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tv   Mad Money  CNBC  May 4, 2018 6:00pm-7:00pm EDT

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i woenlt have beuldn't have bee wasn't for you. >> may the 4th be with you disney, maybe a little hans solo action. >> our time has expired. check out options 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 cram america. other people make friends i'm trying to make you money call me 1800437 cnbc call me. fall, is it a fall series with the chinese? dow searching 332 points
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♪ halleluyah ♪ >> nasdaq crowding at 170% china wanted to put a end for a tit for tat trade war that's driven stocks so low and investors so -- joint knew venture, employment growth that showed growth. one more shake out at the opening. it's quite the impressive rally and it could continue if u.s. code goes a tad softer believe me, the approval of this venture wasnot an idle decision before the approval we really only have one big stock, that was the stock of apple
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word that warren buffet had bought another 75 million shares in the world's largest company and boy was it ever in the black. it finished up almost 4% and concocted $9 billion barrier putting distance between it and marshal, amazon. in the race to be the trillion dollars stock. after china dimmed the quad come deal tech just exploded. china killed quad come's attempt to buy the semiconductor it may be game one for this leadership time group that the bull need to much. if the chinese consider the term about the fb irk, i got to tell you, you'll never get that kind of pit action from any other group. can it continue? you foe what we have to do to find out, we have to go to the game plan.
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on monday, tyson foods supports and boy are the people divided about this there are shorts in my face telling me tyson is about to kill over. something i think crashed radically after times -- a good number yesterday and stock was up almost more than every stock of the s&p 500 millennials love protein, tyson beef and chicken company has been a tesh stock of late. so far the bears are winning what i really care about on monday, the big analyst meetings from service now the service management company is phenomenal and led by john donahue. look for again, action in the cloud. like what we saw to do with the semiconductors we could have everything from
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amazon because it's web service is up to workday, sales force, dm wear and ado bee. i expect it to tell a terrific story. next up, tuesday, after the close, disney. i think the bear's persistent thinking espn subscribers the deal here. this espn online service will produce even more hits just as investors failed to recognize that apple has a growing service revenue business until it practically hit them in the face i believe that underestimates movie review knew stream i think movies may be the final -- then kevin has more patients than tesla's elon musk. there are two other companies
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reporting tuesday and i got to tell you people truly don't know what's up. there's a lot of gamble on both sides. electronic and beverage. these growers in their categories become particular to where i expect the results to be binary they're going to be hit or misses i didn't like what i saw at all. given the excellent record of management i think it's highly unlikely they'll miss again. yesterday, the largest competitor activism blizzard delivered what looked like a disappointing number betting by the fact the results came out midday after a mistake. new game makers are moving into the stakes progressively and it will spell slow down activism. in reality the competition hurt much more than expected. the stock came back with the venue going down and finished up
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more than 4% i suspect ep will have a similar trajectory one of the reasons why the stock was up so much today. everyone's worried about a slow down in the beer category with -- will the same thing with enhiser busch report wednesday, i bet it will be better. we're worried about the price of aluminum cans than the suds inside we also heard from 21st century fox. we also want to know their feelings about comcast attempt to buy some key assets that disney wants comcast could use a rift issues the big, we're not going to take it about comcast's offer the auto industry's been down in the differents and there's one supplier that's been doing fabulous and that's magna.
