes a circuit. if it runs on electricity or processes information, you better believe it has at least one connector hidden inside. that means te connectivity has a lot of exposure to one of our famous concepts, the iot
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the interprnet of things. these are red hot areas which is why the stock has been such an incredible performer 43% of the last three months and almost doubled since i recommended in 2013. make sense just consider some of these end markets. te connectivity gets 40% of sales from the automobile industry where they benefit from the increasing complexity of modern cars. that means they are making a killing off of the rise of hybrids and electric cars. for electrics it is $200 per vehicle. and for higher end electrics like tesla, it is $300
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also makes sensors for the automobile industrial market that is growing rapidly. exposure to industrial equipment, aerospace, medical divisions, communications. the new tax code will be a boom. aerospace, you don't need me to tell you it is on fire it is one of the things that republicans like to spend money on oil and gas, come back in the past connectivity says they don't expect to see much pick up here unless oil prices climb back into the '60s and that is what is happening. thanks to the ride of the cloud and the data serve that is a lot to like. and also why these guys have been steady growth focus on more profitable
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business lines and you get mid teens growth what makes me feel confident about te connectivity right now on the end of the corner where is my gun? okay, i have a smarty. we just heard from te connectivity diverse analyst report first one in four years the company told a compelling story. and that was less than three weeks away from the end of the corner and since then the company only got better. while management didn't raise their guidance, they did provide long-term targets. and double digit earnings growth manage amount was enthusiastic about the size of the opportunity market and also talked about opportunities in the bull market that increased the growth rate
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hopefully the stock will sell off anyway even if only briefly and that will give you better chance to buy in maybe some line item will be weaker than expected if te connectivity manages to deliver a truly bad quarter i will come out here tomorrow night and punish myself accordingly. although i think that is unlikely remember, six months ago, everyone thought the automobile industry was peeking and then two big hurricanes that trashed vehicles and now the economy is so strong bolstered by the tax cuts it is easier to imagine the auto market doing fine this year. analyst who covered the stock of wells fargo, if it only deemed the companies earnings by 12
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cents a share. best of although, what a cheap stock. 17.6 times next year's earnings. bringing the yield up to 1.75% still better than that german bond remember the biggest winners and that is what te connectivity is done. they have shrunk the shear cap by more than 15% bottom line, when you find a high quality company that is making a killing thanks to the booming economy, you should be preparing yourself for the next pull back. te connectivity on fire, reports tomorrow morning and i want you to be ready just in case it will go down. if we don't get a pull back, the
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stock is cheap enough that you can put on a small position but i need you to wait until that next dip even as they are few and far between in this market much more "mad money" ahead. netflix. could an epic run in the oil market just be beginning i am going off the charts to find the crude reality how private company bar stool reports. hi i'm joan lunden.
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you know your family we know senior living. together we'll make the right choice. normally i love it when my favorite stock surge higher. but today's 10% run in netflix kind of had me bummed out. don't get me wrong, the company
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just reported an insanely good quarter. what makes me upset is that netflix could have been acquired for less than half of its current price a few years ago. it sounds like this was hard to see coming i did repeatedly come out here and harp on the idea that apple could pay 40 billion, even 50 billion price for netflix and it would still make for a phenomenal acquisition even true before they figured out to use artificial intelligence before they figured out what you wanted to watch if apple owned netflix they would never have to remind analyst that they have a growing
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net stream all netflix was missing was a machine to provide the best video experience and that was apple. and a netflix take-over could have made sense for google or amazon but they didn't take the company or the idea seriously even after i waved what would have been my pidly banker fee not going to be bought still, i think the stock has more room to run first there was a moment in the conference call when the brilliant ted ser ando talking
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abo about bright despite being wildly panned by the critics but as was explained and i quote the way to reconcile is to recognize the critics -- prospects of the firm. of the film. he suggests that you will get a more accurate read by looking at google trends, rotten tomatoes the thing is netflix is about 5 million households away from saturating the u.s. market so it is the rest of the world that matters because they have the data and the artificial intelligence to figure it out and they use it. very different than cable where it can be a pain to channel surf
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and find something you like or don't. netflix did it first first mover advantage is what matters. these days tons of companies are using homegrown content. i click on who is watching and it tells me exactly what i want without asking they know. how do they know i wanted to watch "the punisher. or the "black mirror." they were right. i tell you this because it is their job to know. and as long as they keep doing that job and getting the content that you want without you knowing, wall street will keep paying for the stock so at the end of the day i am torn on the one hand i love that netflix continues to make so much money for you, the
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shareholders, i can't help thinking what a huge missed opportunity for the big guys now it is too late for them to duplicate or buy good thing it is not too late for you to buy even at these prices, it is market capitalization is too small for worldwide market opportunity. i want to go to mike in texas. >> caller: hi, jim after purchasing stock in monster beverage back in may of last year, i am up over 50% and monster closed today just under 52-week high. >> i don't want you to touch it. it doesn't act like nothing is going on it acts like something is going on i like the company you are going to hold that stock and play it out.
