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tv   Mad Money  CNBC  June 20, 2018 6:00pm-7:01pm EDT

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america. >> if they can't rally, you sell them and then you sell them again. and st became a meme >> final trade, please >> me and me i'm just going to keep doing this. >> or i'm going to the gopher. >> halliburton whoops there my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you 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. wall street loves growth on a day where the dow drifted
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42 points lower. i can't stress this enough we want growth if there are tariffs. we want growth with no tariffs we want growth if the fed is tightening we want growth if the fed is not tightening we would by growth on a boat we will buy growth why f.a.n.g can keep roaring higher, all time high for a lot of them. why thor industries came alive today, the hammer. and why starbucks is being laid to waste it is about growth and nothing but the growth let's start with disney's cash and stock boost this very morning. for some crucial 21st century
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fox assets all cash offer from last week. disney is willing to fork over 30 bucks a share now it stands to reason that comcast can pay more suburb cash flow now believes the cable kingpin can come up with more higher bid why are disney and comcast willing to pay this money. it is about growth walmart bought flip card fora staggering $15 billion in 2025india will be the most populous nation in the world hulu, one of the few enterprises that stands a chance against netflix. if you are comcast or disney,
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you want to accelerate your growth, no-brainer to buy under valued assets. and then we thought any suitor would be blocked for anti trust reasons. after federal judge shut down the justice department block at&t from buying time warner to the victor and the losers go the spoils embark on a truly mammoth buy back disney and comcast will keep rallying until the market perceives that they are paying too much for growth. i don't think we have gotten anywhere near the levels with their bids higher. how about f.a.n.g, all about growth immune to worries related to tear tariffs and trade.
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that is all in one day no trade war can sustain any of those growth survivors amazon is all about pin action last night, the stocks should have been up and not down today. that is why amazon gave $50.30 i would have pegged it for up 25 i buy that but the more important driver of the stock strength is the international science has accelerated today. alphabet is rolling out a whole bunch of new statements of youtube. thinks she gets the most bang for her advertising buck from youtube. others feel the same
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plus, blessedly, no google in china. regina, who came up with the f.a.n.g? >> i believe it was you, jim >> it was a with a to invest pre trump as a way to hit growth in non-china. pre trump. i should have patented it. there are plenty other growth stocks flying here spotify, twitter, the alternative ad platform. square and paypal. none of these companies need china. they go higher all people are doing is looking at china, non-china, growth, buy. he seemed a little subdued because of inventory levels. marcus lemonis on tuesday night
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as well as the ceo of camping world said things that are similar. winnebago took all of that off the table. if that excess inventory has taken off, it can soar again the flip side is of course without growth, your stock is going to get punished and maybe punished beyond all recognition. oracle just reported a surprise. the story here is about on premise information technology migrating to the cloud oracle changed the way it reports. the co-ceo mark hurd on the quarter, on the conference call,
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a nothing burger he called it a nothing burger. but the analyst acted like it was a double cheese baconater from wendy's and the stock swiftly plunged 70%. if you want real ugly, just start at starbucks because they are having an in your face slow down while insisting that nothing is wrong. a nothing latte. starbuck starbucks' growth, from 8% to 0 because of two unflagged problems cannibalization. and some issues with third party delivery service sure did shock us today. meanwhile, the u.s. numbers meager which is why starbucks is
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closing locations. the coffee saturation is palpable and the bathroom policy isn't even being discussed these guys are in total low growth to no growth denial now that cofounder and owner how ward schultz has moved on. this is a chance for new ceo instead, johnson continued to overpromise and under deliver. starbucks still trades like a growth stock what is worth than a slowing growth stock, the stock of a company with no growth the fulcrum is growth. not fed.
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not interest rate. and all growth is not created equal. some companies have it and some don't. if it is gone, your stock is going to get obliterated nobody is going to pay up today for a nothing burger tomorrow. alejandro from florida. >> caller: i have been doing my research and this stock keeps going higher and higher. with the cost of satellite into space going down, is this stock a buy even at these levels >> this has taken off like a bat out of hell. let's take the case of canada goose. you cannot buy this stock today.