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i expect an incredibly strong number that will breathe new life into the worst acting group in the entire market that's saying something. numbers one of the most controversial stocks out there, nvidia they make the best graphic testimonies used from data centers, artificial intelligence, and auto ton mouse driving. juan's the acknowledge leader and faster growing in markets. so then what's controversial simple for the last few quarters nvidia's bottom line has been boosted by crypt toe currency mine using nvidia kartcards to dito big for the currency
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even though wong told us here when we spoke with him that cryptocurrency is here to stay, they know that supply is going to stay. they're betting that the mining is going to cause upper cuts and down grades galore when nvidia reports. if it gets slugged by the cryptocurrency concerns we're something whose looking to use that weakness to do some buying. crypt toe is a side show it's not the real wong story friday, i think -- of the federal reserve. he favors two tidings but if the economy gets stronger he's up for three heights. if he says that maybe we can have another good -- providing china isn't taking back what caused the whole rally today,
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the olivia branch of a deal between a chinese company and its american counter part. today's show is something that could happen if something goes small goes right and looking at what's happening next week, it's possible this strength can continue. let's go to diane in new jersey. >> caller: hi, thank for taking my call. enjoy your show. >> thank you >> caller: my question is about cue rate retail ink, formally libertied interactives i owned it starting out as a just in. they merged with qvc back at beginning of the year, and i'm wondering -- i've heard their number three behind amazon and walmart and on my -- and i know they're also in the trade in tariffs concerns but i'm just wondering if you
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think there's a punishment faceted retailer still in the game >> i like this stock and i'm surprised to see how far down it is, diane. this is run by greg, one of the great ceos of our era. i want to buy the stock. i want to profile it i had no idea it had informed that much. let's go to jude in south carolina >>. >> caller: booyah mr. cramer >> booyah judy. >> caller: my question is about kdr with all the activity's been happening what is your take on it is it a buy? sale >> i never recommend a stock on a take over basis. boy, does this industry need to consolidate that i cannot endorse this company, i'm very sorry judy. i'd love to say good thing
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i hate the segment i don't like the stock kathy in california. you're up. go ahead it's jim. >> caller: booyah, jim. >> booyah. >> caller: my question is about the multilevel marketed company. the company's riddled with risk and controversies, it has numerous pending lawsuits and investigations yet it goes up every day year over year it missed earnings three quarters in a row, as much as 17 cents one quarter and fantly lowered four year the stock has been full. >> well, look, this is an industry that's heavily shorted. i'm going to have to do some work on this it's a tag-along stock right now. herbal life. we know from scott wagner who
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won the debate which is herbal life itself. we're going to do more work on this stock this is what it looks like when there's peace between china and america. isn't it something it just took a little bit of a quad come deal with it's just soared i hope it last "mad money" tonight, body camera company is buying its main competitor. i'm going to sit down with the ceo. when it comes to china which company has the upper crust of pizza and taco bell. and finally, 2018 on fire but the stock still declining after earnings what's the next thing to do with this stock we'll sit down with the ceo. stick with cramer.
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. now, this is exciting. a year and two months ago i told you about the rapid transformation at axson enterprise here's a company about taser now it's become capture play for law enforcement selling body cameras and necessary to make use of all the digital evidence. today we got another positive development. this morniis today axxon annound the new viddeu the stock shot up more than
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$25.73 let's take a look at this with rick smith to learn more about this deal and what it's doing for the business mr. smith welcome back to "mad money. >> it's great to be here >> you hear all this deals that get blocked by the government? is there any trust here? you know everyone like to have multiple bids on the crack >> it's not an issue, we locked at it. we're still the small competitor in the space, maybe at least 34. we're up against companies like motorola, panasonicand l 3 there's still a lot of competition but the fact is we've been winning a vast majority of the deals because our systems perform really well. >> i was just going to say, gir me the selling proposition what i was going to say, look, i never heard of these guys, the other guys are big, how do i know you guys are going to be there?
