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tv   Closing Bell  CNBC  December 5, 2018 3:00pm-5:00pm EST

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rs free devices and accessories for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program visit right now or call during business hours. the dow is now fallen 7% from the highs, s&p 500 down 8% and the nasdaq down 12% and a big fear factor for the market, the fed. it released the beige book minutes moments ago. let's get to bob who is standing by to break all this down. >> the important thing is for once it's not necessarily about the fed. this is really about fear of growth here and lack of growth tim seymour is absolutely right.
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look here, number one, you've got the curve here's the two-year yield and the five-year yield. that's not supposed to happen. when that happened yesterday people said, no. that signaled some kind of slowing growth in the future we don't know. this is a little bit technical in nature. s&p 500. 1205 yesterday and 2750, the two-day average. the market just fell apart why is something so magical about the 200-day? nothing really, but a lot of traders use it as a shorthand indicating that the market is notably weak or growth is notably weak two factors indicating some kind of weakness this happened october 11th. we hit the 200-day moving day average and the same thing happened obviously there are some traders pegging that 100-day as a potential let's lighten up on
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the trade -- on the trade. here's the s&p 200-day moving average, flatter yield curve both of these say slow down. let take some money off of the table to some of the trading community here also remember. we've got crowded trades going on, and that was really act farer of what happened yesterday. we had faang unwinding and long u.s. dollar. that's still working dollar is it still really strong here wait a minute. short treasuries a lot of people betting yields would move up, prices would move down, particularly on the long end that has not happened, and i think we saw a major problem yesterday with some short covering in that particular situation short covering, ubs, likely contributed significantly to tuesday's yield decline. overall what matters to the markets? remember the three things that are moving the market, the fed, rate hike fears. would i say those concerns with lower now post-powell speech trade warnings still uncertain, but right now the global growth is the manish u, and that's
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what's been moving the markets the last couple of days. melissa, back to you. >> there was a note out yesterday saying cts were using 2763 as their sell signal so there's pay lot of overlap in terms what have we saw in the market action yesterday, how much do you think had to do with the fact that we're closed today and squaring up positions? yesterday we were noting throughout the day the volume wasn't there there seemed to be a buyers' strike and volatility wasn't as high as you thought it might be which was sort of the setup going into, you know, a non-trading day that usually happens on a weekend, in this case during the middle of the week when we weren't trading >> it was a little unusual with the vix at 19. would you have thought the vix would have gone to 23, 24 or 25. remember though, this month is traditionally a low period of volatility for the vix because of the trading days that are off overall. i can't really speak to why we didn't move up a little bit more on the vix i think the fact that we were closed may have been a small factor, but don't kid yourself when you get that inversion of
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the yield curve even short term and drop below the 200-day moving average whether we were open today or not. bob, thank you bob pisani, nice to see you in our territory. when we saw the futures bouncing earlier this morning of they closed, how should we expect the market to open what will you be looking for tomorrow morning on your screen as an indicator? >> 100% s&p futures at this point. we can talk about yield curve and bond yields. s&p futures, obviously how china trades, and quite frankly if there's any -- if there's any bounce at all in the european banks, that's what i'll be watching. >> europe had retail numbers out, pmis. italian bond yields are something that markets should be concerned about. i'm actually a lot more concerned about europe than i think other people may be, but i think have you to watch the bond market i think the bond market is driving the equity market right now, and part of this is allocations from one to the other, but i think the treasury market is the tell if we see yields start to break down to 2.85 in the ten-year, that's a big concern. >> are there signal stocks on
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your screen that you'll be looking at >> as lotulelei. the nasdaq leads this to the downside, were you talking about maga but if you go back to faang, look at amount of dollars being lost on a daily basis when the selling hits the pressure, mel. that's it for me do we see a turn with nasdaq names, and if we can get that sort of a term and jim talking about tech and tech is what we're talking about when we're talking about some of these names, so if we see any kind of a boost to that at all -- by the way, the vix being up 26%. that was a pretty big jump. >> yeah. >> the fact that it was 16 to 20, still too cheap. given the moves we're getting on a daily basis, a 16 vix gives you 1% 32 vix gives you 2%. we're getting moves much larger than that right now. >> this goes back to talking about, you know, fear and low volatility and the end of the year, and we were talking about how the s&p is still up 1% on the year i was talking to a friend of mine who averages over $1 billion yesterday at 3:00 when the market was make low, and i
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said what's going on is your phone ringing off the hook, and we're sitting there talking about the nfl season he didn't have a single call you know, he said on average, some of his accounts are up a couple percent, down a couple percent on the year so we're not actually in the panic mode still. >> complacency. >> because we're off from the highs but they are still doing okay on the years after five years of compounding years and that's really important. that may change in january if the growth outlook looks very different. people may say it looks like a great six or seven years >> let's get to a cramer alert. >> no. >> boo-yah. >> it's been a crazy week on wall street as the dow closed lower by 800 points yesterday. jim cramer joins us from the "mad money" studio with what to expect from the markets tomorrow jim, there's a lot of nervous people out there. >> it's right to be nervous. the market kept going down lots hand lots, little volume, lots of volume. it was kind of a cascade i think of everyone is fixated on what will happen on friday on
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non-farm payroll i think there's a sense that it better be a big number because there's a rate hike coming up late they are month and if it's not a big number they will say wait a second, they really are pressing this inverted yield curve back which would be terrible i think the machines were set to sell they are selling they don't get to sell every single day you don't sell every single day you have an inverted yield curve because it might be with us for a while, but the people who are saying this economy is really strong, they better give us a strong number on friday, or you're going to see just a continual pressure on this market i think the market could be up at the end of the day because people will be short covering ahead what have they think will be a perfect number. it better be perfect, melissa. better justify an incredible attitude that just got tempered last week. >> j.c., guy here. huge fan as you know my question to you is this i know you want the fed to slow down and i get it. we can disagree on that.
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>> one and wait. >> let me ask you this if it's because the economy is slowing down to your point, was the fed put still in place for the broader market, or does a slowing economy dictate everything >> a slowing economy dictates everything, worldwide and here i think that we see some strength in europe, not that much remember, we do sea weakness in china. that's absolutely true we've had one area of the country that's been keeping a lot of our growth afloat which is the permeant and oil has been almost cut in half both coasts have been hurt by the state and local elimination, and i think that the base, so to speak, is just doing okay. china better put in a lot of orders for boeing planes between now and friday. >> thanks so much. >> thanks for having me. >> great to see you. "mad money" is unfortunately dark tonight. >> what? >> but back tomorrow with a very big show, including an interview with yum ceo greg creed and a real good read on the u.s. economy in terms of the
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perspective from those ceos so tune in tomorrow at 6:00 p.m. eastern time do you agree here, that there's a slowdown, the growth slowdown dictates everything. >> i think it does we need to inject a little bit of positivity in here. a lot of companies with generating significant cash flow and have a significant buyback tailwind to their earnings profile. i look at best buy who is going to crush it in this holiday period and they traded 10.5, 11 times. there are good companies that are benefitting from a health consumer. >> if the rumors or reports that the iphone needs to be discounted in order to reduce sales, you're not worried about best buy at all because in the past that has been sort of a driving force, but behind the best buy frayed. >> look, we've opinion speculating for now for weeks on apple and what's going on with iphone shipments maybe it's at a slower rate, and there could be choppiness in the best buy numbers but not because that have this quarter. >> i've got to tell you, first half of 2019 could be a disaster
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for the u.s. consumer when you think about the tax cuts, okay, annualizing and think about what tariffs are doing and think about a slowing economy, especially year over year. i don't think you want to be anywhere near consumer whatsoever you know, jim just said something really interesting we hadn't talked about boeing yet. did you see the boeing about the 737 max? so you think china is going to be buying a lot of them. i know he's saying that rhetorically that's kind of a big issue, another idiosyncratic issue there. >> when you talk about the consumer, are you talking about which end of the consumer? are we talking about everything or just the high end we've gone -- i'm just curious i'm not giving you flack. >> no, give me flack two-thirds of the u.s. gdp is consumer oriented. seeing a slowdown in autos and retail sales and in $1,000 iphones so they are moving on down it's just pretty clear. >> where does it stop? does it stop with target still does fine. >> we'll have a recession at the end of 2019. you tell me where it stops. >> you're asking that question
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with something in mind. >> because i'm just curious. i don't know that the consumer is dead, in other words. >> right. >> i think they are much stronger than people think now, are they weaker than they were, probably >> consumer is not even close to dead what are we talking about? consumer confidence is at record highs and job gains for the first time who says the consumer is dead. >> if you're look downstream. >> that's absurd, really is. >> in every recession, tim, doesn't it start at the high-end stuff, the homes and autos and they start pushing them out. >> you might have a little bit of relief on the interest rate side home sales have been terrible and that's a structural issue in the housing sector to be clear hand in the auto sector we can deal with that facebook. >> there could be a difference to dan's defense, and i never thought i would say that to anybody's defense on this desk because nobody needs defending. >> what did i say? i said -- >> can i just finish my statement. >> i'm trying to defend you. i'm trying to defend what you're
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saying to them who is disagreeing with them. >> let her go. >> let her vamp. >> you can believe that the consumer is still spending out there, but you can believe it a retailers have already price that had in, that the run we saw on the retailers and what we've seen come off is an expression of the forward view of the u.s. consumer right now what, did we hear from the target ceo, consumers is in the best place he's ever seen. all the data points. >> you're a big consumer >> maybe right now do you buy the retail stocks today for tomorrow >> first of all, retail stocks have had a major pullback. not buying the consumer stocks at the peak of where they were in june. consumer stocks rallied from black friday to the peak in june, was built off half of it, three-quarters that have was most of those companies are not going out of business because of amazon it was the existential threat to their business that they weren't online enough that to me was a big run. the consumer now, look, we may be at peak jobs. it will be tough to not be much further than this on the job market, but if you look at wage
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gains and structural things that have been put into frankly lower wage earners making $15 an hour and they won't be in a position to cut wages on these people, i think they are holding in. >> all right still ahead, ceo general motors mary barra meeting on the hill what does this mean for the stock? we'll explain and as the s&p 500 sits more than 8% off its highs had, where should investors go to hide how the in the trade verse four safety plays for you and later the "new york times" is out with a new bombshell report about oustled cbs ceo les moonves. we'll talk with the man behind the story. much more "fast money" still ahead. [woman 1] this...
