tv Mad Money CNBC March 2, 2018 6:00pm-7:00pm EST
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seenn a while. >> final call? >> sell boeing >> sell boeing >> put spreads boeing. >> yeah. i like iwm march put spreads >> all right a couple calls on boeing and iwm puts thanks for making it 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 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. first, got to get something off my chest got to apologize to you. i forgot to panic last night
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president's move to slap a tariff, i said it was not a reason to dump position wholesale, if anything do some buying on weakness like we saw now, given that the market was in total disarray yesterday, down almost 600 dow points and 400 points today i realize i should have tried you to get you to freak out. my bad, i didn't get the memo. obviously i am being facetious, but let's talk here, what do i say? what do i preach i tell you panic is not a strategy when so many of the bears seem determined to make you bolt from stocks at all costs. but as i have told you over and
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over again, there is always a better time even if you do want to sell than right into the teeth of the fear and the chaos that causes a brutal decline it doesn't mean we are through with this narrative that the u.s. has broken with the religious orthodox of free trade. there are way too many well intentioned economists and business people who believe protectionism is always a mistake. they don't understand that we have been on the receiving end for trade war for ages this is what has been happening with us. cri crickets on our team i think it is a big mistake to be dogmatic on policy issues china's economy is doing great going on to a free trade mode
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would hurt them nearly as much as it would hurt us. if no country especially china reacts too loudly to trump's big move, i have a feeling there would be a lot of seller's remorse from the people who dumped their stocks this week. especially stocks on domestic companies. let's mark monday as being binary if there is none, everyone else will see this pullback with retest of last month's decline frankly, as much as i care about the possibility of retaliation from our trader partners, i should put quotes around partner, i am going to be on
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resign watch as if gary cohen resign from the white house given that he likely disagrees with the president on tariff this is cramerica. and we only care about the political stuff that affects stock market if he resigns, i fearsome people will start worrying there is too much chaos in this economic team and that could happen. while i don't want people to buy, sell, buy, sell, sister, daughter, sister, daughter i recognize him leaving would make it harder for him to be a raging bull. we get results from really a ground zero enterprise, ryerson. i have listened to them for years. and management can tell us if
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there is retaliation coming. target reports and i think the new target, the more edgy, urban, digitized target is working. i see this discount chain making a comeback if we do get a trade inspired selloff on monday, i am giving you my permission to buy target. monster quarter from tjx this week and i think we will see the same thing from ross stores i think they are, but the market disagreed with me. maybe that changes, be the judgment could change when dollar tree reports on wednesday morning. let's take a moment to parse the
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story of dollar tree which is my favorite my pop loved the readers there this could come down to a free trade issue. smart people who think the chinese are the source of the excess steel and aluminum that triggered the tariffs. wait a second, i say we need to stand the thesis on its head look at what is in dollar tree go there this weekend. china fills these stores with this product do they want to start a fight with duty heavy steel mills. it is not such a crazy idea. this morning the european trade authorities threatened to -- hold it just a second. where is my scarey button.
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they threatened to put tariffs on u.s. jeans, harley-davidson motorcycles. kentucky bourbon, i mean, really if you were trying to design a tariff to be symbolic and real world impact, i think you go after jeans, harleys and bourbon. nobody plays fair on trade but nobody wants to start a real trade war either by punishing bad actors now and again, we will save jobs in this country. i don't like the tennessee honey, way too sweet for me. that is a small price to pay that you are going to have a tariff on tennessee honey.
