tv Mad Money CNBC February 5, 2019 6:00pm-7:00pm EST
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the world are overblown when it comes to the auto parts retailer so i think there's a lot of upside. >> dan. >> fast 5 is where they introduced the rock. he's got nothing on you. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a pull market somewhere. i promise to help you find it. mad money starts now i'm cramer welcome to mad money i'm just trying to make you some money. my job is not to entertain but to educate and teach you call me or tweet me at jim cramer what will people pay up for? what inspires customers to pay more for product that may not be
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all that different from what the competition may be making? we saw the answer to that question today people will pay up for prestige. that incite to find much of the action the dow gained 170 points today we have one of the most amazing displays of prestige power i could ever remember with the stocks of ralph lauren and apple. three of the most prestige you s brands around. they surged 8.4% and 11.6% respectively both propollelled by better than expected numbers do you believe that? let's take it one by one you know i have raved to you before about este lauder
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leave it to the seller of clinique to put on a clinic. today this conference call este lauder delivered blowout numbers. how about ralph lauren the company's ceo who cracked for clothing and run away with ralph lauren it is reputation of ralph himself resulted in a spectacular quarter. new generation of people buying ralph. not only is the apple watch crushing it have you seen the version in it also saves lives i read a piece this morning about a 67-year-old man who had
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a serious and his apple watch automatically contacted rescue personnel. it is actually useful. no wonder people pay up for it that's without mentioning the new iphones that have the same picture quality as a $1,500 camera that makes you look darn good on instagram. that is half a point of owning a smart phone at least for younger generation all right. you know what these brands having going forthem it is a way to analyze stocks. i have to write a book about them first and foremost they hold up when the economy gets tougher. that's a major tenant of what i'm talking about. i will quote for a moment. explains this concept than i ever could i quote i want to emphasize that historically prestige beauty has been less sense tifr becauitivet is a more affordable
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it is also a lasting universe. he explains long term our industry has strong fundamentals that should drive solid for years to come. see, that's what i want. i want long-term fury so you can own it long term that's not what that is about. by the way, ceo's watching, please, this is your clinic. identity no, ma'am kidding t -- not kidding it is from devoted consumers attracting new users with compelling innovations and marketing. and the quality of our product turns them into lifelong fans he says thanks to this every single brand category delivered double digit growth that's extraordinary. other companies drstruggle in
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china. i have heard many tales but have you ever heard anyone say this luxury brands have been in high demand in china they are increasingly shopping online he isdoubling down on his winners while he is letting his lose erts kind of go fallow. i read the call and i said i got to call the man. i got to call the wizard i gave him a jiggle. i said help me here, how did you do it? i said give me the magic give me the formula. he says she is marrying data analytics to design prestige
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products there. data analytics it is only when it is connected to creativity does it pay off. this man spends more time writing his conference call than anyone else in the world i'm not kidding. guys, you big shots in the valley who you think you know everything, forget it. you need to look at that through the right prison that is why it is such an amazing teacher. we should be his futures i have been watching the latest and extending the brand power of late to a new generation last spring a very ambitious turn around. i thought it might be too ambitious. it was a little dicey. he was able to outperform raising the full year sales forecast it is easy for executives to talk to talk making big plays.
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when he went over the future of ralph lauren he went over a new generation of consumers because he is conceived to be a little bit too old. it had been too many not enough new places fourth lead with digital activities i have the app that's real good. fifth, operate with discipline to fuel growth i know they sound like the newest briz school you know why we dismissed this most can't deliver on that he has a new fan base over ralph lauren's merchandise one-third of the consumers who brought product, one-third were new to ralph lauren.