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welcome back to "fast money. general motors ceo mary barra is heading to capitol hill meeting with lawmakers to discuss the company's planned job cuts and plant closing in 2019. ylan mui is live outside with
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more ylan. >> reporter: mary barra will be facing a tough audience here on capitol hill meeting with ohio congressman tim ryan the lawrencetown plant scheduled to close is in his district. he's also meeting with senator portment and sherrod brown we're expecting her to arrive at any moment now portman said that the company should not only keep its plant in lords town open but if it should bring other production back to the ohio valley, that would be a good thing. now sherrod brown is a potential presidential candidate, and he had already been threatening action against gm over its layoffs. sherrod brown said that if companies reduce their workforce, if autoworkers reduce their workforce, he feels that the corporate tax rate should be raised on their foreign earnings on the flip side, he said that he would give consumers a $3,500
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rebate if they buy american cars now, this bill isn't going to be going anywhere, but it does give you a sense of the political pressure that barra is goes to be facing as she tries to work the charm offensive here on capitol hill brown was out with his own statement ahead of this meeting saying ohio has stood by gm. now gm needs to stand by ohio. barra is also going to be meeting with the maryland delegation later on this afternoon. there's a plant in baltimore that's also facing reduced workforce as well, and then tomorrow she's going to do it all again. she will be meeting with michigan's delegation tomorrow representative debby dingle is one of the strongest allies of gm who has turned into a critic. show has called gm the most disliked company in d.c. right now. she is threatening to oppose the new u.s. mca and also support ending electric vehicle tax credits if gm doesn't make any changes. now, we're told that mary barra will be making comments to
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reporters after these meetings melissa, if she makes any news, we'll be bringing it to you. >> is it your sense that this is sort of a state-by-state offensive on gm, the states that are the most impacted by these close, or is there a broad support for larger action against gm >> reporter: absolutely. she wants to make sure that sort of gm's hometown delegations are melt with, that she hears their concerns about the layoffs within their districts i think that is critically important. that's where you want to start to make your case on the hill, and you can sort of work out after that, but it would be an incredible slight if she didn't make sure to meet with each of these delegations, and, of course, lawmakers want to make shower that they have their own time in the spotlight so they want to do it all separately. >> of course they do yewy in washington, d.c. for us. you know, yesterday the german auto executives went to washington as well, amend there's one interesting headline that sort of dove tails with this gm story and that is that vw indicated it would form some
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sort of alliance with ford to use some of their excess capacity so you get a sense that maybe some of these automakers are a little bit more politically aware of the optics of plant closings, even if the plant closings are because they aren't reaching that capacity number that they need which is around 80%. >> so i'm curious how you feel about this, dan, because this is the administration that's doing this. >> i have two feelings about this first things first remember tes larks they were making model threes in fremont, california they gave good tax incentives to buy the cars that would be a really politically savvy move to find out how to take capacity off the gm and the plants and one other point. sherrod brown who is a democrat, said, well, if they are going to leave our state then maybe they shunned have the tax cut that they do on foreign income. that's something that the trump administration could have attached to the tax cuts late last year and they gave it all up to me it's really kind of interesting because, you know, they don't have hey lost leverage anymore. >> gm mid a business decision. >> right. >> yes. >> they are not selling those types of cars, and they finally
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are bight the bullet after probably five years too late and decided to shut the plants unfortunately, for the folks who work there i get it i'm not insensitive to that at all, but they made a business decision in their mind for the better of gm and their employees and their shareholders why are -- is that not allowed now? take that forward? now are companies not allowed to fire people? >> but you're not, guy. >> no, no. >> i a parentally you're not allowed to build autos in mexico anymore. have you to bring uncompetitive air conditioner plants in indiana and brick them back to life i mean, this is crazy, okay. i totally agree with you bottom line this is exactly why -- and, dan, you may want to point out peak auto. this is why gm's eps has the ability to grow because they have been supporting a sedan business that doesn't make any sense. they will resegment their business and a lot of levers to a turnaround, and this is an exciting time for gm. >> the administration putting handcuffs on gm to grow. this is what you get.
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>> are the penalties going to make it so difficult because i say this as a gm owner last time we talked about this i think you thought i was negative on gm but i'm not. they are making the right business decisions but are they handcuffed that they can't get the growth that you and i are expecting and hoping to see them make >> the tariffs and the impact over this year. >> $1 billion in commodity costs. >> yeah. >> true. >> you like gm >> i like it more since they did that, but night -- the night that this news came out. >> right. >> i said to you there will be tweet bombs from president trump. i didn't think it would be the next day. >> you like it because they are going do this, but now you see the administration and lawmakers' response do you feel the same way that's the question. >> i think there's tremendous headline risk despite fact that they are doing the right thing i think the stock can go lower from here, though i think they are doing everything exactly right. >> switching gears crude settling lower as investors await the big opec meeting and jackie deangelis is
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back at headquarters with more. >> reporter: good afternoon, melissa. crude oil did get more of a bounce earlier on in the session today. there was electronic trading for crude. it did settle low, under $53 a barrel it was 52.89 so very interesting that a week before the opec meeting you can see such a difference in price. remember we were in free fall there for a while. now the expectation, of course, from vienna is that going to be opec will cut about a million barrels give or take could be a little more than that, also that russia will be on board in some ways as well, and that's why that $50 mark is now turning into a support level, at least short term, and it all comes at this crucial time, a time when prices have seen about a $25 a barrel decline. the producers are well aware that there are concerns out there of excess product building up, and in anticipation of this meeting we're looking at prices up about 5 been the 5% over the course of the last week. not sure exactly what's going to happen on thursday and trading friday after that, melissa remember, the base here has been inflated so when opec cuts off
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of that, the excitement could wear off a little bit. >> jackie, thank you jackie deangelis at the commodities desk our next guest says we're setting up for a commodity breakdown. todd gordon joins us now. >> before we get into the two stocks let's take a look at crude oil. we're looking at $50 to $52 support and i would draw your attention to $45 if you want to do a trend line, okay, on the top of a bunch of touch points but you just can't seem to draw one on the bottom to find support, borrow from the top side, slide it down, and that's how you form your parallel channel right about the $45 mark, the trend must hold. plus, you've got a 200-week moving average so i would shave 42 to 5 a must hold and if it holds and the overall market stabilizes, would i add that the dollar is starting to turn lower hand the bond move lends itself
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to stronger crude. these stocks could go. 2014 to '18 it's been very, very quiet for many of the major oil names. exxon i think with a stabilizing market and oil can break this massive consolidation. that is weekly chart and let's drill down to the dale, and if you do your little lines and you find the breakout, the point at which the shorts will run for cover. that's going to be just at about the $85 mark and xom i'm going add some to my portfolio upon the breakout and i'll add the other half in anticipation of that breakout. the other one that looks good here is chevron, cvx kind of a similar story as i showed you on crude oil. a nice parallel channel here they tried to come it through the lows, couldn't break coming back bomb you know, we might have another retest of this hold high in cvx. this is the weekly i'll zoom in right here on the daily and give you kind that have trigger out of that consolidation so here we go. just draw the lines and find the point at which the ceiling will
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come in. people will be leaving against that and shorts start to cover and breakouts happen had i think that happens at about 125. again. i'll buy a piece ahead of it, add on the break and that's two names that can kind of break that four-year consolidation we've seen in the energy names. >> if oil goes lower, can you invest in the names? do the charts look just as good? >> great question. i'll take a loss on the 2%, the half position and will toad my portfolio. if the overall market does not stabilize, i will get out of these because they have been underperformers the last couple of years if the overall market continues low, you want to get out of the underperformers so, yeah. >> todd, real quickly on the chevron chart. i see three lower highs and three lower lows, and if i draw your channel couldn't you say it's just as good a short attempt at the top end of the channel. >> weekly or dale? >> the daily chart. >> okay. can we do that daily i would love to look at that one. for me i see -- i see that the sellers can only go down to about the 1.07, 1.08 area.