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look the costco, filled with foreign goods. the people will petition their governments to prevent a full-blown trade war over steel. given that the terrific home depot is down 30 bucks, i say let's hope costco gets hit even harder we hear from thor industries, it is a big part of the experiential economy, however, i want to warn people that thor could be hurt by these tariffs kroger reports on thursday and this company is under assault. which by the way go there this weekend it is starting to look different. this is where whole foods is making its move with amazon. i think the stocks run too much
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since then i would ring the register this quarter. it is going to matter even more than usual the whole february sell off started when we got a huge payroll number, led to the busine bizarre collapse could it happen again? here is the bottom line. i am actually more worried about this number, being too hot, than i am about the reprisals from our trading partners, however if we get a good but not red hot number, you will wonder why the heck we sold off so hard this week and you will be thinking why didn't we do buying? let's go to lavon in florida. >> caller: dedicated fewer since
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2005. >> you are what i call cadre. >> caller: that is right and i have made mad money on your strategy here is one you mentioned four months ago that i want to apply to try tip your strategy was defined best of company pulled back 25% for no specific reason then buy after you listen to a conference call. with triton pulling back, is now the time to capture the dividend > >> this is the problem interest rates went too high the yield is not protecting these stocks anymore your caught up in a rate vortex,
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it is not the end of business. which is good. dave in ohio. >> caller: thanks for your help over the years with brown and brown. >> here is what a split does, one pencil, do we have more pencil creation? it is not a reason to own it i like the company, i think it is good. but when we think about insurance, we think of chubb phyllis in california. >> caller: hi, jim, how are you today? >> good. how are you? >> caller: i am good if president trump does put the tariff into effect that he is propo proposing and i do he will do you think it will affect my
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chinese stock. >> yoi don't think the presiden is done. let's step away from china a little bit we don't need to pressure. i think it will keep us up at night. let's go to sam in the illinois. >> caller: long time caller, long time viewer send you a super bowl booyah right too ya my stock is sangamo therapeutic. >> when you have so many high quality companies in that industry, i am not going to
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reach down the food chain and recommend sangamo. i do like amgen. always a better time to sell than into chaos. next week you will forget the reason for this sell off if we don't get retaliation. with words like trade war being thrown around, i will tell you what impact the move can really have on the market the average has been all over the place. i am opening the phone line to hear from you in tonight's sell off strategy and it is just a drill stay 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
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call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. thanks man. imagine if the things you bought every day... earned you miles to get to the places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag. two united club passes. priority boarding. and earn fifty thousand bonus miles after you spend three thousand dollars on purchases in the first three months from account opening plus, zero-dollar intro annual fee for the first year, then ninety-five dollars. learn more at theexplorercard.com
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everyone is freaking out and getting emotional about trade. i say let's take a deep breath and look at actual numbers when i started the show i had had former ceo dan marrico on all the time i have liked nu core the largest steel maker in america you see nu core produced the cheapest steel on earth. i like it now. periodically, there is a problem. sometimes there is a downturn.
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the numbers get missed and it happened there have been a couple quarters where it was. there are also many, many quarters where because the peoples had he peoples republic of china wants to create jobs they build steel mills and sells the stuff below cost plenty other american steel companies were inecertificate but not nu core. making a profit is a secondary concern to them. if it is a concern at all and that recked our ability to compete. for ages we kept our markets open our government is run by free traders. turn the other cheek, that is
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the ethos. i don't mean to single out china, south korea is no better. the status quo means we get cheaper steel and cheaper cars but american workers in these industries get gutted. and the economists don't seem to care at all. maybe they have never seen this kind of thing first hand i know what happens when the chinese decides to subsidize an industry like they did with pops put all the u.s. mills my father worked out of business dark days in the household he worked with the chinese ended. my point is simple steel mills put a lot of people to work which is real good if you are trying to avoid unrest or revolution which is what the people's republic of china is
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about. the chinese government put their people to work producing way too much steel pretty much every time nu core misses the number they explain to me because it is chinese dumping. i have studied these different quarters nine ways to sunday and when nu core misses the country, it is invariably because of the chinese. he would painstakingly walk me through how the chinese dumps aluminum below cost of production the pollution from these mills finally got the communist government to scale back a tad klaus would tell me about how
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the state run. i didn't come at this like an economists even though if you ask alexa who i am, she says i am an econ mer, who knew how could they bag our viewers and readers. they convinced me the chinese were operating the same way they did towards pop's gift wrapping industry you can't fight wars with gift wrap there is no national security issue with chinese holiday paper, but with steel, nu core ceo put it succinct li >> now way you a national
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security without having a robust and sustainable steel industry. >> i think that is farfetched at all. honestly, lots of times they work and our trading partners chain their tune if that means wiping out some of their own steel jobs to retain access, they are going to do it. i wouldn't be surprised if lots of these countries start building factories here. how about the cost to the american consumer? these tariffs translate into a little more than 100 bucks per car. it is less than some of the semiconductor content in each car like an nvidia chip. could add pennies there and
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pennies here explaining today, i heard a lot of growls from captains of industries on how much these tariffs would cost them. now they are wining that the raw cost might go up i am speechless. now granted some industries are going to be hurt more than others 2 million aluminum fasteners in a jet liner and that is going to cost boeing some money will china retaliate us by boycotting boeing, theoretically, but the splice of planes they would be cutting off their own noses to spite their faces. it is true, some markets are at stake. look, i get t i like it when proctor or kimberly or ge makes
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their numbers. i like that. especially the ladder. i knew it was a trade-off for heavens sake trade is the issue that won him the election the steel workforce has been cut in half since 1990 from 700,000 to 350,000 if this would just be about jobs maybe it would be worth it to turn the other cheek what are we going to do? by the steel and make it from one of the countries they are supposed to deter. that is crazy, frankly or as nucor john put it is, i wouldn't want my son inside of a battle made with anything but
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u.s. steel. >> that make as a lot of sense would we still make money? news flash, there is always a bull market somewhere and i promise to find it just for you. much more "mad money" ahead. opening up the phone lines to hear from you, the voices of cramerica. worried about the latest action in the market, please don't panic. i am going to give you a plan of attack going to talk to the ceo of ran gold and see how it can retain its luster stick with cramer.