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i love this. influencers. people you might have no idea about if you're my age but they are influencing even as they reasonate with x, y, z, whatever first when was decked out in the first designed in his own family i love this influencer it was remarkable. there is nicole kidman, alex rodriguez, chance the rapper, chris pine, lady gaga, eddy rosey. rachel, and lisa the last one was my wife i threw in that one because i needed someone i knew which is thousand y
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how you know they are hip. you have the potential of multi-year move. you laugh. stop laughing over there yeah you. stop laughing. these are influencers. you don't even know who pre-prepre-pr pre-pre is get away from her. every day i have to remind people apple is still a company. remember, if your company is pricing power have fought leaders on board it has a stock
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that should go up over time. let's go to rick in new mexico, rick >> hey, jim. first of all, thanks for all of the hard work you have done for us all of these years. it served me and my family well. >> thank you very much thank you. >> you're welcome. >> so look, i have owned public sto storage for about six years. i have also used one of their facilities and impressed with customer service and operations. recently they moved out and knew people that moved into these positions and what seems to have been planned successions war long time in the making. >> yes >> i'm concerned because you often stated that. >> i did like that previous ceo. let's invite him on. rick in new mexico we are not
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going to let you down. i always recommended public storage is the absolute bottom i have liked this stock. rick is right. we have had a change of personnel. let's do some digging. all right. people pay up for certain things if you own the stocks in these companies you can handle what the market throws at you they do matter i'm not having anybody laugh at that earnings last night make it seem like running a business may not be as easy i'll tell you what to make of it in the darkest days of december they said i'm checking back to see what he says here. when robert is investing in the next big thing on shark tank he manages cyber security for some of the biggest corporations. i'm asking him while people are facing a greater risk of having
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there's no pleasing some people you need to walk a tight rope between value investors who want to cut cost and growth investors want you to spend money so your company can keep expanding keeping both groups happy is a high wire act. in all honesty have i never seen it pull off for an extended period what i regarded as a pretty darn nasty conference call. multiple analysts what is
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greatest great cfo, fantastic thoughtful person looks great for spending like a dru drunken sailor i will consider how little the long-term projects have made and how much they have cost the company. i was this was a more lineal relationship at times it feels like there's no amount of money they will spend. after all the only other bet that's paid off, the smart thermostat system. he pointed out the cash position doubled to 109 billion in the last four years spent about 3 billion which is well
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below your peers he wants to know what he plans to do with all of his money. why were they sitting on it? apple is the same issue. apple was circumstantial they end up sitting with nothing to deloi it on except to buy back stock they get little or no credit for cash work. the company announced a buy back that's small change, not enough to move the needle anything might be worth buying is already going to be very expensive. we know alphabet is spending a fortune. it caught so much flak even as i told you to buy it into the sell off last flight and again this morning. it turned out to be right what
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should they do with that 109 billion? i don't know it's hard. it is the largest share hoerld but turned out to be and ended up dumping the stock when it took too long for ibm to turn itself around. they sold for 34 billion they are paying full price here. of it put ibm in the mix they previously didn't have enough exposure here ibm is finally doing what we want it did what we want and like it. didn't help that it happened when everything was falling
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apart. yesterday everyone was going covered by j.p. morgan it is a company with cheap stock that has too little growth the iphone repeated that apple should make some acquisitions but related them to health care to take capabilities they want today bulk up on capabilities nobody seems to care it has dwoched in advertising businesses because it was a bit of margin in the u.s. retail division nothing else seemed to matter. the stock coming back but it is doing so in spite of the analysts what should they do with all of
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their cash i don't really have any answers here i know they shouldn't take their cue from the short term gyrations in their stocks worthy analyst critics, many of whom have become increasingly negative with these stories. my advice, you can't please everybody and the case of alphabet and amazon and apple, i think it's a mistake to even try. much more mad money. what are the biggest cyber security worries i know you can make money off of the companies that do cyber security let's sit down with the man himself. he is not promoting any of these companies. is there an upside ahead >> and the fed may not be raising rates. it doesn't mean you shouldn't be putting your money in motion it could save you money with a few clicks online.
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welcome back to mad money. >> thank you >> i thinkwhat this is really about, not markets because those come and go. the fact is when we take some of their products in they find out more about us than they should is there tloout the chinese are behind a lot of cyber terrorism they are doing >> my personal opinion is yes. >> yes >> but the u.s. intelligence agency warned us not to use these devices. why are these people getting these products out there it is why do you rob banks that's where the money is? why does everybody want to hack the united states? this is the greatest country in the world for ip, for intelligence and all of that kind of stuff. >> here is what's confusing. they are complete with this.