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where these guys right here, okay, we're getting more and more consolidated. there's a lot of built-up energy here usually what happens is the trend of prior -- that was in place prior will resume, so, yeah, you can definitely say we can go higher or lower and from a technical point of view there's a lot of algos that will let price show you hand lead you into the tray. yeah, we could go lower hand if we do go higher we're prepared and can add on that move. >> todd gordon, tradinganalysis.com. what's the game that we play with the duck and the target and everyone gets confused >> shoot the duck. >> we've gone yield hunting with some of these names before, and i think you have shot chevron meaning you wanted to buy it >> shooting, if shooting is good i love shooting the chevron bird this gets to the case of fresh cash flow. i would like to seat companies become more efficient and they
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have learned the lessons from the past they have curves that dwarf some of the highest in their career so i hike chevron here >> i own chevron and exxon mobil. i think it's interesting that oil did hold the $50 level if it breaks, i do think it's pain for some of these names, and they will break with it, but they have also been in this consolidation like todd was pointing out this week they didn't refact had a monstrous way. xom really lagged and eventually started to catch up but the break in oil has pulled it back doubt. i think they are too cheap and i love the free cash flow of both. >> i don't know how you play the duck game. >> you mean like had a theoretical exercise. >> i'll play my game which is buy it or deny it. >> okay, fine. >> pete likes that. >> whatever. >> stockholder for v ha lero, vlo, went up over to the smart boards and power pitched and dan
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bet against me the real support was 75. turned out he was correct. >> per usual. >> and you look at valero and say in the three different regions they operate in, spreads are down 25% to 40%, disastrous, but then ask is it already in the stock in the move we've seen from 1.20 to current levels? i think the sanes yes. the stabilization in crude oil is interesting and the risk/reward in valero means buy, it don't sell it. >> so you're shooting the dug. >> one of the reasons i asked todd that question about that trend. >> yeah. >> because he's a technician he doesn't listen to what opec is going do or think about global growth. he looks at charts a lot of traders and investors look at charts and use them to reinforce the view they already have to me this speaks more about what's going on with global growth were you talking about demand or supply, and i don't know anything about crack spreads or about this stuff, but i'm just telling you the way the bottom
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fell out of crude over the last two months speaks a lot to supply. >> it speaks to a lot of ls of what we're seeing. >> u.s. output us at a record right now? >> u.s. is the largest producer in the world. >> texas produces more. >> okay. that was the case two months ago when it was trading at 80 bucks. >> the best bet, mlps with production growth of 7%, 8%, mlps looking >> do we have to go to break >> we don't. this is a long, special afternoon edition of "fast money" here. >> we've got 30 minutes, bro. >> it has been an hour and we have another half hour to go. >> tim gave me a little ralph macchio. >> or sweet valet. >> i thought he was going paint the fence at that point. >> my question to you is in. >> wax on, wax off. >> whatever. >> am i allowed to do that >> okay. go ahead. >> ralph macchio movie, what ya
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ma face? "karate kid. >> "outsiders" a book that i've read i'd go "outsiders. >> it's iconic. >> who would pete be >> am i the sweeper of the lens. >> we're on "outsiders now." >> you jumped to a different movie. >> coming up, been a wild ride for the market and if you're nervous where you stand at year end, the traders will tell you how to seek safety got a question about the selloff? send us a treat to "fast money." guy here will answer the tweets later in the show. if he can't, we'll find somebody else i'm melissa lee. you're watching "fast money" on cnbc, first in business worldwide. much more "fast money" still ahead. [leaf blower]
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welcome back to "fast money. the market having another wild week of selling after what was a rough october and november, but as investors run for cover, the defensive sectors are benefiting utilities, real estate and consumer state many, the only three sectors that are positive so far this quarter. while once red hot sectors have taken a hit with the tech wreck still continuing with what is sure to be a wild ride to year end, where can you hide out pete >> i hate this game the most of
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all the games we play. >> oh, wow. >> it's only because -- you know what i don't believe in the idea of hiding outing. >> okay. fair. >> i'll play the game. >> play the game. >> you're being a little aggressive >> just had a pitch last week u.s. bank. u.s. centric it doesn't have a lot of different headaches of other places guy brought up something that i forgot to mention during my pitch but something hi in my head warren buffett has been in this name for a very long period of time i think he's been right and continues to add to this name on top of that. i think when you look at the management team as well as some of the growth, this is a great name, and it's been hanging in there, even as the rest financials have been getting punished it's still hanging in there very well. >> this is a fast pitch of yours. most recent fast power. >> power pitch known over there. >> "power lunch." >> dan, where do you go to hide how the? >> where are you hiding how the? >> i think disney has traded really interestingly not defensively, and i know you don't like that term. >> is that a technical term, interestingly?
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>> can he do his thing >> this is my time to shine. lots of parts of their businesses are coming together at a time when 2019 and '20 is set to be bob eiger's year as they set out to move into the ott services they are buying fox and we know what that means for their content. you put in all together. this becomes list discretionary. the parks are pretty discretionary and the service that it's going to provide in '19 and '20 is going to be interesting and investors will start positioning for that. >> i own it, too, but can i ask you something. the crown jewel ses pen. what's your take on that right now because that has been something that's pushed this stock around significantly. >> listen -- >> i'm with you. i do like it >> you're seeing the deceleration in the churn. this has been a multi-year thing, and i think that's part of the circle. >> guy adammy in. >> deceleration is actually a good thing in that circumstance. we have an amazing -- i'm not going to give it away because i don't do that. i won't even say if it was a he
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or a she >> you know what, man. >> this person this person is here and an unbelievable guest. >> hide out trade, please. >> hideout trade the cree in ec said we need a high crowd trade and i said i like big cap pharma and they said you've got to pick a specific name. eli lilly, merck, my wife is a scientist there and that stock is extraordinary and you might have power pitched that. sucker traded at 80. >> fast pitch right. >> hand now i've got to do one name so i'll give you the name, amend i'm pretty steadfast and that pfizer drug has been extraordinary since the spring since president trump tweeted at pfizer drug. that stock has had the biggest single move in a six-month period over the last ten years maybe valuation is getting stretched and the way pfizer has traded, it makes it extraordinarily interesting. >> tim, where are you hiding >> home depot. surprising to the upside
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the housing thing doesn't hurt them in fact, if anything is standing in their homes and they are home improving, these guys are the best of the breed. you're buying the depot in the u.s. comps staycation. >> what did you say? >> staycation. >> that sounds like no staycation to me. >> guy's wife got the brains and the looks. what did you get, bud? >> the bills >> let's hope linda is not listening. still ahead, cnbc's big deal or no deal premiere is just hours away, and host howie mdel llanwi join us when "fast money" returns. >> what? there's a lot to love about medicare. there's also a lot to know. part a that's your hospital coverage, part b is all the doctor stuff... the most important thing to know? medicare doesn't pay for everything.
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most popular and beloved game shows is back. the all new "deal or no deal" kicks off at 8:00 p.m. right leer on cnbc and this nearly a decade after the show's iconic run on nbc ended who better to give us a preview of what's to come than howie mandel himself, the host and executive producer. >> welcome back to "fast money"! [ applause ] >> that's not necessary. >> great to have you back on the show. >> great to be back. i can't tell you how thrilled and they are vows and scared i am for tonight this is the preview. only one word describes what you're about to say at 8:00 right here on cnbc, and that is wow. >> wow. >> because it is wow because we were just talking before we got on the air that it's hard to kind of judge what -- how people make decisions and how people -- it should be an educated decision, but sometimes there are emotions, and i think the shame thing happens in the market. >> it happens in the market. >> happens to pete all the time. >> greed. >> greed or no greed. >> we have a special on monday
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on another network and it was a guy turned down $330,000 it was not a good choice and went home with $5. tonight you watch because we have a new -- and i talked about it there's a new little twist in "deal or no deal" and that gives the contestant, one chance, one chance to counteroffer, to negotiate so you can kind of get -- you can kind of get the process, and it's got to make sense. i don't know that people really understand that. the offer is $100,000, the banker will our, and some people will think if you give me a million i'll leave now but if doesn't work like that because she, the banker is working with numbers and odds, and it's got to make sense. so you've got to figure out -- like the guy on monday who had $330,000 or, he didn't use the counter. >> you've got to wonder how lucky in their real life are they to say at this point in time i'm going to go all in, i feel real lucky. >> i'll tell you what it is.