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>> a year ago here we announced the idea we were going to be free body trials >> people were spect call. >> the reason we did it was we invested a lot of time, effort and money in making the system that really works well in government you're not normally insented to do this you spend more time figuring ought hobbyist and how to get through all the bureaucracy. since we've put the it in the hands of the users we haven't seen -- once they do that, we win almost every time. >> you brought it up on our show there had been one inbound call. tell me about all the inbound calls and about the conversions. >> we don't have specification conversions because it's difficult to track all these other agencies in most cases we ended up competing for the business and then to my awareness, i have to
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check to make sure i'm 100% but i think we won every deal that went into that pipeline. >> that is incredible. do you think it's the taser device or the software system? >> it's the software system. we're running -- in seattle. we're playing with the big buys. our head of ai came from uber. we're bringing a lot of talent and that's building a great system >> these guys, rick, go over international with them? >> what's that >> international >> for sure. the largest agencies in the u.k. and now we're getting field trials going in continental europe we believe this is a phenomenon we're going to believe going global police sitti police sitting and type l up reports every day, this doesn't have to happen when you can see
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what's going on. >> any studies of the fatalities being cut back once they take taser? contradiction . >> oh absolutely you may remember cincinnati with the racist police shorters and they went 20 years without shooting when we put tasers on the street 50% cut. it's still going to happen >> and body cameras encourage or discourage bad behavior? >> much like i'm probably not going to do anything too bad in front of a million people here on camera. you put a camera on and police behave more professionally and the people they deal with also behave better. study of a cambridge found at 93% drop in police once they start wearing cameras. >> how about lawsuits against cities >> it's hard to find that since -- if complaints are down 93%. we think you're going to see not
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that dramatic but maybe a drop in litigation. >> new york city, it seems like there was bad blood in the paper between you -- does that go away >> we were competing hard for new york it's the biggest agency in america. we're delighted to have them as a customer now >> they're indifferent it's the system they're using that you bought. >> my belief is they're pretty happy because they ran a very competitive process. they ended up going with the low price bidder but going to get our technology anyway. >> last question, when we saw you, you had agreed to take a pay package based on the stock how you feel about it now? >> i'm feeling pretty good i think it was a pretty good bet. i got 9 1/2 years left to make it there i'm pretty excited >> you've beaten and done everything you told us you were going to do. that rick smith, ko founder and
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you want to understand the way this market behaves in 2018. consider the difference between one brand, the parents of kfc, taco bell and pizza hut and yum china. last summer i told you i preferred yum to yum china sure enough in the ten months since then, yum has given you a more 12% game while yum china is only up 2% going into 2018 looked like yum china will be the winner the whole upon of spinning off the chinese business in the first place -- so far this year
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yum china has been kind of a dog. investors worry that as an american company operating it's kind of got a target painted on its back, as long as our trade dispute with the chooninese condition. the original yum on the other hand, has been a much better performing they both have bounced nicely they're still below where they were before the earnings i think it's very important. a volatile market like this one often crush stocks that don't deserve to be punished look at all the come backs today. the problem is to be able to identify the deserving loser from the undeserving ones. yum versus yum china is a great example for us to teach with yum is not justified and i bet it can bounce back from the levs with a vengeance you might want to use the kind of marketwide strength we had today to unload this one if you
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haven't already sold it. the last time i highlighted these two stocks roughly ten months ago i told you yum china was very serious problems. this was supposed to be a growth vehicle. it's -- its brand seams to be kind of running out of steam with the company delivering le sales growth you end up with a situation where the old parent company, young brands had better growth with low risks. we can see the chart just i want to show you this and that's why i told you to stick with yum brands and forget about yum china tlat least for e moment this is what i was most concerned about. i thought we could get pretty smooth sailing here and i was worried about this i don't like to toot my own horn you guys know me as the mo humble person you've ever seen i was far right about this look at how yum brands has done versus yum china
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i think it's worth comparing these two companies based op their standard objectives and what they achieve. i don't want to be unfair, let's judge them by their own standards rather than something subjective the blue is better than the yellow with yum's gold at the time of the spin off they wanted to hit a long-term growth of yum china. they talked about tripling the score count over time with the goal of 5% new score count each year, yum china. and 300 and 500 base points of restaurant expansion yum chinese's owner per share didn't come close to that. if you exclude one time items they only increased by 11% new stores, they increased the store count by 5.5%. check box, success tough to call that a success but it wasn't really a failure either yum chinese's restaurant margin
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improved by just 150 basis points that's why it only grew at 11% clip wen we were hoping for 15 it didn't really live up to its full potential and that is why its been doing that. the actually expectations versus what the company was doing all right. forget yum china, put that e aside. let's talk about the pattern, yum brands i think of it, yum every where else yum says it was targeted ongoing shareholder return of roughly 15%. 13% on each growth and a 2% david end yield. last year it grew at 20% they want to refranchise most of the stores they refranchised 170 locations. yum is 90% franchised and they're probably at 90% this
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year yum wanted kf cto grow off putting 8% pizza hut, 6%. pizza hut disappointed badly around 7%, that i have got to turn that around taco bell came up 4% not like it was perfect. the big picture, things were working. the specific brands had real issues, too. i think they did better than yum china, at the end of the day the earnings are what matters. as recently as this january, yum china was the better performer the big diversions came when the market broke down earlier this year yum china reported right in the middle of that melt down and the stock has never recovered. whereas, yum brands, yum every where aeelse has rebounded nice. yum chinese's results showed weakness at pizza hut.
