tv Mad Money CNBC March 25, 2019 6:00pm-7:00pm EDT
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and buy them into q1 earnings. >> guy. >> great to have you here. >> it's been a pleasure. >> see you wednesday >> yes, you will >> yes, you will. >> u.s. steel in your face. >> does it for us. more "fast." my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends i'm just trying to make you some money, my job is not just to entertain, but teach and put in context call me at 800-743-cnbc or tweet me @jimcramer. what more did we want from apple for heaven's sake? the company announced a whole slate of new products and
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services and the stock got hammered and the weakness reverberated throughout the market and the dow inching up 15 points and the s&p, declining .07% and apple in front of the reason yes that happened honestly, was there nothing apple could do to stem the decline. the stock actually held surprisingly well. haters going to hate, right? although when it was down three and change they took it back up down only $2.31. it's a minor victory, all things considered last week i told you that apple needed to double down because the service revenue stream is the future and there are tons that we want apple to focus fancy, high-tech gizmos and these people will always be disappointed by a bunch of new services they consider to be boring and pedestrian. sure enough, apple allowed a bunch of boring and pedestrian services being they didn't seem very sexy even though i think they could be very profitable. there's apple news plus which bundles together subscriptions to more than 300 newspapers and
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magazines including the l.a. times and the wall street journal for $9.99 a month and that's an incredible value proposition. it came saturday night around 9:30 and i spent $32.99 for the journal alone. i say sign me up apple's going to save me a fortune and it's a better deal than what i'm getting currently. i'm downloading that as soon as we finish taping and i cut my old card in half on the show and you'd see my number and you'd better believe i'm canceling my hbo and showtime subscriptions once i get them through apple tv plus streaming system and their new video game streaming service gives them a nice back door to one of the hottest markets around news, television, finance, gaming all in one and the super channel and it's a yawner. i don't understand how apple is saving people money because it doesn't mean anything to them. of course, the stock rolled over because these are all as i said, pedestrian applications and
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that's crazy not to be too philosophical, but sadly, much of life is prosaic and if apple services could save you some money i say game on apple credit card gives you cash back on the daily basis and my credit card gives you points and my wife takes the points what is that all about we don't need no stinking points with apple you get 2% cash back and 3% in the an store with no late fees. i love a credit card that doesn't expire because remember, come o when it expires is it a real bummer you have to put in your number everywhere and amazon and this and this and that, it's a waste of an afternoon. how about the tv service i don't mind paying apple what it wants and more importantly, you want to have to pay them for what you don't want. there are 580 channels and i like four of them. it's not like you're saving a fortune with hbo and espn +, and i say siri, put on hbo and i'm intrigued by the morning show with steve carell because i love him and reese witherspoon and
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jennifer aniston, and that's okay and they have oprah and she's unstoppable. she'll want the arcade stuff and my wife plays a game every night before she goes to bed and she'll love it these are all services for the 99% of america and these perks mean nothing they don't care about saving extra money and they've never been to a dollar store either. they want apple to save the world with a hundred bucks a month. it's a god send. so what did wall street want to see? they wanted to see some kind of blockbuster announcements to fed the stock roaring. i'll give you what they wanted first, the critics wanted apple to spend more on streaming so they could rival netflix that means shelling out $50 billion. that's the amount that netflix has spent on programming, supposedly or they can buy via com and cbs, put them back together and make television programs and provies while getting nfl and march madness. i bet apple could stack them out
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both for 40 bill, okay that way they can develop all sorts of content and no longer buyback stock and raise the dividend last time i interviewed tim cook he called about health care would be his legacy and they handle electronic medical records. if apple wants to dominate, they need to buy cerner, and that's an $18 billion company and maybe they need to pay 23 bill and that would revolutionize health care at the same time there are plenty of other opportunities and it's dexcom and apple can buy them or tantum diabetes and you can create an artificial pancreas and $83 billion with acquisitions and that's watt analysts want. if apple did these deals they could convert the analysts into believers and we could get the stock moving right here right now, but honestly, i'm perfectly happy with what the company is doing here actually, more than happy and
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nothing resonated with people who don't bother to look at their cable bill each month or don't check the apple bill and they'll resonate with consumers, and the 99% and that, not the wall street analysts who want apple to spend tens of billions of dollars and that's what the people think about, and that's what tim cook thinks about and that and the off-mentioned privacy issues that he cares about. throughout the presentation, whenever it went dark i thought it was facebook looming and darth vader, like against luke cook's skywalker which brings me back to what apple really needs to do here it has become more of a service company that makes the best cell phones sometimes in my wildest dreams think they should give away the phone and charge you a certain amount for them every month along with what they charge you for the subscription services they roll out today. that would get the customers and excited tonight. they start covering apple like procter & gamble or colgate which i think is the right way to evaluate it, of course, they're low tech and this is