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this stock was up another three% today. i cannot sanction buying this stock today. i am willing to admit that i missed it. and i am not going to face how about stephano in my home stated of new jersey. >> caller: my question is about amc entertainment, they will be incorporating new subscription service where people can go -- >> look, one real smart fell low, he was the ceo and he was on this afternoon, and i thought it was an excellent company. you know, during commercials and i think amc is going to work and adam is a good guy and what more can i say. it is all about growth if you want it, you need it, you
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got to have it william sonoma kicked up a rebound. i am going to sit down with the ceo. h&r block battle with your business first and then there were none general electric, just got dropped from the index after more than a century. what is a head for the stock i will give you my take. 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 to madmoney.cnbc.com. ♪
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be the bottom. when the stock was at 25 we heard it when we got the big estimate cut in october. we heard it when the dividend was had in november. and again when the long-term care charge was taken this january. now we are supposed to believe that being kicked out of the dow jones average is somehow the bottom on the basis of what irony? shakespeare? yet i bet we will keep hearing it because almost nobody except the pressing analyst at jpmorgan has been negative on the stock can beliering themselves to bele just how bad it is without running afoul of the fcc
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or the justice department. uniquely opaque. this company had to take a $6.2 billion charge against earnings from the beginning of the year and then they had to have $15 million reserve for more capital. these charges which could not be foretold by anything public. remember, just a few months ago, just a few months before the cfo jamie miller told us, the company would take a $3 billion charge contract. it is more than twice that amount it did make the whole exercise of figuring out how aerospace and construction, and water and power and oil and transportation, feel like how they are doing pretty
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meaningless. in other words, ge is taking on water from these long-term care policies and we don't know how much hopefully it is done and maybe it is not the cost of health care keeps rising in this country. the life expectancy keeps getting higher the cost of health care is staggering because of tremendous shortage of nurses and these policies affect all of that. and that deal may require the company to take a gigantic charge given the natural gas turbine business plenty of irony going around there will never be truth in reconciliation in what happened to ge. ge changed a long time ago, we
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just didn't know it. it makes top flight health care equipment decent general electric was a bad financial company. sold off two of its financial companies. oil and gas at the top i know from experience that nbc universal was an after thought ten times the company now owned by comcast in the end what really matters are the charges itself the risk is from long-term care and some from power. as i see it, the dow jones average kicked out one sick
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health care company and put in another one. until then, irony is not a good reason to buy any stock least of all not this one david in pennsylvania. >> caller: hey, jim, what's going on with cummins. >> they had problems i keep waiting to get to the bottom of it, but i can't do it yet. san jose in california. >> caller: booyah from america's finest city, san diego >> it certainly is and go qualcomm. >> caller: calling about general dynamics >> private planes are bad and the world is turned off by anything ever since korea anything defense urge you to stick with it.
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but this group is in a -- market. >> caller: we have made a lot of money off your advice. so thank you very much my question today is first solar, a solar manufacture here in the u.s. along with in conjunction with sun power which installs and done maintenance on solar power, just bought out 8.3. which is a sales how do you feel that it is going to benefit. >> i would say that first solar is a company that has been downgraded and upgraded so many times, it is beyond the kin of this particular guy. cheap guy but way too much politics involved in that industry right now ge is a tragedy but a financial tragedy.
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i can't say we are at the bottom much more "mad money" ahead. more with ceo of william sonoma. i am telling you what to make of intuit versus h&r block and up to 50 million americans have food food allergies i am talking to one company trying to do something about it. stick with cramer. hi, i'm joan lunden with a place for mom, the nation's largest senior-living referral service.
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. if it's found in the home, chances are it is found in this house of brands. can william sonoma furnish innovation and make your portfolio feel like home sweet home. >> lately we have seen miraculous come backs including william sonoma the stock which had been trading
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sideways for more than two years broke out the levels we haven't seen can this thing keep climbing we got the opportunity to talk to ceo laura alber >> you are in a unique position. unbelievable brick and mortar assets >> i have been with the company 23 years when i worked through the door we were 43 years catalog we had the ability to ship directly to a customer and also had a house file, knew how to market one-on-one which is different than marketing in a mass way. >> you have taken marketing to the next level you understand digital very well and handling your own advertising. this transition which has been slow for some is rapid for you what is in your background to
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pull this off. >> we live so close to silicon valley, constantly talking to google and facebook and doing testing. because we have seven brands we can do something here and roll out. >> you have embraced the notion of knowing what the customer wants more than anyone and i wonder why that is because you have digitized it. it is no longer feedback from the floor which i get. it is also big data feedback. >> we see that as service. we are working towards a lot more content and our communication to you that is relevant to you. we believe that is the future. personalizing the shopping experience for everyone who comes to our stores or on to our website. >> and is that part of your push into virtual reality >> you know, it is not easy to
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put a room together. and we purchase a premium 3d imaging and augmented reality platform they have the ability to build photo images to help you decorate your home you are going to be able to drag and drop into your room our products and this is the first consumer facing 3d room plner that is out there versus having to have a designer do it for you. >> if you say have knock off or inexpensive furniture online, they would be at a distinctive disadvantage. >> furniture is something that needs to be of quality you sleep in your bed a lot of hours. you sit on a sofa and if something is too cheap, someone is getting hurt.