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i'll tell you what it is, because i try to understand what these people are thinking and they think, okay, it's a 50/50 shot at three-quarters of a million. >> to lose. >> you're thinking, but you're not in the midst of all of these people screaming they have never been on television before. >> adrenaline. >> when am i going to have this opportunity again and kind of like vegas even though i say the offer is $333,000 to them, and i keep saying that's real i think they think it's the house's money, you know, and i think that's the thought behind vegas when they give you chips because it's not real money, but it is. when i say the offer is $333,000 slam dunk 100% it is yours your life is definitely changed. i don't think that sinks in to people. >> that's howie mandel. >> you may ask howie mandel. >> do you real highs >> i do realize. >> twice in a week it's our honor. >> this year like deja vu. >> the banker has like a
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silhouette she's in silhouette, and you sort of see. is she an actual actuary what's going on there? >> she does know business and i am talking to her. the weirdest thing about cher when we aren't taping the show, if you even see her in the restaurant, she is a silhouette. >> i'm telling you, wherever she goes she's backly. i can't see her but that's her thing. selfries haul backlit. it's amazing that's exactly how she look, so it is not a silhouette that's her >> you believe him >> do you know all the names of the people with your cases or are they in your ear >> i can't wear an ear piece i have enough voices there's 26 people standing there. i shoot show after show. >> you know 26 names. >> my daughter is a teacher. it's like they are sitting -- i think -- and if i don't remember their names. >> make it up, the number is right there. >> 7. >> but i've also said to them
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that if i do give the wrong name, don't say i gave the wrong name, don't make me look like an idiot. isn't that right, debby? >> thanks, joe good luck tonight on your premiere of let's make a -- thank you, howie deal. >> "deal or no deal" tonight on cnbc, 8:00 p.m. eastern time this is the premiere, and you will not want to miss it thank you again, hoy great to see you. >> yeah. still ahead, the "new york times" out with the a bombshell report about how cbs handled the controversy about former ceo les moon investments the man behind the report, jim stewart, will be here more "fast money" after this
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welcome back to "fast money. a new report in the "new york times" says les moonves misled investigators and destroyed evidence let's hear from cbs reporter jim stewart. the allegations are just baffling some of them are just jaw-dropping. >> they are really unbelievable and i've been doing this a long time and i've seen a lot and every time something new comes out i'm frankly astonished. >> in your column which goes along with this investigative piece, there's a notion that the board knew about this, that there is some liability on the part of the board when it comes to all of this over the years? >> i don't think it's just a notion this report by the lawyers is pretty clear that board members knew
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one in particular arnold copalson was privy to the lureied details of the worst incident and when the woman told him about it, he said, well, that's trivial, and by the way, we all did that, like, you know, big deal he's the one who later when some of this surfaced from the board, he didn't care if 30 more women came forward, les moonves still had his total support. he died recently so he isn't here to defend himself and the evidence is pretty compelling and then there's the directors who met with moonves and said we're hearing all these rumors and we're hiring a law firm to look into it and by the way, we don't need to know any details by the way, saying it's better not to know and not to ask than be confronted with reality and in other words, just sweep this under the rug and that's at the top and the board and it filters down through high-ranking executives, many of them named in this report, down to assistants who were working for
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him who apparently knew that there was a woman on the cbs payroll whose job, i don't know how to put this in a nice way. >> was to be available to -- to do sexual favors for les moonves. >> well said, mel. >> like, did he have a buzzer on his desk >> like a dinner bell almost it's almost mind-boggling. >> truly mind-boggling and yet nobody said anything or did anything to stop it and this was going on for year after year after year. >> from a shareholder perspective, there's liability on the part of company how do you deal with that? >> we'll see a lot of lawsuits, from lawyers representing some of the women who are victims, lawyers on behalf of the shareholders of all the me, too, incidents, this is the one that has had a major impact on a major company, a major brand where reputation is at stake and how they handle it now will be very critical to how the shareholders ultimately fare. >> and i would imagine this would color the way you see cbs' future
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i mean, if there's a great liability hanging over the company, you've got to give pause to anybody who is charting out the future for cbs. >> absolutely. one of the big issues is how do you reteran and attract talent when you've got an environment like this? no, cbs says it's all changed. moonves is gone. a lot of these people are gone we've turned over a new leaf they will have to prove that and demonstrate, that and i think part of that is they will have to come to terms with what happened they have to be honest and transparent about it, and they will have to come forward and explain what steps they are taking, and among other things to make employees feel safe to come forward if something like this happens i mean, sub-pointed out to me, you know, the controlling shareholder has been sumner redstone now, he's not exactly a pillar of sexual proprietary, is that a nice way of putting it, and he's the controlling shareholder and moonves as the chief executive why would an employee feel safe about calling some hotline with that environment they have got to show that that
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has changed. >> a long road ahead of them thanks some for coming by. jim stewarathet t "new york times. um next, final trades. ♪ ♪♪ ♪♪ ♪ about medicare and 65, ysupplemental insurance. medicare is great, but it doesn't cover everything - only about 80% of your part b medicare costs,
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which means you may have to pay for the rest. that's where medicare supplement insurance comes in: to help pay for some of what medicare doesn't. learn how an aarp medicare supplement insurance plan, insured by united healthcare insurance company might be the right choice for you. a free decision guide is a great place to start. call today to request yours. so what makes an aarp medicare supplement plan unique? well, these are the only medicare supplement plans endorsed by aarp and that's because they meet aarp's high standards of quality and service. you're also getting the great features that any medicare supplement plan provides. for example, with any medicare supplement plan you may choose any doctor or hospital that accepts medicare patients. you can even visit a specialist. with this type of plan, there are no networks or referrals needed. also, a medicare supplement plan
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goes with you when you travel anywhere in the u.s. a free decision guide will provide a breakdown of aarp medicare supplement plans, and help you determine the plan that works best for your needs and budget. call today to request yours. let's recap. there are 3 key things you should keep in mind. one: if you're turning 65, you may be eligible for medicare - but it only covers about 80% of your medicare part b costs. a medicare supplement plan may help pay for some of the rest. two: this type of plan allows you to keep your doctor - as long as he or she accepts medicare patients. and three: these are the only medicare supplement plans endorsed by aarp. learn more about why you should choose an aarp medicare supplement plan. call today for a free guide.
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so a and as if thatyour brwasn't bad enough,tals it. now your insurance won't replace it outright because of depreciation. if your insurance won't replace your car, what good is it? you'd be better off just taking your money and throwing it right into the harbor. i'm regret that. with new car replacement, if your brand-new car gets totaled, liberty mutual will pay the entire value plus depreciation. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪
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time for the final trade pete >> i'm going to give you merck it hit a new high just the other day. i think this stock is actually one of those that can hang in there and go higher. pipeline delivery. giddy-up. >> tim >> check out deal or no deal with china, of course i think boeing continues to run. in fact, i don't think their business is as dependant on global trade as people think there's only one or two players in the world that do what they do, and the free cash flow is insane boeing, deal >> will you stop pandering to howie? he's gone already. >> he left the building. >> final trade.
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>> all right. >> guy >> did you do your final trade already? >> he said disney. >> twitter looks interesting to me i think it's held in rather well around the $30 level mel. >> that does it for us see you back here at o ruluregar time meanwhile, don't go anywhere "shark tank" starts right now. i've been a firefighter for 13 years. two years as a peace corps volunteer. i'm a maternity nurse. a couple deployments to iraq. you are one impressive dude. -how much have you sold? -20,000 total. wow. -um, i sold my home, so i... -whoa. you're all-in. you're just like the banks that won't give me a loan. i'm not a bank. i'm an investor. i'm a big believer in social enterprise. social enterprise is the future of business. -i love this story. -i'll buy the entire company. whoa. i believe in the american dream. this was on the back of a fireman. i do feel that this was what i was put on this earth to do. what i think really sets us apart is the story. you're an american hero. in this day and age, authentic is hard to buy.
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whoo! ♪ narrator: first into the tank is a product born from the entrepreneur's experience as a pediatric nurse. ♪ hi, sharks. my name's melissa gersin, and i'm from boston. i'm here seeking $100,000 for a 10% stake in my company tranquilo. have you ever wondered why the first thing a baby does when they're born is to cry? it's because they've just lost the safety and security of the womb -- the only thing they've ever known. i'm a maternity nurse and an infant-crying specialist. i know the secret to stop any fussy baby's wails. the trick is to activate a baby's calming response by mimicking what they've experienced in the womb. but constantly rocking your baby in your arms is exhausting, so i developed the tranquilo mat,
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the best possible way to calm any crying baby in seconds. and, most importantly, it really works. [ baby crying ] -[ chuckles ] -mm. [ crying stops] [ laughter ] [ cryi]g -ohh. -aw! [ coos] john: [ laughs ] cuban: yeah. that's great. -you have one big enough for me? -yeah. [ light laughter ] and when you're done, tranquilo mat fits nicely into any diaper bag. with a waterproof interior and a washable cover, it can withstand any mess. we're ready to save the sanity of parents around the globe. so, sharks, are you ready to invest in this incredible product? can we see it? john: yeah. yes, of course. ♪ so the one in the packaging is for lori 'cause i know she loves packaging. -[ chuckles ] -there you go, lori. -thank you. -stop crying. [ chuckles ] it's heavy. the packaging is heavy, yes, but not the actual mat.