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high tech. apple wasn't the only thing that controlled today's narrative it was more fluff and the inverted yield curve and the ten-year u.s. treasury drifted lower and i don't think we'll have a recession and i say that as someone who was sounding the alarm during the economy's fourth quarter when he was hitting us with three rate hikes this year and ill-advised. we saw more selling today as money managers are raising cash to prepare with the onslaught of ipos and they don't get enough new money without bringing something else and they're dumping high-flying stocks and i service work day in order to get the likes of lift and uber and i know that trade negotiations are more important than ever and it seems like there is a real deal on the horizon and even after we've come to some type of agreement and that's a tough sell for china and plus this brexit thing will freak people out with good reason remember the federal express interview last week, and as much
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as i like the bells and whistles, i know the jackals wanted a game changer that cost a fortune and not a bunch of incremental improvements and i think they're wrong and that's why i continue to say you need to own apple, not trade it gregory in california. gregory? >> hi, jim >> gregory, what's up? >> caller: i'm calling because i need the professor's help, but first i want to tell you i'm a proud action alerts member. >> yes >> i want to thank you for your invaluable help. your educational efforts really make a huge difference to people like myself. >> you know i spend more time on the club than i do with anything i'm so glad you're a club member how can i help >> i'm calling about zora. >> ticker symbol symbol zuo. they reported earnings last week and i don't think that is one of the cloud kings or princes yet and i've been following them since you had the ceo on, and i've done my research and they
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were in line with their earnings per share, they won out on revenues and they got slammed. >> first of all, gregory, thank you for the incredible comments on plus.com and i want everyone to remember, and not just because you mentioned my name, but because i really felt there was a good quarter and there was a short position and people leaned on it and he and i both like it. i would unhesitatingly would buy zuora. i am with gregory. now i'm going to go down to ed in florida ed >> boo-yah, jim. >> boo-yah, ed >> professor jim cramer. >> a tenured night >> you and your team, i want to thank you for all you do for us home gamers. you are the best. >> this is the single best team ever i was telling my wife last night that regina gillgen who was on vacation last week who is back and she's my executive producer
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and -- but, we miss regina because she is so good and so great. thank you for mentioning it. most people don't talk about the team there is -- there is -- is there an i in team >> no. okay what can we do >> some spelling problems in this group >> i've been watching your show for years and one of the best shows i've ever seen in my life. >> man you rock >> you guys are fantastic and i've got to tell you, recently i've been really looking at my stocks, my portfolio and i've earned, and i've learned from you guys especially you and your book you guys are great i wish you would come down to boynton beach, florida, and have a book signing i would go to it again >> my friend is down there how can i help >> well, i'm looking at lowe's, low, and i know that they changed to marvin ellis and he used to be with home depot in fact, he was with jc penny for a bit and i think he's doing
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a good job >> i disagree with you i think he's doing a great job and that's why buying low's ahead of what's christmas for lowe's and going door to door to fix the customer experience. boy, did they ever need to do updating i am with you, ed in florida, thank you for saying those things about our group >> i'll go local i'm going to go to jim in new york jim? >> first, i just want to thank you for bringing us "mad money" and camer qaa. we love it. >> i was down this weekend now i'm back up. >> hey, jim in this new electric age and electric vehicles, move over tesla account, no more, no less than nine new ev entries coming into the u.s. from big game auto companies and overseas in 2019 and gm just announced a new ev production facility in
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the u.s. >> right and then the other product needs for batteries and everything from rechargeable household goods and mobile phones to mega battery storage and redoable sources. >> right >> all of this requires a significant upswing and battery production which equates to a lot more lithium, right? >> right so mean is alb with a 13 pe -- >> okay. here is the problem. a company in chile the problem is anything connected with autos is the house of pain. >> i don't want you involved everything connected with autos is disappointing and that's no good let's stay away from that even though your work is good in theory, in conception, but the reality is these companies can't make the numbers today was apple's day and wall street just wasn't happy the hell with them they're wrong! "mad money" tonight, thermo fisher announced it was getting