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people think it's better but now our government is telling you and pressuring people we don't want you to use it because we believe that it is really embedded intelligence. is there any truth to that what do you tell your clients? >> i tell my clients to be very careful. they warned about using those products that's lot of warnings from different governments to use it. it amazes me the large corporations an governments still use it you cannot beat the attraction of low prices. >> oh, my god. >> so you would advise me if you were about to commit a may jrjo amount of money i would not use them >> i would not use them. i'm a cyber security guy >> you think it's more than what some salesperson thinks? >> a lot of these companies are trying to build huge infrastructures. they are putting safety.
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>> are they? >> yes i'm a cyber security guy i always think you have to build everything with protection in mind saving a little bit of money today and having the right protection is going to hurt your brand and hurt customer data look what happened with facebook and google recently. would you not been told what the authorities would be achk ri about? >> what i would have said to them is you cannot under estimate the backlash of using consumer privacy the problem is people think consumers don't care i'm not sure consumers really care but governments will care when you got the government after you it will hurt you long term >> that's true it turns out that the people are still using facebook governments have the ability to push out business. >> consumers want the government to protect us. it is one area the government has to protect us because we are
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lazy as consumers. we don't want to clang our passwords. we want to rail from the rooftops and want the government to step? they going to. >> i'm so glad you mentioned passwords. i read this article. it is to unlock crypto du currencies >> we were just talking about this here is the beauty it can't be hacked that's the beauty of it. >> north korean, no. >> here the downside guy dies with the passwords. >> can you crack that? >> that is the nature. it cannot be hacked. so i don't know how this was built. i can't comment on this specific environment but that is the
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promise. it can't be had. >> don't you think when we are creating money or virtual systems that in theer ory cannob hacked that it could be dangerous? >> yes >> don't we need a way to access some of these systems? even my fire department has a key to the elevator. i think there's $200 millionover consumer money that people don't know if they can get back. >> i do read articles. there is stealing. >> well, we publish an annual report >> yes >> it's one of the things in or report that the basis of one of the reasons hacking is so big right now is because of the rise of crypto currency if i hacked you and i want you to give me money i have to meet you somewhere. >> right >> in a dark ally in a coffee shop it is completely anonymous you can send me lots of money
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and i never know where it came from >> all right now, when are we going to be there a situation where eyes don't glaze over when we hear someone hacked our stuff we are not protected we are out a lot of money. >> you're desensitized >> right >> as a consumer if you're an enterprize and listening to this the consumers may not care we may be desensitized if i get hacked from one retailer i will go to another retailer >> so true >> so it is on the government to take care of us. >> okay. now, let's say i'm convinced that someone is going to hack a major double decker tractor trailer with no driver and run it into me i'm convinced it is going to happen can we make those hack proof >> very difficult. you're assuming that that kind of attack hasn't happened yet. there's an attack in december on
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the l.a. times didn't get a huge amount of publicity. it was significant they hacked their back end systems, payroll came in electronically and effected the printing presses the l.a. times stopped printing for two days or one day. on the surface not a massive attack but what's significant is they went through electronic back end system. >> yes >> and because the presses are connected with the internet of things they stop mechanical systems. so when you go through an electronic world into a mechanical world you crossed over what are mechanical systems? pipelines, all kinds of hospital systems, everything in the world. the world is becoming so inner connected and all of those access points can be hacked. if you're a big corporation you have got to listen to this you got to take care of it >> wow >> i worry about this.
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is this big? >> i worry about it too. it is good for our business. >> right >> that's one of the reasons you're seeing so much growth in the internet stocks and cyber security stocks. >> absolutely. the key is cyber security expert that you want to learn from. she an entrepreneur. she a shark. i always get scared when i listen to him. he has ideas about how to make it stop. stick with cramer. >> thank you
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we highlighted the workover bob moreno i blog there every day as well as being the publisher of right view trading.com it wasn't quite perfect. it was december 11th we have one more before they started rebounding he nailed the bigger picture more importantly he explained you shouldn't fear the major pull back that was coming. any weakness would represent a buying opportunity what made his so confident he figured the averages appeared
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to be going through a normal period of consolidation. the kind of thing that are in r interrucinte interrupts a bull market you would have known it was in fact a buying opportunity which is why i want today go back. how did he get it so right where does he think the market the going now? let's take a look at nasdaq composite. when he last spoke to him he suspected it would hold. okay because that's where we bottomed in february, april and october too. that did fail though you can see the fail your right there. after a huge decline that's where i call it. it is the mini bear. the nasdaq came roaring back.