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we make furniture that lasts and is heirloom quality. at the same time because we control our sourcing and have in-house designers, we are able to give you great value for the money. >> talk to me about the in-house advertising. a lot of people spend a lot of money with advertising firms you have tremendous insight or you have great analysis of what sights you call them sights that are a particularly relevant for video. how do you know this >> we have been doing it for a while. we like to take what is core and learn to do it for ourselves the best we believe no one is going to care more than people. we do things where no one has the specialty. understanding how you build a brand online is important. >> this is the story line that i see, stores remain one of our key competitive advantages in the year of amazon, i thought
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brick and mortar was dead, particularly mall brick and mortomor mortar >> when you go into a store and it is wonderful. it helps you make the purchase we see our best customers cross channel. a lot of people online and focused on big stores. we are focused on both because we know that is how you shop. >> not a lot of commentary from you about millennials but i know they start purchases by going online and they also are value centric. it seems like you have given something for skpereveryone, an brought if an element of value, but quality. >> we are one of the views that have multibrand. and we are multichannel. we can go with the customer. so whether they come in through west elm and have kids, pottery
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barn kids, we have a brand we have a product line for them. and at the same time it is important even for our pottery barn customer we give them value. we launched pottery barn apartment. it is a new customer it is these initiatives that bring in new customers whether it is price point or whether it is a collaboration with another designer or we just did something i think pretty interesting which is we put pottery barn kids with west elm to develop a kids line in the past we thought about each brand individually. and now we are saying how do the brands work together to produce more innovative products. >> throughout the range, you have stuck by something, what you have been saying is look, we
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are going to offer more competitive product pricing including shipping now we all know that shipping costs have gone up how can we not have that compression growth market. >> the shipping we do white glove. we bring it into your home and don't do a door drop ma most of our furniture come into the home we reduced our shipping prices so we are competitive now. and that did last year affect operating margins. >> there are competitors that do not white glove. and i imagine your strategy reduced breakage. >> when you do things right for
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the customer, usually it turns out to work on the pnls as well. returns and replace are big. >> what the video channels that work >> youtube how to hang a drape. how to cook a turkey facebook works we are testing all sorts of things we love the bloggers and what they do and the videos they tell we put videos on our site. customers love the movement. recipes, our recipes are one of our most clicked things on our site and out all over the internet bringing the brand to life and helping the customers to our products and celebrate. >> it is going to get
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competitive, tougher comps i see west elm doing great i see the rest of your brands accelerating should the next quarter be the focus? >> we have so many initiatives that are going to be incremental and working so hard to set ourselves up for this disruptive time and we see it as an opportunity. >> thank you so much to laura alber. terrific job that you have done. president and ceo of williams sonoma thank you.
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. how the heck can
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digitization still be on the rise i keep telling about how transforming software is doing business this isn't the 1990s how is it possible that this process of digitization is ongoing here we need a concrete example that puts things in perspective rather than talking about ecommerce or enterprise. i am going to tell you about tax preparation. h&r block versus intuit. h and r block tries to make a comeback but the stock turns
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into a punching bag. the stock issued very important guidance and since then the stock has lost 20% of its value. from intuit. diversefication plays a roll too. and the company is very much tide to its 10,000 company owned brick and mortar location. intuit is more diversified there is quick books for bookkeeping and mint and really, all else equal, wouldn't you rather file your taxes online with turbo tax than
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make an appointment on r a-- h&r block. it is making a fortune by the way. if you look at the stock on my recommendation it is doing well. when i met visionary ceo brad smith, also falling in love with the product as a user. it is idiot proof. trust me intuit is well run while h and r block has major problems with the old ceo stepping down at the end of july bring in jeff jones from uber, the stock sold off hard response going into tax season this
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season the stock crept back up. when h&r block reported last week, they were fine looking good management guidance fell short of wall street's expectations. then, adding insult to injury, on thursday, the wall street reported that h and r block is closing 400 locations. quote, we aren't as relevant as we need to be in today's consumer end quote i mean points for honesty. intuit continues to run circles around just like we saw with the record stores and the bookstores. the brick and mortar stores might be in serious decline. intuit has a bunch of out of
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season businesses. making money all year-round. especially quick books by the way, fantastic for fall and medium size business when tax time does roll around, those numbers were included e the company gave you a nice top and bottom line beat. 15% revenue growth we just had ceo brad smith on the show and he told a pretty compelling story take a look. >> this was a crazy year in tax. you know, the government passed the tax legislation late the irs opened up for business late we had to get our product out there and they produced a killer product. and delivered results that were 15% revenue growth really good year for our tax
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business. >> that number was up as big as the forecast was down at h a&r block. tax preparation is a service and of course small businesses love quickbooks intuit keeps crushing h and r block because they are not competent anymore. really more of a play on the digitization of finance. bottom line, we live in a world where technology almost always triumphs, that is why intuit is crushing h&r block that is why i like intuit stock. h&r block, hard pass "mad money" back after the break.