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gene therapy with the acquisition. what does it mean for the overall market i have the ceo and nike dribbled past the quarter, but it took a hit. can it pick itself and keep running? pegasystems run leaner and meaner, can it put your portfolio into shape it's been a good one i'm sitting down with the ceo so i'm urging you to stay with apple and stay with cramer ♪ ♪ don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
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have another one thermo fisher scientific and a company we like and the arms dealer to bioand pharma. the leading gene therapy company for $1.7 billion in cash thermofisher is a $107 billion business and that tells us a lot of where they see the industry headed in the next ten years do not take it from me let's take a look at it with the ceo, of thermo fisher skient iven scientific good to see you. have a seat. i didn't know you'd make the acquisition, but if you can put it in context because we've had so many companies in immunotherapy and i was thinking they can't, judging by this grammar, they must be dependent on bramer tremendously. >> this is a very exciting space. the pharmaceutical and biotech industry is excited about gene
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therapy and it's making a huge difference for patients and one of the big challenges is the manufacturing capacity for bringing up these medicines to the market and bramer biohas carved out a leading position as a contract developer and manufacturer of these therapies. >> what will it mean in terms of trying to win business say, from danaher, where it bought ge's life science businesses and i don't think it's as good, but are you going head to head >> from our perspective as industry leader we keep building out our capabilities and we have over $10 billion is to the pharmaceutical and biotech industry today and bramer is a business that will help us have great growth in the future and serving their needs. >> should we be thinking about brammer when new ipos come out or when glaxo buys or novartis because they're all doing it >> yeah. so the customer base will be both large cap and the emerging companies and that's one of the great things about thermo fisher
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scientific is we serve the whole range of the industry and help the young companies get started and we also help the large companies as they shift towards new modalities of medicine. >> i think it's important to point out that there are some companies that china can't do without. when i see your numbers in china i just imagine the hospitals with 500,000 people each one and that's a fabulous growth business for you and one of the key elements have been our strength in emerging markets and china the second largest market for the company and 10% of the revenue and last year grew 20% organically. expanding health care for the population, controlling pollution, improving food safety and those are things that we enable for them and it's also important to point out that you're a company of great structures and ethics and there's some business you have turned down because you feel that some people have been discriminated against. >> with our technologies they are for good purposes and they enable our customers to make the world healthier, cleaner and safer and the technologies can
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be used for other purposes and in one particular case we have a set of facts and we evaluated it and we made a decision that we would continue >> it's something none of us would like to see in our country. when you talk about $1 billion you invested in rnd, what are you getting for that >> so we have a really exciting portfolio of products that come out of that large rnd investment and one area is precision medicine and our sequences have done real le well in helping doctors identify the right therapy for an individual, specific type of cancer and that's an area that's been a focus for us >> do you think it's too small that these immunotherapies and some people tell me don't get caught up in the bubble and some of the illnesses are for 500 people and a thousand people. >> the medicines are curative and the market and the individual, rare diseases can be small and these are patients that don't have any prospects without these breakthroughs and we're enabling that and it's
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super exciting you were the best acquirer you have ever seen and all of your acquisitions pay off and even the big one and the one that puts you together and what's your secret and so many people tell me the technology acquisitions always fail and we have a disciplined process and the great team and what we understand is can we add value to a business and most things we look at we pass and the ones that we do, we are convinced that we're the right owner and our track record is strong in terms of creating value. >> when you see not just revenues added by buying the revenues and you have high single digits and i la lot of people don't have that. >> last year we grew the business 8% organically and we've accelerated their growth meaningfully and taking businesses that are below the company average and now they're growing above the company average. >> i want to ask you something philosophically that worries a lot of people, including the
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president and his people they think china is passing us i wonder whether we can be rival china given how much we're spending. >> as far as breakthrough, it's coming from the u.s. >> people want to hear that. >> it's a cluster and what you're seeing the application of these technologies in china is to bring up the standard of living in society nin china and improving population and the nih and the national institutes of health is a gem in terms of this industry. >> that's fine i know we have to go, but david faber and i, he knew you were on, and he said that guy knows how to run a business. mark caspar, president and ceo of thermo fisher it's a 100 million company, people and it deserves to trade higher mad money is back after the break. who says our bank isn't tech enough?