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they talk about it regularly in october and november it lost about 700 points when it was broken and quickly dropped another 700 points by the way, points out you saw the same thing happen to the dow and s & p 500. once they started climbing again we roared higher it took a few weeks to clear the old floor of support the slowest, an important momentum turned very positive very fast. you see that the money flow, okay it measures the level of buying and selling pressure has returned to positive too there is one more tip he wants to make about the bottom check out the monkey chart, all right? this is very important with this chart it doesn't show
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price. it shows percentage moves okay so run from $5 to $10. these are both 100% rallies. it does a much better job of putting the markets longer term gyrations there context. so when the nasdaq broke down in december it dropped another 9% bringing the total peak to 24% the thing is a lot of them that even 24% decline isn't that unusual. okay it points out you have periods of consolidations and to him the decline here looks similar to what we saw from the nasdaq from 2011 and 2015 and 2016 even at the lowest outpoint the nasdaq never broke down below the eight year trend line. everyone was freaking out. look at this it helped. remember those days? hole loi cow remember, i called in and i said
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i think it holds it seemed to be too far too fast why does he bring it up again? it was sideways for another least the next seven months. why? because the last couple of consolidation periods took at least a year to play out we are not even six months into this one a little more complicated chart please take a gander at the chart you need to look at resistance levels chls even after a 16% run from december lows he thinks the s&p has more room to run that's good news, right? still not there. here we go he continues to trend higher it hasn't yet reached over
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levels yet it is over the last month. look at that reflecting constitutional buying he thinks it is the kind of investors. remember last year we were down gigantically all right. still he thinks there is perhaps a 3.5% advance bv it run to a weekly resilience. he thinks the 2818 target is achievable it is still in tact when it happens. it would clear the way for a further 4% move. taking the s&p back to the october highs which most thought we could never get to and the upper end of the month i have got to tell you, i was in touch with people that said i will never ever be seen again. he says it is entirely doable.
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he says it is unclear how long this process will take he expects it to be a synchronized reversal. it is at around 2930 he believes we'll head right back down once we hit those levels that would be horrible he says the s&p could sink down to 2350 which is a longer term support. obviously we would have just a massive panic if that occurred go back to december lows i know i'm not looking for that. what do you think he says to do? we have considerable upside for it you can't allow yourself to get too if you believe what he says. he thinks it will be a con sal dags pattern until december. it is bouncing between 2350 and
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2930 from now we are headed higher. he says you should use the key levels as entry and exit points until the con sal dags pattern comes to an end later this year. they resume their long march hire it came very close and analysis was spot on. you can afford to be optimistic. be cautiously optimistic right now. at least until september he says you should be a seller if the averages approach the october highs. it won't happen any time soon. even if he is right and this rally will lose steam of at 7% gain it is still pretty good i'm var wary and it makes me want to do selling after this run. i don't want to see this level again. stick with cramer.
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are you ready? john good evening a big boo-yah from bridge port >> how can i help? >> thank you for taking my call for all you do for us home gamers id like your take on where the stock can go from here >> i think the stock can go higher i think that the company is for buying here. i need to go to tim in illinois. >> thanks for taking my call i enjoy your show. you had maurice taylor jr. >> that was a wild interview >> the stock is doing quite well at that time it seems to have fallen on tougher times.
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has it declined in the market? >> what is that stock doing down there? i have to tell you, i have to do that it is five that is -- oh, man let me do some work. that is a major play jor downturn we have to do work let's go to ben in pennsylvania, ben. >> hi. thanks for taking my call. >> my pleasure >> so do you believe it will be effected for the outcome of the trade war and do you see any -- >> i have been dealing with a lot of fashion guys lately and a lot of suppliers they say over and over again get more positive. i will you should buy it. >> there you go. it has been an amazing way to moveproduct.