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i think good things are coming down the line. netflix just won't quit defying. if only apple had bought it years ago. we could substitute facebook, google, it doesn't matter. stick with cramer. - [narrator] wait, are you losing your hair? no one wants to be bald. but there is hope. - when i look at myself now, that's what i want to see. because that's really me, that's me inside and out. - my wife's told me, "you look great." - i love having my hair again. - [narrator] hair club offers all proven solutions backed by our commitment to satisfaction guarantee. if you're not 100% satisfied with the solution you choose hair club will apply the full purchase price to another proven hair loss solution, at no charge. - it made me look so much younger.
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we needed to talk about the remarkable insurgeons in the price of oil i think it is safe to say the industry is turned every time we rally to the higher range, you hear bulls claiming oil was ready to rebound break out. flooding the market of supply and the price came tumbling down so of course that is when we got the real recover and boy oh boy has the backdrop changed for oil. last year it was the supply glut and now is shortage.
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30 year low. with all of these forces not to mention low inventories. oil is surged up to $64 a barrel what is next for the price of crude. should we be concerned that the oil market is experiencing something on the rise of irrational exuberance. we are answering that with charlie garner someone who writes with me at real money and has a terrific track record when it comes to the price of crude may have migrated to the oil market first let's take a look at this weekly chart of west texas which includes the commodities future
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commission report or the cot report here we go remember, this is the report where they show you the net long or net short position. the large speculators, okay, meaning professional money managers small speculators and that means home gamers and commercial hedgers. people in the real business. we care about the commitment of trade traders report because as gardener has shown us is it is important to know how it is positioned one way or another, it can often indicate the trend is about to change makes sense when everybody is long or owns that means there is no one left to buy when everybody is short, no one left to sell so what these numbers and chart
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tell us these days as of last week large speculators were holding the single largest bullish position in the history of crude oil position. 666,000 net long contracts now i have to say that is most bullish position in history. again, being bullish is not a good sign. it's when everybody is bear that you want when everybody is bullish you don't have anything to convert to start buying to take these people out singly commercial hedgers holding one of the largest oil hedgers in history now you are starting to get in situation where both sides are on the track there is a universe where people keep buying oil hand over fist and a lot of risk in the world but probably not this universe when one of these mass speculate
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best you do not want to get caught in any where near the blast radius those contracts they are presenting a huge number of potential sellers. gardner suspects it could push crude back to $50 a barrel possibly lower she is careful to point out that the fundamentals don't need to deteriorate. everything could stay the same as long as these speculators feel the need to take profits. weak dollar has been good for crude oil. so check out this dollar, this daily chart of an oil versus the dollar index futures which measures the greenbacks against the dollar currency.
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as the dollar plummets, oil has been surging but gardener notes the pendulum swings both ways where it should be able to find a floor of support the other thing is the correlation is strong it at the moment the dollar index and crude is settled opposite direction roughly 90% of the time. over the previous six months the correlation is 50% kind of like 50% we have gone to extreme levels if the dollar bounces oil should go down according to this comparison even though the greenback has been making lower low. gardner notes that it is finding support as it approaches 90. that is why she thinks it has a
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chance of reversing course sooner rather than later how about the weekly chart of the crude oil itself gardner things there is little reason to be bullish here. crude seems to be on the brink of a break out but gardner says it is an exception rather than the rule the rsi is above 70 for the first time since mid-2011. classic sign that oil has been overbought and do you for a pullback swing of how high it went and the up trendlevel has been traveling in the 2016 low. bottom line put it all together
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and gardner things the chances of oil rally is slim when you look at the price of crude out five years, prices are much lower the charts and especially the huge net position and the fdc position support my view, proceed with caution. "mad money" is back after the break. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today.
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>> announcer: lightning round is sponsored by td ameritrade >> television for $800. jim cramer hosts "mad money" on this network. >> what is cnn >> no. gerard. >> what is cnbc. >> it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire we'll play this sound -- [ buzzer ] -- and then the lightning round is over.
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are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." >> eagles and patriots fly high for america. hpq is my stock. >> let me see what the prediction here. okay hpq strong stock downgraded today. i say buy, buy, buy. >> caller: booyah from monterey bay. what do you think about coherent stock. >> i like -- >> caller: i want to congratulate you on that philly win. but i want to talk to you about ch robinson. >> one of the best stocks out there. robert in south carolina. >> caller: booyah. i am a finance student and my
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approach is across between you and buffet your opinion on yirend -- >> he is up here the rest of us are here. lorraine in california. >> caller: spg sell or hold. >> they will get through this. mcgregor in pennsylvania. >> caller: super bowl down booyah my question is about green plains ink. >> a bad idea. and that concluded the lightning round. >> announcer: lightning round is sponsored by td ameritrade really helped me up my game. i had a coach. math.