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♪ ♪ >> it's time to pick through the rubble of friday's sell-off. take nike which put on thursday night and tumbled 6.6% on friday and you think the sneaker had a lousy court. how could the stock fall so much if the quarter was any good, right? wrong. this is one of those cases like the movie "unforgiven" where it deserves got nothing to do with it when you go over nike's quarter as i did this weekend it is clear nike is doing pretty darn well there's an overreaction and i like these numbers why did the stock get slammed and more importantly, why do i think i'm buying it at weakness and nike ran up pretty dramatically and like everything else, this one got crushed in the fourth quarter pulling back
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to 66 in its lows and the stock came back peaking at $86 and change last week which was a 32% run which was a move with the dow tock, right? the thing is while nike's stock ran like a champion and the rally happened on no real news the stock should have never been down so much in the fourth quarter so it kept levitating and levitating and levitating as analyst after analyst, and those were good calls and the next couple of weeks we got more and more of these geniuses raising the price targets and aggressively pushing the stock and they never got behind it before the court in short, the expectations have gotten out of control because of the price target boost aside from the fact that dickens was paid by the word so it was too v verbose, is that it makes it almost impossible to deliver a good quarter
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when the analyst raises the bar people are less impressed by excellent results. that was really the schematic, the theme here so what happened when nike reported on thursday night the company had 65-cent basis in-line revenue of 7% year over year 11% on the currency basis and along with an expanding gross margin, right? what they make after the cost, is up to 45.1% from 43.8% a year ago. that's fantastic nike benefits from higher average selling prices and the krebsy is finally starting to change in their favor and the higher margin direct to consumer business it's on fire. nike's largest business is up 9% >> how about their big chinese business, something a lots of people were worried about because of the trade war it's phenomenal with the power growing at a 20% clip and if we had awe weaker dollar, ni -- exe
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me what is driving this ceo mark barringer who i am a huge fan of, spent time on the conference call talking about technology. some of that is about personalization and nike turns out many versions of the same shoe using different colors or different materials and that's bolstering sales of the classic footwear like air force one, air jordans and they bring new products to market faster and another major positive and they're tracking all their products which helps management match supply to demand worldwide. there is a secondary market for these sneakers it's doing incredibly well because there's so much individualization. it is also about digital nike connected with users and people in the app are at their stores buy 40% more stuff than people not on the app. plus the company's digital business has 36% clip. as parker explained, the more we invest in stronger, digital
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capability, the more growth opportunities we uncover nike is masquerading as a sneaker company. how about china. the footwear and apparel business is booming as more and more chinese people get involved with sports. nike is working hand in hand with the chinese ministry and that's the place you want to be, right? when you're the head of the ministry of sport. >> they're doing it to expand physical education in schools and they sponsor the chinese marathon they want a healthier population and they recognize nike can help them make that happen and that's why they can struggle off the trade war. with a lot of business in the people's republic and nike doesn't have any serious chinese competition which makes it perhaps the best american brand in the prc when it comes to not worrying about somebody switching to a chinese alternative. why did the stock give it?