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so that's the idea. what do you think? i don't like it. oh. nuh uh. yeah. ahhhhh. 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
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when i was on "squawk on the street," and sold when the dow fell 400 points, how did it feel i don't want any of you home gamers to miss out on any opportunities. so opening up the phone lines. hear your questions and listen to your concerns we are going to get through this together because we are cramamericans. let's get to work. j.r. from massachusetts. >> caller: booyah. belated congrats on beating our ever so humble patriots. >> i am going to get miked up the next time i go it a game >> caller: my question is in
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regards to walmart growing concerns over ecommerce section, do you think there is long-term play >> i have got to tell you, i spent a lot of time going over that walmart call and i didn't like it. i didn't like the decline. i think brian cornel is doing some things. i do love young investors. how old are you? >> caller: i am 24 >> why do people say the young people don't invest? i am seeing more young people invest than i have ever seen thank you for your call. rhonda in kansas. >> caller: i appreciated you weighing in on the discussion about possible tariffs on steel and aluminum, can you help the american, the average american,
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the taxpayer, can you help cramerica how it relates to them and something about balance of payments. >> the late and great aubrey mcclenon taught me about oil so he always brought in mexican pipe fast forward john ferrioa has created a factory that produces pipe and i think the balance of payment problem would be solved by doing business with nucor because they make the best and they are american. marsha, you are up. >> caller: hi, mr. cramer, thank you for taking my call
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i am a long time holder of mcdonald's, and it has been good to me. due to the sudden drop of 9%, i was wondering if i should sell some. >> no. the stock got ahead of itself, almost at 3%, i think you put it away, betting that easter brook is going to continue to deliver. i do like darden, sat down with management even lisa, my wife like easter book when we pulled up to him in the super bowl we don't trade on fear we trade on numbers. buy some now buy some after it goes over 3% f that happens rob in colorado. >> caller: hey, jim, how you doing? >> not bad
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>> caller: okay. the chronos group. first marijuana company ever to be on the nasdaq. >> let me tell you something, constellation brands, you know, in canadian american, but you know what, it is just a sight seer fun thing to do right now i don't want to advise anyone to do it. the cannabis market is going to be gigantic, but i don't want to get ahead of my skis no one made a dime panicking we are going to get through the volatility together. this morning, i was like give me a break already. much more "mad money" ahead. just a drill
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we have one to two fires a day and when you respond together and you put your lives on the line, you do have to surround yourself with experts. and for us the expert in gas and electric is pg&e. we run about 2,500/2,800 fire calls a year and on almost every one of those calls pg&e is responding to that call as well. and so when we show up to a fire and pg&e shows up with us it makes a tremendous team during a moment of crisis. i rely on them, the firefighters in this department rely on them, and so we have to practice safety everyday. utilizing pg&e's talent and expertise in that area
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trains our firefighters on the gas or electric aspect of a fire and when we have an emergency situation we are going to be much more skilled and prepared to mitigate that emergency for all concerned. the things we do every single day that puts ourselves in harm's way, and to have a partner that is so skilled at what they do is indispensable, and i couldn't ask for a better partner. okay time for sell off 101. the drill that tells you how to handle a downturn and how to profit from it even. as long as that downturn isn't caused by general systemic risk. the time of thing that could wreck the entire economy
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unlike what tollstoy said, a selloff occurs after we have had a big run with the precipitating event that we haven't thought of ahead of time. come from left field from many but not everyone i have been saying a principal risk in this market is that the investors didn't believe the president was going to slap heavy tariff and the panic kicks in not all stocks should go down. your job is to look for the stocks of companies who just reported great numbers like sales force or for splunk. when there are so many other good ones laying low by the
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story. as much as you like boeing or caterpillar, better to go with a retailer or bank or tech still get their stocks lower now this is what i have a theorem, it is called what do tariffs have to do with the price of earnings multiple of brisol myers the probable cause of the sell off because it will most likely be crummy after two. the autos are going to take a earnings hit the oils think of the great secular trends with stocks that go down and you can buy those. big data supreme, you haven't been able to get into those stocks at a discount same with defense. come on, let's not get greedy. these companies have got not one but two gifts from the
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government if you can get into adobe or sel sales for. and we got hit with a hot employment number, the market plummeted off of a blip of a move higher in interest rates. needed to sell stock to meet margin calls when you have a stupid trade with that scenario, it usually isn't one and done be aware that pull back could happen all over again when we get the next employment number on friday unless we aren't all that overbought and bonds contained in that case, the sell off is
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yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call for a free kohler nightlight toilet seat with consultation or visit kohlerwalkinbath.com for more info. sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with alice in new hampshire. >> caller: i want to buy snap chat. >> not right here. not right now. walter in florida.