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imagine on chinese me year's sales, it's only gotten difficult to own yum china yum brands has been pretty quiet. it keeps on ticking. which brings me to the two earnings reports both companies reported on witnesses. yum china saw stock 13% in response yum brands lost 7%, what's going on yum brands reported a monster beef off of '16 situations i like the call. the problem at both yum's, same store sales. yum client had a big problem with pizza hut which shows 5% shrinkage. i think it's clear yum brands can blow away its earning targets even if the sales growth is sluggish.
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with yum china, it's not so clear. the set back of pizza hut start to get kind of disturbing. if pizza hut isn't actually in turn around mode, i got to tell you, it's a much weaker story, it's no worn the stock got clobbered. yum brand looks like it's in much better place. it bounced yesterday yum china bounced today at more than 3%, most i think because of the of the trade talks the chinese haven't blown up yet it's difficult to look at pizza hut when you think about dominos. every since the break up of yum brands i've been telling you to stick with the heritage yum and avoid yum china. i am standing by that judgment i think the extreme sell off in yum china was justified. and the pull back in yum brands was not. forget yum china you want yum every where else.
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let's go to terry in north carolina terry? >> caller: hey jim, thank you for taking my call on may 1st -- split into water and invent elect call. i'd appreciate your advice on both companies >> i like the water. i think electric, i got so many companies in that business, you sell that and keep the water i wanted the pure point water, when they did it i was so excited about it that's how i feel about them let's go to michael in florida michael. >> caller: jim, my question's about blooming brands. i bought the stock a couple years ago in 24, it's done nothing. in january, partners came in and bought 8 million shares. the stock went from 19 to 24
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can you tell me buy hold or are they trying to sell the company? >> it's not clear. jan is kind of all over the place. i think the restaurant business is domestic and has good inputting right now. i think you can buy this in the next three to six months i will make it very clear that dar ton is the best in show. it will always be when it comes to that level of food. i tell club members to own darton and mcdonald's is great break ups aren't always easy i want you to forget yum china much more "mad money," including fire wall street was tepid. the -- meeting this weekend. i'll tell you what to listen for and handicap the stocks. all your calls also. and tonight's edition of the lightning round.
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so far this year the cyber security stocks had been holding up much better than the rest of the market
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on wednesday we got results from fire eye which both protects its clients against cyberer threats and has best forensics in the business you call them in after you get what part. the headlines results were solid. the next quarter seemed light. it seems they didn't raise the forecast enough for some people. the stock got clobbered yesterday, losing 10% of its value. has fire eye been clobbered too much let's check in with kevin, the ceo of fire eye to find out more about the quarter. welcome back to "mad money." >> hey jim, how are you? >> i'm good kevin. i got to tell you i think your quarter was misunderstood. it was difficult for me to get -- i think the key metrics is billings and i thought you shot the life out with billings. >> i told you last time we spoke it's my job to do what we said we were going to do and that'll exactly what we did.