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because of the guidance which was probably considered disappointing even though i don't agree with that interpretation and the narrative format than most companies and they're a little bit like mark twain, frankly not kidding. mark twain so let's try to parse what they said first of all, cfo, andrew campion, they look at high single-digit revenue growth and on the reported basis. that's weaker than the 6% number that the analysts were expecting and really, i think nike is being cautious about exchange rates. if we get a weaker dollar like i'm expecting their forecast might prove to be conservative high single digital revenue growth which is that they'll sell camp onwas looking for growth market's to expand and more than the 170 point vinspection
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any time anyone hears investment they want to sell the stock and that's why the stock got clobbered on friday. i have to tell you, i think nike is simply doing what it always does they under promised so they can over deliver the next time they report the company has an incredible long-term earnings records even though their sales occasionally disappoint every time that happened it was a buy. they worry about the strong dollar which hurts their ability overseas and this quarter would be the worst one in terms of foreign exchange and they expect things to get better going forward. i agree with them, especially if the federal reserve stopped its stupid tightening and it provided a boost to the bottom line i think this company has earned the benefit of the doubt from you, but even if you disagree, the facts are on nike's side and they're taking aims in footwear and they have underarmour and adidas. >> and they've taken it right
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back to nike and they have a digital business, who buy out a limited sneaker launch and they had trouble retaining their female conference and how the women's business has reached an inflexion point and they have tons of issues to win back the customers and mark barringer talks about the businesses as tremendous opportunity and did we mention women 30 times on the call, between personalization i think parkerhit a home run put it together and the stock is relatively inexpensive, training 27 times, hey, under armour is 33 i don't think they're as good as this company and plus, this afternoon, michael avenatti just got arrested for trying to extort $20 million out of nike it couldn't have happened to a nicer guy and the stock quickly got hit and to me said it's the bottom here is the bottom line. nike only pulled back on friday because the stock had run up
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dramatically in the quarter and the results were great i'm telling you, they were great. i'm betting the guy of viewpod which says nike is a buy tomorrow morning right here. i can speak to sean in illinois? sean >> hey, jim. a howdy boo-yah to you from chicago land >> oh, man no kidding okay, jordan howard. that's an eagle thought. what's up? >> thank you for your in-depth show that i've been watching for a few years now. >> there you go. thank you. >> hey, jim, i have added a chunk of tail lor brands symbol terd at a much higher price. >> you know that's not that good an outfit and i have nothing good to say. my grandma told me, nana mary told me if you don't have anything good to say, i'm not going to say it.
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thank you, nana mary she lived and she had jack daniels and that's how you live that long. >> sal >> boo-yah from boca raton, florida. >> i remember larry kudlow said he was laid back in boca raton >> come on down, jim >> all right >> i want to ask you, i've been ordering -- i love the clothes and i love the concept and i'm looking to purchase the stock. i agree with you i agree with you i think it's a great stock that last quarter was good the previous quarter was disappointing and i love the way they bounce back and i welcome them on the show it did sound, sal, candidly that you were speaking from the bottom of a swimming pool. nike is a buy. just do it the kaepernick was a huge home run and i didn't even mention it >> much more "mad money". >> pegasystems
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i'm taking a closer look at what sets this company apart with the ceo. then trying to gauge the health of the u.s. economy? should you rely on the labor department, commerce department? no i'll tell you why it all comes down to chicken alfredo. stay with cramer ♪ ♪ -i call it my comfortable future plan.
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♪ ♪ not every company first. sometimes the biggest winners are older companies with the flexibility to adapt to major changes in the industry. consider the rise of kyle computing. once it became obvious that the cloud was the future they had a choice, either become disruptors by embracing the cloud or do nothing and be disrupted. the smart ones jumped on the
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cloud system take pegasystems, the software play that helped create software for other businesses and these guys are involved with everything from marketing and sales to customer relations and management peggasystems, this trance higz has given them a boost the stock has rallied 255% in the s&p 500. they wrote out pegga infinity which is one reason why it created bullish confidence and that's why it is up 33%. can it keep climbing let's check if with allen trefler, and founder of pegsystems welcome back to "mad money." good to see you. how are you. >> thank you >> congratulations on the incredible results i want to talk about something different. there is an outfit called garner they have the quadrants.