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-thank you. -i'm ready to take a nap. how do we turn it on, melissa? yep, so in order to turn it on, you're gonna want to press and hold the universal power button. -it's a vibrating blanket. -it's a vibrating mat, yes. right. so the other button has multiple modes. -oh, faster. faster. -so there's a medium and then a high and then the fourth one is a heartbeat setting. -ah! -so if you guys close your eyes and kind of hold it like this and take a deep breath in, you'll feel those nice, soothing heartbeat-type vibrations. so, melissa, i have a newborn at home. when they cry, they say it's a couple reasons -- gas, hungry, this and that. but then the doctors say after a while, let them cry it out. don't answer them all the time. -can't do it. does this create a bad habit? oftentimes, when parents come in and say, "my baby's crying," the doctor doesn't know what to do, so they say, "it's gas. it's acid reflux." they just kind of -- they're at a loss for what to say. -yeah, i see. yeah. -yeah. -there's a patent on this? -i do have a patent, yes, sir. so it's a utility patent, and it's based on the -- the way that the motors are arrayed
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so that you can feel the vibrations throughout the entire pad. good for you. -well, have you sold any? -yeah. so, we've done, um, $65,000 in sales in the last 7 1/2 months through our website as well as on amazon. and we've had a few boutiques reach out to us. that's pretty good. what price are you selling them at? we currently retail this mat for $85, but since we've done market testing, we know that we can actually sell it for about $99. and what does it cost you to make it? we've narrowed it down to about $20. well, i-i-i'm curious on why you think the company is worth $1 million. well, you know, as i mentioned, we have a patent. we have quite a bit of sales in just seven months' time. we plan to roll out to all moms because moms talk to other moms. so that's kind of our next push within this space and then ultimately going to be baby-shower gift. can you get your price point down, do you think? yes, we could, but we are trying to go as a premium product. one of the big things that i stand for is safety. being a nurse, you know, i take my oath to do no harm seriously. i don't want to get to the point where i'm making a product cheaply
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that is not safe. how did you come up with this idea? when i came up with this idea, i was actually in the hospital, and i had three fussy babies that were all undergoing medical treatment, and i couldn't pick them up to hold them. so my colleague said, "you really need to offer this to the hospital because you work here. you know, you need to offer it." it's like their proprietary information. so i offered it to them, and one of the things they came back and said quite quickly afterwards was, "nah, we're not interested in pursuing this with you," what have you. -why? -and -- it was some guy in an office who really didn't see the value. however, once we became produced, the nurses that i used to work with were some of our first customers. how much are you making, melissa, as a nurse right now? like $1,000 a month, maybe. -how much? -$1,000. wow. you got to be full-time on this if it's gonna fly. i am. i'm working 80 hours a week with 8 hours a week as a nurse occasionally. yeah, but the thing is if you really want to make this a business, you got to stop working. how much of your own money do you have in this? yeah, so i'm $198,000 into this process. -wow! -wow! wow. where'd you get that money? so i actually had a bit of an inheritance. -you spent your inheritance? -uh, i did.
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yeah. good for you. um, i'm pretty sure my grandfather would be very proud of me. good for you. um, and also, um, i sold my home. -whoa! you're all-in. -so i d-- i-i am all-in to this. you know what, i've got an offer. ♪ but it'll be contingent on a licensing play. i will offer you $100,000 for, um, 20% contingent on if i can go out and license it. melissa, if you really want to make this a business, you got to be 100% focused. i'll give you $250,000 for 25%. you've got to stop working. you've got to be 100%. kevin's getting smart. that's enough capital to get you going. replace your salary, and you can build some inventory 'cause i actually think it's an eloquent solution to a perpetual problem. so you're giving her the same value she's asking for. yeah, yeah, but she needs more money. it's a good offer, melissa. it's exactly what you were looking for in terms of value. greiner: it's an amazing offer, frankly. kevin knows he's got all the honeymoon, the honeyfund, and all that. no, this means there must be something. and once they get pregnant, he can sell it to them. o'leary: mark is right. i have a massive database of people that are gonna buy this, and you know what, i love love.
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i love babies. i can't stand crying babies. anybody else? any other offers? honestly, i think he gave you a great offer. he's giving you basically what you asked for, but he's giving you more money. but you have to give up a lot more equity. which is smart in this case. greiner: so the questions is does that sound appealing to you? because, you know, sometimes you come into the tank and an offer comes, and then you blink, and an offer goes. and we don't want you to blink. ♪
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daymond has offered pediatric nurse melissa $100,000 for 20%, contingent on a licensing deal, and kevin has offered $250,000 for 25%, contingent on her leaving her job as a nurse to work full-time
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on her vibrating baby mat company tranquilo. you know, sometimes you come into the tank and an offer comes, and then you blink, and an offer goes. and we don't want you to blink. i think we're all waiting to see what you do. so 25% seems a bit high considering the fact that i've sold my home, that i've blown through, you know, my inheritance, and i'm still working. it's exactly the same valuation. i just asked you if you needed more money. cuban: you're getting cash for it. melissa, you got to remember one important thing -- make sure that this is what's in the best interest for you and the company. i mean, if -- if i could get an offer that has, you know, $200,000 for 15% equity, i would take that in a second. no, you've raised the value, melissa. that doesn't make sense to me. you're saying now you want a higher valuation to take more cash. i just don't want to lose that much equity. i mean, i've put blood, sweat -- well, if you want to do $200,000, i'll do 20%. i'm giving you the same value and how much money you need. we understand the hesitancy to work with kevin. it's natural. [ chuckles ] it's an instinct everybody has. greiner: [ laughs ] o'leary: actually, i-i'm probably your best shark because of all --
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hold on, let me turn my tranquilo mat on so i can calm down before -- i'm your best shark because i have so many online businesses with families and young -- young mothers. this does fit his wheelhouse. it really does. it's huge. so, melissa, let's just do the math, right? melissa, do you want to quit your job? it's not even about quitting your job, right? no, wait. -she answered that, lori. -well, let's not -- let's -- mark, instead of you answering for her, let her speak for herself. i actually -- i mean, i do feel that this was what i was put on this earth to do was to develop this product. so why would you want to do anything else? you're right, i -- my entrepreneurs work all day and night. they want to. that's why they're growing a business. i do want to. john: kevin, i have a feeling that she just doesn't want to do the deal with you. -well, you should say that. -no, that's not the case. i'm just curious with the other sharks, you know, if there's any -- herjavec: so, melissa, kevin's offer is $200,000 for 20%. mm-hmm. you're saying if you got $200,000 for 15% -- i would take that in a second and -- and walk right now. but you came in asking for $100,000 for 10%, correct? it's that equity piece again. [ chuckles ] so... o'leary: would you quit your job or not? 'cause i actually won't do the deal unless you quit your job. yeah, of course. i would quit my job. ♪
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and i'll simplify it. i'm out. okay. o'leary: okay. so daymond's offering you the $100,000 for 20% with a contingency that he can license it. but the bigger issue now is as i see that she's, um, not really a decisive person. i'm out. ♪ i'm willing to do $200,000 for 20%, which is double what you asked for with no change in your valuation. but i'll be clear -- i'm not gonna do the $200,000 for 15%. -okay. -so if we can't agree on this, then it's not gonna work. -and, lori, are you out? -lori, do you have an offer? ♪ robert, what are you gonna do? herjavec: well, melissa, first of all, i want to thank you for being a nurse. i think it's one of those jobs that people work incredibly hard for and never get the recognition. you're an american hero, and i very much appreciate it. thank you. um, i think it's a great product. and better than the product,
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i think you're a great businesswoman. we've thrown a lot of stuff at you, and i think you're gonna make this work. ♪ you said you'd do $200,000 for 15%, and you'll take that deal in a second. in a second. that's my offer. -done. -all right. [ laughter ] -thank you. -that's awesome! thank you! great job! [ laughs ] great job! thank you! thank you very much! -congratulations. -sorry, kevin. -congratulations, melissa. -hopefully you can, uh -- you can use this to calm yourself. [ laughter ] yeah! she didn't like you! i love her even more! she didn't like you! i love her even more! [ chuckles ] to get a deal today -- it really validates what i've done. [ voice breaking ] and it means that that -- that hundred -- that money wasn't for nothing -- that i -- that i have a great idea,
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that i have a great product, and that we can -- we can do this. narrator: in season seven, military wives lisa bradley and cameron cruse made a deal with mark cuban for their bag company r. riveter, which gives jobs to fellow military spouses. you are a social network through action. i mean, you could be the future of -- of manufacturing, in some respects, narrator: let's see how they're doing now. lisa: the year before "shark tank," we did $300,000 in sales. it's been five months since we aired, and we've already done $1.1 million in sales. cameron: the increase in sales was really exciting, but it was also kind of scary because we knew that at that point, we were gonna have to start fulfilling those orders. as military spouses, we have our own battles. we may not be the ones that have the uniform, but we are doing everything that we can to support our service member so that they can do the things that they need to do to protect our country. $1.1 million. that's what it's all about. working with mark is a company's dream scenario. you have this amazing business mind that you can really call upon every week if you need to.