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what resonates with millennials? that is something you should be thinking about right now real money to spend. and the future belongs to them what can you do. at this moment when it comes to the male half of the demographic. nothing is more appealing than a
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psychal bar stool sports to a diversified natural and national media property with its own channel on sirius radio. it is a video service. perhaps the most fun site you are going to go to even on the edge privately held company we could learn a lot from them even if they okay they are patriot fans let's take a look at founder bar stool sports and bar stool ceo welcome. welcome. >> thank you. >> i want to have a real conversation we book a lot of guests and
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frankly people say that's nice do you like the stock. you guys are known for breaking through. how did you do it? and tell people how you can break through too but it is not easy. >> well, yeah, i think a lot of it, is the authenticity of what we bring to the table. i have been doing this for 14 years i hand out papers. i write. i have a million different aliases for myself i didn't want people to know it was all me and then i would hand out papers when people went home in the subway and it grew word of mouth no grand plan and just hard work. >> natural now you come at the company and you are one of how many people interviewed and how many women >> i was the only woman and i was the end of a line of 70-ish
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people looking for this gig. >> how did you know about it i know you have a distinguished background in online publishing. >> i was a fan of dave from the beginning. bar stool is how guys think and how they talk. here was a guy who took a bet on himself and strived to build something and i wanted to be a part of it. >> if you want to sell something, you have to be experiential you guys, you figured out a way to sell without making us feel like we are being sold to. how did you come up with that? >> we tell you by telling you we are selling. we have been genuine with the audience, hey, if you don't support this we may disappear tomorrow
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we are pretty authentic and in your face, we are going to sell this, we need it make money. get behind and support it and we will continue being us. >> you make fun of the jags in a brilliant way. if this is a national phenomenon i think they say i like those guys, they are real. >> people love us. they hate us but you have to respect what we have built and we have done it because we are on the same level of our fans and that is why they buy, they watch, and they read and listen. >> why aren't they afraid of associating with someone who is so genuine that you can't control. >> some are afraid the ones who play with us and the ones who get involved break do and dave has been doing that with brand since the beginning. >> there is an appetite for t
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there is so much clutter that they resonate with us. >> you are raising money you have aspirations to be what with this money? >> i would like to sell the company for 250 million and retire. >> clooney sold his lousy tequila. >> look, we are a huge brand we are a big media company and we are not, because we have a loyal audience that has been with dave for 14 years and all of our guys, big cat, kfc, our whole roster we can sell shoes, we can be an alcohol brand. we can create a boxing promoter.
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it is nothing that this company can't do we have an audience and listen to them and create only for them. >> let me ask you this i spend a lot of time trying to get rich i want to get rich because i want to tell the truth telling the truth is a great gift why aren't you more afraid. >> as we grew, nobody could fire me i am going -- we had a lot of people approach me i was never interested they made it very clear they bought into the voice. so for me that was a powerful combination, a great investor, backer with pockets who believed what they were saying. and that is why we haven't changed. we stay true to who we are for . >> for a woman in a rough and
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tumble world, fearless not worried? >> the only people that matter are our audience and we stay true to them. >> one last question any chance at all that a dynasty that has been on for some time might possibly wane let's say few weeks from now. >> i brought you a gift and we brought you a t-shirt. it is my score for the final so right here, this is my gift to you coming on your show and this is what we have in two weeks. >> you are fired from my show. >> this shirt is for you. >> it can be a great revenge item on this too how many have you made >> one >> i have guys who will pay a
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million dollars. i want to congratulate you you are what i want people to be you own yourself hard work. that's dave cordin and erika narginy. and this is what you should be people work hard. you can do it. stick with cramer. mm-mm. oh. yeah. ah. agh. d-d-d... no. hmmm. uh... huh. yeah. uh... huh. in business, there are a lot of ways to say no. thank you so much. thank you. so we're doing it. yes. start saying yes to your company's best ideas. we help all types of businesses with money, tools and know-how to get business done. american express open.
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i'm the one clocking in when you're clocking out. sensing your every move and automatically adjusting to help you stay effortlessly comfortable.
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i can also help with this. does your bed do that? oh. i don't actually talk. though i'm smart enough to. i'm the new sleep number 360 smart bed. let's meet at a sleep number store. . a couple of disappointments, texas instruments a rare miss. and the stock is headed down not sure whether it is time to take the plunge because that one was a real surprise. and then united airlines, united continental. that not a total surprise. i thought a rising tide would lift all planes. it didn't happen i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will 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." ♪ first into the shark tank is doug marshall with the next generation of face painting. (chuckles) hello, sharks. my name is doug marshall, and i'm the creator and owner of the game face company. we are here seeking an investment of $450,000...

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