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you are so far ahead of everybody else that i can see why you get google, why you get ford and anthem and why you get all of the big bank, but i don't know if our viewers understand what a differentiator that is. >> well, you know, this is a set of industry analyst expert in what technology companies do and they go through a rigorous process every one to two years and evaluate the companies and rate them, and we consistently come out first and there's two in particular i'm excited about. one, we are topping intelligent business process management which is taking work and doing work and making businesses more efficient. >> okay. and more agile. >> and the second is we are number one in real time management which is about decisions. you execute the work, do great things >> for google. they improve sight reliability and we count on google sight reliability. >> it's amazing. google controls 25% of the internet traffic which is mind
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numbing and to be selected and trusted by them to help them in that journey really says a lot about the mission critical capabilities >> before you came on i checked around the people in the industry business process management. you are so far ahead of everybody else that it begs the question how come more people don't know you >> i know you because you've been on the show, but when i look at how dominant you are, i kind of feel like how come everybody doesn't know pegasus >> i think there in lies the opportunity. for a lot of years we were very, very targeted in term was who we offered our product to and we weren't aggressive from a marketing point of view, and we didn't have close to the number of feet on the street that you need to really engage organizations deeply >> right >> we are massively changing that >> that's great because when i see your customers, you talked about in the conference call, right at the end you just threw in that you've got this deal -- deal with a major european bank that is so big, robo bank, and there is a good example and buying a robo bank is huge and
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you just got an unbelievable deal with them and many people are saying, i don't know, that's not a big. tell people how big that is. >> well, it's pretty big because it was, of course, highly contested. >> right >> and being able -- >> against firms that we probably know. >> firms that you routinely have on this show. >> right those are the friends we compete with, and compete quite successfully, i would say. >> if you want to hear. >> sure. from a lot of the customers talking hundreds of customers speaking about their stories i'd invite you to come to pegaworld. it's june 3 and 4 in las vegas and it's going to be a tremendous show. >> read some of the names. there are companies that are speaking and every one of them is a good client and one everybody knows. >> vodafone, sirius xm which selected us last year, ing, the major dutch bank and we're helping them streamline a lot of the key processes. firms like paypal, national
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australia bank which is undergoing a transformation, cisco. we are honored that these companies are coming and sharing their stories about lou they're transitioning their businesses. >> you are moving into crn and that's right up against sales force and it's a very powerful opponent how do you go up against a sales force in windows >> a couple of dint things one, we compliment sales force in many settings because if you think about it, sales force very much presents a facade, a front end that can present information. you've got to hook that in to the sort of execution of work. how do you really go and fulfill that request for the customers and the major sales force customer like unilever selected us new last year >> i never know about what he's doing with sales force he brought in pegasystems, too >> because we do a good job of complimenting them and getting work done. some customers choose to use us
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all of the way through end to end and we can operate in either fashion. >> one last question is it a hindrance that you're not out west >> i believe that we have to break this mythology and silicon valley is where inspiration comes from i actually think it's terrific we have so many awesome universities in the boston area being adjacent to m.i.t., we have a talent pool they think is both, frankly, richer, but also a lot more stable than what goes on with some of these. >> that's my feeling i need you to speak up against the mythology. that's terrific. that's allen trefler, founder and ceo of pegasystems "mad money" is back after the break. at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't.