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>> i'm debt free at the age of 57 >> thank you so much every day my wife says why do you still do the show? because of you that's why >> and i don't do this very often but i see a stock to take a chance on. i would like your on avon. >> i saw the way supperwear blee up you can lose it. that's how i feel about i. let's go to kevin in minnesota >> boo-yah, jim. >> thanks for all you do, man. favorite show on tv. >> get out of town, man, come on >> caller: it's true it's true. >> better than the punisher?
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>> caller: hey, i'm torn on this one, jim, flws >> they crushed the quarter. this is when people come in to buy the stock because of valentine's day. i have my cards but i don't think you should buy it up here. i would not be a buyer let's goto washington. >> it's a winner i can't take it anymore. and that, ladies and gentlemen, this is the light fling round. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly.
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sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
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for those that keep some of your money in a savings account there's a chance you're being ripped off the average savings account pays out .1%. i think that's crazy i know it's not normally something we talk about but i need to bring it up. many of you are leave ago lot of money on the table here. sit a terrific piece for wall
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street journal you know, it is kind of sitting there. he mentions a company called max my interest. it is cash management service that identified top savings rates for customers and automatically shuffles funds into higher yielding accounts. it is 228 basis points higher than national average. that may not sound like much but if you're sitting on a bunch of cash it's earning next to nothing. this is a great deal especially since it charged two bay si points for its services. i think it is an intriguing story. he is the founder and ceo who has more an how to make sure you bank isn't ripping you off thanks for coming here >> i have to tell you, it's very funny. i read the article and i immediately called my personal cfo. i was mortified. i have been doing exactly what is wrong i hadn't thought to check. i think people got lulled into
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the idea you'll always have low interest rates and that's no longer the case. you guys are doing something about it >> this is exactly what happened if you think about the ten years since the financial crisis interest rates have been near zero it turns out all this time it has yielded something but most don't know about it. >> a lot of banks, i don't want to -- i mean i'm on the conference calls some of the great earnings these people were getting is people haven't figured this out they making fortunes it is time to start helping these people >> it is true. about 50% of the profit in wealth management comes from the provision on client cash i advise you and you shift it. how does this work >> it is very simple it started during financial crisis it was working at one of the
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large banks. the bank had a near death experience i said wait a minute it would leave me as an unsecured creditor i looked for ways to keep more cash safe. i stumbled upon online banks they don't have brick and mortar costs. you take your existing checking account. you don't have to switch banks and you link it to a portfolio of an ion savings accounts every month we monitor interest rates. we simply ask your banks to send funds between your own accounts to you're always earning the highest yield. >> why would the bank want to cooperate? >> we originally build this service independent of the banks. it turns out it is better for the banks and better for the clients. >> it seems to be your ignorance is their bliss >> we think of one category as brick and mortar banks you have a checking account,
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direct deposit you a whole relationship no one want to switch bangs. we think we can help them do better with savings. it anchors that relationship with the core relationship bank. you're happy to stay there because they are able to serve you all of the other things. we have taken away customer acquisition cost it pays 200 basis point to acquire a customer we think of it as a tax on the system by eliminating acquisition costs. they are able to pay higher rates and some are delivering preferential yields only available because they are able to acquire customers at no cost. >> okay. we switched. i won't mention who we switched to my daughter needed some money. they really weren't able to get it to her. i'm trying to figure out, that speed is no good, right?
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>> we were stuck with the legacy of opening an online bank account. you type in all of your information. you find a check wait three days for travel deposits we said that won't work. that's too slow. we engineered what we blooefd to be the fastest account opening our customers can open a new savings account and three clicks in 60 seconds. >> recently s&p bought a company called rate watch. they have the highest rates. they haven't integrated with this can i go around the country and find it? let's say rates keep going going up if you check it out and it's okay would you -- i mean it would be natural >> that's the point. all of these are sitting in your own bank account and all fdic
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eninsured. it is really a win-win >> and i hear about it and i know her father. he was my boss at goldman sachs. i said i don't know why i didn't do this. i hope i can get my money back i want to thank gary zimmerman i hope you enjoyed that and maybe one day the company becomes public this is the kind of company working for me stick with cramer. >> thank you & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item.
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ he's hoping to whet the sharks' appetite with his idea. hello, sharks. my name is les cookson. my product is the carsik bib. i am seeking a $30,000 investment in exchange for 15% of my company. now just imagine for a minute, that you're driving
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