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expanding with westfield has been great. one of the most exciting things coming up for r. riveter is our partnership with westfield mall. we're opening up our first retail store in bethesda, maryland. part of your next weekly report -- put together what you feel your biggest challenges are gonna be at the store. obviously, we'll be able to help you out with that. all right, perfect. we'll get that to you next week. appreciate it, guys. see you later. lisa: r. riveter really created a new way of manufacturing. it's not just about going to the store and buying a bag because it has a certain name on it. our customers are buying our bags because it's helping military spouses. it's the process of being an american and being proud of who we are. green light. go. cameron: what i get to do is show my kids and my husband that we've grown something that's now helping dozens and dozens of military spouses across the country, and my kids can really see the full picture of the american dream.
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♪ my name's renee wallace. and i'm her business partner, dale. and we live in portsmouth, ohio. i was a military intelligence officer, and i was fortunate enough to be assigned to the 10th special forces group. i was in active duty from 2003 to 2007, and i served two deployments to iraq. ♪ i love portsmouth. born and raised here. the only time i've ever been gone was with college and in the military. however, when i returned, it just didn't seem like it was the same town. just been ravaged with drug abuse and just kind of seemed like the lifeblood had been sapped from it. the lessons i learned from the military i brought back to portsmouth and decided to open up a gym. big kick! pop! dale: we decided to start a business to provide jobs and heal our local economy. dale and i met when i became a member at the gym five years ago. i've always had a passion for making natural products, and after i met dale, we came together to create something that we could sell to the members of the gym.
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there's no doubt in my mind portsmouth's coming back. we're coming on "shark tank" 'cause we want to show people the american dream is alive in a small town. whoo! whoo! ♪ whoo! -[ chuckles ] -my name is dale king. i like short shorts. i love freedom. and i believe in the american dream. my name is renee wallace, and although dale believes he's the beauty, i'm definitely the brains of our company, doc spartan. we are seeking $75,000 for 15% of our business. sharks, life is a contact sport, and war wounds are a part of the game. think of all the times you or a loved one have encountered nicks, cuts, scrapes, wounds,
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rashes, burns, and even scars. daymond, as a gym owner, think of all the times your members are ripping their hands or busting their shins during the course of their intense workouts. lori, think of all the nasty curling-iron burns you suffered while prepping to go on to qvc. [ laughs ] [ laughing ] i have. dale: even you, mr. wonderful. think of all the countless paper cuts you've had to endure while counting your $100 bills. that all changes now with doc spartan's combat-ready ointment, a completely all-natural, fast-healing first-aid ointment trusted by members of the special operations community all the way to neighborhood moms. now, sharks, the only issue remains -- who's ready to join us on our mission to heal america's wounds? we'd love to give you some samples. o'leary: yeah. yeah, why are your shorts so short? -yeah. [ chuckles ] -what's that sticking out? that would be freedom sticking out, mark, but... [ laughter ] unfortunately, barbara -- barbara's not here,
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but i'm heeding her advice when she said if you want to get attention, wear a short skirt with bright colors. so this is all i had at the moment. herjavec: so, dale, what does the product do? how do i use it? what's it for? so it's more of a, "what doesn't it do?" it's a completely all-natural first-aid ointment. everything that is inside that product came from our community. -and what's your community? -i come from portsmouth, ohio. i went away, served some time in the military. i was an army intelligence officer. i served a couple deployments to iraq, uh, did my time, and was fortunate enough to come back to my hometown. and our area had become the most depressed and most economically depressed and unhealthiest area in the state. i wanted to try to do something to make that better, so what i did is i-i created a gym. [ chuckles ] i found an abandoned warehouse and charged 5 bucks a workout. that's how renee and i met was through that abandoned warehouse at the time. -you guys are business partners. -yes, absolutely. yeah. so, how does doc spartan's come to fruition?
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well, um, i'm a mom of three, and i'm married to a former kiowa pilot who served 10 years in the army. i had a little girl, and i started researching the benefits of essential oils because i didn't want to use chemicals on myself and my daughter. and so i started making my own skin-care products. so dale then approached me and asked me if i could work on creating a healing ointment for when we rip our hands. it's 'cause you're not using the natural grip. you were trying to heal hands. [ laughter ] well, we do sell those in our gym, robert. tell me the applications, where i would use this. any type of skin-related ailment, it's gonna work. -how about a cut? -cuts? do i put it on before a band-aid? absolutely. it accelerates healing. we'd love to show you some before-and-afters. oh. okay. -whoa! -whoa! -so, yeah. -so this is scar healing. nothing else was on that? you didn't use any type of -- nothing else was on it. this was a 50-year-old mother who had to get a knee-replacement surgery. this is about six or seven months afterwards. tell me what's in it. it's coconut oil, beeswax,
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vitamin e, sweet almond oil, and then essential oils lavender, eucalyptus, and tea tree. and you -- you put all that mixture together just by trial and error? yeah, yeah. just based -- well, they're also known medicinals. yeah. tell me where in the drugstore is the ideal position for this product? dale: so we're not in any big-chain retailers yet, but if you were to go, it would be in the -- in the first-aid aisle. herjavec: so, dale, you're not selling retail today, you said. you're only selling online, i take it. we're -- we're -- 75% of our sales comes from our e-commerce website. however, we are in other independent gyms. we're in tattoo shops. we haven't even talked about the tattoo-shop application yet. what are your sales today? we've been in business 11 months -- $56,000. what does it sell for? what does it cost you to make? that costs 95 cents to make, and we sell it for $9.99. and then the big tin costs us $1.70 to make, and we sell it for $14.99. guys, here's why i've been quiet. if you watch the show, you know i get a little bit freaked out when people make a lot of claims.
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-absolutely. -when you say, "i've got a cure for that," right? "this happened. we're a cure." it works when you're small because no one's paying attention to you yet. mm-hmm. but in order to scale, you have to be really careful about your claims. with your investment, we're gonna be able to go get those tests. ♪ greiner: i'm gonna just tell you my thoughts here. it's not super-clear. it says "combat-ready ointment." so combat-ready -- that doesn't mean combat-healing. -right. -sure. you know? so -- so it needs to say, "first-aid ointment." yes. to just see it in the store really fast, it's kind of scary-looking. -sure. -like, you look at this -- -i like it. -with a partner like you, that's why we're here -- for -- for this advice and suggestions and to -- you need to have already figured this out, right? this needed to be part of your research. this needed to be part of your preparation. i don't think you've done the preparatory work that you need to, so for those reasons, i'm out. lori is the person here who really is the expert in regards to testing and claims. i don't know about any of this testing,
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so i would be the blind leading the blind. so i have to be out. greiner: i thank you for your service, and i think that you've done a good job in formulating. -thank you. -to me, you have a long road ahead because you have a lot of competition. but you have a good quality product. -thank you, lori. -i'm out. ♪ i like the product. i like the eucalyptus smell. but, uh, for me, i don't think this is investable yet. i'm out. -thank you. -thank you. ♪ herjavec: i completely disagree with the other sharks. i like the branding. you can sell it at tattoo parlors, places where ointment is. in gyms. i mean, that's -- i actually see maybe a new category, and i like things that are new in a category. that's what we did with natural grip. you know, she created a brand-new category to stop your hands from blistering.
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this is maybe if you don't use that product... right. ...you get this. so i'll go along for the ride. $75,000 for 25%. can you meet us at 20%? -no. -[ laughs ] come on, man. it's worth it at 25%. good for you. good for you, dale. stick to your guns, dale. it's -- it's worth it on that. stick to your guns. first beer's on you? yeah. ohh, let's do it! [ laughs ] let's do it! deal. all right. let's do it! -come here, man. -congratulations, guys. ohh! holy crap! you don't know how much this means, man. -you don't know. this is -- -good luck, guys. oh, my god, we did it. i got to get a pair of those shorts. [ exhales sharply ] yes! whoo! we're just two podunks from ohio. uh, it's incredible. it's such a feeling of relief. what robert saw in us was a belief. he saw two people willing to make it happen and willing to work their asses off to get it done.
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- ( phone ringing )es offers - big button,lized phones... and volume-enhanced phones. get details on this state program. visit right now or call during business hours.
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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program visit right now or call during business hours. [ exhales ] man: camera set. all sharks, please stand by. 5, 4, 3, 2... all go. ♪ narrator: next up is a healthy snack inspired by the entrepreneur's experience as a peace corps volunteer. ♪ hey, sharks.