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independent and that's how good their technology is. now we're going to larry in california larry! >> boo-yah, jim! how's it going >> it's going just fine. thank you for asking how about you? >> terrific. beautiful day in l.a >> i had no idea thank you. >> okay. hey, listen. i wanted to ask you, jim a few weeks ago i read an interesting story about nielsen holdings in barron's. >> to me it wasn't that positive i'm kind of concerned and they got a 5% yield, but their business is very, very, let's just say tentative, so i'm not going to be attracted by that yield. >> let's go to ricardo in new york ricardo. >> hey, jim. this is ricardo, long island new york how are you? >> i'm doing well. how are you? >> good, good. all right. i have the ticker symbol o >> they're on fire they're a good read, and they've
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bee been able to handle this period well and the interest that you get for treasurys. >> i want to go to dean aaron in new jersey >> jimmy, big boo-yah from jersey city, baby. >> right back at you >> jimmy, my stock is bristol-myers. why is it stuck in the mud >> because bristol my sers trying to buy celgene and we are big believers, and we think the plan is a good one and i keep putting out these things about the miracle drugs that celgene has. i'm with giovanni. how about billy? >> jim cramer. how are you doing? >> not bad thank you for asking how about you? >> i have to start by saying thanks for all your wisdom i'm calling you right now from the miami open i just got done watching roger federer play you're the roger federer
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and i watched them slide the last time. >> i know. we all were watching the semis. >> i missed out on that, but i watched xlnx, and i know you like micron. >> right >> no, i like xilinx much more than micron because it's the best buy there is, and buy xilinx off of 5g let's go to david in pennsylvania, please david? >> hey, cramer how are you? >> doing well. how about you? >> good. i call you crazy smart cramer because you're so wise >> i'll take that. no problem with that >> listen. i want to know about wgi offshore no, you don't want to know about it. >> the house of pain >> i am not going to let you go to the oil patch i don't care it's advancing. it's too dangerous and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade looked at chart patterns.
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i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. 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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talking about the macro, the big picture stuff. generalizing by the individual stocks because it's easier to do your homework and the macro gives you the great sound bites you can pontificate about tax cuts and the inverted yield curve and you get two heads going at it and one guy's pro and one guy's anti oh too often the macro will mislead you. sometimes the big picture stuff
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is irrelevant and sometimes it comes down to a better bowl of pasta. rather than focusing on the aggregate data points i prefer to the largest companies and listen to what they have to say. if they say business is good, okay, great. if they say it's something else then it's something else take darden, the parent company of olive garden, and a bunch of other chains that require the great quarter last week. i was surprised when i read the transcript because darden cited their new chicken alfredo dish with 50% more chicken. not the tax cut, as the key driver behind the stellar 3% same-store sellers. >> i like darden not because i'm a huge fan of olive garden and i like to go with my vegetarian darter and there is a lot of things she can eat they have a terrific grasp of what's going on in the restaurant industry. darden is all about innovative dishes like the chicken alfredo i mentioned and as for tax policy, i'm not worried about year over year changes based on whether there was more tax money
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with the consumer when they're feeli feeling strong, end quote. if you're looking at everything through the lens of washington which is what people do, you'll miss what's happening and the industry, and look at all of the chicken they put in the alfredo. can you feel how heavy this is probably not, right? okay i don't know yeah, anyway, things could get even better. he tells us that, quote, wages are growing across all different parts of the population, end quote and they produce return, and won't that translate into higher labor costs for darden. no, darden, much like chipotle saw labor and the percentage go down year over year. how is that possible these companies keep finding ways to reduce their demand for labor. and there's digitization and lower turnover when you bring in new workers, you need to try to train them and it costs a lot of money. if you can retain the best people you end up generating
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more profits and that's worse than the secret to costco's success and now they're playing from the same playbook why does this matter every time i see the futures get knocked down by european weakness or chinese things i have to remind myself that america has a robust economy that's nowhere near going from recession. you would hear about it from the likes of chipotle and not to mention walmart, costco and darden to say nothing of the sort >> you have the confidence to buy the stocks into weakness when the whole market sells off like we saw on friday. darden and chipotle are doing great. any time they dip it's a buying opportunity. their management teams are creating value that won't be obliterated by endless political intrigue and they freak you out about how the sky is falling because of the inverted yield curve just remember olive garden's never-ending bowl of pasta and remember, never forget to wear your cargo pants so you can stuff them with these fabulous rolls on the way out. stick with cramer.
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>> narrator: in this episode of "american greed"... a mother and son from ukraine live like american royalty off a $50 million fraud perpetrated on u.s. taxpayers... >> they had million-dollar homes in staten island. they drove $100,000-plus cars. >> narrator: but when hidden cameras catch them paying kickbacks to medicare patients, they learn they can't keep their secret forever. and when the department of justice puts the squeeze on mommy dearest, only one question remains... >> it came down to, was a mother going to let her son take the fall for her? >> narrator: and later... >> "are you interested in the movies? do you like to make money?" >> narrator:
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