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>> announcer: lightning round is sponsored by td ameritrade 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. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money."
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starting with eric in new jersey >> caller: booyah, jim, how are you doing? >> i'm doing well, thank you so much for asking. how about you? >> caller: great thanks my stock cognex. >> go with emerson i think you will feel better about it let's go to richard in connecticut. >> caller: i'm here. my question, tock a big position in the stock before the may earning and was a good result. i listen to all the comments from the new president and he seems to be on the ball at least straighten things out. i look for further improvement the stock has another ten,
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20 points in it longer term. should i buy some here wait for a pullback. >> this is which stock >> under armour. >> my wife lisa demanded that kevin blank come on the show it is a winner it is going to stay that way because he is. doug in minnesota. >> caller: hello, jim, my financial guru >> how are you >> caller: good. yourself i i bought novu care >> i don't know why people don't believe me it is a remarkable device. the chairman brought it to us. it is an all time high today
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that novo koocure is a good company. mannish in new york. >> caller: thank you my question for you is fireeye. >> i think proof point is better i think palo alto is better. and then i have to tell you, i like nice more, i like fort net more and then i will endorse fireeye. greg in illinois >> caller: professor cramer. >> yes >> caller: love your show. thank you very much for your help jim, i am felg veeling hungry should i be nibbling on weight
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watchers. >> the stock is up 132%. no value added we have to go to momentum. that is not me ronald in my home state of pennsylvania. >> caller: hello, jim. my wife and i are retired. mostly growth and dividend stock. a typical stock is bristol-myers. >> 3% yields decent pipeline. i am not going to tell you to get rid of it. they have got to do something. you know, i can't tell people to sell bristol-myers down here that would be shortsighted how about nate in ohio. >> caller: i am a student.
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the stock i want to ask you about is cheg. >> it is $3. the stock is at 29 zack hertz plays for the eagles. i got to tell you, i got to wait for it to go lower and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade wall street guy. a 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.
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lately some of the smaller players have seen their stock take flight. if biotech can get traction, there is a whole host of stock take aimmune the drugs which are in phase three reduce the potential for peanut allergy let's get a better sense of what this company does and where it
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is headed. welcome to "mad money. good to see you here in your most recent and terrific bank of america presentation, you said that your urgent priority is to provide kids, young adults and their families with protection, peace of mind and freedom from food allergies. >> what we are doing is taking a technique that has been around for a while and making it widely available. you give people the protein they are allergic to starting in slow quantities and over time you give them a little bit more. and we are trying to get to the level where we are going to protect them to the accidents that happen in life. if you are peanut allergic, the problem is avoiding all the things that peanut protein might be in. >> first of all, this market is
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much bigger than people realize. >> there are, if you took the food allergies it is probably 20 million people have food allergy, and 3 million of them have peanut allergy, that is massive. about half is age four to 17 it is getting more prevalent and we don't know why. there are several good ideas one of them is that we are all too clean these days the other one is use of antibiotics early in life and the idea of dietary restriction. it used to be the surgeon general is said to avoid peanuts, and that has been turned on its head we don't know. you made the point that we are trying to protect kids and young adults i have brought age appropriate
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foods here that might cause accidents. think of a kid at the birthday party and candy jar. half of those have peanut protein. this, kids and college students, molle, somethi-- mole, somethin like to cook with. even worse, if you go to your friend's house and they have made it for you, are they going to know what is in it? this is why the accidents happen we looked at all the research, when someone has a problem, how much peanut have they been exposed to some people can react to small quantities it is about protecting against all of those gamuts of exposures so bad things don't happen.
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>> you have got interesting companies that you want to collaborate. you talk about your friends at nestle health science. >> so we have got three big c b collaborations right now and one of them is with the golden peanut company and they provide us with an extremely high quality raw material which is our starting product for al one 01 and then we have a collaboration of nestle health science peanut allergy is interesting but another allergy is egg allergy. one of these two angel hair has egg in it and one isn't. so it is in all kinds of stuff like bread and pasta
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and those kids, are effectively malnourished, they are not getting a proper diet. so with nestle, we are looking at the gamut of food allergies we can treat milk and egg, the objective is to reintroduce into the diet and that is a great company to be working with. >> you have great partners, and a great mission and i think it is a bigger universe than most people realize former ceo of aimmune therapeutics thank you so much. >> thank you very much
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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." ♪ bam! good luck, rook. good luck, nick. thank you. one more. there's only one rule in "shark tank" -- don't screw it up. [ laughs ] narrator: first into the tank is an innovative way to control bad habits. man: here we go. five, four... here we go. man #2: four, three -- man: four, three, two --
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