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>> caller: hey, nice to hear from you. >> same. >> caller: listen, i would love you to do a whole segment on this company, but for now, give me a take on raymond james financial. >> doing incredibly well i like it. good stock let's go to tanner colorado. >> caller: hey, jim, what do you think about vale resorts. >> i don't know why the stock is a dog maybe not the best time to take a position. >> caller: jim, this is cal from sunny florida, 77 degrees. how are you tonight? >> i don't know if i can get home tonight. >> caller: snh >> what that says to me is a definitive red flag.
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too dangerous. we are going to vincent in california. >> caller: hi, cramer, how are you doing? >> good. how are you? >> caller: you can hit that house of pain button for me. how do you feel about it >> dr. frost has got to come on. it is way too ugly to opine on george in nevada. >> caller: sorry you were gone for two weeks. you were sorrowly missed. >> thank you >> caller: one particularly part of this potential tariff which i think he will drop is the agriculture business and the j vegetables and the meat and how
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much that will affect every americans back pocket. and the symbol is deere. >> i think they will do fine but this is not the level to buy it let that one come down although i did like the quarter very much. jason in massachusetts. >> caller: hey, man, i am getting shell shocked out there. what do you think of afl >> we buy chubb. it is a binary situation sandy in florida. >> caller: looking at rounding out my technology position, my ira, what do you know about stx? >> it is more of a trading vehicle. i would rather see you in intel. i like that balance sheet better it is a simple situation john in california.
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>> even though the company has got accelerating revenue group, a stock shortage i like that. how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
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could this be the moment when gold comes back into favor it is like insurance now the easiest way to get that insurance is by owning gold directly or indirectly i have been a fan of gold miners but they come with many additional risk. take rangold a company that has been able to deliver top-notch growth a number of countries in south sub hara africa. maybe that is good policy for the people of congo. i think the stock has been held back is this something randgold can
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overcome let's take a look with mark bristow. welcome back. >> hello, jim, how is it >> you got seven years in a row of record production the best cost profile i have seen you have. which says you are operating in places that are too unstable and it is going to hurt your future. >> you know, jim, we have had this conversation before, remember we had the challenges in marly but these are world class assets and they are for the people. i think the challenges and drc are part of a growing pain as
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sub-saharan africa emerges and i have confidence that we will continue to deliver and operate mains. >> how good is the drc what kind of price are we talking about to take the gold out? >> this is a 10 million ounce deposit with plenty of upside. we are going to be producing it at 700,000 ounces a year for the next five years and plus -- it is a tier one asset in anyone's definition. >> so how about the sen goig. >> it is a substitute which comes to an end in 2020. bread and butter replacement
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still hunting for the big gorilla. that is what we are looking for. >> maybe we can find that. in the meantime, i know that your company's dividend policy is extraordinary i want you to tell people how you return capital. >> we haven't issued stock for a long time it is all about value per share and we have delivered on our plans and we are able to support dividend by making profits. we paid dividend for the last $7 recommended that we pay a $two dividend you know, in every sense, we are a company that supports its profitability by rewarding its
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shareholders with dividends >> i ponder this, but is it possible that people are saying we had this conversation before, i need to flush it out cryptocurrency, it is a book entry, gold is something physical at what point do we realize that 10,000, 11,000, as a book entry. >> i agree with you. and i think that cryptocurrency is a passing show. the real, you know, only one currency which is gold and you talk about drc, there is a lot of dynamics in politics globally and you know, with the changing balance of economy power in the world and the debate about
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currency and global ability to settle debts you know, gold is a key component in that. back in the '90s, people said it was over, gold is over, but hasn't been the case it is a great business to be in. if you focus on profitability, you can make a lot of money and it is a commodity, an asset class that you should have in your portfolio. >> the one thing i have to tell you, we have global turmoil, a president who is doing things we haven't seen in a long time. i thought the gold could spike do you think i am pro gold >> i don't think so, if you go back from the turn of the century, gold has asset every asset class. and people don't realize this. but the problem is also discipline within the gold
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industry itself. people are still producing gold. and what we need are people to focus on profitability it will squeeze the supply side. and there is plenty of demand. >> i agree with you. and i want all of our viewers to own gold the best hedge in the world. thank you so much for coming on "mad money." >> thank you, jim. i am taking the steps to own a home because i want my children to know it's all so that they can have a better life. oh my gosh. this is amazing. we're so much closer to home ownership.
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voya. helping you to and through retirement. 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. tumultuous week. we talked about workday. that did a really good job what am i saying the cloud came right through this problem including a trade war. we care about the fundamentals on this show 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 monday
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