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my name is evan delahanty coming to you from akron, ohio. i'm the founder of peaceful fruits, and i'm here to ask for 75,000 of your dollars in return for 20% of my company. that's because i know that together, we can make fruit snacks great again. so what makes our fruit snacks so great? well, first, they're actually made from fruit. and not just any fruit, we use the most popular super fruit in the world -- acai. it's our main ingredient. we take those beautiful whole fruits. we run them through our all-natural, trade-secret production process. what you get is food that you can feel good about. and that's the other thing that really sets us apart. i started peaceful fruits after two years in the amazon rainforest as a peace corps volunteer. we partner with the local people to harvest the acai and empower them to protect their rainforest, to protect their way of life from the threat of extinction. and now people are responding to our snacks and to that story 'cause you've seen it happen with organic produce -- fair-trade coffee, now ethical chocolate.
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i'm ready to do the same thing for fruit snacks. who's ready to take a bite? -let's go. -let's try it. -yeah, let's try it. -bring on the "osutite." -what is "osutite"? -[ laughs ] -there you go, sir. which one is the acai-a? so acai is how you pronounce it, just to be... -exactly, robert. -ah-sigh-ee. and both of these -- we have two flavors -- the acai pineapple and the acai apple. both of which are there for you guys to enjoy. -where do you manufacture this? -this is good. i prefer "best ever," but i'll take "good," you know? [ chuckles ] so the way that we produce it -- we work with folks with disabilities in an industrial kitchen there in akron. they're able to follow exactly what i need because they're so carefully managed. our process is totally all-natural. so we don't need any of the weird mad science. we don't need any of the additives. it's literally just the fruit. you're not the only one doing fruit or snacks based off of acai. there's a lot of people. there are, but we're the only one that actually uses it as the main ingredient. the acai is a very healthy thing to eat. it is. it's known as a super food because it's one of the best sources of antioxidants,
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which have been linked to cancer prevention and anti-aging. let me just clear the field. i have an investment in a fruit-snack company. i was listening to see if there's a synergy somehow. mm-hmm. i see it as a competitive product. i'm already in that space. i'm out. you said that you were in the peace corps. can you share with us that background, that story? i'd love to tell you about that. so -- actually, we have some photos, so... i was there in suriname, which is a little country just northeast of brazil, and these people are subsisting on less than a few dollars a day. and that's what makes this product really great from a social perspective. i mean, working with those people, what you really see is why social enterprise is the future of business. the only way to do sustainable community development is help everyone involved make money. -they speak english there? -they speak saramaccan. 26,000 people in the world and this guy speak that language, so great résumé skill. tell us something in saramaccan. [ speaks saramaccan ] ha! -wow! -thank you. i just -- i just said, uh, "what do you want me to say? i think you should buy some acai." -wow. -wow.
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evan, you are one impressive dude. i got to tell you. well, i appreciate you saying it. yeah. wow, that's -- but you already said you're out. [ laughter ] i did. it hurts. it hurts. -let's talk about the numbers. -uh, what are your costs? so i sell it wholesale for 85 cents, and then it retails for $1.25 to $1.50, which is very much in range with our competitors. -how much have you sold? -about $20,000 total. -dollars, not units. -yes, yes. -okay. -do you have a retailer that said they'll take this on and give you shelf space? yeah, actually. so we just got approved by whole foods, and we're gonna be launching with them shortly. -in the ohio region? -just in the ohio area. they're gonna give us actually a couple different locations in the store. -yeah. -we're also about to launch with giant eagle market district. it's got to sell itself, right? uh, it -- it does for the most part, but obviously, starting out, we are 100% committed to demos. i'm gonna live in that whole foods store. we're hustling to get this done. i mean, you know, it's hard to get the name out. and you look at every year, you know, america finds a new super food, which -- they all exist, right? so whether it's kombucha or now kale salad or -- i think acai's had some staying power, fortunately, yeah. -or pomegranate. right? -sure enough. i think it's just a big challenge, uh, which you have dedicated yourself to taking on,
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but i just don't have any interest in this, so i'm out. fair enough. i appreciate your -- your input. i'm a big believer in social enterprise, all right? i appreciate that. i think it's the future of capitalism. i agree. capitalism's evolving, and there's a lot of people who are confused and getting left behind. absolutely. but still, the product has to be compelling. mm-hmm. what i think really sets us apart is the story, right? you have the acai. you have the super food, which is a big differentiator. but the social enterprise should come with the product that you want to buy... i agree. ...as opposed to be the reason why you buy the product. absolutely. it's the extra hook. right? right. that's the challenge you have here. i don't know that it's going to be an easy sale. you're going to have to go through that branding process, and the risk-reward just isn't there for me. -i hear you on that. -so for those reasons, i'm out. i-i hear you on that, and i think this is the future of business, right? we have to figure out how to make money. that's the number-one goal of business, but -- -so true, evan. -but -- but if we don't figure out how to take care of our communities at the same time, we're gonna lose places to spend that money. not just that, but it's communicating that story. evan, i love the story, but we're back in america now, okay?
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we are. you know, your deal -- $75,000 for 20% is not crazy, but it's not enough money to roll this puppy out. well, i'm happy to think bigger if you want to -- want to make an offer. i say respectfully not for me. i'm out. well, i appreciate you saying that. thank you very much. evan, you are a great entrepreneur. thank you for saying so. the only problem here is your competition in the arena is huge. there's a million fruit snacks out there -- strips, rolls, bites. i think you're fantastic and super-smart, and you're gonna make it. for me, the investment -- the fruit snack -- isn't the right one. i'm out... but i have no doubt that you're going to make quite something of yourself. well, i appreciate the thoughts from all of you guys. -evan, thank you very much. -i really -- -good luck, evan. -thank you, evan. -good luck. -thank you. we didn't get that deal, but i'm still working really hard to make this a success. i'm building peaceful fruits to make a difference for the people in akron, the people in the amazon.
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so it's disappointing to not get that immediate bump up today, but i know we're gonna get there. [woman 2] ..this... [man 1] ...this is my body of proof. [man 2] proof of less joint pain... [woman 3] ...and clearer skin. [man 3] proof that i can fight psoriatic arthritis... [woman 4] ...with humira. [woman 5] humira targets and blocks a specific source of inflammation that contributes to both joint and skin symptoms. it's proven to help relieve pain, stop further irreversible joint damage, and clear skin in many adults. humira is the number one prescribed biologic for psoriatic arthritis. [avo] humira can lower your ability to fight infections. serious and sometimes fatal infections, including tuberculosis, and cancers, including lymphoma, have happened, as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. tell your doctor if you've been to areas where certain fungal infections are common and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores.
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don't start humira if you have an infection. [woman 6] ask your rheumatologist about humira. [woman 7] go to mypsaproof.com to see proof in action.
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narrator: next into the tank is a product made from gear that protects firefighters on the front line. ♪ hi, sharks. i'm niki rasor.
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hi, sharks. i'm matt rasor. my company is called fire fighter turn-out bags, and i'm here seeking a $250,000 investment for 33% of my company. sharks, i've been a firefighter for 13 years, and on every shift i work, i wear this turnout gear. firefighters wear this gear to protect ourselves from the dangerous elements we face in doing our job. typically, every firefighter is issued two sets, and we use those two sets for 10 years. we then turn in those two sets and get two new sets. and this creates a unique problem for fire departments -- what to do with all this old gear. one day matt came home with his turnout coat, and he asked me to remove that pocket. so i plucked it off, and i made a cool, little bag out of it -- this one. [ chuckles ] -[ chuckles ] -once i took it out, i'd get stopped wherever i went by people asking me where they could get one. and that's how fire fighter turn-out bags was born. now we have every type of bag you can imagine. so, sharks, who wants to be
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the hero of fire fighter turn-out bags and make a smoking-hot offer?! [ laughter ] -good job. -can we see samples? good job! i'm on "shark tank"! i'm on "shark tank"! cuban: oh, lord. i'm on "shark tank"! i'm on "shark tank"! we do that every day. sorry. i can't contain myself. greiner: [ laughs ] all right. which one is for lori? woman: you can take any bag you would like. here, kevin. black for you. niki, how long did it take you to get on "shark tank"? it took me years. but you know what, it taught me that i am in this on my own... it's very cool. ...and not to rely on anything or anyone. wow. never take the first note. how do you scale it? you know, one of the things about getting on "shark tank" -- if you do a great pitch and people like it, you're gonna get 10,000 orders. so how many suits are you getting out of the fireman system? fire departments don't want to throw this stuff away. well, if they don't want to throw it away, what do they want to do with it? what do they do with it? currently, it just goes in the landfill. -really? -or they store it. yes. i get calls every day by a fire department wanting me to take their old gear.
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what does it cost to make one of these bags, and what do you sell it at? and where do you make it, and how do you make it? my business is operated in my basement. we were in a factory. i tried to kind of compact it and make it work for my life, and it was not doing that. it was expanding and expanding. -you mean you went to a factory, and it was too much? -you went in a factory? -it was overwhelming. -i was -- i got a warehouse, and it was taking over my life. so i said, "this is too much. i'm gonna scale down." and it did not scale down with me. it did its own thing, and it got bigger. and so now i need to get back into a warehouse. but why do you want to go back to the warehouse? i didn't know what i didn't know back then. i didn't know how to set up a manufacturing facility. i didn't understand the electrical i needed. i didn't know how to manage people. there was a lot of mistakes i made, and they were all very expensive. what does it cost you, and what do you sell them for? -okay. -okay, so... -hold on. -go ahead. and, niki, at some point, you can tell us how much you sold last year. we make -- we grossed $194,000. -good for you. -yeah. -so you sold... -and we profited -- we profited $70,000.