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we gave a forecast, we exceeded the forecast and three of the four metrics who were in range so i felt we did what we were supposed to do we forecasted in the future, right in line with expectations. this is my 15th fourth quarter at fire eye, i'm here for the long-term. i judge myself on did we do what we said we were going to do. yeah we did. >> the problem was the stock had been the best in the group and people wanted to take profits. march deals flat, customer as, 230 versus 237 shouldn't you have added more customers just in terms of you're a little bigger, you got more products, i was surprised at that. >> yeah we want to add new number customers when you look at the genesis of fire eye find a new way to do signature laced
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protection there was a firewall and we expected what firewalls missed in e-mail security there was an e-ma e-mail gateway and we detect what e-mail gateway missed what we've kind of gotten ward off from is that downmarket selling motion we want to open that up. certainly want to see that new customer account grow. >> okay good i'm glad you're saying that. there are simply too many venders with too many differentiations to be substantial. you have plenty of projects, do you save them? >> yeah i think you dochl whether you look at security, i've been saying it for about a decade now, you can't be good at just network security or end point or asset discovery you've got to be good at end point security, network security you got to bring it all
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together i keep saying we're a layer two. we're detecting millions of attacks a week when we detect them, that's a problem. we're the second goalie in the net. attacks are still real we got to bring network, e-mail and end point together >> last time we saw each other we talked about bitcoin how easy it was to hack that. there has been a dramatic decline in volume and price in bitcoin. do you think people are getting the word about what you're saying, perhaps this is not the whole great deal of currencies >> you know, i don't study currencies, that's your job, like i said last time. an anonymous currency has not been a great thing it opens up another avenue to monetize computer intrusions, theft of ip and theft of communication. we deal with albert coin from that angle and it's been a problem for us >> when you say it's a problem,
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is bitcoin different from the others or are we saying its crypto currency? >> no, it's crypto currency. if done by the folks with the intent and that's a very valuable thing if you can commit a crime from 10,000 file myles away there's not a lot of risk of repercussions to it. if you can steal somebody's e-mail and threat that person, that's a challenge for us. we're making it easy to make money off of computer intrusions >> i want to go back to how business is going. cloud subscription billing, i feel you're not getting enough credit for that. is that because it's too new, people don't understand that that's the future. won't that be a much larger portion of the company when we speak next year. >> yeah, i think so. we have to be where our customers go
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so, we present the menu. we got to secure your data wherever it is and your assets wherever it may be it will grow based on customer needs. while we're seeing, especially on end point, we have a cloud form factor for end point, over 80% of our end point transactions a year ago were all cloud. we only had the cloud end point for the quarter. i'm going to expect that to go faster and we'll see the customer has the choice. >> we had seen north korea and china be a bad ark fctor, we're trying to make korea not an isolated place any cessation of those two >> we'll keep our eye on it. sovereign nations need to hold other sovereign nations accountable for activity in cyb cyber space. i'll let you know if we see
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anything different right now in such a short time frame it's hard to tell if any activity's change. >> that's kevin mandja ceo of fire eye thank you sir. >> thank you very much this is a better company than it was two, three, four years ago. i think you're going to see a big trajectory forming "mad money's" back after the break. need a change of scenery?