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how much money have you guys invested? we haven't invested any of our own personal money. oh, good, so you just started making it. it's all sweat equity. -she just started making it. it's paying for itself and -- -how are you raising capital? -how much are you spending? wait. what does a bag cost? i'm dying to know. yeah, how much does this bag -- the average bag is $130. that's your cost? that bag costs me about $60 to make. whoa! well, how much is a duffel bag? $350. -whoa. -wow. i smell a requirement for capital. what have you borrowed? there is a huge requirement, and i have taken out a couple of loans. o'leary: how much? i have $40,000 in, um, high-interest loans. how high interest? here's a -- here's the highest-interest loan that i have. okay. i borrowed $20,000. uh, if i take seven months to pay it back, it's gonna cost me $30,000. that's 50% interest. i don't regret doing that. i needed that money. you're a wonderful lady with lots of energy, but you need a manager. somebody in here has to take over and say, "i do care about the logistics. i do care about the cost of rent," all right? the truth is i don't think of you as a great manager.
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oh, you don't? i think of you as a great inventor. i am a slam-dunk manager. i don't think so, niki. every employee that i have loves their job. i don't think i'm a bad manager. i look at you -- i've heard your story. it's very compelling. but it's very hard for me to understand how to deploy $250,000 and ever have a hope of getting it back. something's not adding up for me numbers-wise. if you made $70,000 in free cash flow last year, why did you have to take a $40,000 loan now? well -- can i answer one thing? yes. we -- just in the last month, we've kind of, like, doubled our -- our -- our payroll. work force. so because you double -- you're taking money not to buy inventory, not to buy cost of goods, but to expand the business. you're trying to gear up. so you're thinking -- -we're trying to gear up. -i'm gearing up. okay, we got that. but i can make these bags a lot cheaper. how? these come from something that's already constructed. that's why it's taking so long. but i'm going to have another service where i get these bags and i stamp the pattern out.
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what? all of the material is on a roll. i do it the way normal people do it. -okay, it's not -- -no, no. that's authentic. i don't think that's gonna work. that's not gonna work. -wait, what you're saying is... -why isn't it gonna work? it is working. -...you're gonna go -- wait. let me see if i understand this. that's not an authentic product, then. -no. -you're gonna go to mass-produce the look of these, but take regular fabric, and then -- -well, they're gonna be -- -no, it's -- it's gonna be the actual fabric that they use. -just fireman fabric. it's gonna be off a roll. now, listen -- you know, niki, i think that's a very dangerous place to go. 75% of the fire fighters -- -no. -this bag fought fires. o'leary: that's what you told me. that's why i paid 300 bucks for it. this was on the back of a fireman. john: yeah. -you're changing your -- -we're gonna offer both. huge mistake. one's gonna be a lot less expensive to manufacture. i'm knocking myself off. so we'll pass that savings on to the consumer. no, no. the whole reason -- do you know how compelled people are to support you because you're supporting firemen? hang on. hang on, kevin. cuban: it's a fine line, guys. it's a fine line to walk between -- it's not. people are already doing it, and they're selling. i've seen it. -i know, but let me -- let me tell you what i think about it. first of all, this bag is absolutely incredible. -yeah, it's great. -from the way you sewed it, i can see people paying the money for it.
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thank you. but i think what we're sharing with you is not that you're not a good manager. you could be a great manager, but it's gonna take me to not only give you an investment but send a huge team in to ship, bill, and everything -- to grow the business. but at this stage, it's hard for us to invest in. and unfortunately, i have to be out. -[ scoffs ] -look. as kevin said, it's not that it looks like a fireman wore it. it's the fact that a fireman actually wore it. right. the whole deal is somebody wore this. that's the whole deal. -that's not the whole deal. you're missing it, kevin. -no, it's not. no, look. i -- -i've been to trade shows. -i think so. look, i can have my opinion. we don't have to agree, okay? i've been to trade shows, and there's this guy. he had a booth. he's getting all his stuff from china. it's generic, there's no soul. well, then you should get a manufacturer in china to take that material and knock that bag off. hold on. just let me get this across. he's knocking me off! why can't i knock me off?! different business. different business. -different company. -it is not. look, no, they're wrong. niki. niki. -i'm right. you're wrong, cuban. -they are wrong! -you're wrong. -and i'm gonna explain to you -- well, then, you give her the money.
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i'm gonna explain to you why, right? lots of companies have premium brands that are authentic, and then they have less-expensive versions to reach a broader audience. where do you think she's gonna get the capacity to do that? that's a different issue. she can't even build the ones she's got orders for. that -- that's a different issue, right? [ scoffs ] that's not true. look, niki, you should be extremely proud of yourself. you're -- you're hustling. you're hitting it hard, right? you're doing a lot of great things. but you're really a product, not a company. okay. that's the challenge. and for that reason, i'm out. well, niki, i can't invest in this, not because you're not terrific. it's just not structured to take $250,000 right now. you're just like the banks that won't give me a loan. -that's what -- no, it is. -it's not about loaning. they only want to loan you money those guys are taking advantage -- ...unless you don't need it. i'm not a bank. i'm an investor. so what i want to do is build businesses, okay? this is what this money will do. -it will build this business. -no, it's -- it's not -- you're not ready for my $250,000, niki. -okay. all right. -i'm sorry. i have -- -i respect your opinion. ♪
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niki, $250,000 is a lot of money. it is a lot of money. i don't feel confident i'd get it back. i'm sorry. i'm out. [ sighs ] so what do you say? i'm all-in on the fireman outfits 'cause that's authentic to the brand. in this day and age, authentic is hard to buy. i don't know if you're the person that can run and scale that business. but i love the business. i'll buy the entire company for $500,000. -[ exhales sharply ] -ohh! lock, stock, and barrel. i think my team can run it. we'll work with you on some type of a consulting agreement with us. but i think we can take that company to another level. [ crying ] that's my offer. ♪
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niki and matt are seeking $250,000 for 33% of their company fire fighter turn-out bags, but robert has offered to buy out the entire company. i'll buy the entire company for $500,000. lock, stock, and barrel. [ crying ] ooh! i'm just curious. why are you crying? i just... overwhelmed? can i...? it's okay. is it -- is it the heels? [ laughter ] niki, i've never loved a business so much on here... ohh!
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...that i've wanted to buy the whole thing. i just love it. i love everything about it. -you know what...? what do you think? i could never disappoint the people that i'm serving right now. [ exhales sharply ] and all of you are right. i... listen, i'm not sure what you were going to say, but i don't think you've disappointed anybody. yeah, i... i think you came up with a fabulous idea. thank you. i have a ton of admiration for firemen, policemen, people that risk their lives every day to help all of us. and not only is it just something that i feel passionately about, but you have a great sense of style. thank you. then there's the flip side that happens to so many entrepreneurs, where people knock off a great idea. right. and they cut the prices, and you're mad because you're the designer. why shouldn't you be able to make that, too? thank you. i actually think there's a market for both.
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-there is. -but the cool thing that people would want to really love and buy into is that we could then donate money to firemen's funds. right. so that a certain percentage of every bag sold goes to firemen's charities. right. i'd like to make you an offer. okay. i would give you $250,000 for... i'm gonna go 50-50 partner, and i'll tell you why -- because i'd like you to be the designer, but then i know me and my team would need to take over the manufacturing, the charity donation, the books. [ sighs ] so i'd like to be your equal partner. you realize both the offers are the same valuation. in the case of robert, he's paying you twice as much for 100%. lori wants to be a 50-50 partner. but, niki, we're not kicking you out.
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-right, that would -- -we want you to stay, and we'd hire you as a designer. i'm giving you the opportunity to do the things you like. -okay. can i ask a question? -of course. -you're allowed to talk, niki. w-wh... i don't have any questions. i know what i need to do. ♪ lori... let's make a deal. -yay! -all right. -[ chuckles ] -congratulations, guys. -congratulations. -thank you! -thank you, gentlemen. -awesome! -robert, thank you. -i'm so glad. -yes! thank you! -i'm so glad. oh, my gosh. thank you. greiner: well, you're a great designer. thank you so much for all you do. thank you very much. thank you. -bye. thank you. -well, we'll be talking. -okay. -[ chuckles ] oh, my gosh, baby. oh, my god! that was awesome! that was brutal. [ laughs ] oh, my god! awesome! that was so crazy! oh, my gosh. i decided to go with lori today because she voiced my vision for the company. she saw the market. she agreed.
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and i can't sell my company to somebody who doesn't agree with my vision. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ with a sweet way to clean up messy kids. hi. i'm danielle stangler. and hi. i'm julia rossi. and we are from castle rock, colorado, and we are the creators of neatcheeks. we are seeking $150,000

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