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so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. it is time it is time for the "lightning round. ♪ >> and then the "lightning round" is over are you ready? time for the "lightning round. we'll start with doug? california doug >> caller: hi jim. should i be worried about the stock? >> absolutely doug i'll sit down with the boot camp
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in manhattan and ask him the same questions i trust paypal, i think this could be an opportunity but let me speak with him at the conference peter in new york. >> caller: mr. cramer, win dam incorporated should i hold or sell? >> i would not hold i'd buy. stock's don, i think it's terrific holmes when he's done he may be -- material just pointing out out. barry in north carolina. barry. >> caller: jim, a big smokey mountain booyah to you from north kore north carolina >> what's up >> caller: a couple weeks ago you talked about the stocks to a horse rate, very high market cap. that reminded me of a stock i researched four years ago and never pulled the trigger
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jim, the kentucky derby, what do you think about churchill down >> it's been a huge one for a long time. it did have a dip. let's wait before you pull the trigger. michael. >> caller: my question is engine >> they got growth, good for them, they're back devon is a buy i'm going to phil. >> caller: jim bob thank you for all you do the hardest working pan in show business >> what's up >> caller: discovery communications they had -- >> i love this combination they were flying around the low 20s, that's obnoxious. chris in minnesota >> caller: thanks for sharing your knowledge with us over the years. >> wish i had more but thanks. >> caller: it to know buy, hold or sell on sign res.
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>> sign res is cheap and that ladies and gentlemen is the collection conclusion of the "lightning round." because of your advice, show, your books and looks i've more than doubled my retirement account. >> i'll take the looks >> is it so crazy it just might -- what seems to moss conference calls and -- there's some hit songs missed with loser. >> i invite toe tony romo on the show and how see quick he gets
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through that check i can't get through there. >> i'm almost afraid to show you maybe i can't because it's a little dangerous to show all right. go ahead it's general electric. bravo. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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. it's uning warren's big weekend with the faithful flock goes to omaha to meet the best investors. there'll be food, music, furniture, and most important for us they'll be taking stocks galore you can bet he'll be asked about his positions. let's take a look at the top five to set the scene for what you might say this weekend of course wait until becky griffin and the squawk game on monday. apple, we know buffet just bought 75 million shares on top of his 170 million shares as of the last falling that is a truly monster holding. we know buffet likes apple because he thinks it produces the great products ever. one with an incredible 99 factor he normallyshies away from tec stocks to him, apple's more like a better version of proctor gamble
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and gillette better than a tech play. buffet haven't addressed apple's service yet but wrong it's going to be a big thing for him. it's one that the tech analyst continue to ride small potatoes versus hand sets i bet buffet talked about raiser, the cell phones and razzer blades. the services are where the money is here's one where buffet it's just going to ride it out. i expect to spend as little time as possible on wells because it's embarrassing. he's not allowed to buy anymore because nobody can own more than 10% of the bag buffet says the government intervention is almost over. the stock of wells fargo will
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rally and rally hard you can make a case it almost is as wells reach a settlement paying $40 million to put it behind them. craft times, almost 5% and the big best performer in s&p. this suggested that kraft times c can be more hostile. pinnacle foods may be -- he's got a major position. bank of america. picked up on the company was near death's door. it's been a spectacular win. buffet love to see ceo one on one hand and i agree one of best banks to own finally there's coca-cola. this is a tough one.
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buffet's shown an amount of patience to let the company do its thing. what's missing from here, what's missing from the top five? ouch none other than ibm which i actually think is truly a shame. i think ibm fast growing -- which will probably be over 50% this year of its on business and a 4.4% yield, i think it's buy it's too hard to say buffet called the bottom with his final sales. as far as risk reward, listen to me, ibm's one of the best stocks out there right now. remember these days, uncle warren don't mix words, he tells it like it is. he's caused the stock of apple to break out today to an all-time high. will he do the same for wells? that's the only mystery of the weekend. stick with cramer.
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the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution.
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teaching technology, now that is. but as it grew bigger and bigger,ness. it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything.
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and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet? congratulations to the people at apple with the all-time high. we have warren buffet to thank he's going to be on "squawk box" exclusive next week. i think he'll talk about the service stream which was the stream that the analyst forgot to include when they were so darn down all weekend, the week before i think apple can still go higher there's always a bull market somewhere promise to find it for you here on "mad money." i'm jim cramer and i'll see you monday
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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." ♪ are darryl and randy lenz with a product to help ease the stress of traveling with children. come on, honey. ♪ (darryl) come on. come on, honey. hi, sharks. my name is darryl.

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